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 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.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• 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.

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.