Bajaj Auto Ltd's Brand-Centric Strategy

            
 
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Case Details:

Price:

Case Code : MKTG269 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Themes

Brand Management / Strategic Marketing / Strategy
Case Length : 18 Pages
Period : 2000-2010
Pub Date : 2011
Teaching Note : Not Available
Organization : Bajaj Auto Ltd.
Industry : Automobile (Two-wheelers)
Countries : India

Abstract:

This case is about the Brand-centric strategy that the fourth largest two-and three-wheeler manufacturer in the world, Bajaj Auto Ltd., adopted in 2009. The scooters produced under the Chetak brand dominated the Indian two-wheeler market from the early 1970s to the early 1990s and helped Bajaj Auto become a leader in the industry. As the Indian Two-wheeler Industry was deregulated and welcomed competition in the 1990s, Bajaj Auto began to face a threat from foreign players. In addition, in the late 1990s, due to a shift in consumer preferences and demand from scooters to motorcycles, Bajaj Auto’s sales and market shares started declining and posed a challenge of sustenance for the company. As a result, by

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

the early 2000s, motorcycle sales surpassed that of scooters and Bajaj Auto lost its market share to Hero Honda. In an attempt to recapture market share, Bajaj Auto restructured its business and launched new motorcycle models. However, Bajaj Auto lost its dominance in the scooter market. Realizing the changing dynamics of the Indian two-wheeler industry and the deficiencies at Bajaj Auto, Rajiv Bajaj began to develop a new strategy for the company. He shifted the focus from scooters to motorcycles and emphasized enhancing the quality of products.

Issues:

Understand Bajaj Auto’s new Brand-centric Strategy
Understand the important role of branding.
Discuss the rationale behind the twin brand strategy
Discuss the brand-centric strategy vs multiple brands under single umbrella.
Explore strategies that the company could adopt in the future.

Contents:

  Page No.
Twin-Brand Focus vs. Multiple Brands Under Single Umbrella 1
The Indian Two-Wheeler Industry 2
Bajaj Auto: The Initial Years 4
Bajaj Auto Under Rahul Bajaj 4
Entry of Gen Next: The Beginning of Revival 6
Rajiv’s Brand-Centric Strategy 9
Exhibits 11

Keywords:

Brand Management, Twin Brand Strategy, Brand-centric Strategy, Umbrella brand, Multiple brand, Indian Two Wheeler Industry, Restructuring, Competition, Marketing Strategy, Corporate Strategy, Bajaj Auto Ltd.

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