cb on bajaj

BAJAJ GROUP

A Group Built On Trust…

“ Do whatever you think best, but be best at whatever you do” -- Rahul Bajaj

HISTORICAL BACKGROUND

Founded in 1926. The Man behind Bajaj :

JAMANLAL BAJAJ 1931, started as Sugar

Manufacturing factory.

KAMALNAYAN BAJAJ, in 1942, diversified it into various manufacturing activities.

1945, turned as a BAJAJ AUTO.

Rahul Bajaj took charge of the business in 1965.

Group’s Flagship company is BAJAJ AUTO LTD.

Present Chairman and Managing Director of the group, Rahul Bajaj - one of India’s most distinguished business leaders.

The Bajaj Group is amongst the top 10 business houses in India.

Dominant presence in Sri Lanka, Columbia, Bangladesh, Mexico, Central America, Peru & Egypt.

Largest exporter of 3-wheeler.

( COMPRISES OF 34 COMPANIES ) Group

Companies

BAJAJ AUTO LTD. ( BAL )

INTRODUCTION Manufacturers of Scooters, Motor Bikes, 3

Wheelers Spare parts. Bajaj is India's second largest motorcycle

maker, smaller than Honda Motorcycle Scooter India, butl arger than TVS Motor Co. Ltd.

Bajaj Auto, is ranked as India's largest and the world's 4th largest two- and three-wheeler maker

The company is well known for their R&D, product development, process engineering and low-cost manufacturing skills

Bajaj auto has 4 plants at Akurdi, Waluj ,chakan & sidcul.

STARTED ITS JOURNEY……. Bajaj Auto came into existence on November 29, 1945 as

M/s Bachraj Trading Corporation Private Limited.

It started off by selling imported two-whellers & three-

whellers in india.

In 1977 The technical collaboration agreement with Piaggio

of Italy expired

In 1986, it managed to produce and sell 500,000 vehicles

in a single financial year.

Bajaj entered into a strategic tie-up with Kawasaki in late

1990s to enhance its product line and knowledge up-

gradation

EVALUATION OF BRAND BAJAJ

……………………………………………………

Product Portfolio:

TIMELINE OF NEW

RELEASES

HAMARA BAJAJ TO DISTINCTLY AHEAD

1972- BAJAJ CHETAK

1960- BAJAJ VESPA 150

1991 - Kawasaki Bajaj 4S Champion

1997 - Kawasaki Bajaj Boxer

2001 - Eliminator, Bajaj Pulsar

2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar

2004 - Bajaj CT 100

2004-Bajaj Discover DTS-i

2005 - Bajaj Wave, Bajaj Avenger,

2008 - Bajaj Discover 135 DTS-i - sport (Upgrade of existing 135 model)

2009 - Bajaj Pulsar 135(December 9)(January) 

BAJAJ POSITIONING STATEMENT

“Definitely

Brand Positioning Statement

Male”

BRAND ASSOCIATIO

NMTV BAJAJ Pulsar Stunt Mania

CONSUMER PREFERENCES FOCUSES ON-

1-Who Buys products or services? 2-How do they buy products or services? 3-Where do they buy them? 4-How often do they buy them? 5-When do they buy them? 6-Why do they buy them? 7-How often do they use them?

THE BUYER’S DECISION MAKING PROCESS INCLUDES THE FOLLOWING

1.Problem recognition

2.Information search

3.Evaluation of alternatives

4.Purchase decision

5.Post purchase behavior.

ADVERTISEMENT CAMPAIGN

Hero honda42%

TVS28%

Bajaj Auto ltd13%

Yamaha9%

Others8%

% share of TV ad among 2 wheeler manufacturer in 2009

TV ADVERTISEMENTS RANKING IN 2009 FOR NEW 2 WHEELERSRank Brand New Products

1 TVS motors TVS Apache RTR 180

2 TVS motors Scooty Streak

3 Hero Honda Karizma ZMR

4 Bajaj Auto XCD 135 DTS-Si

5 TVS Motors Flame SR125

6 Hero Honda Passion Pro

SPENDING OF MARKET LEADERSCompanies parameters Spending in

(2009) in croreSpending in (2008) in crore

TVSMotors

Sales Promotion & advertisement

91.82 104.37

Bajaj AutoLtd.

Sales Promotion & advertisement

85.27 127.15

Hero Honda

Sales Promotion & advertisement

249.6 221.78

FONDLY REMEMBERING HAMARA BAJAJ 2001 Bajaj relaunched their ad

campaign with new advertisement. The younger generation had a sort of

déjà vu. Humara Bajaj campaign launched by

Linta’s.

AD CAMPAIGN FOR KAWASAKI4S First attempt by Bajaj in motorcycle

segment. Target customer was father but target

audience of the commercial was the son in the family.

Aggressiveness showed by advertisements .

AD CAMPAIGN FOR BAJAJ BOXER Target was rural population & price

sensitive customer. Marketed as value for the money bike. Gave direct competition to Dawn &

MX100.

AD CAMPAIGN OF BAJAJ CALIBER Hoodibabaa campaign. Launched by O&M, Leo Burnett. Targeting customer was college goers &

25 plus executives. Caliber had a image of a rough & tough

guy who refuses to move from a signal when it is red despite being honked by a gang of roughs.

AD CAMPAIGN FOR PULSAR “Definitely male” ad campaign by

O&M(Ogilvy & Mather).

SOME POPULAR AD CAMPAIGN BY COMPETITORS Hero Honda desh ki

dhadkan

KEY COMPITETORS OF BAJAJ

ARCH RIVALS HERO HONDA Joint venture of hero group of India and Honda

of Japan known as the biggest manufacurer of two wheelers since 2001.

Generating the revenue of U$ 2.8 billion. Sold 3.28 million bikes in 2008-09 fiscal year

with market share of 41.35 %. Hero Honda sells more two wheelers than the

second, third and fourth placed two-wheeler companies put together.

Main bikes- splender NXG( worlds largest selling motor cycle), CD dawn 100cc,passion plus 100cc,Glamour 125cc, CBZ x-treme 150cc, Hunk 150cc, achiever, Karizma ZMR Fi 225cc.

TVS MOTORS Third largest two wheeler company in

India and is among worlds top 10. More than 15 million customers. India's only two-wheeler company to have

won the Deming Prize awarded for commitment to quality control, received in 2002.

Dominating bikes- Apache RTR 160, Apache RTR 160 Fi, Apache RTR 180, Flame DS 125, jive125cc, star city, scooty pept plus, victor.

Apache RTR 220 Coming soon..

INDIA YAMAHA MOTORS Indian subsidiary of Yamaha Motor Company,

formed in 2008 as a joint venture with Mitsui. Known for low range economic bikes in India. Recently emerged as a dominant player in

the market with the introduction of FZ-16, FZ-S, Fazer, and R15.

Other key products-Enticer,Crux 105cc,Gladiator 125cc,Libero,RX 100, RX 135

After the sucess of FZ series its time for SZ series with the launch of Yamaha SZ and SZ-X 150cc bikes.

BAJAJ’S NEW RIVAL HMSI A dominant player in the Indian two

wheeler market. 12 lakh sales in the last fiscal year. HMSI is finalizing its strategy to grab the

urban consumer more aggressively. Investing 500 cr in 2011 to raise itself

up. Key products- activa, shine 125cc, CBF

stunner 125cc, CB twister110cc, unicorn dazzler 150cc.

37

135 cc•Splendor•Start City•Passion Plus

150-200 cc

•TVS Apache RTR 150 & 180• Yamha Fazer•Hunk•CBZ extreme

220 cc•Hero Honda karizma ZMR

PULSAR COMPETITORS

04/10/2023

38

100 cc•CD Dawn•Splendor•Start City•Passion Plus

125 cc

•Super Splendor •Glamour •Flame

135 cc•Glamour•Ambition

DISCOVER COMPETITORS

04/10/2023

AVENGER DTS-I COMPITETORS Hero Honda karizma ZMR TVS apache RTR 180

SMALL SEGMENT COMPITETORS Hero Honda- cd dawn, splender, passion TVS- star city, jive, Flame Honda 110cc twister Suzuki slingshot 125cc

Boston Consulting Group (BCG)Matrix

Generate

Strong Cash Flow

Generate

Little Profits

Generate

Considerable

Income

Have Potential

to become Stars or

Cash cows

SALES DISTRIBUTION

OF

BAJAJ BIKES

MARKETING STRATEGIESBAL 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 motor cycle segment. The target customer was the father in the family but the target audience of the commercial was the son in the family. The time at which Kawasaki 4s was launched,

HERO HONDA was the market leader in Fuel – efficient

YAMAHA in the Performance Bikes.

CONTDThe commercial of Kawasaki 4s had the

punch line ” KYUN HERO”, which reflected the

aggressiveness in the marketing front by the company.

2nd marked entry of Bajaj bikes with the name ‘ Hoodibabaa’

Bike placed it as a trendy motorcycle for the college – goers

& 25 plus executives both at the same time.

STRATEGIES FOR OVERSEAS• In the year 2009-2010 export were over 725000 motorcycles and almost 165000 three wheelers.• Export rose by 15%• 28%of the companies net sales

EXPORTS

51%Africa And M iddle East

25%South Asia (exclud . India)

15%Latin Am erica

9%

51%Africa And M iddle East

25%South Asia (exclud . India)

15%Latin Am erica

9%

STRATEGIES• The 1st oversea office was at Jebel Ali (free

trade zone)• Focal point for export to Middle Africa and

The Saharan Nations.• “Boxer for Africa”

STRATEGIESThe other focus areas areSouth AmericaBrazilAsian Nations

BAJAJ BIKES SALES IN YEAR

2007 2008 20090

5

10

15

20

25

30

BAJAJ MOTORCYCLE SALES INCREASE BY 85% IN MARCH’10 The country’s 2nd biggest two- wheeler

manufacturer Bajaj Auto today posted 85.12% increase in its motorcycle sales at 2,44,828 units in March.

In March previous year, the company had sold 1,32,253 units, Bajaj Auto Ltd (BAL) credited the increase to strong sales of Pulsar and Discover range of bikes.

The Economic

times

BAJAJ BIKES SALES IN MONTH

2007 2008 20090

0.5

1

1.5

2

2.5

BIKES SALES SCENARIO IN URBAN AREA’S

Bajaj pulsar

Discover Bajaj CT 100

PLATINA BOXER Scooter0

10

20

30

40

50

60

70

80

90

STRATEGIES ADOPTED BY BAL FOR RURAL AREA’S Bajaj Auto also plans to set-up an

independent network of dealers for the Rural area’s.

The need of financing ,selling , distribution and even after sales services are completely different in the Rural area’s & don’t makes sense for city dealers to control this.

RURAL AREA’S

Bajaj Pulsar

Discover Bajaj CT 100

PLATINA BOXER Scooter0

5

10

15

20

25

30

35

40

45

GLOBAL BAJAJ Bajaj is present in over 50 countries all

over the globe. Market leader in motorcycles in

Colombia , Srilanka , Phillippines ,Nigeria &

kenya etc. 891,002 units exported in 2009-10, an

increase of over 15 % over the previous year.

Largest exporter of three wheeled commercial vehicles in the world: 164,887 units exported in 2009-10.

BAJAJ MARKET SHARE INCREASE’S RAPIDLY

100CC BAJAJ DISCOVER JUST INCHES AWAY FROM SPLENDOR

The Discover 100 cc, which was launched only in July last year has managed to become the second largest selling bike in India in a span of just 11 months. The bike has overtaken Hero Honda’s Passion and is now closing in on the heels of Hero Honda’s bread and butter model, the Splendor.

CUSTOMERS PREFER BAJAJ DISCOVER 100CC OVER 135CC “The overall mindset of the Indian two-

wheeler buyer is transfixed towards the fuel-efficiency of the bike. Any increase in fuel prices has a psychological effect on the buyer”.

Naresh Rattan, Vice-President (Marketing and Sales)

MARKET SHARE OF BAJAJ & HERO HONDA

2009 2010 2009 20100

10

20

30

40

50

60

BAJAJHEROHONDA

BAJAJ V/S HERO HONDAQUESTION - WHICH BRAND DO YOU LIKE

MOST & WHY?ANS- 40% SAYS BAJAJ 50% SAYS HERO HONDAWHY HERO HONDA-1- SERVICES CENTRES AVAILABLE EASILY.2-SPARE’S PART COST IS LOW

COMPARITIVE TO BAJAJ.3-AVERAGE OF HERO HONDA IS GOOD.

SWOT ANALYSIS

STRENGTH’S

Highly experienced Management. Extensive R & D Focus. Widespread distribution n/w. High Performance product across all

categories.

WEAKNESS’S Still has no established brand to match

Hero honda’s Splendor in commuter segment.

Not a global player in spite of huge volumes.

Not a globally recognizable brand (unlike the JV partner kawasaki ).

OPPORTUNITIES Double – digit growth in two wheeler

market. Untapped market above 180 cc in

motorcycle. The growing gearless trendy scooters &

scooter market. Growing world demand for entry –

level motorcycles especially in emerging markets.

THREAT’S The competition catches up any new

innovation in no time. Threat of imported motorcycles from

china. Margins getting Squeezed from both the

direction ( Price as well as cost ). Tata Ace is a serious competition for the

three wheelers cargo segment.

FINDINGS

WHY DO YOU USUALLY RIDE A BIKE?

Chart Title

enjoy21%

office48%

roam arround17%

Others15%

purpose of bike

TO WHOM YOU TAKE SUGGESTIONS WHEN YOU GO FOR A BIKE?

Father's sugges-

tion38%

Friend's suggestion16%

Own46%

suggestions

WOULD YOU BE ENCOURAGED BY TEST RIDE OF PREMIUM BIKE?

Yes74%

no26%

Test ride

HOW MUCH AMOUNT ARE YOU COMFORTABLE TO SPEND ON A BIKE?

60000 60000-80000 Above 80000

18 17 15

DO YOU HAVE BAJAJ BIKE?

Yes46%

No54%

presence

IF YES , THAN ARE YOU HAPPY WITH AFTER SALES SERVICES?

yes28%

No72%

After sales services

BAJAJ IS LOOKING TO SET TRI-ALLINACE WITH KAWASAKI AND KTM

HOW THIS TRI-ALLIANCE WILL BENEFIT TO ALL THE THREE PARTNERS

All three players would be able to share their dealership network which means reduction in cost, better distribution network and increased volume. For example KTM is planning to sell 1,00,000 units by end of 2013 using Bajaj dealership network. Kawasaki already has sold more than 500 Ninja through Bajaj dealership network.

KAWASAKI WOULD EB ABLE TO LEARN

“Kawasaki would be able to learn Bajaj low

cost structure and advanced technology of

off road bikes from KTM”

BAJAJ WOULD AB ABLE TO LEARN

“Bajaj on other hand would be able to compete globally with global giants like

Honda and Yamaha by KTM and Kawasaki

partnership”

KTM WOULD BE ABLE TO LEARN

“KTM would able to learn manufacturing cost

structure of high displacement motorcycle from Kawasaki and low cost structure from

Bajaj”

BAJAJ PLANNING TO BEAT NANO

UPCOMING BAJAJ MODELS Bajaj Sonic -- New entrant in the

light sports bike segment .

-- Targeting Young guys passionate for style & performance.

-- USP = Robust looks & Cool Style.

-- FEATURES = 100 cc Bikes segment with DTSi Twin plug technology with exhaus TEC.

EXPECTATIONS Bajaj Auto says its $2,500 car, which it is

building with Renault and Nissan Motor, will aim at a fuel-efficiency of 30 km/litre.

The car is scheduled to be launched in 2012.

It is a Tata Nano competitor. The Bajaj venture will have an initial capacity of 400,000 units, while Tata expects eventual demand of 1 million Nanos.

THANK YOU