Bajaj Marketing Mix Project Report

8/13/2019 Bajaj Marketing Mix Project Report

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SWOT ANALYSIS

Strength:

It is a specialty good.

It is a high involvement product.

It is durable goods.

Well equipped and trained staff.

Easy availability of spare parts in the market

Weakness:

Regional office should be located in mid of Delhi.

No promotional activities by celebrities.

Opportunity:

Since it is the second leading competitor it has chance to grow.

High growth rate of the industry.

Encouragement of innovation theory.

Threat:

The main threat is from the leading competitor.

Entry of Foreign motors bikes in the market.

Threat of second hand motorcycles.


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OBJECTIVES

1. Comparing Bajaj Bikes share in market to Hero Honda & TVs SuzukiBikes.

2. To study overall advertising strategies of Hero Honda Company.

3. To study overall advertising strategies of Hero Honda

Company


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RESEARCH METHODOLOGY

Research in common parlance refers to a search for knowledge. The purpose

of research is to discover answers to questions though the application of

scientific procedures. In short research is art of scientific investigation.

Research methodology refers to the tools and methods used for obtaining

information for the purpose of the subject under study.

The methodology followed for the purpose of finding customers response was

Random sample survey.

DATA SOURCES

The data was collected from primary as well as secondary sources.

The primary data was collected through interviews with the managers and

trainee sales officer.

Secondary data was collected from articles in various magazines and

newspapers and web sites.

RESEARCH APPROACH

The approach adopted was a survey with the customers visiting the show

room.Companys servicing centre of Delhi and interview session with

management of the company.

RESEARCH INSTRUMENT

The research instrument used was a questionnaire.

SAMPLING PLAN

Sampling Unit:

1. It constituted of people in the age group of 20 and above.

2. Income group of 5,000 and above per month.

Sampling Procedure: The sampling procedure adopted was convenience

sampling because of the wide scope of the project


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LIMITATIONS

1. The primary data collected is restricted to only one company in New

Delhi.

2. The secondary data is limited to the articles in magazines, newspaper

and web sites.

3. The responses to the customer questionnaire may have been biased.

4. The responses to the industrial questionnaire may have been biased.

TWO- WHEELERS MARKET SHARE

24%

49%

14%13%

BAJAJ

HERO HONDA

TVS

OTHER'S


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MAJOR PLAYERS Market Share (in %age)

2006-07 2007-08

Bajaj Auto 27.09 24%

Hero Honda 51.51 50%

TVS Motors 12.91 14%

OTHERS 7.68 13%

Honda Motorcycle & Scooter India (HMSI) piped Bajaj Auto to take the

number two position in terms of market share and vehicles sold domestically

in November. This is the first time ever that Bajaj Auto has sunk to third place

in monthly two-wheeler sales. Bajaj Auto chairman and Rajya Sabha member

Rahul Bajaj had earlier this month asked in Parliament what steps were being

taken by the government for the auto sector as his company is not able to sellvehicles.

HMSI is a 100% subsidiary of Japans Honda Motor Company and entered

the country in 2000 to manufacture scooters. Its entry in the bike segment

took place only in 2004. According to Society of Indian Automobile

Manufacturers, Bajaj Auto, the countrys second-largest two-wheeler

manufacturer until October, registered a dip of 11.9% in sales in November at

82,919 units, compared with HMSIs 94,222 units. Consequently, HMSIs

market share went up from 10.5% in November last year to 16.6% last month,

while Bajajs market share fell from 26.5% to 14.6%. Bajaj Autos marketshare has also fallen 19.2% during April-November of the current fiscal

against 23.9% during the same period last year. In pole position remains Hero

Honda Motor India with 49.6% marketshare, and in fourth place is Chennai-

based TVS Motor Company with 13.7%.


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Marketing mix plans

SEGMENTATIONDemographic Segmentation

Income: Company survey indicates that the segments available for the

Bajaj motor bike are the people with monthly income of Rs. 10,000 and

above.

Age: The main segmented group for the motorcycle are 18 years and

above.

Occupation: All kinds of people are taken into account. Students,

professionals, Govt. Servants, etc.

Geographic Segmentation: The potential customers for the Bajaj motor

cycle are basically from every regions of India.

Psychographic segmentation: People purchasing Bajajs bikes are very

stylish, brand conscious.

Behavioural segmentation: This segmentation is done considering userstatus, benefit wise.


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TARGETING

The proposed targeting people in the age group of 18 years and above with a

monthly income of Rs. 10,000 and above, who are adventurous, enthusiasts

and socializing and who are either students or retired individuals or may be

employed as professionals, government servants or having their own

business, but mostly male.


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POSITIONING

The image that Bajaj creates in the mind of the customers is the faith. The

add shown by it says HAMARA BAJAJ. That means its a member of the

Indian family. It represents the Indian culture and society.


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PRODUCT

The product offers a service to the customers so as to satisfy their need. The

product provided the Bajaj suites the Indian Roads. And the IndianConsumers have a perception that the Bajaj provides genuine products.

The product is perfectly designed and the entire switch are well placed, which

provides a good riding condition.

The details of the various bikes provided by the Bajaj are as follows:

1. Pulsar- 220 DTS - Fi

2. Pulsar- 200 DTS - i

3. Pulsar-180 DTS - i

4. Pulsar-150 DTS - i

5. Avenger200 DTS - i

6. Discover135 DTSi

7. Discover125 DTS - i

8. XCD125 DTS - i

9. Platina100 DTS


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PULSAR 220 DTS- Fi


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PRICESPricing is an important component of marketing mix of firm. Determining the

prices of different products of a firm is a very difficult task of the marketingmanager. Price denotes money value of a product. It represents the amount

of money for which a product can be exchanged. In other words, prices

represents the money which the buyer pays to the seller for a product price

represents the exchange value of goods and services in terms of money.

Price is all around.

Price factor has very well been touched by the manufactures. The

manufactures (Bajaj) are charging very comparatively cheaper prices then

their competitors. The pricing strategy of the company is very set. They price

their product according to the cost of production and also by keeping an eyeon the price of the competitors of that segment & demand of the product in the

market.

The pricing strategies adopted by bajaj auto Ltd:

Competitive Pricing

The management of a firm decide to fix the price at the competitive

level. This method is adopted by bajaj auto because the bike market is highly

competitive.


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THE PRICE LISTS OF THE VARIOUS BAJAJ BIKES ARE AS

FOLLOWS:

PRICE LIST FOR PULSAR 220

As On June 2007-08

City On Road Price (Rs.)

Mumbai 97000

Chennai 91000

Kolkata 92500

New Delhi 87000


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As On June 2007-08


Mumbai 80,000/-

Chennai 75,000/-

Kolkata 77,500/-

New Delhi 72,000/-


As On June 2007-08


Mumbai 70,000/-

Chennai 70,000/-

Kolkata 68,500/-

New Delhi 62,000/-


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As On June 2007-08


Mumbai 68,000/-

Chennai 64,000/-

Kolkata 65,500/-

New Delhi 60,000/-

PRICE LIST FOR AVENGER 200

As On June 2007-08


Mumbai 77,000/-

Chennai 69,000/-

Kolkata 74,500/-

New Delhi 69,000/-


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PRICE LIST FOR DISCOVER 135

As On June 2007-08


Mumbai 59,000/-

Chennai 54,000/-

Kolkata 56,500/-

New Delhi 52,000/-

PRICE LIST FOR DISCOVER 125

As On June 2007-08


Mumbai 53,500/ -

Chennai 49,000/ -

Kolkata 52,500/ -

New Delhi 46,000/ -


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PRICE LIST FOR XCD 125

As On June 2007-08


Mumbai 50,000/-

Chennai 46,000/-

Kolkata 48,500/-

New Delhi 44,000/-

PRICE LIST FOR PLATINA

As On June 2007-08


Mumbai 35,200/-

Chennai 32,900/-

Kolkata 34,500/-

New Delhi 32,900/-


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PROMOTION

Promotion is an important part of marketing mix of a business enterprise. It is

spark plug of the marketing mix. Promotion is the process of communication

with the potential customer involving information, persuasion and influence. It

includes all types of personal or in personal communication with customers as

well as middleman in distribution. The purpose of promotion is to inform,

persuade and influence the prospective customers. Personal selling,

advertising, publicity and sales promotion are widely used to inform the

people about the availability of product and create among them the desire to

buy the products.

The words of E.L. Brink and W.T. Kelly promotion is the coordination of all

seller initiated affords to setup channels of information and persuasion to

facilitated the sale of a product or service or accepted of an idea.

The various promotional activities adopted by the Bajaj Auto Company.

The company has 100crore rupees for its promotional activities out of which

75% is sponsored by the company and 25% from the dealers.

They may sign a celebrity for its promotional activities in recent futures.

The company provides six free services to its customers in comparison to its

competitors.

The company provides good services facilities to its customers through

dealers service station.

Dealers encourage its customers by giving discount, providing 0% interest

loan schemes, prices, coupons etc.

The various promotional activities adopted by bajaj bikes are as follows

Credit & finance schemes

Free services to the consumers

Advertisements on Televisions, Newspapers, Magazines

Road Shows


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PLACE

There are about many regional offices located in major cities through outthe country.

There are more than 10,000 dealers through out the country.

For the product distribution the company distributes its products through

authorized dealers.

The variety products are easily available in showrooms.

REGISTERED OFFICE

Bajaj Auto Finance Ltdc/o Bajaj Auto Ltd

Akurdi, Pune - 411 035

Tel: 020-7472851 Fax: 020-7407393

email: [email protected]

NEW DELHI BRANCH

BAJAJ AUTO FINANCE LIMITED

C/o. Bajaj Auto Ltd.,

B-60/61, Naraina Industrial Area, Phase-II

NEW DELHI-110028
mailto:[email protected]:[email protected]


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RESULTS

Company:

Companies data shows that the company produces approximately

1,11,000 vehicles per month. Out of which they sales 60,000 motor cycles

per month.

The company has more demand of its product in western region.

The company has 21 regional offices throughout India out of which 10

contains training centres.

The main objective of these offices is to pay emphasis to human resource

development and provide good services to its customers.

Customer:

The results from customer survey are as follows:

1. Customers prefer because of their fuel efficiency.

2. Customers prefer because of their performance.

3. Customers prefer because they are value added product.

4. Customers also prefer because they are stylish.


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DATA ANALYSIS & INTERPRETATION

QUESTION1: What physical features made you prefer BAJAJ BIKES?

LOOKS 4

BODY BUILT 28

STYLE 8

ALL OF THEM 60

INTERPRETATION

The customers look for the over all looks or we can say that they all the

physical features while deciding to purchase PULSAR. Also they look

towards it as a sturdy body built bike.

LOOKS

BODY BUILD

STYLE

ALL OF THEM


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QUESTION2: What media affected your preference the most?

INTERPRETATION

The customer preference is mostly affected by television advertisements.

WORD OF MOUTH 33

TELEVISION 66

PRINT MEDIA 1

DEALER EFFORTS 0

WORD OF MOUTH

TELEVISION

PRINT MEDIA

DEALERS EFFORTS


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QUESTION 3: Did price affect your preference?

INTERPRETATION

74% of customers says that price affect their preference

YES 74

NO 26

YES

NO


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QUESTION 4: What mode of payment did you prefer?

INTERPRETATION

51% of customer prefers financing and 49% prefer cash payment.

CASH 49

FINANCE 51

CASH

FINANCE


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QUESTION 5: WILL YOU PREFER BAJAJ LAUNCHING A NEW RANGE

WHICH CAN SERVE THE PURPOSE OF SERVICE CLASS?

YES

NO

CANT SAY

YES 70%

NO 25%

CANT SAY 5%


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QUESTION 6:WHERE DOU YOU SEE BAJAJ BIKES ADVERTISMENT THE

MOST?

NEWSPAPER 10%

MAGZINE 30%

T.V 15%

HORDING 40%

ANY OTHER 5%

INTERPRETATION:

Mostly people get the information from hording, after hording magazine are

the source best source to get the information then television then Newspapers

and finally other sources.

10%

30%

15%

40%

5%NEWSPAPER 10%

MAGZINE30%

T.V15%

HOARDINGS40%

OTHERS 5%


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QUESTION 7: Which of the following Age group do you belong ?

INTERPRETATION:

The above graph shows the information about the different age groups. The

maximum numbers of persons are belonging from the age group of 35yrs to

50yrs, then above 50yrs after that between 20yrs to 35yrs and finally less than

20 yrs.

< 20 YRS

20 YRS TO 35 YRS

35 YRS TO 50 YRS

> 50 YRS


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QUESTION 8: What is your impression about the following on BAJAJ

products?

INTERPRETATION:

The above graph percentage of the consumers impression about the various

products of the BAJAJ.

Fully Satisfied

Partially Satisfied

Unsatisfied


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CONCLUSION

Our finding reveals that there is a great amount of market potential for

bikes in NCR of Delhi.

The findings also reveal that it is a competitive market, so the innovation

theory is always appreciable.

As it are speciality goods. So the customer needs time to study the

product as a whole in respect to its performance, efficiency etc. so the staff

should be well trained.

The company should encourage more dealers who would give more

emphasis in services of the product. It will be easy for the customers when

required.

Above all the image of the product is that it is a value added product and

it has value for money. It represents the Indian culture


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RECOMMENDATIONS

After the complete analysis of entire assignment we put forward aset of recommendations which are a follows:

1. Since the company has targeted the right segments, but the reason for the

low sales of BAJAJ is competition from HEO HONDA. BAJAJ should

regularly look to develop new products and new features among the

existing products to face the competition from HERO HONDA.

2. PULSAR 220 is high price and moreover the client has positioned the bike

as city ride made easy fuel efficient bike as a result of which if comes in

direct competition with HERO HONDAKARIZMA. So BAJAJ should also

concentrate on this segment as it has great potential.

3. In order to increase the market share, promotional activities should be

encouraged through advertisements to attract the male & female segment.

4. BAJAJ AUTO, if it starts functioning independently, has to innovate and

develop their own technology to support their growth aspirations.

16%

19%22%

43%

Production Chart of BAJAJ

97-98

98-99

99-00

00-01


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CUSTOMER SURVEY REPORT

20 & BELOW

20-30

30-40

40 & ABOVE


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Table below show the comparative growth rates in the two-wheeler sales

for SEPTEMBER 2008:

AUTO MOBILE SALES FIGURE

Company Name April- Sep.2006-07 April-Sep 2007-08

Yamaha Motors India 97039 142960

TVS Motor Co. 341663 337432

Royal Enfield Motors 9507 12062

LML Limited 18494 28062

Kinetic Engg. ltd. 22136 23651

Hero Honda Motor 819167 782354

Bajaj Auto Ltd. 419211 435164

Total 1727217 1761685


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BIBLIOGRAPHY

NEWS AND VIEWS FROM MARKETING DIVISION OF BAJAJ AME BUSINESS MAGAZINE.

AUTO MAGAZINE.

BUSINESS INDIA

FINANCIAL EXPRESS

BUSINESS LINE

OVER DRIVE MAGAZINE.

WWW. INDIAINFOLINE.COM

WWW. BAJAJ AUTO.COM

WWW.ECONOMICTIMES.COM


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Questionnaire

CONSUMER SURVEY

NAME :________________

Address: _____________________

QUESTION1: What physical features made you prefer BAJAJ BIKES?

A) LOOKS B) BODY BUILT

C) STYLE D) ALL OF THEM

QUESTION2: What media affected your preference the most?

A) WORD OF MOUTH B) TELEVISION

C) PRINT MEDIA D) DEALER EFFORTS

QUESTION 3: Did price affect your preference?

A) YES B) NO

QUESTION 4: What mode of payment did you prefer?

A) CASH B) FINANCE

QUESTION 5: WILL YOU PREFER BAJAJ LAUNCHING A NEW RANGE

WHICH CAN SERVE THE PURPOSE OF SERVICE CLASS?

A) YES B) NO

C) CANT SAY

QUESTION 6: WHERE DO YOU SEE BAJAJ BIKES ADVERTISMENT THE

MOST?

A) NEWSPAPER B) MAGZINE

C) T.V D) HORDING

E) ANY OTHER

QUESTION 7: What is your impression about the following on BAJAJ

products?

A) Fully Satisfied B) Partially Satisfied

C) Unsatisfied


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QUESTION 8: Which other bike would bike you have preferred to buy?

Yamaha LML

Tvs motors Bajaj

QUESTION 9: what is the image of BAJAJ in your mind?

Economical

Durable

Smooth Bike

Safe Bike

Rough and Tough


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CERTIFICATE

This is to certify that the project work done on Competency Mapping of

Bajaj Auto ltdis a bonafide work carried out by Mr.Sanjeev pippal under my

supervision and guidance. The project report is submitted towards the partialfulfillment of two year, full time Post Graduate Diploma in Management.

Name & Sign of FacultyMr.Rajeesh khare


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Declaration

I hereby declare that this project report entitled COMPITENCY MAPPING OF

BAJAJ AUTO is written and submitted by me under the kind guidance ofMr.RAJNEESH KHARE facultyof P.G.D.M department.

The finding and interbretation in the report are based on both primary and

secondary data collection. This project is not copied from any source or other

project submitted for similar purpose

SANJEEV PIPPAL

P.G.D.M4THSEM

ROLL NO1012201031

Bajaj Marketing Mix Project Report

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