Bajaj RE60: The Branding Challenge of Disruptive Innovation
(11 pages of text)
Bajaj Auto Limited (BAL), the world’s largest manufacturer of three-wheel vehicles, was about to launch India’s first quadricycle, built indigenously for applications that were uniquely useful for urban transportation in developing markets such as India. The four-wheel vehicle was being launched as a completely new category in the Indian market by BAL’s Commercial Vehicle division. The dilemma facing the BAL team was whether to brand the new product as an extension of the company’s three-wheel market leader or as an independent brand. Furthermore, what degree of endorsement would be required from the master brand, “Bajaj”? The potential success of this vehicle would have a profound effect on BAL’s ability to develop its brand image and carve out a leadership position in a new category of commercial vehicles in India.
This case is suitable for product management, brand management, and strategic marketing management courses in senior MBA or executive level programs. After completion of the case, students should be able to understand
- how to assess possible growth and revival strategies for a mature product in a saturated market;
- new product development opportunities and the innovator’s dilemma;
- the role of differentiation in facilitating positioning for a product/brand;
- the role of branding in delivering the product strategy to the marketplace; and
- how to assess possible brand architecture that could determine the company’s future direction.
India, Large, 2014
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