IIPM News Broadcast: December 2010

Tuesday, December 21, 2010

As the full range of Kawasaki and KTM bikes hits Bajaj’s Probiking showrooms, the format will be most critical role for Bajaj Auto’s premium segment g

The format was initially started simply with the aim of projecting a rougher and tougher road image for Bajaj bikes. Having already launched the 250cc Kawasaki Ninja (last year) coupled with the upcoming KTM street bikes, the Probiking showrooms are expected to play a key role – perhaps the most – in the future branding exercises of Bajaj Auto in the premium segment. The response to the 250cc Ninja that was launched in the Indian market last year has been overwhelming so far. The product is running on a three to four months’ waiting period. The whopper dopper recent news was Kawasaki announcing the entry of India Kawasaki Motors Pvt Ltd (IKM), which will launch more supersport, sport and cruiser models primarily in the 250cc and above class in the coming times. With an investment of around Rs. 50 million, Kawasaki will be establishing its Indian plant that will be used for the CKD production of its products in the Indian market. And as the Kawasaki models come in, the role of Probiking showrooms will increase phenomenally – provided Rajiv hangs on to the Kawasaki tie-up over the long term. It may be noted here that the relationship of Kawasaki with Bajaj and with the Indian two-wheelers market is decades old as the company entered into a technical assistance agreement with Bajaj Auto in 1984. But the upcoming confusion is inevitable – how will Bajaj manage to sell both their Probikes (KTMs for example) and Kawasaki’s premium range without eating into each other’s brand space? Probiking Head Nandi tells us that to make the brands different from each other, the company will even have separate sections in the Probiking showrooms. The company will be taking the numbers of Probiking showrooms across the country to 40 by the end of this year that as if today stands at 32. Nandi plans to save a huge part of cost by ensuring marketing is based on the interactions with individual interested consumers rather than on huge advertising spends; a tactic similar to the concept of boutique showrooms.

Truly, the competition in the superbikes segment is still in its initial stages as either there are the 1000cc+ R1 and the Hayabusa on the one end or the 150-250cc Karizma and CBZ on the other. Bajaj clearly, and intelligently, is playing on the big gap between the two segments. But Bajaj needs to hurry to grab the first movers’ advantage. Players like Yamaha have already opened their showrooms that flaunt the whole accessories range apart from the superbikes in the Indian market – the company is planning to convert all of its showrooms into what it calls the Yamaha Bike Centre. Honda Motorcycle and Scooters India (HMSI) is also planning to launch a 200cc product in the Indian market that will be competing against the Ninja 250cc and Karizma ZMR. Rajiv knows them all too well, and for too long. We’re sure he’s not resting easy with the lead...

Pawan Chabra

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine

IIPM ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website

Wednesday, December 01, 2010

Jaspal Singh. Bindra, Group Executive Director, Standard Chartered

So what about your organic expansion plans for India?
No doubt, we want to [grow]. Today, India is the second largest market for the bank in terms of pre-tax profit. But as you know, we are very much restricted by the existing regulatory restrictions.

RBI is now considering reviewing its position on the issue of liberalization of foreign banks in the country. Hypothetically speaking, if it allows you to expand both in terms of branches as well as through inorganic means, what would be your preference?
Naturally, expanding our branch network will come into the picture the very moment we get the freedom. But for inorganic means, it would depend a lot on opportunities, valuations and many such things.

Does this money raising have any link to your expansion plans in India?
Not exactly! This amount will go to the parent company. Even the amount is not of a considerable value. It’s less than 1% of our current market cap. But what we are really looking from this issue is that these IDRs will help us to expand our brand presence in the Indian market as well as among the Indian consumers.

We have not seen Standard Chartered much in the ad space, any specific reason for the same?
We never believed much in it though we sponsored some events like the Asia Cup. But yes, of late, we have realized the value of branding and currently working really hard on the same. In one of our latest attempts to create brand awareness across the globe, we have recently started sponsoring the Liverpool Football Club as soccer, as a game, has a great fan following across the globe. Even in India, we had sponsored the Mumbai Marathon, which was a great a success for us. Also we have come up with a campaign titled “Here for Good”. We are committed to our market through thick and thin.