ayush final report

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ASummer Training Report

On

STUDY ON MARKETING MIX OF BAJAJ AUTO LTD

Submitted for partial fulfillme n t of requireme n t for the award of degree

O f

Master of Business Administration

O f

CHHATTISGARH SWAMI VIVEKANAND TECHNICAL UNIVERSITY

BHILAI (C.G.)

Session 2009-11

Supervised By External Guide Supervised by Internal Guide

Name: Mr. Deepak Shrivastava Name: Prof. Teju Kujur

Designation: Sales Manager Designation: Reader

Department :Sales &Marketing Department: MBA

Submitted by

AYUSH AGRAWAL

Roll No-5053609028

Enrollment No. AE6641

MBA III Semester (Section- A)

2010

DEPARTMENT OF MANAGEMENT

DISHA INSTITUTE OF MANAGEMENT AND TECHNOLOGY

(Disha Educatio n Society)

Satya Vihar, Vidha n sabha-Cha n drakhuri Marg, Ma n dir Hasaud,

Raipur (C.G.)492007


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DECLARATION

I the u n dersig n ed solem n ly declare that the report of the Summer Trai n in g work

en titled STUDY ON MARKETING MIX OF BAJAJ AUTO LTD is basedmy ow n work carried out duri n g the course of my study u n der the supervisio n

of Mr. Deepak Shrivastava

I assert that the stateme n ts made a n d con clusio n s draw n are an outcome of the

project work. I further declare that to the best of my k n owledge a n d belief that

the project report does n ot co n tain an y part of a n y work which has bee n

submitted for the award of an

y other degree certificate in

this Un

iversity or an

yother U n iversity.

(Sign ature of the Ca n didate)

Name: Mr. Ayush Agrawal

Roll No: 5053609028

En rollme n t No.:AE6641


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Certificate by Organization

Note: In this page you have to put the certificate received from the orga n izatio n .


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CERTIFICATE BY INTERNAL GUIDE

This to certify that the report of the project submitted is the outcome of the

project work e n titled STUDY ON MARKETING MIX OF BAJAJ AUTO LTDcarried out by Mr. Ayush Agrawal beari n g Roll No.5053609028 & E n rollme n t

No.AE6641 carried by u n der my guida n ce an d supervisio n for the award of

Degree i n Master of Busi n ess Admi n istratio n of Chhattisgarh Swami

Viveka n an da Tech n ical U n iversity, Bhilai (C.G), I n dia.

To the best of the my k n owledge the report

i) Embodies the work of the ca n didate herself,ii) Has duly bee n completed,

iii) Fulfils the requireme n t of the ordi n an ce relati n g to the MBA degree

of the U n iversity a n d

iv) Is up to the desired sta n dard for the purpose of which is submitted.

(Sign

ature of the Guide)

Name: Mr. Deepak Shrivastava

Desig n ation : Sales Ma n ager

Departme n t: Sales & Mrtg

Va n dan a Bajaj

Ramku n d, G.E Road,

Raipur.

The project work as me n tion ed above is hereby bei n g recomme n ded a n dforwarded for exami n ation an d evaluatio n .


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CERTIFICATE BY THE EXAMINERS

This is to certify that the project e n titled

STUDY ON MARKETING MIX OF BAJAJ AUTO LTD

Submitted by

Mr. Ayush Agrawal Roll No.:5053609028 E n rollme n t No.: AE6641 has bee n

exami n ed by the u n dersig n ed as apart of the exami n ation for the award of

Master of Busi n ess Admi n istratio n degree of Chhattisgarh Swami Viveka n an dTech n ical U n iversity, Bhilai (C.G.).

(Prof. Teju Kujur) ( Mr.Deepak Shrivastava)

Name & Sig n ature of Name Sig n atureof In ter n al Exami n er Exter n al

Exami n er

Date: Date:

Forwarded by

Dr. Sathish Be n edict

Academic Head

Departme n t of Ma n ageme n t


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ACKNOWLEDGEMENT

I take this opportu n ity to express my si n cere tha n k to the ma n ageme n t of

Va n dan a Bajaj Auto for providi n g us the opportu n ity to carry out the project i n

their orga n izatio n .

I would like to exte n d my gratitude towards Disha Educatio n Society for givi n g

us the opportu n ity about this project. I am grateful to Dr. S.K. Jai n , chairma n of

the i n stitute for spe n din g valuable time a n d co-operati n g with us for successful

completio n of our project. I take the opportu n ity for the practical k n owledge of

the theoretical aspect through this project.

I express my gratitude to Mr. Neeraj Agrawal, Dealer of Va n dan a Bajaj, who i n

spite of his pressi n g duties a n d respo n sibilities has show n gen uin e in terest i n

providi n g n ecessary guida n ce regardi n g co n cept of this project a n d ren dered

support at all stage of this project.

I also tha n k to our exter n al guide Mr. Deepak Shrivastava & our i n ter n al guide

Prof. Teju Kujur who are our i n spiratio n to work a n d lear n in g.

Last but n ot the least I would like to tha n k my frie n ds Amrita, Nupur, Swati a n d

Amit who e n couraged me a n d cooperated i n completio n of my project.

(Sign ature of the stude n t)

Name: Mr. Ayush Agrawal

Roll. No. 5053609028

MBA. 3rd Semester

Sectio n A


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PREFACE

Theres a little bit of AUTOMOBILES in everybodys life.

AUTOMOBILES are the basic n ecessity of day today life. This ma n made machi n e has a n

extraordi n ary quality of co n tributi n g to every aspect of life. While it bri n gs ease i n

everybodys day to day worki n g a n d provides treme n dous growth a n d be n efit to the

tran sportatio n in dustry.

JAMNALAL BAJAJ

Man y stude n ts may have do n e work o n this project i n differe n t ways/styles. I have also tried

to work o n this project i n a differe n t way. It was for the first time I got the opportu n ity to

work i n such a prestigious a n d well-k n own orga n izatio n . An d thi n gs which I have

experie n ced i n my trai n in g period are goi n g to help me through out my life time. I have

worked o n this project with great e n thusiasm a n d zeal. I have tried to cover almost all the

thin gs, which I have experie n ced a n d lear n ed duri n g the trai n in g period. To ru n a gia n t

orga n izatio n each a n d every departme n t has to play its role effectively. I n this era of cutthroat

competitio n there is n o room for complace n cy. Automobiles are the basic framework which

has built tra n sportatio n in dustry i n n ation an d it co n tributes to everybodys life.

The mai n goal of my project is the. Overview of Bajaj auto and study of consumer

preference and brand awareness. It would be my great pleasure, if this project ca n help

this compa n y to achieve its goal higher. This project has bee n un dertake n to study the

procedures a n d practices followed i n Sales & Marketi n g dept. The Sales & Marketi n g dept i n

Va n dan a Bajaj Auto Raipur have ma n y differe n t activities a n d differe n t people are appoi n ted

for differe n t work. This report is prepared o n the basis of the exte n sive study carried out at

Sales & Marketi n g Departme n t of Va n dan a Bajaj Auto Raipur.


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Contents

S.No. Topic Name Page

No.

01 INTRODUCTION

1.1 I n troductio n to Study

1.2 I n troductio n to Topic

02 PROFILE

2.1 Compa n y Profile

2.2 Product Profile

03 MARKETING MIX

3.1 I n troductio n

3.2 Bajajs marketi n g mix

04 RESEARCH METHODOLOGY

4.1 Market Research

4.2 Research Desig n

4.3 O bjective Behi n d the Study

4.4 Sig n ifica n ce of the Study

4.5 Research Methodology

4.6 Limitatio n

05 ANALYSIS

5.1 Data A n alysis & i n terpretatio n


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5.2 Survey A n alysis

06 FINDING & CONCLUSION

6.1 Fi n din g & Co n clusio n

6.2 Suggestio n

6.3 Questio nn aire

6.4 Bibliography


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MOTORCYCLE INDUSTRY

A motorcycle also is a si n gle-track, two-wheeled motor vehicle powered by a n en gin e.

Motorcycles vary co n siderably depe n din g on the task for which they are desig n ed, such as

lon g dista n ce travel, n avigati n g con gested urba n traffic, cruisi n g, sport a n d raci n g, or off-road

con ditio n s. Bei n g the most affordable form of motorized tra n sport, i n some parts of the world

they are also the most widespread (e.g., Viet n am).

Bajaj Auto limited is o n e of the largest two wheeler ma n ufacturi n g compa n y in In dia apart

from produci n g two wheelers they also ma n ufacture three wheelers. The compa n y had started

way back i n 1945. I n itially it used to import the two wheelers from outside, but from 1959 it

started ma n ufacturi n g of two wheelers i n the cou n try. By the year 1970 Bajaj Auto had rolled

out their 100,000th vehicle. Bajaj scooters a n d motor cycles have become a n in tegral part of

the I n dian milieu a n d over the years have come to represe n t the aspiratio n s of moder n In dia.

Bajaj Auto also has a tech n ical tie up with Kawasaki heavy i n dustries of Japa n to produce the

latest motorcycles i n In dia which are of world class quality The Bajaj Kawasaki elimi n ator

has emerged straight out of the drawi n g board of Kawasaki heavy i n dustries. The core bra n d

values of Bajaj Auto limited i n cludes Lear n in g, I nn ovatio n , Perfectio n , Speed a n d

Tra n spare n cy.

Bajaj Auto has three ma n ufacturi n g un its in the cou n try at Akurdi, Waluj a n d Chaka n in

Maharashtra, wester n

In

dia, which produced 2,314,787 vehicles in

2005-06. The sales are backed by a n etwork of after sales service a n d mai n ten an ce work shops all over the cou n try.

Bajaj Auto has products which cater to every segme n t of the I n dian two wheeler market Bajaj

CT 100 Dlx offers a great value for mo n ey at the e n try level.

Introduction to Topic

Marketing mix

The four mai n fields of the Marketi n g mix.

The term ' marketing mix' was first used i n 1953 whe n Neil Borde n , in his America n

Marketi n g Associatio n preside n tial address, took the recipe idea o n e step further a n d coi n ed

the term "marketi n g-mix". A promi n en t marketer, E. Jerome McCarthy, proposed a 4 P

classificatio n in 1960, which has see n wide use. The four Ps co n cept is explai n ed in most

marketi n g textbooks a n d classes.


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Eleme n ts of the marketi n g mix are ofte n referred to as 'the four Ps':

y Product - A ta n gible object or a n in tan gible service that is mass produced or

man ufactured o n a large scale with a specific volume of u n its. I n tan gible products are

service based like the tourism in

dustry & the hotel in

dustry or codes-based productslike cellpho n e load a n d credits. Typical examples of a mass produced ta n gible object

are the motor car a n d the disposable razor. A less obvious but ubiquitous mass

produced service is

y Price The price is the amou n t a customer pays for the product. It is determi n ed by a

n umber of factors i n cludi n g market share, competitio n , material costs, product

iden tity a n d the customer's perceived value of the product. The busi n ess may i n crease

or decrease the price of product if other stores have the same product.

y Place Place represe n ts the locatio n where a product ca n be purchased. It is ofte n

referred to as the distributio n cha nn el. It ca n in clude a n y physical store as well as

virtual stores o n the I n ter n et.

y Promotion

represe n ts all of the commu n icatio n s that a marketer may use i n the

marketplace. Promotio n has four disti n ct eleme n ts - advertisi n g, public relatio n s,

word of mouth a n d poi n t of sale. A certai n amou n t of crossover occurs whe n

promotio n uses the four pri n cipal eleme n ts together, which is commo n in film

promotio n . Advertisi n g covers a n y commu n icatio n that is paid for, from ci n ema

commercials, radio a n d In ter n et adverts through pri n t media a n d billboards. Public

relatio n s are where the commu n icatio n is n ot directly paid for a n d in cludes press

releases, spo n sorship deals, exhibitio n s, co n fere n ces, semi n ars or trade fairs a n d

even ts. Word of mouth is a n y appare n tly in formal commu n icatio n about the product by ordin ary i n dividuals, satisfied customers or people specifically e n gaged to create

word of mouth mome n tum. Sales staff ofte n plays a n importa n t role i n word of mouth

an d Public Relatio n s.y


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Company profile:

B ajaj Auto Ltd.

(A J O URNEY FR O M HAMARA BAJAJ T O DISTINCTLY AHEAD)

Executive summary

The Bajaj Group was fou n ded i n 1926 by Jam n alal Bajaj a n d n ow co n sists of 27 compa n ies.

In 1945, Jam n alal Bajaj had formed M/s Bachraj Tradi n g Corporatio n Private Limited, the

flagship compa n y, to sell imported two-wheelers a n d three-wheelers. The compa n y acquired

a lice n se from the gover n men t in 1959 to ma n ufacture these vehicles a n d we n t public the

n ext year. By 1977, the compa n y saw its pla n t rolli n g out 100,000 vehicles i n a sin gle year.

In an other n in e years, Bajaj Auto could produce 500,000 vehicles i n a year. The prese n t

Chairma n of the Bajaj group, Rahul Bajaj, took charge of the busi n ess i n 1965. He was the

first lice n see of the I n dian make of the Italia n Vespa scooter.

Japa n ese a n d Italia n scooter compa n ies bega n en terin g the I ndian market i n the early 1980s.

Although some boasted superior tech n ology a n d flashier bra n ds, Bajaj Auto had built up

several adva n tages i n the previous decades. Its customers liked the durability of the product

an d the ready availability of mai n ten an ce; the compa n y's distributors permeated the cou n try.

By 1994-95, Bajaj was raci n g to beat Ho n da, Suzuki a n d Kawasaki i n the two-wheeler

segme n t in ter n ation ally.

By 1997, Bajaj faced tough competitio n in the domestic market a n d its market share stood at

40.5%. U n der the leadership of Rahul Bajaj, the tur n over of Bajaj Auto has go n e up from

Rs.72 millio n to Rs.46.16 billio n (USD 936 millio n ), its product portfolio has expa n ded from

on e to ma n y a n d the bra n d has fou n d a global market. Bajaj as a bra n d is well-k n own across

several cou n tries i n Lati n America, Africa, Middle East, South a n d South East Asia. The

compa n y has a n etwork of 498 dealers a n d over 1,500 authorized service ce n ters a n d 162

exclusive three-wheeler dealers spread across the cou n try.

Bajaj has ide n tified a segme n t of customers called 'Probikers', who are k n owledgeable aboutmotorbikes a n d appreciative of co n temporary tech n ology. They are tre n dsetters a n d very

choosy about what they ride. He n ce, Probikers n eed to be addressed i n a mea n in gful way that

goes beyo n d the product. Bajaj Auto is i n the process of setti n g up a chai n of retail stores

across the cou n try exclusively for high-e n d, performa n ce bikes. These stores are called

Bajaj Probiki n g". Fifty two such stores have bee n open ed across I n dia.


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Cateri n g to dema n d in this sector requires a stro n g a n d effective distributio n n etwork as

con sumers are more dema n din g an d expect delivery o n time. Early delivery is a cause delight

for customers. With such vast global a n d In dia n rural prese n ce, desig n in g a n efficie n t

distributio n system becomes a complex task eve n for a compa n y like Bajaj Auto. Lot of time

an d effort goes i n to desig n in g a strategy based efficie n t distributio n system.

Bajaj Auto is a major I n dian automobile ma n ufacturer started by a Rajastha n i mercha n t. It is

world's fourth largest ma n ufacturer of two-wheelers a n d In dia's seco n d largest two wheeler

man ufacturer a n d the world's 4th largest two- a n d three-wheeler maker. It is based i n Pun e,

Maharashtra, with pla n ts in Akurdi a n d Chaka n (Pun e), Waluj ( n ear Aura n gabad) a n d

Pan tn agar i n Uttara n chal. Bajaj Auto makes a n d exports motor scooters, motorcycles a n d the

auto rickshaw.

The compa n y, headed by Rahul Bajaj, is worth more tha n US$1.5 billio n . Bajaj Auto camein to existe n ce o n November 29, 1945 as M/s Bachraj Tradi n g Corporatio n Private Limited. It

started off by selli n g imported two- a n d three-wheelers i n In dia. I n 1959, it obtai n ed lice n se

from the Gover n men t of I n dia to ma n ufacture two- a n d three-wheelers.


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Management:

Rahul Bajaj Chairma n

Madhur Bajaj Vice Chairma n

Rajiv Bajaj Ma n agi n g Director

San jiv Bajaj Executive Director

Pradeep Shrivastava Preside n t (En gin eeri n g)

Rakesh Sharma CE O (In ter n ation al Busi n ess)

R C Maheshwari CE O (Commercial Vehicles

S Sridhar CE O (Two Wheelers)

Abraham Joseph Preside n t

(Research & Developme n t)

Eric Vas Preside n t (New Projects)

C P Tripathi Vice Presiden

t (Corporate)

Kevi n Dsa Vice Preside n t (Fi n an ce)

K Sri n ivas Vice Preside n t

(Huma n Resources)

N H Hi n gora n i Vice Preside n t (Commercial)

S Ravikumar Vice Preside n t

(Busi n ess Developme n t)


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Q uick facts:

Foun der Jam n alal Bajaj

Year of Establishme n t 1926

In dustry Automotive - Two & Three Wheelers

Busi n ess Group The Bajaj Group

Prese n ce Distributio n n etwork covers 50 cou n tries.Domi n an t prese n ce i n Sri La n ka, Ba n gladesh,Columbia, Guatemala, Peru, Egypt, Ira n an dIn don esia.

Join t Ve n ture Kawasaki Heavy I n dustries of Japa n

Registered & Head O ffice Akurdi Pu n e - 411035 I n dia Tel.: +(91)-(20)-27472851 Fax: +(91)-(20)-27473398


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MISSION AND VISION STATEMENT

y MISSION

Focus o n value based ma n ufacturi n g

Fosteri n g team work & e n han cin g the capability of the team Con tin ual Improveme n t Total elimi n ation of wastes Pollutio n free & safe e n viron men t

y VISION To attai n World Class Excelle n cy by demo n strati n g Value added products to

customers

y OBJECTIVE Bajaj Limited is to cater the market n eeds of tra n sportatio n by providi n g 2 wheeler

an d 3 wheeler vehicles. BALW has bee n produci n g the catalogue products to cater to

the cha n gin g market requireme n ts. Based o n the customer feedback, improveme n ts

are bei n g made co n tin uously i n the existi n g products.

y GOAL To catapult Bajaj Auto as the cou n trys largest automobile compa n y.


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ORGANISATIONAL STRUCTURE:

In dia's premier automotive compa n y, has u n veiled a focused orga n izatio n al restructuri n g for

the Auto busi n ess. With this restructuri n g, the existi n g busi n ess roles a n d respo n sibilities at

the compa n y has bee n stren gthe n ed a n d en han ced to e n sure greater operatio n al empowerme n t

an d effective ma n ageme n t.

The five pillars of this n ew structure, called strategic u n its, are,

R&D En gin eeri n g Two-wheeler busi n ess u n it Commercial vehicles busi n ess u n it a n d

In

ter n

ation

al busin

ess un

it

San jiv Bajaj said that they are tryi n g to make the orga n izatio n al structure more respo n sive.

They have brought dow n the n umber of layers betwee n the chief executive officer (CE O ) a n d

the shop-floor level to four, which is i n lin e with existi n g sta n dards. They are further looki n g

at cutti n g dow n on on e more layers i n the orga n izatio n al structure.

This re-orga n izatio n , accordi n g to him, is a reflectio n of the cha n gin g market structure a n d

dyn amics. Bajaj Auto Ltd also pla n s to i n vest i n marketi n g, sales a n d the R&D side.

BAL had rece n tly a nn oun ced a volu n tary retireme n t scheme for middle-level ma n ageme n t

coveri n g arou n d 400-500 people of which 170 odd, opted for the VRS. BAL has previously

stated that it i n ten ds to bri n g dow n its workforce level to 10,000 from its curre n t 13,000 odd

levels.

In teresti n gly, the cou n trys other major two-wheeler ma n ufacturer Hero Ho n da has also

embarked o n a ma n power ratio n alizatio n drive at the top level. The aim is to i n duct fresh

compete n cies at the se n ior level.


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BCG MATRIX FOR BAJAJ

\


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SWOT ANALYSIS:

STRENGTH

High economies of scale. High economies of scope. Legacy of brand name. Widespread distribution network.

WEAKNESS

Hasn't employed the excess cash for

long.

Centralized paternalistic management

style. Not a global player in spite of

huge volumes.

No collaboration with any of the

foreign players.

OPPORTUNITIES

The growing gearless trendy scooters

and scooterette market.

Can use the existing R&D capabilities

for new models.

Can invest and grow the life stylesegments.

THREATS

The competition catches-up any new

innovation in no time.

Threat of cheap imported motorcycles

from China.

Tough competition faced by foreign as

well as domestic players.


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PRODUC T PROFI LE

T l Industry: An Overv iew

The Ind i n t hee ler indus try has w itnessed spec tacu lar grow th in the last few years. The

marke t dynam ics of the indus try has subs tan tially changed w ith a ma jor ity of the cus tomers

preferr ing b ikes to scoo ters and mopeds. Th is is pr imar ily due to be tter fue l eff icienc ies,

dynam ics, looks and longer produc t li es of mo torcyc les.

The mo torcyc le segmen t cons titutes abou t 81.5% of the two whee ler marke t in Ind ia1. I t also

con tr i bu tes to three-four ths of the total expor ts in the two whee ler indus try. Exh i b it 1 shows

that Ba ja j is the second larges t player in this segmen t af ter Hero Honda.

The indus try exh i bits some degree of co llus i e behav ior and thus represen ts an o ligopo listic

form of marke t struc ture. Produc t and brand d ifferen tiation are seen as the pr imary means of

sus taining compe titive advan tage. In order to sus tain brand equ ity, p layers spend large

percen tages of their revenues in adver tising and brand bu ilding ac tivities. The supp ly anddistr i bu tion ne tworks are dec isive fac tors in s tay ing compe titive and norma lly need a huge

cap ital inves tmen t.

The two whee ler indus try is cap ital intens ive w ith large f ixed cos t requ iremen ts and new

mode l introduc tions manda tory a t frequen t interva ls in order to sus tain the demand. Th is

invo lves subs tan tial des ign and R cos ts. Such h igh f ixed cos ts can be offse t on ly by

F i ure 1. Market Shares of the major p layers in the two whee ler market segment


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achievi n g eco n omies of scale. Moreover, developi n g a distributio n cha nn el is extremely

difficult i n a cou n try like I n dia. Therefore, it is difficult for a n ew player to e n ter this

in dustry.

Motorcycles

Bajaj Autos sale of motorcycles by volume grew by 24.4 per ce n t in 2006-07 - which was

sign ifica n tly greater tha n that of the i n dustry. Co n seque n tly, the Compa n y has co n tin ued to

in crease its market share i n motorcycles, which sta n ds at 33.5 per ce n t in 2006-07, compared

to 30.8 per ce n t in 2005-06.

As i n the previous year, this Ma n ageme n t Discussio n an d A n alysis a n alyses the performa n ce

of Bajaj withi n differe n t broad segme n ts of the motorcycle i n dustry:

1. The high performance segment: This i n cludes motorcycles i n the e n gin e class of 150 cc a n d above. Bajaj Auto competes here with the Pulsar ra n ge a n d Ave n ger DTS-

i.

2. The 125 cc segment: Bajaj Auto competes i n this category with Discover DTS-i 125

an d the rece n tly lau n ched Discover DTS-i 135.

3. The 100 cc segment: Here, Bajaj Auto competes with the Discover 110, Plati n a an d

the CT-100.

The High Performance Segment

( 150cc)

With several varia n ts of its Pulsar DTS-i a n d the Ave n ger DTS-i, Bajaj Auto has a

domi n atin g share (61%) i n this segme n t. I n 2006-07, the Pulsar DTS-i (the 150 cc a n d 180 cc

models) was upgraded with sportier looks a n d in dustry-first features like digital speedometer

con sole, LED tail lamps a n d self ca n celli n g directio n in dicators. Despite lau n ches by the

competitio n , Bajaj co n tin ues its domi n ation in this category due to these a n d other productin itiatives. It is a case of bei n g Disti n ctly ahead- the Pulsar ra n ge effectively sets the

ben chmark for the rest of the i n dustry to follow.

Some other i n itiatives i n clude a n ew varia n t, the Pulsar 200 DTS-i, which was lau n ched i n

Jan uary 2007 e n tirely through Bajaj Autos ow n Pro-biki n g showrooms. It has bee n received

very well by the co n sumers. Yet a n other upgrade, the Pulsar 220 DTS-Fi, was pilot lau n ched


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in April 2007. The Pulsar DTS-Fi (fuel i n jectio n ) sets a n ew be n chmark i n the high

performa n ce segme n t with a fuel i n jected e n gin e an d features like projector headlamp, clip o n

han dle bars a n d rear disc brake.

Due to these upgrades a n d n ew lau n ches, sale of the Pulsar ra n ge has grow n to 40,000

vehicles per mo n th - a n in crease of 24 per ce n t over last year.

The 125cc Segment

Bajaj Auto is the pio n eer i n this segme n t through its Discover DTS-i. Its success has spaw n ed

a host of i n troductio n s from competitors. Despite heighte n ed competitio n , Bajaj Autos share

in this segme n t has grow n , a n d sta n ds at 32 per ce n t with a volume growth of 28 per ce n t in

2006-07 over last year. To create greater play i n this space, a n ewer versio n of the Discover

DTS-i with a 135 cc e n gin e has bee n laun ched i n April 2007. This, alo n g with a styli n g

upgrade o n the existi n g 125 cc Discover DTS-i, is expected to co n tin ue the Compa n ys

mome n tum i n this growi n g segme n t. Bajaj Auto will demo n strate what Disti n ctly Ahead

mea n s with the i n troductio n of a n all-n ew e n gin e platform i n the seco n d quarter of 2007-08.

This will be a model that has great style as well as a robust desig n ; it will show how

customers ca n en joy low emissio n s at low costs; a n d demo n strate that there ca n be both good

performa n ce a n d great fuel eco n omy.

100cc Segment

Although the largest segme n t in the motorcycle market, it has bee n fallin g in perce n tage

terms over the last few years. Moreover, it has bee n beset with i n ten se competitio n from all

players, accompa n ied by aggressive prici n g in itiatives a n d promotio n s. It is n o secret that

with heighte n ed price se n sitivity a n d competitio n , this segme n t is becomi n g in creasi n gly

commoditized. While the domestic 100 cc segme n t accou n ts for 41 per ce n t of the compa n ys

motorcycle sales ( n umbers) it co n tributes less tha n a quarter of the Compa n ys reven ues.

Hen ce, reduced margi n s here affect Bajaj Auto far less tha n the competitio n , for which this is

a more domi n an t play.However, Bajaj Auto will co n tin ue to aggressively play i n this segme n t an d expa n d both

markets as well as its market share. Equally, at the top e n d of the 100 cc space, it will

en courage co n sumers to migrate to the 125 cc a n d 135 cc Discover DTS-i a n d eve n the Pulsar

150 cc varia n ts.


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COMPETITORS

Bajaj to stop scooter production, focus on motorcycles

The ji n gle promised that it would stay with us for today a n d tomorrow as a Stro n g Symbol of

a Stro n g In dia, a n d two ge n eratio n s grew up hummi n g the tu n e. But fi n ally whe n the I n dia of

the lice n se-permit raj gets to take its seat at the global high table, the Scoters that got us there

is fadi n g away.

Bajaj Auto a nn oun ced o n Wed n esday that it is exiti n g the scooter segme n t altogether,

brin gin g the curtai n s dow n on its ico n ic product li n e. The compa n y had stopped maki n g the

Chetak, o n ce the worlds largest selli n g scooter, almost three years ago, a n d accordi n g to its

MD Rajeev Bajaj, it will stop productio n of its n on -starter Kristal series by e n d of the curre n t

fiscal.

This is a defi n ite watershed mome n t, because its almost like detachi n g ourselves from

what co n stitutes middle class I n dia, a n d the set of values that co n stituted middle class I n dia,

says Sa n tosh Desai, MD a n d CE O of Future Bra n ds a n d a marketi n g an d advertisi n g expert.

Last Price Market Cap.(Rs. cr.)

SalesTurnover

Net Profit Total

Assets

HeroHonda

1,700.25 33,951.87 12,356.88 1,281.76 3,879.24

Bajaj Auto 1,712.35 24,774.88 8,810.36 656.48 3,439.69

TVS Motor 65.90 1,565.41 3,736.67 31.08 1,719.11

LML 9.55 78.30 167.77 -51.62 -26.48

KineticMotor

25.15 53.00 15.70 97.61 -5.18


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CORE COMPETENCIES

Bajaj Auto is o n e of the oldest a n d the seco n d largest two wheeler ma n ufacturer i n In dia. I n

additio n to copi n g with fierce competitio n from other players i n the two wheeler segme n t, it

also has to protect its market share from the impe n din g on slaught of low price small cars such

as Tata Na n o. Holdi n g on to its positio n in such a challe n gin g market e n viron men t requires

inn ovative strategies a n d deep u n dersta n din g of co n sumers n eeds.

Bajaj Auto, sitti n g on surplus fu n ds of over Rs 7,000 crore, was i n un dated with offers to

diversify from telecommu n icatio n s a n d power ge n eratio n to software but stuck to core

busi n ess of automobiles. Mr. Bajaj said that a n y compa n y, which wa n ts to survive, must have

quality a n d service orie n tation . The automotive sector was i n its death throes with some of

the major America n automotive ma n ufacturers o n the verge of ba n kruptcy, he said.

The Profitability Pyramid shows that the margi n is very low i n the sub-125cc segme n t but

volumes are high. BAL wa n ts to shift users from 100, 115cc segme n t to 125cc a n d higher.

Thus Bajaj n ot o n ly wa n ts to play o n the margi n s but also wa n ts to i n crease the market share

of 125cc bikes. With its rece n t lau n ch of XCD 125cc, it has brought i n competitio n for its

own 100cc model, Plati n a by deliveri n g a bike that is better i n all respects (i n cludi n g fuel

efficie n cy).

Thus, we co n clude that Bajaj wa n ts to make a slow departure from 100cc segme n t. It has

already stopped productio n of the Discover 125 a n d will co n tin ue productio n of the Plati n a

un til the dema n d for the 100cc remai n s. It has priced the XCD betwee n the Plati n a an d the

Discover a n d in the future, would ideally wish to project the XCD 125 as its base model.


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MARKETING MIX (FOUR Ps)

Combi n ation of marketi n g eleme n ts used i n the sale of a particular product. The marketi n g

eleme n ts ce n ter arou n d four disti n ct fu n ction s, sometimes called the Four Ps: product, price,

place (of distributio n ), a n d promotion. All these fu n ction s are co n sidered i n plann in g a

marketi n g strategy, a n d an y on e may be e n han ced, deducted, or cha n ged i n some degree i n

order to create the strategy n ecessary to efficie n tly a n d effectively sell a product.

The term marketing mix refers to the four major areas of decisio n maki n g in the marketi n g

process that are ble n ded to obtai n the results desired by the orga n izatio n . The four eleme n ts

of the marketi n g mix are sometimes referred to the four Ps of marketi n g. The marketi n g mix

shapes the role of marketi n g withi n all types of orga n izatio n s, both profit a n d n on profit. Each

eleme n t in the marketi n g mixproduct, price, promotio n , an d placeco n sists of n umerous

subeleme n ts. Marketi n g ma n agers make n umerous decisio n s based o n the various subeleme n ts of the marketi n g mix, all i n an attempt to satisfy the n eeds a n d wa n ts of co n sumers.

Product

The first eleme n t in the marketi n g mix is the product. A product is a n y combi n ation of goods

an d services offered to satisfy the n eeds a n d wa n ts of co n sumers. Thus, a product is a n ythi n g


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tan gible or i n tan gible that ca n be offered for purchase or use by co n sumers. A ta n gible

product is o n e that co n sumers ca n actually touch, such as a computer. A n in tan gible product

is a service that ca nn ot be touched, such as computer repair, i n come tax preparatio n , or a n

office call. O ther examples of products i n clude places a n d ideas. For example, the state

tourism departme n t in New Hampshire might promote New Hampshire as a great place tovisit a n d by doi n g so stimulate the eco n omy. Cities also promote themselves as great places

to live a n d work. For example, the sloga n touted by the Chamber of Commerce i n San

Ber n ardi n o, Califor n ia, is "It's a great day i n San Ber n ardi n o." The idea of weari n g seat belts

has bee n promoted as a way of savi n g lives, as has the idea of recycli n g to help reduce the

amou n t of garbage placed i n lan dfills.

Typically, a product is divided i n to three basic levels. The first level is ofte n called the core

product, what the co n sumer actually buys i n terms of be n efits. For example, co n sumers do n 't just buy trucks. Rather, co n sumers buy the be n efit that trucks offer, like bei n g able to get

arou n d in deep s n ow i n the wi n ter. Next is the seco n d level, or actual product, that is built

arou n d the core product. The actual product co n sists of the bra n d n ame, features, packagi n g,

parts, a n d styli n g. These compo n en ts provided the be n efits to co n sumers that they seek at the

first level. The fi n al, or third, level of the product is the augme n ted compo n en t. The

augme n ted compo n en t in cludes additio n al services a n d be n efits that surrou n d the first two

levels of the product. Examples of augme n ted product compo n en ts are tech n ical assista n ce i n

operati n g the product a n d service agreeme n ts.

Products are classified by how lo n g they ca n be useddurabilitya n d their ta n gibility.

Products that ca n be used repeatedly over a lo n g period of time are called durable goods.

Examples of durable goods i n clude automobiles, fur n iture, a n d houses. By co n trast, goods

that are n ormally used or co n sumed quickly are called n on durable goods. Some examples of

n on durable goods are food, soap, a n d soft dri n ks. I n additio n , services are activities a n d

ben efits that are also i n volved i n the excha n ge process but are i n tan gible because they ca nn ot

be held or touched. Examples of in

tan

gible services in

cluded eye exams an

d automobilerepair.

An other way to categorize products is by their users. Products are classified as either

con sumer or i n dustrial goods. Co n sumer goods are purchased by fi n al co n sumers for their

perso n al co n sumptio n . Fi n al co n sumers are sometimes called e n d users. The shoppi n g

patter n s of co n sumers are also used to classify products. Products sold to the fi n al co n sumer


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are arra n ged as follows: co n ven ien ce, shoppi n g, specialty, a n d u n sought goods. Co n ven ien ce

goods are products a n d services that co n sumers buy freque n tly a n d with little effort. Most

con ven ien ce goods are easily obtai n able a n d low-priced, items such as bread, ca n dy, milk,

an d shampoo. Co n ven ien ce goods ca n be further divided i n to staple, impulse, a n d emerge n cy

goods. Staple goods are products, such as bread a n d milk, that co n sumers buy o n a co n sisten t basis. Impulse goods like ca n dy a n d magazi n es are products that require little pla nn in g or

search effort because they are n ormally available i n man y places. Emerge n cy goods are

bought whe n con sumers have a pressi n g n eed. A n example of a n emerge n cy good would be a

shovel duri n g the first s n owstorm of the wi n ter.

Shoppi n g goods are those products that co n sumers compare duri n g the selectio n an d purchase

process. Typically, factors such as price, quality, style, a n d suitability are used as bases of

compariso n . With shoppi n g goods, co n sumers usually take co n siderable time a n d effort i n gatheri n g in formatio n an d maki n g compariso n s amo n g products. Major applia n ces such as

refrigerators a n d televisio n s are typical shoppi n g goods. Shoppi n g goods are further divided

in to un iform a n d n on un iform categories. U n iform shoppi n g goods are those goods that are

similar i n quality but differ i n price. Co n sumers will try to justify price differe n ces by

focusi n g on product features. No n un iform goods are those goods that differ i n both quality

an d price.

Specialty goods are products with disti n ctive characteristics or bra n d ide n tificatio n for which

con sumers expe n d exceptio n al buyi n g effort. Specialty goods i n clude specific bra n ds a n d

types of products. Typically, buyers do n ot compare specialty goods with other similar

products because the products are u n ique. U n sought goods are those products or services that

con sumers are n ot readily aware of or do n ot n ormally co n sider buyi n g. Life i n sura n ce

policies a n d burial plots are examples of u n sought goods. O ften , un sought goods require

con siderable promotio n al efforts o n the part of the seller i n order to attract the i n terest of

con sumers.

In dustrial goods are those products used i n the productio n of other goods. Examples of

in dustrial goods i n clude accessory equipme n t, compo n en t parts, i n stallatio n s, operati n g

supplies, raw materials, a n d services. Accessory equipme n t refers to movable items a n d small

office equipme n t items that n ever become part of a fi n al product. O ffice fur n iture a n d fax

machi n es are examples of accessory equipme n t. Compo n en t parts are products that are tur n ed

in to a compo n en t of the fi n al product that does n ot require further processi n g. Compo n en t


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parts are freque n tly custom-made for the fi n al product of which they will become a part. For

example, a computer chip could be produced by o n e ma n ufacturer for use i n computers of

other ma n ufacturers. I n stallatio n s are capital goods that are usually very expe n sive but have a

lon g useful life. Trucks, power ge n erators, a n d mai n frame computers are examples of

in stallatio n s. O perati n g supplies are similar to accessory equipme n t in that they do n ot become part of the fi n ished product. O perati n g supplies i n clude items n ecessary to mai n tai n

an d operate the overall firm, such as clea n ers, file folders, paper, a n d pe n s. Raw materials are

goods sold i n their origi n al form before bei n g processed for use i n other products. Crops,

crude oil, iro n ore, a n d logs are examples of raw materials i n n eed of further processi n g

before bei n g used i n products. The last category of i n dustrial goods is services. O rga n izatio n s

sometimes require the use of services, just as i n dividuals do. Examples of services sought by

orga n izatio n s in clude mai n ten an ce a n d repair a n d legal cou n sel.


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Product mix ;Bajaj

Bajaj Platina 100cc

Baja Platina is a bike built by the Bajaj Auto.Baja Platina borrows extensively from the

Bajaj Wind and Bajaj CT 100 models. The

100 CC Platina was introduced in the year

2006.

Bajaj Platina 125 DTS-Si

The the Platina 125 DTS-Si was introduced

in 2008 it comes with a higher engine

displacement and is powered by Bajaj s

own patented DTS-Si technology.

Bajaj Discover 135 DTS-I

The added engine power gives the BajajDiscover 135 cc greater performance edge

over 125 cc alternatives with the looks of a

125 cc machine. Digital Twin Spark Ignition

(DTS-i) provides better combustion, power,

and mileage. The electric start without a

kick works like a charm.

Bajaj Pulsar 150 DTSi

4 stoke, DTS-i 150 cc have telescopic front

suspension with anti friction bushes.

Legendary DTS-i technology with proven

track record for more power, more

mileage.


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Price

The seco n d eleme n t in marketi n g mix is price. Price is simply the amou n t of mo n ey that

con

sumers are willin

g to pay for a product or service. In

earlier times, the price wasdetermi n ed through a barter process betwee n sellers a n d purchasers. I n moder n times, prici n g

methods a n d strategies have take n a n umber of forms.

Pricin g n ew products a n d prici n g existi n g products require the use of differe n t strategies. For

example, whe n prici n g a n ew product, busi n esses ca n use either market-pe n etratio n prici n g or

a price-skimmi n g strategy. A market-pe n etratio n prici n g strategy i n volves establishi n g a low

Bajaj Pulsar 180 DTSi

Split seats, Clip on handle bar, Anti scratch

tank pad, Two piece grab rail, Aerodynamic

tank flaps, Wolf eyed headlamps L.E.D tail

lamp, Black styling, Kick less start

Bajaj Pulsar 220 DT-Si

A new Pulsar model, the 220 DTS-

i which has a constant-velocity

carburetor instead of fuel injection, is thesuccessor to the fuel injected 220 DTS -

Fi.[ DTS-Fi production and distribution was

halted in 2009.

Bajaj Avenger 200 DTSi

The new Bajaj Avenger 200 DTSi offers a

good cruising experience with its low-slung

rider seat, phenomenal brake system,

advanced engine and gear box. The 5-speed

gearbox and a neat oil-cooler ensure

lowered temperatures.


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product price to attract a large n umber of customers. By co n trast, a price-skimmi n g strategy

is used whe n a high price is established i n order to recover the cost of a n ew product

developme n t as quickly as possible. Ma n ufacturers of computers, videocassette recorders,

an d other tech n ical items with high developme n t costs freque n tly use a price-skimmi n g

strategy.

Pricin g objectives are established as a subset of a n orga n izatio n 's overall objectives. As a

compo n en t of the overall busi n ess objectives, prici n g objectives usually take o n e of four

forms: profitability, volume, meeti n g the competitio n , an d prestige. Profitability prici n g

objectives mea n that the firm focuses mai n ly on maximizi n g its profit. U n der profitability

objectives, a compa n y in creases its prices so that additio n al reve n ue equals the i n crease i n

product productio n costs. Usi n g volume prici n g objectives, a compa n y aims to maximize

sales volume withi n a give n specific profit margi n . The focus of volume prici n g objectives ison in creasi n g sales rather tha n on an immediate i n crease i n profits. Meeti n g the price level of

competitors is a n other prici n g strategy. With a meeti n g-the-competitio n prici n g strategy, the

focus is less o n price a n d more o n n on price competitio n items such as locatio n an d service.

With prestige prici n g, products are priced high a n d co n sumers purchase them as status

symbols.

In additio n to the four basic prici n g strategies, there are five price-adjustme n t strategies:

discou n t prici n g a n d allowa n ces, discrimi n atory prici n g, geographical prici n g, promotio n al

prici n g, a n d psychological prici n g. Discou n t prici n g a n d allowa n ces i n clude cash discou n ts,

fun ction al discou n ts, seaso n al discou n ts, trade-i n allowa n ces, a n d promotio n al allowa n ces.

Discrimi n atory prici n g occurs whe n compa n ies sell products or services at two or more

prices. These price differe n ces may be based o n variables such as age of the customer,

locatio n of sale, orga n izatio n membership, time of day, or seaso n . Geographical prici n g is

based o n the locatio n of the customers. Products may be priced differe n tly in disti n ct regio n s

of a target area because of dema n d differe n ces. Promotio n al prici n g happe n s whe n a

compan

y temporarily prices products below the list price or below cost. Products priced below cost are sometimes called loss leaders. The goal of promotio n al prici n g is to i n crease

short-term sales. Psychological prici n g co n siders prices by looki n g at the psychological

aspects of price. For example, co n sumers freque n tly perceive a relatio n ship betwee n product

price a n d product quality.


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Promotion

Promotio n is the third eleme n t in the marketi n g mix. Promotio n is a commu n icatio n process

that takes place betwee n a busi n ess a n d its various publics. Publics are those i n dividuals a n d

orga n izatio n s that have a n in terest i n what the busi n ess produces a n d offers for sale. Thus, i n

order to be effective, busi n esses n eed to pla n promotio n al activities with the commu n ication

process i n min d. The eleme n ts of the commu n icatio n process are: se n der, e n codi n g, message,

media, decodi n g, receiver, feedback, a n d n oise. The se n der refers to the busi n ess that is

sen din g a promotio n al message to a pote n tial customer. E n codi n g in volves putti n g a message

or promotio n al activity i n to some form. Symbols are formed to represe n t the message. The

sen der tra n smits these symbols through some form of media. Media are methods the se n der

uses to tra n smit the message to the receiver. Decodi n g is the process by which the receiver

tran slates the mea n in g of the symbols se n t by the se n der i n to a form that ca n be u n derstood.

The receiver is the i n ten ded recipie n t of the message. Feedback occurs whe n the receiver

commu n icates back to the se n der. Noise is a n ythi n g that i n terferes with the commu n icatio n

process.


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There are four basic promotio n tools: advertisi n g, sales promotio n , public relatio n s, a n d

perso n al selli n g. Each promotio n tool has its ow n un ique characteristics a n d fu n ction . For

in stan ce, advertisi n g is described as paid, n on perso n al commu n icatio n by a n orga n izatio n

usin g various media to reach its various publics. The purpose of advertisi n g is to i n form or

persuade a targeted audie n ce to purchase a product or service, visit a locatio n , or adopt a n idea. Advertisi n g is also classified as to its i n ten ded purpose. The purpose of product

advertisi n g is to secure the purchase of the product by co n sumers. The purpose of

in stitutio n al advertisi n g is to promote the image or philosophy of a compa n y. Advertisi n g ca n

be further divided i n to six subcategories: pio n eerin g, competitive, comparative, advocacy,

remi n der, a n d cooperative advertisi n g. Pio n eeri n g advertisi n g aims to develop primary

dema n d for the product or product category. Competitive advertisi n g seeks to develop

dema n d for a specific product or service. Comparative advertisi n g seeks to co n trast o n e

product or service with a n other. Advocacy advertisi n g is a n orga n izatio n al approach desig n ed

to support socially respo n sible activities, causes, or messages such as helpi n g feed the

homeless. Remi n der advertisi n g seeks to keep a product or compa n y n ame i n the mi n d of

con sumers by its repetitive n ature. Cooperative advertisi n g occurs whe n wholesalers a n d

retailers work with product ma n ufacturers to produce a si n gle advertisi n g campaig n an d share

the costs. Adva n tages of advertisi n g in clude the ability to reach a large group or audie n ce at a

relatively low cost per i n dividual co n tacted. Further, advertisi n g allows orga n izatio n s to

con trol the message, which mea n s the message ca n be adapted to either a mass or a specific

target audie n ce. Disadva n tages of advertisi n g in clude difficulty i n measuri n g results a n d the

in ability to close sales because there is n o perso n al co n tact betwee n the orga n ization an d

con sumers.

The seco n d promotio n al tool is sales promotio n . Sales promotio n s are short-term i n cen tives

used to e n courage co n sumers to purchase a product or service. There are three basic

categories of sales promotio n : con sumer, trade, a n d busi n ess. Co n sumer promotio n tools

in clude such items as free samples, coupo n s, rebates, price packs, premiums, patro n age

rewards, poi n t-of-purchase coupo n s, co n tests, sweepstakes, a n d games. Trade-promotio n

tools i n clude discou n ts a n d allowa n ces directed at wholesalers a n d retailers. Busi n ess-

promotio n tools i n clude co n ven tion s a n d trade shows. Sales promotio n has several

adva n tages over other promotio n al tools i n that it ca n produce a more immediate co n sumer

respo n se, attract more atte n tion an d create product aware n ess, measure the results, a n d

in crease short-term sales.


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Public relatio n s is the third promotio n al tool. A n orga n izatio n builds positive public relatio n s

with various groups by obtai n in g favorable publicity, establishi n g a good corporate image,

an d ha n dlin g or headi n g off u n favorable rumors, stories, a n d eve n ts. O rga n izatio n s have at

their disposal a variety of tools, such as press releases, product publicity, official

commu n icatio n s, lobbyi n g, a n d cou n seli n g to develop image. Public relatio n s tools areeffective i n developi n g a positive attitude toward the orga n izatio n an d ca n en han ce the

credibility of a product. Public relatio n s activities have the drawback that they may n ot

provide a n accurate measure of their i n flue n ce o n sales as they are n ot directly i n volved with

specific marketi n g goals.

The last promotio n al tool is perso n al selli n g. Perso n al selli n g in volves a n in terperso n al

in flue n ce a n d in formatio n -excha n ge process. There are seve n gen eral steps i n the perso n al

sellin g process: prospecti n g a n d qualifyi n g, pre-approach, approach, prese n tation an ddemo n stratio n , han dlin g objectio n s, closi n g, a n d follow-up. Perso n al selli n g does provide a

measureme n t of effective n ess because a more immediate respo n se is received by the

salesperso n from the customer. A n other adva n tage of perso n al selli n g is that salespeople ca n

shape the i n formatio n prese n ted to fit the n eeds of the customer. Disadva n tages are the high

cost per co n tact a n d depe n den ce on the ability of the salesperso n .

For a promotio n to be effective, orga n izatio n s should ble n d all four promotio n tools together

in order to achieve the promotio n al mix. The promotio n al mix ca n be in fluen ced by a n umber

of factors, i n cludi n g the product itself, the product life-cycle stage, a n d budget. Withi n the

promotio n al mix there are two promotio n al strategies: pull a n d push. Pull strategy occurs

when the ma n ufacturer tries to establish fi n al co n sumer dema n d a n d thus pull the product

through the wholesalers a n d retailers. Advertisi n g a n d sales promotio n are most freque n tly

used i n a pulli n g strategy. Pushi n g strategy, i n con trast, occurs whe n a seller tries to develop

dema n d through i n cen tives to wholesalers a n d retailers, who i n tur n place the product i n fron t

of co n sumers.

Incase of Bajaj:

Bajaj is always k n own for its outsta n din g ads over the period of time. Si n ce its

in ceptio n , Bajaj has come out with variety of ads a n d were always successful i n their

advertiseme n ts. Scooters were well k n own by the bra n d n ame of Bajaj. Be it a n y scooter, o n e

used to recog n ize it by the bra n d n ame Bajaj. This was the ide n tity a decade ago which the


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Bajaj has still mai n tain ed. Bajaj is always k n own for its ads without well-k n own bran d

ambassadors which is agai n a plus poi n t to its cart as it saves a huge cost i n terms of bra n d

ambassadors u n like Hero Ho n da a n d TVS. Prior, Bajaj used to co n vey the feeli n g of

In diann ess in its ads. With a pu n ch li n e Hamara Bajaj Bajaj drove i n to everybodys

hearts a n d the title so n g of Naye Bharat Ki Naye Tasveer added a great value to itsmobikes a n d scooters.

A couple of years back, Bajaj had i n troduced a n advertiseme n t which promoted all the

differe n t ra n ges it had, wherei n they had show n each product they had with a feeli n g of

In diann ess.

A year back, Bajaj i n troduced DTSi tech n ology upgradi n g its always successful

PULSAR 150cc a n d 180cc. Though Bajaj had cha n ged its ide n tity it still domi n ates for its

creativity in

ads.

PULSAR 150cc ( Defi n itely Male )

The co n cept of Defi n itely Male was well accepted by the people a n d Bajaj came out with

some asto n ishi n g ads. Though the DTSi tech n ology was n ew, people accepted it very well. It

easily co n veyed the message it wa n ted to. The followi n g picture strips co n veys the

advertiseme n t: Getti n g on to his bike, a ma n gets all set to make a move. As he puts his

helmet o n , a message appears o n the wi n dshield, 'Partially su nn y from 16:37 hrs.' while the

biker cruises through the city, some army me n are out for their jog. Just before they cross a

road, a zebra crossi n g forms ahead them a n d disappears after them, while the biker waits

patie n tly.


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Place

The fourth eleme n t of the marketi n g mix is place. Place refers to havi n g the right product, i n

the right locatio n , at the right time to be purchased by co n sumers. This proper placeme n t of

products is don

e through middle people called the channel of distribution . The chann

el of distributio n is comprised of i n terdepe n den t ma n ufacturers, wholesalers, a n d retailers. These

groups are i n volved with maki n g a product or service available for use or co n sumptio n . Each

participa n t in the cha nn el of distributio n is co n cer n ed with three basic utilities: time, place,

an d possessio n . Time utility refers to havi n g a product available at the time that will satisfy

the n eeds of co n sumers. Place utility occurs whe n a firm provides satisfactio n by locati n g

products where they ca n be easily acquired by co n sumers. The last utility is possessio n

utility, which mea n s that wholesalers a n d retailers i n the cha nn el of distributio n provide

services to co n sumers with as few obstacles as possible.

Cha nn els of distributio n operate by o n e of two methods: co n ven tion al distributio n or a

vertical marketi n g system. I n the co n ven tion al distributio n cha nn el, there ca n be o n e or more

in depe n den t product ma n ufacturers, wholesalers, a n d retailers i n a cha nn el. The vertical

marketi n g system requires that producers, wholesalers, a n d retailers to work together to avoid

chann el co n flicts.

How ma n ufacturers store, ha n dle, a n d move products to customers at the right time a n d at the

right place is referred to as physical distribution . In con sideri n g physical distributio n ,

man ufacturers n eed to review issues such as distributio n objectives, product tra n sportatio n ,

an d product warehousi n g. Choosi n g the mode of tra n sportatio n requires a n un dersta n din g of

each possible method: rail, truck, water, pipeli n e, a n d air. Rail tra n sportatio n is typically used

to ship farm products, mi n erals, sa n d, chemicals, a n d auto mobiles. Truck tra n sportatio n is

most suitable for tra n sporti n g clothi n g, food, books, computers, a n d paper goods. Water

tran sportatio n is good for oil, grai n , san d, gravel, metallic ores, coal, a n d other heavy items.

Pipeli n e tra n sportatio n is best whe n shippi n g products such as oil or chemicals. Air tra n sport

works best whe n movi n g tech n ical i n strume n ts, perishable products, a n d importa n t

docume n ts.

An other issue of co n cer n to ma n ufacturers is the level of product distributio n . Normally

man ufacturers select from o n e of three levels of distributio n : in ten sive, selective, or

exclusive. I n ten sive distributio n occurs whe n man ufacturers distribute products through all


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wholesalers or retailers that wa n t to offer their products. Selective distributio n occurs whe n

man ufacturers distribute products through a limited, select n umber of wholesalers a n d

retailers. U n der exclusive distributio n , on ly a si n gle wholesaler or retailer is allowed to sell

the product i n a specific geographic area.

Bajajs place mix:

DISTRIBUTION NETWORK

Bajaj Auto is restructuri n g its marketi n g a n d distributio n n etwork to address the differe n t

requireme n ts of the urba n an d rural markets. The compa n y has rece n tly lau n ched its high-e n d

bike dealership Probiki n g a n d is n ow i n the process of categorizi n g its existi n g 479

dealership n etwork i n to urba n an d rural dealerships. Rajiv Bajaj, MD, Bajaj Auto said,

Besides Probiki n g, which is our cha nn el for high-e n d bikes, we will split the rest of thetwo-wheeler dealer n etwork i n to rural a n d urba n . This is bei n g do n e to cater to the differe n t

n eeds of the rural a n d urba n customer i n terms of product, i n frastructure, worki n g capital,

fin an cin g an d servici n g.

As competitio n in creases i n the I n dian motorcycle i n dustry, Bajaj Auto Ltd a n d TVS Motor

Compa n y are chalki n g out aggressive marketi n g pla n s to race ahead i n this sector. I n a bid to

regai n its leadership positio n , Bajaj Auto is pla nn in g to expa n d its distributio n n etwork to

reach out to a wider target audie n ce. Likewise, TVS Motor Compa n y is all set to exte n d the

n umber of its dealership a n d service ce n ters i n the n ear future. Clearly, Bajaj Auto a n d TVS

Motor are shifti n g gears.

On Bajaj Autos distributio n strategy, says Bajaj Auto vice-preside n t (busi n ess & product

developme n t) RL Ravicha n dran : We pla n to expa n d our dealership n etwork a n d service

cen tres to improve our pe n etratio n in to smaller tow n s across the cou n try.

In fact, we pla n to in crease the n umber of dealerships a n d service ce n tres by 20 to 25 per

cen

t. With this move, we will be able to cover town

s with a population

of two to three lakh.

In cide n tally, the compa n y is all set to u n veil its e n try-level motorcycle called BYK this

mon th. Priced at Rs 30,000, BYK is positio n ed as a stylish bike targeted at the e n try-level

audie n ce. O gilvy & Mather I n dia will be desig n in g the commu n icatio n strategy for the n ew

bike from the Bajaj stable. As part of its offli n e promotio n strategy, the compa n y rece n tly


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hosted the Bajaj Boxer I n dia n Telly Awards 2002 o n Star Plus to promote its Bajaj Boxer

ran ge.

SUPPLY CHAIN MANAGEMENT

Vendors Bajaj Auto has a co n solidated base of 180 ve n dors supplyi n g compo n en ts to allBajaj Autos pla n ts. A large n umber of ve n dors are located either n ear Pu n e or Aura n gabad.

Those that are far are e n couraged to tie up with third party logistics providers, who alo n g

with local ve n dors supply multiple deliveries daily to Chaka n & Waluj pla n t. Bajaj Auto has

exte n ded the TPM (Total Preve n tive Mai n ten an ce) to ve n dor as well. Arou n d 60% by value

of Bajaj vehicle is outsourced. Virtually n o compo n en ts are imported & 70% of Bajaj Autos

requireme n ts are sourced from withi n the state of Maharashtra. To improve quality, Bajaj

Auto has also begu n actively assisti n g its suppliers i n fin alizin g joi n t ven tures with

coun terparts i n Japa n , Italy, Taiwa n & Spai n .

Dealers- Bajaj Auto has a n etwork of 550 dealers a n d over 1,582 authorized service ce n ters.

The compa n y pla n s to i n crease the n umber of dealers to 1274 by this fi n an cial year. A large

n umber of these n ew dealerships are pla nn ed i n semi-urba n & rural areas.

Duri n g the fi n an cial year 2007-08, the compa n y exte n ded BASS (Bajaj Auto Service

Stan dard) to sta n dardize the workshops of 250 dealers & 50 authorized service ce n ters. These

programmers i n cluded a u n iform exter n al & i n ter n al look. This i n itiative has improved work

hygie n e, promoted co n siste n t & better service quality, & greater productivity. Faster

tur n arou n d of serviced vehicles coupled with higher spare parts sales i n con verti n g such

workshops i n to in depe n den t profit ce n ters for the dealers.


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Operation Detail

Manufacturing locations

Akurdi, Pune 411035

This is o n e of the oldest pla n t of bajaj auto ltd with productio n capacity of 0.6 millio n

vehicles/ year. The pla n t has bee n closed i n order to equip for four wheeler productio n

Bajaj Nagar, Waluj Aurangabad 431136

This is seco n d pla n t with productio n capacity of 0.86 millio n / year.products ma n ufactured

here are Kristal, XCD a n d plati n a an dcommerial GC series

Chakan Industrial Area, Chakan , Pune 411501

This is the biggest pla n t of bajaj auto Productio n Capacity of 1.2 millio n / year , Product

man ufactured here are pulsar a n d ave n ger a n d commercial Ge series

Pantnagar , Uttarakhand

The most adva n ced pla n t of bajaj auto .It has Capacity of 0.9 millio n vehicles per year .

product ma n ufactured here are plati n a an d XCD.

Infrastructure facilities:

Bajaj Auto Ltd. has well desig n ed i n frastructure facilities. They highly care of clarity

an d arra n geme n t. The whole pla n t has divisio n al area like, offices, operatio n house, godow n ,

an d packi n g departme n t.Bajaj Auto Ltd. l has moder n techn ological machi n es, from this it

can produce products.These machi n ery arra n ged i n operatio n departme n t systematically. The

productio n process is step by step so as per this the machi n ery also arra n geBajaj provide all

the best facilities to their employees, like parki n g, ca n teen , rest room, a n d also proper

worki n g co n dition s. They greatly care of their employees. They pay o n mon thly basis a n d

also give bo n us o n special occasio n s. In this way Philips ca n compete with best pla n t,machi n ery, tech n ology a n d huma n relatio n ship


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Transport & Logistics

This fu n ction of distributio n is n ot ow n ed by the compa n y in an y form. This is outsourced in

toto to the third party ve n dors. The third party here is Tra n sport Corporatio n of I n dia (TCI)

an d a few other private ve n dors. The fleet to be tra n sported is custom-desig n ed for BajajAuto by the ve n dor. Key Facts

There are twenty vendors all across India

} O SL

} Jamu n a Tra n sport

} Sumit Tra n sport} A Tra n sit I n sura n ce Complia n ce Letter(TICL) is sig n ed betwee n the two parties

} The local level sub-dealer sometimes gets to decide the last mile logistics, as he ca n

decide to pick up the vehicles himself or have it tra n sported to him

} Logistics of the ve n dor is decided by the compa n y

} Freight charge is built-i n in the product price

Relation with the supplier firm :

Bajaj auto ltd believes i n good relatio n ship with its suppliers a n d customers. The

suppliers who supply raw material to the compa n y, Bajaj auto pay them regularly. If a n y

when adva n ced payme n t required Bajaj also pay adva n ce for bulky co n sumptio n . Duri n g

ann ual day of the compa n y, Philips rewarded those suppliers who co n tracted with compa n yfor whole year a n d survive compa n y without a n y problems.

Services provided by Bajaj Auto to the dealer

Workshop Trai n in g In a mo n th: 30-40 Mecha n ics ca n be trai n ed per dealer 15-20 Sales perso nn el ca n be trai n ed per dealer New Product Lau n ch In formatio n is percolated arou n d a mo n th before the product is to be lau n ched The date of lau n ch ca n be rescheduled i n case the curre n t stocks of the dealer are n ot

gettin g cleared. Promotio n al Activities


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Key Deliverables in terms of Sales & Distribution Management

Order Tracking -Taki n g a daily accou n t of the order received from various dealers

an d Regio n al O ffices (R O ). O rders from dealers are pu n ched i n by dealer themselves.

O rders are followed up i n the system o n ly if the credit limit is n ot crossed. This credit

limit is preset i n to the system depe n din g upo n the dealer a n d his/her track record.

Packaging -Packagi n g in factory is outsourced to third party ve n dor. These ve n dors

are ge n erally from the Tra n sport & Logistics part n ers

Despatching Goods -Goods n eed to be despatched via third party ve n dor TCI. State

corporatio n s a n d other private players are also part of the ve n dor list.

Generating Invoice & Waybill -These docume n ts n eed to be ge n erated a n d

despatched to the respective dealer

Key Role & Deliverables of Depots

Setti n g up depots is a geographical strategy adopted by Bajaj Auto. But this does n ot mea n

that the compa n y has go n e all out to ope n a large n umber of depots. It has chose n strategic

locatio n s. The key role played by depots is that they are mea n t to cater to a n y sudde n rise i n

dema n d of vehicles, a n d to cover the existi n g geographic spa n of I n dia. Whe n we spoke to

the ma n ageme n t, they explai n ed to us the reaso n s behi n d havi n g a depot i n Kharagpur. There

are two reaso n s for which Kharagpur was chose n to hold a depot for Bajaj Auto. They are as

follows:

y Cateri n g to a sudde n shooti n g up of dema n d- I n Ben gal itself, it is commo n k n owledge

that duri n g the festive seaso n which spa n s from September to November, there is a huge

dema n d as people spe n d more o n festival extravaga n za, a n d it is co n sidered a n

auspicious time to buy household gadgetry. There is a co n spicuous rise i n the sales of

white goods, motor vehicles a n d jewellery.

y Reachi

ng the states of the North-East- As per the people at Bajaj, We take 15 days to

reach the North-East if we go via the carryi n g a n d forwardi n g age n t con cept. Ge n erally

bikes reach West Be n gal i n 7-8 days. The bottle n eck is the Darjeeli n g route. He n ce,

came i n the co n cept of a depot whereby we ca n reach the North-East i n the same time,

in stead of experie n cin g a lag of almost a week.


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MARKET RESEARCH

Accordi n g to Redman and Mory

Research is systematized effort to gai n n ew k n owledge.

Accordi n g to Clifford Woody

Research comprises defi n in g a n d redefi n in g problems, formulati n g hypothesis or

suggested solutio n s, collecti n g orga n izin g a n d evaluati n g data, maki n g deductio n s a n d

reachi n g co n clusio n s a n d at last carefully testi n g the co n clusio n s to determi n e whether they

fit the formulati n g hypothesis.

It has also defi n ed as a careful i n vestigatio n or i n quiry especially through search for n ew fact

in an y bra n ch of k n owledge.

Research comprises defi n in g research problems, formulates the hypothesis, research

desig n in cludi n g sample desig n in g, data collectio n , an alysis of data, i n terpretatio n ,

con clusio n on the basis of i n terpretatio n . Apart from it suggestio n s a n d recomme n datio n s are

also the part of research.

The marketi n g research process i n volves a n umber of i n ter-related activities. I n this process

various i n ter-wove n in to each other a n d each step will have some i n fluen ce over the

followi n g steps.

In marketi n g research, eve n though our focus is o n particular step, other i n ter related step are

also bei n g look i n to simulta n eously. As o n e activity is completed, our focus automatically

n aturally shifts from o n e to a n other.

Marketi n g research is the systematic desig n , collectio n , an alysis a n d reporti n g of data a n d

fin din g releva n t to a specific to a specific marketi n g situatio n faci n g the compa n y.

Research methodology mea n s the method carried out to study out to study the problem. Its

shows the type of research desig n , sources used to acquire data, ha n dlin g challe n ges duri n g

the course of study.

The followi n g are the steps:


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Formulati n g the research problem Choice of research desig n Determi n in g the source of data. Desig n in g the data collectio n form

Determi n in g sampli n g desig n an d sampli n g size Con ducti n g the field survey An alyzi n g the collected data Prepari n g the research report

RESEARCH DESIGN

The formidable problem that follows the task of defi n in g the task of defi n in g the research

problem is the desig n of the research project, popularly k n own as the research desig n . To

defi n e the term research desig n it ca n be said a research desig n is the arra n geme n t of

con ditio n s for collectio n an d a n alysis of data i n a ma nn er that aims to combi n e releva n ce to

the research purpose with eco n omy i n procedure. I n fact the research desig n is the

con ceptual structure withi n which research is co n ducted; it co n stitutes the bluepri n t for the

collectio n , measureme n t a n d a n alysis of data. As such the desig n in cludes a n outli n e of what

the researcher will do from writi n g the hypothesis a n d its operatio n al implicatio n s to the fi n al

an alysis of data.

It a n swers some of the questio n s related with the report like what is the study about, why

the study is bei n g made, where a n d how the study is to be carried out, what type of data is

required a n d where it ca n be fou n d, what will be the sample desig n , what tech n ique is to be

adopted while carryi n g the study etc.

Features of a good design:

y It must be flexible e n ough.y Appropriate a n d efficie n cy must lie i n the report.y It should mi n imize bias a n d maximize the reliability of the data collected.y The desig n must be suitable as per the requireme n t of the case.


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Research design used in this report

y Literature Research: A n alysis with the help of available data.y Experie n ce Survey: Co n sulti n g with the experie n ced officials for a quick y Summary of the mai n issue.

RESEARCH OBJECTIVE

The primary objective behi n d the project was to study the marketi n g mix of Bajaj

automobiles sector

Seco n dary objectives; - To k n ow the perceptio n of customers regardi n g bikes. -

To study the competitive con

dition

s is existen

ce amon

g differen

t two wheeler's- To study effect of advertiseme n t on the purchasi n g decisio n of the co n sumers. - To determi n e the factors i n flue n cin g the choice of customers regardi n g bikes.

SIGNIFICANCE OF THE STUDY: To k n ow about the customer prefere n ce a n d decisio n process with

regard to Bajajs bike.

To k n ow the Basic co n sumer buyi n g behavior a n d the reaso n s because

of which they switch from o n e compa n y to a n other.

To k n ow about the compa n ys details (profile, Products)

This study would help i n reveali n g the type a n d specific qualities of the

bikes offered by the compa n y to their co n sumers.

To study the satisfactio n level of co n sumers who uses bikes.

To study the factors i n flue n ci n g co n sumers to buy Bajajs bikes.

To study effect of advertiseme n t on the purchasi n g decisio n of the

con sumers


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RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem, which is ascie n ce of study how research is do n e scie n tifically. Thus research methodology e n compasses

the research methods or tech n iques; the research is capable of bei n g evaluated either by the

researcher himself or by others.

SAMPLINGSampli n g may be defi n ed as the selectio n of some parts of a n agreeme n t or totality for the

purpose of study. All the items i n an y field of i n quiry co n stitute a u n iverse or populatio n , a

complete e n umeratio n of all the items i n the populatio n is k n own as Ce n sus i n quiry. But

when the field of i n quiry is large this method becomes difficult to adopt because of the

limited n o. of resources i n volved i n the case sample survey method is chose n un der which

un its are selected i n such a way that they represe n t the e n tire u n iverse.

SAMPLING DESIGN

y CENSUS METHOD: - All the items i n an y field of i n quiry co n stitute a Un iverse or

Population . A complete e n umeratio n of all the items i n the Populatio n is k n own as a

Census in quiry. It ca n be presumed that i n such a n in quiry, whe n all items are covered, n oeleme n t of cha n ce is left a n d highest accuracy is obtai n ed. But i n practical it is n ot true i n all

cases. This type of i n quiry i n volves a great deal of time, mo n ey a n d en ergy. Therefore,

when the field of i n quiry is large, this method becomes difficult to adopt because of the

resources i n volved.

y SAMPLING METHOD :- Whe n field studies are u n dertake n in practical life, co n sideratio n

of time a n d cost almost i n variably lead to a selectio n of respo n den ts i.e. selectio n of o n ly

few items. The respo n den t selected should be as represe n tative of total populatio n . These

respo n den ts co n stitute what is tech n ically called a Sample a n d the selectio n process is

called Sampli n g Tech n ique. The survey so co n ducted is k n own as Sample Survey.


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Implementation of Sample Design : - A sample desig n is a defi n ite pla n for obtai n in g a

sample from a give n populatio n . It refers to the tech n ique or the procedure the researcher

would adopt i n selecti n g items for the sample. Sampli n g desig n may as well lay dow n the

n umber of items to be i n cluded i n the sample i.e. the size of sample. Sample desig n is

determi n ed before the data are collected.

Steps In Sampling Design :- While developi n g a research desig n followi n g items are

take n in to co n sideratio n :-

I. Type of universe: - First a n d the foremost step are to clearly defi n e the u n iverse to be

studied. As I have take n the area of Jawahar Nagar(Raipur), so for me here the u n iverse is

Jawahar Nagar area. No doubt it is a fi n ite u n iverse but the area is very big a n d ca n t be

covered easily due to shortage of time.

II. Sampling unit : - A decisio n has to be take n con cer n in g a sampli n g un it before selecti n g

sample. Here my sample u n it in cludes people who ow n bikes.

III. Size of sample : - This refers to the n umber of items to be selected from the u n iverse to

con stitute a sample. Here I have take n the sample of 50 people who have bikes.

IV. Parameters of interest : - In determi n in g the sample desig n , on e must co n sider the

questio n of the specific populatio n parameters which are of i n terest. Here I had take n on ly

perso n s who ow n their bike.

Sampli n g procedure: - Fi n ally the tech n ique of selecti n g the sample is to be dealt

with. That mea n s through which method the sample has bee n collected. There are

various types of selecti n g the sample.


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LIMITATIONS OF THE STUDY:

Various hi n dran ces occurred while carryi n g out the research. They have acted as limitatio n

of the study a n d a few of them are:-

Short time period: The time period for carryi n g out the research was short as a

result of which ma n y facts have bee n left u n explored. Small area for research: The area for study was Yamu n a Nagar which is quite a

small area to judge out the co n sumer prefere n ces for the various bra n ds of

televisio n .

Lack of resources: Lack of time a n d other resources as it was n ot possible tocon duct survey at large level.

Small no. of respondents: On ly 200 respo n den ts have bee n chose n which is a smalln umber, to represe n t whole of the populatio n of college goi n g stude n ts of Yamu n a

Nagar.

Unwillingness of respondents: While collectio n of the data ma n y co n sumers were

un willi n g to fill the questio nn aire. Respo n den ts were havi n g a feeli n g of wastage of

time for them.

Confinement of Price: - Price of the bikes is co n fin ed on ly to a particular period.

So the respo n den ts were n ot able to fill i n proper price of their bikes


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DATA ANALYSIS AND INTERPRETATION

Q1. Which bike do you have ?

BRANDS NO. OF RESPONDENTS

HERO HONDA 32

BAJAJ 14

TVS 2

ANY OTHER 2

TOTAL 50

Interpretations:

y Hero Honda is the most preferred brand in the city as 64% people like to have a Hero Honda

bike.

y TVS & other bikes shares the equal proportion of the market in automobile market.

y BAJAJ auto placed 2 nd position in the market.

64

28

4 4

IKEHEROHONDA BAJAJ TVS OTHER


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Q 2

hi h Mod l do ou h

N A BAJAJ

pl ndo 09 l tin 06 izm 04 is o 02

ssion 08 uls 150/180 05

C wn 11 A

n

01!

!

AL 32 14

" nt p t tions:

y CD Dawn and S # $ endor of % ero % onda i s th e mo st popular bik e among st th e custom ers &

y Ba ja j Platina i s th e mo st pr ef err ed brand for th e custom ers of B' ( ' (

Automobil es )

y Ba ja j Pul sar 150/180 is th e mo st pr ef e rr ed in sport s se gm ent.

0

0

4

6

8

10

1 1

H2 3 4 H4 5 DA

SPLENDOR

PASS6 ON

KARIZMACD Dawn

0

1

1

3

4

5

6

BAJAJ

PLATINA

DISCOVER

PULSARAVENGER


51/66

Q 3 7 In whi 8 h fa mil 9 In 8 om @ l @ A @ l do you Fa ll B

INCC M D LD VD L N C 7 OF RESPON E ENF

100000 - 200000 25

200000 - 300000 18

300000 - 400000 5

Abo A @ 400000 2

TOTAL 50

Int @ G p G @ t a tions:

y 50H

Peopl e ar e ha ving In com e leve l of Rs. 100000-200000 and b e long s to th e middl e class

famil y.

y 10I

Peopl e ar e ha ving in com e of Rs. 3Lacs to 4 Lacs.

0

5

10

15

20

25

INCOME LEVEL

100000 - 200000

200000 - 300000

300000 - 400000

Abo ve 400000


52/66

Q 4 P Fo Q how lon R do you own a bi S T U

No P Of Year s No P Of Re spond e nts

0-1 Year s 4

1-2 Year 29

2-3 Year 10

Abo V e 3 Year s 7

TOTAL 50

Int er pre t a tions:

y Mo st of th e peopl e live in th e city ar e willing to own th e ir bik e for 1-2 year s as th e ir

proportion ar e 58W

.

y Onl y 14X

peopl e ar e loyal with th e ir brand a s th ey be lieve to own th e ir bik e for mor e than 3 year s.

y 8Y

peopl e use d to ha ve th e ir bik e less than an year.

0

5

10

15

20

25

30

NO. O F YEARS

0 - 1 YEAR

1-2 YEARS

2-3 YEARS

ABOVE 4 YEARS


53/66

Q 5 ` For wh a t pu rpos e do you us e y ou r Moto r Bi a e?

Her o Hond a Ba ja j

Off ib

e P urpos e 12 4

Per son a l pu rpos e 8 1

Adc e ntu re 10 8

Oth er 2 1


y 25d

of th e peopl e pr ef e r to ha ve a Hero Honda bik e for th e ir offi ce purpo ses .

y 10/50 peopl e pr ef er Hero Honda for ad ventur e wh ereas 16e

peopl e ar e willing to own a

BAJAJ bike for ad ventur e . y BAJAJ pro vide be tt er produ cts for ad ventur e than th e ir offi ce purpo se bik es .

0

f

4

g

8

10

1 f

HERO HONDA BAJAJ

OFFICE PURPOSE

PERSONAL USE

Adve ntur e

OTHERS


54/66

Q 6 h How do you com e to know a bout this Moto r Bike?


Ne wsp ap er 10 04

Te lev ision 12 05

Maga zine 04 00

Frie nds & Re la tive 06 04


y BAJAJ& Hero Honda both attra cts peopl e from th e ad verti se m ent to se ll th e produ cts.

y Ref eren ce group for BAJAJ also h e lp to creat e a good d emand in th e mark e t a s it sec ur ed.

y BAJAJcould not succee d to attra ct th e peopl e through magazin es wh e reas 8i

peopl e attra cts with th e ad ve rti se m ent mad e by th e Hero Honda through magazin es

0

2

p

6

8

q 0

q 2

q p

q 6

r 8

20

HERO HONDA BAJAJ

NEWSPAPER

TELEVISION

MAGAZINE

FRIENDS & RELATIVES


55/66

Q 7. Does Advertise s ent In f luence your decision in choosing a t otor Bike?

Particulars No. O f Respondents

Yes 26

No 19

Can't Say 5

Interpretations:

y 52% people accepts that advertisement help to chose any brand in the market.

y 10% could not judge whether advertisement is helpful for choosing any brand or not.

26%, 52%19%, 38%

5%, 10%

ADVERTISE ENTYES u v w

x

u 'T Sx

Y


56/66

Q 8 Do you have f ull knowl e d ge a bout Bike s bef ore bu ying?


Yes 23 12

No 09 02


y Nearl y 70y

of th e custom ers hold s full knowl edg e about th e produ ct whi ch th ey bu y.

y Wh e reas for 25

of r es t r ef eren ce group s dominat es in bu ying a produ ct.

0

5

10

15

20

25

HERO HONDA BAJAJ

YES

NO


57/66

Q 9 Which Fac to r be low Inf lue nce y ou r dec ision ?

Par ticular s Her o Hond a Ba ja j

Pr ice 4 4

Mileage 11 5

Q ua lit y 8 2

Re sa le Va lue 7 1

Sta tus Symbol 2 2


y Mileag e of th e bik e influ ences peopl e mo stly to pr ef e r th e sam e . 22

peopl e pr ef er Hero

Honda wh ereas 10

peopl e pr ef er BAJAJ becau se of it s mileag e .

y Wh en th ere is a matt er of pri ce of th e bik e peopl e give priorit y to BAJAJ.

y 16

peopl e go for th e Hero Honda bik e becau se of it s Qualit y.

0

2

4

6

8

10

12

HERO HONDA BAJAJ

PRICE

MILEAGEQUALITY

RESALEVALUE

STATUS SYMBOL

8/8/2019 Ayush Final Repor

ayush final report

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