Automakers Start to Bend it Like Bajaj

Imagine Coke or Pepsi selling fizzy brown sugar water without their legendary marques on their respective bottles and cans.That may sound absurd in the market for beverages but less bizarre in the world of automobiles where car and bike makers are happy to drop umbrella brands to let model-specific names do the talking.In the West Korean car major Hyundai chose this strategy for virtually its entire range,right from the top of the line Genesis to the Equus,the Sonata,Elantra and the Accent.Back home,a number of Indian auto makers seem to be taking a closer look at the move towards strategic anonymity in a bid to erase perceptions from poor quality in the past to fuddyduddy designs.For some,the dropping of the company name is also an attempt to carve out a separate identity and de-risk both the fortunes of the new launches as well as that of the mother ship.Earlier in the year,Bajaj Auto did what those who swore by its scooters in the 70s and 80s would think to be blasphemy it dropped the Bajaj name from its motorcycle range comprising the Pulsar,Discover and Boxer.Marketing consultants point out that the Rajiv Bajaj-managed company felt the Bajaj name doubtless inspires trust;but it also still evokes images of the ubiquitous Chetak scooter-which are in sharp contrast to the attributes of the current range of largely sporty and power-packed mobikes.Also,the Bajaj group has a presence in sectors from sugar to financial services to domestic appliances.The Bajaj group has lost its coherent identity over time.The iconicity of the umbrella brand has been diffused by the varied use of the brand by family members.Rajiv Bajaj realises this and intends to focus on the product brand portfolio,which is more sustainable as the umbrella brand has lost its vitality, says Unni Krishnan,managing director,Brand Finance,a brand valuation consultancy.Meantime car maker Tata Motors has reduced the visibility of the name of its flagship compact,the Indica,as it goes about marketing a more contemporary and fuel efficient variant.What began as Indica Vista is now simply known as Vista in the companys communication material.Similarly in utility vehicles (UVs),Tata Motors has taken out the Sumo prefix for a new sporty variant,which is now known as the Grande MKII.And the Sumo Grande became Tata Grande DICOR last month.People close to the development say that Tata Motors wanted the DICOR badge to come into the picture as they are hoping that the Safari DICOR image will rub off on the Grande.By dropping the name Sumo which over the past decade became almost generic for utilitarian inter-city transport -- Tata Motors is hoping to make the shift up from staid UVs to trendy SUVs.The Indica and Sumo have become commoditised as brands,being largely associated with commercial usage.These brands have lost their positioning value.On the other hand,the Tata brand has considerable governance processes in place and its amplification of unity is far higher, adds Krishnan.For Indias largest two-wheeler maker Hero MotoCorp,a split with Honda means it cant rely on the Japanese blockbuster brand to woo customers.So what does it do Simple,rather than playing up umbrella name Hero,it hopes to sell more bikes by riding on bestselling brands like Splendor and Passion.Detroit major General Motors does not have the company name on any of its India models.Instead it relies on the Chevrolet brand which it acquired in 1918.So all GM cars in India-Beat,Aveo,Cruze,Optra are prefixed with Chevrolet.This is an international trend.Manufacturers are best known for best selling models in certain segments;and when they seek to address a different customer base,they dont want to carry baggage and instead want to create a new identity with a different brand and network, says Jagdish Khattar,a former head of Maruti Suzuki and now managing director of services & repair company Carnation Auto.Globally,the likes of Toyota and Nissan,which have highend brands such as the Lexus and the Infiniti (which compete with the likes of BMW and Mercedes ),do not use the umbrella brand.Interestingly,Hyundai in India persists with the company name perhaps because it began well in the country,and is today No 2 in car sales.Our parentage is very reassuring and builds a connect with the customer, said Arvind Saxena,director,sales and marketing,Hyundai Motor India.

Whats in a Name

For some automakers,dropping of the company name is an attempt to carve out a separate identity and de-risk both the fortunes of the new launches as well as that of the mother ship TATA MOTORS has reduced the visibility of the name of its fl agship compact,the Indica,as it goes about marketing a more contemporary and fuel efficient variant what began as Indica Vista is now simply known as Vista. Similarly in utility vehicles (UVs),Tata Motors has taken out the Sumo prefix for a new sporty variant,which is now known as the Grande MK-II. The Sumo Grande became Tata Grande DICOR last month .

BAJAJ Has dropped its name from motorcycle range comprising the Pulsar,Discover and Boxer

HYUNDAI Has chosen this strategy for virtually its entire range in the overseas market,right from the top of the line Genesis to the Equus,the Sonata,Elantra and the Accent

Interestingly,in India it persists with the company name HERO MOTOCORP Split with Honda means that the Munjals-promoted company cant rely on the Japanese blockbuster brand to woo customers So it hopes to sell more bikes by riding on bestselling brands like Splendor and Passion

GENERAL MOTORS

Detroit major does not have the company name on any of its India models Instead it relies on the Chevrolet brand which it acquired in 1918. So all GM cars in India Beat,Aveo,Cruze,Optra are prefi xed with Chevrolet.