Group - 1

Anish Padhi – A 11
Megha Gupta – A 32
Priyadarshini Tyagi – A 44
Punit Phogat – A 47
Rakesh Kumar – A 49
 Key decision points

1. Introduce the new quadricylce as a downgrade model of a car or an upgrade model

2. Should the new product be an extension of RE brand or Bajaj brand?

• Enhance its products and make public

• Bajaj is essentially a motorcycle company. Cars under Bajaj brand will contradict with “global
motorcycle powerhouse” image of the brand
• Difficult to compete with already established car brands like Tata, Maruti and Hyundai
• Manufacturing a car with good features and safety system would be difficult to produce with a price
tag between Rs 1,75,000- Rs 2,10,000
 Can RE60 disrupt the market?

• Innovated product
• New category
• Eco-friendly, safe and highly efficient [exhibit-7]
• More profitability for owner [exhibit 4]
• Potential market by volume= 1315533 units (2016) with 13.7% CAGR

https://www.bajajauto.com/bajajqute/whyqute.aspx
https://www.techsciresearch.com/report/india-taxi-market/1450.html
https://www.bajajauto.com/MSL-html/html/images/pdf/annual_report_2016-17.pdf
 Product relevance , differentiation and positioning

• Relevant from the perspective of providing efficient and protected last mile connectivity.
• Serves a great deal specifically under heavy rains circumstances when autorikhshaw cannot operate .
• A third passage between the autorikshaw and car as a mode of conveyance .[exhibit 3]
• Ecofriendly with better profit margin. [exhibit 7 & 4]
• Accessing the unserved market (Chandigarh) .
• Safer than an auto – more comfortable and esteemed than an auto.

https://www.bajajauto.com/bajajqute/whyqute.aspx
 RE brand or Bajaj brand?
Why not RE?
• No brand equity
• Wont create a differentiation in the mind of the customer
• The new product has a different category
• Will be perceived as an auto with extra wheel

WHY Bajaj?
• Brand equity
• Assured service and spare parts network
• Bajaj brand will be required to get the product off the the ground.
 PESTEL Analysis
Political Economic Social Technological Environmental Legal
• Bajaj’s sale is distributed • Bajaj has easy installment rules • First Mover’s advantage and • Bajaj has invested heavily in • First of Its Kind vehicle- Quadra • Legal delays led to competitors
equally well within the country with less interest rate thus the Goodwill of Bajaj in the R&D of RE60, thus coming out cycle. take advantage and start on
and outside providing it an makes more people to go for minds of customers. with a consumer friendly their own projects.
edge when launching a new the vehicles. vehicle.
• Strong opposition and criticism
product in a different segment. • Social receptiveness to newer by competitor brands. • Permits for production granted
• Best Fuel economy four
• Consumer disposable income in technologies. (RE was accepted wheeler. to Bajaj, set to launch soon.
• Received government the economy Increased to too) • Cleaner and efficient Mode of
permissions to manufacture RE 192817450 INR Million • Provides you safety, optimum Transportation.
60 in 2018 from 169623970 INR • Possessing a Bajaj vehicle is a efficiency, low emission and • Intellectual property rights and
Million in 2017 and expected to matter of pride but this vehicle speed and low maintenance cost. licencing laws were addressed
• For successful product launch,
• The regulatory practices in increase in 2019. was positioned in a commercial when designing and launching
• Cost of production and know the level of consumer
India are streamlined with segment and tried to evade the product and no Objections
technological innovation in activism regarding
global norms improving the • Higher inflation Rate: will emotional attachment from the were raised.
manufacturing and production : environmental concerns-
“ease of doing business”. require continuous increase in vehicle. higher level of technology used helping in both developing
prices - may lead to lower attracts competitors to step in or environment friendly products
cause chaos. • Consumer Protection Law
levels brand loyalty and • The pricing of the vehicle is and going strong on PR blocks.
• Country has a stable political adhered to when manufacturing
constant endeavours to manage done to make it affordable,
system so Bajaj can make • Evaluate the channels of and selling the vehicle. Various
costs. suitable for a common man’s • Branding: CSR efforts planned
strategies based on that promotion, technology Safety tests done and results
pocket and to provide as an and applied in the new market
scenario and demand of the infrastructure, etc before posted online on the website.
• Steady Unemployment Rate: upgraded version of auto. and new initiative catering to the
product can be estimated. provide less customers but will entering a new market.
prospective market gives a
make it less expensive to hire • Bajaj considered demographic competitive advantage in terms
talented & skill full employees. trends before development of • Fast pace of technology
• Both national and local level of brand perception.
new product and integrating disruption in its industry : assess
Budgets are running on deficit and prepare for it.
features that cater to this
budgets which is boosting
segment- wide scope in
growth in the short term but
commercial segment.
may lead to increase in
inflation over medium term