BUSINESS PLAN

PROJECT REPORT ON 222 cc BIKE

Presented by: S.Shiva Kumar

EXECUTIVE SUMMARY

Chosen the two – wheeler industry.

Plan to manufacture and sell bikes.

Assumed ourselves to be the Bajaj Auto Limited.

Named our bike as “VEGA”.

“VEGA : DEFINITELY AHEAD !!”

MARKET STRATEGY

Reasonable price justifiable by the feature.

Use of advertising media in numerous ways.

Promotion Techniques like test drives, road shows, fairs and exhibitions, contests and also the concept of ‘Influencer Selling’

TABLE OF CONTENT

Industry Structure. About Bajaj. SWOT Analysis. Why Delhi and Mumbai. Marketing Strategies. Financial Projections. Future Plans.

INDUSTRY STRUCTURE

Two wheeler - One of the largest automobile Industry.

Sales expected to cross 10 million mark by 2010.

Shares of motor cycles have increased over the years.

Negative or stagnant growth for mopeds and scooters.

TWO – WHEELER DOMESTIC SALE TREND

Motor Cycle. 2002 – 03 2887194 Scooters. 2003 – 04 3647493 Mopeds. 2004 – 05 4170445 2005 – 06 4964753 2006 – 07 5815417

TWO – WHEELER DOMESTIC SALE TREND

Motor Cycle. 2002 – 03 908268 Scooters. 2003 – 04 825648 Mopeds. 2004 – 05 886295 2005 – 06 922428 2006 – 07 908159

TWO – WHEELER DOMESTIC SALE TREND

Motor Cycle. 2002 – 03 408263 Scooters. 2003 – 04 338985 Mopeds. 2004 – 05 307509 2005 – 06 322584 2006 – 07 332741

ABOUT BAJAJ

Largest producers of automobiles in the country.

Able to sell close to 2.3 million vehicles in 2005/2006.

The company registered a growth of 32% in the sales of motorcycles

Commands 62% market share in the premium segment of motorcycles with products like Bajaj Pulsar DTSI.

SWOT ANALYSIS

Strengths Bajaj has a huge capacity of

manufacturing bikes, a part of which it can use for the manufacturing of the 222 cc to be launched in urban market.

Huge network of authorized dealers. Company’s collaboration with Kawasaki

Japan.

SWOT ANALYSIS

Weakness

Bajaj does not have an experience/expertise in manufacturing a motor cycle suitable for urban market.

SWOT ANALYSIS

Opportunity There is a considerable number of

people ready to opt for an advanced means of transport over an old fashioned less mileage bike.

SWOT ANALYSIS

Threat

Competitors like Hero Honda Karizma.

Constantly developing Chinese market in India.

TECHNICAL SPECIFICATIONS

4 – stroke engine. 222cc. 18bhp@ 10,000 rpm. Top speed – 159 kph (normal road

conditions). O – 60 in 3.5 seconds. Tyre size 130/18

Contd…..

CONTD….

Compatible battery and dynamic to power crystallized lights and horn.

Tubeless tyres for bad road conditions

WHY DELHI AND MUMBAI?

People having substantial net income in order to afford the bike.

Has been a tradition of launching the product in Mumbai and Delhi first.

To establish a stronghold in the urban market.

MARKET STRATEGIES

Pricing VEGA will be priced between 80 to 85K. Credit facilities to the customers in terms of loans.

Promotion Time of launch. Finance scheme. Test drives. Road shows. Campaign. Advertising through different medias

Distribution It will be done through our existing

dealers channel. Showrooms cover an area of 50 to 75 kms around them.

The actual delivery of the product will

be given at the authorized dealer showroom.

FINANCIAL PROJECTIONS

Total expected sales (approx) :

Year 1 - 3500 units Year 2 - 7300 units Year 3 - 12500 units

Annexure* Detailed information has been provided in the Project Report.

FUTURE PLANS

After successfully launching the product, we can move on to the high – usage areas in other cities of India.

Expansion in high – density areas like Punjab and Uttar Pradesh.

THANK YOU !