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ACKNOWLEDGEMENTS
The team has cited references, used data from the IIM and
the INDEST Consortia Resources and the Internet. We have
acknowledged this either at the place of reference itself or at
the end of the report.
COMPANY HISTORY
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Bajaj Auto Finance Limited was incorporated on March
25, 1987 as Bajaj Auto Finance Private Limited got converted
into a public
His son, Kamalnayan Bajaj, then 27, took over the reins of
business in 1942. He too was close to Gandhiji and it was only
after Independence in 1947, that he was able to give his full
attention to the business. Kamalnayan Bajaj not only
consolidated the group, but also diversified into various
manufacturing activities.
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The present Chairman of the group, Rahul Bajaj, took charge
of the business in 1965. Under his leadership, the turnover of
the Bajaj Auto the flagship company has gone up from Rs.72
million to Rs.46.16 billion , its product portfolio has expanded
from one to and the brand has found a global market. He is one
of India's most distinguished business leaders and
internationally respected for his business acumen and
entrepreneurial spirit.
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Table of contents
1. Introduction………………………………………………6
1.1 Objective……………………………………………………………….7
1.2 Scope & limitation ………………………..…………………………..8
1.3 Methodology ………………………..…………...…………………….9
2. Industary analysis……………………...………………....10
2.1 Evaluation……………………………………………………………..11
2.2 Market share…………………………………………………………..12
3. Bajaj auto limited………….……………………..……….13
3.1 Introduction…………………………………………..………………..14
3.2 The leadership @ Bajaj .………………………………………………15
3.3 Motercycle segment- Market Position……………………..…………16
3.4 Opreation (R&D) ………………………………………………………17
4. List of Model………………………………………………19
4.1 New Models lunches (2007-09)……………………….……………….24
5. Key Policies…………………...………....………………..27
6. SWOT Analysis ……………………………..…………...29
7. Competitor Analysis …..……………..………………….30
7.1 Hero Honda Motor LTD……………………………………………...30
7.2 TVS Motor LTD………………………………………………………33
7.3 Kinetic………………………………………………………………….37
7.4 Yamaha Motor India (YMI)…………………………………………..41
8. Questionnaire……………………………..………………43
9. Chairman’s Latter ……………………………………….48
9. Reference…………………………...……………………..52
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1 INTRODUCTION
The entry level segment off late has been one of the fastest
growing segments in the Indian Motorcycle market. The main USP of
this category being “more mileage for low cost”, these bikes have
taken the market by storm. They have tickled the mind of the Indian
Consumer who has always known to be price conscious, but with a
penchant for quality. Bajaj, as a brand has strived for excellence and
basked in caring for customer care and safety. It is this lineament that
has struck a chord with the prospective buyer and has helped Bajaj
reap rich dividends.
The latest entrant into the family of entry level bikes, the Bajaj
CT100 has clocked sales of 64,498 in August’04 alone taking the total
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sales to 1.86 lakh units since its launch taking Bajaj’s share in the
entry level segment to 52%. The entry level segment market is now a
big swim-off between two top performers in the Indian market, Bajaj
and Hero Honda. The reason why the fight for the footprint in the big
volume, low margin segment has turned so exciting is the price
aggression on both ends.
0.1 Objective
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To learn the practical implications of the Marketing Management
course taught in class and to get a feeler of the real world of
Marketing.
This study offers only a detailed study on the Bajaj Bike and its
variants .The report does an abbreviated study of the Indian
Motorcycle Market. Bajaj Auto as an organization, its market share and
performance is explained here only in terms of the Motorcycle market.
The scooter, autorikshaw, step-thrus and scooterette divisions of the
company are only cited and not explained in detail. The report also
does not explain the buying behaviour of any of the competitors of
Bajaj Auto in the entry level segment.
The project does not delve into the mechanical and technical
details of Bajaj bike .The project is defined in terms of only the
customer buying patterns of Baja bike, the ordering process and
supply chain logistics of the dealers.
The project is a short term project whose sole purpose is to
acquaint the team with the basic aspects of Marketing Research and
Customer Survey. A disclaimer is that this project is meant primarily
as a part of academia to learn direct practical applications of what the
curriculum teaches us. So by no means should this analysis be taken
at face value for real time situations. This is the biggest limitation
which is not to be attributed to the team, but something which is not
expected out of this project in and of itself.
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1.3 Methodology
Methodology is all about how the team went about the project.
The motorbike industry in India of late has been very vibrant,
especially in the Entry level segment where selling by volumes is a key
differentiator. The project needed both qualitative and quantitative
analysis of data and information. I am made best use of the Internet
and the resources available at the IIM and INDEST Consortia. These
databases are our main source of graphs and illustrations. Also needed
was the information from first hand resources like intermediaries and
customers. I put forth all the psychographic, socio-economic and
consumer attribute based positioning questions in the survey and has
tried to get a pulse of the consumer perception and satisfaction level
of the Entry level bikes.
2 INDUSTRY ANALYSIS
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nearly 43 per cent. Along with these two, the United States,
Indonesia, Thailand, Japan, Taiwan and Italy form the key two
wheeler markets in the world, accounting for almost 93 per cent
of the total demand in 2002-03.
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2.1 Evolution
The motorcycle market in India has evolved over the years from
the Royal Enfields of British parentage which were extremely popular
in the 1950s and 1960s to the current breed of highly specialized
Indian motorcycles.The evolution of the motorcycle market in India is
discussed in the following chart
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2.2 MARKET SHARE
12
This surge in growth of the two-wheeler industry has primarily been
attributed to the poor public transport system in India. Another reason
that is being given is the targeting of most marketing and sales efforts
to the youth segment.The motorcycle,which earlier stood for a
secondary mode of transportation for a person who could not afford to
buy a car, is now being projected as a symbol of freedom, convenience
and excitement. In fact, most of the models being launched today
have been christened with names projecting the symbols. Hero Honda
“Joy”, Hero Honda “Ambition”, LML “Freedom”, TVS “Victor”, Yamaha
“Enticer”, Bajaj “Wind” are only some of the many models which have
been launched with an intent of projecting these symbols.
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3.1 Introduction
In the last five years, the theme of Bajaj has been the process of
“change” — of the ways in which Bajaj Auto has been transforming
itself to successfully meet the greater competitive challenges of the
future. It is evident and forced upon by this year's Management
Discussion and Analysis, which speaks of how the company has
leveraged a successful change-process to create products and a brand
that inspires confidence.
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Bajaj Auto is the second largest player in the domestic two-wheeler
industry. Its overall two wheeler market share in April-September
2003 fell marginally, due to its deteriorating share in the scooter
market.
Board of Directors
D S Mehta
Kantikumar R Podar
Shekhar Bajaj
D J Balaji Rao
Ms Suman Kirloskar
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Naresh Chandra
Niraj Bajaj
2. Management
3. company secretary
J Sridhar
4. Auditors
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5. cost Auditor
6. Bankers
Bank of America
ICICI Bank
HDFC Bank
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of motorcycles in India. The table below shows, how Bajaj Auto has
succeeded in this endeavour. Between 2003-04 and 2007-08 they
have increased their share in an explosively growing and highly
discerning market from under 23 per cent to over 32 per cent. From
being an insignificant player in the early 1990s, Bajaj Auto today is the
clear number two in motorcycles in India.
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2. the 125 cc segment: Bajaj Auto is in this category with the up
graded Discover Dts-i 135 and, more significantly, the XcD 125 Dts-si,
which was launched in September 2007.
During 2007-08, Bajaj Auto’s R&D was primarily involved with the
work on the next wave of products to be launched in 2008-09. two
important products which demonstrated the company’s technological
prowess were also launched during the year — the XcD 25 Dts-si and
thethree-wheeler Direct Injected auto rickshaw .XcD 25 Dts-si the XcD
25 Dts-si has been touched upon earlier. the platform is strategically
important, as it uses technological differentiation to increase the
penetration of Bajaj Auto’s motorcycles in the large 25 cc segment
.the XcD 25 Dts-si is the result of the cumulative experience of many
years of engine and vehicle development in Bajaj Auto.
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4. List of models
Bajaj Bikes and Scooters (Pulsar, Discover ...)
Bajaj bikes cover the market with Bajaj Motor Cycles, and Bajaj
Scooters. Around nine Bajaj bikes address the market across these
two categories motorbikes, and scooters. All Bajaj two wheelers run on
petrol and have a decent mileage. Bajaj bikes include
• Bajaj Platina
• Bajaj XCD
• Bajaj Discover
• Bajaj Pulsar
• Bajaj Avenger
• Bajaj Kristal
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Bajaj Motor Bikes
BajajPlatina
Platina(99.27cc)
Bajaj Platina is a leader in mileage & looks in the 100 cc class. The
Bajaj Platina is resplendent in Platinum silver colour and shiny chrome
graphics enhanced by a contrasting matt black silencer and graphite-
tinted engine. At the showroom, this bike costs around Rs. 30,000 with
an on-road price of around Rs. 35,500 at Ahmedabad. This includes
standard ancillary charges also. Currently, Delhi has the lowest, and
Mumbai the highest on-road prices for Bajaj Platina. Bajaj Platina bike
prices vary upon the two-wheeler dealer's location.
BajajXCD
XCD(125cc)
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The Bajaj XCD DTS-Si 125 cc is easy to control, easy on the pocket,
and a good choice for a 125 cc motorbike. The alloy wheel rims add
flamboyance to the strong diamond frame body. The folding number
plate is a cool idea and the electric start without a kick works like a
charm. At the showroom, this bike costs around Rs. 41,000 with an
on-road price of around Rs. 46,000 at Ahmedabad. This includes
standard ancillary charges also. Currently, Delhi has the lowest, and
Mumbai the highest on-road prices for Bajaj XCD. Bajaj XCD bike
prices vary upon the two-wheeler dealer's location.
BajajDiscover
The Bajaj Discover has two vari ants with 110 cc and 135cc engine.
Bajaj Discover targets the middle class two wheeler consumers with
Bajaj bike prices ranging from Rs. 46,000 to Rs. 55,000. Bajaj
Discover variants include Bajaj Discover 135 cc lies in between the 125
cc and 150 cc segments with an engine displacement of 134.21 cc.
The Bajaj Discover 135 cc is easy to control, easy on the pocket, and a
good choice between a 125 cc and 150 cc motorbike. At the
showroom, this motorbike costs around Rs. 49,000 and an on-road
price of around Rs. 56,000 at Ahmedabad. This includes standard
ancillary charges also. Currently, Delhi has the lowest, and Mumbai the
highest on-road prices for Bajaj Discover DTS-I 135 cc. Bajaj Discover
DTS-I 135 cc bike prices vary upon the two-wheeler dealer's location.
Bajaj Pulsar
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Pulsar 150 cc DTS-i
Bajaj Motor Bikes An extremely popular bike on the Indian roads,the Bajaj
Pulsar currently offers four varieties the Bajaj Pulsar 150 cc,the Bajaj Pulsar
180 cc,the Bajaj Pulsar 200 cc,and the Bajaj Pulsar 220cc. Bajaj Pulsar bikes
range in on road prices from around Rs. 62,500 to Rs. 90,500.
Pulsar180ccDTS-i
Pulsar180ccDTS-i
Bajaj Pulsar 180 cc DTS-I is a cool, mean machine using Digital Twin
Technology Ignition (DTSI-i), Twin Spark Plugs, Ignition with Digital
CDI and a third generation Throttle Responsive Ignition Control
System. This bike is now available at a showroom price of around Rs.
59,300 with an on road price of around Rs. 67,000 at Ahmedabad
including supplementary statutory charges. Currently, Delhi has the
lowest, and Bangalore the highest on-road prices for Bajaj Pulsar 150
cc. Bajaj Pulsar 180 cc bike prices vary upon the two-
wheelerdealer'slocation.
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Pulsar200ccDTS-i
Pulsar200ccDTS-i
Bajaj Pulsar 200cc DTS-i has a dash of style, speed and technology.
Having an international sports bike look, Bajaj Pulsar DTS-I has a split
seat and several parameter indicators (oil/fuel/temperature etc), Nitro
shockers, a third generation Throttle Responsive Ignition Control
System and chiseled rear looks. The Pulsar 200cc DTS-i is mean
machine to ideally take on a long winding road. New bikes in this
series have a showroom price ranging from around Rs. 68,000 to Rs.
74,500, which inclusive of all charges like insurance, octroi, RTO, etc.
Currently, Delhi has the lowest, and Bangalore the highest on-road
prices for Bajaj Pulsar 150 cc. Bajaj Pulsar 180 cc bike prices vary
upon the two-wheeler dealer's location.
Pulsar 220ccDTS-Fi
Pulsar220ccDTS-Fi
Bajaj Pulsar 220cc DTS-Fi offers riding comforts and power that with
elegant styling, design and technology. Bajaj Pulsar 220cc DTS-Fi has
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front/back disk brakes, tubeless tyres, fuel injection/oil cooled engine,
NitroX shockers and other unique features that qualify the bike as
smart & macho. At the showroom, this bike costs around Rs. 83,500
and an on-road price of around Rs. 90,500 at Ahmedabad. This
includes standard ancillary charges also. Currently, Delhi has the
lowest, and Mumbai the highest on-road prices for Bajaj Pulsar 220cc.
Bajaj Pulsar 220cc bike prices vary upon the two-wheeler dealer's
location.
Pulsar300ccDTS-i
Pulsar350ccDTS-i
BajajAvenger
Avenger(DTSi)
Bajaj Avenger (DTSi) offers the ultimate cruiser experience. Offering
high stability and long cruising delights, Bajaj Avenger (DTSi)
possesses wider saddle seat, special backrest besides 180cc powerful
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engine. It is targeted at the upper middle-class bike lovers. The
Avenger now has a single variant, the Bajaj Avenger priced at around
Rs. 70,000. This bike has a showroom price of around Rs. 64,900 and
on-road price of around Rs. 71,500, at Ahmedabad, which is inclusive
of all charges such as insurance, octroi, RTO, etc. Currently, Delhi has
the lowest, and Mumbai the highest on-road prices for Bajaj Avenger.
Bajaj Avenger bike prices vary upon the two-wheeler dealer's location.
Bajaj Scooter
BajajKristal
KristalDTSi(95cc)
The Bajaj Scooterette model Bajaj Kristal DTSi comes with Digital Twin
Spark Ignition (DTS-i) technology and ExhausTEC technology. Bajaj
Kristal DTS-i is targeted at college going girls who want good speed,
comfort and fuel economy, helping them save their pocket money. At
the showroom, this bike costs around Rs. 35,200 with an on-road price
of around Rs. 40,000 at Ahmedabad. This includes standard ancillary
charges also. Currently, Delhi has the lowest, and Bangalore the
highest on-road prices for Bajaj Kristal DTSi. Bajaj Kristal DTSi scooter
prices vary upon the two-wheeler dealer's location.
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New lunches (2007-09)
• Avenger
• Boxer
• CT 100
• Discover
• Eliminator
• Legend
• Pulsar
• Pulsar 220-Fi
• Pulsar 220-i
• Pulser 300DTS-i
• Pulsar 350DTS-i
• Platina
• Wind
• XCD
• Kristal
• Chetak
• Saffire
• Sunny
• Wave
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5. Key policies
28
6. SWOT ANALYSIS OF BAJAJ
29
Strengths
A well-established Brand
Known to be a cost-effective producer.
Has a wide distribution network
Market leader in most segments it has entered like three-
wheelers, step-throughs, scooters, entry-level and performance
bikes.
Weaknesses
Opportunities
Threats
30
7. COMPETITOR ANALYSIS
31
SALES PERFORMANCE
HERO HONDA REPORTS LEADERSHIP PERFORMANCE
WITH 50 % NET PROFIT IN Q2, '08-09
DEFIES INDUSTRY TREND WITH TURNOVER (NET SALES
& OTHER OPERATING INCOME), AT RS. 3202 CRORE;
EBIDTA AT 13.58 PER CENT
Aug'06 Aug'07 FY 06-07 FY 07-08
Total
2,15,076 2,40,875 12,82,860 12,63,254
Sales
Market position
Hero Honda’s market position could fall unless the decline in the
high volume executive segment is arrested with new product
launches. The company has already launched a variant of its
Passion and Splendor (Passion plus and Splendor plus in September
and October 2003) in this segment and they are doing considerably
well. Riding on the success of these models Hero Honda has
registered a 35 per cent growth in sales in comparison to the year
2003.
32
4P Analysis of Hero Honda CD Dawn
Product
Price
Place
Promotion
33
7.2 TVS MOTOR COMPANY
34
Market position
35
4P Analysis of TVS Max 100
Product
The Max 100 was engineered for those who demanded strength and
ruggedness. It was built to perform to its maximum limits, built to
last for generations, built to be an inseparable family member and
built to stop anything unnecessary flowing out of the hole in your
pocket. The 98.2 cc two stroke engine delivers 7.8 bhp of power
(more than sufficient for the city). It is not really designed for top
speeds but can hammer out a good 80 -95 km per hour.(60 in city
conditions). It is almost maintenance free. Spare parts are very
cheap and easily available. It is not the best when it comes to style
and comfort but an excellent bike without a doubt designed to keep
it simple and good. It has proven itself well over a decade. However
keeping with the changing TVS Motor Company has plans to replace
two-stroke motorcycle Max with a four-stroke entry-level
motorcycle within six months to arrest the erosion in sales.
Price
Place
36
With a strong sales and service network of 500 Authorized
Dealerships, 1018 Authorized Service Centers and over 864
Certified Service Points, TVS is growing from strength to strength.
The low cost of spares and servicing is an added advantage
especially in South India.
Promotions
37
7.3 Kinetic
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enjoys "Export House" status and has won the Exports
Excellence award seven consecutive years.
Market position
39
4P Analysis of Kinetic Boss
Product
Price
Place
Kinetic has adopted a Direct Sales Model with about 500 Sales
officers, 60 supervisors in 14 important states. These officers
directly approach customer at home or office. Apart from this they
have strong dealer networks in all states in India (about 400
dealers) and authorized service centers. In Kerela they have
dealers in 14 cities/towns. In Calicut there are 2 dealers.
The company currently exports Kinetic Boss to Sri Lanka. The
company has also received orders for Boss from other countries in
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South Asia and Latin America, and will begin dispatches in the next
few weeks. The company targets over 5000 units of Boss for
exports in the first year itself.
Promotion
The Blue bug - blue is the colour of the Indian cricket team - seems
to have bitten the Pune-based Kinetic Engineering Ltd too: the
company launched a limited (5000), blue-coloured, Kapil Dev-
signed edition of its volume-driver brand Boss. The company plans
to promote its entire portfolio of motorcycles under the sub-brand
’Kinetic Biking’. It also plans to sell accessories such as branded
helmets, and undertake various CRM initiatives under the sub-
brand.
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7.4 Yamaha Motor India (YMI) Ltd.
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MARKET POSITION
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8. Questionnaire
Dear Respondent,
This survey will help us understand consumer behaviour for motorcycles. Please
note that there is no right or wrong answers to this questionnaire. It will only take 10
minutes of your time.
-----------------------------------------
3) If the answer to Question2 is YES, which brands do you think are on offer in the
entry-level segment?
A) -------------------------------------------------
B) -------------------------------------------------
C) -------------------------------------------------
-------------------------------------------------
5) Which are the sources of information that made you opt for this bike?
Please rate the importance on the given scale.
6) What is the primary purpose behind buying this bike? (Please select only one
option)
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< 10 kms 10 – 20 kms 20 – 30 kms > 30 kms
--------------------------------------------------------------------------------------------------
-
--------------------------------------------------------------------------------------------------
-
9) Are you satisfied with your current bike? Rate the satisfaction on a scale of 5.
1 2 3 4 5
Least Very
Satisfied Satisfied
10) Given a chance to change the bike, which one would you opt for?
----------------------------------------------------
11) If you want to change your bike, how long do you take to do so?
12) What are the attributes that made you opt for this bike?
1 2 3 4 5
Least Very
Important Important
Attribute Importance
Cost
Mileage
Style
Comfort
Power
Maintenance
Service
Brand Image
Offers
Finance Availability
Cost of Spares
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13) Age Group
SINGLE MARRIED
1 2 3 4 5
Strongly Strongly
Disagree Agree
1 2 3 4 5
Strongly Strongly
Disagree Agree
1 2 3 4 5
Strongly Strongly
Disagree Agree
20) I must admit that my interests are somewhat narrow and limited.
1 2 3 4 5
Strongly Strongly
Disagree Agree
21) I like my life to be pretty much the same from week to week.
1 2 3 4 5
Strongly Strongly
46
Disagree Agree
1 2 3 4 5
Strongly Strongly
Disagree Agree
23) I buy a product more for a necessity than for social status.
1 2 3 4 5
Strongly Strongly
Disagree Agree
1 2 3 4 5
Strongly Strongly
Disagree Agree
1 2 3 4 5
Strongly Strongly
Disagree Agree
1 2 3 4 5
Strongly Strongly
Disagree Agree
27) Please rate the following brands on the given attributes using the scale below
1 2 3 4 5
Very Bad Very Good
47
Maintenance
Service
Brand
Name/Image
Offers
Finance
Availability
Cost of
Spares
Dealer
location
48
9.Chairman’s Letter
49
Three years later, the management team and I feel vindicated.
Your company has resolutely engaged in a process of fundamental
change. This has involved changes in the organisational structure; in
products and models; in the approach to markets and consumer
preferences; in R&D, engineering, product design and speed to
market; in rationalising of costs; and in a complete overhaul of the
way in which we do business.
That doesn't mean that your Chairman is ready to take vanavas. Far
from it, I will continue to be involved in wider strategic issues and be a
sounding board for ideas. However, the day-to-day working and the
quarter-on-quarter planning of Bajaj Auto will be left to younger heads
and hands.
2008-09 has been a good year, : Bajaj Auto Ltd, India’s second-
biggest motorcycle maker, said on Monday it would a launch new
model a month from January for six months to revive sales that fell
37% in November.
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High interest rates and sluggish consumer spending have dented
demand for automobiles in India, including for motorcycles and
scooters that Bajaj Auto produces and analysts said the costs of new
launches could squeeze the company’s profit margins.
To beat the slowdown, group firm Bajaj Auto Finance Ltd is offering a
retail finance scheme to buy Bajaj’s vehicles at an interest rate of just
under 8%, Bajaj Auto Ltd said in a statement.
This is expected “to revive sales in the short term,” it said.
Bajaj said motorcycle and scooter sales dropped 37% in November to
132,421 units from a year earlier. All vehicles, including three-wheeled
motorised rickshaws that rose 13%, were down 32% at 159,747 units.
The dwindling sales are expected to continue in December as dealers
also cut back purchases to avoid piling up inventories, the company
said.
Bajaj said it would launch a new motorcycle every month from January
to attract buyers.
“Spending on new products will put pressure on margins,” said
Prayesh Jain, research analyst with India Infoline.
The products would do well only if they were different from its existing
motorcycles and targeted at a new category, he added.
Bajaj’s motorcycles, with engine capacities of more than 125cc, cater
largely to the urban segment that has been severely hit by the credit
crunch and rise in interest rates, he said.
“We are not bullish on the company,” he said.
The country’s top motorbike maker, Hero Honda Motors Ltd, posted a
0.5% rise in November sales, while third-largest TVS Motor Co’s sales
fell 12.7%.
Shares in Bajaj Auto, with a market value of $951.7 million, closed
down 4.3% at Rs306.95. The stock has shed 49% since its re-listing in
51
May this year, compared with the main BSE index that has lost 47% in
the same period.
But the future looks even better. I expect the company to overcome
challenges and achieve still better performance across all product
categories. The new corporate identity promises to inspire confidence.
We at Bajaj Auto must leverage this confidence by delivering superior
performance year on year, without fail.
Rahul Bajaj
Chairman and Managing Director
52
10. REFERENCES
2. Agency Faqs!
http://www.agencyfaqs.com
CRIS INFAC
SIAM
PROWESS
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