Automobile and FMCG Industries.

2.  Marketing strategies are used to achieve meaningful and measurable results in
the market.
 Marketing strategy involves careful and precise scanning of the internal and
external environments. Internal environmental factors include the marketing mix
and performance analysis. External environmental factors include customer
analysis, competitor analysis, target market analysis, as well as evaluation of any
elements of the technological, economic, cultural or political/legal environment
likely to impact success.
 Marketing strategy is the goal of increasing sales and achieving a
sustainable competitive advantage. Marketing strategy is the key ingredient to
the success of marketing plans and marketing.

3. About FMCG:
 Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are
products that are sold quickly and at relatively low cost.
 Examples include non-durable goods such as soft drinks, toiletries, and grocery
items.
 Though the absolute profit made on FMCG products is relatively small, they
generally sell in large quantities, so the cumulative profit on such products can be
substantial.
 Companies may follow the following marketing strategies:

4. 1.Multibrand Strategy:
 A company often nurtures a number of brands in the same category. There are various
motives for doing this.
 The main rationale behind this strategy is to capture as much of the market share as possible
by trying to cover as many segments as possible, as it is not possible for one brand to cater to
the entire market.
 This also enables the company to lock up more distributer shelf space.
 Example : Hindustan Lever . It has Dove in the ultra premium segment, Lifebuoy for the
economy segment and brands like Rexona, Liril, Lux, Le Sancy for the intervening segment.
2.Product Flanking:
 Refers to the introduction of different combinations of products at different prices, to cover
as many market segments as possible.
 It is basically offering the same product in different sizes and price combinations to tap
diverse market opportunities.
 The idea behind this concept is to flank the core product by offering different variations of
size and price so that the consumer finds some brand to choose from.
 Example: Vicks the cough and cold relieving medicine is now
available in small containers and also as inhalers, cough drops and
cough syrups.

5. 3.Brand Extensions:
 Companies make brand extensions in the hope that the extensions will be able
to ride on the equity of successful brands, and that the new brand will stand
in its own right in the course of time.
 A well respected brand name gives the new product instant recognition and
easier acceptance.
 It enables the company to enter new product categories more easily.
 Example: Amul. With the success of its first product, Amul milk powder, the
company came out with Amul ghee, Amul butter, Amul cheese, Cheese spread,
and finally added Amul chocolates to its portfolio.
4.Building Product Lines:
 Some companies add related new product lines to give the consumer all the
products he/she would like to buy under one umbrella.
 Example: Britannia has adopted a similar marketing strategy. It has introduced
different kinds of biscuits and baked foods in the past few years. By adding a
number of flavours in each product line the company grew in the industry.

7. 5.New Product Development:
 A company can add new products through the acquisition of other
companies or by devoting one’s own efforts on new product
development.
 With the help of new products a company can enter a growing market for
the first time, and supplement its existing product lines.
 Example: Dove by HUL is an example of creating an entirely new premium
segment. For the first time in India, a soap with One-fourth moisturiser
was offered to the consumer.
 It has been positioned for the super premium segment as a skin care
product not as a soap.
6.Innovations in Core Products:
 In the FMCG market, the life of a product is short.
 Marketers continually try to introduce new brands to offer something
new and meet the changing requirements of customer.
 It is prudent for a marketer to innovate from time to time both by
technological expertise as well as from the consumer’s or dealer’s
feedback.
 Such innovations are tried out around the core products of a company.

8. 7.Wide distribution network:
 A very simple way of increasing FMCG company’s market share is by
developing a strong distribution network, preferably in terms of more
locations.
 An extensive distribution system can be developed over time, or the
company many acquire another company which has an extensive distribution
network.
 Example: Brooke Bond, Asian Paints, Hindustan Lever, Union Carbide have
developed a good distribution network.
8.Monitoring the pulse of the consumers:
 Companies spend considerable effort to find out the what, where, how and
when of their consumers.
 Well known companies frequently undertake marketing research to find out
more about their consumers and how to satisfy their needs and wants in a
better manner.
 It helps them to monitor the pulse of their buyers.
 Example: We may cite here the famous Marketing Research about instant
coffee.

9. 9.Advertising and Media coverage:
 Advertising is required to build awareness about an FMCG or brand which is
available in the market but not many people might know about it.
 Informative advertising figures heavily in the pioneering stage of a product
category, where the objective is to build primary demand.
 Persuasive advertising becomes important in the competitive stage where
the objective is to build a selective demand for a particular brand.
 Reminder advertising is quite common with mature products.
 Example: Expensive four colour Coca-Cola ads in magazines tries to remind
people to purchase it.
10.Sales promotion:
 Sales promotions offer a direct incentive to buy more in the short term.
 They are designed to stimulate quicker and/or greater purchase of particular
products by consumers or the trade.
 Example : Pepsi has been doing a large amount of promotions since the time
it entered India. Pepsi cassettes and T-shirts have been offered to young
people all over the country.

11.  The Bajaj Group is amongst the top 10 business houses in India.
 Its footprint stretches over a wide range of industries, spanning automobiles
(two-wheelers and three-wheelers), home appliances, lighting, iron and steel,
insurance, travel and finance.
 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 across
several countries in Latin America, Africa, Middle East, South and South East Asia.

13.  Developed by Bajaj Auto in association with designer Glynn Kerr Tokyo R&D,
Pulsar was first launched on November 24, 2001.
 At that time, the Indian two-wheeler industry was populated by 80-100cc bikes
with less power capacity.
 Bajaj had expected Pulsar to attract young power biking lovers of the country. The
whole project cost Rs 100 crores (Rs 1 billion).

17.  Born as the Fastest Indian bike, the Pulsar 220F is a performance machine for the
true enthusiasts. Its powerful 4 stroke, 220 cc DTS-i engine delivers 21Ps/bhp
power and a healthy 19 Nm torque, making it the most powerful bike in its
category. Designed for speed and performance, the Pulsar 220 is perfect for
dragging in a straight dash or handling corners.
 It is a great bike for people looking for power and a comfortable ride on the
Indian roads. It provides an easy top gear riding experience with less gear
changes and instant pick up in any gear.

18.  For Bajaj Auto, the supply chain encompasses the process from vendors to the
final customers via manufacturing. Therefore, the company’s supply chain
involves as much the vendors and the procurement – to – payment logistics, as it
does the manufacturing to selling processes, or the order to cash system.
Price:
 The price of Bajaj Pulsar 220F depends on the city. For Karnataka, Ex – Showroom
price is 82k whereas the On Road price is 90,000 (Approx.)
 Bajaj Pulsar is one of the premier segment bikes which is reflected by its pricing.
In the near future the price of Pulsar is bound to increase because of the pressure
on profit margin of the company.

19.  Bajaj’s dealers had been selling scooters; they had little idea how to sell
motorcycles. So the entire dealership network was trained to sell motorcycles.
 The introduction of Pulsar was executed with a completely different approach
and a “Definitely Male” positioning. Bajaj kept coming up with better products
like the Pulsar 180cc, then the Pulsar DTSi followed by the 200cc and 220cc
Pulsars.
 The concept of “Definitely Male” was well accepted by the people and Bajaj came
out with some astonishing ads. Though the DTSi technology was new, people
accepted it very well. It easily conveyed the message it wanted to. In 2004, Bajaj
completely revamped its identity, gave up the “Humara Bajaj” umbrella and came
up with a completely new enhanced positioning focusing more on the technology
and experience.
 With a new, sharp brand logo, Bajaj pressed itself as “Digital Biking” and
“Distinctly Ahead”.
 The company has been regularly making alterations to it to make the motorbike
look fresh at all times.

20.  Pulsar Mania - An advertisement showing some bikers performing various stunts
on their Pulsar. An attempt to position itself as India’s true sports bike.
 MTV Stunt Mania – After the success of Pulsar amongst stunt bikers, Bajaj
decided to take a step forward by creating a new show called “Stunt Mania” on
MTV. Stunt bikers from all across India compete to prove heir skills.
 GhostRyderz – A group of stunt bikers that emerged as the winners of “MTV Stunt
Mania” (Bajaj’s own show) are sponsored by Bajaj for various stunt tournaments.

22.  Excellent brand name.
 High product quality .
 High performance, speed and pickup.
 Focus on customer delight besides customer satisfaction
 Latest Hi-Tech core concepts of production and quality
 Passion for quality and safety built in to every bike
 Hydraulic disk brakes front and rear for maximum safety. Disks are high
quality, stress relieved steel
 Tyres are designed for optimum performance on wet and dry road
traction.

23.  The recent trend of volume driven growth is likely to get pronounced. The
growing competitive pressure in the 2 wheeler market can limit the scope for
expansion in profitability.
 The degree of success enjoyed by model introductions would be critical
performance determinant.
 Mileage on a lower side due to focus on power.
 High cost in various variants.

24.  Bajaj, which uses Kawasaki Heavy Industries Ltd. Technology for some models,
faces growing competitions from various brands.
 Bajaj, overtaken as India’s top 2 wheeler maker in 2002 by Hero Honda Motors
Ltd. (Now Hero Motor Corp.), has benefited from rising incomes in Asia’s third
largest economy, besides cheaper loans and a shift in preference to high value
motorbikes from scooters.
 Expansion in rural and tier-2&3 cities .
 Cost management thus reducing the price of the bike.
 Developmental changes thus reducing bike's weight.
 Untapped market above 200 cc in India.
 Growing world demand for entry level motorcycles.

25.  New entrants in the market such as Honda and Yamaha have been eating up the
market share of Pulsar by launching new models and variants.
 Low mileage is another problem of Pulsar. Fuel prices have increased dramatically
over the last few years in India which has customers thinking twice whether to
opt for a high performance bike or a 2 wheeler which offers good mileage.
 Low-cost bikes still seem to be the crowd favourite in rural markets.

26. Thank you