Bajaj_motorcycles_vs_LML_motorcycles market analysis

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Bajaj_motorcycles_vs_LML_motorcycles market analysis

  1. 1. Table of Contents1. Introduction ................................................................................................................................... 3 1.1 LML Motorcycles ......................................................................................................................... 3 1.2 Bajaj Motorcycles ......................................................................................................................... 3 1.3 Primary Users of the Products ...................................................................................................... 42. Market Analysis of the two products .......................................................................................... 5 2.1 PEST Analysis On Motorcycle Industry ....................................................................................... 7 2.3 Reason for the success and failure of the product ....................................................................... 103. Innovation on the failed product ................................................................................................... 17 3.1 Compare the innovated product to the Successful product ......................................................... 204. Analysis of the innovated product ................................................................................................. 21 4.1 Market Consideration.................................................................................................................. 21 4.2 Product Value and Quality .......................................................................................................... 23 4.3 Financial Implication of the new product ................................................................................... 245. Conclusion ....................................................................................................................................... 286. References ........................................................................................................................................ 29 Page | 1
  2. 2. List of FiguresFigure 1 ................................................................................................................................................... 3Figure 2 ................................................................................................................................................... 4Figure 3 ................................................................................................................................................. 14Figure 5 ................................................................................................................................................. 18Figure 6 ................................................................................................................................................. 18Figure 7 ................................................................................................................................................. 19List of TablesTable 1 .................................................................................................................................................... 4Table 2 .................................................................................................................................................... 5Table 3 .................................................................................................................................................... 5Table 4 .................................................................................................................................................... 6Table 5 .................................................................................................................................................... 6Table 6 .................................................................................................................................................... 9Table 7 .................................................................................................................................................. 11Table 8 .................................................................................................................................................. 12Table 9 .................................................................................................................................................. 20Table 10................................................................................................................................................. 21Table 11 ................................................................................................................................................ 25Table 12 ................................................................................................................................................ 26 Page | 2
  3. 3. 1. IntroductionAutomobile Industry is one of the largest industries in global market. India is the secondlargest two-wheeler market in the world, it stands next to japan and china in terms of numberof two wheelers produced and sold. In india there are 9 motorcycle manufacturers. Bajaj autois one of leading motorcycles manufacturing company in India. I choose bajaj motorcycles assuccess product and Lml motorcycles as failure product.1.1 LML MotorcyclesLohia Machinery Limited was founded in 1978. They came to the market with scooter projectwith after signing technical agreement with Piagio, Italy. They launched their first product“LML Select” in 1993 with new look and architectural design and became an instant success.LML ended their agreement with Piagio in 1999. Soon after that they signed new agreementwith Daelim Motor Company of South Korea to manufacture 4-stroke motorcycles. Thecompany mainly manufactures their scooters and motorcycles at manufacturer based inKanpur, Uttar Pradesh. Source: www.encyclopedia.com. Figure 1- LML Motorcycle 1.2 Bajaj Motorcycles Bajaj Auto Limited was founded on 29 November 1945 as M/s Bachraj Trading Corporation Private Limited. Bajaj Auto is a part of the Bajaj Group. It‟s main manufacturing based in Pune, Mumbai with sub factories in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttaranchal. Bajaj Auto is the worlds third-largest manufacturer of motorcycles and the second-largest in India Page | 3
  4. 4. Figure 2- Bajaj Motorcycle1.3 Primary Users of the ProductsAccording to SIAM(society of Indian Automobile Manufacturers) the domestic market sharein 2011-12 for two wheelers industry is 77.32%, which is highest when compared to thecategory wise market share with passenger vehicles, commercial vehicles and three wheelerswhich has market share of 15.07, 4.66 and 2.95 respectively as shown in chart. Figure 3 –India‟s motorcycle market share Source: SIAM Table 1 2009 2010 2011 Motor Bicycles 139,000 224,998 252,318 Import of Motor Vehicles (2009 to 2011) (Source: Sri Lanka Customs)In sri lanka import of motorcycles has been increased by 61% and 81% consecutively in theyear 2010 and 2011 compared to the 2009. Page | 4
  5. 5. 2. Market Analysis of the two productsIndia‟s market share of the two wheelers and motorcycles given below.(2000 to 2012). Table 2 Shares of Two-Wheeler Manufacturers in Industry Sales (FY 2000 –FY 2005) Source: ICRA Analysis January 2005 Table 3 Source: SIAM Page | 5
  6. 6. According to Charts 25.4% market share has belong to Bajaj auto and LML has market shareof less than 4.8 %. Table 4 Table 5 Profit after tax Source : www.bajajauto.com Page | 6
  7. 7. 2.1 PEST Analysis On Motorcycle IndustryPolitical Factor- Tax policies, trade regulation, political influence and some of the rule andregulation of government policies which is considered in political analysis. By changing theduty value and method for the electric motorcycles which will enable the manufacturers takeCENVAT credit and release of customs duty on Electric vehicles parts and also weighteddeduction for in house R&D to 200% from 150% and outsourced R&D from 125% to 175%.This would encourage industry that much because this price hike isn‟t expected to impactsales in a significant way as a majority of two wheelers buyers were prepared, and to certainextend braced up and ready to shell out extra money for their favorite set of wheels.With increasing of the Indian economy and markets with the international economy theGovernment acquired a wider perspective on regulation of markets from merely curbingmonopolies to promoting competition. Consequently, the competition act, 2002 was enactedon 13th January 2003. Source: www. cci.gov.inEconomic Factor- Economic factor are those which is influenced by economic growth,interest rate, exchange rate and inflation rate.According to the central bank of India GDP growth rate of India in past few years has beenover 7%.In the past few years it has been supported considerably towards raising growth forthe country‟s automobile industry. Existing in plentiful supply of raw material like,aluminum, rubber and steel and also the cost labor is considerably low in India. Therefore itis help to reduce manufacturing cost. Electricity and other basic needs for manufacturing canbe found for reasonable price in India.Consequently, CARE research expects more growth in exports of motorcycles. Existing inplentiful supply of raw material and low labor provide significant advantage when makingcost effective product to global market. Since many auto finance company laid easyinstallment rules with less interest rate it makes more segment people to go for it. Page | 7
  8. 8. Social Factor- Social aspects of two wheelers industry are Popularity, Mobility and Safety.In most of the country motorcycles are the primary method of motorized transport. India isthe second largest motorcycles markets in the world next to china. Socially many motor cycleorganization raise money for charities through organized ride and events. Many people ridemotorcycle for different reasons. Cultural and social needs are influencing to increase thosereasons . Consumers are opting for powered motorcycles as a cost efficient alternative touncomfortable and time wasting public transport system, or as a means of avoiding orreducing the effect of urban congestion. Motorcycle gives a great advantage to the specifieddesignation where other buses cannot enter. Since there is a rule in some of the main statesand cities in india and sri lanka to wear helmet while riding two wheelers to make them safefrom accidents makes two wheeler riders to have a safe journey.Technical Factor- Technical Aspects in Two wheeler industry includes construction, fueleconomy, electric motorcycles, dynamics and accessories.Motorcycle construction is a combination of engineering, manufacturing, and assembly ofcomponents. The performance of the motorcycles depend on architectural ability of thedesigners. Construction of motorcycle includes steel, aluminum frame, telescopic forks anddisk brakes. Motorcycle is the best fuel economy mode of transport, nowadays motorcycles isgive more than 80km mileage per liter with low maintenance cost. Invention of electricmotorcycle gives an added advantage since the two wheeler users can avoid using petrol.Numerous types of motorcycles have different dynamics and these plays an importantcharacter in their performance. Since sufficient bike accessories are available in many placetwo wheeler riders has a privilege to change the broken parts very easily. Page | 8
  9. 9. 2.2 SWOT analysis of the two products BAJAJ MOTORCYCLES LML MOTORCYCLES Strengths Management is highly Low prized products are experienced available Expertise in design and Technical support fromInternal development skills foreign companies. Innovative R&D unit Have well known product Island wide distribution range of scooters in india network Wide range of products for different segments Weaknesses Lack excess cash for long Insufficient financial term. support Still not a market leader in Inexperienced management India. Distribution network is No products in racing poor. segment. Too much dependence on Not popular brand in world. few models. Not a globally recognizable brand. Opportunities India‟s consistent growing High growth rate in GDP will expand the motorcycle market. motorcycle market. New market opportunitiesExternal Opportunities in sport and in electric motorcycles. premium segments New market opportunities in Untapped market above 180cc developing countries. in motorcycles. Discounts & loans offered lead to great demand. Threats Substitutions for a new model Threat of cheap imported are coming so quickly. motorcycles from china Low cost motorcycles in Competitors are adapted to china. new technologies so quickly. All major bike makers in the Low cash reserves. world are lining up for india Table 6 Page | 9
  10. 10. 2.3 Reason for the success and failure of the productBajaj auto has wide range of models for different customers. They are mainly focus on threemarket segments. By understanding the customer requirements at different levels andproducing the models for each level is one of main reason for success in the market.  Entry (Commuter Standard)  Mid(Commuter Deluxe & Light Sports)  Premium (Sports)Entry level is mainly targeted for rural areas and middle class people. They have successfulmodels for this level.  Bajaj platina  Bajaj boxer  Bajaj ct 100Platina - Bajaj Platina is a 4 stroke 100cc engine that has good mileage. Its ride controlswitch helps the rider maintain an economical speed to gain maximum mileage.For other hand LML has only limited models for entry level.  LML CRD 100 super deluxe  LML CRD 100 super plusThe CRD 100 SUPER DELUXE comes with alloy wheels and that also has reasonable price.It has a Double Cushion Suspension (DCS) system. M/s. Ugolini Designs, Italy hasundertaken the styling for the both the bikes. „ Page | 10
  11. 11. Table 7 According to this chart, rural two wheel consumers have been increased fairly. Andbajaj has again advantage from that by introducing successful products to the market aimingrural customers. But Lml unable to get advantage from rural market growth. Because of notintroducing new model for rural market. Strategy for entry level  Low cost models  High mileage  Easy maintenance Page | 11
  12. 12. Table 8 Souce: bajajauto.comMid-level is mainly targeted for upper middle class, government workers and students. Bajajhas new models for this level.  Bajaj discover 135  Bajaj pulsor 135  Bajaj XCDFor this level Lml has few models. But weakness of marketing have been failed these models.  LML Freedom  LML Freedom DXDiscover - Bajaj Discover 125 has patented DTS-i engine ensures efficient burning of fuel,thereby delivering an unbeatable combination of mileage and power. This is accentuated byits 5 speed gear box, which provides a smoother ride with greater fuel efficiency. In addition, Page | 12
  13. 13. Exhaus Tec technology also helps with excellent pulling power, even at a low speeds in topgear.Premium level is mainly targeted for urban customers. For this level manufacturer has toprovide maximum satisfaction .It requires latest technology and fashion.For that bajaj has introduced,  Bajaj pulsar.  Bajaj AvangerBajaj pulsar make an image of that there bike is only for guys. Through his Definitely MaleCampaign they shows behave of a young guys. Advertisement helped lot Bajaj to createbrand positioning. PULSAR is the most selling model motorcycle in the company. It includestechnologies like “DTSi” and has very aggressive look.LML also produced some good models like,  LML Graptor  LML BeamerThe Graptor is inspired in parts by various other motorcycles. But it has good engine.Between the Pulsar and the Graptor, the battle is very close. The Pulsar wins the handling andride quality parameters, while the Graptor takes the engine points. The Pulsar winsergonomics, the LML takes comfort. You see, they are very close overall, but are quitedifferent in character. The Pulsar is unabashedly sporty, while the Graptor is a calmer, laid-back sort. Both are equally effective.But main reason failure for LML Graptor was high cost inefficient advertising campaign andpoor distribution network . The company has been in finansial crisis in last few years. Page | 13
  14. 14. PREMIUM MID Q ENTRY P Q Figure 3 Pyramid segmentation for Motorcycles consumers R=P*QRevenues = Profit for one product * quantityStrategy using in the entry level is sales more quantity of motor cycles with less profit fromeach product. In this category product is provide basic need of a customer.MID level is for customer who looking for new technology as well as cost effective product.The revenue is gain by average profit margin from the each product with average salesquantity.Premium level is for customers who looking for latest technology as well as maximumsatisfaction. In this level quantity of sales is low but high margin of profit in the each productis high. Page | 14
  15. 15. Distribution NetworkBajaj auto ltd is planning to increase its dealership network and upgrading its service centersby next year. Bajaj is appointing 130 new dealers, mainly in small towns, taking the totalnumbers to more than 600 dealerships across India. Currently bajaj distribution network ismain spread in urban areas due to “pulsar” market consideration. Company launched networkexpansion programme to increase dealers in rural areas for growing market. (Information and Credit Rating Agency India) Source: www.icra.inLML’s marketing & sales office is located at Delhi which plans, executes and controls allmarketing and sales activity. Company has around 354 primary dealers. But due to lack ofinexperience and low production has been reason for sales gone down. Reasons of failure inLML distribution channel are  High targets, inadequate supply  Company unable to meet dealer requirements as per customer demands  Dissatisfied distributors – major reason that backfired the distribution channel revampResearch & DevelopmentBy continuously doing research & developing companies can fulfill the customer needs tocertain level. By doing market research, can gather new customer needs and identify theunidentified market needs.Bajaj has highly innovative research and development team that included expertise in thecounty. They are fully equipped with latest lab facilities. R&D responsible for new productsin the company and it will decide the company future in way. By doing constantly research Page | 15
  16. 16. on market and identifying the new market treats, new emerging market and the unmade needsin market is one of the reasons for success.The company has investing in huge amount For developing the new technologies to increasethe fuel efficiently.Latest product of the R&D for year 2013 is Pulsar 200 NS. This completely new engine andvehicle platform was designed to carry forward the legacy of Pulsar, Bajaj Auto‟s mostsuccessful brand in the past decade. It has been designed to further enhance and sharpen thesports image of the brand. The Pulsar 200 NS is powered by a high performance 4-valveliquid cooled engine .Bajaj auto has fine R&D structure to develop new technologies like“DTSi”. Source : www.bajajauto.comLML – Investing & developing on a continual basis is an important business practice atLML. Company has equipped with CAD-CAM machines, has facilities for rapid prototyping,Vacuum casting, endurance and performance testing. Source: (www.lmlindia.com)General Reasons Behind Failure of LML  Financial Crisis due over spending & owing to excesses  Mediocre product quality ( Energy)  Shift in brand positioning -not smooth  Poor distribution networkGeneral Reason Behind Success of Bajaj  Strong distribution network.  Attractive marketing campaign  Good research & development unit  Wide range of products for different customer needs  Better after sale service Page | 16
  17. 17. 3. Innovation on the failed productInnovations in the designs of motorcycles have grown by leaps and bounds. Innovation isimportant factor to gain the market share as well as a hold the market share. In motorcycleindustry there are more innovations are coming up. In LML motorcycles, there are someweaknesses. Like,  High fuel consumption engines  Finishing is not enough  No eco-friendly product  Small R&D unitFor the high fuel consumption there are more solutions can be implement. By using lightweight material like aluminum and more recently carbon-fiber construction can be employedin motorcycles to make the most of power outputs and fuel loads. . New developments inmetallic alloys and carbon composites make the motorcycle lighter, more durable and saferfor the rider in an accident scenario.Currently there are various kinds of fuel efficiency engines in market. Electronic fuelinjection system method is one better technology use to make fuel efficient engines. Alsoautomatic transmission developed for a motorcycle that increases fuel efficiency. There arewide varieties of low-friction technologies to increase fuel efficiency.One of the latest engines has ability to set up to operate with a second-generation dual clutchtransmission (DCT). DCT is an automatic transmission developed for motorcycles thatincreases fuel efficiency. The new engine can also be used with a 6-speed manualtransmission. Figure 4 A engine that support DCT Page | 17
  18. 18. By using better aerodynamic technique & design can reduce the drag force by significantamount. By improving the drag co-efficient and keeping airflow smooth over a motorcycle. Ateardrop is the ideal shape because it has a smooth, rounded front with a gradually reducingtail. Small tapered tail unit and under slung exhaust muffler can be used to improve the dragco-efficient. Also it‟s gives unique look for motorcycle as well as it will help to get customerattraction. Here is the technique use in motorcycles. Figure 4 Figure 5 Page | 18
  19. 19. Currently in world the fuel consumption increasing significantly. But there are limitednew fuel deposits remaining. Because of that Crude Oil price will going higher andhigher. Therefore it is better to find good alternatives to fuels.Electrical engine is one option for that. It‟s very suitable because of it has minimumair pollution. It has great market opportunity due to its ecofriendly feature.Over the years, one of the problems that motorcycles have face is less comfort abilityin driving. Especially mid aged people have back pain problem when driving motorcycles. By adding adjustable front & rear suspensions can offer great comfort. Figure 6Adjustable Font & Rear Suspensions.Nickel alloy wheel, crome side mirror, crystal lights, led lights, digital speedometercan added to motorcycle to get attraction for customer attraction. Page | 19
  20. 20. 3.1 Compare the innovated product to the Successful product Table 9 Successful product Innovated product Fuel efficient With a four-stroke DTS-i engine With using electronic fuel engine and Exhaust TEC technology they injection method, low friction are made fuel efficient bikes. methods in engine can reduce the vibration and it helps to more fuel efficient. Automatic transmission also provide for more fuel efficiency. Light weight Bajaj use fiber to reduce the Aluminum and carbon-fiber can weight & to get smooth finishing. use to make light bikes, it helps for increase fuel efficiency . Easy to handle. Aero dynamics Pulsor has good outer design to A large front fender and rounded minimize the drag force in high front with a gradually reducing speeds. tail and Small tapered tail unit and under slung exhaust muffler can minimized the drag force. Transmission Manual transmission. Automatic transmission with second generation dual clutch. It‟s more fuel efficient. Alloy wheels Nickel alloy wheels Crome alloy wheels  Less durable than crome  Light weight  Light weight  More Durable Light & other  halogen headlamp has &  Twin halogen headlamp accessories ordinary bulb  3M Uniform Lighting Lens  More power consumption technology with LED can use to power saving Suspensions Bajaj use adjustable suspensions Use adjustable suspension for for front only. both front and rear to get more comfort. Page | 20
  21. 21. 4. Analysis of the innovated product4.1 Market ConsiderationUnderstanding the customer need is a best way to be success in the market. To understand themarket unmade needs, market research should be done. Here is the market research doneabout motorcycles to identify what are things that expect from new model.Table 10 60% 50% 40% Very Important 30% Important Less Important 20% Not Important 10% 0% Price Mileage Driving comfort Maintanance Warranty/Free cost ServiceAccording to the chart, customers are mostly expect from the new product are drivingcomfort and mileage factor. Also they expect reasonable price. Therefore the new productshould be high fuel efficient and more comfortable.Currently market leader in motorcycle segment in India is Hero Honda and they have around56% of the market share (refer chart 2.3). But they are mainly focus on price. Most othercompanies are also missing the comfortable factor due more focus on price and fuelefficiency. According to the research there is an unmade need gap in the market for fuelefficient and comfortable motorcycle.This new product mainly targeted for middle aged consumers. Because most of middle agedconsumers are looking for fuel efficiency and comfortable drive. Therefore the marketing andadvertising strategies have to base on middle age segment. Page | 21
  22. 22. In this new model there are technologies like LED Light systems and aero dynamictechniques to get attractive finish as well as comfortable driving. Therefore the secondtargeting market segment should be younger generation.4.1.1 Advertisement StrategiesNewspapers and magazinesMagazine and newspaper advertising is great method to reach audience. It‟s provided manymore targeting options, and covered all kind of audience and of all genders.Outdoor advertising billboardsBillboards are a great innovative method to advertise. Because those announcement foreveryone on the road. Also can put few broad targeting billboards based around the trafficand take more attention of public.FM Radio and televisionThis is a very popular platform for advertising. It covers nearly all kind of audience and of allgenders. Its wonderful mediums because can catch viewers when they are most focused.Online MarketingFor optimal effectiveness and targeting, Internet advertising provides the most flexibility forcompany reach and budget. Also specialty of the internet advertisement is it can assume thathow many visitors viewed Step-Up. And can get their comment directly.PostersPosters will be released only few days before the product launching to each city. Page | 22
  23. 23. 4.2 Product Value and QualityProduct value is an assessment of the worth of a good product. “The product value assessedby a business when setting a price for a particular product can depend on its production costs,its overall market value and the value of the product as perceived by a targeted group ofconsumers.Value analysisValue engineering was used to improve as well as developed for the value and reduce thetotal cost of a product. As it is very much a product re-engineering tool, the value engineeringis used for design process itself here, not the product. To measure the value of a product interms of quality, performance and reliability at an acceptable price and to remove none valueadded aspects where value is defined as worth or cost are the main aim of value engineeringlikewise what Miles LD had explained once that “component cost reduction was an effectiveand popular way to improve „value‟ when direct labor and material cost determined thesuccess of a product”.In the market, there are more kind of motorcycles. However, they are still needs to developedin many ways. To improve value, finishing should be perfect and outer look must beattractive.QualityProduct quality is defined as “its ability to fulfill the customer‟s needs and expectations”.Therefore the new motorcycle should be physically perfect and also rider must be proud ofhis motorcycle. By improving brand position using adverting methods and marketingstrategies will help to customer‟s imagination. Comfort ability and overall cost effectivenessis improve quality of motorcycle. Page | 23
  24. 24. 4.3 Financial Implication of the new productNPV calculation for motorcycle  Assumed Discount Rate = 5%  Formula for Discount Factor = 1/(1+r)n In here, r = Discount Rate n = no of years  Assume the project is completed in year 0  Initial Cost for motorcycle =200,000 .00  Expecting annual cost = 100,000.00  Expecting benefit in each year = 400,000.00  NPV analysis for coming 4 years. Page | 24
  25. 25. 4.3.1 Discount FactorDF = 1/ (1+r) nFor year 0,DF = 1/ (1+0.05)0 =1For year 1, DF = 1/(1+0.05)1 = 0.95For year 2, DF = 1/ (1+0.05)2 = 0.90For year 3, DF = 1/(1+0.05)3 = 0.86For year 4, DF = 1/(1+0.05) = 0.82 Table 11YEAR DISCOUNT FACTOR00 1.0001 0.9502 0.9003 0.8604 0.82 Page | 25
  26. 26. 4.3.2 Calculate of NPV for Motorcycle. Table 12 YEAR TOTAL 0 1 2 3 4Cost © 200,000.00 100,000.00 100,000.00 100,000.00 100,000.00DiscountFactor(DF) 1.00 0.95 0.90 0.86 0.82DiscountedCost (cxDF) 300,000.00 95,000.00 90,000.00 86,000.00 82,000.00 353,000.00Benefit (B) 0 400,000.00 400,000.00 400,000.00 400,000.00DiscountFactor(DF) 1.00 0.95 0.90 0.86 0.82DiscountedBenefit(BxDF) 0.00 380,000.00 360,000.00 354,000.00 328,000.00 1412,000.00DiscountedBenefit-Discounted 1059,000.00Cost (DB-DC) -300000.00 285,000.00 270,000.00 258,000.00 246,000.00CumilativeBenefits- Costs 150,000.00 115,000.00 395,000.00 643,000.00 889,000.00 NPV Page | 26
  27. 27. 4.3.3 Return On Investment (ROI) ROI = Total Discounted Benefits - Total Discounted Costs x 100% Discounted Costs ROI = NPV x 100% Discounted CostsROI calculation for motorcycle, ROI = NPV x 100% Discounted Costs ROI = (1059000.00/ 253,000.00) x 100% ROI= 300% Page | 27
  28. 28. 5. ConclusionMotorcycle industry in India has now emerged as one of the most innovative industries. Inthis report i compare India‟s 2nd largest motorcycles manufacturer (Bajaj auto) and acompany that tries to gain a market share (LML).One of main reasons for success was bajaj has strong R&D unit and attractive marketingstrategy. Now most companies are increasing their investing in R&D. By offering a numberof fiscal incentives government has encouraged this process. But most companies are focuson developing fuel efficient technologies. Most People who are aged above 40 has someproblem riding because of they are affected with back pain. Comfort ability is one factor thatcan be develop to gain the market. Most low/middle cost motorcycles has shock absorbersthat has less life time.Because of the market competition manufacturers have to reduce the motorcycle prices. Itsdirectly effect to net profit. Therefore companies are targeting selling more motorcycles withfewer profit margins. Therefore it is very difficult to come to the market, small company likeLML without any special product. LML can be move to eco-friendly motorcycles likeelectric motorcycles. There is a growing market for eco-friendly motorcycles.All big manufacturers are focusing on domestic market. But there are more marketingopportunities in export market. They can be identifying by doing researches in othercountries. There is a market opportunity for motorcycle manufacturers in after sales market inspite of the motorcycles market. The manufacturer can provide the Services to maintenanceand repair with original spare parts. It will increase spare part sale and gain extra profit.Still Indian manufactures have to go long way for the sport motorcycle segment. Globally ithas big market. For that they have develop new technologies by work with expertise aroundthe world.My final conclusion is that both companies have more unidentified customer needs that canbe filled by their products. By using Engineering and marketing strategies they can filledthese gaps. Page | 28
  29. 29. 6. ReferencesUnknown(n. d.) Bajajauto official web site[online] available from< http://www.bajajauto.com/bajaj_investor_annual_report.asp> [05 January 2013]Unknown(n. d.) Lmlindia official web site [online] available from<http://www.lmlindia.com/> [02 January 2013]Unknown(n. d.)indian government web site [online] available from< http://cci.gov.in/images/media/ResearchReports/AnujInt200711.pdf> [27 December 2012]Unknown(n. d.) Society of Indian Automobile Manufacturers (SIAM) [online] available from< http://www.siamindia.com/scripts/market-share.aspx> [27 December 2012]Unknown (n. d.) wikipeadia web site[online] available from<http://en.wikipedia.org> [24 December 2012]Unknown(n. d.) Investment Information and Credit Rating Agency of India Limited web site[online] available from< http://www.icra.in/> [02 January 2013] Page | 29

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