ppt of grant project

Presented by: ARPIT DESAI(18)

DIPAK PUROHIT (76)

Research Objective To study motorcycle segment in two-wheeler industry. To analyze the trends of Two-wheeler industry from the

point of view of production, sales and exports. To analyze the BAJAJ as the market competitor.

In the analysis, mostly the secondary data has been used and it may not be as reliable as primary data.

Our research is restricted only to Gandhinagar & Ahmedabad and Mehsana.

Limitations

Industry Overview

Automobile industry is one of the largest industries in India.

It encompasses commercial vehicles, multi utility vehicles, passenger cars, two-wheelers, three-wheelers, tractors and related auto components.

The industry has shown great advances since de licensing and opening up of the sector to foreign direct investment (FDI) in 1993.

Market Share of Two Wheeler Industry

Market Share 2006-07

79.19

3.94

12.834.04

Two-Wheelers CVs PVs Three Wheelers

Category 2005-06 2006-07

Total CVs 353703 391078

Total Passenger vehicles 1209876 1308913

Total Two Wheelers 6529829 7600801

Three Wheelers 374445 434424

Grand Total 8467853 9735216

Automobile Production Trends

Automobile Domestic Sales Trend

Category 2005-06 2006-07 (In Nos.)

Total CVs 318430 350683

Total Passenger Vehicles 1061572 1143037

Scooters 922428 908159

Motorcycles 4964753 5815417

Mopeds 322584 332741



Grand Total 7897629 8910224

Automobile Export Trend

Category 2005-06 2006-07 (In Nos.)

Total CVs 29940 40581

Total Passenger Vehicles 166402 175772



Grand Total 629544 806494

INDIA A small beginning in the early 50s when Automobile

Products of India (API) started manufacturing scooters in the country

Only few players were in the market like API, Enfield & Bajaj

The two-wheeler market was opened to foreign competition in the mid-80s

In 1990, the entire automobile industry saw a drastic fall in demand. The Reason for it:

• incessant rise in fuel prices• high input costs• reduced purchasing power due to significant rise in

general price level • credit crunch in consumer financing

INDIA World largest Motorcycle manufacturer Second Largest tractor manufacturer in the world Fifth largest commercial vehicle manufacturer in the

world Fourth largest Car market in Asia India holds huge potential in the automobile sector

including the automobile component sector Advantages:• Technological• Cost and manpower advantage• Largest market

Classification of two wheeler

1. Mopeds

2. Step thru’s

3. Scooterettes or mini

4. Scooters

5. Regular Motorcycles

6. Enfield Diesel Bullet

DEMAND DRIVERS 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;

GLOBAL SCENARIO

GLOBAL SCENARIO

37%

24%

7%

6%

5%

3%

3%

15%China

India

Indonesia

Vietnam

Thailand

USA

Brazil

Other

ABOUT BAJAJ AUTO LIMITED

MOTORBIKES OF BAJAJ

BAJAJ MOTORBIKES

MODEL CAPACITY Bajaj Avenger 180 CC Bajaj CT 100 99.27 CC Bajaj Discover

Bajaj Discover 111.63CC

Bajaj Discover DTSi 124.52CC

Bajaj Kawasaki Caliber 111.6 CC

Bajaj Kawasaki Boxer 111.6 CC

BAJAJ MOTORBOKES

Bajaj Pulsar DTSi Pulsar 180 DTS-i UG 180 CC Pulsar 150 DTS-i UG 150CC Pulsar 200 Cc 200CC Pulsar 220 DTS-Fi 220CC

CURRENT SITUATION BAL is currently outperforming the industry growth

rate in two-wheeler segment with 32% growth in year 2006-07 v/s industry growth of 19%.

Market share in Motorcycles is improving with every passing year. It has also increased from 28% in 2006-07 to 31% in 2005-06.

Annual turnover for the year 2006-07 is Rs. 81.06 billion v/s Rs. 63.23 billion a year before - an increase of 28% which is very healthy.

BAL has significant presence in all the three basic segments - Price Segment, Value Segment and Performance Segment - and has been showing increased sales in all the segments over years.

KEY DRIVES FOR BAJAJ AUTO LIMITED

Government policy impact on petrol prices Improvement in disposable income Changes in prices of second-hand cars Implementation of mass transport system Availability of credit for vehicle purchase

BAJAJ PULSAR

Pulsar was launched in direct competition to the Hero Honda's 'CBZ' model in 150 cc plus segment.

The campaign beared innovative punch line of "Definitely Male" positioning Pulsar to be a masculine-looking model with an appeal to the performance sensitive customers.

The Pulsar went one step ahead of Hero Honda's 'CBZ' and launched a twin variant of Pulsar with the 180 cc model.

The model was a great success and has already crossed 1 million mark in sales.

MARKETING ANALYSIS

Q-1 DO YOU THINK TRAFFIC ON THE ROAD IS INCREASED CONSIDERABLY?

YES 84%

NO 16%

Q-2What is preferred mode of daily traveling?

BICYCLE6%

P UBLIC TRANSP ORT

23%

MOP ED11%

MOTOR BIKE31%

SCOOTER11%

FOUR WHEELER

11%

WALK7%

Q-3Do you posses any two wheeler? yes No if yes

Which of the following two wheeler you have?

BAJAJ22%YAMAHA

12%

TVS8%

HONDA9%

LML8%

OTHERS10% HERO

HONDA31%

Q-4Are you satisfied with your existing two wheeler?

YES59%

NO41%

Q-5Have you intend to buy a new two wheeler with in next 6 months?

UNDECIDED35%

PROBABLY WILL NOT

16%

DEFINITELY WILL NOT

11%

DEFINITELY WILL 12%

PROBABLY WILL 26%

Q-6 Select the most frequently used source of information of two wheeler?

MAGAZINE/JOURNAL

11%

OTHERS10% TV AD

38%

FRIENDS & CLOSE ONE

23%PRINT AD

18%

Q-7Please select the criteria for purchase decision of new two wheeler

P RICE27%

P ICK UP18%

MILEAGE23%

STYLE13%

MAINTAINANCE9%

SERVICE CENTRE

10%

Q-8Which of the following criteria does your dealer satisfy?

SERVICE34%DISPLAY

14%

FINANCE OPTION

23%

OTHERS17%

LOCATION12%

Q-9Choose the following bike brand on basis of performance

BAJ AJ P ULSAR

30%

HERO HONDA

KARIZMA20%

BAJ AJ XCD12%

BAJ AJ DISCOVER

10%

HERO HONDA

ACHIEVER7%

TVS AP ACHE

15%

HERO HONDA

GLAMOUR6%

Q-10Are you aware about bajaj pulsar?

YES95%

NO5%

Q-11Which feature of bajaj pulsar people like most?

MAINTAINANCE

15%

SALES SERVICE

10%

MILEAGE

22%

PICK UP

26%

APPEARANCE

19%

IMAGE

8%

Q-12Do you think advertising strategy of pulsar (definitely male) has been justified.

YES81%

NO19%

Q-13Will you call a pulsar a value for money bike?

YES76%

NO24%

Q-14Which other bike compete with bajaj pulsar?

BAJAJ XCD14%

BAJAJ DISCOVERY

18%

HERO HONDA

ACHIEVER8%

HERO HONDA

GLAMOUR9%

HERO HONDA

KARIZMA29%

TVS APACHE

22%

KEY SUCCESS FACTOR1. Fuel efficient engine

2. Product Attributes

3. Technological Aspect

4. Marketing related

5. Distribution related

6. Manufacturing Related

PEST ANALYSIS

Political/Legal Factor Economic Factor Socio-Cultural Factor Technological Factor

Porter’s Five Force Model

1. RIVALRY AMONG PRESENT COMPETITORS

2. THREATS OF NEW ENTRANTS

3. BARGAINING POWER OF SUPPLIERS

4. BARGAINING POWER OF BUYERS

5. THREAT OF SUBSTITUTE

OT ANALYSIS

Opportunities Endless customer need New technologies Liberalization

Threats Change in consumer preference Substitute product New regulation

Findings The Indian Two Wheeler Industry made a remarkable

growth at rate of 19.2 % in year 2006-07.

At present Hero Honda is the market leader in motorcycle segment with approx 50 % market share.

Bajaj is performing quite well in terms of value creation for the stake holders & expanded portfolio of products for each class of people.

Bajaj Auto is at the second rank in the industry with a 29 % of market share and giving a good competition to market leader Hero Honda.

Because of the financial helps provided by companies and banks for vehicles demand and sales of two-wheeler had been increased at a very good rate and reach up to 7 million units in the year 2005-06.

Bajaj pulsar became leader in their range of the bikes due to their performance.

Suggestions Two wheeler companies should come up with

new range of bikes with LPG kit in the era of continuous hike in petrol price.

Two-wheeler company should cut down the prices of the bikes to face the competition from low priced and second hand cars.

To achieve the position of the market leader

bajaj should rethink its strategy. Bajaj should try to minimize the liquidity problem

as it may be a great cause of worry.

Bibliography Web Sites

1.www.ibef.org 2.http://www.herohonda.com

3.http://www.indiainfoline.com4.http://www.bajajauto.com5.www.financialexpress.com6.http://www.indiabudget.nic.in7.www.siam.com8.www.ncra.com

Magazines1.Business Today2.Business World3.Auto India, January 20074.Auto car

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