A

Summer Training Report

On
“STUDY ON MARKETING MIX OF BAJAJ AUTO LTD”
Submitted for partial fulfillment of requirement for the award of degree
Of
Master of Business Administration
Of
CHHATTISGARH SWAMI VIVEKANAND TECHNICAL UNIVERSITY
BHILAI (C.G.)
Session 2009-11
Supervised By External Guide Supervised by Internal Guide
Name: Mr. Deepak Shrivastava Name: Prof. Teju Kujur
Designation: Sales Manager Designation: Reader
Department :Sales &Marketing Department: MBA
Submitted by
AYUSH AGRAWAL
Roll No-5053609028
Enrollment No. AE6641
MBA III Semester (Section- ‘A’)
2010
DEPARTMENT OF MANAGEMENT

DISHA INSTITUTE OF MANAGEMENT AND TECHNOLOGY

(Disha Education Society)
Satya Vihar, Vidhansabha-Chandrakhuri Marg, Mandir Hasaud,
Raipur (C.G.)492007
 DECLARATION

I the undersigned solemnly declare that the report of the Summer Training work
entitled “STUDY ON MARKETING MIX OF BAJAJ AUTO LTD” is based
my own work carried out during the course of my study under the supervision
of Mr. Deepak Shrivastava

I assert that the statements made and conclusions drawn are an outcome of the
project work. I further declare that to the best of my knowledge and belief that
the project report does not contain any part of any work which has been
submitted for the award of any other degree certificate in this University or any
other University.

(Signature of the Candidate)

Name: Mr. Ayush Agrawal

Roll No: 5053609028

Enrollment No.:AE6641
 Certificate by Organization

Note: In this page you have to put the certificate received from the organization.
 CERTIFICATE BY INTERNAL GUIDE

This to certify that the report of the project submitted is the outcome of the
project work entitled “STUDY ON MARKETING MIX OF BAJAJ AUTO LTD”
carried out by Mr. Ayush Agrawal bearing Roll No.5053609028 & Enrollment
No.AE6641 carried by under my guidance and supervision for the award of
Degree in Master of Business Administration of Chhattisgarh Swami
Vivekananda Technical University, Bhilai (C.G), India.

To the best of the my knowledge the report

i) Embodies the work of the candidate herself,

ii) Has duly been completed,
iii) Fulfils the requirement of the ordinance relating to the MBA degree
of the University and
iv) Is up to the desired standard for the purpose of which is submitted.

(Signature of the Guide)

Name: Mr. Deepak Shrivastava

Designation: Sales Manager

Department: Sales & Mrtg

Vandana Bajaj

Ramkund, G.E Road,

Raipur.

The project work as mentioned above is hereby being recommended and

forwarded for examination and evaluation.

CERTIFICATE BY THE EXAMINERS

 This is to certify that the project entitled

“STUDY ON MARKETING MIX OF BAJAJ AUTO LTD”

Submitted by

Mr. Ayush Agrawal Roll No.:5053609028 Enrollment No.: AE6641 has been
examined by the undersigned as apart of the examination for the award of
Master of Business Administration degree of Chhattisgarh Swami Vivekanand
Technical University, Bhilai (C.G.).

(Prof. Teju Kujur) ( Mr.Deepak Shrivastava)

Name & Signature of Name Signature

of Internal Examiner External
Examiner

Date: Date:

Forwarded by

Dr. Sathish Benedict

Academic Head

Department of Management

ACKNOWLEDGEMENT
I take this opportunity to express my sincere thank to the management of
Vandana Bajaj Auto for providing us the opportunity to carry out the project in
their organization.

I would like to extend my gratitude towards Disha Education Society for giving
us the opportunity about this project. I am grateful to Dr. S.K. Jain, chairman of
the institute for spending valuable time and co-operating with us for successful
completion of our project. I take the opportunity for the practical knowledge of
the theoretical aspect through this project.

I express my gratitude to Mr. Neeraj Agrawal, Dealer of Vandana Bajaj, who in

spite of his pressing duties and responsibilities has shown genuine interest in
providing necessary guidance regarding concept of this project and rendered
support at all stage of this project.

I also thank to our external guide Mr. Deepak Shrivastava & our internal guide
Prof. Teju Kujur who are our inspiration to work and learning.

Last but not the least I would like to thank my friends Amrita, Nupur, Swati and
Amit who encouraged me and cooperated in completion of my project.

(Signature of the student)

Name: Mr. Ayush Agrawal

Roll. No. 5053609028

MBA. 3rd Semester

Section – ‘A’

PREFACE
There’s a little bit of AUTOMOBILES in everybody’s life….

“AUTOMOBILES are the basic necessity of day today life. This manmade machine has an
extraordinary quality of contributing to every aspect of life. While it brings ease in
everybody’s day to day working and provides tremendous growth and benefit to the
transportation industry.”

‘JAMNALAL BAJAJ’

Many students may have done work on this project in different ways/styles. I have also tried
to work on this project in a different way. It was for the first time I got the opportunity to
work in such a prestigious and well-known organization. And things which I have
experienced in my training period are going to help me through out my life time. I have
worked on this project with great enthusiasm and zeal. I have tried to cover almost all the
things, which I have experienced and learned during the training period. To run a giant
organization each and every department has to play its role effectively. In this era of cutthroat
competition there is no room for complacency. Automobiles are the basic framework which
has built transportation industry in nation and it contributes to everybody’s life.

The main goal of my project is the. “Overview of Bajaj auto and study of consumer
preference and brand awareness”. It would be my great pleasure, if this project can help
this company to achieve its goal higher. This project has been undertaken to study the
procedures and practices followed in Sales & Marketing dept. The Sales & Marketing dept in
Vandana Bajaj Auto Raipur have many different activities and different people are appointed
for different work. This report is prepared on the basis of the extensive study carried out at
Sales & Marketing Department of Vandana Bajaj Auto Raipur.

Contents
S.No. Topic Name Page
No.

01 INTRODUCTION
1.1 Introduction to Study
1.2 Introduction to Topic
02 PROFILE
2.1 Company Profile
2.2 Product Profile
03 MARKETING MIX
3.1 Introduction
3.2 Bajaj’s marketing mix
04 RESEARCH METHODOLOGY
4.1 Market Research
4.2 Research Design
4.3 Objective Behind the Study
4.4 Significance of the Study
4.5 Research Methodology
4.6 Limitation
05 ANALYSIS
5.1 Data Analysis & interpretation
5.2 Survey Analysis
06 FINDING & CONCLUSION
6.1 Finding & Conclusion
 6.2 Suggestion
6.3 Questionnaire
6.4 Bibliography

INTRODUCTION TO THE STUDY:

Since the beginning of human civilization the needs and wants of non kind were on
the ascendancy. The efforts of non through science and technology has brought to the notice
of the world many new products and services to satisfy the innumerable wants of human
beings. The efforts are containing even today to create more and more rusticated goods and
 articles for the sake of comfort and luxury requirements of human beings. As the population
increased the towns and cities grew by many fold. The people are to another locality with the
help of different means of transportation, which evolved over as the results of scientific
research and development.

The public convey system available is unable to meet the demands of the public
which has promoted industrialists to many aware and market two wheeler's that can be owned
and run by an individual at this convenience and as and when require. Thus, today we find in
every look and corner of a village town or city two wheelers used by the people. The
increasing depends of the people on the two wheelers or a mean of transport creates interest
in anyone to undertake a study of the two wheeler's segment of the transport system.

In the light of the two wheeler's significance in the life of a modern man and woman the
project work entitled STUDY ON MARKETING MIX OF BAJAJ AUTO LTD”.Raipur
city with special reference to Vandana Auto has been undertaken. This project work is an
attempt to highlight the new modes with scientific

Origination recently introduced to the market by removed automobile gains of India "Bajaj
Auto Ltd".

AUTOMOBILE INDUSTRY

The automobile industry in India—the tenth largest in the world with an annual production
of approximately 2 million units—is expected to become one of the major global automotive
industries in the coming years. A number of domestic companies produce automobiles in
India and the growing presence of multinational investment, too, has led to an increase in
overall growth. Following the economic reforms of 1991 the Indian automotive industry has
demonstrated sustained growth as a result of increased competitiveness and relaxed
restrictions. The monthly sales of passenger cars in India exceed 100,000 units

MOTORCYCLE INDUSTRY

A motorcycle also is a single-track, two-wheeled motor vehicle powered by an engine.

Motorcycles vary considerably depending on the task for which they are designed, such as
long distance travel, navigating congested urban traffic, cruising, sport and racing, or off-road
conditions. Being the most affordable form of motorized transport, in some parts of the world
they are also the most widespread (e.g., Vietnam).
 Bajaj Auto limited is one of the largest two wheeler manufacturing company in India apart
from producing two wheelers they also manufacture three wheelers. The company had started
way back in 1945. Initially it used to import the two wheelers from outside, but from 1959 it
started manufacturing of two wheelers in the country. By the year 1970 Bajaj Auto had rolled
out their 100,000th vehicle. Bajaj scooters and motor cycles have become an integral part of
the Indian milieu and over the years have come to represent the aspirations of modern India.
Bajaj Auto also has a technical tie up with Kawasaki heavy industries of Japan to produce the
latest motorcycles in India which are of world class quality The Bajaj Kawasaki eliminator
has emerged straight out of the drawing board of Kawasaki heavy industries. The core brand
values of Bajaj Auto limited includes Learning, Innovation, Perfection, Speed and
Transparency.

Bajaj Auto has three manufacturing units in the country at Akurdi, Waluj and Chakan in
Maharashtra, western India, which produced 2,314,787 vehicles in 2005-06. The sales are
backed by a network of after sales service and maintenance work shops all over the country.
Bajaj Auto has products which cater to every segment of the Indian two wheeler market Bajaj
CT 100 Dlx offers a great value for money at the entry level.

Introduction to Topic

Marketing mix
The four main fields of the Marketing mix.

The term 'marketing mix' was first used in 1953 when Neil Borden, in his American
Marketing Association presidential address, took the recipe idea one step further and coined
the term "marketing-mix". A prominent marketer, E. Jerome McCarthy, proposed a 4 P
classification in 1960, which has seen wide use. The four P’s concept is explained in most
marketing textbooks and classes.

Elements of the marketing mix are often referred to as 'the four Ps':

 Product - A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units. Intangible products are
service based like the tourism industry & the hotel industry or codes-based products
like cellphone load and credits. Typical examples of a mass produced tangible object
 are the motor car and the disposable razor. A less obvious but ubiquitous mass
produced service is
 Price – The price is the amount a customer pays for the product. It is determined by a
number of factors including market share, competition, material costs, product
identity and the customer's perceived value of the product. The business may increase
or decrease the price of product if other stores have the same product.

 Place – Place represents the location where a product can be purchased. It is often
referred to as the distribution channel. It can include any physical store as well as
virtual stores on the Internet.

 Promotion represents all of the communications that a marketer may use in the
marketplace. Promotion has four distinct elements - advertising, public relations,
word of mouth and point of sale. A certain amount of crossover occurs when
promotion uses the four principal elements together, which is common in film
promotion. Advertising covers any communication that is paid for, from cinema
commercials, radio and Internet adverts through print media and billboards. Public
relations are where the communication is not directly paid for and includes press
releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and
events. Word of mouth is any apparently informal communication about the product
by ordinary individuals, satisfied customers or people specifically engaged to create
word of mouth momentum. Sales staff often plays an important role in word of mouth
and Public Relations.


Company profile:

Bajaj Auto Ltd.

(A JOURNEY FROM “HAMARA BAJAJ” TO “DISTINCTLY AHEAD)”
Executive summary
The Bajaj Group was founded in 1926 by Jamnalal Bajaj and now consists of 27 companies.
In 1945, Jamnalal Bajaj had formed M/s Bachraj Trading Corporation Private Limited, the
flagship company, to sell imported two-wheelers and three-wheelers. The company acquired
a license from the government in 1959 to manufacture these vehicles and went public the
next year. By 1977, the company saw its plant rolling out 100,000 vehicles in a single year.
In another nine years, Bajaj Auto could produce 500,000 vehicles in a year. The present
Chairman of the Bajaj group, Rahul Bajaj, took charge of the business in 1965. He was the
first licensee of the Indian make of the Italian Vespa scooter.

Japanese and Italian scooter companies began entering the Indian market in the early 1980s.
Although some boasted superior technology and flashier brands, Bajaj Auto had built up
several advantages in the previous decades. Its customers liked the durability of the product
and the ready availability of maintenance; the company's distributors permeated the country.
By 1994-95, Bajaj was racing to beat Honda, Suzuki and Kawasaki in the two-wheeler
segment internationally.

By 1997, Bajaj faced tough competition in the domestic market and its market share stood at
40.5%. Under the leadership of Rahul Bajaj, the turnover of Bajaj Auto has gone up from
Rs.72 million to Rs.46.16 billion (USD 936 million), its product portfolio has expanded from
one to many and the brand has found a global market. Bajaj as a brand is well-known across
several countries in Latin America, Africa, Middle East, South and South East Asia. The
company has a network of 498 dealers and over 1,500 authorized service centers and 162
exclusive three-wheeler dealers spread across the country.
Bajaj has identified a segment of customers called 'Probikers', who are knowledgeable about
motorbikes and appreciative of contemporary technology. They are trendsetters and very
choosy about what they ride. Hence, Probikers need to be addressed in a meaningful way that
goes beyond the product. Bajaj Auto is in the process of setting up a chain of retail stores
across the country exclusively for high-end, performance bikes. These stores are called
―Bajaj Probiking". Fifty two such stores have been opened across India.

Catering to demand in this sector requires a strong and effective distribution network as
consumers are more demanding and expect delivery on time. Early delivery is a cause delight
for customers. With such vast global and Indian rural presence, designing an efficient
distribution system becomes a complex task even for a company like Bajaj Auto. Lot of time
and effort goes into designing a strategy based efficient distribution system.

Bajaj Auto is a major Indian automobile manufacturer started by a Rajasthani merchant. It is

world's fourth largest manufacturer of two-wheelers and India's second largest two wheeler
manufacturer and the world's 4th largest two- and three-wheeler maker. It is based in Pune,
Maharashtra, with plants in Akurdi and Chakan (Pune), Waluj (near Aurangabad) and
Pantnagar in Uttaranchal. Bajaj Auto makes and exports motor scooters, motorcycles and the
auto rickshaw.

The company, headed by Rahul Bajaj, is worth more than US$1.5 billion. Bajaj Auto came
into existence on November 29, 1945 as M/s Bachraj Trading Corporation Private Limited. It
started off by selling imported two- and three-wheelers in India. In 1959, it obtained license
from the Government of India to manufacture two- and three-wheelers.

Management:
 Rahul Bajaj Chairman

Madhur Bajaj Vice Chairman

Rajiv Bajaj Managing Director

Sanjiv Bajaj Executive Director

Pradeep Shrivastava President (Engineering)

Rakesh Sharma CEO (International Business)

R C Maheshwari CEO (Commercial Vehicles

S Sridhar CEO (Two Wheelers)

Abraham Joseph President

(Research & Development)

Eric Vas President (New Projects)

C P Tripathi Vice President (Corporate)

Kevin D‘sa Vice President (Finance)

K Srinivas Vice President

(Human Resources)

N H Hingorani Vice President (Commercial)

S Ravikumar Vice President

(Business Development)

Quick facts:

Founder Jamnalal Bajaj

Year of Establishment 1926

Industry Automotive - Two & Three Wheelers

Business Group The Bajaj Group

Presence Distribution network covers 50 countries.

Dominant presence in Sri Lanka, Bangladesh,
Columbia, Guatemala, Peru, Egypt, Iran and
Indonesia.

Joint Venture Kawasaki Heavy Industries of Japan

Registered & Head Office Akurdi Pune - 411035 India Tel.: +(91)-(20)-
27472851 Fax: +(91)-(20)-27473398

MISSION AND VISION STATEMENT

 MISSION
  Focus on value based manufacturing
 Fostering team work & enhancing the capability of the team
 Continual Improvement
 Total elimination of wastes
 Pollution free & safe environment

 VISION
 To attain World Class Excellency by demonstrating Value added products to
customers

 OBJECTIVE
 Bajaj Limited is to cater the market needs of transportation by providing 2 wheeler
and 3 wheeler vehicles. BALW has been producing the catalogue products to cater to
the changing market requirements. Based on the customer feedback, improvements
are being made continuously in the existing products.

 GOAL
 To catapult Bajaj Auto as the country‘s largest automobile company.

ORGANISATIONAL STRUCTURE:
India's premier automotive company, has unveiled a focused organizational restructuring for
the Auto business. With this restructuring, the existing business roles and responsibilities at
the company has been strengthened and enhanced to ensure greater operational empowerment
and effective management.

The five pillars of this new structure, called strategic units, are,

 R&D
 Engineering
 Two-wheeler business unit
 Commercial vehicles business unit and
 International business unit

Sanjiv Bajaj said that they are trying to make the organizational structure more responsive.
They have brought down the number of layers between the chief executive officer (CEO) and
the shop-floor level to four, which is in line with existing standards. They are further looking
at cutting down on one more layers in the organizational structure.

This re-organization, according to him, is a reflection of the changing market structure and
dynamics. Bajaj Auto Ltd also plans to invest in marketing, sales and the R&D side.

BAL had recently announced a voluntary retirement scheme for middle-level management
covering around 400-500 people of which 170 odd, opted for the VRS. BAL has previously
stated that it intends to bring down its workforce level to 10,000 from its current 13,000 odd
levels.

Interestingly, the country‘s other major two-wheeler manufacturer Hero Honda has also
embarked on a manpower rationalization drive at the top level. The aim is to induct fresh
competencies at the senior level.
BCG MATRIX FOR BAJAJ

\
SWOT ANALYSIS:
STRENGTH
 High economies of scale.
 High economies of scope.
 Legacy of brand name.
 Widespread distribution network.
OPPORTUNITIES
 The growing gearless trendy scooters
and scooterette market.
 Can use the existing R&D capabilities
for new models.
 Can invest and grow the life style
segments.
a)
WEAKNESS
 Hasn't employed the excess cash for
long.
 Centralized paternalistic management
style. Not a global player in spite of
huge volumes.
 No collaboration with any of the
foreign players.
THREATS
 The competition catches-up any new
innovation in no time.
 Threat of cheap imported motorcycles
from China.
 Tough competition faced by foreign as
well as domestic players.
 PRODUCT PROFILE

Two Wheeler Industry: An Overview

The Indian two-wheeler industry has witnessed spectacular growth in the last few years. The
market dynamics of the industry has substantially changed with a majority of the customers
preferring bikes to scooters and mopeds. This is primarily due to better fuel efficiencies,
dynamics, looks and longer product lives of motorcycles.

The motorcycle segment constitutes about 81.5% of the two wheeler market in India1. It also
contributes to three-fourths of the total exports in the two wheeler industry. Exhibit 1 shows
that Bajaj is the second largest player in this segment after Hero Honda.

Figure 1. Market Shares of the major players in the two wheeler market segment

The industry exhibits some degree of collusive behavior and thus represents an oligopolistic
form of market structure. Product and brand differentiation are seen as the primary means of
sustaining competitive advantage. In order to sustain brand equity, players spend large
percentages of their revenues in advertising and brand building activities. The supply and
distribution networks are decisive factors in staying competitive and normally need a huge
capital investment.
The two wheeler industry is capital intensive with large fixed cost requirements and new
model introductions mandatory at frequent intervals in order to sustain the demand. This
involves substantial design and R&D costs. Such high fixed costs can be offset only by
achieving economies of scale. Moreover, developing a distribution channel is extremely
difficult in a country like India. Therefore, it is difficult for a new player to enter this
industry.

Motorcycles

Bajaj Auto‘s sale of motorcycles by volume grew by 24.4 per cent in 2006-07 - which was
significantly greater than that of the industry. Consequently, the Company has continued to
increase its market share in motorcycles, which stands at 33.5 per cent in 2006-07, compared
to 30.8 per cent in 2005-06.

As in the previous year, this Management Discussion and Analysis analyses the performance
of Bajaj within different broad segments of the motorcycle industry:

1. The high performance segment: This includes motorcycles in the engine class of
150 cc and above. Bajaj Auto competes here with the Pulsar range and Avenger DTS-
i.
2. The 125 cc segment: Bajaj Auto competes in this category with Discover DTS-i 125
and the recently launched Discover DTS-i 135.
3. The 100 cc segment: Here, Bajaj Auto competes with the Discover 110, Platina and
the CT-100.

The High Performance Segment

(≥ 150cc)

With several variants of its Pulsar DTS-i and the Avenger DTS-i, Bajaj Auto has a
dominating share (61%) in this segment. In 2006-07, the Pulsar DTS-i (the 150 cc and 180 cc
models) was upgraded with sportier looks and industry-first features like digital speedometer
console, LED tail lamps and self cancelling direction indicators. Despite launches by the
competition, Bajaj continues its domination in this category due to these and other product
initiatives. It is a case of being ‗Distinctly ahead‘- the Pulsar range effectively sets the
benchmark for the rest of the industry to follow.
Some other initiatives include a new variant, the Pulsar 200 DTS-i, which was launched in
January 2007 entirely through Bajaj Auto‘s own Pro-biking showrooms. It has been received
very well by the consumers. Yet another upgrade, the Pulsar 220 DTS-Fi, was pilot launched
in April 2007. The Pulsar DTS-Fi (fuel injection) sets a new benchmark in the high
performance segment with a fuel injected engine and features like projector headlamp, clip on
handle bars and rear disc brake.

Due to these upgrades and new launches, sale of the Pulsar range has grown to 40,000
vehicles per month - an increase of 24 per cent over last year.

The 125cc Segment

Bajaj Auto is the pioneer in this segment through its Discover DTS-i. Its success has spawned
a host of introductions from competitors. Despite heightened competition, Bajaj Auto‘s share
in this segment has grown, and stands at 32 per cent with a volume growth of 28 per cent in
2006-07 over last year. To create greater play in this space, a newer version of the Discover
DTS-i with a 135 cc engine has been launched in April 2007. This, along with a styling
upgrade on the existing 125 cc Discover DTS-i, is expected to continue the Company‘s
momentum in this growing segment. Bajaj Auto will demonstrate what ‗Distinctly Ahead
means with the introduction of an all-new engine platform in the second quarter of 2007-08.
This will be a model that has great style as well as a robust design; it will show how
customers can enjoy low emissions at low costs; and demonstrate that there can be both good
performance and great fuel economy.

100cc Segment

Although the largest segment in the motorcycle market, it has been falling in percentage
terms over the last few years. Moreover, it has been beset with intense competition from all
players, accompanied by aggressive pricing initiatives and promotions. It is no secret that
with heightened price sensitivity and competition, this segment is becoming increasingly
commoditized. While the domestic 100 cc segment accounts for 41 per cent of the company‘s
motorcycle sales (numbers) it contributes less than a quarter of the Company‘s revenues.
Hence, reduced margins here affect Bajaj Auto far less than the competition, for which this is
a more dominant play.
However, Bajaj Auto will continue to aggressively play in this segment and expand both
markets as well as its market share. Equally, at the top end of the 100 cc space, it will
encourage consumers to migrate to the 125 cc and 135 cc Discover DTS-i and even the Pulsar
150 cc variants.
 COMPETITORS

Last Price Market Cap. Sales Net Profit Total

(Rs. cr.) Turnover
Assets

Hero 1,700.25 33,951.87 12,356.88 1,281.76 3,879.24

Honda
Bajaj Auto 1,712.35 24,774.88 8,810.36 656.48 3,439.69

TVS Motor 65.90 1,565.41 3,736.67 31.08 1,719.11

LML 9.55 78.30 167.77 -51.62 -26.48

Kinetic 25.15 53.00 15.70 97.61 -5.18

Motor

Bajaj to stop scooter production, focus on motorcycles

The jingle promised that it would stay with us for today and tomorrow as a Strong Symbol of
a Strong India, and two generations grew up humming the tune. But finally when the India of
the license-permit raj gets to take its seat at the global high table, the Scoters that got us there
is fading away.

Bajaj Auto announced on Wednesday that it is exiting the scooter segment altogether,
bringing the curtains down on its iconic product line. The company had stopped making the
Chetak, once the world‘s largest selling scooter, almost three years ago, and according to its
MD Rajeev Bajaj, it will stop production of its non-starter Kristal series by end of the current
fiscal.

―This is a definite watershed moment, because it‘s almost like detaching ourselves from
what constitutes middle class India, and the set of values that constituted middle class India,‖
says Santosh Desai, MD and CEO of Future Brands and a marketing and advertising expert.

CORE COMPETENCIES
Bajaj Auto is one of the oldest and the second largest two wheeler manufacturer in India. In
addition to coping with fierce competition from other players in the two wheeler segment, it
also has to protect its market share from the impending onslaught of low price small cars such
as Tata Nano. Holding on to its position in such a challenging market environment requires
innovative strategies and deep understanding of consumers needs.

Bajaj Auto, sitting on surplus funds of over Rs 7,000 crore, was inundated with offers to
diversify from telecommunications and power generation to software but stuck to core
business of automobiles. Mr. Bajaj said that any company, which wants to survive, must have
quality and service orientation. The automotive sector was in its death throes with some of
the major American automotive manufacturers on the verge of bankruptcy, he said.

The Profitability Pyramid shows that the margin is very low in the sub-125cc segment but
volumes are high. BAL wants to shift users from 100, 115cc segment to 125cc and higher.
Thus Bajaj not only wants to play on the margins but also wants to increase the market share
of 125cc bikes. With its recent launch of XCD 125cc, it has brought in competition for its
own 100cc model, Platina by delivering a bike that is better in all respects (including fuel
efficiency).

Thus, we conclude that Bajaj wants to make a slow departure from 100cc segment. It has
already stopped production of the Discover 125 and will continue production of the Platina
until the demand for the 100cc remains. It has priced the XCD between the Platina and the
Discover and in the future, would ideally wish to project the XCD 125 as its base model.

MARKETING MIX (FOUR P’s)

Combination of marketing elements used in the sale of a particular product. The marketing
elements center around four distinct functions, sometimes called the Four Ps: product, price,
place (of distribution), and promotion. All these functions are considered in planning a
marketing strategy, and any one may be enhanced, deducted, or changed in some degree in
order to create the strategy necessary to efficiently and effectively sell a product.

The term marketing mix refers to the four major areas of decision making in the marketing
process that are blended to obtain the results desired by the organization. The four elements
of the marketing mix are sometimes referred to the four Ps of marketing. The marketing mix
shapes the role of marketing within all types of organizations, both profit and nonprofit. Each
element in the marketing mix—product, price, promotion, and place—consists of numerous
subelements. Marketing managers make numerous decisions based on the various sub
elements of the marketing mix, all in an attempt to satisfy the needs and wants of consumers.

Product

The first element in the marketing mix is the product. A product is any combination of goods
and services offered to satisfy the needs and wants of consumers. Thus, a product is anything
tangible or intangible that can be offered for purchase or use by consumers. A tangible
product is one that consumers can actually touch, such as a computer. An intangible product
is a service that cannot be touched, such as computer repair, income tax preparation, or an
office call. Other examples of products include places and ideas. For example, the state
tourism department in New Hampshire might promote New Hampshire as a great place to
visit and by doing so stimulate the economy. Cities also promote themselves as great places
to live and work. For example, the slogan touted by the Chamber of Commerce in San
Bernardino, California, is "It's a great day in San Bernardino." The idea of wearing seat belts
has been promoted as a way of saving lives, as has the idea of recycling to help reduce the
amount of garbage placed in landfills.

Typically, a product is divided into three basic levels. The first level is often called the core
product, what the consumer actually buys in terms of benefits. For example, consumers don't
just buy trucks. Rather, consumers buy the benefit that trucks offer, like being able to get
around in deep snow in the winter. Next is the second level, or actual product, that is built
around the core product. The actual product consists of the brand name, features, packaging,
parts, and styling. These components provided the benefits to consumers that they seek at the
first level. The final, or third, level of the product is the augmented component. The
augmented component includes additional services and benefits that surround the first two
levels of the product. Examples of augmented product components are technical assistance in
operating the product and service agreements.

Products are classified by how long they can be used—durability—and their tangibility.
Products that can be used repeatedly over a long period of time are called durable goods.
Examples of durable goods include automobiles, furniture, and houses. By contrast, goods
that are normally used or consumed quickly are called nondurable goods. Some examples of
nondurable goods are food, soap, and soft drinks. In addition, services are activities and
benefits that are also involved in the exchange process but are intangible because they cannot
be held or touched. Examples of intangible services included eye exams and automobile
repair.

Another way to categorize products is by their users. Products are classified as either
consumer or industrial goods. Consumer goods are purchased by final consumers for their
personal consumption. Final consumers are sometimes called end users. The shopping
patterns of consumers are also used to classify products. Products sold to the final consumer
are arranged as follows: convenience, shopping, specialty, and unsought goods. Convenience
goods are products and services that consumers buy frequently and with little effort. Most
convenience goods are easily obtainable and low-priced, items such as bread, candy, milk,
and shampoo. Convenience goods can be further divided into staple, impulse, and emergency
goods. Staple goods are products, such as bread and milk, that consumers buy on a consistent
basis. Impulse goods like candy and magazines are products that require little planning or
search effort because they are normally available in many places. Emergency goods are
bought when consumers have a pressing need. An example of an emergency good would be a
shovel during the first snowstorm of the winter.

Shopping goods are those products that consumers compare during the selection and purchase
process. Typically, factors such as price, quality, style, and suitability are used as bases of
comparison. With shopping goods, consumers usually take considerable time and effort in
gathering information and making comparisons among products. Major appliances such as
refrigerators and televisions are typical shopping goods. Shopping goods are further divided
into uniform and nonuniform categories. Uniform shopping goods are those goods that are
similar in quality but differ in price. Consumers will try to justify price differences by
focusing on product features. Nonuniform goods are those goods that differ in both quality
and price.

Specialty goods are products with distinctive characteristics or brand identification for which
consumers expend exceptional buying effort. Specialty goods include specific brands and
types of products. Typically, buyers do not compare specialty goods with other similar
products because the products are unique. Unsought goods are those products or services that
consumers are not readily aware of or do not normally consider buying. Life insurance
policies and burial plots are examples of unsought goods. Often, unsought goods require
considerable promotional efforts on the part of the seller in order to attract the interest of
consumers.

Industrial goods are those products used in the production of other goods. Examples of
industrial goods include accessory equipment, component parts, installations, operating
supplies, raw materials, and services. Accessory equipment refers to movable items and small
office equipment items that never become part of a final product. Office furniture and fax
machines are examples of accessory equipment. Component parts are products that are turned
into a component of the final product that does not require further processing. Component
parts are frequently custom-made for the final product of which they will become a part. For
example, a computer chip could be produced by one manufacturer for use in computers of
other manufacturers. Installations are capital goods that are usually very expensive but have a
long useful life. Trucks, power generators, and mainframe computers are examples of
installations. Operating supplies are similar to accessory equipment in that they do not
become part of the finished product. Operating supplies include items necessary to maintain
and operate the overall firm, such as cleaners, file folders, paper, and pens. Raw materials are
goods sold in their original form before being processed for use in other products. Crops,
crude oil, iron ore, and logs are examples of raw materials in need of further processing
before being used in products. The last category of industrial goods is services. Organizations
sometimes require the use of services, just as individuals do. Examples of services sought by
organizations include maintenance and repair and legal counsel.
Product mix ;Bajaj

Bajaj Platina 100cc

Baja Platina is a bike built by the Bajaj Auto.

Baja Platina borrows extensively from the
Bajaj Wind and Bajaj CT 100 models. The
100 CC Platina was introduced in the year
2006.

Bajaj Platina 125 DTS-Si

The the Platina 125 DTS-Si was introduced

in 2008 it comes with a higher engine
displacement and is powered by Bajaj’s
own patented DTS-Si technology.

 Bajaj Discover 135 DTS-I

The added engine power gives the Bajaj

Discover 135 cc greater performance edge
over 125 cc alternatives with the looks of a
125 cc machine. Digital Twin Spark Ignition
(DTS-i) provides better combustion, power,
and mileage. The electric start without a
kick works like a charm.

Bajaj Pulsar 150 DTSi

4 stoke, DTS-i 150 cc have telescopic front

suspension with anti friction bushes.
Legendary DTS-i technology with proven
track record for more power, more
mileage.
Bajaj Pulsar 180 DTSi

Split seats, Clip on handle bar, Anti scratch

tank pad, Two piece grab rail, Aerodynamic
tank flaps,  Wolf eyed headlamps L.E.D tail
lamp, Black styling, Kick less start

Bajaj Pulsar 220 DT-Si

A new Pulsar model, the 220 DTS-

i which has a constant-velocity
carburetor instead of fuel injection, is the
successor to the fuel injected 220 DTS-Fi.
[
 DTS-Fi production and distribution was
halted in 2009.

Bajaj Avenger 200 DTSi

The new Bajaj Avenger 200 DTSi offers a

good cruising experience with its low-slung
rider seat, phenomenal brake system,
advanced engine and gear box. The 5-speed
gearbox and a neat oil-cooler ensure
lowered temperatures.
Price

The second element in marketing mix is price. Price is simply the amount of money that
consumers are willing to pay for a product or service. In earlier times, the price was
determined through a barter process between sellers and purchasers. In modern times, pricing
methods and strategies have taken a number of forms.

Pricing new products and pricing existing products require the use of different strategies. For
example, when pricing a new product, businesses can use either market-penetration pricing or
a price-skimming strategy. A market-penetration pricing strategy involves establishing a low
product price to attract a large number of customers. By contrast, a price-skimming strategy
is used when a high price is established in order to recover the cost of a new product
development as quickly as possible. Manufacturers of computers, videocassette recorders,
and other technical items with high development costs frequently use a price-skimming
strategy.

Pricing objectives are established as a subset of an organization's overall objectives. As a

component of the overall business objectives, pricing objectives usually take one of four
forms: profitability, volume, meeting the competition, and prestige. Profitability pricing
objectives mean that the firm focuses mainly on maximizing its profit. Under profitability
objectives, a company increases its prices so that additional revenue equals the increase in
product production costs. Using volume pricing objectives, a company aims to maximize
sales volume within a given specific profit margin. The focus of volume pricing objectives is
on increasing sales rather than on an immediate increase in profits. Meeting the price level of
competitors is another pricing strategy. With a meeting-the-competition pricing strategy, the
focus is less on price and more on nonprice competition items such as location and service.
With prestige pricing, products are priced high and consumers purchase them as status
symbols.

In addition to the four basic pricing strategies, there are five price-adjustment strategies:
discount pricing and allowances, discriminatory pricing, geographical pricing, promotional
pricing, and psychological pricing. Discount pricing and allowances include cash discounts,
functional discounts, seasonal discounts, trade-in allowances, and promotional allowances.
Discriminatory pricing occurs when companies sell products or services at two or more
prices. These price differences may be based on variables such as age of the customer,
location of sale, organization membership, time of day, or season. Geographical pricing is
based on the location of the customers. Products may be priced differently in distinct regions
of a target area because of demand differences. Promotional pricing happens when a
company temporarily prices products below the list price or below cost. Products priced
below cost are sometimes called loss leaders. The goal of promotional pricing is to increase
short-term sales. Psychological pricing considers prices by looking at the psychological
aspects of price. For example, consumers frequently perceive a relationship between product
price and product quality.
Promotion

Promotion is the third element in the marketing mix. Promotion is a communication process
that takes place between a business and its various publics. Publics are those individuals and
organizations that have an interest in what the business produces and offers for sale. Thus, in
order to be effective, businesses need to plan promotional activities with the communication
process in mind. The elements of the communication process are: sender, encoding, message,
media, decoding, receiver, feedback, and noise. The sender refers to the business that is
sending a promotional message to a potential customer. Encoding involves putting a message
or promotional activity into some form. Symbols are formed to represent the message. The
sender transmits these symbols through some form of media. Media are methods the sender
uses to transmit the message to the receiver. Decoding is the process by which the receiver
translates the meaning of the symbols sent by the sender into a form that can be understood.
The receiver is the intended recipient of the message. Feedback occurs when the receiver
communicates back to the sender. Noise is anything that interferes with the communication
process.
There are four basic promotion tools: advertising, sales promotion, public relations, and
personal selling. Each promotion tool has its own unique characteristics and function. For
instance, advertising is described as paid, nonpersonal communication by an organization
using various media to reach its various publics. The purpose of advertising is to inform or
persuade a targeted audience to purchase a product or service, visit a location, or adopt an
idea. Advertising is also classified as to its intended purpose. The purpose of product
advertising is to secure the purchase of the product by consumers. The purpose of
institutional advertising is to promote the image or philosophy of a company. Advertising can
be further divided into six subcategories: pioneering, competitive, comparative, advocacy,
reminder, and cooperative advertising. Pioneering advertising aims to develop primary
demand for the product or product category. Competitive advertising seeks to develop
demand for a specific product or service. Comparative advertising seeks to contrast one
product or service with another. Advocacy advertising is an organizational approach designed
to support socially responsible activities, causes, or messages such as helping feed the
homeless. Reminder advertising seeks to keep a product or company name in the mind of
consumers by its repetitive nature. Cooperative advertising occurs when wholesalers and
retailers work with product manufacturers to produce a single advertising campaign and share
the costs. Advantages of advertising include the ability to reach a large group or audience at a
relatively low cost per individual contacted. Further, advertising allows organizations to
control the message, which means the message can be adapted to either a mass or a specific
target audience. Disadvantages of advertising include difficulty in measuring results and the
inability to close sales because there is no personal contact between the organization and
consumers.

The second promotional tool is sales promotion. Sales promotions are short-term incentives
used to encourage consumers to purchase a product or service. There are three basic
categories of sales promotion: consumer, trade, and business. Consumer promotion tools
include such items as free samples, coupons, rebates, price packs, premiums, patronage
rewards, point-of-purchase coupons, contests, sweepstakes, and games. Trade-promotion
tools include discounts and allowances directed at wholesalers and retailers. Business-
promotion tools include conventions and trade shows. Sales promotion has several
advantages over other promotional tools in that it can produce a more immediate consumer
response, attract more attention and create product awareness, measure the results, and
increase short-term sales.
 Public relations is the third promotional tool. An organization builds positive public relations
with various groups by obtaining favorable publicity, establishing a good corporate image,
and handling or heading off unfavorable rumors, stories, and events. Organizations have at
their disposal a variety of tools, such as press releases, product publicity, official
communications, lobbying, and counseling to develop image. Public relations tools are
effective in developing a positive attitude toward the organization and can enhance the
credibility of a product. Public relations activities have the drawback that they may not
provide an accurate measure of their influence on sales as they are not directly involved with
specific marketing goals.

The last promotional tool is personal selling. Personal selling involves an interpersonal
influence and information-exchange process. There are seven general steps in the personal
selling process: prospecting and qualifying, pre-approach, approach, presentation and
demonstration, handling objections, closing, and follow-up. Personal selling does provide a
measurement of effectiveness because a more immediate response is received by the
salesperson from the customer. Another advantage of personal selling is that salespeople can
shape the information presented to fit the needs of the customer. Disadvantages are the high
cost per contact and dependence on the ability of the salesperson.

For a promotion to be effective, organizations should blend all four promotion tools together
in order to achieve the promotional mix. The promotional mix can be influenced by a number
of factors, including the product itself, the product life-cycle stage, and budget. Within the
promotional mix there are two promotional strategies: pull and push. Pull strategy occurs
when the manufacturer tries to establish final consumer demand and thus pull the product
through the wholesalers and retailers. Advertising and sales promotion are most frequently
used in a pulling strategy. Pushing strategy, in contrast, occurs when a seller tries to develop
demand through incentives to wholesalers and retailers, who in turn place the product in front
of consumers.

Incase of Bajaj:

Bajaj is always known for its outstanding ads over the period of time. Since its
inception, Bajaj has come out with variety of ads and were always successful in their
advertisements. Scooters were well known by the brand name of Bajaj. Be it any scooter, one
used to recognize it by the brand name Bajaj. This was the identity a decade ago which the
Bajaj has still maintained. Bajaj is always known for its ads without well-known brand
ambassadors which is again a plus point to its cart as it saves a huge cost in terms of brand
ambassadors unlike Hero Honda and TVS. Prior, Bajaj used to convey the feeling of
‘Indianness’ in its ads. With a punch line ‘Hamara Bajaj’ Bajaj drove into everybody’s
hearts and the title song of ‘Naye Bharat Ki Naye Tasveer’ added a great value to its
mobikes and scooters.

A couple of years back, Bajaj had introduced an advertisement which promoted all the
different ranges it had, wherein they had shown each product they had with a feeling of
Indianness.

A year back, Bajaj introduced DTSi technology upgrading its always successful
PULSAR 150cc and 180cc. Though Bajaj had changed its identity it still dominates for its
creativity in ads.

PULSAR 150cc (Definitely Male)

The concept of Definitely Male was well accepted by the people and Bajaj came out with
some astonishing ads. Though the DTSi technology was new, people accepted it very well. It
easily conveyed the message it wanted to. The following picture strips conveys the
advertisement: Getting on to his bike, a man gets all set to make a move. As he puts his
helmet on, a message appears on the windshield, 'Partially sunny from 16:37 hrs.' while the
biker cruises through the city, some army men are out for their jog. Just before they cross a
road, a zebra crossing forms ahead them and disappears after them, while the biker waits
patiently.
Place

The fourth element of the marketing mix is place. Place refers to having the right product, in
the right location, at the right time to be purchased by consumers. This proper placement of
products is done through middle people called the channel of distribution. The channel of
distribution is comprised of interdependent manufacturers, wholesalers, and retailers. These
groups are involved with making a product or service available for use or consumption. Each
participant in the channel of distribution is concerned with three basic utilities: time, place,
and possession. Time utility refers to having a product available at the time that will satisfy
the needs of consumers. Place utility occurs when a firm provides satisfaction by locating
products where they can be easily acquired by consumers. The last utility is possession
utility, which means that wholesalers and retailers in the channel of distribution provide
services to consumers with as few obstacles as possible.

Channels of distribution operate by one of two methods: conventional distribution or a

vertical marketing system. In the conventional distribution channel, there can be one or more
independent product manufacturers, wholesalers, and retailers in a channel. The vertical
marketing system requires that producers, wholesalers, and retailers to work together to avoid
channel conflicts.

How manufacturers store, handle, and move products to customers at the right time and at the
right place is referred to as physical distribution. In considering physical distribution,
manufacturers need to review issues such as distribution objectives, product transportation,
and product warehousing. Choosing the mode of transportation requires an understanding of
each possible method: rail, truck, water, pipeline, and air. Rail transportation is typically used
to ship farm products, minerals, sand, chemicals, and auto mobiles. Truck transportation is
most suitable for transporting clothing, food, books, computers, and paper goods. Water
transportation is good for oil, grain, sand, gravel, metallic ores, coal, and other heavy items.
Pipeline transportation is best when shipping products such as oil or chemicals. Air transport
works best when moving technical instruments, perishable products, and important
documents.

Another issue of concern to manufacturers is the level of product distribution. Normally

manufacturers select from one of three levels of distribution: intensive, selective, or
exclusive. Intensive distribution occurs when manufacturers distribute products through all
 wholesalers or retailers that want to offer their products. Selective distribution occurs when
manufacturers distribute products through a limited, select number of wholesalers and
retailers. Under exclusive distribution, only a single wholesaler or retailer is allowed to sell
the product in a specific geographic area.

Bajaj’s place mix:

DISTRIBUTION NETWORK

Bajaj Auto is restructuring its marketing and distribution network to address the different
requirements of the urban and rural markets. The company has recently launched its high-end
bike dealership — Probiking — and is now in the process of categorizing its existing 479
dealership network into urban and rural dealerships. Rajiv Bajaj, MD, Bajaj Auto said,
‗‗Besides Probiking, which is our channel for high-end bikes, we will split the rest of the
two-wheeler dealer network into rural and urban. This is being done to cater to the different
needs of the rural and urban customer in terms of product, infrastructure, working capital,
financing and servicing.

As competition increases in the Indian motorcycle industry, Bajaj Auto Ltd and TVS Motor
Company are chalking out aggressive marketing plans to race ahead in this sector. In a bid to
regain its leadership position, Bajaj Auto is planning to expand its distribution network to
reach out to a wider target audience. Likewise, TVS Motor Company is all set to extend the
number of its dealership and service centers in the near future. Clearly, Bajaj Auto and TVS
Motor are shifting gears.

On Bajaj Auto‘s distribution strategy, says Bajaj Auto vice-president (business & product
development) RL Ravichandran: ―We plan to expand our dealership network and service
centres to improve our penetration into smaller towns across the country.

In fact, we plan to increase the number of dealerships and service centres by 20 to 25 per
cent. With this move, we will be able to cover towns with a population of two to three lakh.‖

Incidentally, the company is all set to unveil its entry-level motorcycle called BYK this
month. ―Priced at Rs 30,000, BYK is positioned as a ‗stylish bike targeted at the entry-level
audience‘. Ogilvy & Mather India will be designing the communication strategy for the new
bike from the Bajaj stable. As part of its offline promotion strategy, the company recently
hosted the Bajaj Boxer Indian Telly Awards 2002 on Star Plus to promote its Bajaj Boxer
range.

SUPPLY CHAIN MANAGEMENT

Vendors – Bajaj Auto has a consolidated base of 180 vendors supplying components to all
Bajaj Auto‘s plants. A large number of vendors are located either near Pune or Aurangabad.
Those that are far are encouraged to tie up with third party logistics providers, who along
with local vendors supply multiple deliveries daily to Chakan & Waluj plant. Bajaj Auto has
extended the TPM (Total Preventive Maintenance) to vendor as well. Around 60% by value
of Bajaj vehicle is outsourced. Virtually no components are imported & 70% of Bajaj Auto‘s
requirements are sourced from within the state of Maharashtra. To improve quality, Bajaj
Auto has also begun actively assisting its suppliers in finalizing joint ventures with
counterparts in Japan, Italy, Taiwan & Spain.

Dealers- Bajaj Auto has a network of 550 dealers and over 1,582 authorized service centers.
The company plans to increase the number of dealers to 1274 by this financial year. A large
number of these new dealerships are planned in semi-urban & rural areas.

During the financial year 2007-08, the company extended BASS (Bajaj Auto Service
Standard) to standardize the workshops of 250 dealers & 50 authorized service centers. These
programmers included a uniform external & internal look. This initiative has improved work
hygiene, promoted consistent & better service quality, & greater productivity. Faster
turnaround of serviced vehicles coupled with higher spare parts sales in converting such
workshops into independent profit centers for the dealers.
Operation Detail

Manufacturing locations

Akurdi, Pune 411035

This is one of the oldest plant of bajaj auto ltd with production capacity of 0.6 million
vehicles/ year. The plant has been closed in order to equip for four wheeler production

Bajaj Nagar, Waluj Aurangabad 431136

This is second plant with production capacity of 0.86 million/ year.products manufactured
here are Kristal, XCD and platina andcommerial GC series

Chakan Industrial Area, Chakan , Pune 411501

This is the biggest plant of bajaj auto Production Capacity of 1.2 million/ year , Product
manufactured here are pulsar and avenger and commercial Ge series
Pantnagar , Uttarakhand
The most advanced plant of bajaj auto .It has Capacity of 0.9 million vehicles per year .
product manufactured here are platina and XCD.

Infrastructure facilities:

Bajaj Auto Ltd. has well designed infrastructure facilities. They highly care of clarity
and arrangement. The whole plant has divisional area like, offices, operation house, godown,
and packing department.Bajaj Auto Ltd. l has modern technological machines, from this it
can produce products.These machinery arranged in operation department systematically. The
production process is step by step so as per this the machinery also arrangeBajaj provide all
the best facilities to their employees, like parking, canteen, rest room, and also proper
working conditions. They greatly care of their employees. They pay on monthly basis and
also give bonus on special occasions. In this way Philips can compete with best plant,
machinery, technology and human relationship
Transport & Logistics

This function of distribution is not owned by the company in any form. This is outsourced in
toto to the third party vendors. The third party here is Transport Corporation of India (TCI)
and a few other private vendors. The fleet to be transported is custom-designed for Bajaj
Auto by the vendor. Key Facts
There are twenty vendors all across India
 OSL
 Jamuna Transport
 Sumit Transport
 A Transit Insurance Compliance Letter(TICL) is signed between the two parties
 The local level sub-dealer sometimes gets to decide the last mile logistics, as he can
decide to pick up the vehicles himself or have it transported to him
 Logistics of the vendor is decided by the company
 Freight charge is built-in in the product price
Relation with the supplier firm :
Bajaj auto ltd believes in good relationship with its suppliers and customers. The
suppliers who supply raw material to the company, Bajaj auto pay them regularly. If any
when advanced payment required Bajaj also pay advance for bulky consumption. During
annual day of the company, Philips rewarded those suppliers who contracted with company
for whole year and survive company without any problems.

Services provided by Bajaj Auto to the dealer

 Workshop Training
 In a month:
 30-40 Mechanics can be trained per dealer
 15-20 Sales personnel can be trained per dealer
 New Product Launch
 Information is percolated around a month before the product is to be launched
 The date of launch can be rescheduled in case the current stocks of the dealer are not
getting cleared.
 Promotional Activities
Key Deliverables in terms of Sales & Distribution Management

 Order Tracking-Taking a daily account of the order received from various dealers
and Regional Offices (RO). Orders from dealers are punched in by dealer themselves.
Orders are followed up in the system only if the credit limit is not crossed. This credit
limit is preset into the system depending upon the dealer and his/her track record.
 Packaging-Packaging in factory is outsourced to third party vendor. These vendors
are generally from the Transport & Logistics partners
 Despatching Goods-Goods need to be despatched via third party vendor TCI. State
corporations and other private players are also part of the vendor list.
 Generating Invoice & Waybill-These documents need to be generated and
despatched to the respective dealer

Key Role & Deliverables of Depots

Setting up depots is a geographical strategy adopted by Bajaj Auto. But this does not mean
that the company has gone all out to open a large number of depots. It has chosen strategic
locations. The key role played by depots is that they are meant to cater to any sudden rise in
demand of vehicles, and to cover the existing geographic span of India. When we spoke to
the management, they explained to us the reasons behind having a depot in Kharagpur. There
are two reasons for which Kharagpur was chosen to hold a depot for Bajaj Auto. They are as
follows:
 Catering to a sudden shooting up of demand- In Bengal itself, it is common knowledge
that during the festive season which spans from September to November, there is a huge
demand as people spend more on festival extravaganza, and it is considered an
auspicious time to buy household gadgetry. There is a conspicuous rise in the sales of
white goods, motor vehicles and jewellery.

 Reaching the states of the North-East- As per the people at Bajaj, “We take 15 days to
reach the North-East if we go via the carrying and forwarding agent concept. Generally
bikes reach West Bengal in 7-8 days. The bottleneck is the Darjeeling route. Hence,
came in the concept of a depot whereby we can reach the North-East in the same time,
instead of experiencing a lag of almost a week.”
 MARKET RESEARCH

According to Redman and Mory

“Research is systematized effort to gain new knowledge”.

According to Clifford Woody

“Research comprises defining and redefining problems, formulating hypothesis or

suggested solutions, collecting organizing and evaluating data, making deductions and
reaching conclusions and at last carefully testing the conclusions to determine whether they
fit the formulating hypothesis”.

It has also defined as ‘a careful investigation or inquiry especially through search for new fact
in any branch of knowledge’.

Research comprises defining research problems, formulates the hypothesis, research

design including sample designing, data collection, analysis of data, interpretation,
conclusion on the basis of interpretation. Apart from it suggestions and recommendations are
also the part of research.

The marketing research process involves a number of inter-related activities. In this process
various inter-woven into each other and each step will have some influence over the
following steps.

In marketing research, even though our focus is on particular step, other inter related step are
also being look into simultaneously. As one activity is completed, our focus automatically
naturally shifts from one to another.

Marketing research is the systematic design, collection, analysis and reporting of data and
finding relevant to a specific to a specific marketing situation facing the company.

Research methodology means the method carried out to study out to study the problem. Its
shows the type of research design, sources used to acquire data, handling challenges during
the course of study.

The following are the steps:

 Formulating the research problem
 Choice of research design
 Determining the source of data.
 Designing the data collection form
 Determining sampling design and sampling size
 Conducting the field survey
 Analyzing the collected data
 Preparing the research report

RESEARCH DESIGN

The formidable problem that follows the task of defining the task of defining the research
problem is the design of the research project, popularly known as the ‘research design’. To
define the term research design it can be said “a research design is the arrangement of
conditions for collection and analysis of data in a manner that aims to combine relevance to
the research purpose with economy in procedure”. In fact the research design is the
conceptual structure within which research is conducted; it constitutes the blueprint for the
collection, measurement and analysis of data. As such the design includes an outline of what
the researcher will do from writing the hypothesis and its operational implications to the final
analysis of data.

It answers some of the questions related with the report like – what is the study about, why
the study is being made, where and how the study is to be carried out, what type of data is
required and where it can be found, what will be the sample design, what technique is to be
adopted while carrying the study etc.

Features of a good design:

 It must be flexible enough.

 Appropriate and efficiency must lie in the report.
 It should minimize bias and maximize the reliability of the data collected.
 The design must be suitable as per the requirement of the case.
Research design used in this report

 Literature Research: Analysis with the help of available data.

 Experience Survey: Consulting with the experienced officials for a quick
 Summary of the main issue.

RESEARCH OBJECTIVE

 The primary objective behind the project was to study the marketing mix of Bajaj
automobiles sector
 Secondary objectives;
- To know the perception of customers regarding bikes.
- To study the competitive condition’s is existence among different two wheeler's

- To study effect of advertisement on the purchasing decision of the consumers.

- To determine the factors influencing the choice of customers regarding bikes.

SIGNIFICANCE OF THE STUDY:

 To know about the customer preference and decision process with regard

to Bajaj’s bike.

 To know the Basic consumer buying behavior and the reasons because of

which they switch from one company to another.

 To know about the company’s details (profile, Products)

 This study would help in revealing the type and specific qualities of the

bikes offered by the company to their consumers.

 To study the satisfaction level of consumers who uses bikes.

 To study the factors influencing consumers to buy Bajaj’s bikes.

 To study effect of advertisement on the purchasing decision of the

consumers
 RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem, which is a

science of study how research is done scientifically. Thus research methodology encompasses
the research methods or techniques; the research is capable of being evaluated either by the
researcher himself or by others.

 SAMPLING
Sampling may be defined as the selection of some parts of an agreement or totality for the
purpose of study. All the items in any field of inquiry constitute a universe or population, a
complete enumeration of all the items in the population is known as Census inquiry. But
when the field of inquiry is large this method becomes difficult to adopt because of the
limited no. of resources involved in the case sample survey method is chosen under which
units are selected in such a way that they represent the entire universe.

SAMPLING DESIGN

 CENSUS METHOD: - All the items in any field of inquiry constitute a ‘Universe’ or
‘Population’. A complete enumeration of all the items in the ‘Population’ is known as a
Census inquiry. It can be presumed that in such an inquiry, when all items are covered, no
element of chance is left and highest accuracy is obtained. But in practical it is not true in
all cases. This type of inquiry involves a great deal of time, money and energy. Therefore,
when the field of inquiry is large, this method becomes difficult to adopt because of the
resources involved.

 SAMPLING METHOD:- When field studies are undertaken in practical life, consideration
of time and cost almost invariably lead to a selection of respondents i.e. selection of only
few items. The respondent selected should be as representative of total population. These
respondents constitute what is technically called a ‘Sample’ and the selection process is
called ‘Sampling Technique’. The survey so conducted is known as ‘Sample Survey’.
 Implementation of Sample Design: - A sample design is a definite plan for obtaining a
sample from a given population. It refers to the technique or the procedure the researcher
would adopt in selecting items for the sample. Sampling design may as well lay down the
number of items to be included in the sample i.e. the size of sample. Sample design is
determined before the data are collected.

Steps In Sampling Design :- While developing a research design following items are
taken into consideration:-

I. Type of universe: - First and the foremost step are to clearly define the universe to be
studied. As I have taken the area of Jawahar Nagar(Raipur), so for me here the universe is
Jawahar Nagar area. No doubt it is a finite universe but the area is very big and can’t be
covered easily due to shortage of time.

II. Sampling unit: - A decision has to be taken concerning a sampling unit before selecting
sample. Here my sample unit includes people who own bikes.

III. Size of sample: - This refers to the number of items to be selected from the universe to
constitute a sample. Here I have taken the sample of 50 people who have bikes.

IV. Parameters of interest: - In determining the sample design, one must consider the
question of the specific population parameters which are of interest. Here I had taken only
persons who own their bike.

Sampling procedure: - Finally the technique of selecting the sample is to be dealt

with. That means through which method the sample has been collected. There are

various types of selecting the sample.

 LIMITATIONS OF THE STUDY:

Various hindrances occurred while carrying out the research. They have acted as limitation
of the study and a few of them are:-

 Short time period: The time period for carrying out the research was
short as a result of which many facts have been left unexplored.
 Small area for research: The area for study was Yamuna Nagar which
is quite a small area to judge out the consumer preferences for the various brands of
television.

 Lack of resources: Lack of time and other resources as it was not

possible to conduct survey at large level.

 Small no. of respondents: Only 200 respondents have been chosen

which is a small number, to represent whole of the population of college going
students of Yamuna Nagar.

 Unwillingness of respondents: While collection of the data many

consumers were unwilling to fill the questionnaire. Respondents were having a
feeling of wastage of time for them.
 Confinement of Price: - Price of the bikes is confined only to a
particular period. So the respondents were not able to fill in proper price of their
bikes
 DATA ANALYSIS AND INTERPRETATION

Q1. Which bike do you have ?

BRANDS NO. OF RESPONDENTS

HERO HONDA 32

BAJAJ 14

TVS 2

ANY OTHER 2

TOTAL 50

BIKE
HERO HONDA BAJAJ TVS OTHER

4%
4%

28%

64%

Interpretations:

 Hero Honda is the most preferred brand in the city as 64% people like to have a Hero Honda
bike.
 TVS & other bikes shares the equal proportion of the market in automobile market.
 BAJAJ auto placed 2nd position in the market.
Q2. Which Model do you have ?

HERO HONDA BAJAJ

Splendor 09 Platina 06
Karizma 04 Discover 02
Passion 08 Pulsar 150/180 05
CD Dawn 11 Avenger 01
TOTAL 32 14

12 6

10 5

8 4
SPLENDOR PLATINA
PASSION 3 DISCOVER
6
KARIZMA PULSAR
CD Dawn AVENGER
4 2

2 1

0 0
HERO HONDA BAJAJ

Interpretations:

 CD Dawn and Splendor of Hero Honda is the most popular bike amongst the customers.
 Bajaj Platina is the most preferred brand for the customers of BAJAJ Automobiles.
 Bajaj Pulsar 150/180 is the most preferred in sports segment.
 Q 3. In which family Income level do you Fall?

INCOME LEVEL NO. OF RESPONDENT

100000 - 200000 25

200000 - 300000 18

300000 - 400000 5

Above 400000 2

TOTAL 50

25

20

100000 - 200000
15
200000 - 300000
300000 - 400000
Above 400000
10

0
INCOME LEVEL

Interpretations:

 50% People are having Income level of Rs. 100000-200000 and belongs to the middle class
family.
 10% People are having income of Rs. 3Lacs to 4 Lacs.

Q 4. For how long do you own a bike?

 No. Of Years No. Of Respondents

0-1 Years 4

1-2 Year 29

2-3 Year 10

Above 3 Years 7

TOTAL 50

30

25

20 0 - 1 YEAR
1-2 YEARS
15 2-3 YEARS
ABOVE 4 YEARS

10

0
NO. OF YEARS

Interpretations:

 Most of the people live in the city are willing to own their bike for 1-2 years as their
proportion are 58%.
 Only 14% people are loyal with their brand as they believe to own their bike for more than 3
years.
 8% people used to have their bike less than an year.
 Q 5. For what purpose do you use your Motor Bike?

  Hero Honda Bajaj

Office Purpose 12 4

Personal purpose 8 1

Adventure 10 8

Other 2 1

12

10

8
OFFICE PURPOSE
PERSONAL USE
6
Adventure
OTHERS
4

0
HERO HONDA BAJAJ

Interpretations:

 25% of the people prefer to have a Hero Honda bike for their office purposes.
 10/50 people prefer Hero Honda for adventure whereas 16% people are willing to own a
BAJAJ bike for adventure.
 BAJAJ provide better products for adventure than their office purpose bikes.

Q6. How do you come to know about this Motor Bike?

 Hero Honda Bajaj

Newspaper 10 04

Television 12 05

Magazine 04 00

Friends & Relative 06 04

20

18

16

14

12 NEWSPAPER
TELEVISION
10 MAGAZINE
8 FRIENDS & RELATIVES

0
HERO HONDA BAJAJ

Interpretations:

 BAJAJ & Hero Honda both attracts people from the advertisement to sell the products.
 Reference group for BAJAJ also help to create a good demand in the market as it secured.
 BAJAJ could not succeed to attract the people through magazines whereas 8% people
attracts with the advertisement made by the Hero Honda through magazines

Q7. Does Advertisement Influence your decision in choosing a Motor Bike?

 Particulars No. Of Respondents

Yes 26

No 19

Can't Say 5

ADVERTISEMENT
YES NO CAN'T SAY

5%; 10%

26%; 52%
19%; 38%

Interpretations:

 52% people accepts that advertisement help to chose any brand in the market.
 10% could not judge whether advertisement is helpful for choosing any brand or not.

Q8 Do you have full knowledge about Bikes before buying?

 Hero Honda Bajaj

Yes 23 12

No 09 02

25

20

15
YES
NO
10

0
HERO HONDA BAJAJ

Interpretations:

 Nearly 70% of the customers holds full knowledge about the product which they buy.
 Whereas for 25% of rest reference groups dominates in buying a product.

Q9. Which Factor below Influence your decision?

  Particulars Hero Honda Bajaj

Price 4 4

Mileage 11 5

Quality 8 2

Resale Value 7 1

Status Symbol 2 2

12

10

8
PRICE
MILEAGE
6 QUALITY
RESALE VALUE
STATUS SYMBOL
4

0
HERO HONDA BAJAJ

Interpretations:

 Mileage of the bike influences people mostly to prefer the same. 22% people prefer Hero
Honda whereas 10% people prefer BAJAJ because of its mileage.
 When there is a matter of price of the bike, people give priority to BAJAJ.
 16% people go for the Hero Honda bike because of its Quality.

Q10. How would you rate the following factors of Bikes with
respect to different company?
 Hero Honda Bajaj

Mileage 19 13

Price 17 29

Pick up 11 19

Maintenance 36 07

Look & Shape 13 27

Brand Image 33 09

40

35

30

MILEAGE
25
PRICE
PICK UP
20
MAINTENANCE
LOOK/SHAPE
15 BRAND IMAGE

10

0
HERO HONDA BAJAJ

Interpretations:

 38% people prefer Hero Honda whereas 26% people prefer BAJAJ because of its mileage.
 60% people prefer BAJAJ for pricing whereas it is 34% for Hero Honda.
 54% are attracted towards Bajaj products for its looks and style .
 Hero Honda has the highest 66% for its brand positioning and image in the market.

Q11. Which brand products are easily available to you ?

BRANDS No. Of Respondents

HERO HONDA 12
 BAJAJ 10

TVS 20

HONDA 2

ANY OTHER 6

TOTAL 50

AVAILABILITY
HERO HONDA BAJAJ TVS HONDA OTHER

6; 12%
2; 4%
12; 24%

10; 20%
20; 40%

Interpretations:

 TVS is the most easiest available product for the customers as it secures 40% .
 BAJAJ & Hero Honda provide same facility for distributing product to the customers.
 People are not satisfied with the availability of Honda products as their acceptance level was
only 4%.

Q12. Does any celebrity endorsing a product affects your buying decision ?
 Particulars No. Of Respondents

Yes 29

No 19

Can't Say 02

CELEBRITY ENDORSEMENT
YES NO CAN'T SAY
2%; 4%

19%; 38%

29%; 58%

Interpretations:

 6o % of customers are affected by the endorsement of products by any celebrity for buying
any product.
 38 % of people purchase products not by seeing the celebrity but by assessing the quality,
mileage and other factors.

Q13. Which company according to you facililate with new technology ?

BRANDS NO. OF RESPONDENTS

 BAJAJ 20

HERO HONDA 9

SUZUKI 2

HONDA 3

ANY OTHER 16

TOTAL 50

NEW TECHNOLOGY
HERO HONDA BAJAJ SUZUKI HONDA OTHER

9; 18%

16; 32%

3; 6% 20; 40%

2; 4%

Interpretations:

 Bajaj provide people with products which are holds unique and extra ordinary features.
 Others which include Yamaha ,TVS etc are considered to be brands which holds second
position in this category.

FINDINGS
1. The reason behind their preference is found that hero Honda is more easily available
as well as the brand value of Hero Honda is much stronger than Bajaj but still there
are many people who are associated with this brand.

2. Bajaj Platina 100 cc has been awarded best two wheeler in commuter segment for
giving highest mileage and low maintenance. Thus giving tough competition to Hero
Honda and strengthening its position in market.

3. Bajaj has launched a new product in its 150 segment and an upgrade of Discover 135
as Discover 150. The main focus is on the rural customer as this market emphasizes
on mileage thus company has tried to give a bike with sporty look, feel keeping the
mileage same as of 125 -135 segment. The punch line of this new product is “
MORE EXCITEMENT PER LITRE”.

4. Bajaj is being known for its scooters from many decades but due to changing
trends ,needs and value for money the market has been shifted towards more to motor
bikes and mopeds therefore bajaj has discontinued its scooter range and the total
concentration of the company is towards the motor cycle range.

5. At present Bajaj has discontinued all its non geared scooters (Mopeds) thus a vacuum
has been created in the market and so Honda Activa and Suzuki Access are the only
players left which have a monopoly in this segment.

6. Bajaj Auto Ltd. Has a view of not endorsing its products by any celebrity rather
beliefs in promoting its products under the goodwill of Bajaj brand which has been
entrusted since decades.

7. BAL beliefs in offering its products at price which itself is inevitable in the market
therefore beliefs in giving monitory benefits to its customer rather than expending a
lot in the advertisement which gradually increases the cost of the product.
8. BAL has launched Pulsar 220 and Pulsar 135 in 2010 seeing the immense success
of its product Pulsar 150 and 180 which has been winning awards from past 3 years
continuously.

9. Bajaj launched Kawasaki Ninja 250 in month of May 2010 in higher segment so as to
compete with other brands such as Suzuki, Honda and Hero Honda. This product
would strengthen the market position of Bajaj.

10. For improving sales Bajaj has a strategy of organizing ‘ LOAN CUM EXCHANGE
MELA’ where on spot exchange and finance made available to the customers with
attractive schemes.

11. Weekly Leakage Analysis is done so as to evaluate the shortcomings and regular
training and development programs are been organized for the sales team.

12. Vandana Auto’s Service Centre is included in India’s top 5 service center’s for its
revenue, volume and customer satisfaction.

13. EMS (Enquiry Management System) a unique practice carried on by Vandana Auto,
Raipur
A card is prepared of every customer who visits the showroom and a sales
representative follows up the customer for 6 times the date he/she says to do. This
system works at the micro level and is a effective way of management.

14. People those who are using Bajaj bikes are mostly satisfied with the service and
performance of the products they are using and I have also found few hard core brand
loyals for Bajaj which is a good sign for the company.

15. The main attraction of the company is its mileage factor which is the most important
and major aspect for any individual secondly looks and brand image is also one of the
reasons.
16. Bajaj auto’s most famous and fast selling product for youth is Bajaj Pulsar with
stylish looks and many add on features as compared to other products of Bajaj auto
then Bajaj Discover is also getting good response as it is a bike for general use and it
is useful for almost all age grouped people.

17. Celebrities are also playing a major role in the sales and promotion of any product or
brand because when familiar faces promote something it becomes easy for the public
to remember that product and they develop an imaginary picture in their mind about
the brand and the product and it somewhere affects their buying decision also.

18. Financing system of the company is very much beneficial for the brand as they have
developed their own financing facility which is not possible for all brands this system
reduces the work of customers as they can easily get finance from the same company
and this system brings add on feature for the brand which helps in functioning of the
company.

19. It is also found that among bajaj bikes consumers choice is bajaj pulsar and baja
avenger mostly, as maximum bike riders are youth who always prefer sporty bikes. It
is also found that these bikes provide looks, style, low maintenance as well as
mileage.

20. From the analysis it is found that consumers if not prefer bajaj , they find hero Honda
to be the second best option or substitute for it. Hero Honda provides stylish looks to
bikes giving it a sporty touch and also has a great brand value.

CONCLUSION
 As Hero Honda is dominating the two wheeler industry in India they are the major
players in this industry but Bajaj auto is also trying their level best to maintain their
reputation in the society and get maximum returns. Bajaj has unique quality of
providing better mileage which helps it in growing its market share and consumers
loyalty.

 According to the result of analysis and my personal observation, Bajaj must focus
more on model designing so that it can give more competitive look to its
products(bikes) to beat its competitors like Hero Honda.

 Bajaj auto must keep on working in the same pattern but they must not forget their
prime objective i.e. loyalty which will pay them greater returns in future.

 Bajaj is coming with various beneficial schemes for the people which are one of the
prime attractions of the customers.

 As Bajaj group of industries is always been associated with the nation’s welfare
activities they always try to support the society and its people right from the time of
independence.

 Finally from the above analysis I can conclude that Bajaj auto is doing fairly a good
job through various ways and people are satisfied with their services and products.

 Globally Bajaj auto is been recognized which is a great achievement for the company.

 Bajaj is coming with various beneficial schemes for the people which are one of the
prime attractions of the customers.

 Future of this brand is very bright if they stick to their policies and they have brought
tremendous changes and improvement in the two wheeler industry.

BIBLIOGRAPHY
1. WEBSITES

 WWW.GOOGLE.COM
 WWW.BAJAJAUTO.COM
 WWW.WIKIPEDIA.COM
 WWW.GOOGLEIMAGES.COM

2. BOOKS

 RESEARCH AND METHODOLOGY

 MARKETING MANAGEMENT

3. OTHER REFRENCES

 CUSTOMER DATA OF BAJAJ AUTO

 BAJAJ AUTO ENCYCLOPEDIA