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Presented By :

Vidhi. M. AmrutiyaVaishali

Dolly. Rana

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Analyze the strategies adopted by acompany to stay relevant in a changingenvironment.

Understand the importance of keepingtrack of changing customer changing needsand preferences and adopting a customer-

oriented product strategy.

Gain insights into competition in the Indiantwo-wheeler market.

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The Bajaj group was founded in 1926 byJamnalal Bajaj (Jamnalal).

In 1945, Kamalnayan Bajaj, Jamnalal's son,set up Bachraj Trading Corporation Ltd.(BTCL), a trading company, to import and selltwo- and three- wheelers. This business

continued till 1959.

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In 1959, the company secured a license fromthe Government of India to manufacturetwo- and three-wheelers.

In 1960, BTCL was renamed Bajaj Auto Ltd.(BAL) and the company went public.

The same year, it entered into a technicalcollaboration with Piaggio for themanufacture of scooters.

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1945 Kamalnayan Bajaj established Bajaj Auto.

1950-1956 Imported scooters and three-wheelers from Piaggio.

1959 Government gave license to Bajaj Auto to produce 6000scooters and three-wheelers per annum.

1960 Technical collaboration with Piaggio, set up manufacturing unitat Akrudi and went public.

1961 BAL started manufacturing.

1966 BAL became the largest Indian producer of two-wheelers.

1971 New gov. regulations prohibited the continuation of alliancewith Piaggio.

1975 BAL established manufacturing joint venture with Maharashtragov.

1982 Gov. permitted infusion of foreign technolgy and expansion ofcapacity.

1984 Technical collaboration with Kawasaki

1985 BAL established a second plant at Waluj.

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1971 Three-wheeler goods carrier.

1972 Bajaj Chetak

1976 Bajaj Super

1977 Rear engine Autorickshaw1981 Bajaj M-50

1986 Bajaj M-80, Kawasaki Bajaj KB100

1990 Bajaj Sunny

1991 Kawasaki Bajaj 4S Champion

1994 Bajaj Classic

1995 Bajaj Super Excel

1997 Kawasaki Bajaj Boxer, rear engine diesel Autorickshaw

1998 Bajaj Caliber, Bajaj Legend, Bajaj Spirit(1st 4stroke scooter)

2001 Eliminator, Bajaj Pulsar2003 Caliber 115, Bajaj Wind 125, Bajaj Pulsar

2004 Bajaj CT100, new Bajaj Chetak 4 stroke, Bajaj Discover

2005 Bajaj Wave, Bajaj Avenger

2006 Bajaj Platina

2007 Bajaj Cyrstal, Bajaj Pulsar 220 DTS-Fi, XCD 125 DTS-Fi

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Initially Bajaj introduced the new modelsafter gap of 3,4,or even 5 years whereas thecompetitors were more alert about it.

From 2003, BAL started introducing newmodels every year and that has earn thecompany a huge benefit.

Pulsar, Discover, Eliminator, Platina have wonthe award for bike of the year.

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Vehicle Target Characteristics

Scooters Targeted the familyman aged between27-38 yrs.

Word-of-mouth recommendations,brand name, features such asmileage, low maintenance, and

high resale value.M-80 Rural consumers Fuel efficiency and durability.

KB-100 Young single maleconsumers (21-30 yrsof age)

Power and style, better value formoney.

Mopeds Broader customersegment

Cheapest two wheeler avaiilable

Sunny Teenagers andwomen, people over55 years

Style and trendy features,Low cost means of personaltransport.

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Complacent.

License Raj Syndrome.

Lack in proper technical upgradation ofproducts.

Didnt foresee future trendz .

Bajaj was a late riser to the competition.

No long lasting foreign joint ventures.

Lack of professional management team.

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They should have introduced new productsacross segments.

The company should have anticipated thechange in market dynamics and introducebikes earlier then they did.

They should have increased the customer centric initiatives and command moreloyalty.

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Still they failed..why?

My marketing department? I dont requireit, I have a dispatch department. I donthave to go from house to house to sell..

Rahul Bajaj -1982

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Unable to analyze changing externalenvironment (PEST) Inertia Changing marketstructure-from monopoly to oligopoly

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Actions Taken by Bajaj Auto to Revive ChetakBaiaj tried to lower the price of Chetak by Rs5000 to seek the attention of motocycle

buyers.

In 2004 Chetak was upgraded with a new fourstroke ,125 cc engine ,better mileage

(70kmpl),with minor style changes.

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It was repositioned as a new and easy gear(wonder gear)scooter.

New ad campaigns of Chetak focusing onindividuality and strength of character(synonymous to its Hindu name)were shownto brush up the age old Chetak image of a

family man.

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Bajaj Auto Finance Ltd. (BAFL)was established.1988

BAFL financed over 10,000vehicles(Dealers were responsiblefor credit evaluation, paymentcollection and 50% cost of badloans. )

1992

160/330 dealers operated BAFLconsumer finance schemes.

1993

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Due to increasing competition BAL poured lotof resources in advertising .

Advertising expenditure in 1990 and 1991 was54 million rupees, which doubled to 110million rupees in 1992.

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For many years BAL did not have a marketingdepartment since demand outstrippedcapacity and BAL enjoyed a protected

sellers market.

Competition increased in mid 1980s , hencemarketing department evolved.

BAL adopted different marketing strategiesfor different models, few of them arediscussed :-

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Kawasaki 4S - First attempt by bajaj to makea mark in the motorcycle segment.

The target customer was the father in thefamily but the target audience of thecommercial was the son in the family.

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The time at which Kawasaki 4S was launchedHero Honda was the market leader in fuel-efficient bikes and Yamaha in the

performance bikes.

The commercial of Kawasaki 4S had thepunch line "Kyun Hero" means "now what

hero" which reflected the aggressiveness inthe marketing front by the company.

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Caliber - The focus for the Caliber 115 wasyouth.

And though Bajaj made the bike look bigger andfeel more powerful than its predecessor itsapproach towards advertising is even moreradically different this time around.

The teaser campaign and the emphasis on theCaliber 115 being a `Hoodibabaa' bike placed itas a trendy motorcycle for the college-goers andthe 25 plus executives both at the same time .

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Pulsar Discover Bajaj Auto's entire productportfolio, from the entry-level to thepremium, is being sold by the same dealers.

The restructuring will involve separatedealer networks catering to the urban andrural markets as well as its three-wheelerand premium bikes segments.

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24%

6%

18%

8%

44%

Mkt share Motorcycle/Stepthrou's2002-03

Bajaj Auto

Hero Honda

TVS

Yam aha

Others

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2%

15%

9%

4%

70%

Mkt share 3-wheelers 2002-03

Atul Auto

j

j Auto

j j tempo

M&M

Pi

ggio vehicles

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39%

19%

17%

%

Mkt share Scooter/Scooterette 2002-03

Bajaj Auto

HMS

TVS

t

rs

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0

1000000

2000000

3000000

4000000

5000000

6000000

FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03

scooters/scooterette moped motorcycle/step-throu's

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PULSAR SCOOTERETS

AUTO SCOOTERS

BAJAJ MATRIX

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"Bajaj" is a well established Brand name in thescooter segment.

Bajaj Auto is a cost-effective producer in thetwo wheeler market.

It has a huge market share in the scootersegment of the two-wheeler industry. This actsas a cushion for the company in their efforts of

foraying into the motorcycle segment.

Bajaj has established a wide distribution networkfor the scooter segment which will favor them intheir efforts in the motorcycle segment.

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Bajaj has become a generic name associatedwith the scooters and that needs to bechanged in the minds of the consumers

before it could expect a great success in themotorcycle segment.

Bajaj is dependent on its foreign

counterparts for technological support. Thisneeds to be addressed as it might be crucialwhen the foreign players enter the Indianmarket directly.

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The motorcycle segment is expected to growat a considerable rate and this would providea good opportunity for Bajaj Auto to increase

its market share in this segment.

The growing gearless trendy scooters andscooterette market.

Can use the existing R&D capabilities fornew models.

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Entry of Multinational companies, especiallyChinese ones, in the motorcycle segment willstiffen the competition and will hamper the

efforts of Bajaj to establish itself in themotorcycle segment.

The competition catches-up any new

innovation in no time.

Tough competition faced by domesticcompanies like Hero Honda, TVS, Kinetic etc.

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HH,TVS,HONDA

CONSUMERS WEREBECOMINGDEMANDING INTERMS OF CHOICE

ADVENT OF BIKESAND DEMAND OF

PERSONALMOBILITY

NO PROBLEM

IN THISQUADRANT

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