Bajaj

Electricals
 The FMCD Industry
• Fast Moving Consumer Durables are goods that do not wear out quickly, and therefore do
not have to be purchased frequently
• Indian consumer durables market is broadly segregated into urban and rural markets
• The sector comprises of a huge middle class, relatively large affluent class and a small
economically disadvantaged class

Source:
www.ibef.org
 The Company – Bajaj Electricals Ltd.
• Incorporated as Radio Lamp Works Limited under the
Indian Companies Act, 1913 in 1938
• The name of the Company was changed to Bajaj
Electricals Limited in 1960
• Bajaj Electricals business is spread across – Consumer
Products (Appliances, Fans, Lighting), Exports, and
EPC (Illumination, Transmission Towers and Power
Distribution)
• It has a market capitalization of Rs 3,054 Cr. FY19-20
with Net Revenue of Rs 5,030 Cr. FY19-20
Organizational Sales Structure
 STP Analysis
 Segmentation  Targeting  Positioning
o Consumers in Urban o Middle class and o A brand offering all sorts of
and Rural Areas premium sector white goods, consumer durables
o Affordable by o Customers above the age products under one brand name
everyone/Economic group of 20 years o Quality products with great trust
o Enhancing quality of life and
bringing happiness with
sustainability
PEST Analysis
Political –
• Customs Duty Relaxation
• Increasing Liberalisation, Favorable
FDI Climate
• Simplified Labor Laws and
Technology Upgradation Fund
Scheme
• Setting up of EHTPs
Economic –
• Increasing Demand For Consumer
Durables In India
• Shortened Product Replacement
Cycles & evolving lifestyle
• Growth in demand from rural and
semi-urban markets
• Growth in online retailing
Social –
•Employee Volunteering Programmes
•Diversity and Inclusion
•Community Initiatives are taken to
address social and environmental
challenges
•Long-term business goals aligned with
sustainable development
Technological –
• Modern IT architecture
• Rapid introduction of new digital
technologies
• Invested in Starlite Lighting for
manufacturing energy-saving lamps
(CFL).
• International tie-ups to deliver
technologically advanced products
Product Consumer Products Group
•The segment contributed 62% of the total revenue, amounting to Rs 3,084.62 Cr in FY 2019-20

28% share •Growth of 13% in FY 2019-20, against an estimated industry growth of 6-7%
revenue 27% share
FY19-20 revenue •Products with unique features in Anti-bacterial Fans, Anti-bacterial Air Coolers, CRI Plus LED,
FY19-20
IoT Cooler, Travel Irons and Water Heaters

Morphy Richards – Premium Home and Kitchen Appliance Brand

Includes over 22 product categories, well-established Pan-India Service network in over 450 cities

•Fan segment saw growth in sales value at double the speed of the industry, for sub economy ceiling
fan
25% share 14% share
revenue revenue
FY19-20
•Company revamped its portfolio in the premium segment and introduced value-added products in
FY19-20
the economy range

•The B2C business saw a significant value growth of ~9% in lighting segment while industry and all
other key competitors registered a de-growth in value.
Place & Distribution Strategy

 Bajaj Electricals has 2 well-established

manufacturing units Maharashtra near pune.
 Strong supply chain and distribution network
with 500 Distributors for CP Trade RREP and
2.20 lakhs Retailers covering 679 districts.
  Exclusive showrooms called ‘Bajaj World’ 
 E-commerce Platform-Amazon, Flipkart, Paytm
& Snapdeal.
Distribution Strategy

 Go to Market Strategy
• Range Reach Expansion
Programme (RREP)
• Extract & Expand
• Commercialisation
• Retailer Bonding program
Pricing
 Bajaj Electricals follow Competitive Pricing Strategy.
 The consumer products have competitive pricing strategy in its
marketing mix to get the required market share in terms of rising
competition among rivals.
 They also offers discount and other incentives in terms of service for
attracting larger customer base.
 It has also some of the products sold at premium price based on the
value offerings it provides to the consumer base.
Promotions

 Television media and print

advertisement
 Social media campaign pledging
to combat Covid-19
 Emotional connect with the
consumers
 #Indians_Who_Shine campaign
dedicated to those brave ones
who brighten our lives by
protecting the nation to promote
their LED segment.
 Father’s and Mother’s Day
campaign
#Ghar_Sambhaalo_Maa_Jaise
SWOT Analysis
Strengths – Weaknesses –
• Diversified into many segments • Less penetration across
and tapping sophisticated markets international market
• Market leadership and price • Market share is limited due to
competitiveness intense competition
• Availability
• Strong financial performance
• Brilliant Service
Opportunities –
• Expansion into the Global Market
• Growth in its product line could
increase demand
• Focus on Technology Intensive and
Eco-Friendly Products
• Population growth and urbanization
is increasing the demand
Threats –
• Maturing categories, products,
or services
• Competition from other firms
• Cheaper technology
BCG Matrix

STARS QUESTION MARK

• Juicer Mixer Grinders • Chopper and hand blenders
• Food processors • Lighting
• Fans • Electric cooker
• Irons

CASH COW DOG

Recommendations

Regional O2O
language under
TVCs REEP

Increase
In- Approach
COVID-19 Impact house bloggers and
manufac Influencers
turing

Promote
Increase
electric brand Morphy
kitchen awarene Richards
appliances ss