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Sales and Marketing of BAJAJ auto Grand Project By Najeeb & Mushique

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Sales and Marketing of BAJAJ auto Grand Project By Najeeb & Mushique
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Sales and Marketing of BAJAJ auto Grand Project By Najeeb & Mushique

  1. 1. 0 ‘SALES AND MARKETING OF BAJAJ AUTOMOBILES’ A Project Study Report Submitted to ‘Prof. Dipak Hadiya’ In Partial fulfillment of requirement of two years Master of Business Administration programme of Gujarat University, Ahmedabad Submitted By ‘Abdul Mahboob Shujaee - 11301’ ‘Najeebullah Hemat - 11327’ MBA Batch (2013-15) B. K. School of Business Management Gujarat University, Ahmedabad
  2. 2. 1 B. K. School of Business Management Gujarat University Ahmedabad CERTIFICATE This is to certify that ‘Mr. Abdul Mahboob Shujaee’ and ‘Mr. Najeebullah Hemat’, students of Full Time MBA (2013-15 batch) at B. K. School of Business Management, Gujarat University, Ahmedabad have prepared a Project Study Report on “ SALES AND MARKETING OF BAJAJ AUTOMOBILES” in partial fulfillment of two years full- time MBA Programme of Gujarat University. This project work has been undertaken under the guidance of ‘Prof. Dipak Hadiya, core faculty at B. K. School of Business Management, Gujarat University, Ahmedabad. This is also to ascertain that this project has been prepared only for the award of MBA degree and has not been submitted for any other purpose. ‘Prof. Dipak Hadiya’ Director Ph-D Faculty Date: Place: Ahmedabad
  3. 3. 2 UNDERTAKING FROM STUDENTS This is to confirm that the information contained in the Project Report titled ‘Sales and marketing of Bajaj automobiles’ has been prepared by us on the basis of data collected by us from various secondary as well as primary sources. We would be solely responsible for piracy or plagiarism of any information included in this report. Abdul Mahboob Shujaee Najeebullah Hemat B. K. School of Business Management B. K. School of Business Management MBA Batch (2013-15) MBA Batch (2013-15) Date: Place: Ahmedabad
  4. 4. 3 TABLE OF CONTENTS Page no. CHAPTER 1 Company History 05 Company Profile 09 Company Flashback 12 CHAPTER 2 Objectives 13 Significance of study 14 Scope of study 15 Research Methodology 16 CHAPTER 3 Data Collection o Products 18 o Key Policies 25 o Group Companies 26 o Segment wise results 28 o Sales 29 o Swot analysis 30 CHAPTER 4 Infrastructure of Bajaj 31 Management Profile 31 HR of Bajaj 32 Brand values 33 CHAPTER 5 Data Analysis 34 Statistical Analysis 46 Project Findings 50 Other findings 51 Suggestions 57 CHAPTER 6 Conclusion 58 CHAPTER 7 Annexure 59 CHAPTER 8 Bibliography 63
  5. 5. 4 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 us with an opportunity to work with Bajaj Motors and giving necessary directions on doing this project to the best of our abilities. We are highly indebted to M.Salim Qureshi , Area General Manger(Bajaj Motors) and company project guide, who has provided us with the necessary information and also for the support extended out to us in the completion of this report and his valuable suggestion and comments on bringing out this report in the best way possible. We are grateful to Dipak Hadiya, a faculty member of BK School of Business Administration, for providing us sound guidance for the successful completion of the report. Thanking You
  6. 6. 5 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: Bajaj Auto is founded. 1960: Rahul Bajaj becomes the Indian licensee for Vespa scooters. 1977: Technical collaboration with Piaggio ends. 1984: Work begins on a second plant. 1998: Bajaj plans to build its third plant to meet demand. 2000: 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. 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
  7. 7. 6 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 three-wheeled 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 two-wheelers 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 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 mini-motorcycles amounted to $57 million. Work on a new plant at Waluj, Aurangabad commenced in January 1984.
  8. 8. 7 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 tractor-trailers. 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 two-wheelers, behind Japan's Honda, Suzuki, and Kawasaki. New models included the Bajaj Classic and the Bajaj Super Excel. Bajaj also signed 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
  9. 9. 8 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 1997-98 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 (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 1999-2000. 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. Principal Competitors: Honda Motor Co., Ltd.; Suzuki Motor Corporation; Piaggio SpA.
  10. 10. 9 COMPANY PROFILE Bajaj Auto Ltd. is the largest exporter of two and three wheelers. 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. Quick Facts Founder Jamnalal Bajaj Year of Establishment 1926 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
  11. 11. 10 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 Bajaj Wind 125 Bajaj XCD 125 Boxer Caliber Caliber115 Kawasaki Bajaj Eliminator KB RTZ KB100 KB125 Scooters 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 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
  12. 12. 11 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. .
  13. 13. 12 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 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 motor scooters, 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. 14. 13 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 THE PRODUCTS OFFERED. o TO STUDY THE PRICE RANGE OF DIFFERENT PRODUCTS OF DIFFERENT COMPANIES. o TO STUDY THE MARKETING IMPACT ON CUSTOMERS AND SALES. o TO STUDY CUSTOMER PREFERRENCES TOWARDS DIFFERENT PRODUCTS OFFERED BY BAJAJ AUTOMOBILES. o TO STUDY CUSTOMER SATISFACTION TOWARDS PRICE QUALITY, MILAGE AND BRAND. o THE MAIN OBJECTIVE IS TO FIND OUT MARKETING STRATEGY OF “BAJAJ AUTOMOBILES” WHERE WE FOUND DIFFERENT ATTRIBUTE OF MARKETING STRATEGIES SUCH AS, ROAD DEMONSTRATION, BRAND LOYALTY, MARKET SEGMENTATION, BRAND UPGARDATION OF DIFFERENT PRODUCTS OF COMPANY WHICH INCREASE THE MARKET SHARE OF THE COMPANY IN PARTICULAR FIELD.
  15. 15. 14 SIGNIFICANCE OF THE STUDY  For any business venture, marketing and sales go hand in hand. Opportunities come and go but business comes from the ones, which are handled properly in terms of leads.  Leads for any new opportunity are very important for it to turn out a profitable venture.  Marketing and sales work hand in hand for leads.  Promotion plays a very important role in both the departments. Promotion helps us to market a product properly and also helps in increasing the sale of the product as compared to competitors. MANAGERIAL USEFULNESS OF THE STUDY  Helps to have sale experience  Helps to deal with different customers  Helps to overcome the objections of the customers  Helps to understand the problems of agents in a broader prospect  It provides a platform where managerial role can be played effectively and efficiently.
  16. 16. 15 SCOPE OF THE STUDY  Deep insights would give me the clear knowledge of strategies adopted and which would make me a better marketing professional.  Important from a consultant prospective finding loopholes in marketing strategy of the company if any.  The basic thing which is needed for project of Bajaj automobile is to increase market share, increase brand loyalty by providing: 1. Value for money vehicles 2. To implement best technology 3. To provide better customer service 4. To make quality products.
  17. 17. 16 RESEARCH METHODOLOGY The study conducted to achieve the aforesaid objectives will be both exploratory and conclusive research in nature. It also involves online personal interviews based on the questionnaire format. DATA COLLECTION METHODS:-  Primary source  Secondary source Primary sources:- The data required for the study is based on: 1. Personal interviews based on pre-decided format of structured undisguised questionnaire. Secondary sources:- The secondary data consists of information collected from:  Websites  Published data on books and magazines DATA ANALYSIS TOOLS:-  Use of charts and graphs for analysis  Statistical analysis Questionnaire design formulation:-  We asked questions to different Bajaj customers and potential buyers as well. We just wanted to gather information about what they feel to be a Bajaj vehicle (two wheelers & three wheelers) owner and how much satisfied are they with their vehicle performance and after sales services.
  18. 18. 17  We asked both open and close ended questions to the customers. Our sampling size was 155 people which include present owners of Bajaj vehicle and potential buyer. Survey Area: -We collected all information from various Bajaj showrooms and service centers (Ahmedabad ONLY) Time frame :- 6 weeks Research design:- We have used following research design in making our project:- EXPLORATORY RESEARCH DESIGN It seeks to discover new relationships between several facts.It discover ideas and insight. The major purpose of the exploratory research design is to do the clear identification of the problems. Bigger problems are broken in smaller segments. Exploratory study is the initial stage of marketing research as it is in a developing stage. Exploratory research helps in understanding explanations of various problems of marketing mix. The exploratory study may be used to clarify concepts and causes of problems It is also useful to test the applicability of new policies. It is dynamic and changes with new ideas and concepts. CONCLUSIVE RESEARCH DESIGN It is of two types:-  Descriptive research  Experimental design It helps the marketing executive to arrive at a suitable decision from the various alternative decisions. The various alternative conclusions and selecting the most suitable conclusion may be done by it’s one of the forms, Descriptive research design. In this research design ,only a partial situation is clarified but in case of experimental research design a alternative is selected. Therefore, the experimental research design is considered an important conclusive research design.
  19. 19. 18 DATA COLLECTION  Products  Bikes Three-wheelers (both passenger and goods carriers) 175 cc Petrol / CNG / LPG Four Stroke 150 cc Petrol / CNG / LPG Two Stroke 416 cc Diesel
  20. 20. 19
  21. 21. 20
  22. 22. 21  Scooters  Three wheelers 1. Goods carriers
  23. 23. 22 2. Passenger Carriers
  24. 24. 23
  25. 25. 24
  26. 26. 25  Policies
  27. 27. 26 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). -
  28. 28. 27 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
  29. 29. 28 Product 2006-07 2007-08 Growth SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED (Rs. In Lakhs) QUARTER ENDED 30.09.2013 (Unaudited) QUARTER ENDED 30.09.2012 (Unaudited) HALF YEAR ENDED 30.09.2013 (Unaudited) HALF YEAR ENDED 30.09.2012 (Unaudited) YEAR ENDED 31.03.2013 (Audited) Segment Revenue Automotive 254843 236182 485919 447047 904617 Investment 2210 2595 5088 5928 12267 Total 257073 238777 491007 452975 916884 Segment Profit/(Loss) before Tax and Interest Automotive 24968 33351 48293 57425 101722 Investment 2210 2595 5088 5928 12267 Total 27178 35946 53381 63353 113989 Less: Interest 587 136 679 142 516 Total Profit Before Tax 26591 35810 52702 63211 113473 Capital Employed Automotive 140014 148759 140014 148759 136867 Investment 171039 164960 171039 164960 190020 Unallocable (2842) (4965) (2842) (4965) (33596) Total 308211 308754 308211 308754 293291
  30. 30. 29 Sales in numbers for the month of October 2013 1st November 2013 Motorcycles 163,850 1,283,958 248,307 1,273,865 Other 2 Wheelers 1,627 8,592 1,868 15,777 Total 2 Wheelers 165,477 1,292,550 250,175 1,289,642 Three Wheelers 26,363 159,425 28,001 174,218 Grand Total 191,840 1,451,975 278,176 1,463,860
  31. 31. 30 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 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
  32. 32. 31 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 Nagar Bajaj motorcycles – Platina 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 MANAGEMENT PROFILE Rahul Bajaj Chairman Madhur Bajaj Vice Chairman Rajiv Bajaj Managing Director Sanjiv Bajaj Executive Director
  33. 33. 32 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 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. Abraham Joseph Vice President (Research & Development) Pradeep Shrivastava President (Engineering) S Sridhar CEO (2WH) R C Maheshwari CEO (Commercial Vehicles) Rakesh Sharma CEO (International Business) C P Tripathi Vice President (Corporate) N H Hingorani Vice President (Commercial) Kevin P D'sa Vice President (Finance) S Ravikumar Vice President (Business Development) K Srinivas Vice President (Human Resources) J. Sridhar Company Secretary
  34. 34. 33 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. 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. 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, role-plays, 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.
  35. 35. 34 DATA ANALYSIS 1. Vehicle preferences of the customer:- Two wheelers 136 88.3% Three wheelers 34 22.1% Analysis:- The above chart shows that more than 85% of the customers are willing to have Bajaj’s two wheeler as their first vehicle in the family. This proves that their brand preferences are more tended toward Bajaj’s two wheeler products compare to three wheelers.
  36. 36. 35 2. Quality assurance:- Excellent 33 21.4% Very good 75 48.7% Good 35 22.7% Average 7 4.5% Poor 4 2.6% Analysis:- Customer’s analysis report tells that about 90% of the people says that Bajaj driving is good because of machinery used in the vehicle components. But reaming people says that they don’t find comfortable with Bajaj while driving.
  37. 37. 36 3. Price range satisfaction:- Yes 116 75.3% No 38 24.7% Analysis:- Majority of the people are satisfied with price range of Bajaj where they can’t afford the vehicle but they can finance the vehicle.
  38. 38. 37 4. Bajaj as personality vehicles:- Yes 98 63.6% No 56 36.4% Analysis:- While buying Bajaj vehicle more than 95% of people think that it suits to their personality which upgrade their social symbol in the society especially in women.
  39. 39. 38 5. Bajaj’s two wheeler choice:- Pulsar 75 48.7% Avenger 76 49.4% Discover 36 23.4% Platina 20 13% Other 0 0% Analysis:- Well, according to the records of the company, Pulsar is the most demanded two wheeler, but the above chart from our survey shows that the Avenger bike is more preferable among the other two wheeler products of Bajaj.
  40. 40. 39 6. Bajaj’s three wheeler choice:- Auto rickshaw 45 29.2% Daihatsu midget 43 27.9% None 75 48.7% Other 0 0% Analysis:- It seems that more of the customers don’t want three wheelers as the first vehicle of their family. But more than 50% who are willing to use them for the business purpose are preferring Auto rickshaw and Daihatsu midget.
  41. 41. 40 7. Color choice:- White 40 26% Blue 48 31.2% Yellow 38 24.7% Black 66 42.9% Red 37 24% Other 0 0% Analysis:- Mainly people make choice for colors which suits their personality. But black owns the Market.
  42. 42. 41 8. Customer’s liking features of Bajaj vehicles:- Because their prices are low 87 56.5% Because they are having the best quality 63 40.9% Other 4 2.6% Analysis:- While purchasing, most of the people thinks that the vehicles are having low price advantage while others are more concerned with the vehicle’s better quality.
  43. 43. 42 9. Costliness:- Analysis:- It is said by the by most of the customers that Bajaj vehicles are less costlier than its rival’s vehicles. And the above chart also shows that more than 10% of the customers are not even aware of the Bajaj vehicle’s costs. Yes 57 37% No 75 48.7% I don't know 22 14.3%
  44. 44. 43 10. Bajaj’s service:- Yes 121 78.6% No 33 21.4% Analysis:- It is said that more than 75% of Bajaj dealers are providing better services to their customers, while remaining of them have mixed thoughts about the service provision of Bajaj dealers.
  45. 45. 44 11. Bajaj vehicle average satisfaction:- Yes 102 66.2% No 52 33.8% Analysis:- This analysis shows that the Bajaj vehicles average is much better than the other rival’s vehicles. This is because they run very much fuel savings, not in highways only but in cities as well. This implies that Bajaj is providing better machines for its vehicles.
  46. 46. 45 12. Marketing strategy of Bajaj:- Analysis:- Marketing strategy of Bajaj upgrades the brand loyalty of Bajaj’s vehicles where the process of strategy consist of market share, brand promotion among the people through road demonstration bike-expos and show rooms. Excelent 29 18.8% Very good 63 40.9% Good 45 29.2% Average 11 7.1% Poor 6 3.9%
  47. 47. 46 STATISTICAL ANALYSIS Regression analysis: SUMMARY OUTPUT Regression Statistics Multiple R 0.423998 R Square 0.179774 Adjusted R Square 0.174378 Standard Error 0.904579 Observations 154 ANOVA df SS MS F Significance F Regression 1 27.26029 27.26029 33.31479921 1.43E-01 Residual 152 124.3761 0.818264 Total 153 151.6364 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 1.352436 0.189753 7.127339 1.43E-01 0.977541269 1.72733 Satisfied with the quality assurance ? 0.463467 0.080297 5.771897 0.2426427 0.304824409 0.62211
  48. 48. 47
  49. 49. 48 Residual and probability value: Interpretation:  Here, the value of R square is 0.179774 which not very significant, which means that the relationship between dependent and independent is not correlated, which means that the relationship between independent variable and dependent variable having negative correlation.  And out of 154 number of observation, standard error is 0.904579, which is very low, thus variance between the mean and observation is very less.  Significance F here is only 0.143, which is not significant, and there is 14.31% chances are there that the value will be because of chance, thus, regress value won’t be predictive in nature which is helpful in bringing more certainty to the research.  The residual value here shows the error (or disturbance) of an observed value and the deviation of the observed value from the (unobservable) true function value, Observation Predicted Bajaj's marketing strategy while purchasing “VEHICLE” Residuals Standard Residuals Percentile Bajaj's marketing strategy while purchasing “VEHICLE” 1 2.27937 0.72063 0.799263 0.324675325 1 2 1.815903 1.184097 1.313302 0.974025974 1 3 2.742837 -0.74284 -0.82389 1.623376623 1 4 2.742837 0.257163 0.285224 2.272727273 1 5 2.742837 1.257163 1.394341 2.922077922 1 6 2.27937 -0.27937 -0.30985 3.571428571 1 7 2.27937 0.72063 0.799263 4.220779221 1 8 2.27937 -0.27937 -0.30985 4.87012987 1 9 2.27937 -0.27937 -0.30985 5.519480519 1 10 3.669771 1.330229 1.47538 6.168831169 1 11 2.27937 -0.27937 -0.30985 6.818181818 1 12 1.815903 -0.8159 -0.90493 7.467532468 1 13 2.742837 -0.74284 -0.82389 8.116883117 1 14 2.27937 -0.27937 -0.30985 8.766233766 1 15 2.742837 -0.74284 -0.82389 9.415584416 1 16 2.27937 0.72063 0.799263 10.06493506 1 17 2.27937 0.72063 0.799263 10.71428571 1 18 2.742837 0.257163 0.285224 11.36363636 1 19 2.27937 0.72063 0.799263 12.01298701 1 20 1.815903 -0.8159 -0.90493 12.66233766 1 21 2.27937 0.72063 0.799263 13.31168831 1 22 2.742837 -0.74284 -0.82389 13.96103896 1 23 1.815903 -0.8159 -0.90493 14.61038961 1 24 2.742837 0.257163 0.285224 15.25974026 1 25 1.815903 -0.8159 -0.90493 15.90909091 1 26 2.27937 -0.27937 -0.30985 16.55844156 1
  50. 50. 49 while the residual of an observed value is the difference between the observed value and the estimated function value.  And probability here the observed variable for each observation takes values which are either 0 or 5.The probability of observing a 0 or 1 in any one case is treated as depending on one or more explanatory variables. The respondents value which is close to 5 having probability close to 1, while those who shows less readiness their probability is very low. Descriptive Statistics Satisfied with the quality assurance ? Bajaj's marketing strategy while purchasing “VEHICLE” Mean 2.181818182 Mean 2.363636364 Standard Error 0.073390575 Standard Error 0.080222392 Median 2 Median 2 Mode 2 Mode 2 Standard Deviation 0.910753085 Standard Deviation 0.995533698 Sample Variance 0.829471182 Sample Variance 0.991087344 Kurtosis 0.980511647 Kurtosis 0.244477542 Skewness 0.840197689 Skewness 0.625331731 Range 4 Range 4 Minimum 1 Minimum 1 Maximum 5 Maximum 5 Sum 336 Sum 364 Count 154 Count 154 Largest(1) 5 Largest(1) 5 Smallest(1) 1 Smallest(1) 1 Confidence Level(95.0%) 0.144989709 Confidence Level(95.0%) 0.15848658 Interpretation: Descriptive statistics provides simple summaries about the sample and about the observations that have been made.  Here, mean value of both mean is 2.181818182, 2.363636364.  Where standard error for knowledge about algo-trading is very low which is only 0.0733 and 0.08022, that means the observation value is less varied with respect to mean value between the population and the sample.  Skewness and kurtosis shows the distribution of the response among the normal probability distribution curve, which distributed randomly in case of knowledge about algo-trading, while in case of readiness it is positively scattered in normal way.  Here, mode 2 & 4 shows highest number of frequency repetition, while median 2 & 2 is middle value of the responses.
  51. 51. 50 PROJECT FINDINGS  India has been the scene of some of the most frenetic deal- making, big expansion announcements, and new vehicle launches in the global auto industry  India's entire industry -- local producers and transplants -- collectively manufacture about 1.4 million vehicles a year  Bajaj auto is a major Indian Automobile manufacturer. It is India's largest and the world's 4th largest two- and three-wheeler maker. Exports increased by 20.8% to Rs.20.48 billion.  the objective of the project of increasing the market share and studying various criteria important to customers has been fulfilled from the primary and secondary data collected from various sources Bajaj Automobile can improve market share, by increasing brand loyalty, giving more ads and promotions, increasing R&D etc
  52. 52. 51 OTHER 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 2012-13—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 2012-13, 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. 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 2012-13 over the previous year, Bajaj Auto’s sales declined further. In 2012-13, the Company sold 2.14 million motorcycles — which was 10.1% less than what it sold in 2011-12. Consequently, Bajaj Auto’s share in the market fell by 0.8 percentage points, from 33.5% in 2012-13 to 32.7% in 2007-08. The somewhat greater fall of the Company’s motorcycle sales vis-à-vis the industry needs explaining. Evaluation of two wheeler industry in India Two-wheeler segment is one of the most important components of the automobile sector that has undergone significant changes due to shift in policy environment. The two- wheeler industry has been in existence in the country since 1955. It consists of three segments viz. scooters, motorcycles and mopeds. According to the figures published by SIAM, the share of two-wheelers in automobile sector in terms of units sold was about 80 per cent during 2003-¬04. This high figure itself is suggestive of the importance of the sector. In the initial years, entry of firms, capacity expansion, choice of products including capacity mix and technology, all critical areas of functioning of an industry, were effectively controlled by the State machinery. The lapses in the system had invited
  53. 53. 52 fresh policy options that came into being in late sixties. Amongst these policies, Monopolies and Restrictive Trade Practices (MRTP) and Foreign Exchange Regulation Act (FERA) were aimed at regulating monopoly and foreign investment respectively. This controlling mechanism over the industry resulted in: (a) several firms operating below minimum scale of efficiency; (b) under-utilisation of capacity; and (c) usage of outdated technology. Recognition of the damaging effects of licensing and fettering policies led to initiation of reforms, which ultimately took a more prominent shape with the introduction of the New Economic Policy (NEP) in 1985. However, the major set of reforms was launched in the year 1991 in response to the major macroeconomic crisis faced by the economy. The industrial policies shifted from a regime of regulation and tight control to a more liberalised and competitive era. Two major results of policy changes during these years in two-wheeler industry were that the, weaker players died out giving way to the new entrants and superior products and a sizeable increase in number of brands entered the market that compelled the firms to compete on the basis of product attributes. Finally, the two-¬wheeler industry in the country has been able to witness a proliferation of brands with introduction of new technology as well as increase in number of players. However, with various policy measures undertaken in order to increase the competition, though the degree of concentration has been lessened over time, deregulation of the industry has not really resulted in higher level of competition. Two wheelers in India The Two-wheeler industry is known for its inherent cyclical feature with 18 monthsof growth followed by 18 months of degrowth. The industry had outperformed thebroader market in the latter half of FY06. FY07 was a period of consolidation withthe big players capturing a larger market share among their niche segments.Thereon it continued to under perform the broader market with the exception of Q3FY09. BSE Auto Index has seen a fall of >30% in the last quarter and has hit an all time low of 2444 points which has not been seen in the past 4 years. We believe the industry is ready to pick up from a lower base, which keeps its downside capped. Sale volumes of the industry would continue to replicate a seasonal trend. Thoughthe sale volumes have witnessed a decline for more than a year, its revival would be a slow and steady process, which would be delayed on account of the unfavorable macro economic conditions and depressed consumer sentiments. On one hand the slackening growth in the GDP and IIP would put pressure on the demand factor, whereas the fall in inflation, input costs and crude prices would ease the cost constraints. We can expect the scenario of FY07 to be repeated, wherein the sales and margin would be inversely co-related. Sector incentives and government policies would determine the sector movement going forward. We are positive on the sector, as it is a cash flow positive industry with the top 3 major players having a strong foothold. Both HHML and BAL have sufficient amount of cash on their books and are already near completion in regards to
  54. 54. 53 their capex cycle. On account of the fragmentation of the industry, competition would prevail, but new entrants are unlikely to survive this cycle. We expect a slow cyclical reversal to begin from FY10. We recommend a Buy on dips on Hero Honda, Hold on Bajaj Auto and Reduce on TVS Motors. Demand drivers for the two wheeler industry On one hand, growing economic well-being reflected in rising per capital GDP is likely to make 2Ws more affordable; on the other, various fundamental drivers such as low 2W penetration (in relation to several other emerging markets), favourable demographics, 21 growing urbanization and swelling replacement demand are expected to enable the growth momentum to sustain over the medium term. Rise in GDP per Capita has increased affordability of 2W India’s per capita real GDP growth of 7% (CAGR) over the last six years (refer contributed substantially towards raising the standard of living of households, which in turn has been one of the key drivers of growth for the country’s automobile industry. However, income growth is likely to have been uneven across the different income deciles. Income at the lower end of the distribution scale, which comprises the 2W target segment11, is likely to have grown at a rate below the overall per capita income growth rate. Yet economic wellbeing has led to a significant increase in the number of households coming within the 2W target segment over the past few years. As per NCAER’s estimates, the number of households having annual income between Rs. 200,000- 500,000 is estimated to have increased to 22 million in 2009-10, a scale-up by a factor of 2.5x over 2001- 02 (refer
  55. 55. 54 The following figure indicated the Trend in GDP capita and 2W price Industry structure India is the 2nd largest two-wheeler market in the world with a size of over Rs 100,000 mn. The total sale of two wheelers in India has touched a figure of ~7.9 mn units by March, 2007, up 11.4% from the previous fiscal figure of ~7.1 mn units. Production during the period reached 10.8 mn units, entailing a demand ratio of ~72%. In terms of sales and market share the major players of the industry are Hero Honda , Bajaj Auto and TVS Motors. Other players include Kinetic Motors, Yamaha Motor and Honda Motorcycle and Scooter India (HMSI). The composition of the industry consists of motorcycles, scooters and mopeds. Over the past decade, there has been a consumer preferential shift from mopeds to scooters and now motorcycles. On account of the shift, the motorcycle segment dominates the twowheeler industry with a market share of close to 80%. The motorcycle segment is further sub divided into 3 classes, starting from the entry/economy class (Rs 30,000 – Rs 40,000), executive class (Rs 40,000 –Rs 50,000) and the premium class (>Rs 50,000). The motorcycle segment is primarily led by Hero Honda with a market share of ~59% followed by Bajaj Auto (~18%), HMSI (~9%), TVS Motors (~7%) and Yamaha (~5%). On the other hand the scooter segment is led by HMSI which has a dominant
  56. 56. 55 share of ~63% followed by TVS Motors (16%) and Hero Honda (~14%). When it comes to the moped segment, it is primarily dominated by TVS Motors with a market share of ~100%. Market Segmental Classification and Characteristics The three main product segments in the two-wheeler category are scooters, motorcycles and mopeds. However, in response to evolving demographics and various other factors, other subsegments emerged, viz. scooterettes, gearless scooters, and 4-stroke scooters. While the first two emerged as a response to demographic changes, the introduction of 4- stroke scooters has followed the imposition of stringent pollution control norms in the early 2000. Besides, these prominent sub-segments, product groups within these sub- segments have gained importance in the recent years. Examples include 125cc motorcycles, 100-125 cc gearless scooters, etc Segmental Market Share The Indian two-wheeler industry has undergone a significant change over the past 10 years with the preference changing from scooters and mopeds to motorcycles. The scooters segment was the largest till FY1998, accounting for around 42% of the two- wheeler sales (motorcycles and mopeds accounted for 37% and 21 % of the market respectively, that year). However, the motorcycles segment that had witnessed high growth (since FY1994) became larger than the scooter segment in terms of market share for the first time in FY1999. Between FY1996 and 9MFY2005, the motorcycles segment more than doubled its share of the two-wheeler industry to 79% even as the market shares of scooters and mopeds stood lower at 16% and 5%, respectively. Sales Two- wheeler sales in the country have sky rocketed in the recent years, and the annual sales of motorcycles in India expected to cross the 10 million mark by 2010. The low penetration of two-wheelers in the country 31 two-wheelers per 1000 citizens (2004) leaves immense scope for the growth of the market. Overall the industry sales of two- wheelers have grown by 15% from 6.57 million in 2004/2005 to 7.57 million in 2005/2006. The buoyant Indian economy with a growth rate of around 8% per annum is further expected to fuel the growth of two wheelers in the country. The share of motorcycles have increased over the years, while that of other two-wheelers like geared scooters, scooterettes and mopeds have shown a negative growth or remained stagnant. The two-wheelers have penetrated 7% of rural house hold and 24% of urban markets, thus it leaves an immense scope for the market to grow.
  57. 57. 56 Bajaj Auto one of the leading producers of automobiles in the country has been able to sell close to 2.3 million vehicles in 2005/2006, the sales of the company grew by almost 31%. The company registered a 32% growth in the sales of motorcycles much above the industry average of 19%. Bajaj Auto has emerged as a market leader in the entry level or price segment motorcycle with the Bajaj CT 100 accounting for nearly 40% of the market share. It also commands a 62% market share in the premium segment of motorcycles with products like the Bajaj Pulsar DTSI. TVS Motors which has lots of firsts to its credit in the two-wheeler sector in the country was able to sell 1.34 million units during the same period thus registering an overall growth of 15% from the previous year. In the motorcycle segment the company's growth in sales was in sync with the industry average.
  58. 58. 57 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.  Company should launch bikes with less cost & best average.  Company should do modifications in their products Basically in 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.
  59. 59. 58 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 keep a special eye upon quality, safety, productivity, cost and delivery. 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 more than 150 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 house 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.
  60. 60. 59 ANNEXURE Questionnaire Thank you for your time sir/madam. Please give your honest opinions in making this survey a great success! Name * Last, First Age 18-25 26-35 36-45 46-60 60+ Gender Male Female Occupation Business Service Student Homemaker Total number of members in the family *
  61. 61. 60 How many members in your family have vehicles? * Monthly family income? * Bellow 50000 50000-2 lakh 2 lakh-4 lakh Above 4 lakh Email Address 1. Which Bajaj vehicle do you prefer? * Two wheelers Three wheelers 2. Are you satisfied with the quality assurance of Bajaj vehicles? * Excellent Very good Good Average Poor 3. Are you satisfied with the price ranges of Bajaj two wheeler and three wheeler vehicles?* Yes No
  62. 62. 61 4. Are "Bajaj vehicle" looks, match your personality? * Yes No 5. Which of Bajaj's two wheeler do you like the most? * Pulsar Avenger Discover Platina Other: 6. Which of Bajaj's three wheeler do you like the most? * Auto rickshaw Daihatsu midget None Other: 7. Which color for two wheelers do you like, offered by Bajaj? * White Blue Yellow Black Red Other: 8. Why do you like Bajaj vehicles? * Because their prices are low Because they are having the best quality Other:
  63. 63. 62 9. Do you feel that Bajaj vehicles are too costly? * Yes No I don't know 10. Do you feel that Bajaj provides better services? * Yes No 11. Are you satisfied with the average in the vehicles? * Yes No 12. What do you find about Bajaj's marketing strategy while purchasing “YOUR VEHICLE”? * Excellent Very good Good Average Poor
  64. 64. 63 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  The Indian Express

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