As a first step, the company has branded its recently launched motorcycle as Kawasaki Caliber with the Kawasaki name appearing for the first time on the petrol tank alongside a Bajaj logo. Similarly, the company will name its next motorcycle launch, the 175cc 4-stroke Eliminator, as Kawasaki Eliminator. However, Bajaj Auto is not expected to use the Kawasaki brand for its existing ranfe of motorcycles - the Bajaj 4S and KB 125, said vice-president (products) Rajiv Bajaj. "Eventually , we can brand our new motorcycles as Kawasaki," he said.

According to Bajaj, the days of doing business with a high ego have gone and one has to provide what the market wants. "There is no denying the fact that the Kawasaki brand gives a goodimpression," he added.

The move to use the brand for Bajaj Auto's range of motorcycles comes at a time when Bajaj Auto has announced its plans to make scooters account for only about 35 per cent of its total production by 2005. It is also happening when the share of motorcycles in the Indian two-wheeler market is growing faster than scooters and mopeds.

As in the case of the Caliber, the future Kawasaki branded motorcycles are expected to carry the Kawasaki name on their petrol tanks with the Bajaj logo. In fact, Escorts had, right from the beginning, adopted the approach of branding its bikes as Yamaha with only an Escorts logo on the bikes.

It may also be recalled that customer perception of the Suzuki motorcycles began to get affected when TVS, the joint-venture partner, decided to add its name alongside. TVS was later forced to withdraw its name in future launches with the Samurai and Shogun range of motorcycles being branded exclusively Suzuki.

Only one domestic motorcycle manufacturer, HeroHonda, has been able to successfully use a dual brand. Experts believe that this has largely been due to the fact that the company's product was the first four-stroke motorcycle that won favour because of its incredible fuel-efficiency at over 70 km to a litre. According to them, unlike TVS or Bajaj, the word Hero is synonymous with a positive human trait and the relation to the company becomes relatively insignificant.

The use of the foreign brand is not confined to the Indian two-wheeler segment. It can also be seen in new car models like the Ford Escort (where the Indian partner is Mahindra & Mahindra), Opel Astra (the CK Birla group of companies), Honda City (SIEL), Fiat Uno (Premier Automobiles) and the Misubishi Lancer (exclusively Hindustan Motors). The reason is simple - it is the foreign partner in the joint venture who has imparted the technology for the product and it is his reputation at stake in the Indian market.

Insight -- Makes marketing sense

The move by Bajaj to only utilise theKawasaki brandname for its future range of motorcycles in the country makes good marketing sense. Especially since Bajaj would now be in a position to cash in on Kawasaki's strong retailing brand equity for motorcycles.

Given that this year's bottomline growth at Bajaj owed a large deal to the improved motorcycle offtakes, the company's move to enhance brand equity in this segment is eminently justified. Bajaj can now focus on creating brand equity merely for its scooters and three-wheelers, which anyway enjoy dominant market shares in their respective segments. However, problems might arise later, if Kawasaki - enticed by the lucrative Indian market - decides to go it alone.