Brand activation is looking deeper into the possibilities within the brand, its strategy and position to find assets that have relevant consequences for the whole company. A brand can be activated in a range of situations, best summarized in four cornerstones; Products and services, Employees, Identity and Communication. An active brand offers products and services that deliver on the brand position. It meets the customer in a personal manner closely related to the position. It also has the same appearance independent of interface. In other words, the customer will perceive the brand as “one coherent company” whether he or she meets it in digital or analog media, through a product, face to face or on the telephone. But brand activation is also communicating the position through advertising.

1. P R O J E C T
P R O P O S A L
Prepared
for:
Prof.
Rakesh
Premi
Prepared
by:
Ashish
Jude
Michael
(2012PGX105)
Date:
27th
March
2013
Proposal
#:
Brand
Activation
“Bajaj”

2. 2
Brand
Activation
“Bajaj”
Introduction
to
Brand
Activation
Brand
activation
is
looking
deeper
into
the
possibilities
within
the
brand,
its
strategy
and
position
to
find
assets
that
have
relevant
consequences
for
the
whole
company.
A
brand
can
be
activated
in
a
range
of
situations,
best
summarized
in
four
cornerstones;
Products
and
services,
Employees,
Identity
and
Communication.
An
active
brand
offers
products
and
services
that
deliver
on
the
brand
position.
It
meets
the
customer
in
a
personal
manner
closely
related
to
the
position.
It
also
has
the
same
appearance
independent
of
interface.
In
other
words,
the
customer
will
perceive
the
brand
as
“one
coherent
company”
whether
he
or
she
meets
it
in
digital
or
analog
media,
through
a
product,
face
to
face
or
on
the
telephone.
But
brand
activation
is
also
communicating
the
position
through
advertising.
Brand
activation
is
about
presenting
solution
to
create
a
differentiation
in
consumers
perspective
either
by
changing
its
Identity,
through
employees
or
through
the
product
or
services
they
offer.
But
all
these
changes
are
to
be
properly
communicated
to
the
Customer.
I
will
be
taking
the
example
of
Bajaj.
History
Of
Bajaj
The
Bajaj
Group
is
amongst
the
top
10
business
houses
in
India.
It
was
incorporated
on
26th
Nov
1945
as
a
2
wheeler
and
3-­‐wheeler
automobile
company.
It
was
initially
in
technical
collaboration
with
Piaggiao,
Italian
Scooter
maker.
The
agreement
lasted
till
1971.
Its
footprint
stretches
over
a
wide
range
of
industries,
spanning
automobiles
(two-­‐wheelers
and
three-­‐wheelers),
home
appliances,
lighting,
iron
and
steel,
insurance,
travel
and
finance.
The
group's
flagship
company,
Bajaj
Auto,
is
ranked
as
the
world's
fourth
largest
two-­‐
and
three-­‐
wheeler
manufacturer
and
the
Bajaj
brand
is
well-­‐known
across
several
countries
in
Latin
America,
Africa,
Middle
East,
South
and
South
East
Asia.

3.
Brand
Activation
“Bajaj”
3
Founded
in
1926,
at
the
height
of
India's
movement
for
independence
from
the
British,
the
group
has
an
illustrious
history.
The
integrity,
dedication,
resourcefulness
and
determination
to
succeed
which
are
characteristic
of
the
group
today,
are
often
traced
back
to
its
birth
during
those
days
of
relentless
devotion
to
a
common
cause.
Jamnalal
Bajaj,
founder
of
the
group,
was
a
close
confidant
and
disciple
of
Mahatma
Gandhi.
In
fact,
Gandhiji
had
adopted
him
as
his
son.
This
close
relationship
and
his
deep
involvement
in
the
independence
movement
did
not
leave
Jamnalal
Bajaj
with
much
time
to
spend
on
his
newly
launched
business
venture.
Initial
Scenario
till
Mid
1980s
(License
Raj)
Till
mid
1980’s
Bajaj
was
enjoying
its
leader
position
in
two-­‐wheeler
market.
They
were
largest
scooter
manufacturer
and
there
used
to
be
advance
booking
for
scooters.
They
launched
their
first
motorcycle
in
1981
but
it
was
not
successful.
It
was
mid
80’when
Hero
and
Honda
signed
a
JV
and
Hero
Honda
entered
with
their
first
bike
in
1984.
But
until
1990’s
it
was
the
Bajaj
scooters
ruling
India’s
roads
as
they
were
seen
as
family
vehicle.
Problems
after
mid
1980’s
(End
of
License
Raj)
The
end
of
license
raj
started
problem
for
Bajaj.
There
was
no
more
monopoly.
Hero
Honda
was
already
there.
Petrol
prices
started
to
rise
and
people
were
looking
for
more
fuel
efficient
two
wheelers.
Bajaj
tried
to
came
back
by
4
stroke
scooters
but
they
were
not
successful.
Hero
Honda,
Yamaha,
TVS
Suzuki
had
already
started
to
eat
Bajaj’s
share
and
things
were
looking
very
gloomy
for
Bajaj.
The
Revival
of
Bajaj
by
Rajiv
Bajaj
The
results
of
1998
were
very
complex
for
Bajaj,
there
was
a
question
which
way
to
go?
They
had
cash
reserve
but
there
was
no
idea
how
to
sustain
their
market
position?
The
emission
norms
were
very
strict
and
two
stroke
scooters
were
on
the
verge
of
extinction.
The
four
stroke
scooters
were
not
so
successful
as
then
there
was
entry
of
Rajeev
Bajaj
his
son
came
to
steer
the
company
in
1991.
He
had
a
clear
vision
“We
are
not
a
scooter
company.
We
make
products
that
sell.”
A
true
professional.
He
understood
the
changing
market
and
activated
the
Brand
Bajaj.
Strategic
Decisions
Taken
for
Activation
of
Brand
Bajaj
Rajeev
change
the
product
offering
and
identity
of
Bajaj.
The
new
activated
Bajaj
was
more
young
and
dynamic
where
else
old
identity
of
Bajaj
was
of
traditional.
The
targeted
the
growing
youth

4. 4
Brand
Activation
“Bajaj”
population,
offered
them
bikes
instead
of
scooters.
All
types
of
bikes
cruser
such
as
eliminator,
sports
as
Pulsar
and
economical
such
as
Boxer.
He
Changed
the
Logo
of
Bajaj,
which
had
a
more
dynamic
appeal.
Following
are
the
changes
by
Mr.
Rajeev
Bajaj.
Logo
Traditional
Old
Logo
Dynamic
New
Logo
The
change
is
clearly
communicated
and
it’s
an
important
part
for
Brand
Activation.
Change
in
Product
Offering:
Bajaj
Dramatically
changed
its
product
line
from
Scooter
oriented
to
Motorcycles.
Even
for
the
three
wheelers
they
brought
4
stroke
variants
and
now
CNG.
They
introduced
automatic
scooterettes
for
ladies
and
unisex
both.
The
motorbikes
cater
to
all
the
rising
needs
such
as
Boxer
for
smaller
towns
&
villages,
Patina
was
100
cc
fuel-­‐efficient,
Discover
was
performance
oriented,
Pulsar
is
a
sports
bike
and
avenger
a
curser
bike.
Bajaj
old
Product
Line:

5.
Brand
Activation
“Bajaj”
5
Bajaj
New
Product
Line
Change
in
Communication:
The
first
Television
advertisement
they
launched
after
transformation
was
“Badal
rahe
hum
yaha,
humara
kal
humara
aaj”.
They
linked
the
past
and
tradition
to
the
modern
and
dynamic
outlook.
They
have
shown
all
the
new
models
of
motorcycles
and
a
well-­‐knitted
Indian
tradition
in
the
Television
advertisement.
It
was
a
well-­‐thought
and
excellent
Brand
Activation
shown
by
Bajaj.
Change
In
Strategy:
The
Bajaj
brothers
(Rahul
and
Shishir)
say
the
problem
was
of
one
of
attitude:
Bajaj
was
a
scooter
company
and
therefore
the
motorbike
department
was
given
second-­‐class
treatment
(it
was
only
10
per
cent
of
their
business
in
1996),
the
quality
of
the
products
was
poor,
and
they
did
not
offer
fuel
efficiency
the
way
the
Japanese
bikes
did.
In
1997,
Rajiv
walked
into
the
Aurangabad
plant
and
ordered
it
shut
down.
Says
Sanjiv:
"It
was
unimaginable
and
against
everything
Bajaj
had
stood
for.
In
40
years
we
had
never
shut
production
anywhere.
But
we
realized
that
a
shock
needed
to
go
through
the
system."
Their
father,
he
says,
had
not
opposed
the
move.

6. 6
Brand
Activation
“Bajaj”
That
was
just
the
beginning.
When
the
brothers
discovered
that
they
had
over
1,000
vendors
supplying
them
components,
many
of
which
were
plain
bad,
Rajiv
decided
to
prune
them
down
to
a
realistic
200.
And
the
labor
force
was
trimmed
down
from
23,000
to
virtually
half
that
through
a
VRS
scheme.
"We
had
studied
in
the
local
school
within
the
premises,
had
played
with
many
of
them,
some
were
our
friends,"
says
Sanjiv,
"suddenly,
we
had
to
let
them
go."
The
challenge
was
to
get
the
right
products
at
the
right
price,
to
bring
in
Japanese
productivity
tools
to
reduce
costs
just
as
the
competitors
were
doing.
Sanjiv,
who
had
joined
the
company
armed
with
an
MBA
from
Harvard,
says
his
reading
of
big
companies
like
Honda,
Toyota
and
Apple
had
taught
him
one
thing:
a
successful
company
needs
a
good
product.
But
most
workers
in
the
Pune
plant
did
not
believe
you
could
bring
in
Japanese
management
practices
into
India
there
was
stiff
resistance
to
the
move.
That's
when
the
two
brothers
made
an
unusual
decision.
They
decided
to
set
up
a
new
mobike
plant
but
not
at
their
existing
facility
in
Pune.
Instead,
they
chose
Chakan,
an
hour's
drive
from
Pune.
Says
Sanjiv:
"We
realised
that
sometimes
people
have
to
be
taught
by
example.
That's
what
we
did
in
Chakan."
Chakan
was
like
a
laboratory.
There
was
no
concept
of
workers
-­‐-­‐
everyone
was
"staff"
-­‐-­‐
and
the
factory
had
the
luxury
of
a
three-­‐hour
gap
between
shifts
for
maintenance.
Productivity
levels
virtually
doubled
per
worker
as
compared
to
the
company's
Pune
plant,
and
it
remains
the
benchmark
to
push
productivity
levels
in
all
other
units.
The
next
challenge
was
to
get
the
products
right.
Rajiv
took
up
the
cudgels
by
personally
supervising
even
nitty-­‐gritty
details,
from
the
styling
and
paint
to
the
design
of
the
console,
the
right
grip
and
even
the
spark
plug
to
use.
A
project
for
a
bike
is
conceived
depending
on
inputs
from
the
marketing
team.
The
design
department
then
comes
up
with
eight-­‐10
different
designs
that
Rajiv
and
his
team
narrow
down
to
three
or
four.
Feedback
on
the
styling
is
sought
through
market
surveys
and,
finally,
two
prototypes
of
the
bike
are
made.
Rajiv
&
Co
work
on
at
least
two
to
three
variations
of
engines,
of
which
one
is
selected.
This
takes
24-­‐30
months.
That
is
how
many
of
their
hit
bikes
were
built.
Rajiv
and
Sanjiv
found
there
was
a
market
of
customers
looking
for
something
more
than
just
a
bike
for
commuting
-­‐-­‐
they
wanted
rugged
styling
and
more
power.
Pulsar
(150
cc
and
180cc)
was
born
from
this
market
reaction.
But
Sanjiv
notes:
"When
we

7.
Brand
Activation
“Bajaj”
7
conceived
the
bike,
we
thought
the
target
audience
would
be
25-­‐35-­‐year-­‐olds.
But
when
we
saw
the
sales
chart,
it
was
being
being
picked
up
by
35-­‐45-­‐year-­‐old
customers."
The
Bajajs
say
they
realised
the
reason
when
they
saw
the
stance
that
riders
took
while
driving
the
bike
-­‐-­‐
the
product
was
fulfiling
the
desire
of
the
riders
to
take
on
a
youthful
persona.
Perhaps
in
the
same
way
the
formally
dressed
executive
in
the
US
may
drive
a
Range
Rover
SUV
to
create
the
image
of
a
man
who
seeks
adventure.
Rajiv
realised
that
to
crack
the
125
cc
segment
where
Hero
Honda
had
been
ruling
the
market
was
going
to
require
a
very
strong
reason.
A
market
survey
showed
that
Honda's
bikes
provided
reliability.
But
Sanjiv
and
Rajiv
did
not
miss
out
on
some
key
revelations:
customers
thought
that
the
Honda
bikes
did
not
have
enough
power,
and
would
prefer
bikes
with
superior
styling.
Rajiv's
mandate
to
the
design
department
was
simple:
they
would
have
to
build
a
bike
with
these
two
basic
qualities
without
compromising
on
either
price
or
fuel
efficiency.
Bajaj
Discover
was
born
from
this
understanding,
and
the
company
sells
over
25,000
of
these
bikes
every
month.
But
analysts
say
the
brothers'
drive
for
volumes
is
already
effecting
margins.
A
senior
analyst
in
Motilal
Oswal
says
margins
of
the
company
have
fallen
to
16
per
cent
(from
18
per
cent
earlier).
He
points
out:
"That
they
are
selling
125
cc
bikes
at
100
cc
prices
is
cause
for
worry.
They
are
dependent
on
the
entry
level
for
large
volumes.
And
three-­‐wheeler
sales
are
down."
Conclusion:
Brand
Activation
is
a
perfect
mix
of
bringing
about
a
change
in
Product/services
offering,
employee
outlook
and
belief
and
Identity
of
brand
itself.
Its
like
a
re-­‐birth
of
a
brand
and
the
most
difficult
task
to
use
the
earlier
brand
equity
during
Brand
Activation.
Bajaj
was
successful
in
doing
so.
Rajeev
Bajaj
was
the
turnaround
leader
for
Bajaj
to
turn
the
tables
for
them.
And
he
used
brand
activation
as
a
tool
for
reviving
the
company.

8. 8
Brand
Activation
“Bajaj”
Reference:
1. Brand
Activation
by
By:
Paul
Morel,
Peter
Preisler
and
Anders
Nyström
2. Transformation
of
Bajaj
Auto
Ltd
by
Geetha
Parimal,
Sumatra
Goshal
and
Sudeep
Budhiraja.
3. “How
the
sons
transformed
Bajaj”
article
from
Business
Standard
by
Surajeet
Das
Gupta.