Bajaj Auto Limited: Synergizing Product Engineering and Market Engineering Initiatives

Manit Mishra () and S. C. Sahoo
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Manit Mishra: International Management Institute, Gothapatna, Bhubaneswar, India
S. C. Sahoo: Mahendra Institute of Management & Technical Studies, Bhubaneswar, India

Asian Case Research Journal (ACRJ), 2013, vol. 17, issue 02, 305-338

Abstract: The case chronicles the rise-fall-rise saga of the Indian two-wheeler major Bajaj Auto Limited from the perspective of product engineering and market engineering initiatives. The Indian two-wheeler industry went through a metamorphosis over the last two decades as consumer preference shifted from inconspicuous scooter to elegant motorcycle. Even as Bajaj implemented product and market engineering initiatives to satisfy changing consumer tastes, its market share was not a reflection of its efforts until it integrated these two vital domains. The case elucidates upon the decision situations encountered by the top management of Bajaj in its quest to attain consumer centricity through synergistic assimilation of product engineering skills and market engineering acumen.The case is divided into eight sections. The introduction section traces the history of Indian two-wheeler industry from the product and market engineering perspective and elucidates upon the challenge of creating a customer-centred company through synergistic assimilation of both these vital domains. The second section offers a view of the present two-wheeler industry landscape; critically evaluates the consumer value system to reveal the different benefit-based customer segments; and, documents the shifting loyalty of Indian consumers from archaic scooters to aesthetic motorcycles. The third section maps the industry in terms of price and engine capacity so as to sketch out the competitive scenario. The fourth section highlights the trials and tribulations that the organization has undergone on its way to learning the ropes towards better integration of product engineering and market engineering initiatives.The fifth section provides a description of the various product innovation measures taken by Bajaj in the decade gone by to win back its lost glory. The sixth section delineates Bajaj's endeavour in the last decade to harness latent consumer needs, wants and desires to its advantage. The section on competitors' product and market engineering strategies puts into perspective the product engineering and market engineering strategies of Bajaj's key competitors — Hero Honda and TVS. The case culminates with the conclusion section wherein the authors have discussed how the synergy achieved between the product engineering and market engineering initiatives in the last decade has catapulted Bajaj back into reckoning as a proactive player in the Indian two-wheeler industry.

Date: 2013
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DOI: 10.1142/S0218927513500144

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