Bajaj Auto Ltd.’s Brand-Centric Strategy

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Case Details:

Case Details:

Case Code : MKTG269
Case Length :18 Pages
Period : 2000-2010
Pub Date : 2011
Teaching Note : Not Available
Organization : Bajaj Auto Ltd.
Industry : Automobile (Two-wheelers)
Countries : India

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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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Excerpts

The Indian Two-Wheeler Industry

The history of the Indian two-wheeler industry, comprising scooters, motorcycles, and mopeds, had its beginnings in the late 1940s, when Bajaj Auto started selling imported scooters (1948) and Automobile Products of India (API) along with Royal Enfield started manufacturing scooters (1955) and motor cycles respectively in India. In the evolution stage, the Indian two-wheeler industry was highly regulated by the Government of India (GOI) and was largely structured by Indian industrial policies. The License Raj system imposed a strict control on the industry by regulating the entry of new players, imports, foreign investments, etc...

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Bajaj Auto: The Initial Years

The origin of Bajaj Auto goes back to the days of the Indian independence struggle. Jamnalal Bajaj (Jamnalal), freedom fighter and follower of Mahatma Gandhi, was a businessman himself and founded the Bajaj Group in 1926. The businesses included cotton ginning and pressing, and sugar and steel mills. These were, however, looked after by his sons as Jamnalal actively participated in the freedom struggle. In 1942, after the death of Jamnalal, his elder son Kamalnayan Bajaj (Kamalnayan) took over the family business and diversified into the electrical and automobile...

Bajaj Auto Under Rahul Bajaj

In the 1960s, Rahul Bajaj (Rahul), the elder son of Kamalnayan, also entered the family business. In 1962, he left for the US to pursue an MBA degree at Harvard Business School. By 1968, Rahul had become a key person at Bajaj Auto and he rose to the level of managing director in 1970.Rahul began to drive Bajaj Auto toward the growth path. He focused on standardization of product and quality, cost control, and margin growth...

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