Subject category:
Marketing
Published by:
IBS Center for Management Research
Length: 17 pages
Data source: Published sources
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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 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.
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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 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.