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Published by:
IBS Case Development Center (2016)
Length:
8 pages
Data source:
Published sources

Abstract

In post-independent India, many industrialists were at the forefront in developing the economy and one such group was the Bajaj group. This group is among the top of the line business houses in India. It is a well diversified group with a wide range of industries spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel, and finance. The flagship company of the group is Bajaj Auto, which is ranked as the world's fourth largest two- and three-wheeler manufacturer. Bajaj, as a brand, is well known across several countries in Latin America, Africa, the Middle East, South and South East Asia. The founder of the group, Jamnalal Bajaj, was a close follower and disciple of Mahatma Gandhi. Kamalnayan Bajaj, his son, then only 27, took over the reins of the business in 1942 and consolidated the group by diversifying into various manufacturing activities. Rahul Bajaj took charge as Chairman of the business in 1965. The turnover of Bajaj Auto, the group's flagship company, under his leadership, went up from INR72 million to INR120 billion with the expansion of its product portfolio and after it found a global market. Rahul Bajaj is one of India’s most distinguished business leaders and internationally respected for his business acumen and entrepreneurial spirit. There has been a new direction given to the group by the new MD, Rajiv Bajaj, and over the last five years, Bajaj Auto's management has been communicating about the change in consumer preferences for motorcycles. Indian consumers - urban as well as rural - are better off. They have been enjoying greater purchasing power than before; and have begun to demand greater design inputs, better looks, feel, comfort, and adventure for the products that they buy. And they are willing to pay for these attributes. As a consequence, the consumers are upgrading. Across the board, a motorcycle is becoming a lifestyle statement. Boring and fuel efficient no longer work; exciting and fuel efficient do. In addition, there is a growing body of motorbike users who want to purchase powerful models for the pure thrill of biking. The country's second biggest two-wheeler maker with a market cap of INR37,800 crore is undergoing the most radical change after the three-way split of the company nearly four years ago. The rebranding exercise will see the removal of the Bajaj name which has so far enjoyed pride of place in all its products, showrooms, and service centers for over five decades. Bajaj Auto’s move to execute the rebranding strategy, will start a new chapter in history of the Indian Automotive Industry. Bajaj is going to become the first company to brand its motorcycle individually rather than having a parent brand name like TVS, TATA and Honda.

Topics

Branding; Brand strategies; Business strategy; Marketing management; Product strategies; Brand management marketing communications; Brand equity; Marketing communications; Brand extension
Location:
Industry:
Size:
Large
Other setting(s):
1942-2014

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