Basic Civil Engineering first year Notes- Chapter 4 Building.pptx
Bajaj
1. 1
BAJAJ MARKETING STRATEGY
A Minor Project Report
Submitted in partial fulfillment of the requirements for BBA (General) programme
of Guru Gobind Singh Indraprastha University , Delhi
Submitted by
BBA Semester-III
Enrol. No.:
Lingaya’s Lalita Devi Institute of Management & Sciences
Mandi Road, Mandi
Delhi-110047
2. 2
DECLARATION
I hereby declare that the minor project report, entitled “BAJAJ MARKETING STRATEGY” , is
based on my original study and has not been submitted earlier for award of any degree or
diploma to institute or university.
The work of other author(s), wherever used, has been acknowledged at appropriate place (s).
Place : New Delhi Candidate’s signature
Date: Name :
Enroll No.
Countersigned
Name :
Supervisor
LLDIMS
3. 3
ACKNOWLEDGMENT
An independent project is a contradiction in terms. Every project involves contribution of many
people. This project also bears the imprints of many people and it is a pleasure for me to
acknowledge and thank all of them.
I am deeply indebted to (Shitika ) who acted as a mentor and guide, providing knowledge and
giving me his/her valuable time out of his/her busy schedule, at every step throughout the
project. It is only because of his/her this project came into being.
I also take the opportunity to express my sincere gratitude to each and every person, who directly
or indirectly helped me throughout the project and without anyone of them this project would not
have been possible.
The immense learning from this project would be indelible forever.
Student Name
Enroll. No.
4. 4
TABLE OF CONTENTS
SR. No. Topic Page No.
1. Declaration
2. Acknowledgement
3. Executive summary
4. Chapter 1 Introduction
Co. History
Co. Profile
Co. Flash back
Objectives
Significance of the
study
Scope of the study
Research Methodology
Limitations of the
study
7-11
12-14
15
16
17
18
19-20
21
5. Chapter 2 Conceptual
Framework
Certificate
Policy certificate
Group co.
SWOT Analysis
Infrastructure of bajaj
Marketing Mix
Marketing
Segmentation,
Targeting & Planning
23
24
25-27
29
30-34
35-42
43-45
6. Chapter 3 Data analysis &
interpretation
Data analysis
Project Findings
Other Finding
47-58
59
60-65
7. Chapter 4 Suggestions &
Recommendations
Suggestions
Conclusion
67
68
8. Bibliography -
9. Annexure -
5. 5
EXECUTIVE SUMMARY
Bajaj Auto Limited (BAL) was recognized in 1945, firstly launching scooters and three wheelers
a centre in the Indian market. In 1991 it's properties of the Indian government rule on foreign
imports, BAL's marketing object the development of the Indian two wheeler business from
scooters to 2 stroke and 4 stroke bikes with a robust stress on BAL while studying its strategies.
Along with the analysis found that BAL moving into developing markets in instruction to
increase sales and found a global footmark. According to market report also comprises SWOT
study of BAL which will help it to express an actual marketing policy for the next five years. In
adding to SWOT analysis, Bajaj auto limited latest model Pulsar DTS-i 220cc,150 cc ,180cc &
135 cc and Discover DTS-i 135 cc & 100cc increased growth suddenly. It's product quality(
maintenance, mileage &service ) better than any another Hero Honda, TVS motor product .At
present time ,Bajaj very good position in two wheeler industry because It's changes model half
yearly, yearly. It's also increase market share. Bajaj discover 100 makes new record -over 10
lakh bike sold in just 15 months.
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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.
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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 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.
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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.
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.
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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 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
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(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.
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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
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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
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.
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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 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.
.
15. 15
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 motorscooters, motorcycles and the auto rickshaw.
The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946
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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
OBJECTIVES
THE MAIN OBJECTIVE TO STUDY THIS PROJECT IS TO KNOW ABOUT THE
DIFFERENT STRATEGIES OF BAJAJ LTD. THE MAIN OBJECTIVES IN THE MIND:
TO STUDY THE PRODUCTS OFFERED.
TO STUDY THE PRICE RANGE OF DIFFERENT PRODUCTS OF DIFFERENT
COMPANIES.
TO STUDY THE MARKETING IMPACT ON CUSTOMERS AND SALES.
TO STUDY CUSTOMER PREFERRENCES TOWARDS DIFFERENT PRODUCTS
OFFERED BY BAJAJ AUTOMOBILES.
TO STUDY CUSTOMER SATISFACTION TOWARDS PRICE QUALITY, MILAGE
AND BRAND.
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.
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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.
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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
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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 &
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three wheelers) owner and how much satisfied are they with their vehicle performance
and after sales services.
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
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.
21. 21
SAMPLE DESIGN AND DATA COLLECTION
My research is based upon secondary data which is collected from various Books , Internet and
various records of bajaj auto limited.
LIMITATIONS OF THE STUDY
1. This project is entirely based upon secondary data so, it lacks the personal touch .
2. Because of time constraint, I was not able to collect much of information.
3. Profitability ratios calculated are based on estimates rather than exact figures.
25. 25
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 DistributorsLtd.
Sanraj Nayan Investments Pvt. Ltd. P T Bajaj Auto Indonesia (PTBAI)
Bajaj Auto International Holdings BV,
Netherlands (BAIBHV).
26. 26
Product For September
2013
Upto
September
2013
For September
2012
Upto
September
2012
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
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SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
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
Auto motive 254843 236182 485919 447047 904617
Investment 2210 2595 5088 5928 12267
Total 257073 238777 491007 452975 916884
Segment
profit/ loss
before Tax &
interest
Auto motive 24968 33351 48293 57425 101722
Investment 2210 2595 5088 5928 12267
Total 22178 35946 53381 63353 113989
Less ; Interest 587 136 679 142 516
Total profit
Before Tax
26591 35810 52702 63211 113473
Capital
Employed
Auto motive 140014 148759 140014 148759 136867
Investment 171039 164960 171039 164960 190020
Unallocable (2842) (4965) (2842) (4965) (33596)
Total 308211 308754 308211 308754 293291
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Sales in numbers for the month of October 2013 1st November 2013
Product For
September
2013
Upto
September
2013
For
September
2012
Upto
September
2012
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 1,59,425 28,001 174,218
Grand Total 191,840 1,451,975 278,176 1,463,860
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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
30. 30
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, un geared 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, Sector 10 Phase -II - E, Pant Nagar, Sidcul, Rudrapur Dist. Udhamsingh Nagar
Uttranchal
31. 31
MANAGEMENT PROFILE
Rahul Bajaj Chairman
Madhur Bajaj Vice Chairman
Rajiv Bajaj Managing Director
Sanjiv Bajaj Executive Director
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
32. 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 organization 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.
33. 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.
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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
MARKETING MIX
It is an important tool used by marketing to design the process of marketing in an
organization. It is a plan designed to analyses the marketing problems. The concept of marketing
is useful in designing a market one strategy to meet the uncontrollable or to nullify there effects.
The marketing deals with the 4 important elements of marketing mix i.e.,
(4P's).
1. Product Mix
2. Place Mix
3. Price Mix
Marketing mix is mainly of two types.
Product marketing mix – Comprised of Product, price, place and promotions. This
marketing mix is mainly used in case of Tangible goods.
Service marketing mix – The service marketing mix has three further variables included
which are people, physical evidence and process. They are discussed in detail in the
article on service marketing mix.
36. 36
The term marketing mix was first coined by Neil H Borden back in 1964 in his article “The
concept of marketing mix”. Several strategic analysts over the years believe that the marketing
mix can make or break the firm. Having the right marketing mix at the start of the marketing
plan is absolutely essential. Over time the concept of marketing mix has provided a steady
platform for the launch of a new product or business.
As mentioned before, the marketing mix is characterized by four different but equally important
variables. These variables are never constant and may be changed over time. However, a change
in one of the variables may cause a change in all the other variables as well. The variables are as
follows
1) Product – The first thing you need, if you want to start a business, is a product.
Therefore Product is also the first variable in the marketing mix. Product decisions are
the first decisions you need to take before making any marketing plan. A product can be
divided into three parts. The core product, the augmented product and the tertiary
product. Before deciding on the product component there are some questions which you
need to ask yourself.
What product are you selling?
What would be the quality of your product?
Which features are different from the market?
What is the USP of the product?
Whether the product will be branded as sub brand or completely new?
What are the secondary products which can be sold along with primary (Warranty, services)
37. 37
Based on these questions, several product decisions have to be made. These product decisions
will in turn affect the other variables of the marketing mix. For example – You launch a car with
is to have the highest quality. Thus the pricing, promotions and placing would have to be altered
accordingly. Thus as long as you dont know your product, you cannot decide any other variable
of the marketing mix. However, if the product features are not fitting in the marketing mix, you
can alter the product such that it finds a place for itself in the marketing mix.
2) Pricing – Pricing of a product depends on a lot of different variables and hence it is
constantly updated. Major consideration in pricing is the costing of the product, the
advertising and marketing expenses, any price fluctuations in the market, distribution
costs etc. Many of these factors can change separately. Thus the pricing has to be such
that it can bear the brunt of changes for a certain period of time. However, if all these
variables change, then the pricing of a product has to be increased and decreased
accordingly.
Along with the above factors, there are also other things which have to be taken in consideration
when deciding on a pricing strategy. Competition can be the best example. Similarly, pricing
also affects the targeting and positioning of a product. Pricing is used for sales promotions in the
form of trade discounts. Thus based on these factors there are several pricing strategies, one of
which is implemented for the marketing mix.
3) Place – Place refers to the distribution channel of a product. If a product is a consumer
product, it needs to be available as far and wide as possible. On the other hand, if the
product is a Premium consumer product, it will be available only in select stores.
Similarly, if the product is a business product, you need a team who interacts with
businesses and makes the product available to them. Thus the place where the product is
distributed, depends on the product and pricing decisions, as well as any STP decisions
taken by a firm.
38. 38
4) Promotions – Promotions in the marketing mix includes the complete integrated
marketing communications which in turn includes ATL and BTL advertising as well as
sales promotions. Promotions are dependent a lot on the product and pricing decision.
What is the budget for marketing and advertising? What stage is the product in? If the
product is completely new in the market, it needs brand / product awareness promotions,
whereas if the product is already existing then it will need brand recall promotions.
Promotions also decide the segmentation targeting and positioning of the product. The right kind
of promotions affect all the other three variables – the product, price and place. If the
promotions are effective, you might have to increase distribution points, you might get to
increase the price because of the rising brand equity of the product, and the profitability might
support you in launching even more products. However, the budget required for extensive
promotions is also high. Promotions is considered as marketing expenses and the same needs to
be taken in consideration while deciding the costing of the product.
PRODUCT
PLACE MARKETING MIX PROMOTION
PRICE
39. 39
Thus as we see from the above diagram, all the four variables of marketing mix are inter related
and affect each other. By increasing the pricing of the product, demand of the product might
lessen, and lesser distribution points might be needed. On the other hand, the product USP can be
such that maximum concentration is on creating brand awareness, thereby increasing need of
better pricing and more promotions. Finally, the overall marketing mix can result in your
customer base asking for some improvement in the product, and the same can be launched as the
upgraded product.
Demographic Segmentation:
Income : Our customer survey indicates that the segments available for the bajaj motor
bike are the people with monthly income of Rs. 10,000 and above.
Age : The main segmented group for the motorcycle are 18 years and above.
Occupation : All kinds of people are taken into account. Students , professionals, Govt.
servants, etc..
Geographic Segmentation: The potential customers for the Bajaj motor cycle
are basically from every regions of India .
Psychographic Segmentation: People purchasing Bajaj’s bikes are very stylish, brand
conscious.
Behavioral Segmentation: T h i s s e g m e n t a t i o n i s d o n e considering user
status, benefit wise.
40. 40
Auto mobile Industry in India
Two wheelers
76%
16%
4%
4%
Sales
two wheelers
passemger vehicle
commercial vehicles
three wheelers
42. 42
Key Players in Market
• Hero Honda Motors India Limited
• Bajaj Auto Ltd. (BAL)
• TVS Motor Company
• Honda Motorcycle Scooter India (P) Ltd.
• Yamaha Motors India Pvt. Ltd.
• Suzuki Motor Corporation
• LML (India) Limited
• Royal Enfield Motors India Limited
27%
18%
41%
14%
Sales
bajaj auto ltd
tvs motors
hero honda
others
43. 43
Market Segmentation, Targeting and Positioning
Segmentation
Before Pulsar Bajaj was just known for its scooter as its various attempts failed to pose a
threat to the Hero Honda’s supremacy.
But Bajaj strategically placed Pulsar in the market against the CBZ in the 150cc segment.
Pulsar proved to be a land mark in reviving the fate and position of Bajaj thereby posing
a threat to Hero Honda’s rule in Indian market.
USP of Pulsar wasn’t its performance but its advertising, targeting & positioning.
Targeting
Bajaj did all the right moves by targeting the youth and “He-bike”, and making Pulsar an
inseparable attribute to Males.
Pulsar was Bajaj’s first bike without Kawasaki label on it.
The bike’s orientation was towards being a macho and manly bike.
Positioning
Bajaj has positioned Pulsar in the “High Style High Price” segment along with Hero
Honda Karizma, Hero Honda CBZ, Royal Enfield Bullet.
It also has positioned CT 100 in the “Low Style Low Price” segment along with Hero
Honda Splendor, TVS Star City.
44. 44
Advertising Strategy
Bajaj is always known for its outstanding ads over the period of time. Since its inception, Bajaj
has come out with variety of ads and were always successful in their advertisements. Bajaj is
always known for its ads without well-known brand ambassadors which is again a plus point to
its cart as it saves a huge cost in terms of brand ambassadors unlike Hero Honda and TVS. Prior,
Bajaj used to convey the feeling of ‘Indian ness’ in its ads. With a punch line ‘Hamara Bajaj’
Bajaj drove into everybody’s hearts and the title song of ‘Naye Bharat Ki Nayi Tasveer’ added a
great value to its mobikes and scooters. A couple of years back, Bajaj introduced an
advertisement which promoted all the different ranges it had, wherein they showed each product
they had with a feeling of Indian ness. Example: Eliminator passes – by a rangoli and drives
slowly sideways without disturbing it. People on Boxer pass-by a temple and bend their head to
give a little offering. Such ads revealing Indian culture had a great effect on Indians and Bajaj
was successful in most of its ads. Recently, Bajaj changed its brand logo along with its punch
line i.e. ‘Hamara Bajaj’ which got converted to ‘Inspiring Confidence’. The reason for this
change as told by the company officials was to keep pace with the new technologies in the fast
moving world. Even though it had changed its punch line, it didn’t have much effect on its brand
image. A year back, Bajaj introduced DTSi technology upgrading its successful PULSAR 150cc
and 180cc. Though Bajaj had changed its identity it still dominates for its creativity in ads.
Bajaj and its Competitors
38%
28%
15%
14%
3% 2%
Sales figures April 2010
Hero Honda
Bajaj
TVS Motors
Honda
Yamaha
Suzuki
47. 47
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.
0
20
40
60
80
100
120
140
160
Two wheelers three wheelers
Series 1
48. 48
2. Quality assurance:-
Excellent 21.4%
Very good 48.7%
Good 22.7%
Average 4.5%
Poor 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.
21%
49%
23%
4%
3%
Sales
excellent
2nd Qtr
Good
average
poor
49. 49
3. Price range satisfaction:-
Yes 75.3%
No 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
75%
25%
Sales
yes
no
50. 50
4. Bajaj as personality vehicles:-
Yes 63.6%
No 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.
96%
4%
Sales
yes
no
51. 51
5. Bajaj’s two wheeler choice:-
Pulsar 48.7%
Avenger 49.4%
Discover 23.4%
Platina 13%
Other 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.
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
pulsar avenger discover platina other
Column1
52. 52
6. Bajaj’s three wheeler choice:-
Auto rickshaw 29.2%
Daihatsu midget 27.9%
None 48.7%
Other 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.
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
auto rikshaw daihatsu midget none other
Series 1
Series 1
53. 53
7. Color choice:-
White 26%
Blue 31.2%
Yellow 24.7%
Black 42.9%
Red 24%
Other 0%
Analysis:-
Mainly people make choice for colors which suits their personality. But black owns the Market.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
white blue yellow black red other
Series 1
Series 1
54. 54
8. Customer’s liking features of Bajaj vehicles:-
Because their prices are low 56.5%
Because they are having the best quality 40.9%
Other 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
57%
41%
3%
Sales
bacause their prices are low
because they are having the
best quality
other
55. 55
9. Costliness:-
Yes 37%
No 48.7%
I don't know 14.3%
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.
37%
49%
14%
Sales
yes
no
I don't know
56. 56
10. Bajaj’s service:-
Yes 78.6%
No 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.
79%
21%
Sales
yes
no
57. 57
11. Bajaj vehicle average satisfaction:-
Yes 66.2%
No 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.
66%
34%
Sales
yes
no
58. 58
12. Marketing strategy of Bajaj:-
Excellent 18.8%
Very good 40.9%
Good 29.2%
Average 7.1%
Poor 3.9%
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.
19%
41%
29%
7% 4%
Sales
excellent
very good
good
average
poor
59. 59
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 produces 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 Auto mobile can improve market share, by increasing brand
loyalty, giving more ads and promotions, increasing R&D etc
60. 60
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 Two wheelers 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-
61. 61
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 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 months of growth
followed by 18 months of de growth. The industry had outperformed the broader market in the
latter half of FY06. FY07 was a period of consolidation with the big players capturing a larger
market share among their niche segments. There on 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. Though the sale
volumes have witnessed a decline for more than a year, its revival would be a slow and steady
62. 62
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 53 their cape x 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;onthe other, various fundamental drivers such as low 2W penetration (in relation to
several other emerging markets), favourable demographics, 21 growing urbanization and swelling
replacementdemandare expectedtoenable the growthmomentumto 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)
63. 63
The following figure indicated the Trend in GDP capita and 2W price
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
GDP, factor cost, current places 29,000 31,000 35,000 40,000 45,000 50,000 56,000
on road price (ex. Of a large selling
entry segment bike)
41,000 41,000 41,000 41,000 40,000 40,000 40,000
on road price (example of a large
selling entry segment bike)
60,000 61,000 62,000 61,000 61,000 70,000
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
AxisTitle
Chart Title
64. 64
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 b y 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 two wheeler 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 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 sub
segments emerged, viz. scooter ettes, 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
65. 65
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, scooter ettes 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. 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.
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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.
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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.
69. 69
BIBLIOGRAPHY
Books:-
Marketing Management – By Philip Kotler
Marketing Management- By C.B.Gupta
Magazines:-
Auto magazine
Over drive magazine
Business today
Websites:-
https://www.google.co.in/?gfe_rd=cr&ei=9kguVY3NIZeCvASdvYCwCw&gws_rd=ssl#
q=bajaj+auto
https://www.google.co.in/?gfe_rd=cr&ei=EQtHVrP8OPPI8AfomIHYBQ&gws_rd=ssl
https://www.google.co.in/?gfe_rd=cr&ei=9kguVY3NIZeCvASdvYCwCw&gws_rd=ssl#
q=msn
Newspapers:-
Times of India
The Indian Express
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QUESTIONNAIRE
Name:
Age:
Occupation:
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 d
Good Average Poor
3. Are you satisfied with the price ranges of Bajaj two wheeler and three wheeler vehicles?
Yes
No
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:
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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
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
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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
