Not cheap! It’s economical…

Bajaj Auto’s over reliance on brand ‘Pulsar’ and increasing focus on the 125cc-plus motorcycle market garnered it a heavy loss in not only its market share in the two-wheeler segment, but also in its bottomlines. However, Bajaj Auto is revisiting its strategies and is now all set to make a comeback into the 100cc segment with its Discover DTS-Si, which will hit the showrooms from July 27 onwards. Interestingly, Bajaj Auto’s plan to reign in more market share in the 100cc segment is a bit different from the strategy formulated by the company in the first place. But will the discovery of Bajaj Discover be able to create the desired position in the executive segment for Bajaj Auto?

There is no denying that Bajaj Auto’s strategy riding on the superior technology and advanced designing fronts has been very successful to tap the consumer in the premium segment. The company is banking on the same pillars to replicate its success in the executive segment. If the words of Rajiv Bajaj, Managing Director, Bajaj Auto are to be believed, “In terms of sales and profits, this fiscal will be the best ever for Bajaj Auto.” Introduced as a 125cc model and presently selling in a 135cc version, Discover has been operating in the Indian market for over five years now and is well poised to take on Hero Honda’s executive model – Splendor and Passion by which the company plans to take the sales figure to around the 2,00,000-units mark. And if Bajaj is able to create a new category in the executive segment, the company may garner a healthy share of the entry level segment.

Pawan Chabra

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Source : IIPM Editorial, 2010

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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How the hand Rocked the Lotus, Elephant, Bicycle, Lantern...

The revamp of the 124-year-old party and brand continues. Says Santosh Desai, CEO of Future Brands, “Congress as a party has understood that Indian elections are the largest marketing exercise in the world and that inclusive growth can be the best USP of the Congress brand.” But, inclusive growth does not mean literally going back to the villages embracing the old dogmas of socialism. The appointment of Nandan Nilekani as the head of the Unique Identification Authority with the rank of a Cabinet Minister sends out another powerful message about the new brand Congress – talent is welcome, even if it is from the private sector. If and when Nandan Nilekani succeeds in his mission, the Congress would have used a private sector entrepreneur to execute one of the most critical ‘public’ tasks. Tamper proof I cards can ensure the poor actually get the benefits from social welfare schemes. And if money meant for the poor actually manages to reach the poor, brand Congress would have nurtured a massive base of loyal consumers (Voters). There are twin benefits of this ‘private-public strategy, according to Congress insiders. Having Nandan Nilekani lead this mammoth task will be a big hit with the Gen Next that idolises successful and ‘ethical’ entrepreneurs like Nilekani and looks up to them as role models. Then again, Nilekani’s success means more than 400 million rural consumers will have a solid reason to choose Congress over other brands.

This unabashed and unapologetic ‘coupling’ of Brand Congress with the aam aadmi can be seen even in the Budget presented by Finance Minister Pranab Mukherjee. He has simply junked the old – and insidious – habit of finance ministers of doling out largesse to corporate titans and Dalal Street while paying lip service to the poor. This Pranab budget is all about rural India, about farmers and about poor Indians everywhere. And more importantly, the Budget has not taken any step to take the Indian economy back to the bad old days of crony ‘socialism’. This aam aadmi socialism yes; but of a kind where entrepreneurs and wealth creators will have a key role to play. Senior Congressmen understand the potential power of this strategy. Says Congress spokesperson Manish Tiwari, “ The Budget is a judicious mix of short term stimulus, medium term fiscal prudence and long term institutional reform.” When asked about how the market is perceiving the Budget as a marketing exercise, the politician Tiwari is quick to retort, “I don’t think the Budget can be really seen as an image building exercise or a kind of a political platform. A Budget can be evaluated in the context of circumstances.” Tiwari may be coy, but the marketing and advertising world knows that the budget is actually a huge boost for the new brand identity of Congress.

And lest you think that brand Congress is now all about doling out sops to the poor without a future vision, please re-examine what the Minister for Human resources Kapil Sibal has been saying for a while. Sibal has loudly and persistently made it clear that the private sector must play a key role in revamping India’s messy education system. Sibal and his team understand clearly that India can never reap the demographic dividend with the current education system where rent seeking and corruption is rife and rampant. Sibal is laying down a vision where the young – both rich and poor – will have more choices when it comes to education and careers. Once implemented, this strategy will create one whole generation of loyal consumers who have not yet reached the legal age of voting!

And of course, no matter what you and I say or the aam aadmi says, Brand Congress will also be closely identified and linked with Brand Gandhi. Like it or not, it is Sonia Gandhi who first gave a new lease of life to the dying Congress in 2004. In 2009, the CEO to be Rahul Gandhi is getting ready to take over from his mother, with sister Priyanka always around as a strategic advisor. Says Ad guru Prahlad Kakkar, “While Sonia resonates to dignity and simplicity, Rahul implies to modernity.”

That, as rivals of Brand Congress have realised painfully, is an unbeatable identity for a brand to have!

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2009

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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From Black Monday to Golden Monday

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The life and times of UPA : Five years on, every piece is falling in place for India even in torrid times for the global economy... And the world is watching!

The message from the election results 2009 is loud and clear: Indians have emerged and India’s thinking has improved. Evolving is a continuous process in any country’s life and we have displayed it thoroughly this time.

Exactly five years back, on May 17, 2004, when UPA came to power, the capital market welcomed it with a ‘thumbs down’, sending the market to the ‘lower circuit’ of -10%, (infamously known as ‘Black Monday’). Make no mistakes; it was justified then, because of the fear of ‘unknown’. The market wasn’t able to digest how the new government would handle the ‘emerging’ Indian ‘growth story’. Until then, the capital market participants were on a high about Indian prospects, with a flurry of reports from global research houses suggesting the rise of India as a super-power. The market had feared whether the then government would prove to be a spoil-sport.

However, God is living somewhere in New Delhi since then. Almost everything went right in Indian economy in terms of GDP growth, industrial production, rainfall, exports, Balance of Payments, demographics, FII & FDI inflows. Indians are extremely lucky to be served by some of the finest brains in the form of ministers and regulators at RBI and SEBI. An enviable team with abundant knowledge and qualifications, comprising of Manmohan Singh, P. Chidambaram, Y. V. Reddy, Montek Singh Ahluwalia and C. Rangarajan has given proper direction to the unleashing strength of Indian economy. This has helped India survive the impact of an unprecedented global crisis with least possible injuries. All of them truly deserved to be called as the ‘leaders’ rather than ‘regulators’. What is most striking is that these ‘leaders’ are not just intellectuals but balanced and matured individuals. And, the ever-maturing Indian voters have taken notice of their efforts and blessed them with thumping success in the current elections. After five years, on May 18, 2009, the capital market has welcomed them with a big ‘thumbs up’, sending market to ‘upper circuit’ of +20%, (famously titled ‘Golden Monday’). That’s right, this is the best election result India has had in the last 30 years and this is the best ever capital market performance. So, the ever-related Delhi politics and Mumbai capital markets have seen full circle from ‘Black Monday’ to ‘Golden Monday’.

Way to go...

In the previous UPA government, the Congress had a tough time convincing the Left to implement any developmental projects. Of course, in a way this helped Congress to take shelter for any of their under performance. However, this time they are extremely well placed with a clear mandate, improving global economy, best of demographics and quality leaders. This obviously raises expectations on their performance delivery. The world is looking at India, and the investors are looking at Indian government.

One thing is for sure: the level of confidence in the tone of market participants has increased substantially. Unless there are any global shocks, India should be flooded with fresh investment, increasing job opportunities and rising capital markets. Revival in PSU IPOs and disinvestment will help the government reduce its fiscal deficit and IPO markets, in general, will be revived sooner than later. Further, the government can relax FDI guidelines to some extent encouraging more foreign inflows in industries such as retail, mining, telecom and insurance.

As the government is free from the ‘Left’ load, it can think of ‘right’ things. If all goes as planned (of course, not possible as per Murphy’s Law), during the tenure of this 15th Lok Sabha, India will truly emerge as an economic superpower. And also, Indians will enjoy their best times ever in their standard and quality of living. These future generations will live in much better living conditions than their erstwhile generations have ever done.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2009

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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ANISHA MOTWANI, EVP, MKTG, MNYL

IIPM Best B-school

1. Cadbury’s ‘Kya swaad hai zindagi ka’ campaign
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4. ‘Yeh Fevicol ka mazboot jod hai, tootega nahin’ commercial
5. Closeup’s ‘Kya aap Closeup karte hain’ campaign

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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