Should Bajaj be dropped? Implementation issues
In my previous post, I had discussed the new branding strategy of Rajiv Bajaj from the point of view of management theory. Well, management theory suggests that Rajiv Bajaj is on the right track. Now let us discuss some of the implementation issues that Rajiv Bajaj will have to grapple with to make his new branding strategy a success. In addition, we will also try to comment on some of the issued and concerns raised by others while debating on this issue.
What is positioning? Lets understand from an accountant.
Sunce we have been talking about positioning and branding with respect to Bajaj Auto’s new branding strategy, I thought an example to explain the concept of positioning would help.
Bajaj Auto’s branding strategy. What does management theory say?
Yesterday, in my post I had suggested that analyzing the new branding strategy adopted by Rajiv Bajaj of Bajaj Auto would be a great learning experience. I had suggested that we will analyze it from two perspectives. First, I will discuss it from the point of view of what management theory says.
Should Bajaj be dropped?
We all know by now that Rajiv Bajaj takes radical decisions. After deciding to exit the scooter market, he is taking another radical decision to restructure the company’s branding strategy. Unfortunately, Rahul Bajaj did not agree with Rajiv on his strategy to exit the scooter market and now he does not agree with Rajiv on the new branding strategy.
Our obsession – Market leadership
Businesses all over the world are obsessed with achieving market leadership, building scale to achieve economies of scale and last but not the least, consistently clocking high growth rate. However, the obsession of businesses with the above objectives invariably lands them in trouble. Why? Primarily because they have not only misunderstood the concepts behind these objectives but also how these objectives should be achieved. As such, I feel that there is a strong need to clarify what our obsessions mean so that we can avoid the pitfalls and run our businesses successfully. I will discuss each of the obsessions one by one. First, let us deal with our obsession of achieving market leadership.
Big TV vs Airtel DTH Ad campaign
Big TV has taken the Airtel DTH’s teaser campaign and turned it into its own. They have taken the red chair to promote their own products. Now is this a good idea?
Blue Ocean or Positioning or Finding a Gap
I recently read an article about Renee Mauborgne’s book “Blue Ocean Strategy: How to create uncontested market space and make competition irrelevant.” I have not read the book but what her concept seems to be based on the concept of positioning or finding a gap in the marketplace which Al Reis and Jack Trout have explained it very well in their books. She uses the example of Cemex, a Mexican cement company which basically positioned cement as a gift item because of the desire of Mexican to build cement houses and were able to increase its sales tremendously. This is just positioning for a particular segment of people. Similarly, the example of Nintendo Wii and Sony’s Playstation 3, I think all about positioning and finding a gap in the market.
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