A STUDY OF THE MARKETING STRATEGIES OF BAJAJ

AUTOMOBILE

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE

DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION 2015-2018

UNDER THE GUIDANCE OF SUBMITTED BY:

Ms. SHWETA RASTOGI HARDIK ABICHANDANI

Assistant Professor, MAIMS 04114701715

Maharaja Agrasen Institute of Management Studies

Affiliated to Guru Gobind Singh Indraprastha University, Delhi

PSP Area, Plot No. 1, Sector 22, Rohini, Delhi 110086

i
 STUDENT DECLARATION

This is to certify that I have completed the project titled A STUDY OF THE
MARKETING STRATEGIES OF BAJAJ AUTOMOBILE under the guidance of
Ms. Shweta Rastogi in partial fulfillment of requirement of the award of degree of
bachelor of business administration at maharaja Agrasen institute of management
studies, Delhi.

This is an original piece of work and I have not submitted earlier elsewhere.

HARDIK ABICHANDANI
04114701715

1
 CERTIFICATE

This is to certify that the project titled A STUDY OF THE MARKETING STRATEGIES OF
BAJAJ AUTOMOBILE is a confide work carried out by HARDIK ABICHANDANI /BBA
(Gen.) under the guidance of Ms. Shweta Rastogi, ASSISTANT Professor, Department of
Business Administration.

To the best of my knowledge the report is original and has not been copied or submitted
anywhere else. It is independent work done by him.

DATE:

(Ms. Shweta Rastogi)

2
 ACKNOWLEDGEMENT

I take this opportunity to express my sincere gratitude to all concerned with the successful
completion of project. First of all I would like to thank Ms. Shweta Rastogi for providing me this
opportunity to do the project and giving me this opportunity to learn a lot about the distribution
pattern as well as customer expectation and their perception about my project report.

It is worthless if I do not pay my sincere thanks to all faculty members for their positive co-
operation to complete my project in a significance manner.

HARDIK ABICHANDANI

04114701715

BBA (GEN.) 3rd SEMESTER

3
 EXECUTIVE SUMMARY

The project was carried out for understanding the marketing strategies of Bajaj automobiles. Bajaj
automobile was established in November 29, 1945, they are old player in automobile sector. They
follow values such as Integrity, teamwork, respect, professionalism, & Mission. The segment of
automobiles we are considering here is two wheelers. The product out of which have chosen for
research is bikes. This research helps us in finding out the customers view regarding the product,
Services and awareness by promotion and also identifying the market potential of the product
offered by the Bajaj automobiles.

4
 TABLE OF CONTENTS

PAGE NO.

Student Declaration ii

Certificate iii

Acknowledgement iv

Executive Summary v

Chapter 1 : Introduction of the project 1-7

Chapter 2 : Profile of the organization 8-44

Chapter 3 : Analysis & interpretation of data 45-55

Chapter 4 Conclusion & recommendation 56-59

Bibliography 60-61

Questionnaire

5
 Chapter 1

INTRODUCTION

6
OVERVIEW OF THE INDUSTRY

Motorcycles have made their debut around the 1950s; this section looks at the two wheelers
which have over the years caught the imagination of country. It was in the year 1954 that the
Indian government ordered for total number of 800 motorcycles to man the Pakistani borders. In
came the Bullets which were initially launched in England as a 350cc bike and it was upgraded
to 500cc a year or so later. These bikes have remained unaltered, barring some cosmetic changes
which have undergone over the years. Thus one can say without much of a doubt that the 1955
Bullet was one of the initial hits of the Indian two-wheeler industry and till today it continues to
be a darling of the motorcycle enthusiasts.

Enfield Bullet had a close competition with another sturdy bike named Rajdoot; as the bike was
strong enough to handle the rough Indian roads. The company had roped in Indian He-man
Dharmendra for the promotion of the bike. With more than 1.6 million vehicles on the road the
Rajdoot motorcycle was one of the initial hits of the earlier years of two-wheeler history in the
country.

When heavy motorcycles were the order of the day, a relatively lighter bike had caught on the
imagination of the Indian two wheeler user. Ind- Suzukia bike launched by the then TVS Suzuki
group was an instant hit; however the bike could not sustain its initial success due to the high
import content in the vehicle and less of localization.

In scooters Bajaj Chetak has been hugely responsible for adding momentum to the transport system
of the country, till today it remains one of the most successful brands to have come out of the Bajaj
stable.

The scooter is named after the horse of legendary Rana Pratap Singh. These sets of two wheels
have become a part of the Indian milieu and are often considered a representative of the Indian
middle class aspiration. Very few two-wheelers have been able to emulate the success, which Bajaj
Chetak has achieved over the years.

Similarly LML Motors enjoyed a reasonable success with the launch of LML Select which came
with new age technology and improved performance.

7
Today newer models of two-wheeler are entering the market everyday, slowly pushing these
names down the memory lane. However names like Chetak, Rajdoot and Bullet will always find a
mention in the history of two-wheelers in the country.

The Indian two-wheeler industry is dominated by three players, Bajaj, Hero and TVS Suzuki, who
account for 80 percent of the total two-wheeler market. The other players including Kinetic
Engineering, LML and others account for the remaining 20 percent of the market. The industry
can be divided into three broad segments: Scooters, motorcycles and mopeds. In the scooters
segment Bajaj is the market leader, Hero is the market leader in the motorcycles segment and in
the segment of mopeds, TVS controls the major chunk of the market.

Most Indian players in the two-wheeler industry had been into some kind of strategic alliance,
technical collaboration or joint venture with foreign players, mainly Japanese firms. Hero-Honda,
is a joint venture between the Munjal-promoted Hero Group and Honda Motor Co. of Japan; TVS-
Suzuki was an alliance with TVS and Suzuki Motors (till September 2001); Bajaj-Kawasaki a joint
venture between Bajaj Motors and Kawasaki; and Yamaha-Escorts, a joint venture between
Escorts and Yamaha Motor Corp. (till June 2001).

Indian automobile market, be it the two-wheeler segment, the three-wheeler segment or the car
segment, is yet to come to a stage where all the models are developed indigenously. For years now,
Indian companies have been dependent on their foreign joint venture partners or collaborators to
provide them with the technical know-how. This trend too is in for a change. Leading the pack in
this arena is Bajaj, which has been Successful at designing models in-house. Bajaj's Saffire and
Spirit have been able to bag the scooter of the year award for 2003 and 2004 respectively. In fact,
its Spirit was adjudged the "Indigenous product design of the year" for the year 2000. The recently
launched Pulsar from the Bajaj stable is yet another home-grown product, albeit in tandem with
Japanese design house, Tokyo R&D. Bajaj has been laying increased emphasis on its R&D so as
to be able to launch new products to tap the markets at all possible price points. Other companies
too are adapting the strategy of designing and developing products indigenously. TVS's Victor is
yet another development in this direction and this indigenously built model has been a success in
the markets.

8
A two-wheeler is used as a personal/family vehicle or a goods carrier in the developing countries,
whereas it is confined to sports/racing (heavy motorcycles) or short distance shopping (mopeds)
in developed countries.

The world two-wheeler market is dominated by Japan. Japanese manufacturers account for around
65% of the total two-wheeler production in the world. However, production within Japan has been
declining due to lower domestic demand and shift in manufacturing base outside the country. Japan
is also the world's largest exporter of two-wheelers in the world controlling around 75% of the
world trade. Its major markets are China, USA and Europe. In terms of player positions, Honda
Motors Corporation, Yamaha Motors and Suzuki Motors Corporation share the top three slots in
the world two-wheeler market. The table below shows the production and sales figures of
motorcycles and scooters in Japan during the past decade More than 50% of the production in
Japan is exported out of the country. This scenario contrasts directly with the Indian scenario. In
India, only about 2% of the production in FY99 was exported

The Asian continent is the largest user of two-wheelers in the world. This is due to poor road
infrastructure and low per capita income, restrictive policy on car industry.

The technology for two-wheelers is not as well developed as for car industry. This is due to
oligopoly between top five players in the segment, compared to thirty manufacturers in the car
industry

9
OBJECTIVES

But to capture the major amount of BIKES segment Bajaj would have to make a huge dent
in the EXECUTIVE LEVEL segment of bikes (which is the biggest segment and has a
market share of 65 percent) which till now Bajaj has been unable to do.

Will Bajaj be able to capture the EXECUTIVE LEVEL segment

What are the roadblocks Bajaj is facing in capturing the EXECUTIVE LEVEL segment

To do a comparative market study of Bajaj Bikes and other major market players and to
come up with reasons why Bajaj has been unable to break into the EXECUTIVE LEVEL
segment.

METHODOLOGY

Marketing research is the process collecting and analyzing marketing information and
ultimately arrived at certain conclusion Management in any organization need information about
potential marketing plans and to change in the market place. Marketing research includes all the
activities that enable an organization to obtain the information. This research is very important in
strategy formation and feedback of any organizational plan.

RESEARCH DESIGN

1) Study of Secondary Data: The quickest and the most economical way from researchers is
to find possible hypothesis is to take the advantage of the work done earlier and thus utilize
their efforts.

10
TYPES OF RESEARCH

Exploratory research: In well-established fields of study, hypotheses usually are drawn from
the ideas developed in previous research studies or are derived from theory. Hypotheses are
tentative answers to questions that serve as guides for most of the research.

DATA SOURCES

SECONDARY DATA

SECONDARY DATA:-

When an investigator uses the data that has been already collected by others is called secondary
data. The secondary data could be collected from Journals, Reports and Various Publications. The
advantages of secondary data can be economical, both in the term of money and time spent. The
researcher of the reporter also did the same and collected secondary from various Internet sites
like Google.com.altavista.com and many more. The researchers of the reporter also visited various
libraries for collection of the introduction part.

Basic methods of collecting secondary data:

1) Magazines

2) Books

3) Brochure

4) Web Sites

11
LIMITATIONS

The study could not be made that comprehensive due to time constraints and due to small sample
size because this study is only on the basis of Bajaj Auto Ltd.

Time constraints
Geographical selectivity in study limiting to Delhi city only
Sample is limited to Delhi and NCR

Sample is only from metro so generalizations may be misleading

Biases and non-cooperation of the respondents

12
 Chapter 2
Profile of the organization

13
PROFILE OF THE ORGANIZATION

Established on November 29, 1945 as M/s Bachraj Trading Corporation Private Limited 1945
BAJAJ AUTO has come a long way to make its presence felt. In 1948 it began its selling activities
in India by importing two- and three-wheelers. In 1959 Bajaj Auto obtained license from the
Government of India to manufacture two- and three-wheelers and in 1960 Bajaj Auto became a
public limited company. The company achieved the landmark of 1,00,000th vehicle in 1970. 1972
and 1976 are the landmark years for Bajaj as these are the years when the company introduced its
Bajaj Chetak and Bajaj Super models respectively, which are the two major success stories of the
company. 1977 is the year of pride for Bajaj as it achieves production and sales of 100,000 vehicles
in one financial year for the first time; with 1986 raising the figure to 5, 00,000 vehicles.

November 29, 1995 brought with it four celebrations for Bajaj Auto. Bajaj Auto completes 50
years. It signed agreements with Kubota of Japan for the development of diesel engines for three-
wheelers and with Tokyo R&D for non-geared Scooter and moped development. The Bajaj Super
Excel is introduced. One million vehicles were produced and sold in this financial year.

In 1997 The Kawasaki Bajaj Boxer was launched. In January, 2001 The Eliminator is launched
and in November Bajaj Auto launched its latest offering in the premium bike segment Pulsar. In
2003 Bajaj launched three new bikes

1. February Caliber115 "Hoodibabaa!"

2. July Bajaj Wind 125

3. October Pulsar DTS-i is launched.

4. May 2004 Bajaj CT100 was launched and in

5. September 2004 the company launched the Bajaj Discover DTS-i, its latest offering in bike
segment.

14
CURRENT SCENARIO

Riding on the back of growing motorcycle sales and a resurgent scooter market, two-wheeler sales
surged by a robust 13.2 per cent during the first five months of this year.

Two-wheeler sales in the domestic market, second-biggest in the world after China, reached 23.3
lakh units during April-August 2004 over 20.6 lakh units during the year ago period, data compiled
by the Society of Indian Automobile Manufacturers (SIAM) showed.

Motorcycle and step-thru sales, which constituted over 75 per cent of the total two-wheeler sales,
rose by 14 per cent at 18.1 lakh units

Scooter and scooty sales rode northward by 11.4 per cent at 3.86 lakh units while its sibling,
mopeds, posted an 8.55 per cent rise at 1.32 lakh units.

Overall Market Composition of Two-Wheeler

Currently the Bajaj Auto is in the safe hands of Rahul Bajaj with Madhur Bajaj assisting him. The
current managerial positions at Bajaj are:

15
Board of Directors

Rahul Bajaj Chairman & Managing Director

Madhur Bajaj Vice Chairman & Whole-Time Director

Kantikumar R. Podar Director

Shekhar Bajaj Director

D.J. Balaji Rao Director

D.S. Mehta Whole-Time Director

J.N. Godrej Director

S.H. Khan Director

Rajiv Bajaj Joint Managing Director

Mrs. Suman Kirloskar Director

Naresh Chandra Director

Nanoo Pamnani Director

Tarun Das Director

Manish Kejriwal Director

Sanjiv Bajaj Executive Director

Registered under the Indian Companies Act, VII of 1913

REGISTERED OFFICE: Akurdi, Pune

PLANTS: 1. Akurdi, Pune

2. Bajaj Nagar, Waluj, Aurangabad

3. Chakan Industrial Area, Chakan, Pune

16
Kawasaki

Bajaj Auto has a technical tie-up with Kawasaki Heavy Industries of Japan to produce a range of
the latest, state-of-art two-wheelers in India. Since the tie-up in 1986, Bajaj Auto has launched
KB100, KB RTZ, KB125, 4S, 4S Champion, Boxer, Caliber, Caliber115, Wind125 and India's
first real cruiser bike, the Kawasaki Bajaj Eliminator.

A Fortune 500 company with a turnover of USD 10 billion (Rs. 45,840 crore), Kawasaki Heavy
Industries has crafted new technologies for over a hundred years. These technologies have
redefined space systems, aircrafts, jet engines, ships, locomotive, energy plants, construction
machinery, automation systems, apart from a range of high quality, high reliability two-wheelers.

Kawasaki has given the world its legendary series of 600-1200cc Ninja and 1600 Vulcan bikes.
Straight from Kawasaki design boards, the Kawasaki Bajaj Eliminator redefines the pleasure of
"biking" in looks as well as performance.

17
Product Award Award Body

General Best Two-wheeler Company NDTV Profit Business

Leadership Awards

Pulsar Ranked First in 'TOP 30 4Ps Power Brand Awards

AUTOMOBILE BRANDS OF
INDIA'

Bajaj Auto, First prize for category IMTMA-SIEMENS Productivity

Waluj "Productivity Thru Quality" Championship Award 2007

Mr. Rajiv Bajaj Rashtrabhusan Award FIE (Fuel Instruments and

Engineering)

Mr. Rahul Lakshya Business Visionary NITIE

Bajaj Award

Bajaj Discover Highest customer satisfaction in TNS Voice of Customer

135 DTS-i Upper Executive Mc Segment Awards

XCD 125 DTS- Bike of the Year 2008 CNBC-TV18 Auto car Auto
Si Awards

XCD 125 DTS- Award for motorcycle up to NDTV Profit Car India and Bike
Si 125cc 2008 India Awards

18
XCD 125 DTS- Bike of the Year 2008 Business Standard Motoring
Si

Pulsar 220 Bike of the Year 2008 Overdrive

DTS-Fi

Pulsar 220 Bike of the Year 2008 NDTV Profit Car India and Bike
DTS-Fi India Awards

Rural Customer Responsive Business Avaya Global Connect-

Financing Practice Economic Times

HR HR Initiative of the Year Automonitor

General Bike Manufacturer of the Year Automonitor

2007

Pulsar 220 IMOTY Award-Indian All Auto Mags-Overdrive,

DTS-Fi Motorcycle of the Year AutoCar, BS, Bike Top Gear

19
GLOBAL PRESENCE

To add to the above-mentioned aspects of Bajaj Auto, it has also established itself in the world
arena. Bajaj Global has distribution network which covers over 50 countries like Sri Lanka,
Mexico, Bangladesh, Columbia, Guatemala, Peru, Egypt, Iran and Indonesia. To its credit, the
company exported 156,007 units in 2003-04. It is also one of the largest exporters of three-
wheelers with over 65,797 units exported in 2003-04, showing a 66 per cent growth in total exports
in 2003-04. In its global market all products customized as per market needs.

COMPANY BEFORE INDEPENDENCE:

The Bajaj group came into existence during the turmoil and the heady euphoria of Indias freedom
struggle. Jamnalal Bajaj, founder of the Bajaj group, was a Confident and disciple of Mahatma
Gandhi, and was deeply involved in the effort for freedom. He had all the qualities of great
entrepreneur, which are visible by the characteristics on which he laid the foundation of the
company. The integrity, dedication, resourcefulness and determination to succeed which are
characteristic of the company today, are often traced back to its birth during those long days of
relentless devotion to a common cause.

COMPANY AFTER INDEPENDENCE:

Kamalnayan, the eldest son of Jamnalal Bajaj, succeeded his father in 1942, at the age of twenty-
seven. Putting the nation before business, he devoted himself to the latter only after India achieved
independence in 1947. But when he did so, He put his heart and soul into it. Within a short while,
he not only consolidated the group but also diversified into various manufacturing activities,
elevating the group up to the status it enjoys till this day.

20
COMPANY IN PRESENT TIME:

Rahul Bajaj today heads the group. He has been the chief executive officer of Bajaj since 1968
and is recognized as one of the most outstanding business leader in India. As dynamic and
ambitious as his illustrious predecessors, he has been recognized for his achievement at various
national and international forums.

Bajaj is currently Indias largest two wheeler manufacturers and one of the biggest in the world.
Bajaj has long left behind its annual turnover of Rs. 72 Million (1968), to currently register an
impressive figure of Rs. 42.16 billion (US$ 936 million).

Bajaj Auto Ltd. (BAL) has clocked a 19 per cent growth in two wheeler sales in April 2004 at
1,05,247 units as compared to 88,749 units in April 2003. It recorded a 22 per cent rise in two and
three wheelers at 1, 21,399 for April as against 99,430 units in the same period last year

COMPANIES INTERNATIONAL STRATEGY:

The company manufactures world acclaimed products under license or in collaboration with other
manufacturers and in 1995 produced more than one million vehicles for markets in 70 countries in
Asia, Europe, the Americas and Africa. Continents where Bajaj Auto vehicles have already
logged billions of kilometers. Bajaj Auto goes to extremes to ensure quality assurance. Most
components are manufactured on state of the art, automated machines and a typical scooter and its
component parts go through some 4000-quality checks before the unit is finally tested on a
dynamometer. Japanese type quality circles standards are maintained. This has resulted in the
World Bank recognizing Bajaj Auto products as

Some of the finest products in the motor industry. Bajaj Auto Ltd. of India has recently entered
into agreements with Kawasaki Industries of Japan and Chrysler Motor Corporation of America
for future joint manufacture of products.

21
TWO and three wheeler manufacturer Bajaj Auto Ltd. (BAL) has set its sights firmly on the
overseas market and is firming up a comprehensive market development strategy for which it is
placing teams in strategic markets such as South America and Indonesia for a global strategy.

PHILOSOPHY OF BAJAJ

1. We approach our responsibilities with ambition & resourcefulness.

2. We organize ourselves for a transparent & harmonious flow of work.

3. We respect sound theory & encourage creative experimentation.

4. And we make our workplace a source of pride.

BAJAJ BELIEVES IN

TRANSPARENCY:- A commitment that the business is managed along transparent line

FAIRNESS:- To all stakeholders in company, but especially to minority shareholders.

DISCLOSURE:- Of all relevant financial importance in an easily understood manner.

SUPERVISION:- Of the company activities by a professionally competent and

independent board of directors.

QUALITY POLICY OF BAJAJ

Everybody at Bajaj auto continues to finally believe in providing the customer VALUE FOR
MONEY FOR YEARS through products and services. Thus Bajaj Auto shares maintain &
improve.

In their decision making, quality, safety & service will be given as much consideration as
productivity, cost & delivery. Quality should be built into every respect of their work life &

22
business operation. Quality improvements & customer satisfaction shall be the responsibility of
every employee.

ENVIRONMENTAL POLICY OF BAJAJ AUTO LTD

BAL manufacturer of two and three wheeler vehicle is committed to prevention of pollution,
continual improvement of our environmental performance & compliance with all the applicable
environmental legislation & re9ulations. Towards this, Bajaj auto shall strive to.

Create a proactive environment management system that addresses all environmentally

significant aspects related to their products & processes.

Minimize the generation of waste & conserve resources through better technology &
practices.

Promote environmental awareness amongst their employees & motivate them to fulfill our
commitments.

Thus everybody as Bajaj auto limited pledge himself towards creating & preserving a cleaner
environment.

OUR BRAND VALUES

Bajaj live our 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 proactively. It is a value that embraces knowledge as the platform for
building well Informed, reasoned, and decisive actions.

23
Innovation

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

Perfection is how we set new standards. It is a value that exhibits our determination to excel by
endeavoring 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.

24
PRODUCT

The product is the physical product or service offered to the consumer. In the case of physical, it
also refers to any services or conveniences that are part of the offering.

Product decisions include aspects such as function, appearance, packaging, service, warranty etc.

Bajaj Stable in Executive Segment

As explained earlier executive segment of bikes holds 65% market share in India. It this segment,
which is much, talked about among the companies because of its huge size.

Bajaj entered this segment much later, which was Bajajs biggest mistake till now when Hero has
already captured the market with its bread and butter bike Splendor and Passion.

Still Bajaj has entered the market and has taken the competition head-on with slew of launches
and builds a bouquet of offerings. The bouquet offer it three bike through which Bajaj is eager to
take a lead in the executive segment as well, which will also help Bajaj to become the leader in
whole of the bike sector in India.

PLATINA 100

25
Engine

Type 4 stroke

Cooling Type Air Cooled

Displacement 111.6 cc

Max Power 9.5bhp@8000rpm

Ignition Type C.D.I

Carburetor Keihin Fie

Transmission Type 4 speed gear box

Electrical System

System 12 V, AC+DC

Head Light 35/35 W

Horn 12 V, DC

Chassis Type Tubular construction

Suspension

Front Suspension Telescopic

Rear Suspension Hydraulic; Double acting, Swing arm type

Tyers

Front Tyre Size 2.50 - 18, 4/6 PR

26
Rear Tyre Size 2.75-18, 6 PR

Brakes

Front Brakes Mechanical expanding shoe, Friction type

Rear Brakes Mechanical expanding shoe, Friction type

Fuel Tank

Fuel Tank Capacity 14 litres

Reserve Capacity 2.5 litres

Dimensions

Overall length 1995 mm

Overall width 775 mm

Overall height 1060 mm

Wheel Base 1245 mm

Kerb Weight 118 kg

Platina 100 is a revamp version of Caliber launched on 3rd March 2007. Caliber that was launched
in June 1998 & was Bajaj first major initiative towards the leadership in executive bike segment
got a good response in its initial period but was unable to meet the competition with Splendor &
Passion of Hero .

The launch of platina 100 is aimed at strengthening its position in the executive motorcycle market
after having dominated in the premium bike segment with Pulsar and Bajaj Boxer in the economy
end.

27
DISCOVER 135

Engine

Type 4 stroke

Cooling Type Air Cooled

Displacement 124.6 cc

Max Power 10.8bhp@8500rpm

Carburettor Keihin Fie

Transmission Type 5 speed gear box

Electrical System

System 12 V, AC+DC

Head Light 35/35 W

28
Horn 12 V, DC

Chssis Type Tubular construction

Suspension

Front Suspension Telescopic

Rear Suspension Hydraulic; Double acting, Swing arm type

Tyres

Front Tyre Size 2.75 - 18, 4/6 PR

Rear Tyre Size 2.75-18, 6 PR

Brakes

Front Brakes Mechanical expanding shoe, Friction type

Rear Brakes Mechanical expanding shoe, Friction type

Fuel Tank

Fuel Tank Capacity 13 litres

Reserve Capacity 2.3 liters

Dimensions

Overall length 1920 mm

Overall width 755 mm

Overall height 1060 mm

29
Wheel Base 1260 mm

Kerb Weight 121 kg

The Bajaj Wind 125 India's first bike designed with the export market in mind. The Wind 125 is
a benchmark amongst executive commuters. It's easily the best motorcycle in this exploding,
tightly crammed segment of Indian market and is the Business Standard Motoring Bike of the
Year 2004. This bike is also known as world bike, as Kawasaki with whose collaboration the bike
is made intends to market the bike globally. The bike is doing very well in the market and is giving
stiff competition to competitors Hero against their bike passion & ambition.

Discover

Bajaj has recently launched the 125cc Discover (formerly codenamed the K-60) in September
2004. Like Pulsor, Discover is a totally indigenous Bajaj offering from its Chakan Plant. The bike
will be having a 125cc engine but will be priced against 100cc bike.

According to the company the bike is having a great potential and will surely make a dent in the
executive segment out of which Hero will be the biggest loser. The company spokesperson also
said that the Caliber would be its first casualty as Discover is going to be very aggressively priced.

30
 CONCEPTUAL DISCUSSION

MARKETING RESEARCH

Marketing research has become an icon in business world. It includes all those activities that enable
an organization to obtain information it needs to make decision about its end. Market mix & its
present & potential customer. The main aim of the research is to find about the truth which is
hidden & which has not discovered at yet.

OBJECTIVE OF MARKETING RESEARCH

1. To gain familiarly with phenomenon or to achieve new.

2. To test a hypothesis of a casual insight into it.

3 To portray accurately the characteristics of particular project relationship between

variables.

4 To determine the frequency with which something occurs.

NEED OF MARKETING RESEARCH

Product positioning

Consumer behavior

Competitor presser

Expanding market

Own weakness

Growing customer expectation

31
 Future prospective

As suppliers of product & services needs to have information about final consumers in order to
make their product & services more effective Today marketing has become a very important
feature of market and every firm goes for marketing research in launching a new product or
forecasting feature trends.

USAGE OF MARKETING RESEARCH

Setting a goal or establishing strategies

Developing a marketing plan

Putting a plan forward

Evaluating plan effectiveness

Marketing information system helps the marketing plan & research works & gives regular
information to manager. Marketing research has evolved out as a tool to avoid risk & uncertainties
& forecast feature. It links the consumer to market through information

INFORMATION USED IN MARKETING ARE OF TWO TYPES

1. INTERNAL INFORMATION

Internal information is within the firm.

2. EXTERNAL INFORMATION

External information consists of primary source & secondary

source.

32
MARKETING RESEARCH PROCESS

Specifies research objectives.

Prepare list of needed information.

Designing data collection.

Selecting sample type.

Organizing & carrying out field work.

Analyzing data & reporting project.

Thus marketing research has become very important in business world it has become a guiding
mark for business world & is definitely going to play a vital role in future. As business involve
risk. Research is used as a tool to minimize risk. But how true the research depends upon the
researcher & is ability to avoid errors & increase knowledge.

Marketing

Marketing is the process of planning and executing the conception, pricing, promotion, and
distribution of goods and service to create exchanges (with customers) that satisfy individual and
organizational objectives.

The major marketing management decisions can be classified in one of the following four
categories:

Product

Price

Place (distribution)

Promotion

33
These variables are known as the marketing mix or the 4 Ps of marketing.

These 4 Ps are the four parameters that the manager can control, subject to internal and external
constraints of the marketing environment. The goal is to make decisions that center the 4 Ps on
the customers in the target market in order to create perceived value and generate a positive
response.

The marketing mix is portrayed in the following diagram:

Bajajs Story

Bajaj auto, which was the undisputed king for decades, woke up one fine morning to find that
scooter were no, no and motorcycles were in. this misjudgment of the market allowed Hero to
race ahead to become number one in 2001.

But there were lessons Hamara Bajaj learnt that it will never forget. In fact, the you just cant beat
a Bajaj, slogan was staring it on the face.

34
Given this situation the company chalked up a strategy plan and decided to do three things:

1. The first part of the strategy was do whats do-able. Having realized that it couldnt
change overnight, the only way to kick-start action was to get into the dogfight. For this it
enlisted the support of Kawasaki Heavy Industries, its technical collaborator for 16 years.
The result was an aggressively priced Boxer, a 100cc motorcycle, in 1997. The bike got a
lackluster response in the initial year but sales zoomed to 58000 in May 2002. Over the
period visibility went up. People who came to buy Bajaj scooter shifted to boxer. The is a
clear success and Bajaj is the market leader in this entry/economy-level segment.

2. The second strategy of Bajaj was: do what is not expected. The target was to produce
Pulsor, an in house bike & Eliminator cruiser in collaboration with Kawasaki. Pulsor the
masculine-looking bike was a run-away success beginning with 596 bikes in the first
month it now sells around 18000 every month. Through this Bajaj became the market
leader in the premium segment of the market.

3. The third strategy of Bajaj was: do the obvious. Take the competition head on with a
slew of launches and build a bouquet of offerings against Hero bread & butter bike
Splendor and passion in the executive segment.

35
The Summary Table of the Marketing Mix
The following table summarizes the marketing mix decisions, including a list of some of the
aspects of each of the 4Ps:

36
 MARKET SEGMENTATION & TARGET MARKET

Introduction

A market segment consists of a group of customers who share a similar set of wants. The marketer
does not create the segments; the marketers task is to identify the segments and decide which
one(s) to target. Segment marketing offers several benefits over mass marketing. The company
can create a more fined-tuned product or service offering and price it appropriately for the target
segment. The company can more easily select the best distribution and communications channels,
and it will also have a clearer picture of its competitors, which are the companies going after the
same segment.

Marketing targeting is the process of fixing ones target market. It should not be considered
synonymous with market segmentation. Market segmentation is actually the prelude to target
market selection. It's important to remember that the focus of marketing is people.

It's important to remember that the focus of marketing is people. If you're concentrating your
efforts on your product or profit only, you'll miss the mark. The term target market is used because
that market- that group of people-is the "bull's eye" at which you aim all your marketing efforts.

So, don't forget that a market is people . . . People with common characteristics that set them apart
as a group. The more statistics a person is having about a target market, the more precisely he/she
can develop a marketing strategy.

India is the world's biggest market for motorcycles after China with sales of more than 4.0 million
units a year. Currently the bike sector of India is divided into three segments i.e.

1. Entry-level/Economy Segment: This segment was created by Bajaj in year 1997 by

launching it bike BOXER priced at Rs. 32000. This segment comprises of bikes ranging
with the tag price between Rs. 30000 - Rs. 40000.

37
 The target market of this segment comprises of people from lower & lower-middle class.
This segment attracts/compel people to shift to bike from scooters & scooterettee. People
in this segment look for cheap (price wise) as well as economical (mileage wise) product.

2. Executive Segment: Executive segment is the biggest segment comprising of 65% of

market share of bike sector. It is this segment where the actual war is taking place among
the companies. This segment comprises of bikes ranging with the tag price between Rs.
40000 Rs. 50000.

The target market of this segment caters to those people who are looking for both power
and mileage. The target comprises of people from middle-middle class to lower-higher
class.

3. Premium Segment: This segment comprises of bikes whos price is more than Rs.
50000. Although this segment doesnt target much market in India but it this segment that
help companies showcase its technology prowess, which in terms help to further strengthen
the brand.

The target market of this segment is the people who ride bike for fun and pleasure. The
people who want to make a style statement. They generally belong to people from upper-
middle class to middle-higher class. Age category of such people is generally below 25.

38
 OVERALL MARKET SEGMENTATION OF BIKES

Executive Segment
21%
Premium Segment
65%
14%
Entry/Economy
Segment

PRICING

It is one of the most important elements of the marketing mix, as it is the only mix, which generates
a turnover for the organization. The remaining 3ps are the variable cost for the organization. It
costs to produce and design a product; it costs to distribute a product and costs to promote it. Price
must support these elements of the mix. Pricing is difficult and must reflect supply and demand
relationship. Pricing a product too high or too low could mean a loss of sales for the organization.
Pricing should take into account the following factors:

Fixed and variable costs.

Competition

Company objectives

Proposed positioning strategies.

Target group and willingness to pay.

39
BAJAJ PRICING STRATEGY

Bajaj has always played upon price and reduced bike prices, and this has become a two edged
sword for Bajaj. As in the case of Bajaj Discover which has been aggressively placed at Rs 39,500
(in Delhi) Though Discover belongs to 125 cc segment, Bajaj has positioned it against its 100 cc
and 110 cc rivals in the executive segment including Splendor and Passion.

But exceptions are also there because reducing the price of the bike diminishes its resale value.
Bajaj did it with Caliber so there is no resale value of the product which in turn creates confusion
in the market and a consumer who upgrades its bike every couple of years then goes for the rival
Heros Splendor!

Though Bajaj has kept a higher level of pricing at its Premium Level Segment Bike (Pulsar) where
the competition is fought on the basis of better Technology and Quality of the Product.

According to Mr. R.L. Ravichandran Vice President (Business Development & Marketing)
Bajaj, more than 50 percent of all bikes are sold on hire purchases that is Executive Level Segment
and Premium Level Segment. That means theirs is only a Rs. 50 to Rs. 100 difference on the
monthly installments between some Entry Level bikes and Executive Category Vehicles. Thus
Bajaj has kept the prices of its executive segment bikes competitively low to attract the customers
who comes to showroom for purchasing entry segment bikes.

The prices of the executive segment bikes of Bajaj are:

PLATINA Rs. 44150

DISCOVER 150 Rs. 46535

Discover 135 Rs. 41250

40
PLACE

Introduction

A crucial decision in any marketing mix is to correctly identify the distribution channels. The
question how to reach the customer" must always be considered.

Definition: The place is where you can expect to find your customer and consequently, where the
sale is realized. Knowing this place, you have to look for a distribution channel in order to reach
your customer.

Channels

It exists today, with the Internet, more channels than in the past but basically, you have to consider
three main distribution channels:

1. Selling to the customers: Whether you sell by yourself (as retailer) whether you
employ a sales force, you are in these cases in front of the final customer. There are not
intermediaries between you and him. Unfortunately, except for the retailer business, this
situation is far to be the general case.

2. Selling to the retailers: In this practice you manufacture a product or a service and
then it is distributed to final customers through various intermediaries between producer
and consumers.

3. Selling to the wholesalers: In this practice you manufacture a product or a service

and then pass it on to the wholesalers, who then pass it on to the retailers, who then sell it
to customers. This practice usually involves high prices for the products because the profit
margins of wholesalers and retailers have to be taken care of.

41
PLACING OF BAJAJ

In the two-wheeler industry, the Munjals of Hero are known to be the best when it comes to
managing relationships with dealers. But even as the auto manufacturers are fine-tuning their e-
commerce strategies, Bajaj Auto is all set to drive into d-commerce. The company has set up a
network to provide real-time information to its dealers. In order to provide efficient services to its
customers at an affordable price at a location convenient to them, Bajaj Auto has appointed well-
trained Dealers across the country.

Bajaj has been following a very simple, but effective placing strategy. To ensure the deep-down
penetration, what it has done is that, it has established its regional offices in various cities like
Delhi and Mumbai. Under these regional offices come the exclusive showrooms of Bajaj offering
all of the product range of Bajaj. This strategy could best be described in the following chart

REGIONAL SHOWROOMS TARGET

BAJAJ

MARKET
Bajaj is operating on the policy that in the cities in which it has expanded it should have somewhere
about 12-15 showrooms, which should be geographically dispersed. Bajaj is also considering to
increase its share in the market by tying-up with major Banks like State Bank of India through
which it hopes to leverage the latter's nine thousand strong branch network to offer two wheeler
loans at affordable rates to consumers.

Bajaj is following a very strict policy regarding the granting of dealership status. It only considers
the genuine applications, which are suitable to its guidelines. Bajaj maintains that all the
showrooms should have proper space with proper facilities. It also guides the showrooms to have

42
set pattern of interior. Hero is matching this guideline of Bajaj and it also follows a set pattern of
interior though its quality is far better than that of Bajaj.

Bajaj also stresses that the showrooms should have proper display space so that all the models of
Bajaj (scooters as well as bikes) can be properly displayed with no look of over-crowding. Bajaj
is also taking care that all its showrooms should be located near to the customers.

Bajaj Auto gives the flexibility of hiring the required personnel to its showrooms, though the
company itself deals there training and orientation part. The biggest advantage in favor of Bajaj is
its personnel, the staff that is quite appreciated by its customers. The staff at various showrooms
is well educated, courteous and cooperative. They are capable of understanding the customer needs
and mould accordingly.

Bajaj Auto also provides intensive training to its dealers both on the job and off the job to make
them competent in their jobs. The dealers are well trained in technical aspects as well as public
relations & customer care. The dealers are appointed taking into consideration the market potential
in a particular area. When the dealers achieve a certain standard they are awarded the corporate
identity, which is another unique feature in identifying and appraising its dealers.

A general pattern has been found that the showrooms of major players in the bike industry are
located very-very close to each other. The rationale behind this is that whenever a customer comes
to purchase a bike, he sees and tries all the competitors and then chooses the best one. Someone
going to a particular area will be able to see all the showrooms of all the competitors, visits all of
them and then make his choice.

Bajaj dealers are also very cooperative in offering a test drive to a prospect. At Bajaj showrooms,
the customer is not required to undergo certain formalities like submission of driving license,
which he is required at other showrooms.

All and all Bajaj offers convenience of shopping with its geographically dispersed showrooms
and its customer-oriented policies.

43
MARKETING STRATEGY

With the advent of fierce competition Bajaj has started to follow an aggressive marketing policy
and this is evident from its hiring of Jackie Chan as its Brand Ambassador. The aggressive
marketing policy was required due to the following reasons:

COMPETITION: The competitors namely TVS SUZUKI, HERO, KINETIC HONDA had
forged strategic alliances and were now equipped with better technology.

DEMOGRAPHIC: Consumer had become more demanding and was no longer satisfied
with a single low cost value proposition

LIBERALISATION: It had brought foreign companies eyeing the lucrative and vast Indian
two wheeler market. These companies had forged alliances with BAJAJ AUTO
competitors like hero kinetic Honda and TVS Suzuki .This had been a troublesome
preposition for the company.

MARKET FRAGMENTATION: Intense competition had fragmented the two wheeler

market into many any segments. It was no longer neatly divided into scooters, mopeds and
motorcycles.

STRIFE IN THE FAST LANE

On a test track in Pune, Rajiv Bajaj, the new joint managing director, Bajaj Auto, is plotting a
comeback. Bajaj Auto currently has a measly 8 per cent of the key executive segment in the
motorbike market. But it is about to unleash a slew of new models and it aims to capture an
ambitious 25 per cent of the executive category in one year's time.

Says R L Ravichandran, vice president marketing of Bajaj Auto: "Our aim is to strengthen our
position in the executive segment where we have till now been only a small player."

44
For years, Hero has been the unstoppable champ of the motorcycle industry. With a giant 50 per
cent share of the market, it has lapped its nearest rivals several times. Now, as a clutch of rivals
move into higher gear, it's facing a real battle for the first time.

That supercharged challenge will come from about 12 new bikes that are scheduled to hit Indian
roads in the next six months. Bajaj, for instance, is at the start line with three new bikes that will
be launched in swift succession.

45
 PROMOTIONAL STRATEGIES OF BAJAJ

Bajaj Auto Brand Image Set for Overhaul

The ubiquitous, familiar, hexagonal blue and white logo of Bajaj Auto is set to fade away into
history. With ambitions of becoming an Indian multinational company and after discovering in-
house talent at developing new technology for its new motorcycles, Bajaj Auto (BAL) is now all
set to overhaul its brand image and corporate identity.

The 59-year old institution, which is the one of the country's largest two-wheeler and three-wheeler
manufacturers, is set to go through a complete image makeover, including a new brand logo and
corporate brand identity to disseminate a more modern outlook for the company.

Bajaj seems to have had compelling reasons to plan a revamp of its branding strategy. Some of
these are the rapid rise of the company's motorcycle sales, its plans to go global with proposed
assembly plants in one or two South Asian countries, the increasingly lower age profile of its
average customer and the need to pithily showcase its in-house design and technological
capability.

Bajaj's current logo, which is more than 40 years old, is being replaced by a new, more dynamic
insignia, to better reflect these attributes. The new identity is expected to be very dynamic and
represent style and technology. Company sources said that the new logo, which will continue to
sport the blue colour, will however, continues the lineage of Bajaj from the hexagonal form.

The new blue colour is said to represent precision and stability.

The job of revamping and redesigning the company's brand image, corporate identity and the logo's
various manifestations has been done by Elephant Design, a Pune-based, multidisciplinary design
office that has created, redefined and repositioned several brands across a wide range of industry
segments. The new logo and repositioning was preceded by a nationwide market research to
ascertain the new identity's acceptance among customers and others.

46
Elephant Design has been associated with Bajaj for a few years now and had successfully designed
and implemented the `Planet Bajaj' interim identity. They had also designed and implemented
BAL's retail identity project across the company's showrooms, service centres and product
manuals.

Now, with the induction of modern manufacturing technology and infrastructure, high-tech,
aggressively styled products in its portfolio, sustained research and development and younger
consumers, the change in identity is expected to recognize all these changing values and present
an easier interface for the world to understand the new Bajaj.

47
HAMARA BAJAJ

Earlier Bajaj Auto retained a certain brand following - its ad line 'Hamara Bajaj' which created an
instant rapport with its customers. It boosted up the worth of scooters of Bajaj. There are
innumerable human emotions. The Brand name HAMARA BAJAJ developed an emotional
feeling among customers, a feeling of being proud Indian. It created a sense of patriotism. The
punch line highlighted the core abilities and usefulness of its products. It gave a feeling of
APNAPAN.

The company has now shifted its focus to bike segment with catchy punch lines like Hoodibabaa
and Definitely Male.

HOODIBABAA

HOODIBABAA! That catchy, funky, seemingly clichd and yet addictive watchword that Bajaj
Auto has chosen for its bike, the Caliber 115, has been drawing curious buyers, non-buyers and
even people from the competition into Bajaj's showrooms.

According to the company, Hoodibabaa is an expression of freedom, of liberation and power. Mr.
R. L. Ravichandran, Vice-President (Business Development & Marketing), Bajaj Auto, says the
company wanted a fresh new perspective for the Caliber 115 to distinguish the bike from its
48
previous lower-powered avatar. It is also a strategy to rope in not the youth, but kids, into the
decision-making process when a family considers buying a bike.

Bajaj gave the mandate for the ad campaign to Lowe, picking them from the clique of three
agencies that do promos for the company (the other two being Leo Burnett and O&M). Going by
the market response, the campaign is clearly a hit in the 5-10 years age bracket. So, the teaser
campaign and the emphasis on the Caliber 115 being a `Hoodibabaa' bike is aimed at the son
driving the purchase decision for the father.

This is also the underlying theme for the set of four TV ads highlighting the relationship between
the father and the son. The company is now extending its advertising campaign to channels such
as Cartoon Network.

DEFINITELY MALE

Bajaj Auto launched its premium segment bike with the punch line DEFINITELY MALE. It
gives a boost to the fact that biking is a male thing. Though it may not be a fact because there are
many light models available as well and many girls have also started using it because of ease of
use. But the punch line still gives a macho image to the bike. The power of the bike and its look
conforms the punch line. Targeted at the youth segment, the Bajaj Pulsar has been designed and
styled as a mean masculine robust machine with dazzling looks and technically advanced
mechanism that offers great performance. Pulsar is the first bike to be marketed solely under the
Bajaj brand.

49
 Chapter 3
Analysis and
interpretation of data

50
 DATA ANALYSIS

DATA ANALYSIS AND INTERPRETATION

Main purpose of using a bike?

(A) Business (B) Personal

(C) Leisure (D) Status

8%
10%
BUSINESS
PERSNAL
12%
LEISURE
STATUS
70%

As given by above chart, 70% use for business purpose, 12% for personal use, 10% leisure use
and 8% for status use.

51
People like to change your bike from any other companys bike in the same Segment?

(A) Yes 12%

(B) No 88%

12%

YES
88% NO

As given by above chart 88% agrees to change and 12% does not agree to change.

52
People like to change the segment of their bike?

(A) Yes 20%

(B) No 80%

20%

YES
80% NO

As given by above chart 80% said no and 20% said yes to change the segment of their bike.

53
People satisfied with the performance of their bike?

(A) Yes 6%

(B) No 94%

6%

YES
94% NO

As given by above chart 94% people are satisfied with there performance and 6% are not satisfied.

54
Facilities which customers need?

(A) Low price 26%

(B) service station 35%

(C) Incentives 29%

(D)Others 10%

10%
26%
Low price
29% service station
incentives
35% Others

As given by above chart 35% need service stations, 29% incentives, 26% low price & 10% others.

55
Spare-parts of Bajaj bikes easily available in the market ?

(A) Yes 85%

(B) No 15%

15%

Yes

No
85%

As given buy above chart 85% people says yes and 15% says no.

56
What are main preferences while buying Bajaj products?

(A) Brand

(B) Price

(C) Features

(D) Service

(E) Dealers advice

(F) Promotion schemes

Brand

Price

Features

Services

Dealer's advice

Promotion
scheme

As given by above chart people prefer price the most as compared to brand, features, services,
dealers advice etc.

57
People like to purchase the products of Bajaj Company in future?

(A) Yes 75%

(B) No 25%

25%
75%
Yes

No

As given by above graph 75% agrees to purchase Bajaj products in future

And 25% does not agree to purchase.

58
 Which companys bike do you prefer ?

40
30
20 HERO
10 BAJAJ
TVS
0
YAMAHA

As give by the above graph hero is demanded the most then Bajaj then TVS and least demanded
us Yamaha.

59
 What is the Favorite Status of Bikes among the Two Companies?

60

40

20

0
HERO BAJAJ

As given by above graph 60% people opted for Hero and 40% for Bajaj.

60
 Chapter 4
Conclusion and
recommendation

61
CONCLUSION

Thus we can say that the Bajaj is one of the biggest two- and three-wheeler manufacturers in India,
which is also conquering the global market. Bajaj Auto has already grown a lot since its
establishment and is still continually growing.

Bajaj fielded Caliber 115 & Wind 125 in executive market segment but till now has failed to make
its presence. They hold very small market share as depicted in the figure:

Bajaj fielded Caliber 115 & Wind 125 in executive market segment but till now has failed to make
its presence. They hold very small market share as depicted in the figure:

Hero
6% 3%
10%
TVS
15% Bajaj
66%
Yamaha

others(lml,kinetic)

62
Recommendations

Establish a strong network of service centre

Make the parts available at economical rate and at all service stations.

Establish a 24 hour helpline in all cities, and help email id to take recommendations and
complaints.

Establish 24 hour onsite service support centre.

Make the service centre staff efficient by training in service and public dealing.

Also make the service centre automated

Create a space for recreational activities (TV, music jukebox, games, serve cold drinks or
beverages like tea or coffee, etc) which the customer can use and relax during the service
process.

The service and sales staff must be educated, well dressed and polite.

The interior of the showrooms must be clean and leave an impression on the customers the
moment they walk in.

63
II. Technology: Research and Development

More money should be invested into R&D

They should engage in foreign collaboration to upgrade its technology and tap foreign
market.

R&D must focus more trouble free user rather than speed or power, etc.

III. Promotion.

Advertise extensively projecting technological superiority.

Provide economical financing options for all bikes especially executive segment, as 65-
70% people go for finance facility.

To attract customers, Bajaj should give freebies during the purchase of the bikes.
Demonstration and display of bikes in colleges and universities.
Relationship management for long term benefits and repurchase.
Use brand ambassadors like film stars and sports personalities.
Introduce lottery schemes, scratch cards, etc.
Introduce buy-back and exchange offers. Which is a unanimous opinion of all the
dealers surveyed?

64
Bibliography

65
BIBLIOGRAPHY

BOOKS

1. KOTHARI C. R. RESEARCH METHODOLOGY, 2nd Edition .New Age International

Publications (P) ltd. New Delhi

2. Kotler, Philip, Marketing Management, A South Asian Perspective, Prentice Hall, 14th
edition.

WEBSITES

www.netmba.com
www.financialexpress.com/ CT3210127
www.indiainfoline.com
www.coolavenues.com=cosp&ptag=C96A2761E1787A&form=CONBDF&conlog
www.slideshare.net/sagar2808/kawasaki-16916394
http://nitashadang.blogspot.in/

66
67