INDIAN TWO-WHEELER INDUSTRY:

A MARKETING PERSPECTIVE
AGENDA
Industry Background and Analysis
Market Segmentation
Hero Honda Motors : Analysis and Key
findings
Bajaj Auto Ltd: Analysis and Key
findings
Moving Forward
 Importance of two
wheelers in India
•Iconic symbol for mobility
and independence
•Shaping economic policies

Bajaj Chetak: One of the defining products of post-

independent India
INDUSTRY BACKGROUND
India: Currently the largest producer of two-
wheelers in the World (4 million units 2008-09)
Demand drivers:
◦ Inadequate public transportation system, especially in
the semi-urban and rural area
◦ Increased availability of cheap consumer financing in
the past 3-4 years
◦ Increasing availability of fuel-efficient and low-
maintenance models
◦ Changes in the demographic profile
◦ Steady increase in per capita income
INDUSTRY ANALYSIS:
PORTER’S 5 FORCES
Segmentation
Segmentation
Segmentation
4 P’s of Marketing
Product Classification &
Differentiation
Classification
◦ Engine Capacity
◦ Demographic parameters
Differentiation
◦ Fuel Efficiency
◦ Reliability
◦ Quality
Product Levels:
The Customer Value Hierarchy for two
wheelers
Potential Product The “Big” Bike

Customer Service
Augmented Product
Support, Warranty
Expected Product High Quality
and reliable 2-
Basic Product Two wheeler
wheelers

Core Efficient
Benefit Transportation
Product Line Stretching &
Filling
Stretching
◦ Upward Stretching
◦ CD R100 to Karizma
Filling
◦ Swamping the market
◦ Example: Splendor Plus, Splendor Nxg, Super
Splendor
 Pricing
Objective
◦ Product Quality Leadership-High perceived value,
Discount, Financing schemes
•Pricing Method
 Nine Price-Quality Strategies
High Price .. Low
High

Product ..
Quality

Low
Promotion: Hero Honda
Hero Honda Promotional
Campaign for Women
“Stretch that Litre. Save Petrol”
“We got a good thing Going!!”
BAJAJ
Hamara Bajaj
Bajaj : Distinctly Ahead
Place – Hero Honda
One Level Channel
More than 10,000 dealers throughout the
country
3 R's-- Reach, Research and Reliability
Place: Bajaj Auto Ltd.: Channel
Development in the East India
Core Competencies
BAJAJ AUTO LTD.:
Technologies
 BAJAJ AUTO LTD.:
Cannibalization

Platina Discover

•125cc motorcycle for just-over 100cc prices

•Features available so far only in the 150cc class
or above
•Rs 41,000 ex-showroom XCD is priced
between the Platina and the Discover
Questions Please ???

Alok Kumar Agrawal(0911077) 

Group 7
G Shri Chakravarthy (0911091)

Mischelle N Sangma (0911105)

R K Rajiv (0911120)

Tanujit Medhi
(0911134)