Hero's new identity costs Rs 100 cr; new name and logo on products

MUMBAI/NEW DELHI: Hero Honda has set aside a kitty of Rs 100 crore to create a new brand identity that will lead to a new company name and corporate logo to be etched on every bike and scooter it sells in the Indian market, people familiar with the matter told ET.

The company has shortlisted five agencies -JWT, Draftfcb Ulka, Mudra, Law & Kenneth , and Percept H - to create the new brand identity, sources said. JWT, Draftfcb Ulka, and Percept H already handle various brands in the Hero Honda portfolio. These five agencies will join London-based design agency Wolff Olins to work on the brand repositioning, including new name and logo.

The new logo, expected to have a direct connect with its mass customers and to be unveiled in the next few months, will drop the Honda name from its corporate identity. Hero Honda has not yet replied to an e-mail query by ET on the rebranding plans.

The 27-year-old Indo-Japanese venture, which is the world's largest two-wheeler maker by volume, is awaiting regulatory approvals to break its joint venture with Honda and pursue operations independently.

Hero Honda managing director Pawan Munjal is taking a personal interest in the presentation made by these agencies, as he wants to ensure no stone is left unturned to announce a new brand post the separation from Honda, people close to the matter said. "The final call on the selection of the agency to work with Wolff Olins could get delayed as senior officials from Hero Honda are in Japan and their arrival back to India has got delayed due to the earthquake," sources said.

The Hero group's new brand would also have a global presence as the company intends to ship its bikes and scooters to markets such as Latin America, Africa, Middle East, and South East Asia.

"Hero Honda wants to ensure that the announcement of the new brand identity and the subsequent communication is high decibel and is in line with the recent brand re-launches, if not better," sources said.

The agencies in fray to undertake the rebranding exercise will also present their assessment of recent brand revamps such as Airtel and entry strategies used by new brands like Tata Docomo - which were also developed by the Wolff Olins.

Analysts tracking the market said that the new brand positioning is likely to be India-centric and will take into account the independent technology strength the company aims to acquire. "Hero has to take its customer connect to the next level. It primarily operates at the entry-level of the two-wheeler market and the new branding has to synergise technology and masculinity associated with the automotive world. It should have a stronger marketing participation at its sales points that will drive customer interest in the company," Shravani Sen, director of Delhi-based marketing firm Synovates , said. A similar rebranding exercise was seen during the divorce of Bajaj Auto from Kawasaki and TVS Motors from Suzuki, he added.

Hero Honda has been one of the largest spenders in the Indian marketing space and has been actively associated with top-notch events such as ICC World Cup, Indian Open Golf Tournament, IPL , and Commonwealth Games . The company likely spends over Rs 300 crore annually on marketing and product promotions.