Mahindra 2 Wheelers(Business Unit) has 3 products in its stable.Flyte being the third apart from the above two.

Mahindra had actually acquired Kinetic in 2008.Flyte was originally a Kinetic product which has been retained.I liked the Rodeo ad very much.The rodeo has been positioned as a power scooter.It is shown as an alternative to a motorcycle which is assumed to be powerful.

A few years back scooters were the obvious choice in India but the things changed when Bikes became the favorites Honda Activa and few other scooterettes could only survive.Honda is the clear market leader right now with about 60% market share and there is no clear number 2 in the scooter market which is set to grow in coming years(scooter market in India is expected to grow more than 25% in the next 3-5 years).With Mahindra coming into the picture the things might become interesting.

To further check the 3 product offerings,i visited the Mahindra 2 wheelers website.After browsing through all the three products i was confused.

Just have a look at the picture below which i created from their website(click to enlarge in a new window).

There is no major difference in any of the offerings as far as engine,CC,Horse Power or torque is concerned.The price range is also the same. In fact Duro and Flyte are very very nearly priced.All 3 are gearless.

Now after browsing a bit more for the products i found that there are some minor differences in the  features.

So the Main difference is the Positioning.

Rodeo is positioned as the Power Scooter.Duro is positioned as all season,all in one scooter with a tagline,”Chale apne dum(power) par”.Whereas Mahindra has no ad for Flyte as such but Kinetic positioned it as a good powerful scooter for females.Bipasha Basu was the brand ambassador for it.So Flyte is a scooter for females.See the Rodeo Commercial here or in the  TV Ads Showcase.

So the technical specifications are more or less same and the shapes and features are also quite similar,so what was the need for three different brands? Rodeo or Flyte alone could have done it ?

Can just Positioning your products differently (without actual product differences ) enough to take on the market ?

Now when we think about the above two questions one more brand comes to my mind i.e. Maruti.Maruti also have done something similar over the years.Swift,Estilo,Wagon R,Ritz all are more or less similar.Alto and 800 were a bit different in power and price.

This is called Line Filling in marketing terms.When a firm lengthen its product line by adding more items within the present range,it is known as Line Filling.
Why a company go for line filling ? Won’t it cause brand cannibalization ?
The reasons companies go for line filling are Incremental Profits,Satisfy Dealers who complain about lost sales because of missing items in the line,Utilize existing capacity,try to become a full-line company or try to plug holes to keep the competitors away.

Does Mahindra really need to do this ? Or what else can be the reason for 3 similar products in the same price range ?

Can Positioning alone help without actual product differences ?

What Say ?

© 2009 – 2010, TMSBee. All rights reserved.

Royal Enfield started as a British Brand of motorcycles in 1890.In 1955 Enfield of India started assembling Bullet motorcycles under licence from UK components, and by 1962 were manufacturing complete bikes. The original company dissolved in 1971, but Enfield of India, based in Chennai, continued, and bought the rights to use the Royal Enfield name in 1995. Royal Enfield production continues, and now Royal Enfield is the oldest motorcycle company in the world still in production and Bullet is the longest production run model.

India was basically a scooter market few years back.Last few years have changed the way people see and perceive bikes.India is now seeing a trend of 150 cc or above bike segments,but Bullet was always present with the ranges of 250 cc,350 cc and 500 cc bikes.

Many bike lovers across India saw this bike as a cult.Now when the Indian bike market has evolved and come of age,then this is the time,Bullet should re-establish itself.This is what they are exactly doing these days.

They recently are coming in news for all good reasons.

Royal Enfield said it will invest over Rs65 crore in the next three years to double production capacity to one lakh units.

The Chennai-based company, which has been expanding its export markets, also said it expects overseas sales to more than double over the next five years.

Also yesterday I saw an ad in Brand Equity

Its a kind of Ad that can start conversations.A fresh approach to establish the brand as Cult.The tagline is great ‘Leave Home’(on a bullet).

I also visited the website and found that Royal enfield are bringing the Classic Version of Bullet back.The classic version is based on the famous original Bullet of 1950′s.

Also on the website,there are lot of communities,Blogs,Trip Stories,forums which establishes Bullet as a cult brand in its own league.

The site looks quite like Harley Davidson site.Now with Harley Davidson actually coming to India,Bullet has a hidden opportunity.The cruise bikes would gain popularity and Bullet would be an obvious choice for people who would not be able to afford a Harley.Also,There are a lot of bikes in 200- 250 cc segments that are being launched in India so people will now look upto Bullet for a Flashy Big high CC Bike.

I belong to Punjab and have seen whole of my life that What Bullet means there.Bullet is a tradition in Punjab.People flaunt it,People aspire it.Bullet is truly a Cult brand in Punjab and also other interiors of India.This is amazing how a Chennai based brand has achieved a cult status in Punjab.Bullet needs to leverage this to establish it as a big Cult brand in whole of the India.

Bullet also sponsors many trips in India in which it provides Bikes for the Trip and Branded T-Shirts too.One of my friends had an experience of such a trip.Bullet also organizes a 16 day Royal Enfield Himalayan Odyssey every year.These all exercises can take Brand to new heights,the Cult Height .

The main problem with Bullet was the price.A normal Bullet costs about 80 K.But with new bikes coming at similar price tags Bullet has nothing to lose.

I personally admire Bullet and have decided to buy one after my MBA.

There is a saying about Bullet,”Once you ride a Bullet,You don’t ride any other bike! ” I am sure its true.

What Say ?

© 2009 – 2010, TMSBee. All rights reserved.

I still remember the lyrics of this ad by heart.

Hamara Bajaj (Old)

This ad is close to everyones heart.Bajaj had a monopoly in 2 wheeler markets at this time.And Chetak was every one’s choice .But then things changed and other players started to come.

The Indian consumer preferences changed and Bikes came into the picture.Hero Honda kept on rising at a good rate.Bajaj felt the heat.The Bajaj’s also launched their own bikes with KB 100(Kawasaki) in 1986.

Then 4S champion,Boxer and Caliber followed.Meanwhile they also brought out their 4 stroke scooter Legend.

In 2001 a new ad was launched by Bajaj which not only showed their diverse product range but also had a touch of modernity telling that they are changing and adapting.

The core values were kept same,Hamara Bajaj was still there.The brand personality was made a bit modern but with all emotional and indian values intact.

Bajaj-2001

2001 was not only the year of this ad but also the the year of a new dawn, a new bajaj.2001 saw the launch of Pulsar,which changed the way ,Indians looked at bikes.CBZ was launched by Hero Honda in 1999,which showed there was an untapped market in india for performance bikes.

Pulsar was launched successfully with ‘Definitely Male’ campaign.Bajaj didnt go for Hamara Bajaj tagline for Pulsar.

Its a Boy !

Till 2007,Bajaj kept on growing in the bike segment as did the indian market as such.Scooters were a thing of past’.Chetaks,Vespas,Priyas all were out of indian roads.Only scooters like Activa survived.

Then came 2007,Bajaj repositioned itself from ‘Hamara Bajaj’ to ‘Distinctly Ahead’.

Distinctly Ahead comprised of three core values Speed, Innovation and Perfection.

The “Distinctly Ahead” vision was communicated through the all new “Hamara Bajaj” commercial. A break from the past, the communication was fast paced and aggressive and symbolized all that Bajaj Auto stood for. With one 220 Pulsar DTS-Fi’s morphing into many other Pulsar 220′s and racing against each other, the visualization and lyrics – “Alag Andaaz, Alag hai khoj, Rakhe Aage, Hamari soch” – clearly conveyed that Bajaj sets its own standards and competes only with itself.

Conceptualized by Mr. R. Balki, National Creative Director, Lowe this memorable commercial went on air on the 27 th June 2007.

Watch the end of the Ad,where the new logo and the tagline is unleashed.The ad keeps the Hamara Bajaj theme.

Till here the transition seemed smooth but now Bajaj has totally ended the Hamara Bajaj thing and are totally stuck to ‘Distinctly Ahead’ theme.
All the subsequent ads and communications are based on the D A theme.
Now personally speaking i didnt like totally foregoing the HAMARA BAJAJ theme.Change is inevitable but why we have to change so much that the old heritage is forgotten.
Same has been done by Onida and Videcon.Hamara Bajaj had a heritage of about 12 years.Suddenly it was replaced by Distinctly Ahead.

Few of my friends gave a presentation on Bajaj, They made a very interesting comment about the new logo of Bajaj.They said they asked few people about the new logo of Bajaj.Many told that the new logo looks like a Bluetooth logo or the rotated Volkswagen logo.See the image below for the resemblance.

Such things can matter in long run but never mind.

Bajaj has made India proud.Pulsar not only sells in India like hot cake but also in many other countries especially Indonesia,Malaysia etc.

Bajaj has come a long way from Chetak to Pulsar and Hamara Bajaj to Distinctly Ahead.

What Say?

© 2009 – 2010, TMSBee. All rights reserved.

FIAT has had a very strange relationship with India.We all do remember the Premier Padmini which was on roads till 2000.Even today majority of the TAXI’s in Mumbai are Padmini.

Premier Padmini is a word that sounds a little lesser known and lesser recognized.Many would think,Which Padmini,Which premier car is he talking about ? Now when i say majority of the TAXIs in Mumbai are FIATs it makes a lot more sense.

Both sentences are somewhat true.In India,a company named Premier Automobiles Limited(PAL) started making a version of FIAT cars in India.In 1951, they began producing versions of the Fiat 500 for the Indian market. This was followed by the Fiat 1100 in 1954. In 1973, the Premier name was used on their vehicles for the first time, the Premier President, based on the Fiat 1100 as Premier Padmini. In 1978, they launched the Fiat 124-based Premier 118 and 138D models.Over the years,Premier Padmini could not establish its brand and the car was always referred to as FIAT in public.Decades went by but the name and main design of the car didn’t change at all. For decades ,the car came to be known by FIAT and just FIAT.Many people knew that this infact is padmini made by an Indian company on some FIAT’s design.But in Pre-Liberalized India,this was the king.

I even found a print ad of Premier Padmini.

Things changed when FIAT actually came to India post liberalization,They entered India with FIAT UNO in 1996 with PAL as partners but things didn’t work out as  PAL delivered just 617 cars  out of 30000 ordered.Then in 1997 they again launched it with a JV with TATA Motors.

The problem with FIAT was that the image that people had of FIAT was the Premier Padmini.That image refused to go away.I remember when i was a kid even i used to think that way.

FIAT tried hard in Indian markets,but Indians had moved on with Maruti and were apprehensive about  FIAT and its image of the old FIAT 1100 (the 19 50′s Italian model which we see even today on Indian roads).

Even then UNO picked up well.The Uno was initially a success in India, but then it faded badly due to poor dealer support.

Here comes the reason where the case becomes a lot more curious.

One of my friends went to a TATA  Showroom to enquire about Punto.After some talk about FIAT cars,the salesman suggested him TATA Safari and Indigo instead.FIAT and TATA Motors have common showrooms at major  places.So this is a problem,a big one.

In India FIAT has two major problems

1) The old brand image made by Premier Padmini is still stuck in the mind of people.

2) Problem with partners at the actual touch point and service centers.

The first point is fading with cars like  Punto,Linea coming out of FIAT Stable,but what about point number 2.This reason is actually acting against FIAT and many consumers are shying away from FIAT due to it.

Now FIAT is totally dependent on TATA for Sales ,Service and Spares.This is a point where FIAT needs to more inclusive.They cant allow this to be their weak point in India.

There are 11 companies in India in passenger car segment.With Maruti having 60% of market share,things are tough for the other 10 companies.

Things are improving for FIAT as the sales are improving for them but the above two points really need to be sorted out.

What Say ?

UPDATE : The Premier in the above post has recently come in news for their new SUV.Premier RIO is the name of the SUV.

© 2009 – 2010, TMSBee. All rights reserved.