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Parent and Sub-brands

Aggressively strengthening individual sub-brands in its two wheeler


category seems to be a priority for parent brand Bajaj Auto, the flagship
company of the Bajaj Group.
While the brand name 'Bajaj' will be dropped across all the two wheelers,
there will be no brand investments in the form of development work and
communication for Platina, which yields a turnover of less than 20 per cent.
Pulsar and Discover will be the focus of this positioning venture.
The word 'Bajaj' has ceased being visible in the Pulsar logo for almost six
months and Discover will follow suit shortly.

Though this appears to be a new development for the company, this


change in branding had begun last year itself. Milind Bade, head,
marketing, Bajaj Auto, clarifies, "For the past one year, we have been
advertising only Pulsar and Discover and have not been using the phrase
'Bajaj Auto' to market either. This effort is being noticed and recognised
now. Manufacturers are waking up to this now; customers have always
been clued into this because they're the end users. Let's just say the
strategy is working now."
Highly differentiated target groups (TG) for Pulsar and Discover is the
prime reason behind the effort to divorce these sub-brands from the
parent brand, Bajaj Auto. Efforts are aimed at making these two individual
brands stronger than the parent brand and to position them as brands in
their own right.
Bade reveals that Bajaj Auto is following a two-brand strategy and says that
Pulsar and Discover lie on two extreme ends of the consumer spectrum.
The TG for Discover is 'the commuter' as it stands for balance,

responsibility and all things homely. Conversely, Pulsar, 'the performer',


symbolises arrogance, irreverence and attitude and hence lies in the sports
category. The styling, imagery and tonality of the brand are stressed on in
the case of the latter.
The mind space and level of engagement are very conventional for
Discover as opposed to those of Pulsar. Even the media choices differ
markedly for the two - Discover uses conventional advertising and Pulsar
uses newer techniques such as Advertiser Funded Programming (AFP)
and digital advertising.
Given all these differences, the company deemed it fit to position the two
vehicles as separate brands.
"A brand has to have two things - a TG and a promise. When the subbrands are so distinct in their promise and have such distinct TGs, the
individual strength and positioning of the sub-brands have to be focused
on, independent of the larger umbrella under which they fall. We're going
the FMCG way by doing this," adds Bade.
Pulsar has a market share of more than 50 per cent and is the current
market leader, while Discover has a 20 per cent market share and operates
at a 6 per cent price premium to the current market leader, Hero Honda
Splendor.
Bajaj Auto claims that Discover had an output of 24,000 bikes in the first
quarter of 2009 and the number moved up to 1,15,000 during the same
period in 2010. It has consequently moved from the No. 9 position to the
No. 2 position in its class.
"The reason why consumers buy a Pulsar is because it is a Pulsar, not
because it belongs to Bajaj. If you run a Google search for 'Pulsar' and for
'Bajaj Pulsar', the former actually gets more hits," asserts Bade.
In the future, new two wheelers manufactured by Bajaj Auto will be

marketed sans the 'Bajaj' brand name and may fall under the Pulsar or
Discover brand.
Other two wheeler brands, including those of Hero Honda and Yamaha, still
operate under the umbrella of the parent company.