Bajaj Myopia Finale

MARKETING MYOPIA Bajaj Chetak

Ashish Chatrath

Introduction Marketing

Myopia

◦ Coined by Theodore Levitt ◦ Narrow minded approach to marketing situation ◦ Only short range goals considered ◦ Focuses on only one aspect out of many possible marketing attributes

Bajaj Chetak Named

after Maharana Pratap’s legendry stallion Launched in 1972 Persona of a work-horse Huge hit with middle-class Leader in the segment 10 years’ waiting period (during 70’s and 80’s)

Marketing Campaign Promoted

with baseline “Hamara

Bajaj” Hugely popular campaign Positioned as the Indian Family Vehicle

The road to the end… Primary

reason – the brand forgot the customers – Marketing Myopia No product innovation ◦ Same look ◦ Same quality ◦ Same style

The road to the end… Bajaj

was never serious about product development Average cycle time for new product development - 4-5 years (2-3 years for Japanese competitors) Technical problems – starting trouble, riding comfort

The road to the end… Competitors

ate into its Market

Share ◦ Kinetic Honda – Gearless Scooters ◦ TVS Scooty- Scootrette Segment

Findings… Classical

Marketing Myopia Did not look into the future – the segment was shifting towards motorcycles Motorcycles – higher mileage, better performance Prices of motorcycles falling – direct threat to scooters

Findings… Weak

R&D – Introduction of Classic - a new scooter was a failure in 1994 Nothing wrong with Distribution Pricing reasonable Only problem – THE PRODUCT The Customer beat Bajaj Chetak…!!!

What could have been done… Should

have kept pace with technological advancements ◦ ◦ ◦ ◦

Electric start Riding comfort Greater mileage Better R&D – re-develop product according to current market needs ◦ E.g. Honda’s 4-stroke scooter Eterno