Bajaj Auto has been a strong brand in the Indian market. Bajaj Auto, as a brand has gained a good footing on the local soil and has emerged as a strong competitor to Hero Motorcorp that holds a strong position in the two-wheeler segment in the country. As per 'BrandZ' Top 50 Most Valuable Indian Brands ranking, Bajaj Auto is ranked as India’s 5th most valuable Brand, with an estimated value of about US$3 billion. Apart from this, Bajaj Auto also features in the list of FIVE Most Innovative Indian Companies and the only automotive company from India to feature in the coveted list of Forbes World’s Top 100 Most Innovative Companies of the year 2014.
Speaking more on this marvelous feat, Mr. Rajiv Bajaj, Managing Director, Bajaj Auto said,
“In business everything is determined by one thing - its strategy. In a hyper-competitive world, the sole purpose of a business strategy is to differentiate the business from its competition. A sound strategy does this by creating new categories for its brands to dominate, rather than have them unimaginatively serve existing categories. Our Pulsar, Discover, & RE brands are a result of such a strategy at Bajaj, making us the world's most profitable auto company, with almost half our sales coming from overseas markets.”
To figure out world's top 100 most innovative companies across the globe Forbes uses “wisdom of the crowd” methodology. As per Forbes, “measurement of innovation is an evaluation of the investors’ ability to identify firms they expect to innovate now and in the future.” Companies are generally rated based on the difference between their market capitalization and a net present value of cash flows from existing businesses. This is also known as innovation premium methodology.
Talk about combined brand value and BrandZ Top 50 Most Valuable Indian Brands is valued to be at almost US $70bn. The calculation of combined brand value based on certain parameters are done by WPP's marketing and brand consultancy Millward Brown, the only one in India for valuation considers consumers opinion about a particular brand in order to calculate brands and their contribution towards product brands that make successful businesses. The Top 50 come from 13 different categories. Whereas, seventeen are multi-national corporations (MNCs), rest 26 are private Indian brands, and seven are reportedly state-owned brands. Based companies apprach, it is believed that India is a rich market and is capable of building valuable brands irrespective of factors like structure, category, age, origin, ownership or even price range.
