technology. They are trendsetters and very choosy about what they ride.Hence, Probikers need to be addressed in a meaningful way that goes beyond the product. Bajaj Auto is in the process of setting up a chain of retail stores across the country exclusively for high-end, performance
bikes. These stores are called ―Bajaj Pro
biking". Fifty two such storeshave been opened across India.Catering to demand in this sector requires a strong and effectivedistribution network as consumers are more demanding and expectdelivery on time. Early delivery is a cause of delight for customers. Withsuch vast global and Indian rural presence, designing an efficientdistribution system becomes a complex task even for a company likeBajaj Auto. Lot of time and effort goes into designing a strategy basedefficient distribution system.
Two Wheeler Industry: An Overview
The Indian two-wheeler industry has witnessed spectacular growth inthe last few years. The market dynamics of the industry has substantially changed with a majority of the customers preferring bikes to scootersand mopeds. This is primarily due to better fuel efficiencies, dynamics,looks and longer product lives of motorcycles.The motorcycle segment constitutes about 81.5% of the two wheelermarket in India
. It also contributes to three-fourths of the total exportsin the two wheeler industry. Exhibit 1 shows that Bajaj is the secondlargest player in this segment after Hero Honda.
Market Shares of the major players in the two wheeler market segment
The industry exhibits some degree of collusive behaviour and thusrepresents an oligopolistic form of market structure. Product and brand