Here are a few insights into the auto business by Rajiv Bajaj of Bajaj Auto.
"By the end of the day, the only measure of a good brand is its pricing power in the market."
"Products sell, but brands profit."
"If you want to achieve sales, it is easy — give anything away free and it will sell! But then you can only call it a product and not a brand."
"Today, a BMW or Audi by and large decides its price whereas there is no impact when a General Motors or Ford reduces the price of its cars. That is why these German companies have consistently made money while the only others to do this are Toyota and Honda."
"The measure of a brand is profit but just because something is profitable does not make it a brand. The reverse is clearly not true."
"If you position something on price and proclaim that you are going to do something small or low-cost without any frills and this is the bottom of your priority, you will never make money on these products."
"How do you account for the loyalty people have for brands like Tata, Godrej or Bajaj? For most people here, the word ‘brand’ means familiarity, because it is well known and respected. It comes with history and, therefore, awareness is the key. To me, brand is profit, period! The ability to price a product at a premium to competition is what matters."
"Why is it that big companies with smart people and huge resources, be it GM, Ford, Chrysler, Fiat, Peugeot, Renault or Volkswagen, are just about okay or even bleeding in comparison? It is because they make the fundamental mistake of trying to make all products for all segments to be sold in all markets. There is no specialization here and brands are never built on a diffused strategy. Those companies which have kept the brands sharper are the ones that are profitable. One of the big mistakes is to try and make everything for everyone and put the same brand across segments.
"By the end of the day, the only measure of a good brand is its pricing power in the market."
"Products sell, but brands profit."
"If you want to achieve sales, it is easy — give anything away free and it will sell! But then you can only call it a product and not a brand."
"Today, a BMW or Audi by and large decides its price whereas there is no impact when a General Motors or Ford reduces the price of its cars. That is why these German companies have consistently made money while the only others to do this are Toyota and Honda."
"The measure of a brand is profit but just because something is profitable does not make it a brand. The reverse is clearly not true."
"If you position something on price and proclaim that you are going to do something small or low-cost without any frills and this is the bottom of your priority, you will never make money on these products."
"How do you account for the loyalty people have for brands like Tata, Godrej or Bajaj? For most people here, the word ‘brand’ means familiarity, because it is well known and respected. It comes with history and, therefore, awareness is the key. To me, brand is profit, period! The ability to price a product at a premium to competition is what matters."
"Why is it that big companies with smart people and huge resources, be it GM, Ford, Chrysler, Fiat, Peugeot, Renault or Volkswagen, are just about okay or even bleeding in comparison? It is because they make the fundamental mistake of trying to make all products for all segments to be sold in all markets. There is no specialization here and brands are never built on a diffused strategy. Those companies which have kept the brands sharper are the ones that are profitable. One of the big mistakes is to try and make everything for everyone and put the same brand across segments.
