A WRITE UP ON “BAJAJ AUTO LTD.”
* INTRODUCTION OF THE COMPANY
* BRAND CENTRIC STRATEGEY
* UNMET NEEDS
* SUB MARKET
* SWOT ANALYSIS
* MARKETING STRATEGIES
* COMPANY STRUCTURE
* B.A.L STRATEGY AND CONCLUSION
* REBRANDING OF HAMARA BAJAJ
1.INTRODUCTION OF THE COMPANY.
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, and foreign investments. The present chairman of the group, Rahul Bajaj, took charge of the business in 1965. Under his leadership, the turnover of the Bajaj Auto the flagship company has gone up from Rs. 72 million to Rs. 46.16 billion, its product portfolio has expanded from one to and the brand has found a global market. He is one of the India’s most distinguish business leaders and internationally respected for his business acumen and entrepreneurial spirit. 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.
Chetak brand name dominated the Indian two wheelers market from early 1970s to the early1990s and helped Bajaj Auto became a leader in the industry. As Indian Two Wheeler Industry was deregulated it faced the competition in the 1990s, Bajaj Auto began to face a threat from foreign players. In addition, in late 1990s, due to the 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. With the twin- brand strategy, he focused in only two brands Discover and pulsar pulling back the Bajaj name, as it is associated with various other products. And with the change in strategy he was able to double his lost market share as well as sales. Bajaj Auto, which began in 1945 as a trading company, importing and selling two-and three-wheelers in India, started vehicle manufacturing in 1959 by obtaining the rights from Italy-based Piaggio. Once the agreement with Piaggio expired, the company made and sold vehicles under the Bajaj name. Since the mid-1960s, under the reins of Rahul Bajaj, the third generation head of the company, Bajaj Auto began to grow and create the image of a reliable scooter brand in India. C. Managerial Style at Bajaj Auto off late Bajaj Auto Ltd has emphasized a lot on organizational restructuring for the auto business. With this restructuring the exiting business roles and responsibilities at the company has strengthened and enhanced to ensure greater operational empowerment and effective management. The five pillars of this new structure (strategic units) are R&D, Engineering, Two Wheeler Business Unit, Commercial Vehicles Business Unit and International Business Unit. These pillars are being supported by functions of...
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