2. SITUATIONAL ANALYSIS :-
• Bajaj Auto Limited is a global two-wheeler and three-wheeler manufacturing
company.
• Bajaj Auto manufactures and sells motorcycles, scooters and auto rickshaws.
• Bajaj Auto is a part of the Bajaj Group. It was founded by Jamnalal
Bajaj in Rajasthan in the 1940s.
• Market share :- 25%
• Discovery range alone adding 70,000 to 80,000 units per month
4. BAJAJ AUTO SWOT ANALYSIS :-
STRENGTHS
1. Excellent brand presence and marketing in India make Bajaj Auto a popular
company.
2. Extensive research and development focus and highly experienced player in
the motorcycle segment
3. Widespread distribution network of Bajaj Auto across India
4. Bajaj Auto has a wide product range in terms of price, quality and categories
5. Featured in the Forbes Global brands list
6. It has more than 9000 people employed in the organization
5. WEAKNESSES
1. Bajaj Auto is still not a global brand despite high volume production.
2. Bajaj Auto has been involved in Labor and wage issues in the recent past. This
damages Bajaj’s image and it also has an adverse effect on the production.
3. The company is losing out on a huge market by not re-entering the scooter market.
6. OPPORTUNITIES
1. Bajaj Auto says its $2,500 car, which it is building with Renault and Nissan Motor,
will aim at a fuel-efficiency of 30 km per liter.
2. The three wheeler market is expected to grow at a CAGR of 4.4% to approximately
reach $4.2 billion by 2017.
3. Premium sports bikes for urban areas
4. Constant growth in the two-wheeler segment. Bajaj’s image of being an innovative
company will also be maintained.
7. THREATS
1. The 2-wheeler market in India is highly competitive with various top brands such as
Global and Indian giants such as Suzuki, Hero Motocorp, TVS etc. fighting to capture
market share.
2. In comparison with other countries, India has a higher lending rate which is growing.
3. Environmental regulations are constantly updated in India and hence the companies
have to constantly modify their products in order to fall in line with the regulations and
hence, this may adversely affect company’s financial condition.
8. PEST ANALYSIS :-
POLITICAL FACTORS
• It is reported that its total sales of the products distributes equally well within the country and outside
the country.
• Has received assistance for development of vehicles propelled by alternate energy sources from Indian
Government.
• It aimed at gaining integrated, phased and self-sustained growth of the company to flourish outside
India.
9. ECONOMIC FACTORS
• Inflation, recession and currency are three important economic factors that Bajaj Auto Ltd noticed.
• The economy of the company fell down tremendously around 2000 due to ignorance towards
customers.
• It laid easy installment rules with less interest rate thus makes more segment people to go for its product
products.
10. SOCIAL FACTORS
• As the purchasing power of the common has risen in various markets across the world the purchasing of
these transport necessities have gone up.
• Purchasing these products prove to be beneficial for the common man as their price levels are
comparably suitable for the common mans pockets.
• Possessing these products(two wheelers) are considered as status symbols in many societies.
11. TECHNOLOGICAL FACTORS
• Bajaj Auto Ltd has invested largely in its product research and development field and thus its products
are more consumer friendly.
• One of the most innovative and technologically advancements could be seen in its two-wheeler section
that gives a great experience to the bikers.
• Aiming at best fuel economy of transport.
12. PORTERS FIVE FORCE MODEL :-
Supplier Bargaining Power: Suppliers
of auto components are fragmented
and are extremely critical for this
industry since most of the
component work is outsourced.
Proper supply chain management is a
costly yet critical need.
Buyer's Bargaining Power: Buyers in
automobile market have more choice to
choose from and the increasing
competition is driving the bargaining
power of customers uphill. With more
models to choose from in almost all
categories, the market forces have
empowered the buyers to a large
extent.
Substitutes: There is no perfect substitute to this
industry. Also, if there is any substitute to a two-
wheeler, Bajaj has presence in it. Cars, which
again are a mode of transport, do never directly
compete or come in consideration while
selecting a two-wheeler, cycles do never even
compete with the low entry level moped for
even this choice comes at a comparatively higher
economic potential.
Industry Rivalry: The industry rivalry is
extremely high with any product being
matched in a few months by competitor. This
instinct of the industry is primarily driven by
the technical capabilities acquired over years
of gestation under the technical
collaboration with international players.
Threads of New Entry:- Entry barriers are high
also need huge investments. And well established
people are already existing.
13. BCG MATRIX OF BAJAJ AUTO :-
STAR QUESTION MARK
CASH COW DOGS
• Kristal• Discover 125cc
• Pulsar 150cc • Pulsar 200cc
• Platina
• Avenger 220cc
• Bajaj auto rickshaws
• XCD 125cc
14. COMPETITOR ANALYSIS :-
• Objective :- To cater the market needs of transportation by providing 2
wheeler and 3 wheeler vehicles.
• Segment :- Middle-class people who want a bike that is stylish and gives a
good mileage
• Target Group:- Middle class youth from the age bracket of 25-35
• Positioning:- Two-wheelers for every Indian
15.
16. MARKETING MIX OF BAJAJ
• PRODUCT :-
Motorcycles include CT 100, Bajaj Pulsar, Bajaj Dominar, Bajaj Avenger, Bajaj Discover, Bajaj
Platina, Ninja and the Bajaj V.
For intra urban commutes Bajaj Auto also showcased the Re60 which was based on an auto
rickshaw.
The soon to be launched Bajaj Auto cute, a very small car for local movement within cities.
the locally produced KTM line up including Rc 390, Rc 200, Duke 200 and Duke 390 complete its
product line up for India.
17. MARKETING MIX OF BAJAJ
• Place :-
Bajaj Auto has a strong presence spread across India, with its dealerships and manufacturing
plants.
With operations in more than 50 countries Bajaj Auto has truly made its presence felt when it
comes to distribution, sale and service of two wheelers.
Bajaj two wheelers are known for their low cost of ownership and low spare parts cost as well
as easy availability of spares.
With very efficient penetration of spare part dealers even in rural areas, Bajaj Auto caters to
the demands of customers located in even the remotest of places in the country.
18. MARKETING MIX OF BAJAJ
• Price :-
Bajaj Auto has got an extremely competitive pricing strategy in its marketing mix.
Key to capturing of market share and ensuring brand loyalty is the right pricing of products.
Bajaj Auto is armed to the tooth with this knowledge and realizes that low cost of purchase as
well as overall low cost of ownership.
Bajaj Auto also ensures that service costs of all its two wheelers are low and affordable.
Pricing of essential spares such as disk brake pads, as well as consumables such as engine oil
and air filter are priced very competitively.
19. MARKETING MIX OF BAJAJ
• Promotion :-
Bajaj Auto realized the need to reach out to target audiences through the correct use
of promotional activities and advertising campaigns.
Bajaj Auto uses print, TV, online, billboards etc. as a part of its promotion strategy.
For the Bajaj V, patriotism as a tool was utilized to pull the heart strings of
nationalistic Indians.
Currently the hotly advertised ‘free the cute’ campaign on social media networks is
making headlines as it is being seen as the cheapest, most efficient ultimate mobility
solution for urban transportation needs.
20. CUSTOMERS ANALYSIS OF BAJAJ AUTO :-
• Customers of Bajaj Auto range from travel enthusiasts to transporters, to auto
drivers, racers, and students.
• Customers are divided into passenger vehicles segment customers and
commercial vehicle segment customer.
• Passenger segment customers are in the age group of 20-40 years while in
commercial vehicle segment there are retail customers and B2B customers
like transporters who use it for its own business.
21. MARKET SEGMENTATION :-
Segment Price(Rs.) Brands/Models
Standard 30,000 to 40,000 Platina & CT 100
Executive 50,000 to 60,000 Discover(Bajaj)
Premium 60,000 to 77,000 Pulsar 150
Super Premium Above 85,000 Pulsar 180 , Pulsar 220
Cruiser Above 105,000 Avenger 220
22. POSITIONING AND DIFFERENTIATION: THE BAJAJ WAY
• The strategic perspective, based on which bajaj set about conceiving and developing this
product.
• As we know well, in about half the motorcycle market, comprising the entry and the sports
segments, bajaj is already, by far the leader. But the middle of the market, which is about…
the other half of the market, has been elusive as far as they concerned.
• Typically, commuters buy 100 or 125 cc motorcycles in that space, about 500,000 motorcycles
every month.
• bajaj said to ourselves that we would keep things simple and go for this market with two
things. One, of course, is a good product. And secondly, a good story – or a good position for
the product.
23. An Innovative company can apply new thinking faster than
its competitors or surprise its customers by offering
products that makes the customers first realize its need and
then consume it.
CUSTOMER VALUE PROPOSITION :-
24. • The target quite simply is to allow Triumph to address a segment it currently does not
operate in, while leveraging Bajaj's strengths as a low-cost, high-margins manufacturer.
• The partnership sees no equity in play, and very clearly spells out joint development of a
range of 'mid-capacity' motorcycles.
• In the Indian and largely global contexts that is the 250-500cc space, where Triumph currently
has no products.
• The first bike will take two to three years to be developed and hit the roads. The
development will also examine the potential to launch more than one product using similar
aggregates.
NEW PRODUCT DEVELOPMENT :-
BAJAJ-TRIUMPH PARTNERSHIP: NEW PRODUCTS TO BE MADE BY BAJAJ
AUTO, BADGED TRIUMPH
25. BRAND VALUE :-
• The Company lives its brand by its values of Learning, Innovation, Perfection,
• Speed and Transparency. Bajaj will constantly inspire confidence through
• excitement engineering.
• Learning : Learning is how we ensure proactivity.
• Innovation : Innovation is how we create the future.
• Perfection : Perfection is how we set new standards.
• Speed: Speed is how we convey clear conviction
• Transparency : Transparency is how we characterize ourselves