Bajaj automobiles-sales-marketing-project

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Summer Internship Project work of Mohsin Khan

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Bajaj automobiles-sales-marketing-project

  1. 1. TABLE OF CONTENTS Page no. CHAPTER 1 Company History Company Profile Company Flashback 02 08 10 CHAPTER 2 Objectives Research Methodology 12 13 CHAPTER 3 Data Collection o Products o Key Policies o Group Companies o Segment wise results o Sales o Swot analysis 15 21 22 23 25 27 CHAPTER 4 Infrastructure of Bajaj Management Profile HR of Bajaj 28 29 30 CHAPTER 5 Findings Analysis Suggestions 32 34 CHAPTER 6 Conclusion 35 CHAPTER 7 Annexure 36 1
  2. 2. CHAPTER 8 Bibliography 38 2
  3. 3. Acknowledgement If words are considered to be signs of gratitude then let these words convey the very same. My sincere gratitude to Bajaj Motors for providing me with an opportunity to work with Bajaj Motors and giving necessary directions on doing this project to the best of my abilities. I am highly indebted to Shri Raghvendra Pratap Singh, Area Sales Manager (Bajaj Motors) and company project guide, who has provided me with the necessary information and also for the support extended out to me in the completion of this report and his valuable suggestion and comments on bringing out this report in the best way possible. I am grateful to all faculty members of Department of Business Administration, University of Lucknow, Lucknow and my friends who have helped me in the successful completion of this project. I extend my heartfelt thanks to my family members and friends for giving their valuable support and giving important direction during my training. Thanking You 3
  4. 4. COMPANY HISTORY Company Perspectives: Our Philosophy: We approach our responsibilities with ambition and resourcefulness. We organize ourselves for a transparent and harmonious flow of work. We respect sound theory and encourage creative experimentation. And we make our workplace a source of pride. We believe in: Transparency a commitment that the business is managed along transparent lines. Fairness & mdashø all stakeholders in the Company, but especially to minority shareholders. Disclosure--of all relevant financial and non-financial information in an easily understood manner. Supervision-of the Company's activities by a professionally competent and independent Board of Directors. Key Dates: 1945: 1960: 1977: 1984: 1998: 2000: Bajaj Auto is founded. Rahul Bajaj becomes the Indian licensee for Vespa scooters. Technical collaboration with Piaggio ends. Work begins on a second plant. Bajaj plans to build its third plant to meet demand. Thousands of workers are laid off to cut costs. Company History: Bajaj Auto Limited is India's largest manufacturer of scooters and motorcycles. The company generally has lagged behind its Japanese rivals in technology, but has invested heavily to catch up. Its strong suit is high-volume production; it is the lowest-cost scooter maker in the world. Although publicly owned, the company has been controlled by the Bajaj family since its founding. 4
  5. 5. Origins The Bajaj Group was formed in the first days of India's independence from Britain. Its founder, Jamnalal Bajaj, had been a follower of Mahatma Gandhi, who reportedly referred to him as a fifth son. 'Whenever I spoke of wealthy men becoming the trustees of their wealth for the common good I always had this merchant prince principally in mind,' said the Mahatma after Jamnalal's death. Jamnalal Bajaj was succeeded by his eldest son, 27-year-old Kamalnayan, in 1942. Kamalnayan, however, was preoccupied with India's struggle for independence. After this was achieved, in 1947, Kamalnayan consolidated and diversified the group, branching into cement, ayurvedic medicines, electrical equipment, and appliances, as well as scooters. The precursor to Bajaj Auto had been formed on November 29, 1945 as M/s Bachraj Trading Ltd. It began selling imported two- and threewheeled vehicles in 1948 and obtained a manufacturing license from the government 11 years later. The next year, 1960, Bajaj Auto became a public limited company. Rahul Bajaj reportedly adored the famous Vespa scooters made by Piaggio of Italy. In 1960, at the age of 22, he became the Indian licensee for the make; Bajaj Auto began producing its first twowheelers the next year. Rahul Bajaj became the group's chief executive officer in 1968 after first picking up an MBA at Harvard. He lived next to the factory in Pune, an industrial city three hours' drive from Bombay. The company had an annual turnover of Rs 72 million at the time. By 1970, the company had produced 100,000 vehicles. The oil crisis soon drove cars 5
  6. 6. off the roads in favor of two-wheelers, much cheaper to buy and many times more fuel-efficient. A number of new models were introduced in the 1970s, including the three-wheeler goods carrier and Bajaj Chetak early in the decade and the Bajaj Super and three-wheeled, rear engine Autorickshaw in 1976 and 1977. Bajaj Auto produced 100,000 vehicles in the 1976-77 fiscal year alone. The technical collaboration agreement with Piaggio of Italy expired in 1977. Afterward, Piaggio, maker of the Vespa brand of scooters, filed patent infringement suits to block Bajaj scooter sales in the United States, United Kingdom, West Germany, and Hong Kong. Bajaj's scooter exports plummeted from Rs 133.2 million in 1980-81 to Rs 52 million ($5.4 million) in 1981-82, although total revenues rose five percent to Rs 1.16 billion. Pretax profits were cut in half, to Rs 63 million. New Competition in the 1980s Japanese and Italian scooter companies began entering the Indian market in the early 1980s. Although some boasted superior technology and flashier brands, Bajaj Auto had built up several advantages in the previous decades. Its customers liked the durability of the product and the ready availability of maintenance; the company's distributors permeated the country. The Bajaj M-50 debuted in 1981. The new fuel-efficient, 50cc motorcycle was immediately successful, and the company aimed to be able to make 60,000 of them a year by 1985. Capacity was the most important constraint for the Indian motorcycle industry. Although the country's total production rose from 262,000 vehicles in 1976 to 600,000 in 1982, companies like rival Lohia Machines had difficulty meeting demand. Bajaj Auto's advance orders for one of its new mini6
  7. 7. motorcycles amounted to $57 million. Work on a new plant at Waluj, Aurangabad commenced in January 1984. The 1986-87 fiscal year saw the introduction of the Bajaj M-80 and the Kawasaki Bajaj KB100 motorcycles. The company was making 500,000 vehicles a year at this point. Although Rahul Bajaj credited much of his company's success with its focus on one type of product, he did attempt to diversify into tractortrailers. In 1987 his attempt to buy control of Ahsok Leyland failed. The Bajaj Sunny was launched in 1990; the Kawasaki Bajaj 4S Champion followed a year later. About this time, the Indian government was initiating a program of market liberalization, doing away with the old 'license raj' system, which limited the amount of investment any one company could make in a particular industry. A possible joint venture with Piaggio was discussed in 1993 but aborted. Rahul Bajaj told the Financial Times that his company was too large to be considered a potential collaborator by Japanese firms. It was hoping to increase its exports, which then amounted to just five percent of sales. The company began by shipping a few thousand vehicles a year to neighboring Sri Lanka and Bangladesh, but soon was reaching markets in Europe, Latin America, Africa, and West Asia. Its domestic market share, barely less than 50 percent, was slowly slipping. By 1994, Bajaj also was contemplating high-volume, low-cost car manufacture. Several of Bajaj's rivals were looking at this market as well, which was being rapidly liberalized by the Indian government. Bajaj Auto produced one million vehicles in the 1994-95 fiscal year. The company was the world's fourth largest manufacturer of twowheelers, behind Japan's Honda, Suzuki, and Kawasaki. New models included the Bajaj Classic and the Bajaj Super Excel. Bajaj also signed 7
  8. 8. development agreements with two Japanese engineering firms, Kubota and Tokyo R & D. Bajaj's most popular models cost about Rs 20,000. 'You just can't beat a Bajaj,' stated the company's marketing slogan. The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw were introduced in 1997. The next year saw the debut of the Kawasaki Bajaj Caliber, the Spirit, and the Legend, India's first four-stroke scooter. The Caliber sold 100,000 units in its first 12 months. Bajaj was planning to build its third plant at a cost of Rs 4 billion ($111.6 million) to produce two new models, one to be developed in collaboration with Cagiva of Italy. New Tools in the 1990s Still, intense competition was beginning to hurt sales at home and abroad during the calendar year 1997. Bajaj's low-tech, low-cost cycles were not faring as well as its rivals' higher-end offerings, particularly in high-powered motorcycles, since poorer consumers were withstanding the worst of the recession. The company invested in its new Pune plant in order to introduce new models more quickly. The company spent Rs 7.5 billion ($185 million) on advanced, computer-controlled machine tools. It would need new models to comply with the more stringent emissions standards slated for 2000. Bajaj began installing Rs 800 catalytic converters to its two-stroke scooter models beginning in 1999. Although its domestic market share continued to slip, falling to 40.5 percent, Bajaj Auto's profits increased slightly at the end of the 199798 fiscal year. In fact, Rahul Bajaj was able to boast, 'My competitors are doing well, but my net profit is still more than the next four biggest companies combined.' Hero Honda was perhaps Bajaj's most serious local threat; in fact, in the fall of 1998, Honda Motor of Japan announced that it was withdrawing from this joint venture. Bajaj Auto had quadrupled its product design staff to 500. It also acquired technology from its foreign partners, such as Kawasaki 8
  9. 9. (motorcycles), Kubota (diesel engines), and Cagiva (scooters). 'Honda's annual spend on R & D is more than my turnover,' noted Rahul Bajaj. His son, Sanjeev Bajaj, was working to improve the company's supply chain management. A marketing executive was lured from TVS Suzuki to help push the new cycles. Several new designs and a dozen upgrades of existing scooters came out in 1998 and 1999. These, and a surge in consumer confidence, propelled Bajaj to sales records, and it began to regain market share in the fast-growing motorcycle segment. Sales of three-wheelers fell as some states, citing traffic and pollution concerns, limited the number of permits issued for them. In late 1999, Rahul Bajaj made a bid to acquire ten percent of Piaggio for $65 million. The Italian firm had exited a relationship with entrepreneur Deepak Singhania and was looking to reenter the Indian market, possibly through acquisition. Piaggio itself had been mostly bought out by a German investment bank, Deutsche Morgan Grenfell (DMG), which was looking to sell some shares after turning the company around. Bajaj attached several conditions to his purchase of a minority share, including a seat on the board and an exclusive Piaggio distributorship in India. In late 2000, Maruti Udyog emerged as another possible acquisition target. The Indian government was planning to sell its 50 percent stake in the automaker, a joint venture with Suzuki of Japan. Bajaj had been approached by several foreign car manufacturers in the past, including Chrysler (subsequently DaimlerChrysler) in the mid-1990s. Employment fell from about 23,000 in 1995-96 (the year Bajaj suffered a two-month strike at its Waluj factory) to 17,000 in 19992000. The company planned to lay off another 2,000 workers in the short term and another 3,000 in the following three to four years. Principal Subsidiaries: Bajaj Auto Finance Ltd.; Bajaj Auto Holdings Ltd.; Bajaj Electricals Ltd.; Bajaj Hindustan Ltd.; Maharashtra Scooters Ltd.; Mukand Ltd. 9
  10. 10. Principal Competitors: Honda Motor Co., Ltd.; Suzuki Motor Corporation; Piaggio SpA. COMPANY PROFILE Bajaj Auto Ltd. is the largest exporter of two and three wheelers. With Kawasaki Heavy Industries of Japan, Bajaj manufactures state-of-theart range of two-wheelers. The brand, Pulsar is continually dominating the Indian motorcycle market in the premium segment. Its Discover DTSi is also a successful bike on Indian roads. Quick Facts Founder Jamnalal Bajaj Year of Establishment 1926 10
  11. 11. Industry Automotive - Two & Three Wheelers Business Group The Bajaj Group Listings & its codes BSE - Code: 500490; NSE - Code: BAJAJAUTO Presence Distribution network covers 50 countries. Dominant presence in Sri Lanka, Bangladesh, Columbia, Guatemala, Peru, Egypt, Iran and Indonesia. Joint Venture Kawasaki Heavy Industries of Japan Registered & Head Office Akurdi Pune - 411035 India Tel.: +(91)-(20)-27472851 Fax: +(91)-(20)-27473398 Works Akurdi, Pune 411035 • Bajaj Nagar, Waluj Aurangabad 431136 • Chakan Industrial Area, Chakan, Pune 411501 • E-mail rahulbajaj@bajajauto.co.in Website www.bajajauto.com Segment and Brands Products Brands Motorcycles 4S 4S Champion Bajaj Avenger Bajaj CT 100 Bajaj Discover Bajaj Platina Bajaj Pulsar Bajaj Pulsar DTSi Bajaj Sonic 11
  12. 12. Bajaj Wind 125 Bajaj XCD 125 Caliber Caliber115 Kawasaki Bajaj Eliminator KB RTZ Scooters Boxer KB100 KB125 Bajaj Chetak Bajaj Kristal Dtsi Bajaj Wave Since 1986, there is a technical tie-up of Bajaj Auto Ltd. with Kawasaki Heavy Industries of Japan to manufacture state-of-art range of latest two-wheelers in India. The JV has already given the Indian market the KB series, 4S and 4S Champion, Boxer, the Caliber series, and Wind125. Kawasaki Heavy Industries is a Fortune 500 company with a turnover of USD 10 billion (Rs. 45,840 crore). It has crafted new technologies for more than hundred years. The technologies of KHI have redefined space systems, aircrafts, jet engines, ships, locomotive, energy plants, automation system, construction machinery, and of course high reliability two-wheelers. KHI has given the world its legendary series of 600-1200cc Ninja and 1600 Vulcan bikes. Straight from its design boards, the Kawasaki Bajaj Eliminator, India's first real cruiser bike, redefines the pleasure of "biking" in looks as well as performance. The group’s flagship company, Bajaj Auto, is ranked as the world’s fourth largest two- and three- wheeler manufacturer and the Bajaj brand is well-known in over a dozen countries in Europe, Latin America, the US and Asia. Founded in 1926, at the height of India's movement for independence from the British, the group has an illustrious history. The integrity, dedication, resourcefulness and determination to succeed which are characteristic of the group today, are often traced back to its birth during those days of relentless devotion to a common cause. Jamnalal Bajaj, founder of the group, was a close confidant and disciple of Mahatma Gandhi. In fact, Gandhiji had adopted him as his son. This 12
  13. 13. close relationship and his deep involvement in the independence movement did not leave Jamnalal Bajaj with much time to spend on his newly launched business venture. His son, Kamalnayan Bajaj, then 27, took over the reins of business in 1942. He too was close to Gandhiji and it was only after Independence in 1947, that he was able to give his full attention to the business. Kamalnayan Bajaj not only consolidated the group, but also diversified into various manufacturing activities. The present Chairman of the group, Rahul Bajaj, took charge of the business in 1965. Under his leadership, the turnover of the Bajaj Auto the flagship company has gone up from Rs.72 million to Rs.100.76 billion (USD 2.3 billion), its product portfolio has expanded from one to and the brand has found a global market. He is one of India’s most distinguished business leaders and internationally respected for his business acumen and entrepreneurial spirit. . COMPANY FLASHBACK 'Inspiring Confidence,' the tagline, has build up confidence, through excitement engineering, not only to domestic consumers but also internationally. Established just eight decades back in 1926 by Jamnalal Bajaj, the company has been vested with India's largest exporter of two and three wheelers, 196,710 units in 2004-05, a great 26 per cent jump over the previous year. Bajaj Auto Ltd. sales have increased by approximately 21 per cent in the year 2004-05, which exceeds Rs 65.4 billion, a record in the history of the company. The gross operating profit stands at Rs. 9.3 billion, again a record. The profits after tax of the BAL are close to Rs. 7.7 billion, and the pre-tax return on operating capital is at an impressive 80 per cent. The strength of the company is its quality products, excellence in engineering and design, and its ability to delight the customers. The 13
  14. 14. Pulsar, introduced in November 2004, is continually dominating the premium segment of the motorcycle market, helping to maintain the market superiority. Discover DTSi, one more successful bike on Indian roads, is in the 'value' segment of the motorcycle market. It incorporates a high degree of power with fuel efficiency of a 100 cc motorcycle. BAL is committed to prevention of pollution, continual improvement of environment performance and compliance with all environmental legislation and regulations. They always believe in providing the customer 'value for money' and keeps an special eye upon quality, safety, productivity, cost and delivery. Bajaj Auto is a major Indian automobile manufacturer. It is India's largest and the world's 4th largest two- and three-wheeler maker. It is based in Pune, Maharashtra, with plants in Akurdi and Chakan (near Pune),Waluj (near Aurangabad) and Pantnagar in Uttaranchal. Bajaj Auto makes and exports motorscooters, motorcycles and the auto rickshaw. The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946 Over the last decade, the company has successfully changed its image from a scooter manufacturer to a two wheeler manufacturer. Its product range encompasses Scooterettes, Scooters and Motorcycles. Its real growth in numbers has come in the last four years after successful introduction of a few models in the motorcycle segment. The company is headed by Rahul Bajaj who is worth more than US$1.5 billion 14
  15. 15. OBJECTIVES THE MAIN OBJECTIVE TO STUDY THIS PROJECT IS TO KNOW ABOUT THE DIFFERENT STRATEGIES OF BAJAJ LTD. THE MAIN OBJECTIVES IN THE MIND: o TO STUDY COMPANY PROFILE o TO STUDY THE PRODUCTS OFFERED o TO STUDY THE FINANCIAL POSITION OF BAJAJ AUTOMOBILES o TO STUDY THE DIFFERENT POLICIES o TO STUDY THE PRICE RANGE OF DIFFERENT PRODUCTS OF DIFFERENT COMPANIES. 15
  16. 16. RESEARCH METHODOLOGY Research methodology defines what the activity of research is, how to proceed, how to measure progress, and what constitutes success. AI methodology is a jumbled mess. Different methodologies define distinct schools which wage religious wars against each other. Methods are tools. Use them; don't let them use you. Don't fall for slogans that raise one above the others: ``AI research needs to be put on firm foundations;'' ``Philosophers just talk. AI is about hacking;'' ``You have to know what's computed before you ask how.'' To succeed at AI, you have to be good at technical methods and you have to be suspicious of them. For instance, you should be able to prove theorems and you should harbor doubts about whether theorems prove anything. Most good pieces of AI delicately balance several methodologies. For example, you must walk a fine line between too much theory, possibly irrelevant to any real problem, and voluminous implementation, which can represent an incoherent munging of ad-hoc solutions. You are constantly faced with research decisions that divide along a boundary between ``neat'' and ``scruffy.'' Should you take the time to formalize this problem to some extent (so that, for example, you can prove its intractability), or should you deal with it in its raw form, which illdefined but closer to reality? Taking the former approach leads (when successful) to a clear, certain result that will usually be either boring or at least will not Address the Issues; the latter approach runs the risk of turning into a bunch of hacks. Any one piece of work, and any one person, should aim for a judicious balance, formalizing subproblems that seem to cry for it while keeping honest to the Big Picture. 16
  17. 17. Some work is like science. You look at how people learn arithmetic, how the brain works, how kangaroos hop, and try to figure it out and make a testable theory. Some work is like engineering: you try to build a better problem solver or shape-from algorithm. Some work is like mathematics: you play with formalisms, try to understand their properties, hone them, prove things about them. Some work is example-driven, trying to explain specific phenomena. The best work Two-wheelers Ungeared - 100 cc Motorcycles - 100 to 200 cc combines all these and more. Methodologies are social. Read how other people attacked similar problems, and talk to people about how they proceeded in specific cases. Research Methodology can be done by two methods 1. Primary Data 2. Secondary Data DATA COLLECTION Products 17
  18. 18. Three-wheelers (both passenger and goods carriers) 175 cc Petrol / CNG / LPG Four Stroke 150 cc Petrol / CNG / LPG Two Stroke 416 cc Diesel  Bikes 18
  19. 19. 19
  20. 20. 20
  21. 21.  Scooters 21
  22. 22.  Three wheelers 1. Goods carriers 22
  23. 23. 2. Passenger Carriers 23
  24. 24. 24
  25. 25. 25
  26. 26. 26
  27. 27. 27
  28. 28. Policies 28
  29. 29. 29
  30. 30. Group Companies Bajaj Auto is the flagship of the Bajaj group of companies. The group comprises of 35 companies and was founded in the year 1926. The companies in the group are: Bajaj Auto Ltd. Mukand International Ltd. Mukand Ltd. Mukand Engineers Ltd. Bajaj Electricals Ltd. Mukand Global Finance Ltd. Bajaj Hindustan Ltd. Bachhraj Factories Pvt. Ltd. Maharashtra Scooters Ltd. Bajaj Consumer Care Ltd. Bajaj Auto Finance Ltd. Bajaj Auto Holdings Ltd. Hercules Hoists Ltd. Jamnalal Sons Pvt. Ltd. Bajaj Sevashram Pvt Ltd. Bachhraj & Company Pvt. Ltd. Hind Lamps Ltd. Jeevan Ltd. Bajaj Ventures Ltd. The Hindustan Housing Co Ltd. Bajaj International Pvt Ltd. Baroda Industries Pvt Ltd. Hind Musafir Agency Pvt Ltd. Stainless India Ltd. Bajaj Allianz General Insurance Company Ltd. Bombay Forgings Ltd. Bajaj Allianz Life Insurance Company Ltd. Bajaj Holdings & Investment Limited Bajaj Finserv Limited Bajaj Financial Solutions Limited Bajaj Financial Solutions Ltd. Bajaj Allianz Financial Distributors Ltd. Sanraj Nayan Investments Pvt. Ltd. P T Bajaj Auto Indonesia (PTBAI) Bajaj Auto International Holdings BV, Netherlands (BAIBHV). 30
  31. 31. Product For September 2008 Upto September For September 2008 2007 Upto September 2007 Motorcycles 217,365 1,120,108 204,152 1,025,558 Other 2 Wheelers 1,129 6,965 2,056 13,909 Total 2 Wheelers 218,494 1,127,073 206,208 1,039,467 Three Wheelers 26,887 133,062 26,288 146,217 Grand Total 245,381 1,260,135 232,496 1,185,684 31
  32. 32. Sales in number for the year 2008 1st October 2008 Product 2006-07 2007-08 Growth Sales in numbers for the month of October 2008 1st November 2008 Product Motorcycles Other 2 Wheelers Total 2 Wheelers Three Wheelers Grand Total For October 2008 163,850 Upto October For October 2008 2007 1,283,958 248,307 Upto October 2007 1,273,865 1,627 8,592 1,868 15,777 165,477 1,292,550 250,175 1,289,642 26,363 191,840 159,425 1,451,975 28,001 278,176 174,218 1,463,860 32
  33. 33. S.W.O.T ANALYSIS OF BAJAJ SWOT Analysis is a tool used for understanding an organization's strengths, weaknesses, opportunities and threats. The SWOT Analysis tool can be used in identifying an organization's strengths (S) and weaknesses (W), and examining the opportunities (O) and threats (T) it is facing. The outcome from a SWOT Analysis enables organizations to focus on strengths, minimize weaknesses, address threats, and take the greatest possible advantage of opportunities available. Strengths: Our members value the professional designation. We have a lower course fee structure than similar programs. We provide good customer service. Our instructors are highly-regarded in the profession. We have a small staff and low overhead. Weaknesses: We are slow to make decisions and adapt to changes that affect the profession. The professional designation is rarely included as a condition of employment. We are overly dependent on key volunteers who developed and teach our certification courses. We do not have the resources to research the market and promote the designation. Opportunities: Our business sector is expanding, with many future opportunities for success Our local council wants to encourage local businesses with work where possible 33
  34. 34. Our competitors may be slow to adopt new technologie Threats: Will developments in technology change this market beyond our ability to adapt? A small change in focus of a large competitor might wipe out any market position we achieve INFRASTRUCTURE OF BAJAJ Plants Bajaj Auto's three plants at Akurdi, Waluj and Chakan in Maharashtra and one plant at pant Nagar in Uttranchal, western India, produced 1,814,799 vehicles in 2004-05. Akurdi Geared scooters, ungeared scooters, CT100 and Discover Waluj Bajaj - Kawasaki range of motorcycles and three-wheelers Chakan Bajaj motorcycles - Pulsar and Discover Pant Bajaj motorcycles – Platina Nagar Plant Locations Bajaj Auto plants are located at: Mumbai - Pune Road, Akurdi, Pune 411 035 Bajaj Nagar, Waluj, Aurangabad 431 136 MIDC, Plot No A1, Mahalunge Village, Chakan 410 501 Dist. Pune Plot No. 2, Sectoe 10 Phase -II - E, Pant Nagar, Sidcul, Rudrapur Dist. Udhamsingh Nagar Uttranchal 34
  35. 35. MANAGEMENT PROFILE Rahul Bajaj Madhur Bajaj Rajiv Bajaj Sanjiv Bajaj Abraham Joseph Pradeep Shrivastava S Sridhar R C Maheshwari Rakesh Sharma C P Tripathi N H Hingorani Kevin P D'sa S Ravikumar K Srinivas J. Sridhar Chairman Vice Chairman Managing Director Executive Director Vice President (Research & Development) President (Engineering) CEO (2WH) CEO (Commercial Vehicles) CEO (International Business) Vice President (Corporate) Vice President (Commercial) Vice President (Finance) Vice President (Business Development) Vice President (Human Resources) Company Secretary HR BAJAJ Recruitment Policy Bajaj Auto is an equal opportunity employer. Selection is based strictly on individual merit. A large number of our recruits are fresh engineers and MBAs. Natural attrition is usually taken care of by promotions and horizontal movements within the organisation to provide career opportunities for 35
  36. 36. our employees. Occasionally, specific skill-sets may warrant lateral recruitment. Entry level Recruitment Engineers: We recruit Engineering Graduates from reputed institutes from all over India. Bajaj Auto enjoys an excellent reputation with all National Institutes of Technology (NITs) and is among the preferred employers for on-campus recruitment. The selection process comprises a written test in technical, analytical and logical reasoning, group discussion and personal interview. Management Graduates: We recruit management graduates from reputed management institutes all over India. The selection procedure comprises a written test in analytical and logical reasoning, group discussion and personal interview. All entry-level selections are made through on-campus recruitment only. After recruitment, new entrants undergo a thorough induction-training programme before their placement in the company. Departments are allocated on the basis of the individual recruit’s aptitude and our requirements. Usually, after completing two years of service they are provided opportunities for job-rotation. Work Culture Our work culture supports and enhances our brand. The Bajaj brand signifies excitement. Bajaj strives to inspire confidence through excitement engineering. The culture is built on core values of learning, innovation, perfection, speed and transparency. Facilitative leadership style helps in developing leaders at all levels and establishes accountability. 36
  37. 37. Our Brand Values We live our brand by its values of Innovation, Perfection, and Speed. Bajaj will be distinctly ahead through excitement engineering. Innovation is how we create the future. It is a value that provokes us to reach beyond the obvious in pursuit of that which exceeds the ordinary. Perfection It is how we set new standards. It is a value that exhibits our determination to excel by endeavouring to establish new benchmarks all the time. Speed Speed is how we convey clear conviction. It is a value that keeps us sharply responsive, mirroring our commitment towards our goals and processes. Competency Building Bajaj Auto has a very flat organization structure with three management levels. Each level represents a specific role and hence needs relevant competencies. Competency building at Bajaj Auto is a combination of development for current and future roles. 37
  38. 38. We cater to these needs by using interventions like development centers, need-based training and job-rotation plans. We use different methods of imparting training like lectures, group-discussions, roleplays, seminars, outbound training, assignments and on-the-job tasks. Compensation Philosophy We strive to be amongst the top quartile in our compensation structure. Competence and performance are the key drivers of our compensation policy. A significant part of the compensation is in the form of variable pay linked to the individual’s and the organization’s performance. FINDINGS Highlights for 2007-08: Bajaj Auto stand-alone • Net sales (net of excise duty) decreased by 6.8% to Rs.86.63 billion. • Exports increased by 20.8% to Rs.20.48 billion. • Motorcycle sales by volume was 2.14 million in 2007-08—a fall of 10% over the previous year, versus overall market decline. Motorcycles: Domestic The two-wheeler market is dominated by motorcycles, accounting for over 81% of overall sales. Bajaj Auto, too, focuses on motorcycles in the two-wheeler segment. As shown in Chart A, in 2007-08, the industry’s overall sales of Twowheelers declined by 4.8% to 8.07 million units. Motorcycles sales fell by 7.8% from 7.1 million units to 6.54 million units. 38
  39. 39. With industry as a whole witnessing a fall in motorcycle sales, so too did Bajaj Auto. Table 1 gives the data. The table also shows that while overall motorcycle sales fell by 7.8% in 2007-08 over the previous year, Bajaj Auto’s sales declined further. In 2007-08, the Company sold 2.14 million motorcycles — which was 10.1% less than what it sold in 2006-07. Consequently, Bajaj Auto’s share in the market fell by 0.8 percentage points, from 33.5% in 2006-07 to 32.7% in 2007-08. The somewhat greater fall of the Company’s motorcycle sales vis-à-vis the industry needs explaining. SUGGESTIONS  The company should concentrate more on sales and marketing department so that more and more products can be sold out.  Advertisements should be the best method to advertise the products and popular among the public.  Cheaper products (Motorcycles) should be introduced by the company so that it can reach the middle class public.  Transparency should be made in between the product details and the original product sold to the customers.  Company –customer ratio should be maintained.  Company should add more features in their products. 39
  40. 40.  Company should launch bikes with less cost & best average.  Company should do modifications in their products Basicallyin two wheelers.  Company should increase its production .  Company should sell its products comparatively at a low price.  Company should improve its after sales services.  Company should offer more products to the customer in Comparatively less time. CONCLUSION • Bajaj auto is a major Indian Automobile manufacturer. It is India's largest and the world's 4th largest two- and three-wheeler maker. With kawasaki heavy industries of japan, bajaj manufactures state-of-the-art range of two-wheelers. The brand, pulsar is continually dominating the indian motorcycle market in the premium segment. Its discover dtsi is also a successful bike on indian roads. • BAL is committed to prevention of pollution, continual improvement of environment performance and compliance with all environmental legislation and regulations. They always believe in providing the customer 'value for money' and keeps an special eye upon quality, safety, productivity, cost and delivery. 40
  41. 41. It incorporates a high degree of power with fuel efficiency of a 100 cc motorcycle. • In this project primary data is being used. The questionnaire is being filled up by 25 persons & according to them bajaj is a good automobile industry & should add more features in their products & increase their production so that the company can satisfy their needs successfully. • So it is concluded that bajaj auto is a good automobile industry but should do more to satisfy the wants of customers. • The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance. ANNEXURE Questionnaire Please put tick mark in the brackets or put number where ever is necessary. Name……………………………………………………. Address …………………………………………………. 41
  42. 42. …………………………………………………. Age …………………………………. Gender: Male ( ) Female( ) Total number of members in the family…………… No. of male members ……………………………………………………… How many members in your family have vehicles? ……………………………………………………….. Monthly family income? Below 50000 ( ) 50000-2 lakh ( lakh – 4 lakh ) Above 4 lakh ( 1. ( Which bajaj vehicle do you prefer? Two Wheeler ( ) Three Wheeler ( ) 42 ) )
  43. 43. 2. Which of our two wheeler vehicle do you like the most? ………………………………………………………… 3. Which of our three wheeler vehicle do you like the most? ……………………………………………………………. 4. Do you like our vehicles i Because there price is low ( ) ii Because you have a liking for them ( ) 5. Do you feel that our vehicles cost too much? Yes ( ) 6. No ( ) Do you feel that we provide better services? Yes ( ) 7. No ( ) Do you think that we satisfy your needs successfully? 43
  44. 44. Yes ( ) 8. No ( ) Are you satisfy with the average in the vehicles? Yes ( ) No ( ) BIBLIOGRAPHY Books: Marketing Management – By Philip Kotler Marketing Management- By C.B.Gupta Magazines: Auto magazine  Over drive magazine  Business today Websites: www.bajajauto.com  www.google.com  www.msn.com Newspapers: Times of India 44
  45. 45.  The Indian Express 45

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