Khushboo Lakhwani

CASE ANALYSIS
BAJAJ RE60: THE BRANDING CHALLENGE OF DISTRUPTIVE INNOVATION

Bajaj is leading automobile produce not only in India but across the world. While it rules the
market with 2 wheelers especially pulsar and similar products it is also a leading the market
in 3-wheeler category. The Bajaj autos have 51% market share and are the major seller in the
urban cities where these 3-wheelers are used to end connectivity. These cities have the public
transport already with them but the end connectivity to destination for shorter route is through
the 3-wheeelers.

Now Bajaj has come up with a product which is a better version of Rickshaw with 4 wheels
to it. The brand focuses on the band between the rickshaw and the taxis where it thinks that
there is a huge gap between the per/ km pricing and hence the Bajaj-RE would bridge the gap
between both. Although in market and at automobile conclave they faced a greater resistance
towards their product as this was looked as the degradation of 4 wheelers but people keeping
the bottom to top approach had to see this as the improved version of the 3 wheelers.

Bajaj basically has a market that it is catering for the 3 wheelers both inside and outside the
country and hence the decision on the table is:

• Weather they can go with the original positioning of the Bajaj brand and associate the
product with it.
• Or they could name the vehicle as entirely new and can reposition it as entire new
product.

While the target market that they were offering is not the same as people will not necessarily buy
the 4 wheeler it is looking to integrate into the new market where the customers would buy it. While
Bajaj has gain that confidence in the market where their rear engine design is well appreciated by
the audience.

Recommendations:-

1. Bringing about a new brand would be a better idea as people will not relate Bajaj to 4
wheelers and there is no overlap between the markets of the two.
2. The decision of target the market between rickshaw and taxi could be a huge risk as people
will not necessarily shift to the 4 wheelers instead of taxi just because they do not harm
environment and they may blame this vehicle more for the traffic congestion.
Khushboo Lakhwani