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Marketing Strategies of Bajaj Auto

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Marketing Strategies of Bajaj Auto Marketing Strategies of Bajaj auto EXECUTIVE SUMMARY We identified Bajaj Auto as the marketing company of our choice for the followingproject. Bajaj Auto group was founded in the year 1945 and has been among thefront-runners in the motorcycle industry ever since. This very fact talks volumesabout the company since only the best of the firms survive such a long time atthe top. During the 60s, 70s and 80s there was a 10-year waiting period for itsproducts. The company only had to produce its quota. Marketing or sales wasnot too much of an issue for them. Also the company‟s owner was infamous for being part of the anti-liberalization lobby called Bombay Club. However the firmfaced a major crisis in the 90s and the early y ears of the new century due toincreased competition from both foreign and domestic markets. However Bajajcame out only stronger with the competition and hardly depended on foreign helpon this account. And the product, which did this turnaround possible, was Pulsar.P uls ar is exemplifies the fighting spirit of Bajaj. It is a classic example of anIndian company of the pre -liberalization era, adapting itself to the changingscenario and coming out on tops. Another interesting fact is how liberalizationand embracing the change can work wonders for a firm, which was one of themost skeptical of liberalization policies of the Indian government. Marketing Strategies of Bajaj auto The following project is a detailed marketing analysis of the product Bajaj autoand its variants in the two-wheeler market. The project first of all focuses on themarketing history of Bajaj auto and its SWOT analysis. Various internal and external factors were taken into consideration while analyzing. Then we go on toanalyze the consumer behavior for Pulsar regarding purchase, decision makingand buying roles. The third section focuses on the competitor analysis of Bajajauto, their various strategies, activities and status to understand Pulsar‟s competitive scenario. Help has been taken for anal ysis from some consumer surveys from prominent sites and a small survey done by us.The project gives insights into various other topics. It talks about the shift in thetrend towards motorcycles in the 90s. It also talks about the process of liberalization and how it affected Bajaj as a company. The change in the marketing strategies of Bajaj according to the times, how Pulsar succeeded inachieving a turnaround for Bajaj are also discussed. The competitor analysis of Pulsar gives an understandi ng of the two- wheeler market as a whole, how it isfull of choices for customers and how many more companies are vying to enter it. Marketing Strategies of Bajaj auto Table of Contents EXECUTIVE SUMMARY................................................................................2SECTION – I................................................................................................51.HISTORY AND SWOT ANALYSIS OF BAJAJ AUTO..................................51.1INTRODUCTION........................... ....................................................51.2WHY BAJAJ AUTO?...........................................................................61.3SHIF TING TRENDS TOWARDS MOTORCYCLES.................................71.4MARKETING HISTORY................... ...................................................81.5SWOT MATRIX OF BAJAJ AUTO.......................................................10 SECTION – II.............................................................................................132.ANALYSING CONSUMER BEHAVIOUR IN TERMS OF BUYING ROLES, DECISION MAKING PROCESS AND KIND OF PURCHASE BEHAVIOR..........132.1BUYING ROLES..............................................................................14 2.1.11 50cc............................................................................................152.1.2180CC ...........................................................................................182.1.3200cc and 220cc...........................................................................18 2.2CONSUMER CENTRIC STEPS BY BAJAJ............................................21 SECTION – III............................................................................................243.COMPETITOR ANALYSIS, THEIR ACTIVITIES, STATUS AND STRATEGIES 243.1HERO H ONDA & HONDA MOTORS.................................................25 3.2TVS MOTORS.................................................................................27 TVS motorcycles product segment includes: ...................................................283.3YAM AHA MOTORS.........................................................................293.4FOR EIGN COMPETITORS................................................................31 SECTIO N – IV............................................................................................34 Marketing Strategies of Bajaj auto 4.Survey Analysis and Recommendations...........................................345.CONCLUSION..................... ...............................................................386.R EFERENCES............................ ........................................................39 REFERENCES SECTION – I1.HISTORY AND SWOT ANALYSIS OF BAJAJ AUTO1.1INTRODUCTION ajaj Auto is a major automobile manufacturer based in Pune, India. It isone of the major producers of two wheelers and three wheelers andranks 4 th in the world in terms of two wheeler production. It is also planning a foray into the 4-wheeler market. The firm in its initial years was intomanufacturing scooters and auto rickshaws. It also enjoyed the lion‟s share of the Indian two wheeler markets for a long duration of time. In the late Eightiesand early nineties the market made a major shift in the type of vehicles on offer.New competitors like Yamaha and Hero -Honda came out with motorcycles,which were more powerful, better, looking and easier to handle. As such the consumers got attracted to motorcycles than scooters. Bajaj was slow to respondto the changing dynamics of the market and it‟s market share started decliningquickly. Bajaj entered into a partnership with the Japanese bike manufacturer Kawasaki to produce motorcycles for the Indian market. Still, it failed to garner any major share of the market. In the year 2001, Rajiv Bajaj, the scion of theBajaj family came up with the idea of developing a powerful, stylish, rugged motorcycle, which would be priced lower than the existing products. And thusPulsar was born. It came out in two variants 150cc and 180cc. B Marketing Strategies of Bajaj auto 1.2WHY BAJAJ AUTO? Bajaj Auto sta rted in the year 1945. It started selling imported 2 & 3 wheel er vehicles in 1959. They subsequently obtained a license to produce 2 & 3 wheelers. During the 60s, 70s and 80s there was a 10-year waiting period for itsproducts. The company only had to produce its quota. Marketing or sales wasnot too much of an issue for them. Also the company‟s owner was infamous for being part of the anti-liberalization lobby called Bombay Club.In the 80s and the 90s many foreign players like Honda, Yamaha etc. came intoplay in Indian markets and played a significant role in easing out some of the Indian brands. Bajaj is probably the only Indian brand to emerge stronger out of the competition by developing products on its own.Pulsar it exemplifies the fighting spirit of Bajaj. It is a classic example of an Indiancompany of the pre-liberalization era, adapting itself to the changing scenarioand coming out on tops. Bajaj changed its product strategy when it started concentrating on the bike market. Pulsar was the first indigenously developedmotorcycle by Bajaj for the Indian bike market and was the reason for the turnaround of Bajaj fortunes. Marketing Strategies of Bajaj auto Many Indian companies, in order to acquire the technical know how entered into joint collaborations with foreign companies e.g. Hero motors with Honda, LMLwith Vespa, Bajaj with Kawasaki etc. Though Bajaj depended on Kawasaki for itsinitial forays into the Bike market, now it has disassociated itself from Kawasaki and has emerged as a truly Global Indian brand.Another interesting fact is how liberalization can work wonders for a firm, whichwas one of the most skeptical of liberalization policies of the Indian government.So Pulsar as a whole has been a brand, which has brought major changes notonly in the Indian Motorcycle Industry but also in the Bajaj business empire. 1.3SHIFTING TRENDS TOWARDS MOTORCYCLES First let us analyze the change in the preference of the Indian customers in thetwo-wheeler industry. In the 90s with growth in the average income of the Indianmiddle class – the primary consumers of the two - w h e e l e r market and the increasing number of choices in the motorcycle segment, there came a gradualincrease in the sales of motorcycles. There were many other factors for this • Advanced technologies in the bikes • Larger wheel – base there fore easy to navigate rough Indian roads • Higher mileage, less maintenance cost, tougher.The following table shows the increasing share of motorcycles in the Indian market in the 90s. Marketing Strategies of Bajaj auto This factor also played an important role in the success of Indian bikes like HeroHonda Splendor, Bajaj auto. 1.1MARKETING HISTORY Bajaj entrusted the responsibility of communicating the brand value of Pulsar through media campaigns to O& M who came out with the brilliant ad of “DEFINITELY MALE”. Pulsar was initially targeted to 18-24 age group. The youthwanted powerful, stylish bikes, which would suit
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