PIONEER

Diligence & Excellence

Since 1996

A
Research Project
Synopsis
on

“Impact of marketing strategy of Bajaj

motorcycles on consumer behavior”

Guided By Submitted by
Prof. Shweta Mogre Swapnil Kanojia
MBA III Sem
Section-R
(Production + Marketing)
 1. CONCEPTUAL FRAME WORK

1.1 INTRODUCTION

Satisfaction is the persons feeling of pleasure (or) disappointment resulting from

comparing a product perceived performance (outcome) in relation to his/her
expectation. if the performance fall short of expectation the customer is dissatisfied .
if the performance matches the exception the customer is satisfied if the
performance exceeds the expectation the customer is highly satisfied ( or ) delighted
many companies are aiming for high satisfaction because they are much ready to
switch.
Buyer’s expectation formed on the basis of past buying experience,
friend and the associate advice and the marketers and the competitor’s information
and promises. if marketers raise expectations two high , the buyer is likely to be
disappointed . Even if the company sets expectation should match the performances.

 A customer is the most important person in company’s prospective.

 A customer never depend on company, but the company depends on him.
 A customer is the person who bring company his Wants and Desire.

Marketing strategy is a process that can allow an organization to concentrate its

limited resources on the greatest opportunities to increase sales and achieve a
sustainable competitive advantage. A marketing strategy should be centered around
the key concept that customer satisfaction is the main goal.

Marketing strategy is a method of focusing an organization's energies and resources

on a course of action which can lead to increased sales and dominance of a targeted
market niche. A marketing strategy combines product development, promotion,
distribution, pricing, relationship management and other elements; identifies the
firm's marketing goals, and explains how they will be achieved, ideally within a
stated timeframe. Marketing strategy determines the choice of target market
segments, positioning, marketing mix, and allocation of resources. It is most
effective when it is an integral component of overall firm strategy, defining how the
organization will successfully engage customers, prospects, and competitors in the
market arena. Corporate strategies, corporate missions, and corporate goals. As the
customer constitutes the source of a company's revenue, marketing strategy is
closely linked with sales. A key component of marketing strategy is often to keep
marketing in line with a company's overarching mission statement.
Basic theory:

1. Target Audience
2. Proposition/Key Element
3. Implementation

Consumer Behaviour

Consumer behavior is the study of when, why, how, and where people do or do not
buy product.
It blends from psychology, sociology, social anthropology and economics. It
attempts to understand the buyer decision making process, both individually and in
groups. It studies characteristics of individual consumers such as demographics and
behavioral variables in an attempt to understand people's wants. It also tries to assess
influences on the consumer from groups such as family, friends, reference groups,
and society in general.
Customer behavior study is based on consumer buying behavior, with the customer
playing the three distinct roles of user, payer and buyer. Relationship marketing is
an influential asset for customer behavior analysis as it has a keen interest in the re-
discovery of the true meaning of marketing through the re-affirmation of the
importance of the customer or buyer. A greater importance is also placed on
consumer retention, customer relationship management, personalization,
customization and one-to-one marketing. Social functions can be categorized into
social choice and welfare functions.

1.2 Two wheelers in India

India, is the second largest producer of two-wheelers in the world. In the last few
years, the Indian two-wheeler industry has seen spectacular growth. The country
stands next to China and Japan in terms of production and sales respectively.
Majority of Indians, especially the youngsters prefer motorbikes rather than cars.
Capturing a large share in the two-wheeler industry, bikes and scooters cover a
major segment. Bikes are considered to be the favorite among the youth generation,
as they help in easy commutation.

Large variety of two wheelers are available in the market, known for their latest
technology and enhanced mileage. Indian bikes, scooters and mopeds represent style
and class for both men and women in India.

Benefits of two wheelers

Two-wheelers are the most popular and highly sought out medium of transport in
India. The trend of owning two-wheelers is due to its-

• Economical price
• Safety
• Fuel-efficient
• Comfort level

However, few Indian bike enthusiasts prefer high performance imported bikes.
Some of the most popular high-speed bikes are Suzuki Hayabusa, Kawasaki Ninja,
Suzuki Zeus, Hero Honda Karizma, Bajaj Pulsar and Honda Unicorn. These super
bikes are specially designed for those who have a zeal for speedy drive.

Bajaj auto ltd.

Bajaj Auto Ltd. is an important Indian automobile manufacturer. Bajaj Auto is the
second largest two-wheeler manufacturer in India and one of the largest in the
world. It is also the earliest one in India to venture into automobile manufacturing.
The company produces and exports scooters, motorcycles and the auto rickshaw.
Bajaj Auto is based in Pune, Maharashtra, with plants in Akurd and waluj in
uttarakhand.

Bajaj Auto Limited was founded on November 29, 1945. At that time it was known
as M/s Bachraj Trading Corporation Private Limited. The company initially sold
imported two- and three-wheelers in India. In 1959, Bajaj Auto obtained license
from the Government of India to manufacture two- and three-wheelers in the
country. In 1960, Bajaj Auto became a public limited company.

Over the last few years, Bajaj Auto has smartly and successfully transformed its
image from a scooter manufacturer to a two wheeler manufacturer. At present, the
product range of Bajaj Auto includes Scooters, Scooterettes and Motorcycles. The
last few years have seen company's real growth in numbers after it successfully
introduced a number of new models in various segments of the fast growing bike
market in India. In fact, Bajaj Auto smartly introduced new segments in the
motorcycle market to take on its arch rival and market leader Hero Honda.

2. LITERATURE REVIEW

Ramaswamy V.S. and Namakumari S. (2009) “Marketing management” states that

Marketing strategy represents the plan by which the firm delivers its value to the
customers. It also specifies how the firm would be enabled /empowered to deliver
that value. It is marketing strategy that specifies how the firm would go about its
value selection, value creation, and value communication.

Lawrence Dandurand, encyclopedia of business, second edition states that-

Marketing strategy is a conscious approach to accomplishing something strategy
precedes marketing and marketing strategy. The first time a human planned an
approach for achieving a desired end a goal or objective - he or she was developing
strategy. The strategy can be formulated by individuals, groups, and organizations.
In modern times, strategy can be formulated by complicated and sophisticated
programmed software operating on computerized system. Original, formalized
discussions of strategy or strategy theory are associated with politics, war and the
military. The term "strategy" comes from the Greek word stratigiki meaning
generalship. It also can mean approach, scheme, design and system and is associated
with terms such as intrigue, cunning, craft and artifice.

Business dictionary (www. Business dictionary. Com./ definition/marketing strategy

html)-According to it - "Marketing strategy is a written plan (usually a part of the
overall corporate plan) which combines product development, promotion,
distribution, and pricing approach, identifies the firm's Marketing goals and explains
how they will be achieved within a stated timeframe. Marketing strategy determines
the choice of target market segment, positioning marketing mix, and allocation of
resources.

In the last four to five years, the two-wheeler market has witnessed a marked shift
towards motorcycles at the expense of scooters. In the rural areas, consumers have
come to prefer sturdier bikes to withstand the bad road conditions. In the process the
share of motorcycle segment has grown from 48% to 58%, the share of scooters
declined drastically from 33% to 25%, while that of mopeds declined by 2% from
19% to 17% during the year 2000-01. The Euro emission norms led the existing
players in the two stroke segment to install catalytic converters. All the new models
are now being replaced by 4-stroke motorcycles. Excise duty on motorcycles has
been reduced resulting in price reduction, which has aided in propelling the demand
for motorcycles. Fierce competition has also forced players to cut prices in certain
models.

Gopalan Murali Mumbai, Jan. 11 2010 in the newspaper THE HINDU states that
Bajaj Auto's new brand strategy in motorcycles paid off well with the company on
course to recording its best year ever in terms of profitability and market share. Its
market share, which was barely 17 per cent a year ago, has increased since to 35 per
cent today. “We have more than doubled our market share in a year and would be at
our highest level by the end of this quarter,” Mr Rajiv Bajaj, Managing Director,
told Business Line.The confidence stems from the fact that there are still three
months to go for the recently launched Pulsar 135 to consolidate itself in the market
and start clocking volumes. Bajaj Auto has targeted a monthly output of 100,000
Pulsars by end-March 2010 and believes the new 135cc will play a key role in
achieving this goal. At present, the Pulsar 150, 180 and 220 versions together
account for around 60,000 units each month.

Narula Avinash on August 26, 2010 in management blog states that branding
strategy adopted by Rajiv Bajaj of Bajaj Auto would be a great learning experience.
I had suggested that we will analyze it from two perspectives. First, I will discuss it
from the point of view of what management theory says.Positioning refers to how
the brand is perceived in the mind of the customer. In other words, what does the
customer think of the brand. Perception of the brand can be created in the mind of
the customer or the customer develops it on its own taking his experience with the
brand into consideration. Positioning is what you do to the mind of the customer and
not what you do to the product in the factory.In simple terms, a brand should mean
one and only one thing to the customer. In other words, a brand can have just one
positioning. The positioning that each brand occupies in the mind of the customer
has to be one, preferably unique. So, what Rajiv Bajaj is trying to do is exactly right
because today the Bajaj brand means too many things to too many people. Even in
the Rahul Bajaj Group, it means too many things to too many people, that is,
finance, insurance, auto rickshaw, high-end and low-end bikes. As such, Rajiv is
correct when he says that the Bajaj brand has been diluted and stretched beyond
what is logical.

3. OBJECTIVES

 To study the impact of marketing strategies on consumer buying

behavior of Bajaj motorcycles.
  To find out the consumer’s expectation from Bajaj motorcycles.

 To observe the consumer behavior regarding bajaj motorcycles.

4. RATIONALE
The study helps in identifying the impact of marketing strategy on consumer
behavior in buying bajaj motorcycle.This study is an endeavor to understand
the importance of customer behavior in making marketing strategy by the
automobile industry specially motorcycle industry. It also helps in
understanding the consumer expectation towards Bajaj motorcycles and the
company can interpret the consumer wants and demand in motorcycle which
will help them to make more efficient marketing strategy and product
development.

5. RESEARCH METHODOLOGY

Data Collection:
• Primary data will be collected through self design questionnaires
and observation.
 • Secondary data will be collected from books and internet.

Tools for Data Analysis:

• Pie Chart, Graphs and Bar Diagrams will be used for data
presentation.

• T/Z-Test

Sample:
Sample size : 150 customers

Hypothesis:

6. EXPECTED OUTCOMES

• The impact of marketing strategy on consumer buying Bajaj motorcycle can

be identified.

• The expectation of consumer from Bajaj motorcycle can be carried out

through this study.
 • Barriers in marketing strategy and consumer behavior toward Bajaj
motorcycle can be identified.

REFRENCES

Baker, Michael The Strategic Marketing Plan Audit 2008. ISBN 1902433998. p.3
David L. Loudon & Albert J. Della Bitta Consumer Behaviour.ISBN-
13:98700704773812

Hitler & Armstrong, "Principles of marketing," 9th ed. Prentice Hall of India Private
Ltd. 2001.

Amarchand D and Varadharajan B, "An introduction to marketing," Vikas

Publishing House Pvt. Ltd. New Delhi. 1979.

WEBLIOGRAPHY

 http://books.google.com/books?
id=8qlKaIq0AccC&printsec=frontcover#v=onepage&q&f=false
14 October 2010
 http://en.wikipedia.org/wiki/Marketing_strategy 14 October 2010
 http://en.wikipedia.org/wiki/Consumer_behaviour 14 October 2010
 www.bajajauto.com 14 October 2010
 www.infibeam.com/bikes/make/bajaj.html 14 October 2010
 www.motorcyclesindia.com/bajaj-bikes.html 14 October 2010