Abstract

This case study deals with the strategies used for the re-entry of Vespa into the Indian market in 2012. The Piaggio Group introduced its popular brand (Vespa) of scooters in the Indian market during the 1950s through a tie-up with Bachraj Trading Company. However, PiaggioVespa had to withdraw Vespa from the market due to disputes with the Indian partner. The company re-entered the Indian market in the 1980s through a joint venture with Lohia Machinery Ltd (LML). In 1999, Piaggio ended the joint venture with LML. But it re-entered India in 2012 with a refined model of its Vespa. Nevertheless, scooters being a niche segment in the two-wheeler market in the India, it remained to be seen whether the Vespa would be successful.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• The reasons for the re-entry of the Vespa into India.
• The market re-entry strategies of the Vespa.
• Whether the Vespa will be successful

Keywords

Piaggio, Vespa, Re-entry strategies, Social Media, Joint Venture, Fashion Trends, Targeting, Positioning, Brand Image, Brand Culture, Premium Pricing, Promotion, Brand Communication, Campaign, Celebrity Advertisement