Bajaj Auto to run products on separate tracks

AWAY from the headlines over the imbroglio in the Bajaj family, Bajaj Auto (BAL) is preparing to unveil a new brand strategy, signalling the emergence of a ‘new’ company. Slated for a May launch, this new positioning will allow the auto maker to build separate brands around its different segments of products. Looking at the not too distant future, it has also factored in its commercial vehicle business in its new branding charter. This segmentation, expected to create separate identities for its mid- and high end motorcycles and commercial vehicle businesses, is on the lines perfected by international auto majors like Toyota and Volkswagen. “There is an opportunity for Bajaj Auto to create a positioning platform for itself. Look at Toyota, which is positioned in the middle of the market, Daihatsu is below it, Lexus is its top luxury brand, Hino is its commercial vehicles range. So, Toyota (Motor Corporation) has very simply positioned all of them separately, the same way that Volkswagen has done,” Rajiv Bajaj, managing director, BAL, told ET. Today, (brand) Bajaj Auto is positioned at the middle of the market and Mr Bajaj wants to build separate identities for its other products. “An 18-year old Pulsar buyer does not identify with the dirty old three-wheeler, although both are Bajaj Auto,” he said. However, he declined to comment further on the strategy, and said: “Wait till May.” Industry watchers meanwhile said that the high-end bikes could be built around the Pulsar brand and probiking showrooms. BAL will also separate its commercial vehicle dealerships, currently comprising three-wheelers. Having chosen to exit the entry-level segment of 100 cc motorcycles, BAL is now abandoning the four-stroke in favour of its patented DTSi. The objective is to build a new Bajaj Auto out of the old one. “There will be no ‘me too’ now on the technology front. We need to be unique and different. So, we are abandoning the four -stroke and moving instead to DTSi, which is our patented technology. Pulsar is our platform to push technology,” Mr Bajaj said. He was emphatic that the new positioning will cover all aspects of the organisation—product, marketing, HR and manufacturing practices. The initiative is meant to lead to the emergence of a new Bajaj Auto, where products are sold more by customer pull than push from the manufacturer-dealer. “The Pulsar, at Rs 70,000, is all pull while the push driven segment, the commuter bikes, are now commoditised. Currently, at Bajaj Auto, 55% sales are pull driven and 45% push driven. In little over a year from now, we will have 80% pull-based sales, given that we have significant product launches lined up,” said a confident Mr Bajaj.

Courtesy: EconomicTimes

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