ppt of grant project
TRANSCRIPT
Presented by: ARPIT DESAI(18)
DIPAK PUROHIT (76)
Research Objective To study motorcycle segment in two-wheeler industry. To analyze the trends of Two-wheeler industry from the
point of view of production, sales and exports. To analyze the BAJAJ as the market competitor.
In the analysis, mostly the secondary data has been used and it may not be as reliable as primary data.
Our research is restricted only to Gandhinagar & Ahmedabad and Mehsana.
Limitations
Industry Overview
Automobile industry is one of the largest industries in India.
It encompasses commercial vehicles, multi utility vehicles, passenger cars, two-wheelers, three-wheelers, tractors and related auto components.
The industry has shown great advances since de licensing and opening up of the sector to foreign direct investment (FDI) in 1993.
Market Share of Two Wheeler Industry
Market Share 2006-07
79.19
3.94
12.834.04
Two-Wheelers CVs PVs Three Wheelers
Category 2005-06 2006-07
Total CVs 353703 391078
Total Passenger vehicles 1209876 1308913
Total Two Wheelers 6529829 7600801
Three Wheelers 374445 434424
Grand Total 8467853 9735216
Automobile Production Trends
Automobile Domestic Sales Trend
Category 2005-06 2006-07 (In Nos.)
Total CVs 318430 350683
Total Passenger Vehicles 1061572 1143037
Scooters 922428 908159
Motorcycles 4964753 5815417
Mopeds 322584 332741
Total Two Wheelers 6209765 7056317
Three Wheelers 307862 360187
Grand Total 7897629 8910224
Automobile Export Trend
Category 2005-06 2006-07 (In Nos.)
Total CVs 29940 40581
Total Passenger Vehicles 166402 175772
Total Two Wheelers 366407 513256
Three Wheelers 66795 76885
Grand Total 629544 806494
INDIA A small beginning in the early 50s when Automobile
Products of India (API) started manufacturing scooters in the country
Only few players were in the market like API, Enfield & Bajaj
The two-wheeler market was opened to foreign competition in the mid-80s
In 1990, the entire automobile industry saw a drastic fall in demand. The Reason for it:
• incessant rise in fuel prices• high input costs• reduced purchasing power due to significant rise in
general price level • credit crunch in consumer financing
INDIA World largest Motorcycle manufacturer Second Largest tractor manufacturer in the world Fifth largest commercial vehicle manufacturer in the
world Fourth largest Car market in Asia India holds huge potential in the automobile sector
including the automobile component sector Advantages:• Technological• Cost and manpower advantage• Largest market
Classification of two wheeler
1. Mopeds
2. Step thru’s
3. Scooterettes or mini
4. Scooters
5. Regular Motorcycles
6. Enfield Diesel Bullet
DEMAND DRIVERS Inadequate public transportation system,
especially in the semi-urban and rural areas; Increased availability of cheap consumer
financing in the past 3-4 years; Increasing availability of fuel-efficient and low-
maintenance models; Increasing urbanization, which creates a need for
personal transportation; Changes in the demographic profile; Difference between two-wheeler and passenger
car prices, which makes two-wheelers the entry level vehicle;
GLOBAL SCENARIO
GLOBAL SCENARIO
37%
24%
7%
6%
5%
3%
3%
15%China
India
Indonesia
Vietnam
Thailand
USA
Brazil
Other
ABOUT BAJAJ AUTO LIMITED
MOTORBIKES OF BAJAJ
BAJAJ MOTORBIKES
MODEL CAPACITY Bajaj Avenger 180 CC Bajaj CT 100 99.27 CC Bajaj Discover
Bajaj Discover 111.63CC
Bajaj Discover DTSi 124.52CC
Bajaj Kawasaki Caliber 111.6 CC
Bajaj Kawasaki Boxer 111.6 CC
BAJAJ MOTORBOKES
Bajaj Pulsar DTSi Pulsar 180 DTS-i UG 180 CC Pulsar 150 DTS-i UG 150CC Pulsar 200 Cc 200CC Pulsar 220 DTS-Fi 220CC
CURRENT SITUATION BAL is currently outperforming the industry growth
rate in two-wheeler segment with 32% growth in year 2006-07 v/s industry growth of 19%.
Market share in Motorcycles is improving with every passing year. It has also increased from 28% in 2006-07 to 31% in 2005-06.
Annual turnover for the year 2006-07 is Rs. 81.06 billion v/s Rs. 63.23 billion a year before - an increase of 28% which is very healthy.
BAL has significant presence in all the three basic segments - Price Segment, Value Segment and Performance Segment - and has been showing increased sales in all the segments over years.
KEY DRIVES FOR BAJAJ AUTO LIMITED
Government policy impact on petrol prices Improvement in disposable income Changes in prices of second-hand cars Implementation of mass transport system Availability of credit for vehicle purchase
BAJAJ PULSAR
Pulsar was launched in direct competition to the Hero Honda's 'CBZ' model in 150 cc plus segment.
The campaign beared innovative punch line of "Definitely Male" positioning Pulsar to be a masculine-looking model with an appeal to the performance sensitive customers.
The Pulsar went one step ahead of Hero Honda's 'CBZ' and launched a twin variant of Pulsar with the 180 cc model.
The model was a great success and has already crossed 1 million mark in sales.
MARKETING ANALYSIS
Q-1 DO YOU THINK TRAFFIC ON THE ROAD IS INCREASED CONSIDERABLY?
YES 84%
NO 16%
Q-2What is preferred mode of daily traveling?
BICYCLE6%
P UBLIC TRANSP ORT
23%
MOP ED11%
MOTOR BIKE31%
SCOOTER11%
FOUR WHEELER
11%
WALK7%
Q-3Do you posses any two wheeler? yes No if yes
Which of the following two wheeler you have?
BAJAJ22%YAMAHA
12%
TVS8%
HONDA9%
LML8%
OTHERS10% HERO
HONDA31%
Q-4Are you satisfied with your existing two wheeler?
YES59%
NO41%
Q-5Have you intend to buy a new two wheeler with in next 6 months?
UNDECIDED35%
PROBABLY WILL NOT
16%
DEFINITELY WILL NOT
11%
DEFINITELY WILL 12%
PROBABLY WILL 26%
Q-6 Select the most frequently used source of information of two wheeler?
MAGAZINE/JOURNAL
11%
OTHERS10% TV AD
38%
FRIENDS & CLOSE ONE
23%PRINT AD
18%
Q-7Please select the criteria for purchase decision of new two wheeler
P RICE27%
P ICK UP18%
MILEAGE23%
STYLE13%
MAINTAINANCE9%
SERVICE CENTRE
10%
Q-8Which of the following criteria does your dealer satisfy?
SERVICE34%DISPLAY
14%
FINANCE OPTION
23%
OTHERS17%
LOCATION12%
Q-9Choose the following bike brand on basis of performance
BAJ AJ P ULSAR
30%
HERO HONDA
KARIZMA20%
BAJ AJ XCD12%
BAJ AJ DISCOVER
10%
HERO HONDA
ACHIEVER7%
TVS AP ACHE
15%
HERO HONDA
GLAMOUR6%
Q-10Are you aware about bajaj pulsar?
YES95%
NO5%
Q-11Which feature of bajaj pulsar people like most?
MAINTAINANCE
15%
SALES SERVICE
10%
MILEAGE
22%
PICK UP
26%
APPEARANCE
19%
IMAGE
8%
Q-12Do you think advertising strategy of pulsar (definitely male) has been justified.
YES81%
NO19%
Q-13Will you call a pulsar a value for money bike?
YES76%
NO24%
Q-14Which other bike compete with bajaj pulsar?
BAJAJ XCD14%
BAJAJ DISCOVERY
18%
HERO HONDA
ACHIEVER8%
HERO HONDA
GLAMOUR9%
HERO HONDA
KARIZMA29%
TVS APACHE
22%
KEY SUCCESS FACTOR1. Fuel efficient engine
2. Product Attributes
3. Technological Aspect
4. Marketing related
5. Distribution related
6. Manufacturing Related
PEST ANALYSIS
Political/Legal Factor Economic Factor Socio-Cultural Factor Technological Factor
Porter’s Five Force Model
1. RIVALRY AMONG PRESENT COMPETITORS
2. THREATS OF NEW ENTRANTS
3. BARGAINING POWER OF SUPPLIERS
4. BARGAINING POWER OF BUYERS
5. THREAT OF SUBSTITUTE
OT ANALYSIS
Opportunities Endless customer need New technologies Liberalization
Threats Change in consumer preference Substitute product New regulation
Findings The Indian Two Wheeler Industry made a remarkable
growth at rate of 19.2 % in year 2006-07.
At present Hero Honda is the market leader in motorcycle segment with approx 50 % market share.
Bajaj is performing quite well in terms of value creation for the stake holders & expanded portfolio of products for each class of people.
Bajaj Auto is at the second rank in the industry with a 29 % of market share and giving a good competition to market leader Hero Honda.
Because of the financial helps provided by companies and banks for vehicles demand and sales of two-wheeler had been increased at a very good rate and reach up to 7 million units in the year 2005-06.
Bajaj pulsar became leader in their range of the bikes due to their performance.
Suggestions Two wheeler companies should come up with
new range of bikes with LPG kit in the era of continuous hike in petrol price.
Two-wheeler company should cut down the prices of the bikes to face the competition from low priced and second hand cars.
To achieve the position of the market leader
bajaj should rethink its strategy. Bajaj should try to minimize the liquidity problem
as it may be a great cause of worry.
Bibliography Web Sites
1.www.ibef.org 2.http://www.herohonda.com
3.http://www.indiainfoline.com4.http://www.bajajauto.com5.www.financialexpress.com6.http://www.indiabudget.nic.in7.www.siam.com8.www.ncra.com
Magazines1.Business Today2.Business World3.Auto India, January 20074.Auto car