STAGE Ist: INTRODUCTION

Company profile The Bajaj group was founded in 1926 by Jamnalal Bajaj. In
the mid 1940s, Bajaj Auto Limited(BAL) started as an importer of two- and three-wheelers. In 1959, the company secured a license from the Government of India (GoI) to manufacture two- and threewheelers. In 1960, BTCL was renamed Bajaj Auto Ltd and in the same year it entered into a technical collaboration with Piaggio for the manufacture of scooters. With its collaboration with Piaggio coming to an end in the early 1970s, BAL started manufacturing scooters under the Bajaj brand. Description of Chetak The Chetak, BAL's first scooter model under the Bajaj brand, was introduced in 1972. It was named after the horse of famous Indian warrior King Rana Pratap. The Chetak, a geared scooter, had reigned over the Indian two-wheeler market in the late 1970s to early 1990s Starting Price Quoted in the start was roughly between Rs. 8000-9000/In the initial period, Bajaj Chetak was a two stroke engine model with an attractive look. According to Auto critics, Bajaj chetak can be easily defined as a work horse. This model has the capability of taking the heck of beating and continuing its performance caring a little about obstacles.

 This Bajaj creation was specifically designed keeping the road condition of India in mind. The model was built in such a way that it can withstand pot holes of harsh Indian roads. Lower maintenance and easy repairing are other advantages associated with this model. Its four-stroke models had much more added specifications compared to their two-stroke counterparts. Reduced fuel consumption, enhanced safety standards and high-pick-up were the major features of the 4stroke models. Higher resale value was another crucial factor behind the popularity of this model. According to industry experts, resale value of the Chetak was much higher compared its competitors including Vespa. Early eighties to later nineties were the golden period for these scooters. Introduction and popularity of motorcycles had a significant negative impact upon the sale of all scooter models including Bajaj Chetak. Bajaj management was also smart enough to realize the ongoing change in the mindset of the target audience and invested heavily on production of bikes. As a result, production of Chetak was diminished significantly by the mid of 2004.

Technical Specifications
Engine

Overall height Overall length Overall Width Wheelbase Ground Clearance Saddle Height Minimum Turning Radius Kerb Weight Engine Type Cooling Type Displacement Max Power Max Torque Ignition Type Transmission Type Clutch Type Electrical System System Head Light Horn Chassis Chassis Type Maximum Payload Suspension Front Rear Brakes Front Brakes Rear Brakes Tyres Front Tyre Size Rear Tyre Size Fuel Tank

1080 mm 1770 mm 670 mm 1230 mm 135 mm 830 mm 1.56 m 103 kg

2 stroke Forced Air Cooled 145.45 cc 7.5 bhp( 5.93 kW) @ 5500 rpm 10.8 Nm @ 3500 rpm CDI Electronic 4-speed, Constant Mesh Wet Multidisc

12V AC 35/35W 12 V AC

Monocoque 140 kg

Variable rate coil spring & double acting Shock Absorber Variable rate coil spring & double acting Shock Absorber

Drum Drum

3.50 x 10in - 4PR 3.50 x 10in - 4PR

Fuel Tank Capacity Reserve Capacity

6 litres 1.4 litres

STAGE IInd: GROWTH PERIOD

There was a time when people had to wait hell lot of a time after prebooking their Chetak. The Launch of Bajaj Chetak was mainly targeted at economical Class and people could afford it considering its parallel competition in the same segment market.

Late 70s had been the Golden period for the Bajaj scooters, especially the Chetak. In 1977 Bajaj Auto claimed to have sold a lakh of Chetaks in just one Financial Year. The main marketing strategy used by Bajaj Chetak was mainly targetting the emerging middle class in India and adding the feeling of 'we' or the feeling of belongingness by strong sentimental slogans like "Hamara Bajaj". The Approach of this Marketing Strategy adopted by Chetak was NonPragmatic. Over 2 and a half decades until the halt of 1995 the company did not face any stiff competition from any 2 wheeler market segment, apart from the introduction of minor changes in its performance parameters meaning more augmented changes in the scooter itself like colour some peripheral outer changes in parts. Some of the competition were from the scooter segments LML Vespa Scooters, Automobile Products of India's

Lambretta. Growthstage Sales climb quickly as new customers join early users who now are repurchasing the item.

STAGE IIIrd : MATURITY PERIOD

In the late 1990s, the Indian two-wheeler market witnessed a shift in consumer preferences. The popularity of geared scooters began to wane while that of motorcycles soared. A tough body, low maintenance and initial cost and good resale value are the key attributes that are related the Chetak bearing trust seal from the house of Bajaj. There were various reasons for the shift -India was undergoing a demographic change, with the proportion of younger people in the population growing significantly; the economy was growing, which increased the disposable incomes of the middle class; also, many newer models of motorcycles, with improved designs and modern technology had become available in the market. While these changes were taking place in the market, the features of scooters, especially those of the Bajaj Chetak, remained essentially unchanged.

STAGE IVth : DECLINE PERIOD

The primary reason is that the Brand forgot the customers.

Another case of Marketing Myopia. The company failed to understand the changing perception of the customers towards scooters. Rather than looking at the customers, the company focused on influencing Government to block the opening up of economy. Bajaj never did anything with the product. For 40 years Chetak had the same look, same quality and style.

During the mid nineties the company realised lately that the segment has shifted to motorcycles. Scooters were no longer the option. But did the company made a mistake in discarding the scooter segment ? Looking at the way the share prices are going, the market.

Reasons for Failure?or Decline?

Bajaj never was serious about product development. The R&D spent for a long time was a miniscule 1%. The average cycle time for the new product development was 4-5 years compared to 2-3 years of Japanese competitors. Even after the opening up of economy, the scooter segment did not witness much competition. The players like Vespa did not had much of success in this segment. Kinetic Honda managed to carve a niche with its gearless scooters. Another segment which was growing was the scooterette segment which was dominated by TVS scooty. The players like Vespa did not had much of success in this segment.

PLC GRAPH OF CHETAK

 Kinetic Honda managed to carve a niche with its gearless scooters. Another segment which was growing was the scooterette segment which was dominated by TVS scooty. Bajaj never seriously looked at customer perception about Chetak. The product had serious problems like starting trouble and riding comfort. The " Tilting the chetak to the side for starting " was a common joke. Did the company do anything for that ? NoThere was nothing wrong with the Promotion. " Hamara Bajaj " and " No one can beat a Bajaj " were famous base lines. There was nothing wrong with distribution and the pricing was very reasonable. The major problem was in the first P : Product