Bajaj Auto-A Market Study

Bajaj Auto- A Market Study
Submitted by
Ajay Singh
Amandeep Singh
Chetan Ahuja
Chinmay Sharma
Contents
Nihar Routray
Bajaj Auto...........................................................................................3
Souvik Dey
About the company..........................................................................3

Product Portfolio............................................................................3
Products in 150cc category...........................................................4
SWOT Analysis.................................................................................5
BCG Matrix Analysis.........................................................................6
Porters 5 Force Model.....................................................................6
Market Segmentation, Targeting and Positioning.............................7
Bajaj and its Competitors...............................................................11
Bajaj Auto
Page 2
About the company

Bajaj Auto is a major Indian vehicle manufacturer headed by Rahul Bajaj. It is
based in Pune, Maharashtra, with plants in Chakan (Pune), Waluj (near
Aurangabad) and Pantnagar (Uttaranchal). The oldest plant at Akurdi (Pune) now
houses the R&D centre Ahead. Bajaj Auto makes and exports automobiles
scooters, motorcycles and the auto rickshaw.
The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1,946,
although it does not feature in the 2010 list.
Over the last decade, the company has successfully changed its image from a
scooter manufacturer to a two wheeler manufacturer. Its product range
encompasses scooterettes, scooters and motorcycles. Its real growth in numbers
has come in the last four years after successful introduction of a few models in
the motorcycle segment.
Bajaj Auto came into existence on 29 November 1945 as M/s Bachraj Trading
Corporation Private Limited. It started off by selling imported two- and threewheelers in India. In 1959, it obtained license from the Government of India to
manufacture two- and three-wheelers and it went public in 1960. In 1970, it
rolled out its 100,000th vehicle. In 1977, it managed to produce and sell 100,000
vehicles in a single financial year. In 1985, it started producing at Waluj near
Aurangabad. In 1986, it managed to produce and sell 500,000 vehicles in a
single financial year. In 1995, it rolled out its ten millionth vehicle and produced
and sold one million vehicles in a year.
Bajaj has grown operations in 50 countries by creating a line of value-for-money
bikes targeted to the different preferences of entry-level buyers.
Product Portfolio
Bajaj
Bajaj
Bajaj
Bajaj
Bajaj
Bajaj
Bajaj
Bajaj
Bajaj
Bajaj
Pulsar 150 DTSi.

Discover.
Avenger.
Platina.
Kawasaki KB 100 RTZ.
Boxer.
Caliber.
Pulsar 220 DTS-Fi.
Krystal.
Pulsar 180 DTSi.
Products in 150cc category

Page 3
1. Bajaj Pulsar 150cc

Product
Product name: Bajaj Pulsar
Brand name: Bajaj motors pvt ltd
A combination of technology and engineering, Bajaj Pulsar 150 cc offers
enhanced features like Digital Twin Ignition Technology (DTS-i) based engine,
digital console, ride feel and chassis.
Looks
Three colors - black, red & silver

Smashing looks
Mean muscular aerodynamic design
Digital speedometers
Fuel indicator
LED tail lamps
New design seat cowl
Control
Stronger alloy steel wheel base

Smaller wheel radius (17")
Wheel base (1300mm)
Easy top gear driving
Lesser gear changes
Improved engine torque optimizing engine performance
Engine powered to carry higher loads
Comfort
Instant pickup in any gear

Easy drivability in city traffic conditions due to ExhausTEC technology
NitroX-Nitrogen assisted rear gas shockers give cushion feel
Lesser gear change
Engineered for carrying higher loads
Low speed & high gear combination offers phenomenal ride
Rip-roaring power without compromise on mileage

Mileage and Economy
User reported 50-55 kmpl in city conditions

Under highway conditions user reported upto 62 kmpl
Petrol Tank Capacity: 15 Ltrs
Petrol Tank Reserve capacity: 2 Ltrs
For complete technical specifications visit

http://www.mypulsar.com/home_150.aspx?
clkid=me2w_4df5f8e67278d&utm_term=bajaj_pulsar_150cc_features&utm_c
ampaign=Ros&gclid=COWdpunnsqkCFQt66wodLWn0aQ
Pricing
Bajaj Pulsar 150 cc Price in Delhi: 62,637/- Indian Rupee
2. Bajaj Discover 150cc
Page 4
Product
Product name: Bajaj Discover
Brand name: Bajaj motors pvt ltd
Bajaj Discover was launched with 150cc engine upgrade. Bajaj Discover
150cc also 5 speed manual, air cooling type, 4 colors, 8L fuel tank and 121
kg. Mileage has been claimed up to 50 km per liter of gasoline. - 5 speed
gear-box for superior performance.
Specifications:
- 150cc DTS-i 4 Stroke engine
- 13 Bhp Power, 12.7 Nm Torque
- LED Tail Lamp
- Nitrox Suspension
- Matte Finish Alloy Wheels
- Self Start
- Front Disc Brake
- 5 Speed Gearbox
- Wider rear tyre
- Auto Choke
- Battery Charge Indicator
- Ride Control Switch
Shades Available in Bajaj Discover 150- Black with blue graphics, Black
with red graphics
For
complete
technical
specifications
visit:http://www.burnyourfuel.com/news/bike-news/bajaj-discover-150launched-today-india
Pricing
Bajaj Discover 150cc bike is priced at Rs 46000 (ex-showroom, Delhi).
SWOT Analysis
1. Strengths
Extensive R&D focus
High performance products in 150cc categories
High export to domestic sales ratio
High economies of sale
Legacy of brand name
Highly experienced management
Great finance support network
Product design and development capabilities
2. Weaknesses
Has presence mostly in one area of market (150cc)
Still not a very established name in the global market
Hasnt employed the excess cash for long
Page 5
Centralized paternalistic management style
3. Opportunities
Bajaj on internal analysis found that it lacks technical expertise to
deliver competitive goods
Growing gearless trendy scooters market
Can use the existing R&D capabilities for new models
Can invest and grow in the life style segment
4. Threats
Tough competition from domestic as well as foreign players
Threat of FDI norms, same as Hero Honda
Margin squeezes from all the directions
The competition catches up with any new innovation in no time
BCG Matrix Analysis

MARKET SHARE
G
R
O
W
T
H
H
i
g
h
Pulsar 150 and 180cc
XCD 125
Discover
Pulsar 200 and 220cc
Blade
Platina
CT 100
Avenger
Kristal
R
A
T
E
L
o
w
High
Low
Porters 5 Force Model
Page 6
Market Segmentation, Targeting and Positioning

Segmentation
BeforePulsarBajaj was just known for its scooter as its various attempts
failed to pose a threat to the Hero Hondas supremacy.
But Bajaj strategically placed Pulsar in the market against the CBZ in the
150cc segment.
Pulsar proved to be a land mark in reviving the fate and position of Bajaj
thereby posing a threat to Hero Hondas rule in Indian market.
USP of Pulsar wasnt its performance but its advertising, targeting &
positioning.
Targeting
Bajaj did all the right moves by targeting the youth and He-bike, and
making Pulsar an inseparable attribute to Males.
Pulsar was Bajajs firstbike without Kawasaki label on it.
The bikes orientation was towards being a macho and manly bike.
Positioning
Bajaj has positioned Pulsar in the High Style High Price segment along
with Hero Honda Karizma, Hero Honda CBZ, Royal Enfield Bullet.
It also has positioned CT 100 in the Low Style Low Price segment along
with Hero Honda Splendor, TVS Star City.
Branding
Page 7
Brand Positioning
Pulsar
Discover
Page 8
Rebranding from Hamara Bajaj to Distinctly Ahead
The decades old logo of the B in a hexagon that stood for Hamara Bajaj was
replaced with a more dynamic, vibrant, stylized and trendy B with Bajaj moving
from lower caps to upper caps to symbolize the rejuvenated Bajaj Auto Ltd.
The new visual identity of Bajaj Auto emanated
from the confirmation of core values, which Bajaj
identified as its brand values. The Brand essence
for the new Bajaj was defined as Excitement
which Bajaj promises to live its essence through a
set of five Brand Values of Learning, Innovation,
Perfection, Speed and Transparency.
The change in Identity was part of the ongoing
changes. Bajaj had transformed its facilities to
state of the art manufacturing infrastructure, with
an enviable distribution and service network, had
created a benchmark R&D facility and at a time
when the customer had changed in terms of its
exposure to quality and style, the change in
identity became necessary to help invite a
paradigm shift in consumer perception of the company.
The traditional hexagonal symbol has been replaced by an open abstract form of
stylized B, the flying B as it has been named represents style and technology. It
also has a strong association with the heritage of Bajaj since the external form
Page 9
has a hint of hexagon. Flying B form denotes speed and open form denotes the
transparency.
The new logotype of the all capitals BAJAJ represents precision engineering and
perfection. The logo is all about confident and bold stylistic lettering, which is
very global in its outlook and its presentation across all media be it print,
television or billboard advertising.
Brand Association
Bajaj Pulsar joined hands with MTV India in 2009 to launch Pulsar MTV Stunt
Mania, Indias first ever biking stunt reality show. This association was aimed at
the youth market which is the prime focus for the performance biking sector and
MTV being Youth Centric was an excellent choice.
Advertising Strategy
Bajaj is always known for its outstanding ads over the period of time. Since its
inception, Bajaj has come out with variety of ads and were always successful in
their advertisements. Bajaj is always known for its ads without well-known brand
ambassadors which is again a plus point to its cart as it saves a huge cost in
terms of brand ambassadors unlike Hero Honda and TVS. Prior, Bajaj used to
convey the feeling of Indianness in its ads. With a punch line Hamara Bajaj
Bajaj drove into everybodys hearts and the title song of Naye Bharat Ki Naye
Tasveer added a great value to its mobikes and scooters. A couple of years back,
Bajaj introduced an advertisement which promoted all the different ranges it had,
wherein they showed each product they had with a feeling of Indianness.
Example: Eliminator passes-by a rangoli and drives slowly sideways without
disturbing it. People on Boxer pass-by a temple and bend their head to give a
little offering. Such ads revealing Indian culture had a great effect on Indians and
Bajaj was successful in most of its ads. Recently, Bajaj changed its brand logo
along with its punch line i.e. Hamara Bajaj which got converted to Inspiring
Confidence. The reason for this change as told by the company officials was to
keep pace with the new technologies in the fast moving world. Even though it
had changed its punch line, it didnt have much effect on its brand image. A year
back, Bajaj introduced DTSi technology upgrading its successful PULSAR 150cc
and 180cc. Though Bajaj had changed its identity it still dominates for its
creativity in ads.
Page 10
Bajaj and its Competitors
Sales figures April 2010

Hero Honda
Bajaj
TVS Motors
Honda
Yamaha
Suzuki
400000
350000
300000
250000
Sales Figures Apr-09
200000
Sales Figures Apr-10

150000
100000
50000
0
Hero Honda
Bajaj
TVS Motors Yamaha
Competitors
Page 11
Suzuki
1. Hero Honda
Hero Honda Motors Limited is a two wheeler manufacturer based in India.

Hero Honda is a joint venture between the Hero Group of India and Honda of
Japan. The company is the largest two wheeler manufacturer in India. The
2006 Forbes 200 Most Respected companies list has Hero Honda Motors
ranked at 108.
Hero is the brand name used by the Munjal brothers for their flagship
company Hero Cycles Ltd. A joint venture between the Hero Group and Honda
Motor Company was established in 1984 as the Hero Honda Motors Limited
at Dharuhera India. Munjal family and Honda group both own 26% stake in
the Company. In 2010, it was reported that Honda planned to sell its stake in
the venture to the Munjal family.
The technology in the bikes of Hero Honda for almost 26 years (19842010)
has come from the Japanese counterpart Honda. Hero Honda has three
manufacturing facilities based at Dharuhera in Gurgaon in Haryana and
at Haridwar in Uttarakhand. These plants together are capable of churning
out 3 million bikes per year.Hero Honda has a large sales and service network
with over 3,000 dealerships and service points across India.
Strengths
Hero Honda has the highest market share of 40% in Indian 2-wheeler
industry.
Hero Honda is the only one company in two wheeler and automobile
industry which has collaboration with many banks in India as well as in
foreign and it helps them to increase their sale through loan.
Hero Honda has very good brand image that of making fuel efficient
bikes, and its largest dealership and showrooms all over India makes it
stronger than others.
Hero Honda bikes are well known for its very low maintenance cost and
less price for spare parts.
Resell value is high.
Strong distribution network and service centres.
Large range of products for almost the entire customer base.
Weaknesses
R&D is not close to the Hero manufacturing plant.
As the Indian Government has opened the market for FDI making
investments an easy path for foreign investors, Honda does not feel the
need to continue the collaboration pact been signed with the Hero.
Hero Honda is riding on the image created by its 100cc bikes. The
150cc bikes still to make an impact on the market.
Did not patent the DTS-i technology launched with Ambition. This
technology was later patented by Bajaj for the model Pulsar.
Opportunities
Large market for the high performance segment which is increasing
with the upliftment of lifestyle of people.
Global expansion into Caribbean and Central America.
Expansion of target market including women.
Page 12
Hero group entered into aviation sector and invested 500 crores in MP
SEZ.
Leverage on superior distribution network to facilitate selling of more
bikes.
Threats
Bajaj Motors is a strong competitor. Bajaj Auto has found popularity
with both its low-end and premium offerings which have helped chip
away at Hero Hondas dominance.
Increase in petrol, aluminium and steel prices.
FDI announced by Indian Government in automobile industry
2. India Yamaha Motor Pvt. Ltd.

Yamaha made its initial foray into India in 1985. Subsequently, it entered into
a 50:50 joint-venture with the Escorts Group in 1996. However, in August
2001, Yamaha acquired its remaining stake becoming a 100% subsidiary of
Yamaha Motor Co. Ltd., Japan (YMC). In 2008, Mitsui & Co. Ltd. entered into an
agreement with YMC to become a joint-investor in the motorcycle
manufacturing company "India Yamaha Motor Private Limited (IYM)".
IYM operates from its manufacturing units at Surajpur in Uttar Pradesh and
Faridabad in Haryana and produces motorcycles for both domestic and export
markets. With a workforce of more than 2,000 employees, IYM is has a
countrywide network of over 400 dealers.
Strengths
Size and scale of parent company
Effective advertising capabilities
High emphasis on R&D
Experience in the market
Established brand
Established market channel
Weaknesses
Weak product diversity
Not much aggressive selling
Opportunities
Growing premium segment.
Global expansion into the Caribbean& Central America
Expansion of target market including women
Threats
Strong competition from established players in the Indian market
Rising cost of raw materials
Page 13
3. TVS
TVS Motor Company is the third largest two-wheeler manufacturer in India
and is among the world's top ten. It is the flagship company of the parent TVS
Group employing over 40,000 people with an estimated 15 million customers.
It manufactures motorcycles, scooters, mopeds and auto rickshaws. It is
India's only two-wheeler company to have won the Deming Prize awarded for
commitment to quality control, received in 2002.
TVS began its commercial production of motorcycles in 1984. TVS and Suzuki
shared a 19 year long relationship, which was aimed at technology transfer to
enable design and manufacture of two-wheelers specifically for the Indian
market, which ended in 2001.
The company has manufacturing plants in Hosur, Mysore and Nalagarh in
India and Karawang in Indonesia.
Strengths
Wide distribution network
Dominates the market in Tamil Nadu
TVS Motor Company Ltd. has got excellent monitoring System, which
helps in smooth working of industry
Weaknesses
Regional dependency in South India.
Opportunities
Not much presence in market except a few known brands.
Threats
Major competitors in Hero Honda, Bajaj and Yamaha which are better
known and recognised.
4. Honda Motorcycle & Scooter India, Private Limited
Honda Motorcycle & Scooter India, Private Limited (HMSI) is the wholly owned
Indian subsidiary of Honda Motor Company, Limited, Japan. Founded in 1999,
it was the fourth Honda automotive venture in India, after Hero Honda, Kinetic
Honda Motor Ltd and Honda Siel Cars India Limited.
The Honda Unicorn was the first motorcycle released by HMSI.
Strengths
Wide distribution network
Dominates the market in Tamil Nadu
Innovation
Strong brand equity
Unique products
Production System that is refined over the years
Page 14
High and powerful research and development R&D

Best market share leadership revolutionary engine technology with the
help of which Honda is gaining success day by day
Weaknesses
Regional dependency in South India
Cost structure of Honda is high as compare to other automobile
manufacturers
Opportunities
Not much presence in market except a few known brands
Emerging market is one of the best opportunity for this company
Fuel efficiency is now a days termed as one of the best opportunity
which can results in the best productivity for the company
Honda can increase its production by focusing on sales and research
Threats
Major competitors in Hero Honda, Bajaj and Yamaha which are better
known and recognised
One of the major threat is the economic slowdown
All the external changes for instance taxes, politics as well as
government are the major threats for Honda Company
Another threat is the lower cost competitors
Price war is also consider as an important threat for this company
Second movers are the major threat for Honda company
Way Ahead for Bajaj Auto

Choose a Brand Ambassador which could provide the face to the Brand.
Come up with Innovative Brands so as to move up the ladder and occupy a
larger market share.
Re-position the not so successful brands and inculcate appropriate
advancements in it.
Learn from failures and bring something unique and new in Indian market
so as to be more competitive in times to come.
Page 15

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