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Name: Mohammed Faris Kizhakkay Pattuthodi

Student ID: 0007VMNVMN0417

Program: MBA-SEMESTER 1

Subject: Marketing management

Lecturer: Dr. Vincent Wee

I declare that this assignment is all my own work and that I have acknowledged all materials
used from the published or unpublished works of other people. All references have been duly
cited.

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Contents
1.0 EXECUTIVE SUMMARY ...................................................................................................... 5
2.0 INTRODUCTION .................................................................................................................... 6
2.1 BACKGROUND OF COMPANY ....................................................................................... 6
2.2 BRAND IDENTITY.......................................................................................................... 6
2.3 BRAND ESSENCE ........................................................................................................... 6
2.5 MISSION ........................................................................................................................... 6
2.6 VISION .............................................................................................................................. 6
3.0 MARKET SEGMENTATION ................................................................................................. 7
3.1 GEOGRAPHIC SEGMENTATION ..................................................................................... 7
3.2 DEMOGRAPHIC SEGMENTATION ................................................................................. 7
3.3 PSYCHOGRAPHIC SEGMENTATION ............................................................................. 8
3.4 BEHAVIORAL SEGMENTATION..................................................................................... 8
4.0 TARGET MARKET ................................................................................................................. 8
5.0 CONSUMER BEHAVIOR ....................................................................................................... 8
5.1 CONSUMER BEHAVIOR MODELS ................................................................................. 9
5.1.1 THE ENVIRONMENT .................................................................................................. 9
5.1.2 BUYERS BLACK BOX ............................................................................................. 10
5.1.3 BUYER RESPONSES ................................................................................................. 10
5.2 CHARACTERICSTICS INFLUENCING CONSUMER BEHAVIOR ............................. 10
5.2.1 CULTURAL ................................................................................................................. 10
5.2.2 SOCIAL ........................................................................................................................ 11
5.2.3 PERSONAL.................................................................................................................. 11
5.2.4 PSYCHOLOGICAL ..................................................................................................... 12
6.0 MARKETING OBJECTIVE .................................................................................................. 12
7.0 MARKETING MIX ................................................................................................................ 13
7.1 PRODUCT .......................................................................................................................... 13
7.2 PRICE.................................................................................................................................. 14
7.3 PLACE ................................................................................................................................ 15

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7.4 PROMOTION ..................................................................................................................... 15
8.0 GANTT CHART .................................................................................................................... 16
9.0 CONCLUSION ....................................................................................................................... 16
10.0 BIBILIOGRAPHY ............................................................................................................... 17

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1.0 EXECUTIVE SUMMARY

Report to: The Board of Directors

Report from: Mohammed Faris K P

This report deals with the key marketing management tasks based on Bajaj Auto, a two wheeler
and three wheeler manufacturing company in India. The report undertakes market segmentation
of Bajaj Auto based on the demographic, geographic, psychographic and behavioral factors and
analyses a target market for Bajaj Auto. As well as this report makes a study of consumer
behavior of the targeted customers. It also studies the different characteristics such as cultural,
social, personal, and psychological that influences the behavior of the consumer. This
assignment also discusses about the marketing objective undertaken for a period of 3 years and
the marketing mix for Bajaj Auto. A Gantt chart is prepared to keep activities on track, for
efficiently executing the objectives and to keep a track of time.

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2.0 INTRODUCTION

Bajaj group has been positioned among the top 10 business communities in India and it has set
its trail over varied range of industries too. Bajaj Auto has been positioned as 4th largest two
wheeler industrialist and three wheeler industrialist in the world. The brand is famous in many
countries in Africa, Middle East, certain parts of America and Asia. Bajaj Auto is being run by
Rahul Bajaj, one of Indias eminent business frontrunner who is known for his empire-building
spirit. Bajaj is well known for the bikes it manufactures and the post sales services it offers.
Being an Indian brand, it provides affordable products to premium products to satisfy their
customers

2.1 BACKGROUND OF COMPANY

Bajaj Auto is a major automobile manufacturer setup by a Rajasthan business man. The company
is centered in Pune, Maharashtra, and have plants in Aurangabad, Chakan, and Uttaranchal. The
plant at Pune is the oldest. Bajaj Auto manufactures and exports motorcycles, scooters, and auto-
rickshaws.

2.2 BRAND IDENTITY

The brand expresses the thoughts and actions of Bajaj Auto visually and tries to inspire
confidence among everyone. Bajaj auto looks forward to do things in a manner that strengthens
the uniqueness of the brand by seeking to improve the experience of customers.

2.3 BRAND ESSENCE

Excitement is the brand essence of Bajaj Auto. Bajaj tries to stimulate assurance through
excitement engineering by combining competitive technology and youthful creativity to surpass
the expectations of the consumers.

2.5 MISSION

The mission of Bajaj Auto is to concentrate on quality based manufacturing and to develop team
work and enhance the competency of the team by constant improvement and providing a safe
and pollution free environment.

2.6 VISION

The vision of Bajaj Auto is to achieve world class excellence by providing quality products to its
consumers.

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3.0 MARKET SEGMENTATION

Market segmentation involves the process of separating a marketplace into groups of potential
buyers with differentiated requirements, behaviors, characteristics who prefer distinct
commodities and marketing combinations. (Charles W lamb, 2003)

It is one of the major elements of modern marketing process and involves separating markets
into segments, groups based on the factors like geographic, demographic, behavioral and
psychological factors. This also provides marketer with a better knowledge of their target
audience and it helps in making the marketing more successful. (Gunter & Furnham, 1992).

Bajaj provides products to large number of customers. Bajaj is well famous by manufacturing
products for people belonging to middle class group and upper middle class group. Although it
doesnt have much support in rural areas, it is successful in capturing the minds of young men in
the country.

The market is segmented into the following

1. Geographic segmentation
2. Psychographic segmentation
3. Demographic segmentation
4. Behavioral segmentation

3.1 GEOGRAPHIC SEGMENTATION

Geographic segmentation involves segmenting market on the basis geographic area such as
country, region, population mass, city size, and climate. By dividing a particular market based on
geographical region, the company can focus on a specific area and the needs and wants of the
consumers can be specifically targeted.

Although Bajaj Auto has extended its product and services into global markets, its sales are
mainly focused on India. They have been successful in catering the needs of people by making
the product available in almost every state.

3.2 DEMOGRAPHIC SEGMENTATION

It involves dividing the market on the basis of family size, life-cycle, age, gender, income,
education, nationality, ethnicity, social class and occupation.

Two wheelers from Bajaj Auto are mostly preferred by males in the age group 18-50. Mostly
Indians prefer this brand because it is an Indian based company and all kind of sales and after
sales services are easily available. The three wheelers of Bajaj auto are also preferred by people
of above mentioned age group and these products are mainly used as taxis and small scale goods
transportation.

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3.3 PSYCHOGRAPHIC SEGMENTATION

Psychographic segmentation centers on psychology of customers by dividing market on basis of


attitudes, personality traits, lifestyles, interests, characteristics, social standing.

On the basis of lifestyles, interests, personality traits, youngsters under age group of 18-25 prefer
sporty and premium models from Bajaj. They chose these products because it matches with their
attitudes, lifestyle, and it tells a lot about their social standing.

3.4 BEHAVIORAL SEGMENTATION

Behavioral segmentation involves segmenting market based on consumers buying behavior. To


divide the market, marketers look into the buying pattern of the consumers, usage patterns,
different occasions, and readiness to pay, brand loyalty of customers.

Bajaj Auto really focuses on their customers needs and preferences by taking into consideration
the buying pattern, usage pattern and readiness to pay by the consumers. So the products for this
particular segment are provided according to that. Most people use Bajaj two wheelers as a daily
commuter and these people are loyal to the brand as they provide excellent quality products and
services.

4.0 TARGET MARKET

Target market is a specific collection of customers with a common need or wants that a business
choose to target. (Cohen A, 2005)

Bajaj focuses on the youth of the nation who are amazed by technology. It caters the need of
various income group of the nation by providing a wide range of products. Bajaj targets people
in India of age group 18-50. Out of this people belonging to age group 18-25 prefer bikes in
sports segments and people belonging to age group 25-50 prefer commuter bikes. Female
consumers prefer scooters.

5.0 CONSUMER BEHAVIOR

Consumer behavior involves the purchasing behavior of customer. Consumers buying behavior
is based on social, physical, psychological behavior of prospective buyers. (Foxall, 2005)

It can be defined as the acts of a person which are directly involved in acquiring, using, arraying
of goods and commodities, decision making processes which precede and govern these actions.
(Engel, 1986)

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Consumer behavior is the behavior that a consumer displays while purchasing a product, their
feelings or emotions, and the physical actions which results from those choices and feelings.
(Leon Schiffman, 2013)

5.1 CONSUMER BEHAVIOR MODELS

5.1.1 THE ENVIRONMENT

ECONOMIC

This model is centered on the law of diminishing marginal utility. Utility is the benefit or
satisfaction that is obtained by consuming a product. Consumer wants to get maximum gain for
the minimum amount he spends.

SOCIAL

The social model states that an individuals buying decision are not solely based on utility factors
but they are mainly dependent on social factors like society, social groups, and their attitudes.

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CULTURAL

Cultural factors affect the buying behavior of a person because every culture has its own sets of
values and beliefs and ideologies. It is the values of an individual and what he acquires from the
people around him such as family and social groups.

5.1.2 BUYERS BLACK BOX

Black box is a term that is used to define the affective and reasoning processes that is used by a
consumer while making a purchase decision. It includes the buyers features and buyers
decision procedures that influence the buyers responses. It is termed as black box because it is
hard to figure out what the consumer have in mind while purchasing a product. (Marketing
Insider, 2012)

5.1.3 BUYER RESPONSES

Buyer response is influenced by the attitudes and preferences of the buyer. It also tells us the
purchase behavior of the consumer about what, when, where and how much. Buyers responses
are also based on the brand and the relationship behavior with the company.

5.2 CHARACTERICSTICS INFLUENCING CONSUMER BEHAVIOR

5.2.1 CULTURAL

CULTURE

Culture is the basis of a persons needs and behavior. It is the set of perception, values and
behavior that separate one set from another. These morals and behavior are acquired from a
member of the family, society or any other establishments.

SUBCULTURE

Every culture consists of subcultures. Here a group of people share a common value system
which may be centered on mutual situations and experiences. Subculture can be religions,

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nationalities or geographical regions. Sometimes marketers aim for a satisfying the needs of a
particular subculture as they makes up a market segment.

SOCIAL CLASS

Social class is a grouping of aspects such as occupation, revenue and education. Its a permanent
division that exists in a society. Social class is vital in determining a consumers response.

5.2.2 SOCIAL

REFERANCE GROUPS

A consumers behavior is influenced by reference groups. Reference groups influence a


customer directly and indirectly as it acts as a point of reference (comparison). A person is more
influenced when the product is visible directly to him/her. (B2C, 2013)

FAMILY

Families often have the most influence on the buying behavior of consumers because of the
strong relationship among them.

ROLES AND STATUS

Every person has their own roles and activities to perform, so they prefer products that suit their
roles. Each role has a status and it reflects the esteem given by the society.

5.2.3 PERSONAL

AGE AND LIFECYCLE STAGE

The taste and preference for different products keeps on changing and people dont use the same
product over their lifetime. The buying behavior depends on the age, marital status, of a person.

OCCUPATION

Buying behavior of a person depends on his occupation. For instance, a white collar worker
prefers to wear suits for work. Marketer should try and find the occupational group with high
concern in their products.

ECONOMIC SITUATION AND LIFESTYLE

The economic factors such as a persons income and savings and other factors will influence
what buyers purchase and from where, when and how much.

The living pattern is often referred to as lifestyle of a person. This pattern can be seen in the
interests, opinion and the persons activities

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PERSONALITY AND SELF CONCEPT

Personality is the exceptional psychological features that distinguish a person from the other.
These are often linked with qualities such as dominance, self-confidence, aggressiveness and so
on.

5.2.4 PSYCHOLOGICAL

MOTIVATION

Motives are what drive a person to fulfilling a need. According to Maslows need hierarchy
theory, needs are arranged in an order of their importance. Here the individual tries to fulfill the
most vital need at first and then the next and so on. Marketers keenly observe how people are
motivated in satisfying their need. (Pardee, 1990)

PERCEPTION

It is the method by which an individual chooses, systemizes and understands information.

LEARNING

Learning is a continuous process by which the behavior of a person changes with experience.
Every time a person buys something, he gains an experience from it which in turn affects the
buying behavior.

BELIEFS AND ATTITUDE

Consumers will be having their own set of beliefs and attitudes, marketers should focus on trying
to deliver products that match with the belief and attitude of the customers.

6.0 MARKETING OBJECTIVE

1) To increase the sales of two wheeler and three wheeler

The objective is to increase the sales of two-wheeler and three-wheeler by 5% at the end
of December 2018. The performance should be periodically evaluated and corrective
measures are to be taken, if necessary. Sales can be increased by developing a
competitive advantage and convincing the customer that Bajaj products are better than
those of the competitors

2) To launch new products

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The aim is to launch new products in the sports, cruiser and commuter segment. This can
be done by doing a research about what customers prefer and by introducing new
innovations that attract the customers. More products for female users can be introduced
in the market taking into consideration the color and design preferences.

3) To increase brand awareness.

Brand awareness can be increased by creating a presence in the social media, using the
traditional methods such as advertisement in newspapers and by conducting public events
such as test rides and showcasing the product. Promoting events such as road and safety
helps in creating brand awareness among people to a large extent.

7.0 MARKETING MIX


Marketing mix has been evolved from P (price) of the microeconomic theory. (Chong, 2003)

Marketing mix contains controllable marketing tools which are used to improve and develop
long-term and short-term planning programs. (Palmer, 2004)

Marketing mix involves a blend of various marketing decision making variables that are being
used by a firm to advertise its goods and services. It contains various marketing tools that a firm
or a company uses to generate an anticipated response in the target market. These set of
marketing tools are usually referred to as the 4Ps being product, price, promotion and place.
(Bitner, 1992)

7.1 PRODUCT

Product is the primary and foremost element of marketing. (Dang, 2015)

Product is something that is offered in market to grab the attention, so that it can be acquired or
used and to meet the needs and wants of consumers. The goods manufactured for the end users
by the organization are called products. And buyers acquire these in exchange of cash.
(Economic times, 2011)

The two wheelers are further divided into street bikes, sports bikes, cruiser bikes, and commuter
bikes. The sports bikes are preferred by college students, young working professionals and the
commuter bikes are preferred by elder people.

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The two wheeler products include:

Bajaj Dominar
1
Pulsar RS 200
2
Pulsar AS 200/150
3
Pulsar NS 200
4
Pulsar 220
5
Pulsar 180
6
Pulsar 150
7
Pulsar 135LS
8
Avenger cruise 220 desert gold edition
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Avenger street 220 & 150
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Bajaj V
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New Discover 125


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Platina comfortec
13
CT 100
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7.2 PRICE

The fair evaluation of a product is done by its price. E.g., good price for a good commodity.
(Ehmke, Fulton, Lusk , 2016)

Price is an important factor that affects the customer as it helps him recognize the value of the
commodity. Price can also be quantified as valuable, actual, giving value and it helps the
company to regulate its marketability by identifying its products and services. (Owomoyela,
Olasunkanmi, Oyeniyi , 2013)

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Bajaj Auto gives due importance while pricing its products. Bajaj takes into consideration the
different income groups and price their products according to their ability to purchase. Bajaj
makes sure that its products are affordable to the customers without compromising the quality.

Price list:

Bajaj Dominar - RM 9,674 (ex-showroom price)

Bajaj pulsar series ranges from RM 5,088 - RM 6,202 (ex-showroom price)

Bajaj Avenger series ranges from RM 5,502- RM 6,440(ex-showroom price)

Commuter bikes ranges from RM 2,153 - RM 4,104(ex-showroom price)

7.3 PLACE
Place, also known as distribution is an important element in marketing. It is defined as the
methods or process by which services or products reach the customers. (Martin, 2014)

Bajaj Autos manufacturing plants are located in Chakan and Waluj in Maharashtra and the third
one is located in Pant Nagar in Uttaranchal, western India. The manufactured products are then
transported to warehouses and then delivered to different dealerships according to demand. Sales
in metropolitan cities are high because of the large number of population and the need of owning
a two wheeler.

7.4 PROMOTION
Advertising aids in promoting ideas that helps in informing the consumers about new products
and thereby reducing the barriers between consumers and organizations. (Rahnama Baker, 2013)

Promotion refers to the various plans, policies, and ideas that are executed by the marketers to
make the consumer aware of the products and the brand. Promotions are used for publicity and to
induce customers to buy the product. (Mulhern, 2009)

Since Bajaj Auto is an Indian company, it uses the slogan Hamara Bajaj as this tagline invokes
A feeling of trust and confidence among the minds of people. The new tagline Bajaj came up
with is Distinctly Ahead. The philosophy of this tagline embraces both the product and
corporate identity. Bajaj Auto promotes their products through advertisements on TV, social
networks, newspapers, highway billboards and so on. Another popular way of promoting the
product is with the help of celebrities. People tend to watch the advertisement if its done by
popular celebrities and this plays a major role in promoting the product.

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8.0 GANTT CHART

Year 1 Year 2 Year 3


Quarters Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Research/ objectives
Market segmentation/
Target market
Understand consumer
behavior
Identify marketing mix
1) Product
2) Price
3) Place
4) Promotion
Budgeting
Implement marketing
Measure effectiveness `

9.0 CONCLUSION

This assignment studies in detail about the market segmentation and targeting of Bajaj Auto. The
market is partitioned into different segments based of the factors such as demographic,
psychographic, geographic and behavioral. Bajaj Auto carefully studies about these segments
and target their customers. Their target customers are mostly youngsters and they target regions
such as metro cities more than rural areas because people use Bajaj products more in cities than
in rural areas. Careful study about consumer behavior is done so that there is a better
understanding about customers. Consumer behavior models and the characteristics that influence
consumers buying behavior such as cultural, social, personal and psychological are also
discussed.

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10.0 BIBILIOGRAPHY

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Mulhern, F. (., 2009. Integrated marketing communications. Journal of Marketing Communications .

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