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Don't carry flagship name throughout product portfolio: Trout to Bajaj

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  • Don't carry flagship name throughout product portfolio: Trout to Bajaj

    NEW DELHI: Global marketing strategist Jack Trout, who is working with the Bajaj Group on its motorcycle re-branding, on Wednesday had a few lessons for the Indian businesses.

    Trout, credited with marketing classics such as 'The Battle for your Mind' and 'Marketing Warfare', said there are several Indian groups whose names are identified with product brands - the Bajaj with two-wheeler.

    Such groups, while diversifying, need not carry the flagship brand to all the new areas, be it finance, insurance or electricals.

    The family businesses, in particular, should have a holding company having different sub-brands under it so that each brand of the company is differentiated.

    Giving a global corollary, Trout said Apple is the holding company and it has sub-brands like iPad, iphone and Mac.

    He endorsed the Tatas' decision not to add the group name to its Jaguar and Land Rover, which it acquired in the UK.

    "Any company, which has successful multi-brand operations and has a number of brands, needs to have a separation," he said at an interactive session organised by the CII.

    Trout, with over 40 years of experience in advertising and marketing, said the key lies in differentiation, as he has highlighted in his another best-sellers, 'Differentiate or Die'.

    "You have to have a brand in a certain segment, with segregation in terms of price, brand and product attributes," he said.

    But then, marketing alone is not enough. The product must also have substance."If the brand product is not good, brand marketing can't do anything," he emphasised.

    Source: Don't carry flagship name throughout product portfolio: Trout - The Economic Times

  • #2
    News approved.
    (Been There Done That) x 3.25

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    • #3
      Lol;
      Bajaj might've planned a new strategy
      Kawasaki-Bajaj Ninja 250R
      KTM-Bajaj

      & hence the advice from Trout
      Skill is what keeps you on a Motorcycle
      Awareness + Skill is what keeps you out of harm's way
      ATGATT + Awareness + Skill means you might Live To Ride another day

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      • #4
        its a very risky assumption and banding exercise. People know brand Bajaj since 2 decades and i dont think the company has ever misunderstood the way it should face its target market and audience. Insurance, automobile and electronics sectors are completely governed independently and are efficiently catering their businesses accordingly, to my knowledge. If next, the company comes up "bajaj telecommunication services" I am sure people will be able to successfully distinguish it with other family companies and competition.

        Running successfully various sister companies without interfering or manipulating each other individual reputation is what matter i think, which Bajaj is doing very well. Virgin has 20+ companies worldwide under one holding company name and each one has it own status and personality to offer.
        www.motorcykle.in - The lighter side of motorcycling

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        • #5
          Originally posted by pulsater View Post
          its a very risky assumption and banding exercise. People know brand Bajaj since 2 decades and i dont think the company has ever misunderstood the way it should face its target market and audience. Insurance, automobile and electronics sectors are completely governed independently and are efficiently catering their businesses accordingly, to my knowledge. If next, the company comes up "bajaj telecommunication services" I am sure people will be able to successfully distinguish it with other family companies and competition.

          Running successfully various sister companies without interfering or manipulating each other individual reputation is what matter i think, which Bajaj is doing very well. Virgin has 20+ companies worldwide under one holding company name and each one has it own status and personality to offer.
          +1 to that,

          not all theories will work for india , here ppl trust the parent brand ... if Nano would have come from other comp than TATA .. then it might not have achieved the success it has now.
          Nothing is Impossible ...

          FaceBook || My Blog - Adventure Land || Group Riding Rules

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          • #6
            Originally posted by nagoo View Post
            +1 to that,

            not all theories will work for india , here ppl trust the parent brand ... if Nano would have come from other comp than TATA .. then it might not have achieved the success it has now.
            yaa...especially if it was fiat NANo...people wouldn't have bought it even if they offered it at 75k...lolz
            _____________________________________________
            want something new in my stable,.,.,d pulsar doesn't feed to my need for speed,.,.,.,
            SOMETHING FAIRED
            yamaha r15 (2010) - not riding it now
            pulsar 150 (2006)
            yamaha rx100 (1993)<<still kicks a#$>>

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            • #7
              @ Pulsater: I can't relate what you're saying with the topic. You're referring to the different names for the company's representative in each industry, like one for automobiles, one for insurance, etc.

              Maybe, the topic is about flagship name carried over to junior products. Like Pulsar 220 is present in the same showroom as "Pulsar" 135 ... That's the problem. Pulsar 220's brand value is depreciated by associating the brand with junior & cheaper models.

              Imagine a Karizma 135 R? Makes you laugh, doesn't it?

              I broadly agree with Trout. Although, companies acting otherwise have been successful too. Like Yamaha with R15, although R6, R1 and R15 are in different markets.
              Last edited by Samarth 619; 09-18-2010, 04:57 AM.
              ---
              Brotherhood, Rules, Freedom. Xbhp.
              Indian riding = Alertness, Anticipation and Adjustment.

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              • #8
                Originally posted by Samarth 619 View Post
                @ Pulsater: I can't relate what you're saying with the topic. You're referring to the different names for the company's representative in each industry, like one for automobiles, one for insurance, etc.

                Maybe, the topic is about flagship name carried over to junior products. Like Pulsar 220 is present in the same showroom as "Pulsar" 135 ... That's the problem. Pulsar 220's brand value is depreciated by associating the brand with junior & cheaper models.

                Imagine a Karizma 135 R? Makes you laugh, doesn't it?

                I broadly agree with Trout. Although, companies acting otherwise have been successful too. Like Yamaha with R15, although R6, R1 and R15 are in different markets.
                your post made me actually read the thread once more and have to say I got it a bit wrong. The gentleman is surely taking about sharing the same product image/name with other sub-product in the series and not about the company as a whole but again I do not completely agree with him. There is never a set guru mantra in which the marketing and sales for any brand/services should be done. Brands are not made in one day and neither they can possibly survive for ever, but they can be build upon and manipulated to remain memorable enough for as long as they can.

                In Indian content things can be a bit complicated and deep in terms of brand understanding and its communication with the consumers. Vaseline has more than 100 imitations all over India (specially down south, source: discovery channel) produced by different small/unregistered companies, to cash a genuine and well known brand name. This alone clearly shows an example of "brand recognition" of the product.

                In Motorcycle industry, Duke, R series, Ninja might carry different suffix/name and product associated with them but that helps a new product to easily get acquaintance with the new audience, because they carry over the success and trust of its previous or co-existing product line. Bajaj is doing exactly the same, thats why CBZ extreme was such a big led down to us because we all knew the first CBZ was one of the most well known and premium motorcycle from HH ever.

                Branding can actually control how people look towards a product and make an image about it, be it good or bad. For the matter, you, me and xbhp is a brand in itself as well. everything done/said creates opinion and judgments.
                www.motorcykle.in - The lighter side of motorcycling

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                • #9
                  Re: Don't carry flagship name throughout product portfolio: Trout to Bajaj

                  Originally posted by The Monk
                  I will be completely honest with you*. The suggested threads have been switched off for every other xBhpian. We have turned it on, for you only! So that you can enjoy it!

                  *Okay so maybe not completely honest!
                  I read those too ... the things I missed and kind of like a drama unfolding.... though I don't reply to them :-P


                  I didn't see the *text at the bottom and was about to ask you as to ... are those the same things as similar threads as I get them too. Please keep them on for me too.
                  When I'm on the road, I'm indestructible. No one can stop me... but they try.

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