Brand Update : Yamaha

Yamaha has launched (relaunched ) Fazer in the Indian market. Yamaha India is clearly on overdrive with the success of R15 and FZ range. Fazer is a 150 cc bike priced around Rs 72000.
Fazer came to India in 2004 as a 125 cc bike. The bike was different from others because of its unique twin headlamps. But the bike got a lukewarm response from the Indian market.

Now Fazer comes with a new 153 cc engine and a terrific styling. In my earlier post on Yamaha , I had compared the Fazer 125 cc with its global counterpart and criticized Yamaha for bringing in a stripped down version of Fazer.

Now that complaint has been taken care of. The new Fazer looks exceptionally cool and stylish.

Fazer is targeting the bikers who likes to live their life on their motorcycles. The brand is being positioned as one ideal for those weekend getaways.
The brand is currently running a TVC : Watch it here

Fazer has the tagline of "Touring Spirit " which reflects the brand's positioning.

Yamaha has identified its core brand DNA. Yamaha has found that its success lies in performance bikes rather than those volume driven underpowered bikes. Yamaha is now reinforcing its brand DNA by bringing in models that drive performance and style rather than volume. A look at the home page of Yamaha India reflects the new Yamaha.

Corporate brand - Yamaha also sports the new tagline " Yes Yamaha ".

It is good to see a failed brand rejuvenating itself . The lesson that Yamaha gives the marketing practitioners is not to forget the Brand DNA.

Brand Update : Bajaj Pulsar

Recently I saw an ad of Bajaj which showed that Bajaj XCD 125 is now in the DTSI Club . The DTSI which stands for Digital Twin Spark Ignition system was a technology patented by Bajaj.

This technology uses twin sparks at either end of the combustion chamber which gives faster combustion compared to the single spark plugs found in conventional engines. This twin sparks increases the power of the engine and offer better performance.

Bajaj did a great marketing move by patenting it and then branding this technology as DTSI. This is a classical case of ingredient branding. The DTSI was featured in the second generation Pulsar which was launched in 2003.

While Pulsar rode the wave in 2001 on the back of excellent styling and mind-blowing positioning , DTSI became the key differentiators for the brand after 2003. Pulsar was perceived to be a mean machine because of DTSI.

Pulsar thus created and ruled the performance bike category in India.

Its natural for any company to think of extracting maximum mileage out of a patented technology. Bajaj did just that by extending the DTSI technology to all its vehicle models including scooters . My doubt is whether Bajaj has commoditized the DTSI technology by extending it too much.

When DTSI was associated with Pulsar, it meant power , efficiency and performance . But what will DTSI mean when it is associated with a small scooter like Bajaj Krystal or a entry level bike like XCD.

Branding an ingredient is the same as branding a product. The consumers should feel that the ingredient brand is different from other ingredients . The concept of positioning also applies to ingredient brands.

In many ways, Bajaj has done correct strategies for DTSI. It patented it, protected it and branded the technology. But where it had failed was that it commoditized the ingredient brand.

Bajaj did not try to give a special personality for DTSI. Remember, DTSI had a strong secondary association with Bajaj Pulsar. Both the brands benefited out of this association. Pulsar used DTSI as a differentiator while DTSI got the performance tag from Pulsar.

But by making this technology available to all other brands without clearly looking at synergy was a big mistake from Bajaj. I have no doubt that the extension of DTSI technology to other brands will greatly help the sales of these brands . XCD will sell more when it has the DTSi technology.

When a measly powered scooter is also powered with DTSI, what is DTSI ? It had lost all its brand values which were power and performance. I don't think that XCD is anywhere near Pulsar in terms of power or performance. So in a way Bajaj has virtually killed this powerful ingredient brand.

The brand which is going to suffer most will be the flagship brand Pulsar. When every other Bajaj brands have DTSI, how is Pulsar different from rest of the crowd ?

The obvious answer will be the design. If it is so, then Pulsar could be beaten by any other bikes which are better designed. Having good looks is good for the brand but cannot be sustained over a period of time because :

Competitors can come with good looking bikes.
Designs can be outdated.

Both these are affecting Pulsar. Too many Pulsars on the road has made this brand dated in terms of looks. But DTSI was a powerful differentiator which cannot be copied since it was patented. But Bajaj , because of greed, faltered with one of the most powerful differentiators at its disposal.

Last month, I read a report saying that the newly launched Yamaha FZ 16 has become the number two brand in the 150 cc segment beating Apache RTR , Hero Honda Hunk and CBZ. In some markets, FZ also has beaten the market leader Pulsar. Without a clear differentiator, Pulsar is now more vulnerable than ever.

Is Bajaj listening ?????

Related Brand

Pulsar
Yamaha

Best Marketing Practice : Living the Story

Every brand has a story and the success of the brand depends on how well they tell the story to the consumers.
After a near -death experience in the Indian market, Yamaha have slowly started telling a compulsive story. In my last update on Yamaha, I had blogged about their new launch Yamaha YZF R15. Priced at Rs 1,25000, the brand has already made a strong start.

R 15 is positioned as the urban racing machine. The brand boasts about its racing instinct and most of the auto reviews have written positive words for this machine.

Last day I was watching the Auto Car show in UTV i and happen to see the report on the racing championship for R 15 owners held in October 2008. The first racing event was held in September.
I consider this event as one of the best marketing practice where a brand truly living the dreams it has painted for its customers.

The racing event promoted by Yamaha was not for the racing professionals but for the ordinary owners or R 15. But the entire racing was done on the professional race track. So many guys were able to realize their dream of participating in an actual race using their bike.

Its not the first time that a bike brand associating itself with racing . TVS Apache RTR was positioned along the racing platform. Even the market leader in performance bike - Pulsar also was associated with racing attributes.

But R 15 has gone the extra mile by making racing real by launching such an event. I bet that many of those R 15 owners who participated in the race was seeing the racing track for the first time. They also got the chance to burn the rubber and live their dream - thanks to the brand.
This event is also an outcome of the clear understanding of the consumers who buy such a bike.

Those who can shell out Rs 1 lakh for a bike will definitely a bike enthusiast who wanted to burn the rubber and make a statement. These customers will also be the key opinion leaders among their community be it students or professionals. So a racing event will be the best possible way to make them feel good about their purchase.

The customers of R 15 can participate the event by paying a nominal amount of Rs 500. According to the report , the company will handle the transportation of the bike to the racing venue. The riders are given enough training before letting them loose on the race track.

The brand is going to have lot of advantages by organizing such an event. First is the reinforcement of the brand's positioning of a sports bike. The event also will make the opinion leaders to hook on to their brand. Those who have participated this even will cherish those moments and will have generated lot of positive word of mouth . It also will strengthen the case of pricing the brand at Rs 1.25 lakh .

Another interesting factor is that this event is not for potential customers but existing customers. So this case is an example of a successful "After Marketing' . 'After Marketing ' is a jargon that is used for all marketing activities that are done after the sale is over.

Related Brand

Yamaha

Brand Update : Yamaha

In an interview with CNBC TV18, Rajiv Bajaj was asked about competition. His reply was he get jitters with the new launch of Yamaha R15. What Pulsar done to the motorcycles, R15 may repeat it.

I did not believe that statement. I viewed the launch of R15 with cynicism because of the price tag.

Can anyone think of buying a bike for Rs 100,000..

But a conversation with my journalist friend who handles the automobile-column in a leading newspaper changed my perception. According to him, R-15 is selling like hotcakes.

In my last post on the brand Yamaha, I had suggested that the brand needs was a statement. And it did make a statement with R15

R 15 is a stunner interms of looks. Auto reviews say that it doesn't disappoint interms of the performance.

More than that ,Yamaha got the timing correct. The market was evolving and there was a need for a motorcycle which made a statement. Two factors paved the way for the wide acceptance of R 15.

First was the emergence of a new set of customers who wanted a bike and was willing to pay the price to look different. R15 gave that fillip to this segment. These guys liked fast bikes and wanted something that suited the Indian conditions.

Second was the dealer support. Price wars among the bike marketers had significantly eroded the margins. R15 gave the dealers their required margin and they gave enough support for this bike.

Pulsar was too popular to be exclusive so the bike had to be exclusive and the higher price ensured that not everyone could afford this bike.

Whether R 15 will deliver volumes or not, it has given a new lease of life to Yamaha. The brand which was once an icon now have a chance to regain its lost status.

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Yamaha

Brand Update : Yamaha

This year Yamaha launched yet another bike branded Alba 106. Surprisingly this bike is a 100 cc bike which is an absolute contra strategy because almost all bike marketers are moving away from the 100 cc segment. Alba was launched after the reasonably successful run of Gladiator. But according to reports, Yamaha India is in deep trouble and time is running out for them to give a winner. As discussed in the previous blog about Yamaha, it is sad to find an iconic brand now slowly dying.

Alba 106 again is a mass market brand. The brand is once again going to dampen the brand equity of Yamaha which went down the drains with the failures of Crux,Frazer and YBX. What was needed for this brand was a SUPER BIKE and what came was a cropper.
To top it, ALBA 's campaign is one of the worse media campaign I have seen in recent times. The ad surprisingly do not feature the brand ambassador John Abraham. The brand uses the baseline " Got It?" which does not mean anything. The story , the positioning and the USP all missing in the campaign. If the agency feels that Indian consumer will be impressed by showing a tattooed girl and a dude, they are terribly mistaken or they lack commonsense.
Alba 106 fails to convey any sort of differentiation for the product. One print ad says " Ride it if you can handle it" which is a dampener. Another major issue that the brand faces is the failure of the earlier launches like Crux,Frazer etc. Customers who bought these brands are worried about the after sales support. This issue further damages the equity of Yamaha.
Yamaha is again trying wrong medicine to its disease. What it needs is a product like Pulsar that will bring back the confidence of customers back to the brand.


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Yamaha

Image courtesy : magindia

Yamaha : Not truly Yamaha !

Brand: Yamaha
Company: Yamaha
Agency : Dentsu

Yamaha which once ruled the mind of Indian youth is now in dire straits. The company which is the second largest motorcycle manufacturer in the world is having a market share of 5% in the booming Indian two wheeler market which is growing at a rate of 12-15%.

Why?

Yamaha is a performance bike manufacturer which recently celebrated its golden jubilee of its existence . In India Yamaha was present in a joint venture with Escorts which brought out the blockbuster Yamaha RX 100 and the cult Yamaha RD 350. Yamaha and Hero Honda had during the late 80's beat the hell out of scooter manufacturers , but Yamaha now has lost its edge. Yamaha broke the partnership with Escorts and started its India operations as a 100% subsidiary of Yamaha Japan from 2001 onwards.

Yamaha was not able to sustain the momentum it had generated during 1990's with RX100. RX100 was a bike that had style and substance. The product was powerful, gave no mech problems and was embraced by the youth. But after the tight environmental regulations introduced in 90's , RX100 had to be shelved. RX100 was replaced by RX135 which was no where near RX100. The ride was terrible and the product had nothing to boast about. It was the beginning of decline of Yamaha.

Yamaha was not able to bringout a blockbuster product in the recent past. It is unfair if I don't mention that there were lot product launches from Yamaha but nothing clicked. The reason being that the company was focused on Utility segment ( true that money is there only in that segment). Yamaha did not try to look at the changing profile of the Indian consumer.

Yamaha also thought that it had the same premium image in the mind of the customer . It failed to realise that the brand equity has eroded because of failed product launches. It had no product to showcase its superiority as a bike manufacturer. While Bajaj demonstrated its arrival in to the bike segment with Eliminator and Pulsar, Yamaha still tried its luck in the executive segment which was dominated by Splendor from Hero Honda.

Yamaha should have realised that inorder to break the Splendor's dominance, It had to build a brand in the premium segment and using that image, try its luck in the mid segment. Bajaj launched Eliminator to show the technical superiority. We drooled at the cruiser and then grabbed Pulsar. Yamaha failed to do that.

Yamaha tried to shock the market with a low priced Cruiser Enticer at an unbelievable price of 49000 but the product failed because the company wanted to play the volume game. Enticer could not sustain the huge initial it got because the market for cruiser was only emerging and the product did not live up to the expectation. Cruiser with only a power of 125 cc was itself a failing proposition. Now that there is a trend towards low priced cruiser pioneered by Bajaj Avenger, Enticer relaunch may succeed.

Yamaha then launched Crux and Libero and Fazer in the executive segment but could not set the market on fire . The company says that it is moving away from utility bikes to performance bikes. The launch of Fazer was towards this direction. The product had an unusual look hence failed to catch the imagination of Indian bike enthusiasts. Here again the company made a mistake of not making a statement.

Yamaha is having big plans for India. The company is earmarking 200 crores in revamping its operations. On the marketing side, it has roped in John Abraham as the brand ambassador.

I am no expert in Motorcycles but I feel that Yamaha now needs to make a STATEMENT. A powerful statement that will force the consumers to look up and say " Its a Yamaha".

Just compare the Fazer launched in India and the Fazer which is showcased internationally, the Indian Fazer is no where near the international one. Why did Yamaha which wanted to play the lifestyle game launch a stripped down Fazer ? Had it launched a chunky masculine Yamaha in India, the brand will move miles ahead in the mind of the consumer. Forget the price and the volume, bring the best bike to India and make a statement.

What we have in India is not the Yamaha but only a shadow. Yamaha if it wants to emerge from the shadows will have to shed the volume game and seriously build the brand.

To become Truly Yamaha , Change the rules...