UNIVERSITY OF MUMBAI

A PROJECT REPORT ON
A STUDY ON THE PERCEPTUAL MAPPING OF
TWO WHEELER INDUSTRY (BAJAJ MOTORS)

IN THE SUBJECT OF
BUSINESS COMMUNICATION

In the Partial Fulfilment in Bachelor of

Management Studies

B.M.S. – (SEM-VI)
(2020-21)

SUBMITTED BY
KHAN MH SAMI AMJAD ALI
ROLL NO. 61

UNDER THE GUIDANCE OF

PROF. YOGESH PAWAR

Swayam Siddhi Degree College

Swayam Siddhi College Campus, SCHOOL, DEGREE, MBA/MMS, PGDGM, 

1
 CERTIFICATE

This is to certify that KHAN MH SAMI AMJAD ALI of Swayam

Siddhi Mitra Sangh Degree College studying in T.Y.B.M.S
(Marketing) -SEM-VI bearing Roll No. 61 successfully completed the
project entitled “A STUDY ON THE PERCEPTUAL MAPPING OF
TWO WHEELER INDUSTRY (BAJAJ MOTORS)” as part of
internal assignments under my supervision during the academic year
2020 –2021.

---------------------------- ----------------------
Prof. YOGESH PAWAR Dr. MAHESH SONI

--------------------------------- ---------------------------------
Internal Examiner External Examiner

2
 DECLARATION

I MR. KHAN MH SAMI AMJAD ALI Student of T.Y.B.M.S

(Marketing) -SEM-VI (2020-21) of Swayam Siddhi Mitra Sangh
Degree College BHIWANDI 421302 do hereby declare that I have completed
project work Titled “A STUDY ON THE PERCEPTUAL MAPPING
OF TWO WHEELER INDUSTRY (BAJAJ MOTORS)” as a part of
my academic fulfilment.

The information contained in this project work is true and original to

the best of my knowledge and belief.

Place:

Date:

KHAN MH SAMI AMJAD ALI

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 ACKNOWLEDGEMENT

I have a great pleasure in presenting my project on “A STUDY

ON THE PERCEPTUAL MAPPING OF TWO WHEELER
INDUSTRY (BAJAJ MOTORS)”.

I sincerely thank with deep sense of gratitude to PROF. YOGESH

PAWAR, my guide for her kind co-ordination for the fulfilment of this
project.

I am highly indebted to our PRINCIPAL DR. MAHESH SONI

SIR who took keen interest and allowed me to perform this project.

I would also like to thank our seniors, librarians who sincerely

helped me getting this information and, last but not the least my college
for the big reason that I am here in front of you in presenting this project.

SIGNATURE OF STUDENT

KHAN MH SAMI AMJAD ALI

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 INDEX

Sr Content Page
No No
1 Marketing Strategies Of Two Wheelers Dealers 1
2 Introduction 2
3 Overview Of Two Wheeler Sector 4
4 Evolution of Two-Wheeler Industry in India 8
5 Segmentation Of Two Wheeler 11
6 Financing Ratios 12
7 Research Methodology And Research Design 16
8 Expectations Of The Company From This Survey 17
9 Marketing Mix Plan 21
10 Limitations Of Study 31
11 Advertising Strategy 32
12 Trends In Two Wheeler Industry 36
13 Swot Analysis Of Bajaj Auto Ltd 54
14 Ethics Of The Company 56

15 Recommendations 57
16 Conclusion 58
17 Bibliography 59

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 MARKETING STRATEGIES OF TWO
WHEELERS DEALERS
EXECUTIVE SUMMARY
This report deals with Motor Bike Industry in India, who are the major
players in two wheeler industry and what are all the marketing strategies
they are adopted. How consumers recognize and rate different two
wheelers in competitive scenario.
The project named “Marketing strategies of two wheeler dealers in
Bangalore” is undertaken to analyze how dealers utilizing the four p`s
(product, place, price and promotion) of marketing mix and what are all
current trends is going on in two wheeler automobile industry. Main
aspects of the project are to analyze the different products and services
offered.
This survey will help the two wheeler sector to evaluate their product
and the services they deliver. This will act as a tool for the company to
know their opportunities and threats in the market. Expectations of the
company from this survey are:
 How to maximize the sales.
 To improve the promotional activities.
 Customize the product as per the customer’s needs.

This project is not concentrated to a particular area or factor. This project

basically includes all the factors which emphasize purchasing decision of
a customer and his choice.

The project is based on a Market Survey being conducted of the general

customers & thereby analyzing and recording their views about present
strategies adopted by dealers.

1
 INTRODUCTION

Automobile is one of the largest industries in global market. Being

the leader in product and process technologies in the manufacturing
sector, it has been recognized as one of the drivers of economic growth.
During the last decade, well directed efforts have been made to provide a
new look to the automobile policy for realizing the sector's full potential
for the economy. Aggressive marketing by the auto finance companies
have also played a significant role in boosting automobile demand,
especially from the population in the middle income group.

A Nations economy is well known from its transport system. For

instant and rapid growth in economy, a well-developed and well-
networked transportation system is essential. As India's transport network
is developing at a fast pace, Indian Automobile Industry is growing too.
Also, the Automobile industry has strong backward and forward linkages
and hence provides employment to a large section of the population. Thus
the role of Automobile Industry is very essential in Indian economy.
Various types of vehicles are manufactured by the Automobile Industry.
Indian Automobile Industry includes the manufacturing of trucks, buses,
passenger cars, defence vehicles, two-wheelers.

The two-wheeler manufacturing is dominated by companies like

TVS, Honda Motorcycle & Scooter India (Pvt.) Ltd., Hero Honda,
Yamaha, Bajaj, etc.

The automobile industry in the country is one of the key sectors of

the economy in terms of the employment opportunities that it offers. The
industry directly employs close to around 0.2 million people and
indirectly employs around 10 million people. The prospects of the

2
industry also has a bearing on the auto-component industry which is also
a major sector in the Indian economy directly employing 0.25 million
people.

All is not well with the automobile industry the world over
currently with the slowdown that has gripped most of the major
economies of the world. The gap between the manufacturing capacity
volume and the assembly volume is growing by the day and has worried
the manufacturers. This state of affairs has triggered a lot of cutthroat
competition and consolidation in the industry. Cost reduction initiatives
have come to be the in thing in the global industry today. Towards this
direction, many automobile factories are being closed down.

The Indian automobile industry is a stark contrast to the global

industry due to many of the characteristics, which are peculiar to India.
The Indian automobile industry is very small in comparison to the global
industry. Except for two wheelers and tractors segments, the Indian
industry cannot boast of big volumes vis-à-vis global numbers

3
 OVERVIEW OF TWO WHEELER SECTOR

Two Wheeler Industry

The Indian two wheeler contributes the largest volumes amongst

all the segments in automobile industry. Though the segment can be
broadly categorized into 3 sub-segments viz.; scooters, motorcycles and
mopeds; some categories introduced in the market are a combination of
two or more segments e.g. scooterettes and step-thru's . In the last four to
five years, the two-wheeler market has witnessed a marked shift towards
motorcycles at the expense of scooters. In the rural areas, consumers have
come to prefer sturdier bikes to withstand the bad road conditions. In the
process the share of motorcycle segment has grown from 48% to 58%,
the share of scooters declined drastically from 33% to 25% , while that of
mopeds declined by 2% from 19% to 17% during the year 2000-01. The
Euro emission norms effective from April 2000 led to the existing players
in the two- stroke segment to install catalytic converters. All the new
models are now being replaced by 4-stroke motorcycles. Excise duty on
motorcycles has been reduced from 32% to 24%, resulting in price
reduction, which has aided in propelling the demand for motorcycles.

Within the two-wheeler industry, motorcycle segment grew at a

phenomenally high rate of 35% as against a deceleration of 3% for
scooters and 27% for mopeds. In fact, motorcycle has been taking away
the share of scooters and mopeds in a 4.3 million two-wheeler market and
surging ahead with its market share of 68%. The increasing demand from
semi-urban and rural segments may have caused this positive shift
towards motorcycles. Also, easy credit coupled with low interest rate
regime, constrained personal transport, increasing income levels in
middle class and higher aspirations of young people all seem to be the
factors responsible for such high growth in two-wheelers. The growth in
4
two-wheelers has been robust enough to counter the slow down and other
factors constraining the overall business activity in the country. Also,
rationalization of excise duty in the Union Budget 2002-03 had a positive
impact on the demand for motorcycles. We also expect the motorcycles to
continue to lead the two-wheeler segment like in all other Asian
countries. Available forecasts suggest that this trend would continue for
another couple of years and the industry would record nearly double-digit
average annual growth up to 2006.

During the year, there have been important developments in two-

wheeler industry. The competition has strengthened though there are
hardly any new entrants into the industry. There is an increasing emphasis
on price and this has led to cost cutting efforts all across the industry,
thereby, making the customer an ultimate beneficiary. The trend also saw
introduction of new motorcycles with capacity ranging from 100 to

180cc bikes. We anticipate that many more new models will be

launched during the year and provide customers plenty of choice at
competitive prices.

Businesses cannot consistently grow at 25-30 per cent. Each

business has a tendency to taper and plateau after attaining a particular
size. An annual growth rate of 10-12 per cent over a period of time is
extremely healthy.

The TCS study rankings are conducted at the motorcycle segment-

level to provide comparisons among similar groups of motorcycles.
Motorcycles ranking highest in their respective segments for TCS are:
Hero Honda CD100 SS (best standard motorcycle segment); Hero Honda
Splendor (best executive motorcycle segment); Bajaj Pulsar (best
premium motorcycle segment); and Royal Enfield Bullet Electra (best
cruiser motorcycle segment). "The relatively low score for the premium

5
segment indicates that most manufacturers have fallen short of meeting
the high expectations of these buyers," states Mr. Lochan. "Bajaj Pulsar is
one exception with segment-leading ratings across all aspects of
ownership experience, particularly on areas related to vehicle styling."

The feeling of freedom and being one with the Nature comes only from
riding a two wheeler. Indians prefer the two wheelers because of their
small manageable size, low maintenance, and pricing and easy loan
repayments. Indian streets are full of people of all age groups riding a two
wheeler. Motorized two wheelers are seen as a symbol of status by the
populace. Two wheelers in India are the second largest producer and
manufacturer of two-wheelers in the world. It stands next only to Japan
and China in terms of the number of two-wheelers produced and
domestic sales respectively. Indian two-wheeler industry has got
spectacular growth in the last few years. Indian two-wheeler industry had
a small beginning in the early 50's. The Automobile Products of India
(API) started manufacturing scooters in the country.
Bikes are a major segment of Indian two wheeler industry, the other two
being scooters and mopeds. Indian companies are among the largest two-
wheeler manufacturers in the world. In the initial stages, the scooter
segment was dominated by API; it was later overtaken by Bajaj Auto.
Although various government and private enterprises entered the fray for
scooters, the only new player that has lasted till today is LML.

The motorcycle segment was initially dominated by Enfield 350cc bikes

and Escorts 175cc bike. The two-wheeler market was opened to foreign
competition in the mid-80s. And the then market leaders - Escorts and
Enfield - were caught unaware by the onslaught of the 100cc bikes of the
four Indo-Japanese joint ventures. With the availability of fuel efficient

6
low power bikes, demand swelled, resulting in Hero Honda - then the
only producer of four stroke bikes (100cc category), gaining a top slot.

The first Japanese motorcycles were introduced in the early eighties.

TVS Suzuki and Hero Honda brought in the first two-stroke and four-
stroke engine motorcycles respectively. These two players initially started
with assembly of CKD kits, and later on progressed to indigenous
manufacturing. In the 90s the major growth for motorcycle segment was
brought in by Japanese motorcycles, which grew at a rate of nearly 25%
CAGR in the last five years.

The industry had a smooth ride in the 50s, 60s and 70s when the
Government prohibited new entries and strictly controlled capacity
expansion. The industry saw a sudden growth in the 80s. The industry
witnessed a steady growth of 14% leading to a peak volume of 1.9mn
vehicles in 1990.

In 1990, the entire automobile industry saw a drastic fall in

demand. This resulted in a decline of 15% in 1991 and 8% in 1992,
resulting in a production loss of 0.4mn vehicles. Barring Hero Honda, all
the major producers suffered from recession in FY93 and FY94. Hero
Honda showed a marginal decline in 1992.

The reasons for recession in the sector were the incessant rise in
fuel prices, high input costs and reduced purchasing power due to
significant rise in general price level and credit crunch in consumer
financing. Factors like increased production in 1992, due to new entrants
coupled with the recession in the industry resulted in company either
reporting losses or a fall in profits.

Evolution of Two-wheeler Industry in India:

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 Two-wheeler segment is one of the most important components of
the automobile sector that has undergone significant changes due to shift
in policy environment. The two-wheeler industry has been in existence in
the country since 1955. It consists of three segments viz. scooters,
motorcycles and mopeds. In India there are some MNC’s and Indian
company dealing in automobile sector. The main key players who are
dealing in this sector are Hero Honda, Bajaj, Yamaha, Honda, and TVS.
Hero Honda is the biggest player in this sector in India as well as in the
world and playing a very important role in two wheeler automobile
sector. Hero Honda, Bajaj and TVS are the Indian companies and
Yamaha & Honda are international automobile brand.

Bajaj is the first Indian two wheeler automobile company in

the market since 1945 with the name M/s Bacharj trading corporation
private limited. In 1959 M/s Bacharj trading corporation private limited
change its name as Bajaj Auto Ltd. Bajaj Auto obtains license from the
Government of India to manufacture two- and three-wheelers vehicles in
1959.

Hero Honda Motors Limited was established in 1984, as a

joint venture between India's Hero Group (world's largest bicycle
manufacturers) and Japan's Honda Motor Company. And created the
world's single largest two wheeler company and also one of the most
successful joint ventures worldwide. During the 80s, Hero Honda became
the first company in India. Over 19 million Hero Honda two wheelers
running on Indian roads today.

TVS Motors is the third largest company in the two-wheeler

industry with a market share of 16%. Infect, it is the only Indian company
8
without a foreign collaboration in the two-wheeler industry. When the
company opted out of the collaboration with Suzuki in 2002, many
believed that TVS was headed towards extinction. But the company
proved the doomsayers wrong and came out with a very successful `TVS
Victor'. TVS Motors Ltd. originally incorporated in 1982 to manufacture
two-wheelers in collaboration with Suzuki Motors of Japan, TVS was one
of the leaders in two-wheeler industry.

Yamaha Motor Corporation is the auto mobile

company of Japan (1953) which works in India since 1955 and providing
latest technology in India from last two decades. Yamaha Motor India
was incorporated in august 2001 as a 100% subsidiary of Yamaha motor
corporation, Japan

Honda motors of Japan is not a new name in the two

wheeler scenario in the country, they were in a tie up with the Firodias
owned Kinetic group. However in the late 90s they parted ways after
problems arose over issues like introduction of new models, advertising
expenditure, marketing strategies and other related issues. In the mid 80
Honda motors of Japan joined hands with the largest bicycle maker of
India the Hero cycles to create Hero Honda which in a couple of decades
or so have gone on to become the single largest motorcycle company in
the world. Though Honda has come on its own on the Indian market yet it
will be providing technological support to Hero Honda for the next ten
years. Thus presenting a unique situation in which the company will be in
direct competition with the company which it has been associated for
nearly two decades. Honda Motorcycles and Scooters India limited, a
100% subsidiary of Honda motor company Japan eventually entered the
Indian market with Honda Unicorn in 2004.
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 Market share of two wheeler automobile
sector
Hero Honda

35.60% 27.50% Bajaj Motors

TVS Motors

Yamaha
Motors
Honda Motors

Others
9.50% 16%
4% 7%

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 SEGMENTATION OF TWO WHEELER

A Two Wheeler Sector Sub-Segmenting in the three Segments.

1. Motorcycle
2. Scooter
3. Mopeds

Segment-wise Analysis of Indian Two Wheeler Market

Segment Description share in Share in CAGR

2001-02 2006-07
A1 Scooter with engine 5% 0% 33.99%
capacity less than
75 cc
A2 Scooter with engine 5% 10% 32.9%
capacity between
75-125 cc
(Scooterette)

A3 Scooter with engine 12% 1% -27.7%

capacity between
125-250 cc
B1 Motorcycle with 62% 66% 14.9%
engine
capacity between
75-125 cc
B2 Motorcycle with 5% 17% 44.8%
engine
capacity between
75-125 cc
B3 Motorcycle with 1% 1% 5.7%
engine
capacity between
75-125 cc
C1 Mopeds 10% 5% -2.7%

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 FINANCING RATIOS

Hero
Financing Ratio Bajaj Auto Honda Tvs Motors
12 months back 58% 71% 65%
Current 50% 59% 50%
Drop 8,00bps 1200bps 1500bps

The sentiment towards the two-wheeler segment has been badly hit in
FY08 due to the rise in interest rates and resultant loan defaults on the
part of the customers. With banks having been forced to slow down
lending for the purchase of two-wheelers, the incremental volume growth
of most motorcycle majors such as Bajaj Auto, TVS Motors and Hero
Honda has taken a beating.

Destination India
India is on every major global automobile player’s roadmap, and it isn’t
hard to see why:

 India is the second largest two-wheeler market in the world

The auto component industry has come of age and now forms an
important component of the Indian economy. In recent years, it has
grown more impressively, fetch double digit growth. More interestingly,
it has captured attention as well as business from leading auto makers of
the world. The industry plays a crucial role in the automobile sector.
Manufacturing vehicles typically involve assembling a large number of
components out-sourced from number of ancillaries or component
manufacturers. Competitiveness with quality as a theme has been the
watchword for the Indian industry and especially the auto component
industry ever since the Indian economy was opened up to the world in the
early 1990s. While economic revival, lower interest rates and better road

12
infrastructure are driving domestic demand for automobiles and,
therefore, components, increasing outsourcing by global automobile
majors is creating a huge export opportunity for Indian component
manufacturers.

Growth Prospects and Key Drivers of the Indian Two Wheelers Industry
The growth witnessed by the Indian two wheeler industry indicates
the growing demand for low cost personal transportation solutions
amongst the 300 million Indian middle class consumers. Despite this
spectacular growth rate, the two wheeler penetration (number of two
wheelers per 1000 inhabitants) in India remains lower than other Asian
countries. This fact provides an opportunity for continued growth in the
market. India has the lowest Penetration of two wheelers as compared to
countries like Taiwan, Thailand, Malaysia, Vietnam, Indonesia and
China. In the present scenario, growth in the two wheeler Industry will be
driven by several factors:

Rise in India’s Young Working Population

With the rising levels of per capita income of people, the Indian
two wheeler market offers a huge potential for Growth. This growth is
relevant in the light of the fact that 70 per cent of India’s population is
below the age of 35 Years and 150 million people will be added to the
working Population in the next five years. The number of women in the
urban work force is also increasing; this will lead to the Growth of
gearless scooters.

Rise of India’s Rural Economy and Growth in Middle Income

Households

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 The growth prospects of the Indian rural economy offer a
significant opportunity for the motorcycle industry in India. The
penetration of motorcycles amongst rural households with income levels
greater than US$ 2,200 per annum has already increased to over 50 per
cent. The current target Segment for two wheelers, i.e., households
belonging to the Income category of US$ 2,200–12,000 is expected to
grow at a CAGR of 10 per cent.

Greater Affordability of Vehicles

The growth in two-wheeler sales in India has been driven by an
increase in affordability of these vehicles. An analysis of the price trends
indicates that prices have more or less stagnated in the past. This has been
part of the marketing strategy adopted by the manufacturers to gain
volume, as well as conscious efforts adopted to bring down costs. The
operating expenses of leading manufacturers have declined by around 15
per cent in the last five years. With greater avenues of financing, the
customer’s capacity to own a two wheeler has improved.

Rapid Product Introduction and Shorter Product Life Cycle

The last five years have witnessed a sharp increase in new product
launches in the two-wheeler industry. It is estimated that close to 50 new
products have been launched by manufacturers during this period, filling
up all price points and targeted at various consumer segments.

Inadequate Public Transport Systems in most Urban Areas

14
 The economic boom witnessed in the country and the increased
migration to urban areas have increased the traffic congestion in Indian
cities and worsened the existing infrastructure bottlenecks. Inadequate
urban planning has meant that transport systems have not kept pace with
the economic boom and the growing urban population. This has increased
the dependence on personal modes of transport and the two wheelers
market has benefited from this infrastructure gap.

Challenges faced by the industry

Despite the high growth achieved in the past and the high potential
in the future, the two-wheelers market faces some challenges.

Rising Customer Expectations

The growth witnessed by the Indian two wheeler industry has
attracted a number of new entrants to the market and it is expected that
the Indian industry will become more competitive in the future. The
plethora of products introduced in the past has also raised customer
expectations with respect to reliability, styling, performance and
economy.

Environmental and Safety Concerns

The increasing demand for two wheelers will need to be managed
to address issues relating to overcrowding of roads. Another problem is
the insufficient infrastructure for inspection to ensure adherence to
emission norms. As the industry grows, it is important to regulate the sale
of used two wheelers in a more organised manner for which a mechanism
needs to be evolved. Unregulated sale of two wheelers, especially in the
rural areas, are likely to create issues related to emissions and safety of
vehicles.
Creation of Distribution Infrastructure
Leading companies need to ensure that on one hand they build
adequate infrastructure in terms of dealerships and servicing stations in
the urban areas and on the other ensure that their distribution
infrastructure also reaches the rural areas

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 RESEARCH METHODOLOGY AND
RESEARCH DESIGN:
The aim is to bring a clear picture of the procedure followed in the
study.

Sample Size:
Total sample size was 12.The response taken by interview as well
as questionnaire.
Sample frame:
Since the research was localized, the sample frame consisted of
local dealers from Bangalore

Primary Data: - The Primary Data is to be collected through

1. Questionnaire
2. Personal interview

Secondary Data:- The secondary data is to be collected from

dealers
service centers
Internal Reports
Documents
Journals & Magazines
Websites

Research Design: - The primary data and secondary data will be

studied and analyzed appropriately and interpreted to extract certain
facts .Whenever necessary statistical tools and financial tools like
tabulation, graphs will be used to present the findings effectively .

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 EXPECTATIONS OF THE COMPANY FROM
THIS SURVEY

This survey will help the two wheeler sector to evaluate their
product and the services they deliver. This will act as a tool for the
company to know their opportunities and threats in the market.
Expectations of the company from this survey are:

1) How to maximize the sales.

2) To improve the promotional activities.
3) Customize the product as per the customer’s needs.

LIMITATIONS OF THE STUDY:

 The study limited to the extent of available data.

 An in depth study might not be done because of time constraints.
 The study is restricted to Two-wheeler dealers in Bangalore city only.

Marketing Mechanism

Promotion

Promotion concerns the message the firm sends out to potential

consumers. It provides information and persuades people, it creates
awareness, stimulates demand and differentiates the product and
influences public behavior. Promotion won’t make a bad product that no
one wants a success; although the absence of promotion might htat a good
product is not successful, promotion includes all the activities or tools a
company uses to communicate or promote its product in the market.

17
Promotional tools or promotion mix

1. PERSONAL SELLING: It involves personal confrontation either by

phone or face, it is an expensive and time-consuming tool of
promoting the product.
2. ADVERTISING: It is defined as a paid non-personal communication
with a target (usually mass) market. It is cost effective and can reach a
large number of people. It can also be used for long term or short term
objectives.
There are various forms or mediums through which can advertise.

A. Broadcast Media:
 Television
 Radio
 Cinema
B. Print media:
 Newspapers
 Magazines
 Leaflets
C. Outdoor media:
 Posters and billboards.
PUBLIC RELATIONS AN PUBLICITY:

Public relations are an umbrella term and refer to the totality of the
organization’s behavior with respect to the society in which it operates.
The maybe regarded as good or bad and is reflected in the company’s
reputation and image.

18
3. SPONSORSHIP:
Sponsorship can be seen as a part of public relations and it is certainly
the case that some sponsorship goes on to generate positive publicity for
the organization.

4. DIRECT MARKETING:
It is an interactive system of marketing which uses one or more
advertising media to affect a measurable response at any locations.

5. DIRECT MARKETING INCLUDES:

 Direct mail.
 Telemarketing.
 Door to door selling.
 Direct response advertising: ‘phone now’ or ‘fill in the coupon
ads’
 Home shopping of various types.
Factors that guide a marketer’s decision in selecting a promotion mix:

a) Nature of product
b) Overall marketing strategy
c) Buyer readiness stage
d) Product life cycle stage
6. SPONSORSHIPS:
The company has not left any stone untamed in sponsoring the major
events both globally and domestically. The biggest of all is the
sponsorship of the “WORLD CUP” for which Hero Honda has the credit
of being the only two-wheeler company in the world to do so. Besides
this, the company has also sponsored events like “Master Golf”,
television academy awards, etc,

Thus the company has gained a lot of reputation by doing so.

19
7. DISCOUNTS/OFFERS:
The company has started giving discounts and other offers to the
customers on the purchase of a new bike, for instance, with the World
Cup offer, in which the consumer was to get a 1 gm gold coin with every
purchase.

But after all these schemes and benefits may be because of cut-throat
competition in the segment with heavyweight competition such as Bajaj,
kinetic, Yamaha, and TVS the company (HERO HONDA) officially
says:

“Our aim is to proactively and consistently deliver value to the

customer. We are giving back to the customer after becoming successful.
Most companies give discounts only when their products are not doing
well in the market. There is lost of competition in the segment, especially
from Bajaj. But the reason for Hero Honda’s success it that we are
consumer-focused while other companies such as Bajaj tends to be more
competitor-focused.

PROMOTION POLICY:

 Company gives advertisement in different media vehicles time to

tome. Like in TV. Magazines, newspaper, etc.
 Hero Honda also organizes free service camps every year.
 Hero Honda also takes art in trade fair.
 Hero Honda with the help of ICICI Bank provides loan to the
customers & also provide easy monthly installment scheme to
customers.
 Hero Honda gives huge commission to their dealers.

20
 MARKETING MIX PLAN
Demographic Segmentation

 Income: Our customer survey indicates that the segments

available for the Hero Honda bike are the people with monthly
income of Rs. 10,000 and above.

 Age: The main segmented group for the motorcycle are 18

years and above.

 Occupation: All kinds of people are taken into account.

Students, professionals, Govt. Servants, etc.

Geographic Segmentation: The potential customers are basically

from every regions of India.

Psychographic segmentation: People purchasing bikes are

very stylish, brand conscious.

Behavioral segmentation: This segmentation is done

considering user status, benefit wise.

Targeting

The proposed targeting people in the age group of 18 years and

above with a monthly income of Rs. 10,000 and above, who are
adventurous, enthusiasts and socializing and who are either
students or retired individuals or may be employed as
professionals, government servants or having their own business,
but mostly male.

21
Positioning
The image that Hero Honda creates in the mind of the
customers is the faith. The add shown by it says “Desh ka
Dhadkan”. That means it’s a member of the Indian family. It
represents the Indian culture and society.

The objectives can be achieved through the implementation of

suitable marketing strategy by the organisation. It is the marketing logic
that is formulated keeping in mind the needs of the consumers and also
strategies of the competitors. The 4 factors affect it are:

Product - The tangible offer to the market, which includes the product
quality, design, features, branding and packaging. The product is
perfectly designed and all the switch are well placed, which
provides a good riding condition

Price – Pricing is an important component of marketing mix of

firm. Determining the prices of different products of a firm is a
very difficult task of the marketing manager. Price denotes money
value of a product. It represents the amount of money for which a
product can be exchanged. In other words, prices represent the
money which the buyer pays to the seller for a product price
represents the exchange value of goods and services in terms of
money. Price is all around.

Price factor has very well been touched by the manufactures.

The manufactures (Hero Honda) are charging very comparatively
cheaper prices then their competitors.

22
The pricing strategies adopted by Hero Honda Ltd.

The management of a firm decide to fix the price at the

competitive level. This method is adopted by Hero Honda because
the bike market is highly competitive.

The amount of money that customer pays for the product. The price of the
product should commensurate with its perceived value. If does not, the
buyers will turn to competitors products.

Place – Includes the various activities the company undertakes to make

the product accessible and available to a large number of target
customers.

 There are about many regional offices located in major cities

through out the country.

 There are more than 10,000 dealers through out the country.

 For the product distribution the company distributes its products

through authorized dealers.

 The variety products are easily available in showrooms.

Promotion – The fourth marketing mix tool, includes all the activities the
company undertakes to communicate and promote its products to the
target market. It consists of advertising, sales promotion, public relations,
and direct and online marketing. Promotion represents all of the
communications that a marketer may use in the marketplace. Promotion
has four distinct elements - advertising, public relations, Personal selling
and sales promotion. A certain amount of crossover occurs when
promotion uses the four principal elements together, which is common in

23
any promotion. Advertising covers any communication that is paid for,
from television and cinema commercials, radio and Internet adverts
through print media and billboards. One of the most notable means of
promotion today is the Promotional Product, as in useful items distributed
to targeted audiences with no obligation attached. This category has
grown each year for the past decade while most other forms have
suffered. It is the only form of advertising that targets all five senses and
has the recipient thanking the giver. Public relations are where the
communication is not directly paid for and includes press releases,
sponsorship deals, exhibitions, conferences, seminars or trade fairs and
events. Word of mouth is any apparently informal communication about
the product by ordinary individuals, satisfied customers or people
specifically engaged to create word of mouth momentum. Sales staff
often plays an important role in word of mouth and Public Relations.

The various promotional activities adopted by the Hero Honda

Company.

The company has 100crore rupees for its promotional activities out
of which 75% is sponsored by the company and 25% from the
dealers.

They may sign a celebrity for its promotional activities in recent

futures.

 The company provides six free services to its customers in

comparison to its competitors.

 The company provides good services facilities to its customers

through dealer’s service station.

 Dealers encourage its customers by giving discount, providing

0% interest loan schemes, prices, coupons etc.

24
The various promotional activities adopted by Hero Honda
bikes are as follows

 Credit & finance schemes

 Free services to the consumers

 Advertisements on Televisions, Newspapers, Magazines

 Road Shows

 Free trials for the new consumers

RESULTS

 Companies data shows that the company produces

approximately 1, 11,000 vehicles per month. Out of which they
sales 60,000 motor cycles per month.

 The company has more demand of its product in western region.

 The company has 21 regional offices throughout India out of

which 10 contains training centers.

 The main objective of these offices is to pay emphasis to human

resource development and provide good services to its
customers.

Customer:

The results from customer survey are as follows:

1. Customers prefer because of their fuel efficiency.

2. Customers prefer because of their performance.

3. Customers prefer because they are value added product.

4. Customers also prefer because they are stylish.

25
 Marketing MIX in two wheelers

4’PS OF MARKETING OF HERO HONDA

PRODUCTS
Hero Honda, which has a technology tie-up with Japan's Honda
Motors, was currently discussing the feasibility of manufacturing scooters
for the Indian market, Mr. Munjal said. However, the company has a
binding clause with Honda's scooter manufacturing Indian subsidiary,
preventing it from making scooters till 2004.
Hero Honda Motors, India's largest motorcycle company, has
launched the premium segment 223cc motorcycle Karizma priced at Rs
79,000 (ex-showroom, Delhi). Many of the products which the company
has started with have been phased off. Now the existing products are
Karizma, Ambition, CBZ, Splendor, Splendor+, Passion, Passion Plus,
CD 100 SS, CD 100 and CD Dawn. Among these we are going to analyze
only three – (1) CBZ, (2) Ambition and (3) Splendor (4) Splendor +.

 CBZ

 Ambition

 Splendor

 Splendor +

The TCS study examines customer evaluations at three distinct ownership

periods: 1 to 6 months, 7 to 18 months, and 25 to 36 months. This helps
in understanding the differences in satisfaction during initial ownership,
in-warranty and post-warranty ownership periods. Satisfaction ratings
decline as the length of vehicle ownership increases. However, Hero
Honda Splendor is among the few models to maintain consistency across
the three ownership periods.

26
PRICING

Pricing is a important component of marketing mix of the firm.

Determining the prices of different products of a firm is very difficult task
of the marketing manager. Price denotes money value of a product. If
represent the amount of money for which a product can be exchange. In
other words, prices represents the money which the buyer pays to the
seller for a product price represent the exchange value of goods and
services in terms of money. Price is all around.

Price factor has very well been touched by the manufacturers. The
manufacturers are charging very comparatively cheaper price i.e. Rs
45000 approx. The pricing strategy of the company is very set. They price
their product according to the cost of production and also by keeping an
eye on the price of the competitors of that segment and demand of the
product in the market.

A pricing strategy that ensured an average manufacturer margin that

game dealer an adequate return and created a reputation with consumers
like “a company selling a good quality product at a reasonable price.
Industry focus them selves the low cost producer with good quality and
aimed to maintain the price advantage in every market of two wheelers.

Hero Honda group ensures an easily affordable pricing through excellent

transportation to common man. I fixes customer centric pricing that
provide customer total satisfaction.

Hero Honda’s pricing objectives are: List price, Discount, Financing

schemes, Credit terms, and Maximize profits

Hero Honda group ensures an easily affordable pricing through excellent

transportation to common man. It fixes customer centric pricing that
provides the customer with total satisfaction.

27
PLACE

HERO HONDA HAS direct contact with the dealers. There are no
middlemen involved. The dealers directly sell to the customers. The
channel is of 1st level which has only the dealers as the link between the
customers and the company.

What Does Customer Want?

The customers of Hero Honda, according to the Asst. Manager (Sales) are
very particular about the colors that Hero Honda offers in its wide variety
of scooters. He said that the customers are very much aware of their
purchase. Gone are the days when the sales people could influence the
buyer to buy a particular product. Almost 90-93% of the customer,
whoever comes to the showroom? Usually comes after he/she had made a
decision. So, the work of the sales person is less. The rest 7-10% have
some doubts with regard to the purchase of Hero Honda. It is here, where
the sales persons have to do some work in convincing the customers
about the scooter. The sales person in this regard conveys the customers
about the mileage, strokes and also the parameters that the customers
enquire.

How Is The Price Determined According To The Change?

Manufacturer, on the basis of the cost of production determines the price

and the factors like tax and others. Usually the sales tax on the two
wheelers is 8% but in Hero Honda it 4%. This is because Delhi
Government has found out that the pollution from Hero Honda is very
less due to the catalytic converter which every model of Hero Honda
have. The government has identified that by using the catalytic converter
Hero Honda is helping the environment which is a social cause. Hero

28
Honda Bikes not only have market in India, but also in abroad. To
maintain the differences in market of the different companies it takes the
help of the local manufacturers or the dealers outside for the distribution
of their scooters smoothly.

PROMOTION BY HERO HONDA

Advertisement, local events sponsorship and promotions and inviting a

prominent personality for the inaugural or first like delivery function
would contribute effectively in generating a wider local interest and
attention.

Hero Honda’s latest DKD –2 commercial its two brand starring its
Ambassador and India’s heart throbs, Hritik Roshan and Sourav Ganguly,
truly reflects the multi fact roles that today’s new generation plays. The
commercial reflecting the charisma and vibrancy of these two stars, takes
Desh Ki Dhadkan to dazzling new heights. It is young, colorful and
vibrant and represents the icons of contemporary times. And it will go a
long way in strengthening the leadership status of the product by the mile.

The new commercial is powerful film repeat with an impressive storyline.

The effort to pack the story, drama and impact in just 60 seconds was
phenomenal challenge itself. The idea was born itself. The idea was born
out of the very essence of “Hero and Stars”. Keeping in mind would
cause on the drama and impact it would cause on the audience. It is a
commercial packed with action where today’s heart throbs, Hritik and
sourav, are seen tackling new roles. The story being in a field adjoining a
hill with two cool men, Hritik and Sourav on Hero Honda bikes and
Passion respectively.

29
Both Sameer and Aditya win lifetime opportunity act with Hritik and
Sourav, the two star heartthrobs of millions in India and all four will be
seen in action in the new commercial DKD-2.

These are some of the Slogan for every product (Bike) and these are
following:-

CD-100 : Fill it, shut it, Forget it.

CD100SS : Tough and Rugged.

Splendor : Designed to Excel.

Street Smart : License to enjoy.

Passion : When style matters, Bike born in studio not in

factory.

CBZ : Motorcycling Unplugged.

Hero Honda : Leading the way.

30
 LIMITATIONS OF STUDY

As students, we tried our best to do this project but no research study can
be perfect because of many restrictions and constraints. There are some
limitations of this project which are as follows:
1. This research study is restricted to few states , i.e. Panipat,
Jalandhar, Jaipur and Gurgaon.
2. Sample size of 50 is too small to conduct any research.
3. The questionnaire contains only 15 questions which can be
insufficient to know exactly what is demanded by customers.

31
 ADVERTISING STRATEGY
Currently the number one company in terms of sales and has been
dominant in the two-wheeler segment since the past decade. Since the
inception of hero Honda, the company has been using television as a
major role for its publicity. Though hero Honda was dominant in sales it
lacked the skills of creating a spectacular ad till now. Though it had a vast
range of mobiles, its advertising strategy was not up to the mark. For its
publicity hero Honda has been using many famous celebrities like Saurav
Ganguly, the captain of Indian cricket team, Hritik Roshan and other
famous personalities as their brand ambassadors. Thus, hero Honda has
been spending huge amounts on its publicity.

ADVERTISING STRATEGY BAJAJ

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. Scooters were well known by
the brand name of Bajaj. Be it any scooter, one used to recognize it by the
brand name Bajaj. This was the identity a decade ago which the Bajaj has
still maintained. 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 everybody’s 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 had introduced an advertisement

which promoted all the different ranges it had, wherein they had shown

32
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 had revealing Indian culture had a great effect on
Indians and Bajaj was successful in most of its ads.

But recently, Bajaj had changed its brand logo along with its punch
line i.e. ‘Hamara Bajaj’ 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 didn’t have much effect on its brand image.

A year back, Bajaj introduced DTSi technology upgrading its

always successful PULSAR 150cc and 180cc. Though Bajaj had changed
its identity it still dominates for its
creativity in ads.

PULSAR 150cc (Definitely Male)

The concept of Definitely Male was well accepted by the people and
Bajaj came out with some astonishing ads. Though the DTSi technology
was new, people accepted it very well. It easily conveyed the message it
wanted to. The following picture strips conveys the advertisement:

33
 Getting on to his bike, a man While the biker cruises through
gets all set to make a move. As the city, some army men are out
he puts his helmet on, a message for their jog. Just before they
appears on the windshield, cross a road, a zebra crossing
'Partially sunny from 16:37 hrs.' forms ahead them and
disappears after them, while the
biker waits patiently.
Brand Image create By Bajaj

Brand image create by Bajaj through his pro bike showroom which
display his premium bikes range such as pulsar 220, Avenger, Pulsar 180
etc.

BAJAJ’s Pro
Bike Showroom

The Bajaj Prebaking showrooms will definitely be one of the integral

elements in his overall brand strategy to reinforce the image of Bajaj
being a manufacturer of quality performance motorcycles in the country.
It's the retail experience a dedicated biker feels when he or she steps into
34
a Probiking outlet. It's a new space they have created and there's a lot of
work to be completed.

BAJAJ PULSAR ‘DEFINATELY MALE’

Bajaj pulsar make an image of that there bike is only for guys. Through
his Definitely Male Campaign they shows behave of a young guys. This
Advertisement helped lot Bajaj to create brand positioning.

Chatting merrily, three girls One's dupatta skims over the

bikes and then gets stuck...
Walk by a line of motorbikes.

...making her turn in ... The logo, "Pulsar". MVO: Bajaj

Pulsar, definitely male
Consternation. She pulls it away

Slowly to reveal...

TRENDS IN TWO WHEELER INDUSTRY

35
 Breakup of the Industry by Segment
Mopeds
Scooters 5%
12%

Motorcycles
Scooters
Mopeds

Motorcycles
83%

Mopeds
Over the last 15 years, moped’s contribution in overall 2-wheelers
has declined significantly and now it remains a marginal category with
just one manufacturer for the product. Its contribution in the 2-wheelers
industry now stands at 5% and we expect that this segment will continue
to be marginalised. The only player in this segment is TVS Motor.

Scooters
Advent of fuel efficient motorcycles in the Indian 2-wheelers
industry led to decline of Scooters. However, over the last five years, it
has made a recovery and is emerging as a niche segment targeted towards
women commuters. One of the reasons for this is the increasing need of
mobility for the women commuters especially in the urban areas is due to
higher number of college going girls and greater participation of women
in urban work force. The product itself has gone for a complete revamp
and now this category mainly consists of gearless products. This segment

36
is now dominated by Japanese manufacturers with HMSI having the
leadership. HH, which is a late entrant in this segment, has also cornered
a sizeable market share in the scooter segment. Another development in
this segment is the launch of battery operated scooters. However, given
the high replacement cost for the batteries, this has remained a marginal
segment.

Motor cycles and bikes

Executive Segment

Executive segment is the largest motorcycle segment and this is the

stronghold of market leader HH. Competitors have tried to challenge HH
in this segment, however all such challenges have fizzled out over time.
With higher growth in economy segment, the contribution of this segment
had come below 50% in FY06. However over the last three years, it has
made a strong come back and now accounts for almost 60% of the
motorcycle share.

Premium Segment
This segment was creation of HH with 'CBZ'; however major boost to the
segment was
given by BJAUT through 'Pulsar' which has dominated the segment. HH
has remained a
marginal player in this segment and one of the reasons for this is presence
of HMSI in this segment. This segment remains a small segment in the

37
Indian market with contribution of around 23% to the motorcycle
industry. This is the performance segment and customers pay a premium
for the novelty. Hence constant upgradation in the product is a requisite
for success in this segment.

Dealers said the customer preference is shifting away from entry-level

(100cc) bikes towards executive and premium bikes. Bajaj Auto will be
the largest long-term beneficiary of this changing trend owing to its
strong dominance in the executive and premium segments.

38
 About “ BAJAJ GROUP”

Bajaj Company Ltd is one of the oldest and largest Indian

conglomerates based in Mumbai, Maharashtra. It was founded by
Jamnalal Bajaj in 1926. With over a hundred years of presence, the group
has diversified into a wide variety of business areas and is one of the most
diversified business groups of the country. This group comprises 34
companies like Bajaj Electricals, Bajaj Finserve Ltd, Bajaj Group of
Institutions etc but Bajaj Auto is its flagship company which is ranked as
the world’s fourth largest and two & three wheeler manufacturer. The
integrity, dedication, resourcefulness and dedication are characteristics of
the Bajaj group.

Bajaj Auto ltd :

It is a part of Bajaj Group. It is an Indian motorized vehicle-

producing company. Founded by Jamnalal Bajaj at Rajasthan in 1930s, It
is based in Pune, Mumbai with plants in Chakan (Pune), Waluj (near
Aurangabad) and Pantnagar in Uttaranchal. The oldest plant at Akurdi
( pune) is R&D house of the company now. The company is headed by
Rahul Bajaj. He has been the chief Executive Officer of Bajaj since 1968
and is recognised as one of the most outstanding business leaders in
India.He has been recognized as dynamic and ambitious as his
predecessors..

 Chairman : Rahul Bajaj

 Vice Chairman : Madhur Bajaj

 Executive Director : Sanjiv Bajaj

39
Bajaj Auto makes and exports automobiles, scooters, motorcycles and
auto rickshaws. Bajaj Auto is the world's third-largest manufacturer of
motorcycles and the second-largest in India. It has operations in 50
countries and it has become more successful in last four years after
successful introduction of models in the motorcycle segment. Now they
are not viewed as scooter manufacturers rather they are now known as
“Two wheeler Manufacturer” as they have introduced products like
scooterettes, scooters and motorcycles.

Market Research –

Market research is an essential tool in the marketing planning

process and plays a vital part in the business decision making process. Its
application is effective in all industrial, commercial and consumer
market. More importantly, the results that can be achieved from the
market research process are the real objective of the business plan. They
are the most significant element of the marketing mix to influence the
business decisions.
Research objective :
As a student, our objective of preparing this report in order to get
the practical knowledge of Bajaj Auto ltd. The real aim of this survey
was to get an idea about the following :
The main objective is to know
 Consumer Satisfaction towards Bajaj motorbikes.
 To know which model is more popular among customer
 To know which factor motivate the customer while purchasing the
particular bike.
 To know which of the competitive bike the customer hastaken into
consideration.

40
 To know the expectation s of the customers from the company.
Scope of Study :

To know the customer satisfaction towards Bajaj Auto Ltd. , we have

selected 50 consumers for survey which includes students,
businessmen,professionals etc.
To do this research, we prepared a questionnaire to be filled by the
customers and we discussed with 2-3 employees of the panipat branch of
Bajaj Auto ltd. In this way, we collected Primary data for our research
project.

41
Findings :

1. Which model of Bajaj is the most preferred?

Sales

Pulsor - 24%
Discover - 36%
Ninja - 24%
Plantina - 16%
KTM -0

Out of 50 people, maximum people(18) preferred Discover. The

reason can be balance match of price, mileage and comfort. 12 people
preferred Ninja, 12 preferred Pulsor and only 8 people liked to buy
Platina. This information tells that Customers did not like Platina much.
Company should focus where they are wrong in introducing their
products.

42
 2. If Price remained unchanged, then which factor in Bajaj bikes
people would like to change :-

Sales

Engine -24%
Comfort -8%
Appearance -36%
Mileage - 32%

We can see that there is trade off b/w two factors i.e. Horse power
of engine and the mileage. People try to get optimum combination of
these two in the bike. So Bajaj should try to focus on such combination in
which it can provide good horse power engine with significant mileage
and that will be appreciated by customers.

43
 3. On what factors, People decide to buy?

Sales

Internet -2%
Friends Referral -48%
Previous experience -24%
Fascinating advertisements
-8%

It is clear from the pie chart that approximately 50% people go with the
good word of mouth spread by loyal customers of the company. So if
company builds trust with their customers that benefit company a lot.

44
 4. TABLE :

Features 1 2 3 4 5
Post Purchase services 1 16 8
Comfort 1 9 13 2
Brand 1 6 6 12
Cost(on utility) 3 6 12 4
Safety 1 2 6 13 3
Repair & Maintenance 4 3 5 12 1
Total 5 11 48 64 22
1. From the above survey we come to know that the repair and
maintenance is the domain in which the company is not doing good,
the reason may be that company is laying focus on price of the bike by
using inappropriate/ cheap parts which ultimately increases the
maintenance cost of the vehicle, but few people are satisfied with
repair and maintenance. On doing personal survey we came to the
reason that the bikes which cost high prices like pulsar have low
maintenance charges and the segment which these bikes caters are
satisfied with it.
2. According to the survey brand has got good rating as Bajaj is a well
renowned name among people and it has created a brand value in the
market with most innovative product time to time moreover they have
formulated the image”hamara bajaj” by catering middle class income
group which has boosted its brand value in the market and the same
thing has been reflected in the survey conducted.
3. Now considering the comfort parameter of Bajaj bikes, as per the
survey ranking we can observe that the comfort which Bajaj bikes
provide to the customers are acceptable by them within the same price
bracket of bikes.
4. The cost which is the most important parameter which guides /rules
the purchase trends in the market. By considering the importance this

45
 factor the bajaj autos have always provided high utility to cost ratio
for their products and same has been seen in the survy ranking above.
5. Safety being the most important in any vehicle according to the above
survey people ranking on safety is quite good. So bajaj is taking care
of safety of its customers as this is a customer centric organization .

5. Are they satisfied?

Satisfaction

YES -80%
NO -20%

We can see that maximum people are satisfied with Bajaj Products.

On the basis of the information we have collected from all the sources,
we have done an STP, Marketing mix & strategies used by company and
SWOT analysis.

46
STP of Bajaj Auto Products -
Segmentation :-
Segmentation is a practice that seeks out pieces of the total market that
contain customers with identifiable characteristics, as defined by income,
age, personal interests, ethnic background, special needs, and so
forth.This company has segmented its market on the basis of
Demographics like Age, Gender, Income. They have mainly chosen
middle class people who want a bike which should be stylish and gives a
good mileage. They have offered bikes for both the segments- middle
class like Discover, Platina as well as upper middle class like Avenger
and Pulsor.
Targeting :-
After segmenting their market on the basis of income and age, they
targeted middle class youth from the age bracket of 25-35. A/c to our
study also, maximum number of customers of Bajaj Auto Ltd are middle
class youth. As we know that percentage of middle income groups is
increasing in our society so that’s why they have targeted this market
inorder to earn long time benefits and to get profitable growth.
Positioning :-
They have positioned themselves as “Two-wheelers for every Indian”. To
position themselves they have used slogan also – “Inspiring Confidence”.
For their all bikes they have different kind of positioning like –
Positioning of different products of Bajaj :
Ninja - Comfort

Discover - Performance

Pulsor DTS - Style

Platina - Economy

47
Marketing Mix –

It is important to manufacture the products but making consumer aware

of the products is equally important. The sum total of all the activities
done to deliver products to prospective consumers constitutes the
marketing. In other words marketing comprises of all the activities
involved in the determination and satisfaction of consumer needs at a
profit. T he combination of these marketing methods or devices is known
as the marketing Mix. It consists of four Ps :

1. Product

2. Place

3. Price

4. Promotion

Marketing Mix of Bajaj Auto ltd is as follows :

1. Product :

Product is the pivot around which all the marketing activities revolve and
without this everything else is of no use. The marketer’s job is to sell the
benefits or services built into physical products rather than just describe
their physical features. Product mix is the set of all the products line and
items that a particular server offers for sale to buyer the product mix
covers the following points : Product Variety, Design, Features, Brand
name, After Sales services, Warranties.

Objectives of Bajaj Auto Limited are to cater the market needs of

transportation by providing 2 wheeler and 3 wheeler vehicles so they

48
offer different kinds of products at competitive prices. Bajaj Auto Ltd
offers offerss the following products :

 Motorcycles: XCD, Platina, Discover, Pulsar and Avenger. Bajaj

also distributes motorcycles in India for other manufacturers, such as
the Kawasaki Ninja 250R, the Ninja 650R and new for 2012, the
KTM Duke 200. The upcoming model of Motorcycles is Bajaj XCD
125 sprint.

 Scooters

 Auto-rickshaws: RE-2 stroke(Diesel & CNG), RE-4 stroke(Diesel &

CNG) and GC Max – Diesel & CNG

 Cars : Bajaj RE60, Bajaj Lite concept.

At present, Bajaj occupies 25.4% of the total motorcycle segment. The

warranty period of Bajaj Auto Ltd.is one year, or twoyear
depending a Bajaj Auto Ltd. is policy. The company replaces all the parts
and movements period is over the retailer. According to our data,

Sales

Two -wheeler
Three wheeler
Passenger vehicles
Commercial Vehicles

49
2. Price :

As we know that Price is the only P which produces revenue. All

other Ps produces costs so it is very important and most sensitive P to
handle. THE PRICING OBJECTIVE of BAJAJ AUTO LTD :

1. Pricing Stability :-
Bajaj Auto Ltd. is one of the companies in scooter market in India which
call for long term interest of the business and aims at price stability.

2. To Increase the Market Share: -

The main objective of Bajaj Auto Ltd. is to get maximum share in scooter
market. So they have set their price at definite level by which they can
increase their market share. The main reason behind the cheapeners of 
Bajaj Auto Ltd. is most of the parts of the moped and bikes are
manufacture by company itself.

Prices of bikes of Bajaj Auto Ltd. :-

Bajaj Avenger 76,835
Bajaj Discover 43,000 to55,500
Bajaj Platina 34,000 to 39,900
Bajaj Pulsor 60,000 to 85,500

A/c to our study, The credit terms of  Bajaj Auto Ltd. are fairly
straightforward. The credit period allowed to the saler is 60 days. The
company also takes a deposit from the distributors against the dealerships
allocated to them.

3. Promotion

50
Promotion is a communicative activity whose main objective is to move
forward a product, service or idea in any channel of distribution.
Promotion includes –
 Advertising : Bajaj Auto ltd. has undertaken the activity
of advertising with a view to attain the following main objectives.
1.To enhance its sales.
2.To inform the market about their new product.
3.To explain the uses of product.
4.To inform about the price changes.
5.To maintain brand loyalty.
6.To maintain regular custom

Bajaj Auto Ltd uses visual demonstration in television to advertise its

products. Color is also an ingredient of advertisement which is used by
Bajaj. Its background color is Black which attracts customers. Bajaj Auto
ltd is advertising by their original and memorable slogan – “Inspiring
Confidence”. They advertise by newspapers ,magazines, television etc.

 Sales Promotion :

Bajaj Auto Ltd. spends too much on business promotion. These tools are
used for such purpose as gathering business leads, increasing and
recording customers. The Bajaj Auto Ltd. takes part in exhibition held up
or organized by some club or other association.

4. Place:

Marketing channels can be viewed as sets of interdependent organizations

involved in the process of marketing product or service available for use
or consumption.

51
 Bajaj Auto ltd has good channel of distribution to meet consumers
demand. They have also started to appoint the dealers in the rural areas in
order to cover the whole nation. Taking into account various factors such
as financial condition of the dealers, their reputation in the market,
location, provision after sales services etc. in order to select the dealers.
As far as warehousing is concerned, it is not the practice of the company
to provide warehousing facility to the dealers. Hence, to make
arrangement of godowns for the storage of two wheelers.

Marketing Strategies :

As we have explained the STP and marketing mix of Bajaj Auto Ltd., we
can say that most of the Bajaj models come loaded with the latest features
within the price band acceptable by the market. They regularly update the
low price bikes with the latest features like disk brakes, anti-skid
technology and dual suspension etc. On the basis of sales of all the bikes
and their future potentials, we can say that company has certain
marketing strategies for all products which depends upon the bracket in
which a particular bike falls.

BCG matrix for all bikes of BAJAJ–

HIGH Question Mark? Stars

Discover Pulsor 150 & 180cc
XCD 125
Pulsor 200 & 220cc
LOW Blade

Dogs Cows
Platina Avenger
CT 100 Kristal
Bajaj auto three wheeler 52
LOW HIGH

Depending upon the bracket of the bikes, this company applies different
strategies which are as follows:

1. Hold Strategy for Star ( Invest to protect) : This strategy is for

bikes who are high on business growth rate and high on market
share. For such products company
 Build Capacity Expansion
 Increase Investment
 Increase advertisement & promotion
 Increase Market reach
2. Question Marks – In this category those products are placed who
are high in business growth rate but low in market share. They are
generally products in early stage. So company try to build it by
investing intensely and turn into Star.
3. Hold & Harvest Strategy(Cows) : It includes products which are
low across Business Growth rate but high in market share.
Company continues to hold them in order to have high market
share. So company increases Advertisement and Promotion to
increase market reach for these products.
4. Dogs : It includes bikes which are low across both the dimensions
and they should be divested or liquidated.

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 SWOT ANALYSIS OF BAJAJ AUTO Ltd:
Based on the information we collected -
HREAT 
Strengths :
Highly experienced management
Excellent brand presence in India
Extensive R & D focus.
Widespread distribution network
High performance products across
all categories
Opportunities
 Double-digit growth in two-
wheeler market.
 Untapped market above 180
cc in motorcycles.
 The growing gearless trendy
scooters and scooter market.
 Growing world demand for
entry-level motorcycles
especially in emerging
markets.
Weaknesses
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)
Threats
 The competition catches-up
any new innovation in no
time.
 Threat of cheap imported
motorcycles from China.
 Margins getting squeezed
from both the directions
(Price as well as Cost)
 TATA Ace is a serious
competition for the three-
wheeler cargo segment.
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 Perceptual Mapping for Bajaj Auto Ltd
products on the basis of survey :
According to our data, major competitors of Bajaj are :

 TVS victor - #

 Honda - &

 Hero - $

 Mahindra & Mahindra - @

 Yamaha - ^

Their perceptual mapping is –

High Quality

& @
*

Low Price ^ High Price

Low quality
Where * is for Bajaj products.

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 ETHICS OF THE COMPANY:

This group is committed for continual improvement of safety,

occupational health & environment performance & compliance with
applicable safety, occupational health & environmental legislations,
regulations & other requirements. According to the employees of the
company, Quality, safety & service has been given as much
considerations as productivity, cost & delivery. 

1. Create a proactive SHE management system that addresses significant

safety, occupational health & environment aspects related to activities,
Products & services.
2. Identify potential risks/hazards & follow safe work practices by using
equipments, tools & personal protective equipments as applicable.
3. Promote SHE awareness amongst all who work for & on behalf
of Bajaj Auto Ltd. & motivate them to fulfill our commitments. They
pledge towards creating & preserving a cleaner, healthier & safe work
environment.
4. Transparency, fairness, disclosure and accountability have been central
to the working of the company, its management and its board of
directors.

The standing that the company enjoys in the corporate world has as much
to do with its reputation for
integrity and transparency as with its performance.

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REVIEW OF LITERATURE

57
 RECOMMENDATIONS :

From our study, we can give some recommendations to company to work

upon :
1. Maximum people have told us that there is problem with the engine
of the bikes so company should concentrate upon this thing.
2. 90% of people have said that their main competitor is Hero. So
they should try to find out where are they lagging. What an extra
bit they should do to overtake hero.
3. People are not much satisfied with their post purchase services so
Company need to improve upon this to get an edge over others.

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 CONCLUSION

From the analysis of BAJAJ AUTO LTD. It can be concluded that the
future of the company is bright. Bajaj Auto ltd. was the first company to
get such a great response from consumers for bikes before Bajaj bikes
were available but they were not expected by consumers so Bajaj auto
brought a revolution in the market of bike.
Bajaj auto ltd is having a good market share, consumers are brand loyal
and with the regular introduction of new model. Company is getting more
credit in the market

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 BIBLIOGRAPHY
MAGAZINES

 AME BUSINESS MAGAZINE.

 AUTO MAGAZINE.

 BUSINESS INDIA

 FINANCIAL EXPRESS

 BUSINESS LINE

 OVER DRIVE MAGAZINE.

WEBSITES

 WWW. INDIAINFOLINE.COM

 WWW. HEROHONDA.COM

 WWW.TVSMOTOR.COM

 WWW.ECONOMICTIMES.COM

 WWW.GOOGLE.COM

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