Good Morning ! (Re)Positioning Bajaj

Good Morning !

(Re)positioning Bajaj.

Sometimes you win, sometimes you … learn.

AIMA, Wednesday 13th November 2013, Delhi. © Bajaj Auto Ltd. Successful Lineage

Bajaj Super Bajaj Chetak

Bajjjaj Classic Bajjjaj Autoriksha

AIMA, Wednesday 13th November 2013, Delhi. © Bajaj Auto Ltd. 1 Line Extension

Bajaj Sunny Bajaj M80

Bajaj Legend Kawasaki Bajaj 4S

AIMA, Wednesday 13th November 2013, Delhi. © Bajaj Auto Ltd. 2 Death Sentence

Bajaj Kristal Bajaj Platina

Bajaj Pulsar Bajaj Autoricksha

AIMA, Wednesday 13th November 2013, Delhi. © Bajaj Auto Ltd. 3 Crime

Something is Wrong with Our Predictions

A recent Nielsen BASES and Ernst & Young study put the filfailure ra te of new U US.S. consumer pro duc ts at t95 95 per cent and new European consumer products at 90 per cent.

We need to do better than that. We need to have a better way to predict the future.

- Al Ries, The Origin Of Brands, 2004

th AIMA, Wednesday 13 November 2013, Delhi. © Bajaj Auto Ltd. 4 Culprit

According to a leading market research firm, about 75% of consumer ppggackaged goods and retail products fail to earn even $7.5 million during their first year.

Less than 3% of new consumer packaged goods exceed first-year sales of $50 million – considered the benchmark of a highly successful launch.

- Harvard Business Review April 2011

th AIMA, Wednesday 13 November 2013, Delhi. © Bajaj Auto Ltd. 5 Possibilities

WORLD CLASS MANUFACTURING

SIMULTANEOUS ENGINEERING

TOYOTA PRODUCTION SYSTEM

AIMA, Wednesday 13th November 2013, Delhi. © Bajaj Auto Ltd. 6 Principle

The purpose of all strategy is to be first by being different.

AIMA, Wednesday 13th November 2013, Delhi. © Bajaj Auto Ltd. 7 Result

Operating Profitability 25%

20% 15% Bajaj Auto

Mahindra and Mahindra (standalone) 10% Hero MotoCorp 5% Ashok Leyland Leyland

Maruti Udyog 0% 08 06 04 02 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3

Tata Motors (standalone) FY FY FY ‐5% FY FY 10 FY 11 FY 12 FY 13 FY 14 TVS Motors

‐10%

‐15%

AIMA, Wednesday 13th November 2013, Delhi. © Bajaj Auto Ltd. 8 The Strateggqic Square

Defensive marketing warfare is for market leaders.

Offens ive markiketing warfare is for No. 2 compan ies.

Flanking marketing warfare is for smaller companies.

Guerrilla marketing warfare is for local or regional companies.

AIMA, Wednesday 13th November 2013, Delhi. © Bajaj Auto Ltd. 9 Defense

The real thing The world’s #1 3-wheeler

AIMA, Wednesday 13th November 2013, Delhi. © Bajaj Auto Ltd. 10 Strategy Lesson # 1

Brands die for 2 reasons – too much extension & too little defense.

AIMA, Wednesday 13th November 2013, Delhi. © Bajaj Auto Ltd. 11 Offence

Anti - Cola Anti - Mileage

AIMA, Wednesday 13th November 2013, Delhi. © Bajaj Auto Ltd. 12 Strategy Lesson # 2

Familiarity breeds contempt, curiosity builds desire.

AIMA, Wednesday 13th November 2013, Delhi. © Bajaj Auto Ltd. 13 Flanking

Yeh dil maange more Much more than mileage

AIMA, Wednesday 13th November 2013, Delhi. © Bajaj Auto Ltd. 14 Strategy Lesson # 3

To simultaneously be the same & be different, that is the deepest.

AIMA, Wednesday 13th November 2013, Delhi. © Bajaj Auto Ltd. 15 Guerrilla

High energy Ready to Race

AIMA, Wednesday 13th November 2013, Delhi. © Bajaj Auto Ltd. 16 Strategy Lesson # 4

God is in the detail, profit is in the niche.

The mind is the subtle form of the body, the body is the gross form of the mind.

-Bihar School of Yoga.

The brand is the subtle form of the product, the product is the gross form of the brand.

Design

Brand

Performance Price

Attribute Category

It is the life-force that cures, for a dead man needs no more medicine.

-Dr. Samuel H. Hahnemann.

The wellness of an organisation rests in the vitality of its brand strategy.

1. A tactic is an idea, a competitive mental angle. 2. The onlyyg tactic worth considering is the tactic that puts the knife into the competition. 3. Tactics should dictate strategies. 4. Strategy should be developed from the bottom up , not from the top down. 5. A strategy is a coherent marketing direction. 6Stt6. Strategy i s wh htkat makes you uni que an dhtithd what is the best way to put that difference into the minds. 7. The pppurpose of the strate gy is to kee p the competition from adversely affecting your tactics.

- Jack Trout

Why are you smiling ?

What is your job ?

What is your action ?

- Prof. S. Yamaguchi.

I want to know more about the person that has the disease, than about the disease that a person has.

- Hippocrates.