Bajaj Two Wheeler Marketing Analysis

Bajaj Auto Limited (BAL) was recognized in 1945, firstly launching scooters and three wheelers a centre in the Indian market. In 1991 it’s properties of the Indian government rule on foreign imports, BAL’s marketing object the development of the Indian two wheeler business from scooters to 2 stroke and 4 stroke bikes with a robust stress on BAL while studying its strategies. Along with the analysis found that BAL moving into developing markets in instruction to increase sales and found a global footmark. According to market report also comprises SWOT study of BAL which will help it to express an actual marketing policy for the next five years. In adding to SWOT analysis, Bajaj auto limited latest model Pulsar DTS-i 220cc,150 cc ,180cc & 135 cc and Discover DTS-i 135 cc & 100cc increased growth suddenly. It’s product quality (maintenance, mileage & service) better than any another Hero Honda, TVS motor product. At present time ,Bajaj very good position in two wheeler industry because It’s changes model half yearly, yearly. It’s also increase market share. Bajaj discover 100 makes new record -over 10 lakh bike sold in just 15 months.

In 2010, Bajaj auto limited launch latest Bajaj Discover 150cc, pulsar 135cc, 220cc model changes in two wheeler market. All the brand comparable with other two wheeler company that it’s all brand were gave better average with new technic & cheaper price.

Table of Contents

COMPANY HISTORY:

‘Inspiring Confidence,’ the tagline, has constructed up confidence, complete pleasure engineering, not only to national customers but also internationally. Recognized just eight periods back in 1926 thru Jamnalal Bajaj, the company has been conferred with India’s major exporter of two-wheeler & three-wheeler. In 2004-05, produce & sales 196,710 units, a great 26 per cent jump over the previous year

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In 2004-05, Bajaj Auto Ltd. sales have increased about 21 per cent which at most Rs 65.4 billion. It’s record in the history of the company. The gross working profit positions at Rs. 9.3 billion, over a record. The profits after tax of the BAL are close to Rs. 7.7 billion, and the pre-tax return on working capital is at an inspiring 80 per cent.

The company strength is product excellence, brilliance in engineering and design, and its aptitude to pleasure the customers. In November 2004, the Pulsar introduced is continually controlling the best segment of the motorcycle market, helping to maintain the market advantage. Discover DTS-i, one more successful bike on Indian roads, is in the ‘value’ segment of the motorcycle market.

It joins a high degree of power with petroleum competence of a 100cc motorcycle.

• The market turns on high economies of device and on high economies of choice.
• The requirement for technical expertise is high.
• Owning a strong supply network is important and is very costly.
• All these brand the fence high enough to be a warning for new candidates

OBJECTIVE:

Bajaj Limited is to deliver the market requirements of transportation by providing two- wheeler. BAL has been manufacturing the list products to supply to the changing market requirements. Founded on the customer feedback, improvements are being made continuously in the current products. It’s wants to be a good market growth in Indian two wheeler Industry.

LITERATURE REVIEW:

‘Marketing is the management process that identifies, anticipates satisfies customer requirements profitably.’ (The Chartered Institute of Marketing)

Marketing is a social & managerial process by which individual & groups obtain what they want and need through creating ,offering and exchanging products of value with others, (kotler, 1991)

The marketing mix helps you define the marketing elements for successfully positioning your market offer. One of the best known models is the Four Ps, which helps you define your marketing options in terms of product, place, price and promotion. Use the model when you are planning a new venture, or evaluating an existing offer, to optimize the impact with your target market.

MARKETING MIX 4’PS MODEL

PROMOTION & ADVERTISING

Earlier tagline ‘Defiantly Male’ but now it’s using tagline ‘Distinctly Ahead’. It inspires confidence and sends message of Free Biking. Its association with stunt mania (MTV) helps at targeting youth.

Hero Honda is world’s no 1 two wheeler sales company. Advertising by Sorav Ganguly & Hirtik Roshan. Hero Honda annual STAR SCREEN AWARDS etc.

TVS Apache selected Bike of the Year in 2006.

Company give a free gifts like electric item, offer price on Diwali, New year any other occasion.

SWOT ANALYSIS:

Strengths:

• Highly knowledgeable management
• Competences of product design & development
• Widespread R&D focus
• Wide spread distribution network
• High performance products across all classes
• High export to national sales ratio
• Great financial support network
• Great economics of scope & scale

Weaknesses:

• Hasn’t employed the extra cash for long
• Still has no recognized brand to match hero Honda’s splendor in customer segment
• Not a global player in malice of enormous capacity
• Not a internationally familiar brand (unlike the JV partner Kawasaki )

Threats:

• The struggles catches-up new innovation in no time
• Threat inexpensive of important motorcycle from china
• Margins getting embraced from both the directions (price as well as cost)
• Tata Ace is a thoughtful struggle for the three- wheeler cargo segment
• Pulsar 135 cc will good competitor to Hero Honda & other bike.

Opportunities:

• Dual growth in two -wheeler market
• Unused market above 180cc in motorcycle
• More adulthood and movements towards higher-end motorcycles
• The increasing gearless trendy scooter and scootte market
• Increasing world demand for entry-level motorcycle particularly in emerging markets.
• BAL is devoted to discouragement of pollution, continual development of environment presentation and obedience with all environmental rule and regulations. They always trust in as long as the customer ‘value for money’ and save a special eye upon excellence, security, productivity, cost and distribution.

THE INVEITABLE CHANGE:

Bajaj on interior analysis found that it required –

1. The practical knowledge to deliver modest goods.
2. The design knowledge.
3. And the instant incapability to support the attack of competitors.

Bajaj to expression for an global partner who could transport in technology and also proposal some basic stages to be factory-made and promoted in India. In Japan, Kawasaki is a world-renowned producer of high presentation bikes. In 1990, Bajaj arrived into a planned tie-up with Kawasaki to improve its product line and gen up-gradation to support long-term plans.

This helped the purpose of satisfying the market rivalry for a whereas. From 1996 to 2000, Bajaj capitalized extremely in infrastructure though concurrently developing product design and innovation competences, which is the prime reason behind the lively Bajaj of 21st century. After 2001, Bajaj introduced a swing of products right from entry-level motorbike to the best segment right and since then it’s wet success all the technique for Bajaj.

Previous sector, Bajaj had inspiring performance increasing at a rate of 20%+ when the main producer produced at just 6%. This stands a testament to the numerous significant strategic choices over the previous period.

MARKET SEGMENTATION:

BRAND POSITION:

Bajaj Auto is a top company of Bajaj group. Bajaj Auto Limited (BAL) is presently India’s second largest & world’s fourth largest two-wheeler and three wheeler producer. The vital ability of Bajaj Auto Ltd is its technology and invention. Both DTS-i (Digital Twin Spark Ignition) and DTS-Fi (Digital Twin Spark Fuel Ignition) are technological advances by Bajaj. BAL is also a innovator in product innovation having accessible technologies such as Exhaust TEC (Exhaust Torque Expansion Chamber), LED tail lamps, LCD Display, SNS, Spare parts (Rear disc brakes, tube less tyres), Black colour system etc.

Similarly, the company also learnt that deviation was another important part of its focus on specialism, with the Discover obviously located for the customer section and the Pulsar as the ‘sporty’ option. The features, so, had to be high-class for each product in terms of looks and trip while protection profitability.

Since Bajaj Auto’s point of view, the customer and sporty parts are the backbone of India’s motorbike market. And even while it has bikes to proposal from the KTM and Kawasaki firm, these largely continue in the place category as off-road and on-road players understanding into incomplete numbers.

MARKETING STRETEGIES:

The focus of BAL rotten twilight has been on as long as the best models at modest values .Most of the Bajaj models come loaded with the modern landscapes within the price group suitable by the market. BAL has been the innovator in widening competition into as long as newest features in the price section by informing the low price bikes. The latest features like twin spark, disk-brakes, anti-skid DTS-I technology and dual suspension, etc. who increase great growth in two wheeler industry.

BAL accepted different promotion policies for different models, few of them are deliberated by table:

Strategies

Model

Engine

Technology

Market

Kawasaki 4s champion

100cc

Bajaj first bike launched that time Hero Honda is a great market leader In fuel efficient bike & Yamaha is performance bike

Boxer

100cc

AT/CT/AR three models come in market with good technology.

Target rural population & price delicate client. Boxer marketed as a worth for money bike a great mileage. It was in straight struggle to Hero Honda Dawn and Suzuki MX100.

Pulsar

new150cc, 180cc,135 cc & 220cc, 200cc,

DTS-I (digital twin spark ignition), DTS-Fi, Exhaus TEC (Exhaust Torque Expansion Chamber),

Self-start

Pulsar was launched in direct competition to the Hero Honda’s ‘CBZ’ model in 150 cc plus segment. all model was a great success and has already crossed 1 million marks in sales. Pulsar bike achieve very good market growth day by day

Platina

100cc, 125cc

DTS-i. Self-start

Bajaj Platina is a leader in mileage & appearances in the 100 cc class The Platina 125cc bike has a well-ordered expression along with a great rev-up and acceleration.

IMPLEMENTATION:

Although the avalanche of motorcycles offered Indian customers a wide variety of models to select from, it also resulted in increased weight on the companies to essence on cost-cuts, technology improvements and up-gradations and fashioning. Their margins came under weight as marketing costs intensified.

The companies were compulsory to decrease prices and proposal reductions to live the competition. Moreover, analysts were cynical about the segment’s ability to uphold the development rate in the years to come. One of the main expectations original the motorbikes rush was that if the market was significantly large and was growing at a constant step, there was room for a profitable being for all products.

In 2001, there were over 30 motorbike products in the market. Though, with the top five brands accounting for more than 60% of the market, only 40% of the market was accessible for all other new products put together. In spite of the launch of more vehicles, the endurance forecasts of many of the individual brands were believed to be slightly unwelcoming.

Further, the development in the motorbike segment was dependant on on-going positive market situations. Analysts requested that to withstand this growth rate, the section would have to totally cannibalize the market for scooters and a significant part of the market for scooters and mopeds.

As the fast increasing scooters segment, with high demand from female clienteles, followed by the temperately growing moped segment and the rearrangement in the scooter section thru major national and foreign companies supporting their attendance, it was unlikely that the whole growth in the two-wheeler subdivision would be due to motorbikes.

Forecasters also observed that as the two-wheeler manufacturing had grown gradually for eight years, periods in the product life series would apply to the ground rather, rather than future and the weakening stage would usually come sometime. There was little difference between the products being launched separately from designing as most companies had presented their four-stroke vehicles. The Indian companies would succeed in producing the kind of volumes wanted to endure in the modest motorbike market, remainders to be understood.

RECOMMENDATION:

Focus on High Margin Products: About 50% of the two-wheeler customers buy high class products (products of executive and best segment motorcycles). Limits on these products are higher.

BAL should accept a thoughtful strategy of concentrating on executive and best section motorbikes and three-wheelers, and is plummeting its essential on lower-end of motorbikes and scooters section.

High margin products-Pulsar, Discover and Avenger. Low margin products – Platina, Scooters and Mopeds.

Bajaj cumulative competition in the economy section and limited scope from cost saving events, it is believed this strategy of concentrating on higher margin products would allow the company in retentive its operating margins.

CONCIUSION:

It has been more than 50 years currently that bikes have been ruling the Indian automobile segment. In 1955, the Indian government wanted durable and dependable motorbikes for its Military and forces to patrol the rough border thoroughfares. The first lot of 350cc Bullet – the wonderful motorbike in India of all times, from the Royal Enfield Company of UK were conventional and collected at Chennai. The latest model launched new Pulsar 220cc, 135cc & Discover 135cc, 100cc also increase better value in two wheeler markets. It’s effect on Bajaj auto business. Rahul Bajaj chairman of Bajaj two wheeler. They change many models that increase company growth. Company CEO S. Sridhar change Forman, mechanical, technical staff & product quality to improve bike brand. Since then, bikes in India have been prosperous as a two wheelers segment, and Indian bikes ahead on popularity all crossways the world.