Comparison of Branding Strategies of Bajaj Auto Ltd and Hero Honda Motors Ltd

Subject: Apparel Brand Management

Submitted to:Mr. Vikram Parekh

Submitted by:Ajay Kumar Bhavik Gandhi Gaurang Gupta Ridhima Ranga Sunil Kerketta (M/FMS/08/02) (M/FMS/08/10) (M/FMS/08/11) (M/FMS/08/14) (M/FMS/08/31)

Fashion Management Studies Department, NIFT - Mumbai

Comparison of Branding strategies

Table of ContentsCOMPANY PROFILE ....................................................................................................................................... 3 Bajaj Auto Ltd ............................................................................................................................................ 3 Hero Honda Motors Ltd ............................................................................................................................ 3 PRODUCTS/BRANDS...................................................................................................................................... 4 BRAND EQUITY .............................................................................................................................................. 5 Building Brand Equity ................................................................................................................................ 5 BRANDING STRATEGIES ................................................................................................................................ 6 The Product brand .................................................................................................................................... 6 The Line Brand Strategy ............................................................................................................................ 7 The range brand strategy .......................................................................................................................... 7 The Umbrella brand strategy .................................................................................................................... 8 The Source Brand strategy ........................................................................................................................ 8 Endorsing Brand Strategy ......................................................................................................................... 9 Mixed Brand Strategy ............................................................................................................................... 9 BRAND ROLES IN BRAND PORTFOLIO ......................................................................................................... 10 BRAND IDENTITY PRISM .............................................................................................................................. 11 New Pulsar 220 DTS-I .............................................................................................................................. 11 Karizma ZMR ........................................................................................................................................... 12 BRAND EXTENSION ..................................................................................................................................... 13 Line Extension ......................................................................................................................................... 13 Brand Extension ...................................................................................................................................... 13 COMPANION PRODUCT EXTENSION ................................................................................................... 13 COMPANY EXPERTISE.......................................................................................................................... 14 Reference .................................................................................................................................................... 15

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Comparison of Branding strategies

COMPANY PROFILEBajaj Auto LtdThe Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance. The group's flagship company, Bajaj Auto, is ranked as t h e w o r l d ' s f o u r t h l a r g e s t t w o - a n d t h r e e - w h e e l e r m a n u f a c t u r e r and the Bajaj brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia. Bajaj auto is based in Pune, Maharashtra, with plants in Akurdi and Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttaranchal. Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading Corporation Private Limited. It started off by selling imported two- and three-wheelers in India. In 1959, it obtained license from the Government of India to manufacture two- and three-wheelers and it went public in 1960. The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.

Hero Honda Motors LtdHero Honda Motors Limited, based in Delhi, India is a joint venture between the Hero Group of India and Honda of Japan. It has been referred to as the world's biggest manufacturer of 2wheeled motorized vehicles since 2001, when it produced 1.3 million motorbikes in a single year. Hero is the brand name used by the Munjal brothers for their flagship company Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda company,India. Hero Honda has three manufacturing facilities based at Dharuhera and Gurgaon in Haryana and at Haridwar in Uttarakhand. The company is founded and headed by Brijmohan Lal Munjal. Toshiaki Nakagawa (joint managing director) Pawan Munjal (Managing Director & CEO) are key person for Hero Honda Motors Ltd. The company's most popular model is the Hero Honda's Splendor, which is the world's largestselling motorcycle, selling more than one million units per year.

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Comparison of Branding strategies

PRODUCTS/BRANDSBajaj Auto Ltd Pulsar DTS-i Pulsar 220 DTS-i XCD DTS- Si 125 XCD DTS- Si 135 Platina Platina 125 DTS-Si Discover 135 DTS-Si Discover DTS-Si Avenger DTS-i Kristal DTS-i Commercial vehicles Hero Honda Motors Ltd CD-Dawn CD-Deluxe Splendor Plus Splendor NXG Super Splendor Passion Plus Passion Pro Glamour Glamour PGM F1 Achiever CBZ Xtreme Hunk Karizma Karizma ZMR Pleasure

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Comparison of Branding strategies

BRAND EQUITYAccording to The Economic Times Brand Equity Indias most trusted brands survey the ranking are: Hero Honda 33 Bajaj Auto 100

Building Brand EquityBajaj Auto Ltd Corporate Name Logo Bajaj Name very familiar for scooters Logo was changed Distinctly Ahead , (Pulsar Definitely Male) Rahul Bajaj Prominent Business leader, Rajiv Bajaj NO but using songs of new released movies for its lower income bikes Earlier Bajaj had Hamara Bajaj jingle. Kills brands and product so often. Eg. Caliber, 4S champion, Rave, Chetak, Spirit, CT 100 etc. Known for Scooters for years, became 2nd largest motorcycle manufacturer in India Modern service centres and finance schemes through bajaj finserve available across India No corporate branding Pulsar & MTV Stunt Mania Hero Honda Motors Ltd Hero Honda Introduced wide range of bikes of Honda Japan No Logo Change Dhak Dhak Go (Fill it. Shut it. Forget it) Pleasure (why should boys have all fun) Pawan Munjal YES Hritik Roshan for Karizma, Priyanka Chopra for Pleasure No specific jingle Maintains brand portfolio. CD 100 now CD dawn & CD deluxe, Splendor lasted for almost 2 decades etc. Known for its motorcycles over the years & first mover advantage Modern service centres across India No corporate branding Sponsor ship Hero Honda Series (India Australia series), ICC sponsorship, Hero Honda Saregama Zee TV, Herohonda Karizma MTV Roadies

Slogan

Spokes Person Celebrity Endorsement Jingle Product life cycle

Products

Service

Promotion

Technology

DTSi Technology

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Comparison of Branding strategies

BRANDING STRATEGIESThe New Brand Management Kapferer has following branding strategies. Most of the companies follow either of them or follow mixed branding strategies. The product brand The line brand The range brand The umbrella brand The source brand The endorsing brand

The Product brandAs such Bajaj and Hero Honda are not having product brand strategies. Generally these strategy is adopted by FMCG players. They create individual brands like P&G has brands like Ariel, Tide, Head & Shoulders, Olay etc. Bajaj Auto & Hero Honda does product branding for their premium products such as Pulsar 220 and Karizma ZMR.

Positioning Statement

Both the bikes are very sporty and targeting the youths who are into biking.

Advantage: It reduces risk as if a particular brand fails other brands remains unaffected One could easily manage and cater to various classes

Disadvantage: It becomes expensive to do branding and advertising for individual brands.

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Comparison of Branding strategies

The Line Brand StrategyThe line involves the exploitation of successful concept by extending it but by staying very close to initial products. Example LOreal offers structuring gel, lacquer, a spray etc. under brand name of StudioLine. These strategy is more often practiced by cosmetic, FMCG etc. Bajaj Auto Ltd and Hero Honda Motors Ltd. does not follow the line brand strategy. Advantages are: It reinforces the selling power of the brand and creates a strong brand image; It facilitates distribution for each line extension; It reduces launch costs