Thursday, April 08, 2010

Brand Update : Bajaj XCD RIP ( 2007-2010)

According to Economic Times, Bajaj has stopped the production of XCD 125 and XCD 135. The brand which was touted to give Hero Honda Splendour a run for money has become a part of history. In my analysis of the brand, I had opined about the positioning problem faced by XCD.

I feel that the brand established wrong sets of parity with Pulsar and the total confusion resulting in the focus on the cubic capacity rather than the brand benefits resulted in the death of this brand. Bajaj later diluted the core positioning of the brand by launching a 125 version of Platina which again cannibalized XCD.

The list of failed brands in the Bajaj's portfolio is increasing every year. The ET article also cites the imminent death of Platina in the future.

I cannot understand where Bajaj Auto is running so fast. The company in a race to overtake Hero Honda in volume sales is killing itself. The rapid launch of new products and product failures are going to hurt the company in future. Now will an XCD/Caliber/Wind customer try their hand on any new Bajaj two wheelers ? How will we ever know when company will stop producing that brand.

XCD could have survived if the company gave time for the brand to settle down, rectified its flaws and invested in the brand. Out of the 2 years that the brand had, the investment on the brand may have stopped after one year.

Bajaj is still putting lot of stake in anchoring their products on the CC( Cubic capacity). My personal opinion is that for a customer CC is irrelevant. They will buy good products and not CC. Too much focus on CC has created lot of problems for Bajaj two wheeler brands.

Related Brand
Bajaj XCD