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 companys owner was infamous for being part of the anti-liberalization lobby called Bombay Club. However the firm f a c e d a major crisis in the 90s and the early y ears of the new century due t o increased 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 u l s a r i s ex emplifies the fighting spirit of Bajaj. It is a classic example of anIndian company of the pre -liberalization era, adapting itself to the c h a n g i n g scenario 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 them a r k e t i n g h i s t o r y o f B a j a j a u t o a n d i t s S W O T a n a l ys i s . V a r i o u s i n t e r n a l a n d 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 Bajaja u t o , t h e i r v a r i o u s s t r a t e g i e s , a c t i v i t i e s a n d s t a t u s t o u n d e r s t a n d P u l s a r s competitive scenario. Help has been taken for a n a l ys i s f r o m s o m e c o n s u m e r 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 thet r e n d t o w a r d s m o t o r c y c l e s i n t h e 9 0 s . I t a l s o t a l k s a b o u t t h e p r o c e s s o f liberalization and how it affected Bajaj a s a c o m p a n y . T h e c h a n g e i n t h e 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 twowheeler 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 . H I S T O R Y A N D 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 A U T O . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 0 SECTION

II.............................................................................................132 . A N A L Y S I N G C O N S U M E R B E H A V I O U R I N T E R M S O F B U Y I N G R O L E S , DECISION MAKING PROCESS AND KIND OF PURCHASE BEHAVIOR..........132 . 1 B U Y I N G R O L E S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 4 2.1.11 50cc.......................................... ..................................................152.1.2180CC ...........................................................................................182.1.3200cc and 220cc...........................................................................18 2 . 2 C O N S U M E R C E N T R I C S T E P S B Y B A J A J . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 SECTION III............................................................................................243 . C O M P E T I T O R ANALYSIS, THEIR ACTIVIT IES, STATUS AND S T R A T E G I E S 243 . 1 H E R O H O N D A & H O N D A M O T O R S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 5 3.2TVS MOTORS.................................................................................27 TVS motorcycles product segment includes: ...................................................283 . 3 Y A M A H A MOTORS.........................................................................293.4FOR EIGN C O M P E T I T O R S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1 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 . 1 I N T R O D U C T I O N ajaj Auto is a major automobile manufacturer based in Pune, India. It iso n e o f t h e m a j o r producers of two wheelers and three wheelers andranks 4 th i n t h e w o r l d i n t e r m s o f t w o w h e e l e r p r o d u c t i o n . I t i s a l s o planning a foray into the 4-wheeler market. The firm in its initial years was intomanufacturing scooters and auto rickshaws. It also enjoyed the lions 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.N e w c o m p e t i t o r s l i k e Y a m a h a a n d H e r o - H o n d a c a m e o u t w i t h m o t o r c yc l e s , w h i c h w e r e m o r e p o w e r f u l , b e t t e r , l o o k i n g a n d e a s i e r t o h a n d l e . A s s u c h t h e consumers got attracted to motorcycles than scooters. Bajaj was slow to respondto the changing dynamics of the market and its market share started decliningquickly. Baj aj entered into a partnership with the Japanese bike manufacturer Kawasaki to produce motorcycles for the Indian market. Still, it failed to garner a n y m a j o r s h a r e o f t h e m a r k e t . I n t h e ye a r 2 0 0 1 , R a j i v Bajaj, the scion of theBajaj family came up with the idea of developing a p o w e r f u l , s t yl i s h , r u g g e d 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? B a j a j A u t o s t a r t e d i n t h e ye a r 1 9 4 5 . I t s t a r t e d s e l l i n g i m p o r t e d 2 & 3 wheeler v e h i c l e s i n 1 9 5 9 . T h e y s u b s e q u e n t l y o b t a i n e d a l i c e n s e

t o p r o d u c e 2 & 3 wheelers. During the 60s, 70s and 80s there was a 10-year waiting period for itsproducts. The company only had to produc e its quota. Marketing or sales wasnot too much of an issue for them. Also the companys 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 scenarioa n d c o m i n g o u t o n t o p s . B a j a j c h a n g e d i t s p r o d u c t s t r a t e g y w h e n i t s t a r t e d concentrating on the bike market. Pulsar was the first indigenously developedm o t o r c y c l e b y B a j a j f o r t h e I n d i a n b i k e m a r k e t a n d w a s t h e r e a s o n f o r t h e 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, LML with 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, which was 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 Indianm i d d l e c l a s s t h e p r i m a r y c o n s u m e r s o f t h e t w o - w h e e l e r m a r k e t a n d t h e 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.T h e f o l l o w i n g t a b l e s h o w s t h e i n c r e a s i n g s h a r e o f m o t o r c yc l e s i n t h e I n d i a n 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 b r i l l i a n t a d o f DEFINITELY MALE. Pulsar was initially targeted to 18-24 age group. The youthw a n t e d p o w e r f u l , s t yl i s h b i k e s , w h i c h w o u l d s u i t t h e i r p o c k e t s a n d g i v e t h e m good mileage. The higher powered bikes in the market e.g. RE, CBZ were toopricey, high on maintenance or low on mileage.What O&M needed to do was to attract attention of the youth, more so since thetarget market for the product was very niche. And the punch line DEFINITELY MALE did fire the youths imagination. It was very novel of O&M to come up withthe idea of associating a motorbike

with Gender. Pulsar got positioned as the He-B i k e o f I n d i a . T h e p r o d u c t w a s u n q u e s t i o n a b l y a s u c c e s s a n d B a j a j s t a r t e d increasing the breadth of its target market. Marketing Strategies of Bajaj auto Bajaj also refused to rest on its laurels. It constantly kept working on upgradingthe product and came up with DTSI (Digital Twin Spark Ignition) version of theB i k e i n t h e y e a r 2 0 0 5 . T h e n e w t e c h n o l o g y h e l p e d t h e b i k e t o g i v e b e t t e r mileage. Also the styling was changed stylized headlights, tail lights etc. Thist i m e a r o u n d , L e o B u r n e t t m a n a g e d t h e a d c a m p a i g n . T h e y c a m e o u t w i t h t h e new punch line DIGITAL-BIKING keeping in consideration the new technologyDTSI. The mega -successful DEFINITELY MALE slogan was given away with. T h i s , t h o u g h i t c o m m u n i c a t e d t h e i n t r o d u c t i o n o f t h e n e w t e c h n o l o g y t o t h e consumers, missed the trick in positioning it as the classic HE-BIKE.W e h a v e e x a m p l e s f r o m B i k e M a n u f a c t u r e r s w h o h a v e d e v e l o p e d a u n i q u e theme for their Bikes and kept their positioning constant over a long duration of time earning unparalleled Brand loyalty and exclusivity such as Harley Davidson& Royal Enfield.However Pulsar had been so well established as a Product and its pricing anddistributio n were so strong that even indifferent promotional campaigns couldhardly make too much of a difference to sales figures. In continuation of Bajajsstrategy to come up with better products, the upgraded version of pulsar waslaunched in 2007 with digital console display and LED taillights, which were a novelty in the Indian market.Subsequently Bajaj came up with newer variants of Pulsar 200cc & 220 cc. The200cc bike had a lot of innovations like oil cooled engine, twin rails etc. The bikew a s l a u n c h e d w i t h a F R E E B I K I N G c a m p a i g n s h o t i n C u b a b y

O&M. TwoBikers riding Pulsar 200cc bikes were shown zip -zapping t h e i r w a y t h r o u g h buildings and crowded streets of Havana. Bajaj tried to communicate that it doesn o t m a t t e r w h e r e yo u a r e b i k i n g b u t h o w yo u a r e b i k i n g , w h e n you are atop a Marketing Strategies of Bajaj auto Pulsar 200cc. Though the message might have been a bit complex for the typicalIndian motorcycle owner, the freshness of the ad really popularized the bikes.The latest in the series of Pulsar ads is the PULSARMANIA one, where 4 bikersperform varied stunts atop Pulsar bikes. They have been very popular and aim toextend the macho image of Pulsar bikes further. 1.2SWOT MATRIX OF BAJAJ AUTO SWOT Analysis Let's analyze the position of Bajaj in the current market set-up, evaluating itsstrengths, weaknesses, threats and opportunities available. Strengths: Highly experienced management.Product design and development capabilities.Extensive R & D focus.Widespread distribution network.High performance products across all categories.High export to domestic sales ratio.Great financial support network (For financing the automobile) Marketing Strategies of Bajaj auto High economies of scale.High economies of scope. Weaknesses: Hasn't employed the excess cash for long.Still has no established brand to match Hero Honda's Splendor in commutersegment.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. Opportunities: Double-digit growth in two-wheeler market.Untapped market above 180 cc in motorcycles.More maturity and movement towards higher-end motorcycles.The growing gearless trendy scooters and scooterette market.G r o w i n g w o r l d d e m a n d f o r e n t r y - l e v e l m o t o r c y c l e s e s p e c i a l l y i n e m e r g i n g markets SECTION II2.ANALYSING CONSUMER BEHAVIOUR IN TERMS OFBUYING ROLES, DECISION MAKING PROCESS ANDKIND OF PURCHASE BEHAVIOR Marketing Strategies of Bajaj auto AJAJ PULSAR has been one of the leading brands of motorcycles fromthe BAJAJ stable for the last 7 years or so. Right from its inception in t h e y e a r 2 0 0 1 , t h e b i k e h a s b e e n t h e m a r k e t l e a d e r i n i t s s e g m e n t despite stiff competition from many others including one of the biggies who had the first mover advantage. It has strived to be ahead of its competitors, through am i x o f p r o d u c t a n d m a r k e t i n g innovation, solid performance bikes and good m a r k e t i n g s t r a t e g i e s . T h r o u g h o u t t h i s i t h a s m a i n t a i n e d a l o y a l b a s e o f supporters, which have clung to it for years. Marketing management of PULSARhas been highly successful as it has been able to acquire, retain and grow its customer base every year. B

I n t h i s s e c t i o n w e a r e g o i n g t o a n a l yz e t h e b e h a v i o r o f c o n s u m e r s o f B A J A J A U T O i n t e r m s o f t h e i r b u yi n g r o l e s , d e c i s i o n - m a k i n g p r o c e s s a n d k i n d o f purchase behavior. 2 . 1 B U Y I N G R O L E S

Marketing Strategies of Bajaj auto In the 70s and 80s Frederick E. Webster, Yoram Wind and Thomas Bonomad e v e l o p e d t h e s i x b u yi n g r o l e m o d e l o f t h e c o n s u m e r . A c c o r d i n g t o t h e m a buying centre has members who play the following role in purchase process. 1. INITIATOR:Identifies the need. 2. INFLUENCER:influences the views of buyers 3. DECIDER:the one who ultimately decides about buying 4. BUYER:holds the formal authority to select 5. USER:consumer of the product 6. GATEKEEPER:controls information or access to decision makers.T h o u g h t h e model involved industrial buyers, we can take it as a r o u g h foundation for analyzing the buying roles of consumers. Marketing Strategies of Bajaj auto Lets do the analysis on the basis of the models or variants in which PULSAR isavailable.

1.1.1150cc The target customer base of the PULSAR has always been the age group of 20-3 5 . T h e 150cc model costs about 60,000 INR and is the cheapest of a l l PULSAR models.So its target base is also the college going kids and young office going peoplemostly.In the case of the college public, the INITIATOR & USER becomes the collegegoing kid. But the final BUYER & DECIDER in most of the cases are the parentsof the college going kids. Since Pulsar is a brand which gets very good publicityby word of mouth, the INFLUENCER in this case is the kids friends, social circle,magazines, girlfriends etc.In the case of the office going people, the person using it only plays most of theroles. Only the co-workers, friend circles to a large extent and family to a small extent plays the role of INFLUENCER.L e t u s now look at the factors which generally influence the decision m a k i n g process of consumers in buying 150cc pulsar.For the college going student, the major factors, which influence him in buying aPULSAR, are The looks and styling very international and contemporary according to many. It brings about a macho image people feel it heightens their esteems among the group especially girls. Marketing Strategies of Bajaj auto Peer influence Power & acceleration higher than the entry segment bikes.For the parents, who are the final buyers, the factors, which have been observedto be influencing, are

 BAJAJ Its Brand name, the feeling of stability and reliability associated with it. Extensive service center network and dealership locations across t h e country, so less maintenance worries. Could be used as a family bike also. There have also been instances when the parents might have owned aBajaj scooter earlier and is loyal to brand Bajaj in his own right.For the office going people the major factors which help in decision making, havebeen observed to be Sense of style and power along with highest mileage in the segment. Low maintenance. High resale value etc.One of the recent factors influencing the buying has been observed to be The initiation of BAJAJ into auto -finance through its company BAJ AJAUTO FINANCE LTD. (BAFL). It has been coming up with s o m e v e r y innovative offers like very little down payment and 0% interest loans.There has been observed, an increase or spurt in the sales figures in general during College starting months June- August.

Marketing Strategies of Bajaj auto Launch of a new improved version e.g. when the DTSI model w a s launched.As concerned, buying intervals, most of the bikes are used for an average of 34years and many purchases are repeat purchases. The sale of the 150cc bikeshas been observed to be the most among all brand offeri ngs (e.g. 180 cc, 200cc) of PULSAR not only due to its pricing but also due to the mileage factor.E n t r y o f g o o d competitor products e.g. UNICORN, HUNK etc. has h a d temporarily reduced the sales of PULSAR 150CC in the past but none has beenable to give a long hard competition to PULSAR.A greater portion of the buying payments has been met through EMI Loans, sothe rise of interest rates has affected the sales a bit. Also Bajaj might need toc o m e u p w i t h n e w s t r a t e g i e s t o c o u n t e r t h e d u a l c h a l l e n g e p o s e d b y r i s i n g inflation and interest rates to sustain sales of Pulsar 150 cc. 1.1.1180CC It is a higher end bike in terms of features and powers. Accordingly the cost alsoincreases to about 65000 INR. The fuel costs also increase proportionately. So the target customers of BAJAJ for this level of motorcycles are the people a littlehigher in the income level E.g. Managers, executives, rich college kids etc.T h u s t h e D E C I D E R , B U Y E R , U S E R , I N I T I A T O R r o l e s a r e p l a ye d b y t h e e n d user himself. The people who prefer the 180cc over the 150cc are mostly those with a passion for biking, power lovers, bike enthusiasts etc.BAJAJ also targets this section of customer through its ads focusing on the joy of riding like PULSARMANIA, Free Biking etc. Marketing Strategies of Bajaj auto

Let us look at the factors influencing the decision making of t h i s g r o u p o f customers. They are This segment is relatively new with very less competitors. So prospectivebuyers more or less gravitate to the available choices PULSAR beingthe prominent among them. Influence from the peer group and friends. Brand equity of PULSAR and word of mouth publicity. P e o p l e b u yi n g i n t h e s e s e g m e n t s a l s o t e n d t o g e t i n f l u e n c e d b y o n l i n e reviews available on the Internet.A l s o s i n c e p e o p l e b u yi n g i n t h i s c a t e g o r y p l a n t h e i r p u r c h a s e o v e r a l o n g e r period of time and are relatively better off financially, this section of bikes has observed lesser proportion of EMI based purchases. 1.1.1200cc and 220cc These bikes have been recent introductions to the Pulsar Brand. Their popularityis also steadily increasing at par with their other counterparts. They are oil-cooledm o d e l s , w h i c h give better performance especially when the bike is run over l o n g e r periods of time. They are sold at a heavier price range of 72 to85thousand. They are intended mainly for biking enthusiasts a n d a c t a s a n alternative for those who cannot afford high power costly imported bikes.I n t e r m s o f b u y i n g r o l e s , t h e p e e r g r o u p o f t h e b i k e r e t c . m a y p l a y t h e r o l e o f INFLUENCER. Other than that the end user himself plays most of the

roles.Various sources of secondary data establish these facts as mentioned. Also our survey points to similar facts. Marketing Strategies of Bajaj auto Out of 53 participants a majority of 38 respondents either owned a pulsar or indicated that they prefer owning one in future. 13 of them h a d c o n s u l t e d reviews on websites before going for Pulsar. Also an amazing 16 out of the 19p u l s a r o w n e r s w e r e v e r y s a t i s f i e d w i t h t h e p r o d u c t a n d s a i d t h e y w o u l d / d o recommend the product to their friends.E.g. in a survey conducted inwww.mouthshut.com, 4 1 9 e x i s t i n g B A J A J A U T O 1 5 0 c c u s e r s w e r e a s k e d t o r a t e P U L S A R o n v a r i o u s f e a t u r e s o n a s c a l e o f 5 . The results are as follows.Additionally 83% respondents recommended the buying of a PULSAR.I n a n o t h e r s u r v e y c o n d u c t e d b y www.pulsarclub.com, t h e r e s p o n d e n t s w e r e a s k e d q u e s t i o n s r e g a r d i n g t h e i r b u yi n g b e h a v i o r . T h e i r r e s p o n s e s w e r e a s follows. Why did you buy a Bajaj auto? Its masculine looks...39.71% (110)Performance... 48.38% (134) Marketing Strategies of Bajaj auto Mileage..5.42% (15)Resale Value...1.08% (3)by Envy...5.42% (15) Total Votes: 277Who was influential in choosing Bajaj auto? Your Wife4.83% (10)Your Kids1.45% (3)Your Girlfriend(s)23.19% (48)You Yourself 66.67% (138)Dealer pushed you very few choices3.86% (8) Total Votes: 207 1.2CONSUMER CENTRIC STEPS BY BAJAJ

Now, let us look at some of the measures taken by Bajaj to influence consumer behavior in the increasingly competitive market. 1.DEALERSHIP AND SERVICE NETWORK: Bajaj Auto has an extensive network of about 485 dealers and 1500 s e r v i c e centers around the country. Lately it has been concentrating on the rural frontwhich has largely been an untapped, growing market in terms of performancesegment bikes.B a j a j customers 'Probikers', w h o a r e knowledgeable, appreciative of contemporary technology, they are has identified a segment of

trendsettersand very choosy about what they ride. Hence, Probikers need to be addressed ina meaningful way that goes beyond the product. Bajaj Auto is in the process of expanding its chain of retail stor es across the country exclusively for high -end, Marketing Strategies of Bajaj auto performance bikes. These stores are called "Bajaj Probiking". Many such storeshave been opened throughout major cities in India. A BAJAJ PROBIKING SHOWROOM The Probiking stores have features like attractive spare parts display, a trial r o o m w h i c h i s f u l l y a i r - c o n d i t i o n e d e t c . T h e b i k e s a r e d i s p l a ye d i n s t a n d i n g p o s i t i o n which is in itself a very novel way of attracting attention o f t h e youngsters.B a j a j A u t o h a s c o m e u p w i t h n e w i n i t i a t i v e c a l l e d e-biking

 to facilitate onlinebooking of bikes. Its the first and only kind of online bike booking in India andexpected to woo the prospective customers. After bike has been booked, bikew o u l d b e d e l i v e r e d a t t h e d o o r s t e p o f t h e c u s t o m e r w i t h a t t r a c t i v e f i n a n c i n g schemes made available to the customer. Bajaj Auto is expecting that it wouldgain significant customer base from people in cities like Bangalore, Hyderabadand Chennai, which are IT hubs of India and where people are internet savvy. Marketing Strategies of Bajaj auto 2.CUSTOMER RETENTION Lifecycle of bike is relativel y large (compared to other products like g r o c e r y items, clothes, etc.) and it is not that sort of product that people will buy twice ayear or even once every year. So customer retention is not limited to the act of customers coming back to buy the same product again and again. Here, it takesa broad meaning and encompasses customer satisfaction with its usage; serviceby the vendors and service centres; and as a result customers who have alreadyb o u g h t t h e p r o d u c t r e c o m m e n d i n g t h e s a m e t o o t h e r p r o s p e c t i v e c u s t o m e r s , users forming clubs to support the brand and also helping in testing etc of anyn e w l a u n c h e s . W e m u s t s a y B a j a j h a s d o n e e x t r e m e l y w e l l i n t h i s a r e a a l s o . Sales of Pulsar as well as its popularity have been leading those of other bikes.Also in cities like Pune there are bikers clubs, which owe serious allegiance to t h e b r a n d Bajaj. People who had bought it and were happy with it started a Websitewww.pulsarclub.com. This all is testimony to the successful customer retention for Pulsar by the Bajaj Auto.Another initiative taken by Bajaj Auto is Bajaj Confidence Extended Warranty Plans

, which extends basic 2-year/30000km warranty coming with the purchaseof new Bajaj Bike at a very nominal price. This extended warranty gets activatedas soon as the basic warranty expires. This initiative has been taken to provide b e t t e r s e r v i c e t o t h e e x i s t i n g c u s t o m e r s a n d h e n c e f o c u s e s o n c u s t o m e r retention and better customer relationship management. It needs to be seen howthis new initiative does in achieving goals of customer retention.Marketing management is often described as the art and science of choosingtarget markets and getting, keeping and growing customers through creating, Marketing Strategies of Bajaj auto delivering, and communicating superior customer value. While DEALERSHIPA N D S E R V I C E N E T W O R K i s f o c u s i n g o n g e t t i n g a n d growing customers,CUSTOMER RETENTION focuses on keeping c u s t o m e r s t h r o u g h s u p e r i o r customer value. Marketing Strategies of Bajaj auto SECTION III 3.COMPETITOR ANALYSIS, THEIR ACTIVITIES, STATUSAND STRATEGIES ajaj Pulsar has been in the market for about 7 years now. I t h a s revolutionized the Indian bike market with its innovative offerings both int e r m s o f p r o d u c t q u a l i t y a s w e l l a s s t yl e . C o n s u m e r s n o w h a v e t h e choice of bikes which are high both on quality i.e. mileage and performance aswell as style. Pulsar commands about 60% of the market share in the 150cc pluscategory. This figure was higher initially, but with increased competition from other bike manufacturers in the same category; its market share has decreased. B

Hereon we will try to identify and analyze the status, strategies and activities of major competitors of Pulsar to understand its competitive scenario. Some of them a j o r c o m p e t i t o r s o f B a j a j w i t h b i k e s i n t h e 1 5 0 c c + c a t e g o r y w h i c h a r e a competition to Pulsar are Hero Honda TVS Yamaha Foreign Competitors Marketing Strategies of Bajaj auto 1.1HERO HONDA & HONDA MOTORS Hero Honda is the largest Bike manufacturer in the world. In India also, it leads inthe overall bike market, but in the 150cc plus category its models are laggingBajaj auto in the overall market share. Bajaj autos main competitors from the Hero Honda stable are CBZ, Achiever, Hunk and Karizma. CBZ was an established and famous brand when Pul sar made its entry into themarket. Though CBZ had a better engine; Pulsar forged ahead with its styling,p e r f o r m a n c e a n d i n n o v a t i v e f e a t u r e s . D e m a n d f o r C B Z b e g a n t o g r a d u a l l y decrease as it was mainly positioned as a sports bike whereas Pulsar was notenclosed in any such bracket. Hero Honda came out with CBZ EXTREME thenew version of CBZ in 2006. It was positioned as a bike for

Extreme adventurel o v e r s w i t h a d v e r t i s e m e n t s o n t h e s i m i l a r l i n e s . Though this bike helped in i m p r o v i n g s a l e s , b u t i t w a s n o t a s w e l l r e c e i v e d a s t h e o r i g i n a l o n e , w i t h complaints about its looks. Marketing Strategies of Bajaj auto HERO-HONDA KARIZMA AND CBZ XTREME KARIZMA has been a major competitor for Pulsar in the 180cc, 200cc category.I t i s a s p o r t s b i k e w i t h a n i c h e m a r k e t . H e r o H o n d a h a s a d o p t e d a d i f f e r e n t marketing strategy to promote it. Since it is a bike primarily targeted for the youth,they used mediums, which were frequented by youth. They have Hrithik Roshanas their brand ambassador. Hero Honda constantly sponsors adventure rallies through Karizma brand name. The popular TV show MTV Roadies sponsored byK a r i z m a h a s elevated its status as a brand and increased its popularity. A separate site for the Bike with forums for consumers to discuss the bike has beenan innovative marketing strategy.H e r o H o n d a h a s r e c e n t l y c o m e u p w i t h a n o t h e r b i k e H e r o H o n d a H u n k i n t h e 1 5 0 c c c a t e g o r y. I t i s b e i n g p o s i t i o n e d a s a b i k e w i t h m a c h o l o o k s a n d f o r t h e hunks.Honda through its separate venture has come up with many bikes. It has Unicorni n i t s s t a b l e , w h i c h i s a s i g n i f i c a n t c o m p e t i t o r o f P u l s a r . I t h a s f o u n d m a n y supporters due to its better h a n d l i n g a n d g e a r s h i f t s t h a n P u l s a r . H o n d a h a s always positioned it as its main bike.Other Bikes from the Hero Honda stable have not been able to create a sufficientimpact on the market. The major advantage with Hero Honda is its wide serviceand dealership network of about 3000 outlets throughout the country, which is l a r g e r than all its competitors. Hero Honda also has a CRM initiative calledPassport which is a major success having a membership of a b o u t 3 m i l l i o n customers. Through it the customers get a series of discounts and benefits

for aperiod of 3 years. Hero Honda lately has been on a massive drive of penetratingthe rural market through its Har Gaon Har Aangan initiative. Thus Bajaj has to Marketing Strategies of Bajaj auto take note of this fact and try to expand more into the rural market to counter thecompetition from Hero Honda. 1 . 2 T V S M O T O R S

The Indian automotive industry is increasingly getting competitive and the two wheeler segment within it is also facing its own share of challenges. As part of the industry, TVS Motors, the countrys third largest m a n u f a c t u r e r o f t w o - wheelers, is also giving a stiff competition to Bajaj products. TVS Group of companies engaged in the manufacturing o f a l m o s t a l l k i n d s o f a u t o m o t i v e components, two wheelers and a few other industrial products. They are also intothe financial services sector. The turnover of the entire group was close to $2billion in 2003. T h e c o m p a n y h a s l a u n c h e d i t s l a t e s t b i k e F l a m e a n d h a s g o t some big plans up its sleeves. The year 2007-08 was a milestone for TVS Motor as it is likely to achieve sales one million motorcycles. Last year, the companysold a little over 800,000 motorcycles.There was a Digital Twin Spark Plug Ignition [DTS-i] technology debate betweenthe two-wheeler manufacturing giants Bajaj Auto and TVS Motors. The patent w a r r e a c h e d t h e Supreme Court with Bajaj seeking a restrain on t h e manufacturing and selling of TVS two -wheeler Flame. Bajaj has sought ar e v o c a t i o n o f t h e M a d r a s H i g h C o u r t o r d e r a l l o w i n g T V S t o g o a h e a d w i t h receiving bookings for and selling its new motorcycle. TVS motorcycles product segment includes:

TVS MAX 100 TVS Suzuki Samurai TVS Fiero Marketing Strategies of Bajaj auto TVS Star TVS Star City TVS Star Sport TVS Centra TVS Apache TVS Flame Strategies to stay competitive:1. Constant Quality Improvement : Significant efforts have gone silently into quality improvement. Today, Star h a s t h e b e s t w a r r a n t y r e c o r d i n t h e I n d i a n t w o - w h e e l e r i n d u s t r y. I t t o o k atleast two products worth of efforts to get TVS quality up to that s t a n d a r d , where it is equal or better than the best. The new offerings are targeted atdifferent segments of the two- and three-wheeler customers with emphasis onsuperior technology, styling and engine capabilities

2. Thrust on Research and development: TVS Motor Company has decided to double its R&D ( r e s e a r c h a n d d e v e l o p m e n t ) s p e n d i n g t h i s ye a r . O v e r 3 0 0 p e r s o n n e l a r e d e p l o ye d f o r product development. The company will strive to set out a new benchmark int h i s a r e a . T h e r e w a s a d i s c o n t i n u i t y a n d b r e a k i n c a d e n c e o f i t s p r o d u c t s . After Victor it came with Scooty Pep which has done well; Apache which hasgot a good record in the market; and then Star. Now, it has got Flame, whichwill be a worthy rival to Pulsar. Marketing Strategies of Bajaj auto 3. Product for every pocket : TVS Motors has just launched seven products in a first -of-its-kind rollout inthe Indian automobile industry. The seven products include a completely new125 cc motorcycle FLAME, an all new 110 cc Star City, an Apache variantwith fuel injection technology and the electric variant of a Scooty. The newofferings are targeted at different segments of the two - and three-wheeler c u s t o m e r s w i t h e m p h a s i s o n s u p e r i o r t e c h n o l o g y , s t y l i n g a n d e n g i n e capabilities. 3.3YAMAHA MOTORS Yamaha was one of the first foreign companies to enter into India. It begano p e r a t i o n s w i t h a J V w i t h E s c o r t s I n d i a . B y t h e t u r n o f t h e c e n t u r y , t h e J V between Escorts and Yamaha broke off. With the r e l a x a t i o n o f F D I n o r m s t o 100%, Yamaha was in Indian markets as a fully owned subsidiary of YamahaMotors, Japan. This was advantageous in many ways. Firstly Yamaha had nowfull control of its operations, it could decide the strategies. Secondly it could bringworld-class technologies from Japan to India, which could act as its competitiveadvantage.From 2002 onwards Yamaha started a process of

rebuilding by concentratingmore on 100cc plus deluxe category of motorcycles with bikes like Libero. Theseset of two wheelers come with international style, cutting edge technology, fuelefficiency, power delivery, and stylized graphics. The present stable of Yamahaincludes bikes like Crux (100cc), Alba (106cc) and Gladiator (125cc). Marketing Strategies of Bajaj auto As far as the 150 cc segment is concerned, Yamaha was n o t m u c h o f a competitor for Bajaj auto until now. It has some bikes in the premium categoryabove 500cc but then they too have their niche customers, which would not clashwith those of pulsar.Gladiator though not in the same category as Pulsar, has been a competitor for P u l s a r . T h e m a i n f a c t o r s t h a t w o r k i n f a v o r o f G l a d i a t o r i s t h e h u g e p r i c e difference of about 12,000 between Gladiator and Pulsar, the higher mileage of Gladiator and durability.The company is riding on the popularity of Bollywood heartthrob John Abrahamfor marketing its two wheelers. These campaigns focus on Yamaha as a brand f o r t h e y o u t h with emphasis on style, performance and technology. T h e s e campaigns have been successful in denting the share of Pulsar a little. YAMAHA GLADIATOR JOHN ABRAHAM

But the year 2008 appears to be a bright one for Yamaha. It is coming out witht w o b i k e s i n t h e 1 5 0 c c p l u s c a t e g o r y, w h i c h h a v e b e e n v e r y p o p u l a r a b r o a d . They are Yamaha R15 (150cc, water cooled) and FZ (150cc, air cooled). R15has technology from R1 bikes and has six-speed transmission and has receivedexcellent initial reviews. FZ is a toned down version of the ori ginal FZ 1000ccbikes. Both these bikes have been predicted by Industry experts to be a rage in their initial

period and may eat into the share of Pulsar in the market. Yamaha isp l a n n i n g t o improve on its weak -point no. of service centers. It is going toincrease it to 500 from its present 350. It also plans to open about 10 directshops in main metros for its new offerings and is coming out with a g g r e s s i v e marketing strategies for their launch.The company is also planning to come out with two new variants of the Gladiator.T h u s B a j a j h a s t o c o m e o u t w i t h n e w s t r a t e g i e s t o h a n d l e t h i s n e w d e l u g e o f models which could affect the sales of Pulsar in the coming few months. YAMAHA FZ (150CC) & YAMAHA R15 (150CC) 3.4FOREIGN COMPETITORS Foreign players have been an integral part of the Indian auto market since long.It was the foreign players expertise that brought cutting edge technology intomotorbikes and scooters went out for a toss. Post liberalization some of themh a v e c o m e o u t w i t h b i k e s f o r m t h e i r o w n s t a b l e s . A l s o w e h a v e b i k e manufacturers in china who are a major threat to Indian bike makers. Chinesemanufacturers produce at very cost and sell the products at low margins. Theyconcentrate on production rather than marketing their products. It is very evidentfrom their strategy that they target markets like India, Africa and Latin Americaand not developed markets like US or Europe. With increasing globalization andr e d u c t i o n o f t r a d e b a r r i e r s t h e y w i l l b e a m a j o r t h r e a t . A l s o t h e r e h a v e b e e n incidents when the Chinese have been found not to be very keen on conformingto IPRs or patents etc., a blatant case being a Chinese duplicate of Bajaj auto,called GULSAR and sold in the South American market. It may well very easilygnaw into Indian bike producers share. Also with the Indian economy growing ata m u c h b i g g e r r a t e t h e n t h e d e v e l o p e d c o u n t r i e s

m a r k e t s a n d w i t h a s i x t h o f world population, which is growing richer by the day, it is evident that the marketo f t h e f u t u r e i s h e r e . A s a r e s u l t a l l b i g b i k e m a n u f a c t u r e r s w i l l m a k e f o r t h e Indian market in the near future. Marketing Strategies of Bajaj auto CHINA MADE GULSAR One point of note is that there is no minimum investment limit f o r f o r e i g n companies in India and as a result the threat from the Chinese producers all buti n t e n s i f i e s . J a p a n e s e p r o d u c e r s l i k e K T M a n d K a w a s a k i ( w h i c h h a s p r i o r experience of the Indian motorcycle market) are coming out with their higher endproducts once again. Also it is rumored that Harley Davidson and BMW intend tostart exporting bikes to India. This is possibly an attempt to gauge the size of them a r k e t g i v e n t h a t t h e i m p o r t d u t y o n b i k e s i s a s t a g g e r i n g 6 0 % . T h e m a j o r threats posed are from the high cost-high performance bikes and the low cost-low mileage bikes (from china etc.). Lets see how Bajaj might be planning tocounter the twin threats. Threat 1 - High cost-performance segment:T h i s s e g m e n t c a n b e e x p e c t e d t o b e a niche segment in the near future.However Bajaj is already doing R & D o n c o m i n g o u t w i t h 3 5 0 c c a n d 5 0 0 c c pulsars. Also with local manufacturing capability and given the time frame Bajajauto should be able to compete against them successfully given they come out Marketing Strategies of Bajaj auto with consistent products. One more thing we need to keep in mind is thatbusiness India is not without its quirks, Yamaha

w h e n i t w a s e x p a n d i n g worldwide suffered losses in the Indian m a r k e t a n d n o w w a s o n t h e v e r g e o f closing operations few months back. Threat 2 - Low cost-low mileage-non-performance segment:With increasing fuel costs the consumers are getting more and more mileage conscious, also initial cost and maintenance cost are major factors that influencebuyers choice in India. We can safely assume that Bajaj auto is going to find ithard to ward off competition from this sector in near future. As such Bajaj needst o c o n s t a n t l y i n n o v a t e o n i t s l o w e r e n d p r o d u c t 1 5 0 c c p u l s a r , I n c r e a s e i t s mileage and probably try to cut costs by introducing economies of scale. SECTION IV4.Survey Analysis and Recommendations Marketing Strategies of Bajaj auto A primary survey has been conducted for customer behavior towards the bikes and their likes and dislikes on http://www.zoomerang.com Survey Questionnaire and their respective interpretations Q1: Which is your preferred brand?As we can see, most of the users have their preferred brand as Bajaj (52%) in asample of 600 responses. Other half percentage comes under other brands.Q2: How much power do you like in a bike?It can be seen that almost half of the people said that they like bike with 150 cc e n g i n e . I t c a n b e dependent on the price range because liking of high power Marketing Strategies of Bajaj auto bikes is less as compared to 150 cc. More interpretations can b e derived fromnext few questions.Q3: Price segment of the bike?58% people say, they would like to go with the bike, which is in between 40k and60k. This also goes in parallel with Q2 that people like 150cc bikes. It implies thatprice factor comes into mind of most consumers when they

purchase a bike andthats why they are more diverted towards 150cc bikes.Q4: How much fuel-efficient your bike should be?54% people say that they like bikes, which have a mileage between 40kmpl to50kmpl. They do not like the bi kes, which has a higher fuel consumption, whichimplies people are not ready to buy high power (180cc and above) bikes, as theyare low on fuel efficiency and high on price. Marketing Strategies of Bajaj auto Q5: Which bikes do you like in 150 cc segment?As it is clearly seen that Bajaj auto 150 DTSi has beaten other brands with high percentage of 75% and other brands like TVS apache, Hero Honda Achiever andother have constituted only 25%. This clearly indicates that Bajaj auto is one of the best in 150cc segment.Q7: Does Advertisement influence your decision in choosing a motorbike?Advertisements do affect the consumers in consumers buying decision as seen from the result. 61% say that the advertisements impact them. Marketing Strategies of Bajaj auto It can be seen from above results that Bajaj is the best most of the parametersd i s p l a ye d a b o v e , b e i t m i l e a g e o r p r i c e . B a j a j s t i l l n e e d s t o f o c u s a t i t s b r a n d image because brand value of Hero Honda is more than Bajaj. Bajaj needs tof o c u s o n c u s t o m e r s a t i s f a c t i o n i n b e s t p o s s i b l e w a y . B r a n d i m a g e w o u l d automatically be established if Bajaj becomes more customers oriented. Recommendations As we have seen from the conducted survey that Bajaj auto or Bajaj bikes are the best in bikes segment but still we would like to give some recommendation toBajaj so that they can improvise. 1.

Long hour driving comfort is what is missing from Bajaj auto. So we wouldlike to recommend that Bajaj should introduce a better design for com fortfor long drives.2 . A s B a j a j i s s p e n d i n g m u c h o n o t h e r a c c e s s o r i e s l i k e d i g i t a l s p e e d o m e t e r or electric start, they must also spend on the comfort accessories to thedriver.3 . W i t h g o o d p o w e r i n t h e b i k e s c o m e s a d i s a d v a n t a g e l i k e l o w e r m i l e a g e . Bajaj should invest in new technology to get more mileage in high power bikes.4.Bajaj should introduce Tube less tires as an optional accessory.5 . B a j a j c a n i n t r o d u c e V e h i c l e t r a c k e r / C e n t r a l l o c k i n g f o r B i k e s t o p r e v e n t theft.6 . B a j a j c a n i n t r o d u c e d i s k b r a k e f o r R e a r t i r e s a s w e l l , w h i c h i s g e n e r a l l y seen in sports bike. This will give Bajaj an X-factor. Marketing Strategies of Bajaj auto 1.CONCLUSION Putting together these four sections on the analysis of Bajaj auto as a product, itsmarketing strategies, its competitors etc. has given us many insights into the two-wheeler market as a whole.S t a r t i n g w i t h t h e f i r s t s e c t i o n a b o u t t h e S W O T a n a l y s i s o f P u l s a r , w e c o u l d analyze the various external and internal factors, which contribute into the growthof Pulsar as a brand and the various opportunities, and threats it faces for itsfuture prospects. We learned about the various marketing strategies adopted byBajaj for Pulsar right from its inception and how they have been instrumental inbuilding the brand Pulsar. Right from its Definitely Male to its latest Pulsar-mania campaign.In the second section, we analyzed the consumer behavior for Pulsar in terms of purchase behavior, buying roles and decision -making process. We segmentedthe Pulsar brand into various categories according cc of engine and analyzed thec o n s u m e r b e h a v i o r f o r e a c h . W e a l s o h a d t h e s u p p o r t o f v a r i o u s c u s t o m e r surveys, conducted by us as well as from some external agencies to

substantiatet h e a n a l y s i s . T h i s s e c t i o n h e l p e d u s u n d e r s t a n d h o w B i k e m a k e r s c a t e r t o various segments through various offerings and customer centric measures, incase of Pulsar these being Probiking stores and Extended Warranty plans.I n t h e t h i r d s e c t i o n w e u n d e r t o o k t h e competitor analysis of Pulsar amongvarious categories from v a r i o u s c o m p a n i e s . W e u n d e r s t o o d t h e v a r i o u s strategies taken by these companies for their products and the effect this had onthe Pulsar sales. We understood the status and activities of the competitors like Hero Honda, Yamaha, TVS and foreign competitors.

Marketing Strategies of Bajaj auto In the fourth section we analyzed the results of the survey conducted by us withrespect to different brands of bikes and compared them on some parameters likeprice, mileage etc. In the end, we concluded that Bajaj auto 150 DTSi is the bestbike in 150 cc segments over-powering other bikes, which include Yamaha, TVSa n d o t h e r b r a n d s . A l s o , w e w e r e a b l e t o g i v e r e c o m m e n d a t i o n s t o B a j a j a n d other bike companies, which would help them in improving the bikes and buildinga brand image.Thus overall, this project was an experiential way to understand the concepts of marketing and how they are applied in the real world. 2.REFERENCES 1. Pulsar 150cc reviews www.mouthshut.com 2. Pulsar Club Site www.pulsarclub.com 3. Bajaj Auto site www.bajajauto.com 4. B u y i n g r o l e s m o d e l b y Y o r a m W i n d ,

F r e d e r i c k 5.

W e b s t e r

www.provenmodels.com

Hero Honda Karizma -www.herohondakarizma.com 6. Yamaha India -www.yamaha-motor-india.com 7. www.wikipedia.org

8. TVS Motors -www.tvsmotor.in

Marketing Strategies of Bajaj auto Aditya Degree collegeI a P o e l u n r l 4 p y 0 o P s a e g n t e r n