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COMMUNICAN MIX

A STUDY ON COMMUNICATION MIX AT VARUN MOTARS

VISAKHAPATNAM

A project report Submitted in Partial Fulfillment of


The Required for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by
ESWARARAO VAKADA
(H.T.No.20854100054)
FINANCE & MARKETING

Under the Guidance of


Mrs.G.SUBHA., M.B.A..
Assistant Professor

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION


ADITYA INSTITUTE OF P.G STUDIES
(Approved by AICTE, Affiliated to AU, & Accredited by NBA)
Aditya Nagar, ADB Road, SURAMPALEM-5334372008-10

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ADITYA INSTITUTE OF P.G.STUDIES


DEPARTMENT OF BUSINESS MANAGEMENT
(Approved By Aicte, Affiliated To AU, &Accredited By Nba)

Aditya Nagar, ADB Road, SURAMPALEM-533437


========================================================================

CERTIFICATE

This is to certify that the project entitled MARKETIN COMMUNICATION MIX


is the bonafide work done by Mr.ESWARARAO VAKADA during the period 2008-10 in
partial fulfillment of the requirement for the award of the Degree of MASTER OF
BUSINESS ADMINISTRATION IN ADITYA INSTITUTE OF P.G. STUDIES affiliated
to AU.

PROJECT GUIDE:

HEAD OF THE DEPARTMENT

Mrs.G.Subha

Mr. J.NAGENDRA KUMAR

Assistant Professor,
Department of MBA

Department of MBA

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DECLARATION OF THE STUDENT

I hereby declare that the project report entitled A STUDY ON MARKETING


COMMUNICATION MIX submitted for the degree of Master of Business Administration
is my original work and has not formed the basis for the award of any degree, diploma,
associate ship, fellowship (or) similar other titles. It has not been submitted to any other
University or Institution for the award of M.B.A.

Place : KAKINADA
Date:

(ESWARARAOVAKADA)
Regd. No. 20854100054

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ACKNOWLEDGEMENTS
I should take the responsibility to acknowledge the following distinguished
personalities who graciously allowed me to carry out this project work successively.
I am also thankful to all other members of the staff for their kind cooperation in
this behalf. Mainly I am very much thankful to Mr. J.NAGENDRA KUMAR, M.B.A, and
Head of the department of management studies.
I am highly thankful to my guide Mrs.G.SUBHA madam, M.B.A, Assistant Professor
for her valuable advices and encouragement throughout the course.
I express my deep sense of gratitude to Mr. A.SRINIVAS (general manager)
for his kind help and valuable suggestions in preparing this project and also to office staff
members.
I also express my sincere thanks to my friends and classmates for their advice
and suggestions in giving a proper shape to study.

(Eswararao vakada)

CONTENTS

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CHAPTER I
INTRODUCTION
I.1

Objective of the study

I.2

Need for the study

I.3

Scope of the Study

I.4

Methodology

I.5

Limitations

CHAPTER II

Page no
1-7

8-25

INDUSTRY PROFILE

CHAPTER III

26-49

COMPANY PROFILE

CHAPTER IV

50-73

THEORETICAL FRAME WORK

CHAPTER V

74-88

DATA ANALYSIS AND INTERPRETATION

CHAPTER VI
6.1

FINDINGS

6.2

SUGGESTIONS

6.3

CONCLUSION

QUESTIONNAIRE
BIBLIOGRAPHY

89-94

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CHAPTER 1
INTRODUCTION

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1.INTRODUCTION
In the present every customer is expecting a good quality and service for that price
they pay to the product, so with increasing expectations of the customer every company wants
provide good service optimally to increase their sales.

A service is an act or performance that one party can offer to another that is
essentially intangibly and does not result it the ownership of anything.

After industrial revolution there are many changes in the industrial scenario.
Industrialization and liberalization has lead to establishment of many MNC industries in
Indian market. Increasing technological knowledge about products in market.

The role of service and quality provided by manufactures is becoming very


important. some of the buyers are even taking them, as decision factors are the product
differentiation is becoming very narrow and all the products offering are becoming similar. So
with the changing scenario the quality and services of the BAJAJ showroom attracted me.

The present study, communication mix done at varun motors Bajaj showroom,
visakapatanam tries to find out the impact of Bajajs marketing communication on customers
of Bajaj.

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1.1NEED FOR THE STUDY

Now-a-days customers are aware of what get for the value paid and they are
wasting no time to get it. Gone are the days when one has to book the vehicles to arrive.
Now it is the with people stopping at one of the showroom and finalizing the deal, model
and the make before walking quietly away.

Today consumers not only chose the best product for their requirement but also
demand value for his money. The bike showrooms also have undergone changes. They have
become single point of contract for the customers before and after purchase of the bikes.
The entry of MNCs is definitely a big boom to a bike market with high
customers expectations. This is turn has forced all bike manufactures to look away the means
of adding value to their product and service.
The future looks bright for the Indian bike buyer as well as the manufacher who
are willing to go that extra mile to satisfy consumers, so, it is essential management analysis
the organization market opportunity to find the market with there to untapped, which is base
for its existence. Hence, bike markets should evince interest to know the buyers perceptions
about their marketing communication.

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1.2 Scope of the study

This study is confirmed only to the two wheeler owners owning BAJAJ motors
Vehicles brands only in Visakhapatnam. The study covered employees from various
Offices, businessmen, and students. The respondents are given questionnaire in petrol
Bunks, offices, and shops and asked to fill the questionnaire. For this study 100
Respondents are given questionnaire to fill the answers.

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1.3 OBJECTIVES OF THE STUDY

To analyze the perception of prospective customers on the marketing


communication efforts by BAJAJ auto Ltd.

To study the impact of several marketing communication mix elements such as


advertising, sales promotion, publicity, direct marketing in regard to the sale of
two wheelers.

To study the companys public relations in building image/reputation.

To assess the effort of the company in promoting their products.

To assess the amount of awareness in their customers about the product offering
in BAJAJ.

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1.4 LIMITATIONS OF THE STUDY

As the time span was limited 45 days the entire sample customer could not be
covered in the course of the study.

The area selected was limited only to Vishakhapatnam.

Difficulty in collection of accurate data as there is possibility of based answers


from the respondents hence the information collected might not be an accurate
one.

The size of sample has been restricted to 100. Hence this small sample makes its
difficult to apply it to the universal group.

As the customer satisfaction is intangible and the measurement was difficult.

Change of customers addresses that was the communicated to the company has
provided to my study. Some customers were contacted personally surveyed
through telephonic interview.

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1.5 METHODOLOGY FOR THE STUDY

The method of the study is through collection, study and analysis of data collected
from various sources and publications about the industry and company and also from the
internal sources with in the company. The data is collected mainly from the consumers.
The methodology of the study has involved the gathering of information initially
from the two sources.

Primary data

Secondary data.

PRIMARY DATA
Primary data is collected with the help of finalized questionnaire, which includes
first hand collection of information from consumers. It can be viewed as survey. The
questionnaire was especially designed to find the consumer behavior. Most of the information
is collected by meeting the consumers at different areas in Kakinada.

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SECONDARY DATA
Information was gathered from company records, annual reports of company,
periodicals, articles and prescribed books.
After gathering the data from these two sources the data was analyzed tabulated,
interpretation was written down and finally suggestions were made regarding the entire project
a simple random sample of consumer has been taken from the particular area.
DATA ANALYSIS
A careful analysis on the obtained data has been tabulated and conclusions have been
given with help of simple statistical techniques like percentage.

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CHAFTER 2
THE SCENARAO OF TWO-WHEELER
INDUSTRY IN INDIA

INDUSTRY PROFILE

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Invention of Two-Wheeler :
The invention of the first two-wheeler is a much-debated issue. "Who invented the first
motorcycle?" may seem like a simple question, but the answer is quite complicated. Twowheelers owe their descent to the "safety" bicycle, i.e., bicycles with front and rear wheel of
the same size, with a pedal crank mechanism to drive the rear wheel. Those bicycles, in turn
descended from high-wheel bicycles.
The high-wheelers descended from an early type of pushbike, without pedals,
propelled by the rider's feet pushing against the ground. These appeared around 1800, used
iron-banded wagon wheel, and were called "bone-crushers," both for their jarring ride, and
their tendency to toss their riders. Gottlieb Daimler (who later teamed up with Karl Benz to
form the Daimler-Benz Corporation) is credited with building the first motorcycle in 1885,
one wheel in the front and one in the back, although it had a smaller spring-loaded outrigger
wheel on each side. It was constructed mostly of wood, the wheels were of the iron-banded
wooden-spooked wagon-type, it definitely had a bone-crusher chassis.

This two-wheeler was powered by a single-cylinder Otto-cycle engine, and may have
had a spray-type carburetor. (Wilhelm May Bach, Daimler's assistant, was working on the
invention of the spray carburetor at the time). If two wheels with steam propulsion can be
called a motorcycle, then the first one may have been American. One such machine was
demonstrated at fairs and circuses in the eastern US in 1867.
This was built by one Sylvester Howard Roper of Roxbury, Massachusetts. There is an
existing example of a Roper machine, dated 1869. A charcoal-fired two-cylinder engine,

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whose connecting rods directly drive a crank on the rear wheel, powers it. This machine
predates the invention of the safety bicycle by many years, so its chassis is also based on the
"bone-crusher" bike.

History:

The Britannica Encyclopedia describes a motorcycle as a bicycle or tricycle propelled


by an internal-combustion engine (or, less often, by an electric engine).The motors on
minibuses, scooters, and mopeds, or motorized velocipedes, are usually air-cooled and range
from 25 to 250 cubic cm (1.5 to 15 cubic inches) in displacement; the multiple-cylinder
motorcycles have displacements of more than 1,300 cubic cm. The automobile was the reply
to the 19th-century dream of self-propelling the horse-drawn carriage. Similarly, the invention
of the motorcycle created the self-propelled bicycle.

The first commercial design was a three-wheeler built by Edward Butler in Great
Britain in 1884. This employed a horizontal single-cylinder gasoline engine mounted between
two steer able front wheels and connected by a drive chain to the rare wheel.

The 1900s saw the conversion of many bicycles, or pedal cycles by adding small,
centrally mounted spark ignition engines. There was then felt the need for reliable
constructions. This led to road trial tests and competition between manufacturers. Tourist

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Trophy (TT) races were held on the Isle of Man in 1907 as reliability or endurance races. Such
were the proving ground for many new ideas from early two-stroke-cycle designs to
supercharged, multivalent engines mounted on aerodynamic, carbon-fibre reinforced
bodywork.

Two-wheelers owe their descent to the "safety" bicycle, i.e., bicycles with front and
rear wheels of the same size, with a pedal crank mechanism to drive the rear wheel. Those
bicycles, in turn descended from high-wheel bicycles. The high-wheelers descended from an
early type of pushbike, without pedals, propelled by the rider's feet pushing against the
ground. These appeared around 1800, used iron-banded wagon wheels, and were called "bonecrushers," both for their jarring ride, and their tendency to toss their riders.

Gottlieb Daimler (who later teamed up with Karl Benz to form the Daimler-Benz
Corporation) is credited with building the first motorcycle in 1885, one wheel in the front and
one in the back, although it had a smaller spring-loaded outrigger wheel on each side. It was
constructed mostly of wood, the wheels were of the iron-banded wooden-spooked wagontype, it definitely had a "bone-crusher" chassis! This two-wheeler was powered by a singlecylinder Otto-cycle engine, and may have had a spray-type carburetor. (Wilhelm May Bach,
Daimler's assistant, was working on the invention of the spray carburetor at the time).
If two wheels with steam propulsion can be called a motorcycle, then the first
one may have been American.
One such machine was demonstrated at fairs and circuses in the eastern US in 1867.
This was built by one Sylvester Howard Roper of Roxbury, Massachusetts. There is an

COMMUNICAN MIX

existing example of a Roper machine, dated 1869. A charcoal-fired two-cylinder engine,


whose connecting rods directly drive a crank on the rear wheel, powers it. This machine
predates the invention of the safety bicycle by many years, so its chassis is also based on the
"bone-crusher" bike.

Origin of Motor-Scooters :

Edward Butler, an Englishman, built the first motor tricycle in 1884. The first
gasoline-engine motorcycle to appear publicly was built by Gottlieb Daimler, of Bad
Constant, Germany, in 1885. The first practical engines and motorcycles were designed by the
French and Belgians, followed by British, German, Italian and American makers.

The popularity of the vehicle grew, especially after 1910. During World War I the
motorcycle was used by all branches of the armed forces in Europe, principally for
dispatching. After the war it enjoyed a sport vogue until the Great Depression began in 1929.
After World War II a revival of interest in motorcycles lasted into the late 20th century, with
the vehicle being used for high speed touring and sports competitions.

The practice of attaching auxiliary engines to bicycles in Western Europe and parts of
the United States led to the development during the 1950s of a new type of light motorcycle,
the moped. Originating in Germany as a 50-cubic-centimetre machine with simple controls

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and low initial cost, it was largely free of licensing and insurance regulations in except in great
Brittan.

The more sophisticated motor scooter originated in Italy soon after World War
II, led by manufacture of a 125-cubic-centimetre model. Despite strong competition from
West Germany, France, Austria, and Britain, the Italian scooters maintained the lead in the
diminishing market. The scooter has small wheels from 20 to 36 cm (8 to 14 inches) in
diameter, and the rider sits inside the frame. Power units are placed low and close to the rear
wheel, which is driven by bevel gearing or chain. Capacities vary from 50 to 225 cubic cm,
and four-speed gearing is common.

Initial Hits:
Most of the development during this earliest of eras concentrated onthree and fourwheeled designs, since it was complex enough to get the machines running without having to
worry about them falling over. The next really notable two-wheeler was the Millet of 1892. It
used a 5-cylinder engine built as the hub of its rear wheel. The cylinders rotated with the
wheel, and its crankshaft constitutes the rare wheel.
The first really successful production two-wheeler though, was the Hildebrand & Wolf
Mueller, patented in Munich in 1894. It had a step-through frame, with its fuel tank mounted
on the down tube. The engine was a parallel twin, mounted low on the frame, with its
cylinders going fore-and-aft.

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The connecting rods connected directly to a crank on the rear axle, and instead of
using heavy flywheels for energy storage between cylinder-firing, it used a pair of stout elastic
bands, one on each side outboard of the cylinders, to help out on the compression strokes. It
was water-cooled, and had a water tank/radiator built into the top of the rear fender.

In 1895, the French firm of DeDion-Buton built an engine that was to make the mass
production and common use of motorcycles possible. It was a small, light, high revving fourstroke single, and used battery-and-coil ignition, doing away with the troublesome hot-tube.
Bore and stroke figures of 50mm by 70mm gave a displacement of 138cc. A total loss
lubrication system was employed to drip oil into the crankcase through a metering valve,
which then sloshed around to lubricate and cool components before dumping it on the ground
via a breather.

DeDion-Buton used this 1/2 horsepower power plant in road going trikes, but the
engine was copied and used by everybody, including Indian and Harley-Davidson in the U.S.
Although a gentleman named Pennington built some machines around 1895 (it's uncertain
whether any of them actually ran), the first US production motorcycle was the Orient-Aster,
built by the Metz Company in Waltham, Massachusetts in 1898. It used an Aster engine that

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Two Wheelers in India:

India, is the second largest producer of two-wheelers in the world. In the last few
years, the Indian two-wheeler industry has seen spectacular growth. The country stands next
to China and Japan in terms of production and sales respectively. Majority of Indians,
especially the youngsters prefer motorbikes rather than cars. Capturing a large share in the
two-wheeler industry, bikes and scooters cover a major segment. Bikes are considered to be
the favorite among the youth generation, as they help in easy commutation. Large varieties of
two wheelers are available in the market, known for their latest technology and enhanced
mileage. Indian bikes, scooters and mopeds represent style and class for both men and women
in India.

Two-wheelers are the most popular and highly sought out medium of transport in
India. The trend of owning two-wheelers is due to its

Economical price

Safety

Fuel-efficient

Comfort level
However, few Indian bike enthusiasts prefer high performance imported bikes. Some

of the most popular high-speed bikes are Suzuki Hayabusa, Kawasaki Ninja, Suzuki Zane.

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Demand Drivers:

The demand for two-wheelers has been influenced by a number of factors over the past
five years. The key demand drivers for the growth of the two-wheeler industry are as follows:

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;
Steady increase in per capita income over the past five years; and
Increasing number of models with different features to satisfy diverse consumer needs.
While the demand drivers listed here operate at the broad level, segmental
demand is influenced by segment-specific factors.

Manufacturers:
As the following graph indicates, the Indian two-wheeler industry is highly
concentrated, with three players-Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj
Auto) and TVS Motor Company Ltd (TVS) - accounting for over 80% of the industry sales as

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in 9MFY2005. The other key players in the two-wheeler industry are Kinetic Motor Company
Ltd (KMCL), Kinetic Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India Ltd
(Yamaha), Majestic Auto Ltd (Majestic Auto), Royal Enfield Ltd (REL) and Honda
Motorcycle & Scooter India (P) Ltd (HMSI).

Although the three players have dominated the market for a relative long period of
time, their individual market shares have undergone a major change. Bajaj Auto was the
undisputed market leader till FY2000, accounting for 32% of the two-wheeler industry
volumes in the country that year. Bajaj Auto dominance arose from its complete hold over the
scooter market. However, as the demand started shifting towards motorcycles

Technology

Hitherto, technology transfer to the Indian two-wheeler industry took place mainly
through: licensing and technical collaboration (as in the case of Bajaj Auto and LML); and
joint ventures (HHML).

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A third form - that is, the 100% owned subsidiary route - found favour in the early
2000s. A case in point is HMSI, a 100% subsidiary of Honda, Japan. Table 2 details the
alliances of some major two-wheeler manufacturers in India.

Besides the below mentioned technology alliances, Suzuki Motor Corporation has
also followed the strategy of joint ventures (SMC reportedly acquired equity stake in Integra
Overseas Limited for manufacturing and marketing Suzuki motorcycles in India).

Table 2
Technological tie-ups of Select Players
Nature of Alliance
Bajaj Auto Technological tie-up

Company

Product

Kawasaki Heavy Industries Ltd, Motorcycles


Japan

Technological tie-up

Tokya R&D Co Ltd, Japan

Two-wheelers

Technological tie-up

Kubota Corp, Japan

Diesel

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Engines
HHML

Joint Venture

Honda Motor Co, Japan

Motorcycles

KEL

Technological tie-up

Hyosung Motors & Machinery Motorcycles


Inc

KEL

Tie up for

Italjet, Italy

Scooters

manufacturing
and distribution
LML

Technological tie-up

Daelim Motor Co Ltd

Motorcycles

Hero

Technological tie-up

Aprilia of Italy

Scooters

Motors

With the two-wheeler market, especially the motorcycle market, becoming


extremely competitive and the life cycle of products getting shorter, the ability to offer new
models to meet fast changing customer preferences has become imperative. In this context, the
ability to deliver newer products calls for sound technological backing and this has become
one of the critical differentiating factor among companies in the domestic market. Thus, the
players have increased their focus on research and development with some having
indigenously developed new models as well as improved technologies to cater to the domestic
market. Further, with exports being one of the thrust areas for some Indian two-wheeler
companies, the Indian original equipment manufacturers (OEMs) have realized the need to
upgrade their technical capabilities. These relate to three main areas: fuel economy,
environmental compliance, and performance. In India, because of the cost-sensitive nature of
the market, fuel efficiency had been an interest area for manufacturers.

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It is not only that the OEMs are increasing their focus on in-house R&D, they also
provide support to the vendors to upgrade the technology and also assist them striking
technological alliances.

TRENDS IN THE TWO-WHEELER INDUSTRY:


Companies raising capacity to meet the growing demand

All the major two-wheeler manufacturers, viz. Bajaj Auto, HHML, TYS, HMSI
and others, have increased their manufacturing capacities in the recent past. The total capacity
of these players stood at 7.8 million units per annum (FY2003) as against total market sales of
3.8 million units in FY2002. Most of the players have either expanded capacity, or converted
their existing capacities for scooters and mopeds into those for manufacturing motorcycles.
The move has been prompted by the rapid growth reported by the motorcycles segment since
FY1995.

HHML increased the capacity of its plants from 1.8 million units in FY2003 to
2.25 million in FY2004 and has been able to achieve 92% capacity utilization. In light of the

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increase in demand for motorcycles, the company plans to set up a new plant. Since its entry in
the Indian market during FY2002, HMSI has aggressively expanded its capacity.

Niche markets also witnessing intense competition


A significant trend witnessed over the past five years is the inclination of
consumers towards products with superior features and styling. Better awareness about
international models has raised expectations of consumers on some key attributes, especially
quality, styling, and performance. High competitive intensity has prompted players to launch
vehicles with improved attributes at a price less than the competitive models.

In an effort to satisfy the distinct needs of consumers, producers are identifying


emerging consumer preferences and developing new models. For instance, in the motorcycles
segment, motorcycles with engine capacity over 150cc, is a segment that has witnessed
significant new product launches and hence, become more competitive. The indigenously
launched Pulsar 150 had met with success on its launch and thereafter, a host of models have
been launched in this segment by various players. While Bajaj Auto launched the Pulsars (150

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and 180 cc) with digital twin spark technology (DTSi) that offers a powerful engine and fuel
efficiency of 125 cc models, model launches by other players include LML's Graptor/Beamer,
HMSI's Unicorn besides the HHML's CBZ (improved version launched in 2003-04) and TVS'
Fiero F2. Moreover, in the recent past, the motorcycle segment has witnessed launch of
vehicles with higher engine capacity (higher than 150cc) and power (higher than 15bhp).
These include models such as Bajaj Auto Eliminator and Royal Enfield's Thunderbird
followed by HHML's Karisma. Besides these, KEL has launched premium segment
motorcycles GF 170 and GF Laser besides launching products.
from the portfolio of its The products in this segment cater for style conscious
consumers. Quite a few players are developing models combining features such as higher
engine capacity" optimum mix of power and performance, and superior styling. However, the
extent of shift to these products would depend on the positioning of such products in terms of
price.

In the scooters segment, the market for plastic-bodied variomatic scooters


continues to witness growth in the scenario of overall decline in scooter volumes. Higher
volumes and growth are especially true for certain scooter models, such as Honda Activa, that
brought in new technology (besides variomatic transmission) to further differentiate
themselves. Thus, the need to differentiate and create a niche has led to companies
strengthening their research and development (R&D) capabilities and reducing the
development time for new models.

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Increasing focus on exports

For the first nine months of FY2005, two-wheeler exports increased by 37% over
the corresponding previous, led mainly by motorcycles even as exports of other two-wheelers
were healthy. While motorcycle exports increased by 40%, scooter and moped exports
increased by 29% and 27% respectively.

Motorcycle exports by Bajaj Auto, HHML and TVS have reported a tobust growth
in FY2005 and are expected to increase further in the medium term.
Table 3
Two-Wheeler Exports from India (in numbers)
FY2000 FY2001 FY2002 FY2003 FY2004 CAGR

9MFY2005

(FY200004)
Scooters

20,188

25,625

28332

30116

53148

27.4

44832

Motorcycles 35,295

41,339

56,880 126122 187287

51.4

188807

Mopeds

27,754

44,174

18,971

24234

-3.3

22739

Total

83,237 111,138 104183 179568 264669

33.5

256378

23330

Source: SIAM

Although the Indian two-wheeler manufacturers have forayed on their own in

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their target export markets, there have been instances of tie-ups with the technology partners.
Bajaj Auto's tie-up with Kawasaki to jointly market Bajaj products in Philippines is a case in
point.These vehicles are being sent to Philippines in the completely built unit (CBU) form.
Other strategy of expanding international presence considered by few players is that of setting
up assembly lines in select South East Asian countries either on their own or in partnership.
Besides, plans of select overseas technology partners to source from their Indian
partners and plans of global majors to develop their Indian manufacturing unit as a sourcing
hub may also lead to increase in two-wheeler exports from India.
Companywise two-wheeler exports since FY2000 are presented in the following Table 4.
Table 4
Company-wise two-wheeler exports (FY2000-9MFY2005)
FY2000 FY2001 FY2002 FY2003 FY2004

CAGR

9MFY2005

(FY200004)
Bajaj
14924

16112

28527

53366

90210

56.8

87225

HHML

10061

10324

13023

21165

39254

40.5

43441

HMSI

1293

10916

31414

n.a

27734

TVS

7265

6621

7765

9636

28093

40.2

36666

Yamaha

15197

20446

20321

45546

32906

21.3

27539

Others

35790

57635

32752

39053

42792

4.6

33773

Total

83237

111138 103681 179682 264669

33.5

256378

Auto

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CHAPTER 3
BAJAJ MOTORVEHICLES
LIMITED-APROFILE

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Company profile

Bajaj Auto two wheelers Ltd:


Established in 1945, Bajaj Auto Ltd. was incorporated as a trading company. Till
1959, they imported scooters and three-wheelers from Italy and sold them in India. The
company got a production license in the year 1959 and fastened a technical collaboration with
Italian PIAGGIO in 1960.

Bajaj Auto Ltd. is one among India's top ten companies in terms of market
capitalization and among the top five in terms of annual turnover.

The company started producing scooters in the year 1961 and followed threewheelers production in 1962. Its collaboration with Piaggio expired in 1971 and since then,
their scooters and three-wheelers are being sold with the brand name BAJAJ.

Maharashtra Scooters Ltd., a Company with 24% equity participation by the


Company and 27% participation from Maharashtra State Government's Western Maharashtra
Development Corp. was formed in the year 1975 under the "Horizontal transfer of technology"
policy.

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The first production unit is located at Satara, Maharashtra. The unit continues to
collect scooters from CKDs supplied by the Company. These scooters are marketed through
the Company's distribution network and under the Company's brand name.

In 1984, the second production plant was set up at Aurangabad, Maharashtra. This
plant started scooter production in 1986, three-wheeler production in 1987 and scooterettes
and motorcycle facilities were commissioned in 1990 & 1991 respectively.

Today, the company has become a market leader with annual production in excess of
1.35 million units which was about 4000 units in 1961. These days, Bajaj Auto Ltd. has started
offering products in all segments (mopeds & scooterettes, scooters, motorcycles, three
wheelers).

Key Dates:
1945: Bajaj Auto is founded.
1960: Rahul Bajaj becomes the Indian licensee for Vespa scooters.
1977: Technical collaboration with Piaggio ends.
1984: Work begins on a second plant.
1998: Bajaj plans to build its third plant to meet demand.
2000: Thousands of workers are laid off to cut costs.

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Outlook:

Since 1986, there is a technical tie-up of Bajaj Auto Ltd. with Kawasaki Heavy
Industries of Japan to manufacture state-of-art range of latest two-wheelers in India. The JV
has already given the Indian market the KB series, 4S and 4S Champion, Boxer, the Caliber
series, and Wind125.

Kawasaki Heavy Industries is a Fortune 500 company with a turnover of USD 10


billion (Rs. 45,840 crore). It has crafted new technologies for more than hundred years. The
technologies of KHI have redefined space systems, aircrafts, jet engines, ships, locomotive,
energy plants, automation system, construction machinery, and of course high reliability twowheelers.

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

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Company Flashback:

'Inspiring Confidence,' the tagline, has build up confidence, through excitement


engineering, not only to domestic consumers but also internationally. Established just eight
decades back in 1926 by Jamnalal Bajaj, the company has been vested with India's largest
exporter of two and three wheelers, 196,710 units in 2004-05, a great 26 per cent jump over
the previous year.

Bajaj Auto Ltd. sales have increased by approximately 21 per cent in the year
2004-05, which exceeds Rs 65.4 billion, a record in the history of the company. The gross
operating profit stands at Rs. 9.3 billion, again a record. The profits after tax of the BAL are
close to Rs. 7.7 billion, and the pre-tax return on operating capital is at an impressive 80 per
cent.

The strength of the company is its quality products, excellence in engineering and
design, and its ability to delight the customers. The Pulsar, introduced in November 2004, is
continually dominating the premium segment of the motorcycle market, helping to maintain
the market superiority. Discover DTSi, one more successful bike on Indian roads, is in the
'value' segment of the motorcycle market. It incorporates a high degree of power with fuel
efficiency of a 100 cc motorcycle.

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Mission statement:
The draft auto plan aims to make the country a destination of choice for the design
and manufacture of automobiles and components.
The Draft Automotive Mission Plan 2006-2016, released by the Ministry of Heavy
Industries and Public Enterprises last week has a focussed mission statement of making the
country a "destination of choice" in Asia for the design and manufacture of automobiles and
components. In the process, the report sees the industry doubling its contribution to the Gross
Domestic Product to 10 per cent by 2016. Of course, incremental investment of $35-40 billion
will be necessary over the next 10 years to achieve this and most of it will have to be from
capacity expansion by existing players.

Vision statement:
Bajaj doesn't have a straight vision statement. They define it in terms of brand identity,
brand essence (derived from mission) and brand values.

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Our Brand Identity


Our Brand is the visual expression of our thoughts and actions.
It conveys to everyone our intention to constantly inspire confidence.
Our customers are the primary audience for our brand.
Indeed, our Brand Identity is shaped as much by their belief in Bajaj as it is by our own
vision.
Everything we do must always reinforce the distinctiveness and the power of our
brand.
We can do this by living our brand essence and by continuously seeking to enhance our
customers experience.

Our Brand Essence


Our Brand Essence is the soul of our brand.
Our brand essence encapsulates our mission at Bajaj.
It is the singular representation of our terms of endearment with our customers.
It provides the basis on which we grow profitably in the market.
Our Brand Essence is Excitement.

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Our Brand Values


We live our brand by its values of Learning, Innovation, Perfection, Speed and
Transparency. Bajaj will constantly inspire confidence through excitement engineering.

Learning
Learning is how we ensure proactivity.
It is a value that embraces knowledge as the platform for building well informed,
reasoned, and decisive actions.

Innovation
Innovation is how we create the future.
It is a value that provokes us to reach beyond the obvious in pursuit of that which
exceeds the ordinary.

Perfection
Perfection is how we set new standards.
It is a value that exhibits our determination to excel by endeavoring to establish new
benchmarks all the time.

Speed
Speed is how we convey clear conviction.
It is a value that keeps us sharply responsive, mirroring our commitment towards our
goals and processes.

Transparency
Transparency is how we characterize ourselves.

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Manufacturing Facilities:
Our Manufacturing facilities are located at Aurangabad, Pune and Baramati. All
plants are equipped with all manufacturing facilities and latest state of the art machinery and
equipments to meet customer requirements with quality products.

Product Design & Development facilities:


A complete setup for design and development using latest softwares
like UniGraphics-NX6, Solid Edge-ST, Fast Blank, Blank Nest, Team Center etc.

We are having Manufacturing & Development backup in following areas


Design Software
Heat Treatment Plant
Phospheting Plant
Surface Treatment Plant
Metrology Laboratory
Additional Tool Room Backup

Research & Development:

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Research & Development Bajaj Auto has a huge, extensive and very well-equipped
Research and Development wing geared to meet two critical organizational goals:
Development of exciting new products that anticipate and meet emerging customer needs in
India and abroad Development of eco-friendly automobile technologies The company has also
been investing heavily in the latest, sophisticated technologies to scale down product
development lifecycles and enhance testing capabilities. Bajaj Auto R&D also enjoys access to
the specialized expertise of leading international design and automobile engineering
companies working in specific areas.

Human Resource Concern:

Human Resource Concern The world's 4th largest two- and three-wheeler
company live their brand by its values of Innovation, Perfection, and Speed. They are
distinctly ahead through excitement engineering. Innovation is how they create the future. It is
a value that provokes them to reach beyond the obvious in pursuit of that which exceeds the
ordinary. Perfection is how they set new standards.It is a value that exhibits there
determination to excel by endeavouring to establish new benchmarks all the time. Speed is
how they convey clear conviction.It is a value that keeps them sharply responsive, mirroring
their commitment towards there goals and processes.

PRODUCTION & QUALITY CONTROL:

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PRODUCTION & QUALITY CONTROL CASTING & FORGING Crank


Case Misc. Alu. Casting Misc nuts & bolts Sheet plates Buffing & Heat treat. Machining
Machining Buffing Cutting to size El. Plating Pressing Minor ass. Engine testing Final
assembly painting Engine ass. Chassis forming Weld/buff chassis forming Wheel
assembly Dispatch for sale Ht. Trt. & Grd. Bought out comp. Quality test.
rs to control this.

Marketing Strategies:

Marketing Strategies Being the leading manufacturer of two & three wheelers
market BAL(Bajaj Auto Ltd.) has been providing the best of the class models at competitive
prices. Most of the Bajaj models come loaded with the latest features within the price band
acceptable by the market. They regularly update the low price bikes with the latest features
like disk-brakes, anti-skid technology and dual suspension, etc.

Marketing Strategies BAL adopted different marketing strategies for different


models, few of them are discussed below: - Kawasaki 4S - First attempt by bajaj to make a
mark in the motorcycle segment. The target customer was the father in the family but the
target audience of the commercial was the son in the family.

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The time at which Kawasaki 4S was launched Hero Honda was the market leader in
fuel-efficient bikes and Yamaha in the performance bikes. The commercial of Kawasaki 4S
had the punch line "Kyun Hero" means "now what hero" which reflected the aggressiveness in
the marketing front by the company. Caliber - The focus for the Caliber 115 was youth. And
though Bajaj made the bike look bigger and feel more powerful than its predecessor its
approach towards advertising is even more radically different this time around. The teaser
campaign and the emphasis on the Caliber 115 being a `Hoodibabaa' bike placed it as a trendy
motorcycle for the college-goers and the 25 plus executives both at the same time

Marketing Strategies Pulsar Discover Bajaj Auto's entire product portfolio, from the
entry-level to the premium, is being sold by the same dealers. The restructuring will involve
separate dealer networks catering to the urban and rural markets as well as its three-wheeler
and premium bikes segments. Bajaj Auto also plans to set-up an independent network of
dealers for the rural areas.

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Industrial relations:
Bharatiya Kamgar Sena, the recognised union at Waluj, Aurangabad, wasde-recognised
by Industrial Court on 24 April 2007. Managementthereafter signed the wage settlement on 23
July 2007 with Bajaj Auto.Limited Employees Union, the union having the majority
following, in conciliation and accordingly, the benefits of the settlement have been
given to all daily rated employees at Waluj.
Subsequently, with a view to downsizing the workforce at Waluj,Voluntary Retirement
Scheme was floated for the permanent daily ratedworkmen. 712 workmen availed of the
benefit under the scheme. The management discontinued its vehicle assembly facilities at its
Akurdi plant with effect from 3 September 2007 due to the higher costof manufacturing; as a
result of which over 2000 workmen becamesurplus. Negotiations are on with the newly
recognised union viz VishwaKalyan Kamgar Sanghatana to find a fair solution.
Relations with staff and workmen across the plants at Akurdi, Waluj

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BORD OF DIRECTORS:

Name

Designation

Rahul Bajaj
Rajiv Bajaj
D S Mehta
Shekhar Bajaj
J N Godrej
Suman Kirloskar
Nanoo Pamnani
P Murari

Chairman / Chair Person


Managing Director
Director
Director
Director
Director
Director
Director

Madhur Bajaj
Sanjiv Bajaj
Kantikumar R Podar
D J Balaji Rao
S H Khan
Naresh Chandra
Manish Kejriwal
Niraj Bajaj

Committees of the Board:

Vice Chairman
Executive Director
Director
Director
Director
Director
Director
Director

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Audit Committee:

S.H. Khan

Chairman

D.J. Balaji Rao

Director

J.N. Godrej

Director

Naresh Chandra

Director

Nanoo Pamnani

Director

Shareholders & Investors Grievance Committee:


D.J. Balaji Rao

Chairman

J.N. Godrej

Director

Naresh Chandra

Director

S.H. Khan

Director

Product brands:

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MOTORCYCLE
Bajaj Avenger
Bajaj CT 100
Bajaj Discover DTSi

180 CC
99.27 CC
135 CC

Bajaj Kawasaki Caliber

111.6 CC

Bajaj Kawasaki Boxer

111.6 CC

Bajaj KB 125

123 CC

Bajaj 4S Champion

99.35 CC

Bajaj Platina

99.27 CC

Bajaj Pulsar DTS-Fi 220 CC

220 CC

Bajaj Pulsar DTSi

Pulsar 180 DTS-i

UG 180 CC

Pulsar 150 DTS-i

UG 150 CC

Pulsar 200 Cc

Pulsar 220 DTS-Fi

200 CC
200 CC

Bajaj Wind 125

124.6 CC

Bajaj XCD

125 CC

Bajaj Discover DTS-Si 100cc

100 Cc

SCOOTERS

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Bajaj Bravo

145 CC

Bajaj Chetak

145.45 CC

Bajaj Classic SL

145.45 CC

Bajaj Legend

150 CC

SCOOTERETTES/MOPEDS
Bajaj Blade DTSi

100 CC

Bajaj Cagiva CRX

145 CC

Bajaj Fusion

145 CC

Bajaj Kristal DTSi

100 CC

Bajaj M 80 Electronic

74.08 CC

Bajaj Rave

74.08 CC

Bajaj Saffire

74.4 CC

Bajaj Spirit

100 CC

Bajaj Sunny

59.86 CC

Bajaj Sunny Spice

59.86 CC

Bajaj Wave DTSi

109.7 CC

Achievements:

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2009
April

Bajaj Pulsar 150 & 180 upgrade launched

January

Bajaj XCD 135 DTS-Si launche

2008
September

Bajaj Platina 125 DTS-Si launched

August

Bajaj XCD 125 DTS-Si is largest selling 125cc motorcycle

July

Bajaj Discover 135 DTS-i Upgrade Launched.

June

Bajaj Pulsar 220 bags IMOTY award

2007
December

RE GDi autorickshaw launched

September

Bajaj XCD 125 DTS-Si launched

August

DTS-Si engine launched

July

Revamping of Organisational structure

June

Bajaj Pulsar 220 DTS-Fi launched

April

New Bajaj Auto Plant at Pantnagar, Uttarakhand

February

200 cc Pulsar DTS-i launched

January

Bajaj Kristal DTS-i launched

2006
April
2005

Bajaj Platina launched

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December

Bajaj Discover launched

June

Bajaj Avenger DTS-i launched

February

Bajaj Wave DTS-i launched

2004
October

Bajaj Discover DTS-i launched

August

New Bajaj Chetek 4 stroke with Wonder Gear launched

May

Bajaj CT100 Launched

January

Bajaj unveils new brand identity, dons new symbol, logo brandline

2003
October

Bajaj Pulsar DTS-i is launched.

October

107,115 Motorcycles sold in a month.

July

Bajaj Wind 125, The World Bike, is launched in India.

February

Bajaj Auto launched its Caliber115 "Hoodibabaa!" in the executive


Motorcycle segment

2001
November

Bajaj Auto launches its latest offering in the premium bike.

January

The Eliminator is launched.

2000
June

The Bajaj Safire is introduced.

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1999
March

Caliber motorcycle notches up 100,000 sales in record time of 12


Months.

1998
November

Production commences at Chaka plant.

June

Kawasaki Bajaj Caliber rolls out of Waluj.

July

Legend, India's first four-stroke scooter rolls out of Akurdi.

October

Spirit launched.

1997

July

The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw are


Introduced.

1995

November29

Bajaj Auto is 50. Agreements signed with Kubota of Japan for the

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Development of diesel engines for three-wheelers and with Tokyo


R&D for unguarded Scooter and moped development. The Bajaj
Super Excel is introduced while Bajaj celebrates its ten millionth
Vehicle. One million vehicles were produced and sold in this
Financial year.
1994

The Bajaj Classic is introduced.

AWARDS&ACCOIADES:

2008-2007

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Product

Award

AWard Body

General

Best Two-wheeler Company

NDTV Profit Business


Leadership Awards

Pulsar

Ranked First in 'TOP 30


AUTOMOBILE BRANDS OF
INDIA'

4Ps Power Brand Awards

First prize for category


Productivity Thru Quality

IMTMA-SIEMENS

Bajaj Auto, Waluj


Productivity

Championship Award 2007


Mr. Rajiv Bajaj

Rashtrabhusan Award

Mr. Rahul Bajaj

Lakshya Business Visionary


Award

Bajaj Discover
135 DTS-i

Highest customer satisfaction


in Upper Executive Mc Segme

XCD 125 DTS-Si

Bike of the Year 2008

XCD 125 DTS-Si

Award for motorcyle upto


125cc - 2008

FIE (Fuel Instruments and


Engineering)
NITIE

TNS Voice of Customer


Award
CNBC-TV18 Autocar Auto
NDTV Profit Car India and
Bike India Awards

XCD 125 DTS-Si

Bike of the Year 2008

Business Standard Motoring

Pulsar 220 DTS-Fi

Bike of the Year 2008

Overdrive

Pulsar 220 DTS-Fi

Bike of the Year 2008

NDTV Profit Car India and


Bike

2007-2006
Product
Chakan Plant

Award
Super Platinum Award for

AWard Body

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Manufacturing Excellence

Frost and Sullivan

Chakan & Waluj


Plants
Audit Passed for TPM
Excellence Award Category I

TPM

General

Bikemaker of the Year

Overdrive Awards 07

Pulsar DTS-Fi

Bike of the year

CNBC-TV18 Autocar Auto


Awards

Platina 100cc

Bike of the Year


Bike Manufacturer of the year

NDTV Profit Bike India


NDTV Profit Bike India

2006-2005
Product

Award

Award Body

Mr. Rajiv Bajaj

Man of the year 2005

Autocar Professional

Mr. Rajiv Bajaj

Man of the year 2005

Bike India

Bajaj CT 100

Motorcycle Total Customer


Satisfaction Study 2005

TNS Automotive

Indigenous design of the


year 2005

OVERDRIVE

Bajaj Discover
DTS-i
Bajaj Discover
DTS-i

Bike of the year 2005

OVERDRIVE

2005-2004
Product

Award

Award Body

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Bajaj Pulsar DTSi


Bajaj Discover DTS-I
Bajaj Discover DTS-i

TNS Automotive Total Customer


Satisfaction in Premium Segment
Bike of the Year
Indigenous Design of the Year

NFO Automotive
OVERDRIVE
OVERDRIVE

2004-2003
Product
Bajaj Wind 125

Award
Bike of the Year 2004

Award Body
Business Standard Motoring

Bajaj Wind 12

Two Wheeler of the Year 2004

CNBC AUTOCAR
AUTO AWERD2004

Bajaj Pulsar DTS-I

Bike of the Year 2004

ICICI Bank OVERDRIVE


Award 2004

DTS-i Technology

Auto Tech of the Year 2004

ICICI Bank OVERDRIVE


Award 2004

Bajaj Auto

Bike Maker of the Year 2004

ICICI Bank OVERDRIVE


Awards 2004

General

The Most Customer Responsive


Company - Automobiles

2003-2002

Economic Times

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Product

Award

Award Body

Bajaj Pulsar

Bike of the Year 2003

ICICI Bank OVERDRIVE


Awerd 2003

Bajaj Pulsar

Motorcycle Total Customer


Satisfaction Study 2003

NFO Automotive

World Wheels Award for Best


Two Wheeler under Rs 30,000

BBC World Wheels

Bajaj Boxer
AT KTEC

BBC

2002-2001
Product
Bajaj Eliminaton
Bajaj Eliminator
Bajaj Pulsar
Bajaj Pulsar

Award

Award Body

Most Exciting Bike of


the Year 2001

OVERDRIVE

Bike of the Year 2002

OVERDRIVE

Most Exciting Bike of


the Year 2002
Bike of the Year 2002

OVERDRIVE
Business Standard Motoring

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CHAPTER 4
THEORETICAL FRAMEWORK

THEORITICAL FRAME WORK

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MARKETING COMMUNICATION MIX:

An marketing communication mix Program can be built on the foundation


provided by the communication model. Some marketing scholars argue that the marketing
communications approach is a recent phenomenon. Others suggest the name is new, but the
concept has been around for a long time. They not that the value of effectively coordinating all
marketing functions and promotional activities has been mentioned in marketing literature for
many years.
Although MC programs have been described in several ways, the consensus is
to define them as follow: MC is the coordination and integration of all marketing
communication tools, avenues, and source with in a company into a seamless program that
maximizes the impact on consumers and others and users at a minimal cost. This integration
affects all of a firms business to-business, marketing channel, customer-focused,and
internally directed communications. Before further examine the MC concept, first consider the
traditional frame work of marketing from which it originated.

The marketing mix is the starting point. Promotion is one of the four
components of the mix. For years the traditional view was the promotional activities include

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advertising, sales promotions and personal selling activities. Sales promotions actually
includes both sales trade promotions, with sales promotions aimed at end users or consumers
of goods and services, and trade promotions directed toward distributors and retailers. This
traditional view has changed some, due to the accountability issue that was discussed.
The need to integrated all promotional efforts has expanded beyond the three
traditional elements of advertising, sales promotion, and personal selling. Now, promotion also
includes activities such as database marketing, directmarketing, sponsorship marketing,
internet marketing, and public relations.

ADVERTISING AND THE MC PROCESS:

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Advertising is a major component of marketing communications. It is also part of the


traditional promotions mix of advertising, consumer and trade promotions, and personal
selling. These functions, along with other activities such as direct marketing and public
relations efforts, from the basis for communicating with individual consumers and business
customers.

Any paid form of non personal presentation and promotion of ideas, goods or
services by an identified sponsor. The role advertising plays varies by company, products, and
the marketing goals established by the firm. For some products and companies, advertising is
the central focus and the other components are designed to back the advertising campaign.
In both business-to-business and consumer promotions, the key to using the
advertising effectively, is see advertising as on the spokes in the wheel of the promotional
effort. The remaining spokes are the other components of the MC plan. MC includes clear
internal communication among department among with the messages send to external
customers and suppliers. Advertising can be used to build up a long term image for a product
or trigger quick sales. Advertising can efficiently reach geographically dispersed buyers.
Certain forms of advertising buyers. Certain forms of advertising can require a large budget:
where as other forms do not.
Just the presence of advertising might have an effect on sales: consumers might
believe that a heavily advertised. Brand must offer good value. Because of the many forms

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and uses of advertising it is difficult to make generalizations. Yet the following qualities can
be noted.
1. Pervasiveness

2. Amplified expressiveness

3. Impersonality

Pervasiveness:
Advertising permits the seller to a repeat a message many times. It also allows the
buyer to receive and compare the messages of various competitors. Large scale advertising
says something positive about the sellers size, power and success.

Amplified expressiveness:
Advertising provides opportunities for dramatizing the company and its products
through the artful use of print, sound and color.

Impersonality:
The audience does not feel obligated to pay attention or respond to advertising.
Advertising is a monologue in front of, not a dialogue with, the audience.

PERSONAL SELLING:

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A companys salespeople must follow the rules of fair competition, most states have
enacted deceptive sales acts that spell out what is not allowed. For ex, sales people may not
lie to consumers or mislead them about the advantages of buying a product.
To avoid bait-and-switch practices, sales peoples statements must match advertising
claims. Different rules apply to consumers who are called on at home verses those who go to
a store in search of a product. Much personal selling involves business to business trade.
In selling to businesses, sales people may not offer bribes to purchasing agents or to
others who can influence a sale. Personal selling is some times called the last 3 feet of the
marketing function, because 3 feet is the approximate distance between the sales person and
the customer on the retail sales floor as well as the distance across the desk from the sales rep
to a prospective business customer.
A bond or partnership between a sales representative and a client can be a valuable
asset. Personal selling takes place bin two major categories: ( 1 )retail sales and ( 2 )businessto-business selling.

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Personal selling is the most effective at stages of buying process, particularly in


building up buyer preference, conviction, and action.
Personal selling has three distinctive qualities.
1. Personal interaction
2. Cultivation
3. Response

Personal interaction:
Personal selling involves an immediate and interactive relation ship between two or
more persons. Each party is able to observe the others reactions.

Cultivation:
Personal selling permits all kinds of relationship to spring up ranging from a matter
of fact selling relationship to a deep personal friendship.

Response:
Personal selling makes the buyer feel under some obligation for having listened to the
sales talk.

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PUBLIC RELATIONS:

Building good relations with the companys various publics by obtaining favorable
publicity, building up a good corporate image, and handling or heading off unfavorable
rumors, stories, and events. Public relation departments may perform any or all of the
following function.
They are press relations, product publicity, public affairs, lobbying, and investor
relations. Many public relations activities are not considered typical marketing functionsThis
is because the marketing deportment concentrates on customers and the channel members en
route to those customers, such as wholesalers and retail out lets.
In contrast, the public relations department focuses on a variety of internal and external
stakeholders including employees, stockholders, public interest groups, the government,
society as a whole. One common goal of a public relations form is to get hits. A hit is the
mention of a companys name in a new story. Hits can be positive, negative, or even natural
in terms of their impact on a from.
The concept behind getting hits in the news is that the more a consumer sees the name of a
company in a news related context, the higher the brand or company awareness will
become.

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This may be true, but it is important to consider the type of image that is being
developed. It may be a wiser strategy to seek fewer hits and to make sure that those hits
project the companying a positive light that also reinforces the forms MC theme.
Marketers tend to under use public relations yet a well-thought-out program
coordinated with the other communication mix elements can be extremely effective.
The appeal of public relations and publicity is based on three distinctive qualities.
1. High credibility
2. Ability to catch buyers off guard
3. Dramatization

High credibility:
News stories and features are more authentic and credible to readers than ads.

Ability to catch buyers off guard:


Public relations can reach prospects that prefer to avoid salespeople and advertisements.

Dramatization:
Public relations have the potential for dramatizing a company or product.

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EVENTS AND EXPERIENCES:


There are many advertisining to events and experiences.

1. Relevant
2. Involving
3. Implicit

Relevant:
A well-chosen event or experience can be seen as highly relevant as the consumer gets
personally involved.

Involving:
Given their live, real time quality, consumer can find events and experiences more
actively engaging.

Implicit:
Events are more of an indirect soft-sell.

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SALES PROMOTION:
Short term incentives two encourage the purchase or sale of a product or service.
Sales promotion induces a wide variety of promotion tools designed to stimulate earlier or
stronger market response. Sales promotion tools are used by most organizations, including
manufacturers, distributors, retailers, and not-for profit institutions.
They are targeted toward final buyers, retailers and whole sellers, business customers,
and members of the sales force. In developing a sales promotion programs. A company must
first set sales promotion objectives. & then select the best tools for accomplishing these
objectives sales promotion objectives.
Vary widely. Sellers may use consumer promotions to short-term sales or to help build
long-term market share objectives. For trade promotions include getting retailers to carry
new items and more inventories.
Getting them to advertise the product. And give it more shelf space, and getting them
to buy ahead. In general, rather then creating only short-term sales or temporary brand
switching, sales promotions should help to reinforce the products position & build long-term
customer relationships.

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If properly designed, every sales promotion tool as the potential to build consumer
relationships. Companies use sales promotions tools-coupons, contests, premiums and the
like to draw a stronger and quicker buyer response. Sales promotion can be used for short run
affects such as to highlight product offers and boost sagging sales. Sales promotion tools
offer three distinctive benefits.
1. Communication
2. Incentive
3. Invitation

Communication:
They gain attention and may lead the consumer to the product.

Incentive:
They incorporate some concession, inducement, or contribution that gives value to
the consumer.

Invitation:
They include a distinct invitation to engage in the transaction now.

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DIRECTING MARKETING:
Direct communication with care fully targeted individual consumers-the use of
telephone, mail, fax,email,the internet, and other tools to communicate directly with specific
consumers. One program that is closely tied to database marketing is direct marketing.

METHODS OF DIRECT MARKETING


Direct marketing is vending products to customers without the use of other channel
members. According to the marketing association, about 60% of a typical direct-marketing
budget is used for new customers; the other 40 percent is used to retain current customers
Many companies use multiple forms of direct marketing to increase response rates and
sales. In every type of program ,a toll-free number and the companys website address are
frequently displayed so that consumers know how to contact the company for additional
information and also to place orders.

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The forms of direct marketing direct mail,tele marketing, internet markrting,share


three distinctive characteristics. Direct marketing is:
1. Customized
2. Up-to-date
3. Interactive

Customized:
The message can be prepared to appeal to the addressed individual.

Up-to-date:
A message can be prepared very quickly

Interactive:
The message can be changed depending on the persons response

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MARKETING COMMUNICATIONS PLAN:


Marketing communication plan should coordinate efforts in all components of the
marketing mix. The purpose of the marketing plan is to achieve harmony in relaying
messages to customers and other publics.
The same plan integrates all promotional efforts. Marketing communication is the last
piece of the marketing communication mix puzzle and, according to the American marketing
assoc ion requires that the all brand contacts received by a customer or prospect for a
product,service,or organization are relevant to that person and consistent over time. what
does this mean to you and me?
Well for once, it necessitates a coherent go-to-market strategy and message, one that
is reflected at every customer contact point. It also means that the various sales and
marketing tools, methodologies and approaches you use for creating customers and in sync
and reflect the total whole of your business. Just like the various organs of your body work
in sync, so should the various parts of your business-and in this case, your marketing
communication mix complement one another as well?

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The marketing communication page takes you through the basic fundamentals of
MC, as it is known, and shows you the thought process involved in aligning the various
components of our marketing communication mix for sales and marketing success
The following steps required to complete a marketing plan.
1. Situation analysis
2. Marketing objectives
3. Marketing budget
4. Marketing strategies
5. Marketing tactics
6. Evaluation of performance

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MCM COMPONENTS:
The foundation of an MCM program consists of a careful review of the companys
image the buyers to be served, and the markets in which the buyers are located.
Advertising programs are then built on this foundation, as are the other elements if the
promotional mix. Finally, the tools located at the peak of the pyramid help the companys
marketing team make certain that the elements of the plan are consistent and effective.
1. The foundation
2. Advertising tools
3. Promotional tools
4. Integration tools
The foundation consists of corporate image and brand management, buyer behaviors
and promotions opportunity analysis.
The advertising tools consist of advertising management, advertising design:
theoretical frameworks and types of appeals, advertising design: message starters and
execution frameworks and advertising media selection.

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The promotional tool consists of trade promotions, consumer promotions, personal


selling, database marketing, and customer relations management and public relations and
sponsorship programs. The integration tools consist of internet marketing, MC for small
business and entrepreneurial ventures and evaluating marketing programs.

MARKETING COMMUNICATION MIX STRATEGY:


Just like you cannot always predict the marketing in general, similarly you cannot
always predict which element t of the marketing communication mix will prove most
successful. You will change your marketing your marketing communication strategy as your
business grouts and evolves, always focusing on those areas that provide maximum return for
your effort.
As with every aspect of your overall marketing strategy, marketing communication
management requires careful planning, monitoring and adjustment to continual refine your
approach and achieve the best results. Good promotion captures the imagination and is
celebrated by sales and marketing professionals as will ads the general public (see the much
touted NFL super BOWL ads for example).

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Stories abound of super-successful advertising campaigns that stock the right cord
with the right message at the right time to create phenomenal results
Promotion has the power not only to create sales but have an effect on the social
consciousness as a whole. The marketing communication strategy page discusses the basics
of marketing communication planning to your best advantage as your business needs. The
real secret to marketing communication success lies in diligent research an understand of
human nature and your particular target audience.

THE VALUE OF MC PLANS

Several trends that are linked to the increasing importance of advertising marketing
communications programs. A major force compelling firms to seek greater advertising and
marketing communication is information technology.
Computers, the world wide web, and telecommunication have moved the world into an
information age where business and most consumers have to an abundance of marketing
information.

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The challenge for marketers in the future will not just be gathering information;
the challenge will also involve sifting through an avalanche of statistics,ideas,and massages
and putting them into a format that company leader can use. When this is accomplished,
business leaders can make intelligent, informed decisions about how to market products.

Factors affecting the value of MC programs:


1. Development of information technology
2. Change in channel power
3. Increase in competition
4. Maturing markets
5. Brand parity
6. Integration of information by consumers
7. Decline in effectiveness of mass-media advertising

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MESSAGE COTENT OF MCM:


The communication has to figure out an appeal or theme will procedure response.

1. Rational
2. Emotional
3. Moral
Rational appeals relate to the audiences self interest. Emotional appeals attempt to
stir up either negative or positive emotions that can motivate purchase. Communicators may
use positive emotional appeals such as love, pride, joy and humor.
Moral appeals are directed to the audiences sense of what is right and proper. Moral
appeal is the Salvation Army; while you are trying to figure out what to get the man who has
everything, dont forget the man who has nothing.

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MESSAGE STRUCTURE OF MCM:


The communicator must also decide how to handle three message structure issues.
The first one is where to draw a conclusion or leave it to the audience.
The second message structure issue is whether to present the strongest arguments first or last.
The third message structure issue is whether to present a one-sided argument or a two-sided
argument.

MESSAGE FORMAT OF MCM


The marketing communication also needs a strong format for the message. In a
print ad, the communicator has to decide on the headline, copy, illustration, and color. To
attract Attention, advertisers can use novelty and contrast; eye-catching pictures and
headlines; Distinctive formats massage is to be carried over the radio, the communicator has
to choose world, sound and voices.
The sound of an announcer promoting banking services should be different from
one promoting quality furniture. If the message is to be carried on television or in person,
then all these elements plus body language have to be planned. Presenters plan their
experession, gestures, dress, posture, and hairstyles.

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MANAGING THE MARKETING COMMUNICATION MIX PROCESS:


As defined by the American of advertising agencies, marketing communication is a
concept of marketing communications planning that recognizes the added value of a
comprehensive plan. Such a plan evaluates the strategic roles of a variety of communications
disciplines- for example, general advertising, direct response, sales promotion and public
relations- and combines these disciplines to provide clarity,consistency,and maximum impact
through the seamless of messages.
Unfortunately, many companies still rely on one or two communication tools.
These practice pessimists in spite of the fragmenting of mass markets in to a multitude of
minimarkets, each requiring its own approach; the proliferation of new types of media; and
the growing sophistication of consumers.
The wide range of communication tools, messages, and audiences makes it
imperative that companies move toward marketing communications. Companies must adopt
360-degree view of consumers to fully understand all the different ways that
communications can affect consumer behavior in their daily lives.
Although the second campaign was more expensive, it resulted in a 15% increase in
the number of new accounts compared with direct mail alone. Research has also shown that
promotions can be more effective when combined with advertising.

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The awareness and attitudes created by advertising campaigns can improve the
success of more direct sales pitches. Marketing insight: coordinating media to build brand
equity describes how to leverage television advertising in other media.
Many companies are coordinating their online and offline communications
activities. About a third of advertisers who bought television advertising for the 20022003season bought ad space on the stations web sites. Listing URL web addresses in ads and
on packages allows people to more fully explore a companys products, find store locations,
and get more product or service info.
Danton makes it a priority to drive traffic to its dennon yogurt homepage so that
the company can benefit from the twin paybacks of (1) forging direct relationships with
customers and (2) building a database of its best customers whose loyalty can be
strengthened with more targeted coupon and direct-mail promotional efforts. It has been
highly successful in linking its online and offline efforts. In 2001,it and another joined forces

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IMPLEMENTING MCM:
Marketing communication has been slow to take hold for several reasons. Large
companies often employ several communications specialists to work with their brand
managers who may know comparatively use a large number of ad agencies located
communications and image diffusion.
Today, however, a few large agencies have substantially improved their integrated
offerings. to facilitate one-stop shopping, major ad agencies have acquired promotion
agencies. Many international clients have opted to put a substantial portion of their
communications work trough one agency. An example is turning all of its advertising over to
Ogilvy to attain uniform branding. The result is integrated and more effective marketing
communications and a much lower total communication cost.
Marketing communications can produce stronger message consistency and greater
sales impact. It force management to think about every way the customer comes in contact
with the company, how the company communicates its positioning, the relative importance
of each vehicle, and timing issues.
It gives someone the responsibility-where none existed before-to unify the companys
brand images and messages as they come through thousands of company activities.MC
should improve the companys ability to reach the right customers with the right messages at
the right time and in the right place.

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CHAPTER5
ANALYSIS AND INTERPRETATION

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1.table showing aware of the BAJAJ motor cycles


NO.OF
%OF
S.NO
SOURES
RESPONDENTS
RESPONDENTS
1 avenger
4
4
discover
2 DTS-i
16
16
Kawasaki
3 caliber
0
0
Kawasaki
4 boxer
7
7
5 patina
11
11
pulsar
6 DTS-i
62
62

Graphical representation of data: 5.1

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120
97

no of respondents

100
80
60
40
20

0
yes

no
opinioun of customer

Interpretation:
The above chart represents that 97% of the customers aware of bajaj,3%cont know.
From this we can understand that the overall marketing communication of BAJAJ
motor cycles is strong in the customer point of view.

2. Table showing source of information about Bajaj motor cycles

S.NO
1
2
3
4
5

SOURCE
friends
neighbors
advertisements
publicity
others

NO OF
RESPONDENTS

% OF
RESPONDENTS
32
14
15
30
9

32
14
15
30
9

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32

no of respondents

35

30

30
25
20

15

14

15

10
5
ot
he
rs

pu
bl
ic
ity

ad
ve
tis
em
en
ts

s
ne
ig
hb
or

fri

en
ds

methods

Interpretation:
The about chart represents that 32% of the two wheeler owners know through friends,30%
publicity,15% advertising,14%others and 9% neighbors.
From this we can understand that most of the customer knows about BAJAJ through
friends.
Because of the word of mouth is more impact on the customers.

3. Table showing vehicle model owned by the customer

S.NO
1
2

SOURES
yes
no

NO OF
RESPONDENTS

% OF
RESPONDENTS
97
3

Graphical representation of data: 5.3

97
3

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70

62

no of respondents

60
50
40
30
16

20
10

0
avenger

11

discover
DTS-i

kawasaki
caliber

kawasaki
boxer

platina

pulsar
DTS-i

name of the bike

Interpretation:
The above chart represents that 62% of the two wheelers owners are own pulsar DTS-i,
16% discover DTS-I, 11% platina, 7% Kawasaki boxer, 4% avenger.
From this one can understand that pulsar DTS-i occupies the slot on customer
preference. Most customers feel they like pulsar DTS-i because of its looks, comfort and style.

4. Table showing what elements are more attractive in BAJAJ motor cycles

S.NO
1
2
3
4
5

SOURCE
brand
image
design
mileage
resale
value
price

NO OF
RESPONDENTS

% OF
RESPONDENTS
33
46
16

33
46
16

3
2

3
2

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no of respondents

Graphical representation of data: 5.4

50
45
40
35
30
25
20
15
10
5
0

46

33

16

brand image

design

mileage

resale valu

price

attractive elements

Interpretation:
The about chat represents the 46% of the two wheeler owners are attractive to the
Desion,33% brand image,16% mileage,3% resale valu,2% price.
From this one can understand that design occupies the top slot in customer preference.
Most of the customer gave importance to design.
5. Table showing customer feel at work shop reception

S.NO
1
2

SOURES
yes
no

NO.OF
RESPONDENTS

Graphical representation of data: 5.5

%OF
RESPONDENTS
98
2

98
2

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120

no of respondents

100

98

80
60
40
20
2
0
yes

no
opinion of the customer

Interpretation:
The above chart represents that 98% of the wheeler owners feel good,2% feels bead.
From this we can understand that the overall response at work shop to customer feels good.

6. Table showing customers opinion about pulsar motor cycle

S.NO
1
2

SOURES
yes
no

NO.OF
RESPONDENTS

Graphical representation of data: 5.6

%OF
RESPONDENTS
99
1

99
1

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120
99

no of respondents

100
80
60
40
20

1
0
yes

no
opinion of the customer

Interpretation:
The above chart represents that 99%of the customer recommend to their friends,1% dont
make.
From this we can understand that most of the customers feel good about pulsar motor
cycle.

7. table showing customers repurchases opinion about pulsar

S.NO
1
2

SOURES
yes
no

NO.OF
RESPONDENTS

Graphical representation of data: 5.7

%OF
RESPONDENTS
96
4

96
4

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120
96

no of respondents

100
80
60
40
20

0
yes

no
opinion of the customer

Interpretation:
The about chart represents that 96% of the customers feel good, 4% average.

From this we can understand that the overall product brand is good.

8. Table showing source of information about BAJAJ motor cycles

S.NO
1
2
3

SOURES
print media
electronic
media
friends

NO.OF
RESPONDENTS

%OF
RESPONDENTS
13

13

23
64

23
64

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Graphical representation of data: 5.8

70

64

no of respondents

60
50
40
30

23

20

13

10
0
print media

electronic media

friends

opinion of customer

Interpretation:
The about chart represents that 64% of the two wheeler owners know through friends,23%
electronic media,13%print media.

From this we can understand that most of the customers know about BAJAJ motor
cycles through friends because of the word of mouth is more impact on customers.

9. Table showing what elements are more attractive in BAJAJ pulsar


S.NO
1
2
3
4

SOURES
style
compatible
cost
safety

NO.OF
RESPONDENTS

%OF
RESPONDENTS
62
23
0
15

62
23
0
15

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Graphical representation of data: 5.9


70

no of respondentes

60
50
40
30
20
10
0
style

compatible

cost

safety

opinion of customer

Interpretation:
The about chart represents that 62% of the two wheeler owners attractive to the style
and 23% compactible, 15% safety.

From this one can understand that stale occupies the slot in customer preference.
Most of the customers look at style.

10. Table showing the different promotional methods influencing customers decision making
to buy a BAJAJ motor cycle
S.NO
1
2
3
4

SOURCE
advertisements
sales
promotion
personal
selling
publicity

NO OF
RESPONDENTS

% OF
RESPONDENTS
26

26

13

13

27
19

27
19

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direct
marketing

15

15

Graphical representation of data: 5.10

no of respondents

30

27

26

25

19

20

15

13

15
10
5

ar
ke
tin
g
di
re
ct
m

pu
bl
ici
ty

pe
rs
on
al
se
l li n
g

n
ot
io
pr
om
sa
le
s

ad
ve
t is
em
en
ts

promotional methods

Interpretation:
The above chart represents that 27% of the two wheeler owners impacted by the personal
Selling, 26% advertising, 19% publicity, 15% direct marketing, 13%sales promotion.
From this we can interrupt that personal selling is more on impact on customer
decision making process to buy BAJAJ motor cycles.

11. Table showing the customers opinion about the overall marketing communication of
BAJAJ motor cycles

S.NO
1
2
3
4

SOURCE
excellent
good
average
poor

NO OF
RESPONDENTS

% OF
RESPONDENTS
35
42
15
8

35
42
15
8

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42

45

no of respondents

40
35

35

30
25
20

15

15

10
5
0
excellent

good

average

poor

opinioun of the customers

Interpretation:
The above chart represents that 42% of the two wheeler owners feel good, 35%
excellent,15%average 8% to say poor.
From this we can understand that overall communication of BAJAJ motor cycles strong in
customer in the customer point of view.

12. Table showing whether customers have seen any ads related to BAJAJ motor cycles.
S.NO
1
2

SOURCE
yes
no

NO OF
RESPONDENTS

% OF
RESPONDENTS
71
29

71
29

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Graphical representation of data: 5.12

80

71

no of respondents

70
60
50
40

29

30
20
10
0
yes

no
opinion of the customer

Interpretation:
The above chart represents that 71% of the two wheeler owners have seen that ads
and 29% of the wheeler owners have not seen the ads.
So from this, most of the customers pay the attention to see the ads related to BAJAJ
motor cycles.

13. Table showing whether the customers think that the ads of BAJAJ motor cycles are trust
worth and ethical

S.NO
1
2

SOURCE
yes
no

NO OF
RESPONDENTS

% OF
RESPONDENTS
63
37

63
37

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Graphical representation of data: 5.13

70

63

no of respondents

60
50
37

40
30
20
10
0
yes

no
opinion of the customer

Interpretation:
The above chart represents that 63% of the two wheeler owners trust the ads and
37% dont trust the ads.
From this we can understand that most of the customers believe the BAJAJ motor
cycles because of their brand name.

14. Table showing customers opinion about the kiosk


S.NO
1
2

SOURCE
yes
no

NO OF
RESPONDENTS

% OF
RESPONDENTS
72
28

Graphical representation of data: 5.14

72
28

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80

72

no of respondents

70
60
50
40
28

30
20
10
0
yes

no
opinion of the customer

Interpretation:
The above chart represents that 72% of the two wheeler owners is known about kiosk, 28%
cant know.
From this we can understand that most of the customers attractive direct marketing.

15. Table showing the customers choice of medium to watch/read advertisements


S.NO
1
2
3
4
5

SOURCE
newspapers
magazines
TV
hoardings
any other

NO OF
RESPONDENTS

% OF
RESPONDENTS
52
2
42
1
3

52
2
42
1
3

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Graphical representation of data: 5.15

60

52

50

42

nofo respondents

40
30
20
10

hoardings

any other

0
new spapers

magazines

tv
types of medium

Interpretation:
The above chart represents that 52% of the customers like news papers, 42%tv,3%any
other,2%magazines and 1%hoardings.
From this we can understand that mist of the customers follow the up-to-date information.

CHAPTER 6

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FINDINGS
SUGGESTIONS
CONCLUSION

6.1 FINDINGS

1. BAJAJ motor vehicles enhance the scope for future sales is also high as word most of
the customers are highly satisfied with overall performance of Bajaj of mouth publicity
can benefit the firm.

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2. As per the customers perspective the spare parts of Bajaj vehicles are costliest enhance
its impact can be their on future sales during this recession period where customers
concentrate on long term maintenance of the motor vehicles.

3. The market demand for pulsar is more than other products of Bajaj motor vehicles.

4. Attractive advertisements of Bajaj are one of the factors that influence the customer
while considering different models for purchase.

5. The service personnel are not returning the replaced spare parts.

6. It was found that some of the customers are dissatisfied with the time taken to deliver
the service vehicles.

7. The service charges charged by the Bajaj motor vehicles.

6.2 SUGGESTIONS
1. The show room must focuses up on maintaining the schedule time given the customer
for servicing the vehicle.

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2. The service charges charged by Bajaj should be reduce.

3. The mechanical staff should handover the replaced parts to the customers.

4. The service personnel should listen to the problems of the customers while servicing
the vehicle.

5. The spare parts cost is presumed to be high, this may affect the long term relationship
with the customer; hence the company either has to reduce the price or open company
outlets for the spare parts.

6. From the survey it is found that pulsar sells at high speeds the company should adopt
the same strategy which it has adopted for passion so that other could also be sold
quickly.

6.3CONCLUSION
In this dynamic and dyadic environment the companies are concentrating more
on grabbing more prospective customers bi offering no.1 communication service for both

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after sales and before sales and this too in a two-wheel segment it is a tough to get a customer
but Bajaj being leader in two wheeler segment is able to get perspective customers.

Two wheeler industries are alluring customers by way of advertisements


conducting workshops, conducting mega events with customers and in this Bajaj stand no.1 by
having more perspective customers they can do indirect marketing for their products by way
word of mouth.

After completing my marketing communication mix project work at towards


Bajaj motor vehicles in Vishakhapatnam. I conclude that the Bajaj are having more
perspective customers because of its wide range of products,quality,brand,and availability of
spare parts, providing better before and after sales ands attracting advertisements and better
communication skill and the like. I also conclude that customers that the customers are well
satisfied with the dealer as well as the Bajaj company.

ANNEXCURE

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QUESTIONNAIRE
BIBLIOGRAPHY

QUESTIONNAIRE
CUSTOMER DETAILS
Name

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Age
Gender
Address & cont no

:
:
:

FEW THINGS ABOUT VEHICLES


Model
Year of purchase

:
:

1. Are you aware of BAJAJ bikes?


A) Yes
B) no
2. What made you aware of BAJAJ bikes?
A) Advertising B) friends
C) Hoardings
D) personal use D) Events
3. What is the model of vehicle you own?
A) Avenger B) Discover-I C) Kawasaki caliber
D) Kawasaki boxer E) platina
F) pulsarDTS-i
4. What elements are more attractive in bajaj motor cycles?
(Rank them in the order of preference)
A) Brand image
B) Design
C) Mileage
D) Resale value E) Price
5. Did you receive prompt response at workshop reception?
A) Yes
B) no
6. Would you recommend Bajaj pulsar (150-180) to your friends?
A) Yes
B) no
7. Would you repurchase the bajaj pulsar?
A) Yes
B) no

8. How did you know about the bajaj pulsar 150 and 180?
A) Print media
B) electronic media C) friends
9. Why did you prefer bajaj pulsar?
A) Style
B) compatible

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C) Cost

D) safety

10. Which promotional methods would show more impact on your Decision making to buy
a hero Honda motor cycle?
A) Advertising
B) sales promotion
C) Personal selling
D) publicity
E) direct marketing
11. how do you feel about the overall marketing communication of
Bajaj motor cycle?
A) Excellent
B) good
C) Average
D) poor
12. Have you seen any ads related to BAJAJ motor cycles?
A) Yes
B) no
13. Do you think the ads of BAJAJ motor cycles are true worthy and ethical?
A) Yes
B) no
14. Do you know about kiosk?
A) Yes
B) no
15. Which medium would you like to watch/read advertisements?
A) Newspapers
B) magazines
C) TV
D) hoardings
E) any other

BIBLIOGRAPHY
Table 7.2.1

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S.NO

Author

bool

Publisher

Volume

Year
2008
2008

Philip

Marketing

Pearson

No.
11

Kotler
Clow&

management
Intergatied

Ph1

baack

Marketing
communication

WEBLIOGRAPHY:

www.bajaj.com
www.varunvsp@satyam.net.in
www.auto.indiamart.com
www.moto.com