A PROJECT REPORT

ON

BAJAJ AUTOMOBILES

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER IN COMMERCE (M.COM) TO PUNE UNIVERSITY.

SUBMITTED BY:

COLLEGE OF COMMERCE & ARTS, (Affiliated to PUNE University)

DECLARATION

I hereby declare that this project entitled BAJAJ AUTOMOBILES. Is an original work and all the information about the Bajaj automobile is taken down from the Bajaj website & some other sites. All sources of information and help are authentic and have been acknowledged in the project report.

Submitted By:

CERTIFICATE

This is to certify that, student of College name, Pune affiliated to Which university

M.COM 2nd Year

Pune University has completed his project under my supervision. She made this project with my complete satisfaction and as per the requirement of the course.

ACKNOWLEDGEMENT

With an overwhelming sense of gratitude, I acknowledge the valuable guidance and consistent encouragement extended to me by our knowledgeable faculty members with whose guidance, I am able to accomplish this endeavor.

Their technical acumen and years of experience have provided me with crucial inputs at a critical stage.

I am especially thankful and grateful to my project guide Mr. who motivated and helped me in completing my project.

A JOURNEY FROM
HAMARA BAJAJ TO DISTINCTLY AHEAD
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 threewheelers. 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 out100, 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 over1,500 authorised service centres 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 highend, performance bikes. These stores are called Bajaj Pro biking". 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 of 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.

INTRODUCTION

Bajaj Auto Ltd is one of the leading two & three wheeler manufacturers in India. The company is well known for their R&D, product development, process engineering and low-cost manufacturing skills. The company is the largest exported of two and three-wheelers in the country with exports forming 18% of its total sales. The company has two subsidiaries, namely Bajaj Auto International Holdings BV and PT Bajaj Indonesia. The company was incorporated on April 30, 2007 as a wholly owned subsidiary of erstwhile Bajaj Auto Ltd (the holding company) with the name Bajaj Investment & Holding Ltd. The company received the certificate of commencement of business on May 7, 2007. The holding company operated in the segments, such as automotive, insurance and investment, and others. Considering the growth opportunities in the auto, wind-energy, insurance and finance sectors, and the holding company demerged their activities into three separate entities, each of which can focus on their core businesses and strengthen competencies. The auto business of the holding company along with all assets and liabilities pertaining thereto including investments in PT Bajaj Auto Indonesia and in a few vendor companies transferred to Bajaj Investment & Holding Ltd. In addition a total of Rs 15,000 million in cash and cash equivalents also transferred to Bajaj Investment & Holding Ltd. As the part of the scheme, Bajaj Holdings and Investment Ltd were renamed as Bajaj Auto Ltd. The appointed date of this de-merger was closing hours of business on March 31, 2007. In April 9, 2007, the company inaugurated their green field plant at Pantnagar in Uttarakhand. In the first year of operations, the plant produced over 275,000 vehicles. The company's vehicle assembly plant at Akurdi was shut down from September 3, 2007 due to higher cost of production. In November 2007, Bajaj Auto International Holdings BV, a wholly owned subsidiary company acquired 14.51% equity stake in KTM Power Sports AG of Austria, Europe's second largest sport motorcycle manufacturer for Rs 345 crore. During the year 2007-08, the company launched XCD 125 DTS-Si and the Three-wheeler Direct Injected auto rickshaw. The Chakan plant completed the cumulative production of over 2 million Pulsar.

During the year 2009-10, the company expanded the production capacity of Motorised Two & Three Wheelers by 300,000 Nos to 4,260,000 Nos. The company launched Pulsar 220 F, Pulsar 180 UG, Pulsar 150 UG, Pulsar 135 LS and Discover DTS-si in the market. During the year 2010-11, the company expanded the production capacity of Motorised Two & Three Wheelers by 780,000 Nos to 5,040,000 Nos. The company launched Avenger 220 DTS-i, KTM Duke 125, Discover 150 and Discover 125 in the market. The company plans to maintain the capacity of two and three-wheelers at the current level of 5,040,000 numbers per annum during the year ending 31 March 2012. The 4 wheel vehicle development work is under progress and commercial launch of the first product from this platform is scheduled for 2012.

New Competition in the 1980s

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. The Bajaj M-50 debuted in 1981. The new fuel-efficient, 50cc motorcycle w a s immediately successful, and the company aimed to be able t o m a k e 60,000 of them a year by 1985. Capacity was the most important constraint for the Indian motorcycle industry. Although the country's total production rose from 262,000 vehicles in 1976 to 600,000 in 1982, companies like rival Lohia Machines had difficulty meeting demand. Bajaj Auto's advance orders for one of its new mini-motorcycles amounted to $57 million. Work on a new plant at Waluj, Aurangabad commenced in January 1984. T h e 1 9 8 6 - 8 7 f i s c a l y e a r s a w t h e i n t r o d u c t i o n o f t h e B a j a j M - 8 0 a n d t h e Kawasaki Bajaj KB100 motorcycles. The company was making 500,000 vehicles a year at this point. Although Rahul Bajaj credited much of his company's success with its focus on one type of product, he did attempt to diversify into tractor -trailers. In1987 his attempt to buy control of Ashok Leyland failed. The Bajaj Sunny was launched in 1990; the Kawasaki Bajaj 4S Champion followed a year later. About this time, the Indian government was initiating p r o g r a m o f m a r k e t l i b e r a l i z a t i o n , d o i n g a w a y w i t h t h e o l d ' l i c e n s e r a j system, which limited the amount of investment any one company could make in a particular industry. A possible joint venture with Piaggio was discussed in 1993 but aborted. Rahul Bajaj told the Financial Times that his company was too large to be considered a p o t e n t i a l c o l l a b o r a t o r b y J a p a n e s e f i r m s . I t w a s h o p i n g t o increase its exports, which then amounted to just five percent of sales. The company began by shipping a few thousand vehicles a year to neighboring

Sri Lanka and Bangladesh, but soon was reaching markets in Europe, Latin America, Africa, and West Asia. Its domestic market share, barely less than50 percent, was slowly slipping.

Objective:
To get the information about the genesis, growth and the performance of the company in the recent past.

To study the strategies, policies, hierarchy, managerial style etc. the company Adopted which led to its success.

Quick facts
Founder - Jamnalal Bajaj Year of Establishment -1926 Industry Automotive - Two & Three Wheelers Business Group -The Bajaj Group Listings & its codes BSE - Code: 500490; NSE - Code: BAJAJAUTO Presence: Distribution network covers 50 countries

MANAGEMENT TEAM OF BAJAJ AUTO

1. RAHUL BAJAJ -: CHAIRMAN

2. MADHUR BAJAJ -: VICE CHAIRMAN

3. RAJIV BAJAJ -: MANAGING DIRECTOR

4. PRADEEP SRIVASTAVA -: CHIEF OPERATING OFFICER

5. ABRAHAM JOSEP -: CHIEF TECHNOLOGY OFFICER

6. K. SRINIVAS -: PRESIDENT (MOTORCYCLE BUSINESS)

7. R.C MAHESHWARI -: PRESIDENT (COMMERCIAL VEHICLE)

8. RAKESH SHARMA -: PRESIDENT (RETIAL FINANCE)

9. ERIC VAS -: PRESIDENT (FINANCE)

10. AMRUT RATH -: VICE PRESIDENT (HUMAN RESOURCES)

Manufacturing Locations
1. Akurdi, Pune: 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.

2 . B a j a j N a g a r , W a l u j Au r a n g a b a d : This is second plant with production capacity of 0.86 million/ year. Products manufactured here are Kristal, XCD and platina and commercial GC series.

3 . C h a k a n I n d u s t r i a l Ar e a , C h a k a n P u n e : T h i s i s t h e b i g g e s t plant of Bajaj auto Production Capacity of 1.2 million/ year, P r o d u c t manufactured here are pulsar and avenger and commercial Ge series. 4 . P a n t n a g a r , U t t a r a k h a n d : The most advanced plant of Bajaj auto .It has Capacity of 0.9 million vehicles per year. Product manufactured here are Platina and XCD.

BAJAJ GROUP COMPANIES AND THEIRBUSINESS INTERESTS:

Bajaj Auto Ltd: Manufacturers of Scooters, Motorcycles and Three-wheeler vehicles and spare parts thereof.

Bajaj Electricals Ltd.: Manufacturers of electricfans, highmasts, lattice closed towers and poles, etc

Bajaj Hindustan Ltd.: Manufacturers of white crystal sugar and industrial alcohol.

Bajaj Auto Finance Ltd.: Deals in financial services including hire purchase financing & leasing.

Bajaj Consumer Care Ltd.: Manufacturing and trading of ayurvedic medicines, hair oil, tooth powder, Shampoos, Pure coconut oil.

Bajaj Allianz General Insurance Company Ltd.: General Insurance Business.

Bajaj Allianz Life Insurance Company Ltd.: Life Insurance Business.

BAJAJ AUTOMOBILE PRODUCTIONS

Products

BAJAJ

AUTO

BRANDS

MOTORCYCLES

4S CHAMPION BAJAJ DISCOVER PULSAR DTS I

BAJAJ AVENGER BAJAJ PLATINA PULSAR DTS FI 220

PULSAR 135 PLATINA DTS SI KAWASAKI NINJA 250

BAJAJ WIND

BAJAJ XCD 125

DISCOVER 150

CALIBER

CALIBER 115

PULSAR 200 DTSi

KB RTZ

KB 100

BAJAJ CHETAK

BAJAJ DTSi

CRYSTAL BAJAJ WAVE

GOOD CARRIER

CG MAX CNG

RE600

PASSENGER CARRIER

RE 25 CNG

RE 25 LPG

RE4S

RE4S LPG

RE DIESEL

RE GDI

Current Situation & Current Performance

BAJAJ AUTOMOBILE LIMITED is currently outperforming the industry growth rate in two-wheeler segment with 32% growth in year 2011-12 v/s industry growth of 19%.

Market share in Motorcycles is improving with every passing year. It has also increased from 28% in 2004-05 to 31% in 2011-12. Annual turnover for the year 2010-11 is Rs. 81.06 billion v/s Rs. 63.23 billion a year before - an increase of 28% which is very healthy.

BAJAJ AUTOMOBILE LIMITED has significant presence in all the three basic segments - Price Segment, Value Segment and Performance Segment - and has been showing increased sales in all the segments over years.

Besides this, BAJAJ AUTOMOBILE LIMITED is a market leader in two-wheeler exports and it consists a great chunk of there overall revenues. Currently, BAJAJ AUTOMOBILE LIMITED is selling over 1 lac motorcycles annually in Sri Lanka, further, they are commanding 50% market share in Central America.

Profile Change in Indian Two-Wheeler Industry

The demand shift from scooters to motorcycles in the 1990s was without parallel in any comparable product category in India. This was mainly attributed to the change in customers' preference towards fuel-efficient and aesthetically appealing models, which scooter manufacturers failed to provide. The delayed launch of new, advanced scooter models, fear of four-stroke scooters being prone to increased skidding risks and vibrations, and the difficulty of maintenance also contributed to this shift.

MARKET SHARE FOR 2011-2012

Interestingly, the growth in the motorcycle segment was mainly driven by the demand from rural and semi-urban consumers. An estimated 60% of the demand for motorcycles came from rural and semi-urban customers. The rise in their disposable incomes on account of good monsoons in the 1990s provided the normally conservative rural and semi-urban customers with extra money that induced them to experiment with new, innovative products.

Shift from Scooter to Motorcycle

Advanced technology, larger wheelbase, higher ground clearance and the ability to

ride on bad roads with less effort and less danger of skidding and decreased maintenance cost were the other factors that encouraged customers to choose motorbikes over other two-wheelers.

Supplier Bargaining Power Suppliers of auto components are fragmented and are extremely critical for this industry since most of the component work is outsourced. Proper supply chain management is a costly yet critical need.

Buyer's Bargaining Power

Buyers in automobile market have more choice to choose from and the increasing competition is driving the bargaining power of customers uphill. With more models to choose from in almost all categories, the market forces have empowered the buyers to a large extent.

Industry Rivalry

The industry rivalry is extremely high with any product being matched in a few months by competitor. This instinct of the industry is primarily driven by the technical capabilities acquired over years of gestation under the technical collaboration with international players.

Threats of Substitutes

There is no perfect substitute to this industry. Also, if there is any substitute to a twowheeler, Bajaj has presence in it. Cars, which again are a mode of transport, do never directly compete or come in consideration while selecting a two-wheeler, cycles do never even compete with the low entry level moped for even this choice comes at a comparatively higher economic potential. Summarizing the industry analysis, it can be said that the two-wheeler market is attractive as it scores well on three out of five categories.

Motorcycles: Overall
There are two tales of motorcycles in India. The first is well known: the steady growth of motorcycle sales throughout the country, and its overwhelming dominance in the two-wheeler market. Chart A plots the data. As Chart A shows, from 7.10 million units in 2006-07, motorcycle sales fell to 6.54 million units in 2marginally to 6.81 million units in 2008-09. The year under review has been outstanding. Sales has increased by 24.1% the best ever growth since 2002-03, and over a much higher base. Indeed, sales in 2009-10 was 18.9% higher than even the previous peak during 2006-07. Motorcycles continue to account for over 80% of total two-wheeler sales. For the Company, therefore, it is the two-wheeler that matters. How has Bajaj Auto fared? Table 1 gives the data for the last seven years.007-08, and then rose very marginally to 6.81 million units in 2008-09. The year under review has been outstanding. Sales has increased by 24.1% the best ever growth since 2002-03, and over a much higher base. Indeed, sales in 2009-10 was 18.9% higher than even the previous peak during 2006-07. Motorcycles continue to account for over 80% of total two-wheeler sales. For the Company, therefore, it is the twowheeler that matters.

Chart A: Industrys sale of Two-Wheelers (Domestic + Exports)

Chart Title
12 10 8 6 4 2 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2010 2011 Other two wheelers Motorcycles

The Company sold over 2.5 million motorcycles in India and the rest of the world. It increased its sales by 31.4% or 7.3 percentage points higher than the market as a whole, i.e. domestic sales plus exports of motorcycle of all manufacturers in India. Table 2 gives movement in market share for domestic motorcycles. Here, too, Bajaj Autos motorcycle sales in 2009-10 Grew faster than the market 39.7% for the Company, versus 25.8% in the aggregate.

Motorcycles: Domestic Sales

Chart A does not, however, underscore the second tale of motorcycles. This is the story of the changing preference of Indian consumers. It needs some explanation. Over the last five years, the Companys management has been communicating about the change in consumer preferences for motorcycles. The gist of it has been: a) Indian consumers - urban as well as a rural - have become better off. They have been enjoying greater purchasing power than before; and have begun to demand greater design inputs, better looks, feel, comfort and adventure for the products that they buy. And are willing to pay for these attributes. b) As a consequence, the consumers are upgrading. Across the board, a motorcycle is becoming a lifestyle statement. Boring and fuel efficient no longer works; exciting and fuel efficient does rapidly so, in ever increasing strides. c) In addition, there is a growing body of motor-bike users who want to purchase powerful models for the pure thrill of biking. The data prove this very clearly. Consider the following product segmentation: d) Commuter Standard (STD): Comprising Bajaj Autos Platina; Hero Hondas CD series; and TVS Star. e) Commuter Deluxe (DLX): The key brands here are Bajaj Autos Discover; Hero Hondas Splendor, Passion and Glamour; Honda Motorcycle & Scooters Indias (HMSIs) Shine; and TVS Fiero. f) Sports: This includes Bajaj Autos Pulsar; Hero Hondas CBZ, Hunk and Karizma; HMSIs Unicorn and Stunner; TVSs Apache; and Yamahas R15 and FZ16. How do the market shares of these categories stack up in India?

Commuter STD
The share of this bottom-of-the-pyramid category has been falling steadily, as Chart B1 shows. For India as a whole, the share of Commuter STD motorcycles has fallen year after year, from 43% of the market (in terms of volume) in 2005-06 to 19% in 2009-10. So, too, has Bajaj Autos composition: from 54% of the Companys total sales in 2005-06 to 24% in 2009-10. It is not just a matter of falling segment share. The Commuter STD category comprises low pricing power, low margin, low profit products. Bajaj Auto believes that there is more brand premium to be reaped and higher profits generated by

being a significant player or leader in the other two categories.

Commuter DLX
Unlike the Commuter STD segment, this category is not only growing every year, but also constitutes the major chunk of Indias motorcycle market. Chart B2 plots the data. From a high base of 48% of the market in 2005-06, the Consumer DLX segment has grown to 64% in 2009-10 or close to two-thirds of the total number of bikes sold. Bajaj Auto, through its Discover DTS-Si, has increased its presence from 25% of the total number of motorcycles sold by the Company in 2005-06 to 45% in 2009-10. With the launch of Bajaj Autos Discover DTS-Si, the Company is selling an average of 80,000 vehicles per month in this category. Discover is now a one million plus brand.

Chart B2: Segment share, Deluxe Commuter Bikes

India, Commutet DLX n BAL, Commuter DLX

Sports
This segment is showing rapid growth. From 9% market share in 2005-06, it has risen to 17% in 2009-10. According to many, this will be the fastest growing segment in the times to come, given the disproportionate growth of purchasing power in the hands of middle-class urban India, especially age group of 20-30 years. With its Pulsar range, Bajaj Auto has grown faster from 21% of its total volume of motorcycles in 2005-06 to 31% in 2009-10. Bajaj Auto is the clear market leader in this category. Chart B3 plots the data.

Chart B3: Segment share, Sports Bikes

This is an exciting segment in more ways than one. It is about aspiration; power; freedom; enjoyment; and the sheer pleasure of riding a great bike. The Company believes that for India as a whole, the segment will continue increasing its share of the market; and so too will Bajaj Auto. In this category, the new Pulsar 135 LS has been very successful in the market. Designed in the Pulsar character of aggression, the bike has been crafted with an eye to detail. Its light sports nature has bought more people into Pulsar fold, who would otherwise have been intimidated by the full size Pulsars. Together with the 135 LS, the Pulsar will also become a one million brand. The strategic shift in favor of the bigger and sportier Discover and Pulsar models has not only created a powerful image for the Companys offerings, but also generated higher margins.

SWOT Analysis
Let's analyze the position of Bajaj in the current market setu p , e v a l u a t i n g i t s s t r e n g t h s , weaknesses, threats and opportunities available.

Strengths
Highly experienced management. Product design and development capabilities. Extensive R & D focus.

Widespread distribution network. High performance products across all categories. High export to domestic sales ratio. Great financial support network (For financing the automobile) High economies of scale. High economies of scope.

Weaknesses
Hasn't employed the excess cash for long. Still has no established brand to match Hero Honda's Splendor in commuter segment. Not a global player in spite of huge volumes. Not a globally recognizable brand.

Threats
The competition catches-up any new innovation in no time. Threat of cheap imported motorcycles from China. Margins getting squeezed from both the directions (Price as well as Cost) TATA Ace is a serious competition for the three-wheeler cargo segment.

Opportunities
Double-digit growth in two-wheeler market.

Untapped market above 180 cc in motorcycles. More maturity and movement towards higher-end motorcycles. The growing gearless trendy scooters and scooterette market. Growing world demand for entry-level motorcycles especially in emerging markets.

The Inevitable Change

Bajaj on internal analysis found that it lacked 1. 2. 3. The technical expertise to deliver competitive goods. The design know-how. And the immediate inability to support the onslaught of competitors.

All these forced Bajaj to look for an international partner who could bring in technology and also offer some basic platforms to be manufactured and marketed in India. Kawasaki of Japan is a world-renowned manufacturer of high performance bikes. Bajaj entered into a strategic tie-up with Kawasaki in late 1990s to enhance its product line and knowledge up-gradation to support long-term strategies. This served the purpose of sustaining the market competition for a while. From 1996 to 2000, Bajaj invested hugely in infrastructure while simultaneously developing product design and innovation capabilities, which is the prime reason behind the energetic Bajaj of 21st century. Bajaj introduced a slew of products right from entrylevel motorcycle to the high premium segment right from 2001 onwards, and since then its raining success all the way for Bajaj. Last quarter, Bajaj had impressive performance growing at a rate of 20%+ when the largest manufacturer grew at just 6%. This stands a testimony to the various important strategic decisions over the past decade.

SUPPLY CHAIN AT BAJAJ AUTO

MANAGEMENT OF GLOBAL SUPPLY CHAIN With operations spanning to such vast geographies, managing a supply chain globally becomes more and more complex. In countries where Bajaj perceives a

strong market potential, they establish a tie up with one major industrial establishment eager to invest in the project. This investment may include setting up strategic manufacturing or assembly units, apart from a well-established nation-wide network for marketing, distribution and after sales services. These investors who form alliances with Bajaj Auto are termed as Business Partners.

Bajaj Auto offers a number of services to its business partners. They include: Training in sales, service and spare parts management based on the Bajaj distribution system Active support for setting up manufacturing facilities overseas including transfer of technical know-how Assistance in setting up an assembly plant for assembly of vehicles from complete knocked down (CKD) kits Selecting of machinery and equipment and training of technical personnel, all in a phased manner as required by the regulations in the recipient country

SPARE PARTS Automobiles need periodic replacement of parts. Not surprisingly therefore, spare parts comprise a profitable business for major automobile manufacturers. The objectives of the spare parts business of Bajaj Auto are to perform an effective role in supporting new vehicle sales, maintain vehicle goodwill across different geographies, makes and consumer groups, and contribute to the bottom-line. Challenge: To make the companys spare parts available in not just the authorised service centres but also the private garages and spare part shops that dot the country. This is a high volume, credit intensive business that requires mastery over the supply of heterogeneous products. Solution: In 2004-05, Bajaj Auto created a separate channel exclusively for

distribution of spare parts. Today, the channel has 73 distributors, who cater directly to over 15,000 retail shops across the country. This channel now accounts for sales of over 70% of total spare parts of Bajaj Auto Ltd. Other 30% is distributed via the distribution channel of the bike itself.

SAP IMPLEMENTATION Bajaj Auto ltd. is Indias largest manufacturer of two- and three-wheeler vehicles. Spare parts distribution, critical to the servicing of the vehicles, is handled through a network of 400 dealers and 15 distributors. Spare parts are distributed from four warehouses that are strategically located across the country. The process that Bajaj Auto was using to manage the supply of spare parts across the distribution network was inefficient, did not produce accurate results, and was unsuitable for the increasing complexities of distribution. To keep track of its safety stock, amounting to over 14,000 different items, the company was using a cumbersome manual process that was neither timely nor accurate. And lack of visibility of order status resulted in inventory problems at sales outlets because needed items didnt always get priority during packing and shipping. This combination of problems affected service level in the marketplace, leading to customer dissatisfaction. At the same time, high inventory levels at the warehouses meant increased amounts of non moving stock, which had an impact on the dealers working capital. So Bajaj Auto implemented Go Live of their External Portal Initiative for their sales and service employees, dealers and suppliers. SAPs my SAP Enterprise Portal was implemented simultaneously with the current SAP R/3 ERP implementation. Business information is available to the companys external community in real time. This assists in improved decision-making, whether it is to meet customer requirements or to maintain efficiency in supply chain management. The companys field sales teams get full visibility on all dealer activities while the dealers get real-time access to relevant information on operational activities. The dealers and sales employees get information relevant to their respective region and territory by aggregation from the underlying SAP R/3 ERP database.

Bajaj has linked 380 out of its 483 dealers through this system. Also connected are

165 out of a total of 200 suppliers. The dealer portal, in addition to operating information, provides access to unstructured information like news items, new product releases, new product introduction, dealer discussion groups and internal marketplace. The supplier gets up-to-date information on purchase orders and contracts, material schedules, and payment details. Bajaj Auto, in turn, gets invoicing information from suppliers for its automated material receipt system. This helps in streamlining the supply chain, optimising inventories and reducing non-value-adding activities at both ends.

Following were advantages realized from SAP implementation Operational Benefts of SAP implementation to spare parts logistics at Bajaj Auto Key Performance Spare parts availability Forecasting accuracy in domestic market Productivity of production planning controllers Service level to export market Inventory obsolescence rate Indicator Impact +35% to 40% 40% 80% +45% to 70% greatly reduced

Impact of sap implementation on spare parts logistics in bajaj auto

GLOBAL LEVEL PARTNERSHIPS

In order to cater to a widespread network of dealers, distribution is a challenge for Bajaj Auto. Here the concept of business partners comes in. Bajaj has tried leveraging the existing distribution network of the business partner in the country where the partner is present. Bajaj Auto has also set up assembling units in few of the continental hubs. These continental hubs act as goods receivers from the manufacturing units of Bajaj in India. The logistics for this is outsourced to third party vendors like Maersk Sealand, P&O Nedloyd and APL.

Distribution network of Bajaj Auto

NATIONAL LEVEL PARTNERSHIPS There is an exisisting generic channel which is used for segmentation of this category of two-wheelers and three wheelers

GENERIC CHANNEL

Generic distribution channel of Bajaj Auto The physical flow of goods takes place from the factory to either the depot or to the carrying and forwarding agent, depending upon the geographic distance and the location of the Depot. The transport & logistics for this is outsourced to third party vendors which are under Transport Corporation of India (TCI). Depending upon the demand these goods have, they flow from Depot or the C&F agent to the dealer and their network. In case of high profile dealers, the dealer can himself take the physical delivery of goods directly from the manufacturing plant. juncture, caters ASC, RSO, Sub Dealer & its own branch The dealer, at the last

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 1. OSL 2. Jamuna Transport 3. 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

EXAMPLE

Retail distribution channel of Bajaj Auto TCI looks after the packaging of the bike from the manufacturing unit to its delivery upto the warehouse of the dealer or to the depot, as required. In the above example, one truck or a single factory load can carry either 43 premium bikes or 53 general bikes. Depending upon the product mix ordered by the dealer, the truck is loaded. It can then either go to the dealers warehouse directly or to the depot, as depicted in the generic channel. From the depot, these bikes are loaded in smaller fleet and distributed to the respective dealer. In this case, the fleet size is 28 premium bikes or 35 general bikes. This load is termed as Depot Load.

Exports (Geographically) Of Bajaj Auto:

The increased presence in Africa was primarily due to growth in Nigeria, Uganda, and Angola and Kenya. Bajaj Auto has initiated a major brand building effort in Africa for the Boxer, which involves creating exclusive branded outlets for the customers in te rms of sales and after-sales services. Sales in South Asia (excluding India) grew by 4%. The slowdown in Sri Lanka for three of the four quarters was more than compensated by

growth in Bangladesh. Due to the fall-out of the financial crisis, South East Asia had a negative growth of 14%. The Companys subsidiary in Indonesia, PT BAI, clocked sales of 11,954 units.

Working Capital
Working capital is a financial metric which represents operating liquidity available to a business, organization, or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Net working capital is calculated as current assets minus current liabilities. It is a derivation of working capital, that is commonly used in valuation techniques such as DCFs(Discounted cash flows). If current assets are less than current liabilities, an entity has a working capital deficiency, also called a working capital deficit.

Working Capital = Current Assets Net Working Capital = Current Assets Current Liabilities

A company can be endowed with assets and profitability but short of liquidity if its assets cannot readily be converted into cash. Positive working capital is required to ensure that a firm is able to continue its operations and that it has sufficient funds to satisfy both maturing short-term debt and upcoming operational expenses. The management of working capital involves managing inventories, accounts receivable and payable and cash. Working capital management involves the relationship between a firm's short-term assets and its short-term liabilities. The goal of working capital management is to ensure that a firm is able to continue its operations and that it has sufficient ability to satisfy both maturing short-term debt and upcoming operational expenses. The management of working capital involves managing inventories, accounts receivable and payable, and cash.

Factors determining the working capital requirements

1. Nature or Character of the Business: The working capital requirements of a firm basically depend upon the nature of the business. For instance, Public utility undertakings require smal l amount of working capital, while, trading and financial firms require relatively large amounts of working capital and manufacturing undertakings require sizable amount of working capital.

2. Size of the Business/Scale of Operations : The working capital requirement of a company indirectly influenced by its size of the business or scale of the operations. The larger the size of a business unit, greater is the amount of working capital required.

3. Production Policy : The amount of working capital required also depends on the production p o l i c y o f t h e c o m p a n y. I f t h e p o l i c y i s t o

k e e p s t e a d y f l o w o f p r o d u c t i o n b y a c c u m u l a t i n g inventories, then it requires high amount of working capital.

4. Manufacturing Process/Length of Production Cycle: In a manufacturing business, the amount of working capital increases in direct proportion to length of manufacturing process. Longer the manufacturing process, larger is the amount of working capital required.

5. Seasonal Variations: In certain industries raw material is not available throughout the year. Generally, during the peak season, a firm requires larger working capital than in the slack season.

6. Working Capital Cycle: The length of the operating cycle determines the working capital of accompany. If the operating cycle is lengthy, then the amount of working capital required is large and vice versa.

7 . R a t e o f S t o c k Tu r n o v e r : T h e r e i s a h i g h d e g r e e o f i n v e r s e c o r e l a t i o n s h i p b e t w e e n t h e quantum of working capital and the speed with which the sales are affected.

8. Credit Policy : A Concern that purchases its requirement on credit and sell its products/services on cash requires lesser amount of working capital as there is immediate cash generated from sales.

9. Business Cycles: During the boom period, larger amount of working capital is required due to increase in sales, rise in prices, optimistic expansion of business, etc., and vice versa.

10. Earning Capacity and Dividend Policy : Company with good earning capacity requires less working capital cash inflows. In case of high dividend paying firms more working capital is required, as dividends are always paid in cash to the shareholders resulting in cash outflows.

HR Practices:
1. The Company affirms that its competitiveness is interlinked with the wellbeing of all sections of the Indian society.

2. The Company believes that equal opportunity in employment for all sections of the society is a component of its growth and competitiveness. It further believes that inclusive growth is a component of growth and development of the country.

3. The Company affirms the recognition that diversity to reflect socially disadvantages sections of the society in the workplace has a positive impact on business.

4. The Company will not practice nor support conscious discrimination in any form.

5. The Company does not bias employment away from applicants belonging to disadvantaged sections of society if such applicants possess competitive skills and job credentials.

6. The Company's selection of business partners is not based on any considerations other than normal business parameters. In case of equal business offers, the Company will select a business partner belonging to a socially disadvantaged section of society.

7. This Code of Conduct for Affirmative Action will be put up on the company website to encourage applications from socially disadvantaged sections of society.

8. The Company makes all efforts for up skilling and continual training of all its employees in order to enhance their capabilities and competitive skills. No discrimination of any type will be shown in this process.

9. The Company may have a partnership programme with educational institution/s to support and aid students from socially disadvantaged sections of society.

10. The Company will maintain records of Affirmative Action.

11. The Company has nominated Mr K Srinivas, Vice President (HR), too versee and promote the Affirmative Action policies and programmes. He will be accountable to the Chairman.

12. The Company will make available its learning and experiences as a good corporate citizen in Affirmative Action to other companies desiringg to incorporate such policies in their own business.

Marketing Strategies:
The focus of BAL off late has been on providing the best of the class models atcompetitive prices. Most of the Bajaj models come loaded with the latestfeatures within the price band acceptable by the market. BAL has been thepioneer in stretching competition into providing latest features in the pricesegment by updating the low price bikes with the latest features like disk-brakes, anti-skid technology and dual suspension, etc.BAL adopted different marketing strategies for different models, few of themare discussed below: -

Kawasaki 4S
First attempt by Bajaj to make a mark in the motorcycle segment. The target customer was the father in the family but the target audience of the commercial was the son in the family. The time at which Kawasaki 4S was launched Hero Honda was the market leader in fuel-efficient bikes and Yamaha in the performance bikes.

Boxer
It took the reins from where the Kawasaki 4S left. Target was the rural population and the price sensitive customer. Boxer marketed as a value for money bike with great mileage. Larger wheelbase, high ground clearance and high mileage were the selling factors and it was in direct competition to Hero Honda Dawn and Suzuki MX100.

Caliber
The focus for the Caliber 115 was youth. And though Bajaj made the bike look bigger and feel more powerful than its predecessor (characteristics that will attract the average, 25-plus, executive segment bike buyer), its approach towards advertising is even more radically different this time around. Bajaj gave the mandate for the ad campaign to Lowe, picking them from the clique of three agencies that do promos for the company (the other two being Leo Burnett and O&M). Going by the initial market response, the campaign was clearly a hit in the 5-10 years age bracket. So, the teaser campaign and the emphasis on the Caliber 115 being a `Hoodibabaa' Bike placed it as a trendy motorcycle for the college-goers and the 25 plus executives both at the same time.

Pulsar
Pulsar was launched in direct competition to the Hero Honda's 'CBZ' model in 150 cc plus segment. The campaign bared innovative punch line of "Definitely Male" positioning Pulsar to be a masculine-looking model with an appeal to the performance sensitive customers. The Pulsar went one step ahead of Hero Honda's 'CBZ' and launched a twin variant of Pulsar with the 180cc model. The model was a great success and has already crossed 1 million mark in sales.

Discover
The same DTSI technology of Pulsar extended to 125 cc Discover was a great success. With this, Bajaj could realize its success riding on the back of technological innovation rather than the joint venture way followed by competitors to gain market share.BAL now is taking a leaf out of the FMCG business model to take the company to greater heights. Bajaj has kicked off a project to completely restructure the company's retail network and create multiple sales channels. Over the next few months, the company wills set-up separate sales channels for every segment of its business and consumers. Bajaj Auto's entire product portfolio, from the entry-level to the premium, is being sold by the same dealers. The restructuring will involve separate dealer networks catering to the urban and rural markets as well as its threewheeler and premium bikes segments. Bajaj Auto also plans to set-up an independent network of dealers for the rural areas. The needs of financing, selling, distribution and even after-sales service are completely different in the rural areas and do not makes sense for city dealers to control this. The company also plans to set-up exclusive dealerships

Other Strategic Issues:

Cash is strength: Bajaj Auto has been sitting on a cash pile for over five years now. Over the next couple of years, competition in the two-wheeler market is set to intensify. TVS Motors and Hero Honda are on a product expansion binge. To fight this battle and retain its hard-earned market share in the motorcycle segment, Bajaj Auto will need its cash muscle. A look at its own story over the past five years provides valuable insight. Delisting worry: What is worrying is that there is an idea to delist the investment company (also an indirect indication that it would be listed initially). This would be closing the valve of equitable ownership distribution. There is a hint of a buyback of shares of the investment company as this is the only way it can be delisted. The company would not be short of cash to put through such a buyback. Factors such as low valuation, low trading interest and the need to provide shareholders may be cited as plausible reasons for the buyback.

Stake for Kawasaki: Bajaj Auto's attempt to vest the surplus cash in separate company may be a prelude to offering a stake to Kawasaki of Japan in the equity of the automobile company. The latter has been playing an increasingly active role in Bajaj's recent models, and its brand name is also more visible in Bajaj bikes than in the past. Better value proposition: Shareholder interests may be better served if the cash is retained to pursue growth in a tough market. This would also obviate the need to fork-out fancy sums as stamp duty to the government for the de-merger. A combination of a large one-time dividend and a regular buyback program through the tender route may offer better value. A strategic stake for Kawasaki would only positively influence the stock's valuation.

Strategies for the Overseas Markets:

Bajaj Auto looks at external markets primarily with three strategies: 1) A market where all BAL need to do is distribute through CKD or CBU routes 2) Markets where BAL need to create new products. 3) Markets where BAL need to enter with existing products and probably with a good distributor or a production facility or a joint venture.

Earlier, most of the products that Bajaj exported were scooters and some motorcycles. However, in its target markets, like in India, the shift was towards motorcycles. With the expansion in Bajaj's own range to almost five-six platforms of motorcycles, it had a better offering to export, also the reason for its stronger showing. For the last fiscal, 60 per cent of its exports were two-wheelers and the rest three-wheelers. Of the two-wheeler exports, close to 90per cent were motorcycles.

Bajaj has identified certain key markets, which hold potential. Its first overseas office established at the Jebel Ali free trade zone has been the focal point for exports to middle Africa and the Saharan nations. Egypt and Iran also continue to be strong markets for Bajaj.

The other market, which would be a focus area, is South America, where the company feels it is fairly well represented in most countries, except in Brazil, the largest market. The company recently participated in a large auto exhibition in Brazil and found good consumer acceptance to products like Pulsar and Wind 125.The

other focus area is the ASEAN nations, which constitute the third biggest consumer of two-wheelers. The biggest among them is Indonesia, where Bajaj distributors are looking to introduce eco-friendly four-stroke auto rickshaws. But two-wheeler market requires great deal of effort from BAL. Everybody is there with Honda leading the show. Theres Suzuki, Kawasaki and some Korean and Chinese models. BAL should look at the right product mix for two-wheelers. Bajaj's Pulsar model has taken off well there. It also wants to develop a new step-through model for the Indonesian market, but for now it will create a base there with its motorcycle models. Bajaj has also made a beginning by selling bikes in the Philippines branded in the name of its technical partner, Kawasaki. The two signed an MoU in February. Kawasaki, a large multi-product conglomerate, only makes high-end bikes and does not have sub200cc models. Kawasaki is marketing the new model, Wind 125, developed by both companies, in the Philippines. The Bajaj-developed models, Caliber and Byke, which is a fuel-efficient bike, are also distributed by Kawasaki. This is a good beginning strategically for Kawasaki to evince interest in Bajaj products for markets which can still buy less than 150cc

Cost effective and Environmental strategies: Conservation of energy:

As a part of continuing efforts to conserve various resources, following steps were taken to conserve energy. Electrical energy saving was achieved by installation of localisedportable air compressors at various shops during low production periods,en ergy efficient screw compressors by replacing CPT compressors, real timerelectrical circuits installed to switch off electrical equipments duringlunch / tea br eaks and during non utilisation of production equipments,fan less cooling towers for AC plants, high efficiency reflector fittings with electronic ballasts tube lights, use of LED & CFT street lights, replacement of 350 W air circulators by 180 W air circulators, 150 W MH lamps instead of 250 W HPSV lamps at shop floors, Variable Frequency Drives(VFD) for ASUs in paint shops, washing machine blowers, compressors etc and rationalisation of pumping hours of main pump as well as booster pump of pump house.

Water saving was achieved by replacement of old under-ground water pipeswith aboveground pipes to avoid water wastage through leakage, drip irrigation system for gardening, installation of localized fresh water storage systems, usage of treated water for bin washing and paint shop process, rain water harvesting and use of bio-chemical additives to reduce frequency of water change in various paint processes; and LPG saving was achieved by installation of waste heat recovery system for hot water generation used in pre-treatment process of paint shop, use of reflective coating inside furnaces for better heat retention, three-wheeler electro-deposition (ED)

painting process changed from Acrylic ED to Cathodic ED, optimization of loading pattern in CGC and seal quence furnaces, reduction of hot water temperature for pre-treatment, use of bio-gas for cooking in canteens, start-up losses in ovens and hot water generation plants and changed design of paint jigs to reduce jig stripping frequency.

Impact of measures taken:

As a result of the initiatives taken for conservation of energy and natural resources, the company has effected an overall reduction in consumption as under:-

Reduction achieved in:

2008-09 % Electrical energy Water LPG 23 11 44

2007- 08 % 23 16 12

Investment / savings: Investment for energy conservation activities: Saving achieved through above activities: Rs.9.35 million Rs.24.2 million

Community leadership programmes: During the year, the employees volunteered for blood donation camp at Deenanath Mangeshkar Hospital, Pune and Dr Susheela Tiwari Hospital,Pantnagar Fire fighting teams of the company along with vehicles responded to 20 Fire assistance calls from Government Fire Department / otherindustrial units outside the factory premises in the larger interests of saving invaluable life and property. Community Care: In line with the commitment to enrich the life of all with whom Bajaj deals, its owes sensitivity to the employees, who opted for voluntary retirement at the Akurdi Plant.

Soon after the Akurdi employees expressed their interest in accepting the Voluntary Retirement Scheme, the company organized a series of interactivemeetings with leading financial institutions. The officers explained thene ed to prudently and safely invest the monies received, considering thevarious today. The company devised attractive schemes forinterested employees so that the y could receive regular monthly payments,in addition to lump sum compensation ann ounced. They were alsoprovided with options of taking loans at competitive rates of i nterest.

By these actions, it is the company's endeavour that the employees, whohave accepted voluntary retirement scheme, are independently self-sustaining and can take good care of their families. Employees were also guided foralternative possibilities, whether as employee or entrepreneur.

Health:

Government of India- Ministry of Health and Family Welfare - National Aids Control Organization (NACO) and CII have initiated Public Private Partnership (PPP) in order to provide better healthcare to AIDs patients. Your company has signed a tripartite MoU with NACO and Yeshwantrao Chavan Municipal Hospital (YCMH) in Pimpri to set up an Anti Retroviral Treatment Centre (ART Centre) at YCMH in Pimpri, Pune with the cooperation of Pimpri Chinch wad Municipal Corporation for HIV patients.

Many dignitaries from Global Fund, WHO and such other organizations have visited the ART centre, which is the largest unit run by an industry under Public Private Partnership programme. Apart from two doctors and six supporting medical staff, the ART centre has added audio-visual facilities for group counseling, as a result of which the ART centre registration has reached 1,900 numbers and the unit is recognized today as one of the best ART centres in the country. Rural and community development activities and women. The company continued with its rural development activities in Pune andAurangabad districts of Maharashtra through its trust, Jankidevi Bajaj GramVikas Sanstha (JBGVS). JBGVS aims at an integrated development of 43selected villages, to be carried out by the villagers under their own leadership and through united efforts forged by local organisation with JBGVS acting as a catalyst.

During the year, JBGVS undertook a number of development initiatives viz. watershed, sanitation, healthcare, HIV / AIDs awareness andprevention, basic education, women empowerment etc. It also initiated various income generation programmes, supporting 50 self-help groups women members and developed 400 vermi compost plots. It encouraged and facilitated entrepreneurship development through projects, like goat rearing, candle and paper dish production, shops and stalls etc.

Through JBGVS encouragement and technical assistance, 4 educated youthsinstalle d cultivation facilities under polynet and 32 farmers have established WADI concept mango groves of 20 trees each. NABARD will partner with JBGVS for a Rs.3.50 crore WADI Project for the next seven years.

The trust supported construction of low cost houses and latrines; conducted tests and provided treatment during the HIV / AIDs awareness programmes.

Samaj Seva Kendra (SSK) as part of JBGVS provides facilities for socialdevelopmen t of the residents of Akurdi, Nigdi and adjoining townships, with the aim of improving their quality of life, through skill development training, hobby centre, nursery education, health care, sports, music, dance, cultural programmes etc.

Consumer Research Method

Market research is often needed to ensure that we produce what customers really want and not what we think they want.

Primary vs. secondary research methods There are two main approaches to marketing. Secondary research involves using information that others have already put together. For example, if you are thinking about starting a business making clothes for tall people, you dont need to question people about how tall they are to find out how many tall people exist that information has already been published by the U.S. Government. Primary research, in contrast, is research that you design and conduct yourself. For example, you may need to find out whether consumers would prefer that your soft drinks be sweater or tarter. Research will often help us reduce risks associated with a new product, but it cannot take the risk away entirely. It is also important to ascertain whether the research has been complete. For example, Coca Cola did a great deal of research prior to releasing the New Coke, and consumers seemed to prefer the taste. However, consumers were not prepared to have this drink replace traditional Coke.

How to Measure Consumer Satisfaction

Customers that are satisfied with a product or business have an overall good perception of that product or business. When consumers' perceptions are good, they will continue purchasing goods from this company. These customers also will avoid spreading disappointing experiences to others. Consumer perceptions are based on feelings. A customer perception measurement is an important tool used by companies that expresses how well the companies are satisfying customers.
Instructions 1. Perform market research on your company's products. When measuring customer perceptions, the first step a company should take is to identify what customers are actually buying and why.

2. Create a survey to give customers. The only way to measure and increase customer's positive perceptions of your company is to ask customer's how they feel about your company. By creating a survey, you are able to get information directly from the customer. In order for the survey to be successful, it should contain several key elements. The survey must be relatively simple and short. The survey must also be created in a way that would allow actionable reports to be generated from the information it contains.

3. Analyze survey results. After surveys are distributed and re-collected, the company should analyze the results. When analyzing results, you must remember that customer perception is subjective. It varies immensely from person to person and one particular measurement may not be appropriate for the entire sample taken.

4. Measure the results. After the results are analyzed, the information should be measured. This is accomplished by answering several key questions including: are we understanding and meeting the expectations of customers? The results of the survey can be compared to results of previous surveys. Each time a survey is conducted the results should become better.

Feature of Consumer Satisfaction

Constancy

Perceptual constancy is the ability of perceptual systems to recognize the same object from widely varying sensory inputs. For example, individual people can be recognized from views, such as frontal and profile, which form very different shapes on the retina. A coin looked at face-on makes a circular image on the retina, but when held at angle it makes an elliptical image. In normal perception these are recognized as a single three-dimensional object. Without this correction process, an animal approaching from the distance would appear to gain in size. One kind of perceptual constancy is color constancy: for example, a white piece of paper can be recognized as such under different colors and intensities of light. Other constancies include melody, odor, brightness and words. The perceptual systems of the brain achieve perceptual constancy in a variety of ways, each specialized for the kind of information being processed. Grouping

The principles of grouping (or Gestalt laws of grouping) are a set of principles in psychology, first proposed by Gestalt psychologists to account for the observation that humans naturally perceive objects as organized patterns and objects. Gestalt psychologists argued that these principles exist because the mind has an innate disposition to perceive patterns in the stimulus based on certain rules. These principles are organized into five categories: Proximity, Similarity, Closure, Good Continuation, Common Fate, and Good Form .Later research has identified additional grouping principles.

Contrast effects

A common finding across many different kinds of perception is that the perceived qualities of an object can be affected by the qualities of context. If one object is extreme on some dimension, then neighboring objects are perceived as further away from that extreme. "Simultaneous contrast effect" is the term used when stimuli are presented at the same time, whereas "successive contrast" applies when stimuli are presented one after another. The contrast effect was noted by the 17th Century philosopher John Locke, who observed that lukewarm water can feel hot or cold, depending on whether the hand

touching it was previously in hot or cold water. In the early 20th Century, Wilhelm Wundt identified contrast as a fundamental principle of perception, and since then the effect has been confirmed in many different areas .These effects shape not only visual qualities like color and brightness, but other kinds of perception, including how heavy an object feels. One experiment found that thinking of the name "Hitler" led to subjects rating a person as more friendly .Whether a piece of music is perceived as good or bad can depend on whether the music heard before it was unpleasant or pleasant .For the effect to work, the objects being compared need to be similar to each other: a television reporter can seem to shrink when interviewing a tall basketball player, but not when standing next to a tall building.

Consumer Perception
Perception (from the Latin perceptio, percipio) is the process of attaining awareness or understanding of sensory information. Perception results when the brain processes and interprets physical signals that have activated the sensory organs. For example, vision involves light striking the retinas of the eyes, smell is mediated by odor molecules and hearing involves pressure waves. Perception is not the passive receipt of these signals, but can be shaped by learning, by memory and expectation. Perception involves these "top-down" effects as well as the "bottom-up" process of processing sensory input. Since the rise of experimental psychology in the late 19th Century, perceptual psychology has progressed by combining a variety of techniques. Psychophysics measures the effect on perception of varying the physical qualities of the input. Sensory neuroscience studies the brain mechanisms underlying perception. Perceptual systems can also be studied computationally, in terms of the information they process. Perceptual issues in philosophy include the extent to which sensory qualities such as sounds, smells or colors exist in objective reality rather than the mind of the perceiver. Although the senses were traditionally viewed as passive receptors, the study of illusions and ambiguous images has demonstrated that the brain's perceptual systems actively and pre-consciously attempt to make sense of their input. There is still active debate about the extent to which perception is an active process of hypothesis testing, analogous to science, or whether realistic sensory information is rich enough to make this process unnecessary.

The perceptual systems of the brain enable individuals to see the world around them as stable, even though the sensory information may be incomplete and rapidly varying. Human and animal brains are structured in a modular way, with different areas processing different kinds of sensory information. Some of these modules take the form of sensory maps, mapping some aspect of the world across part of the brain's surface. These different modules are interconnected and influence each other. For instance, taste is strongly influenced by smell.

New projects: Chakan 4-wheeler plant-The 'Lite' range of 4 wheeler vehicles, both inPassenger and Cargo segments of the Industry, are under re-design, to sharpen the competitive positioning of the products.

The Cargo version code named ' PV 1500' is likely to be launched in 2011.

The Techno-economic feasibility for the Passenger 4 wheeler will be evaluated by Bajaj Renault-Nissan for a final decision, leading to firming up of the co-operation parameters among partners and a suitable JVAgreement.

company continues to focus on expanding its design & testing teams, which has enabled it to make the new generation products. R & D has enhanced its internal competencies by installation of advanced machines in proto shop and introduction of special equipments in testing areas.

The expenditure on research and development during 2008-09 and in the previous year was:

Rs In Million

2008-09

2007-08

1.Capital (including technical know-how)

310.8

481.4

2. Recurring

837.9

706.0

1,148.7 3. Total research and development expenditure as a percentage of sales, net of excise duty

1,187.4

NA 1.36

NA 1.37

Profits during recession: 2008-09 has been a tumultuous year for the global economy. The year began with a continuation of a world-wide inflationary spiral and ended with the worst slowdown since the Great Depression of the 1930s. While India did not face a contraction in GDP growth like the USA, the Euro zone, the UK and Japan, it has witnessed a 250 basis point compression in growth rate - from9% in 2007-08 to an expected 6.5% or thereabout in 2008-09.

The second half of 2008-09 has seen severe financial distress across broad sections of Indian industry-especially the manufacturing sectors. Companies have got rerated; have scrapped investment plans and capital expenditure; cut down capacities; struggled with finances because of their earlier over-leveraged positions; delayed payments to vendors; and had to borrow funds at prohibitive interest rates.

It is in this context that one must look at the performance of Bajaj Auto Limited (Bajaj Auto', BAL or the Company'). Despite falling demand in the motorcycle segment, the company has succeeded in maintaining an operating EBITDA (earnings before interest, taxes, depreciation and amortisation) margin of 13.6% of net sales and other operating income.

BAJAJ AUTOMOBILES BRANDING STRATEGY

What does management theory say? As suggested that analyzing the new branding strategy adopted by Rajiv Bajaj of Bajaj Auto would be a great learning experience and they 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. Brand extensions by and large do not work. It has financial and some marketing logic on its side but not the logic of the mind of the customer. Remember, it is the mind of the customers where all the marketing battles are lost and won and not in the retail stores. The financial logic behind adopting brand extension strategy (trade acceptance, consumer acceptance, lower advertising costs, corporate image) is so overwhelming that it is very difficult to counter it.

How Bajaj Auto is powering ahead?

Rajiv Bajaj faced his moment of truth when he overheard a customer say, "Yes, the Bajaj scooter is the cheapest, but that's what is deserves to be." The experience kindled in him a fierce desire to modernize the family business, the courage to change the success formula that was Bajaj Auto, and the confidence to step away from his father's shadow. He has since then propelled Bajaj Auto on a fast track, fuelled with his new R&D strategies. In every manager's life, there comes a moment of truth. A handful emerge from the experience as leaders. Rajiv Bajaj faced his moment of truth when he overheard a customer say, "Yes, the Bajaj scooter is the cheapest, but that's what is deserves to be." The experience kindled in him a fierce desire to modernize the family business, the courage to change the success formula that was Bajaj Auto, and the confidence to step away from his father's shadow. But not without a baptism by fire that lasted over a decade. The lowest point perhaps was 2001 when Hero Honda made and sold more two-wheelers (all motorcycles) than the King of the Roads, Bajaj Auto. Second, the Bajaj Auto share price dropped like a rock to Rs200. Yet by January 2004, the situation changed dramatically. What did Rajiv Bajaj do right? The transformation story began with Bajaj's realization that Pune's two-wheeler giant

would have to transition from scooters to motorcycles and from a 'mass manufacturer of low-cost products to a high-quality, highly productive maker of worldclass products'. To achieve this ambition needed local R&D and a change in mindset. Money the company had. The first visible sign of the change in focus was the garage full of models the company launched to cater to the different market segments. Some met with partial success, a few bombed. Bajaj first tasted success with the launch of Boxer. Customers whipped out their wallets for 542,000 of them in FY01, and the motorcycle's sales rose 33% to 723,000 units in FY02. Aggressively priced to undercut Hero Honda by Rs8,000, Bajaj Auto initially made a loss of Rs1,200 on every Boxer it sold. But once customer acceptance was confirmed, better production practices dropped cost by Rs4,000, making the Boxer both a volume growth driver as well as a profit center. Bajaj's next coup was the Pulsar (launched November 2001), targeted at the premium segment. The project took huge money and 36 months to develop under severe internal opposition. McKinsey, the leading management consultancy, had reservations; while Rahul Bajaj worried that it would affect Bajaj Auto's relationship with Kawasaki, their long-standing Japanese partner. It was the first bike to be marketed under the Bajaj brand, the first to be entirely developed by the product engineering division. In the event, Pulsar proved to be a money spinner, and in tandem, the Bajaj Auto share prices climbed to Rs400. The Pulsar, a powerful sub250cc motorcycle, was part of a restructured marketing strategy. With the Indian two-wheeler sector focused on motorcycles, Bajaj proposes to make Bajaj Auto the only Indian company with offerings in each user segment. Starting with the entry level Boxer series, the Bajaj Caliber 115 (launched March 2003) served the executive segment, Pulsar the premium segment, with the Eliminator being India's only cruiser bike. Currently under development, under a shroud of deep secrecy, is a 125cc world class bike codenamed K-60. The K-60 marks a restructured product planning process. "When we started, we asked ourselves if Chetak was the largest selling two-wheeler for 35 years, and [Hero Honda's] Splendor for the next 10 years, what will it take to make the largest selling two-wheeler for the next 10 years?" Bajaj told Business World's Ranju Sarkar. Incremental improvements over existing models were not enough, the value proposition had to go well beyond that of either the highly successful TVS Victor (half a million units sold since launch) or the Splendor (which sells 70,000 a month) or even Bajaj Auto's own Caliber.

Management style
To replace a legend is never easy, to replace a legend when the legacy needs a major overhaul is even more difficult. Rahul Bajaj had created an extraordinarily triumphant company, and it required enormous courage for Rajiv Bajaj to tinker with the business model and change the success formula. But given the changes in the environment: more competitors and fiercer competition, changing customer needs and tastes, new technology and more sophisticated management tools and techniques, transformation was a necessity, not a luxury. Bajaj began the process by recruiting new talent, and forming a new core team of about 30 people. Among them was Abraham Joseph, Bajaj Auto's R&D head, and RL

Ravichandran, head hunted by Bajaj to give a fresh impetus to Bajaj Auto's marketing strategy. Earlier this year, Ravichandran quietly left his resignation letter on Bajaj's desk and went on leave. He met Bajaj two days before he was scheduled to leave Pune for a new job in the Middle East. The conversation convinced him to stay on. Bajaj didn't offer to match the substantial salary of the new job. Instead, he offered him a different job profile. He would be freed from the daily chores of sales management in order to focus on shaping a glow-Bajaj Automobile Limited strategy for Bajaj Auto. "I stayed because Rajiv convinced me he really needed me. I found great sincerity in the need," Ravichandran told the media. The young Bajaj clearly knows not only how to hire talent, but also the knack of retaining people. Bajaj inspires his employees, not by dangling a carrot or through fear, but through his authenticity. He has no airs. Until a few years ago - he had to stop because of a severe knee injury - his favourite pastime was playing foot Bajaj Automobile Limitedly with the Akurdi factory workers. The source of his credibility however lies in his transparent management style. Listen to how he engages his managers in the unpleasant task of cost cutting. "Cost has to be looked at in a different way," he explains. "The wrong way is to tell people that we are cutting costs. People want to come to work eager to work. But if in a meeting I say that today I want to talk about cost cutting, I am sure they will do their best, but they will not be motivated. I will be talking in isolation. This is especially true in an owner-managed company. Inevitably there will be a feeling among executives that the benefit of cost cutting will go into the owner's pocket. Managers and workers also see cost cutting as a way to rip off and to make them work harder. Outside the company, among vendors and customers, the moment you talk of cost cutting, people think that the product's quality has gone down. Here in Bajaj Auto, we feel that cost cutting is all about improving quality at lower cost. That's how profitability improves. That's how customers keep coming back."

Key Earning Drivers

Below are the key factors, which strongly affect the auto industry
Government policy impact on petrol prices: Petrol prices determine the running cost of two/three wheelers expressed in Rupees per kilometre. Petrol prices are the highest in India as GOI subsidizes kerosene and diesel. But with the recent change in GOI policy to reduce the subsidy, the prices of petrol will remain constant at the current prices. This will have a positive effect on purchases of two/three wheelers. Improvement in disposable income: With the increase in salary levels, due to entry of multinationals following liberalization process and fifth pay commission, the disposable income has improved exponentially over the years. This will have multiplier effect on demand for consumer durables including two-wheelers. Changes in prices of second-hand cars: The second hand car prices of small cars have come down sharply in the recent past. This will shift the demand from higherend two-wheelers to cars and affect the demand for two-wheelers negatively. A further drop in second-hand car prices will lead to pressure on the two-wheeler

majors who plan to release higher-end scooters and motorcycles. Implementation of mass transport system: Many states have planned to implement mass transport systems in state capitals in the future. This will have negative impact on demand for two-wheelers in the long run. But taking into account the delays involved in implementation of such large infrastructure projects the demand to be affected only five to seven years down the line. Availability of credit for vehicle purchase: The availability and cost of finance affects the demand for two- and three-wheelers as the trend for increased credit purchases for consumer durables have increased over the years. Therefore, any change with respect to any of these two parameters as a result of change in RBI policy has to be closely watched to assess the demand for two- and three-wheelers. Internal Factors - Strengths & Weaknesses

According to Customers
a) Bajaj bikes are cheaper than Yamaha & Hero Honda Bikes b) The quality of Yamaha & Hero Honda Bikes is better than Bajaj bikes. c) Yamaha & Hero Honda Bikes scores high on looks as compared to Bajaj. d) On the basis of performance Yamaha & Hero Honda Bikes beats Bajaj. e) Maintenance cost of Bajaj bikes are less than Yamaha & Hero Honda Bikes f) Service facilities given by Bajaj is better than Yamaha & Hero Honda Bikes g) Value for money is more from Bajaj than Yamaha & Hero Honda Bikes

h) On loyalty aspects Yamaha wins over Bajaj.

RESEARCH & DEVELOPMENT (R&D)

Bajaj Auto has a huge, extensive and very well-equipped Research and Development wing geared to meet two critical organizational goals: development of exciting new products that anticipate and meet emerging customer needs in India and abroad, and development of eco-friendly automobile technologies. While the manpower strength of the R&D represents a cross-section of in-depth design and engineering expertise, the company has also been investing heavily in the latest, sophisticated technologies to scale down product development lifecycles and enhance testing capabilities. Bajaj Auto R&D also enjoys access to the specialized expertise of leading international design and automobile engineering companies working in specific areas. Based on their own brand of gloBajaj Automobile Limitedisation, they have built their distribution network over 60 countries worldwide and multiplied the exports from 1% of total turnover in Fiscal 1989-90 to over 5% in Fiscal 1996-97. The countries where their products have a large market are USA, Argentina, Colombia, Peru, Bangladesh, Sri Lanka, Italy, Sweden, Germany, Iran and Egypt. Bajaj leads Colombia with 65% of the scooter market, in Uruguay with 30% of the motorcycle market and in Bangladesh with 95% of the three-wheeler market. Several new models are being developed specifically for gloBajaj Automobile Limited markets and with these the company will progressively endeavour to establish its presence in Europe to Analysts also commented that as the two-wheeler industry had grown steadily for eight years, stages in the product life cycle would apply to the field sooner, rather than later and the decline stage would invariably come some day. There was little differentiation between the brands being launched apart from styling as most companies had introduced their four-stroke vehicles. With the failure of the joint ventures, the expected introduction of cheaper Chinese brands, stringent emission norms and threat from major international players, the survival of indigenous brands looked uncertain. Constrained with the ruling price levels in the market place, limited infrastructure and lack of technological innovations when compared to their foreign counterparts, whether the Indian companies would succeed in generating the kind of volumes needed to sustain in the competitive motorcycle market, remains to be seen. 2009-10 was an important year. Bajaj Autos R&D departments were involved with the creation of number of new products, which have helped the Company to acquire more significant market presence. In addition, it has done considerable work in process engineering.

Consumer Behaviour
One "official" definition of consumer behaviour is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society." Although it is not necessary to memorize this definition, it brings up some useful points:

Behaviour occurs either for the individual, or in the context of a group (e.g., friends influence what kinds of clothes a person wears) or an organization (people on the job make decisions as to which products the firm should use). Consumer behaviour involves the use and disposal of products as well as the study of how they are purchased. Product use is often of great interest to the marketer, because this may influence how a product is best positioned or how we can encourage increased consumption. Since many environmental problems result from product disposal (e.g., motor oil being sent into sewage systems to save the recycling fee, or garbage piling up at landfills) this is also an area of interest. Consumer behaviour involves services and ideas as well as tangible products. The impact of consumer behaviour on society is also of relevance. For example, aggressive marketing of high fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national health and economy.

There are four main applications of consumer behavior:

The most obvious is for marketing strategyi.e., for making better marketing campaigns. For example, by understanding that consumers are more receptive to food advertising when they are hungry, we learn to schedule snack advertisements late in the afternoon. By understanding that new products are usually initially adopted by a few consumers and only spread later, and then only gradually, to the rest of the population, we learn that (1) companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success and (2) it is important to please initial customers, since they will in turn influence many subsequent customers brand choices.

A second application is public policy. In the 1980s, Accutane, a near miracle cure for acne, was introduced. Unfortunately, Accutane resulted in severe birth defects if taken by pregnant women. Although physicians were instructed to warn their female patients of this, a number still became pregnant while taking the drug. To get consumers attention, the Federal Drug Administration

(FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers.

Social marketing involves getting ideas across to consumers rather than selling something. Marty Fishbein, a marketing professor, went on sabbatical to work for the Centers for Disease Control trying to reduce the incidence of transmission of diseases through illegal drug use. The best solution, obviously, would be if we could get illegal drug users to stop. This, however, was deemed to be infeasible. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. As a result, using knowledge of consumer attitudes, Dr. Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing them, a goal that was believed to be more realistic.

As a final benefit, studying consumer behavior should make us better consumers. Common sense suggests, for example, that if you buy a 64 liquid ounce bottle of laundry detergent, you should pay less per ounce than if you bought two 32 ounce bottles. In practice, however, you often pay a size premium by buying the larger quantity. In other words, in this case, knowing this fact will sensitize you to the need to check the unit cost labels to determine if you are really getting a bargain.

There are several units in the market that can be analyzed. Our main thrust in this course is the consumer. However, we will also need to analyze our own firms strengths and weaknesses and those of competing firms. Suppose, for example, that we make a product aimed at older consumers, a growing segment. A competing firm that targets babies, a shrinking market, is likely to consider repositioning toward our market. To assess a competing firms potential threat, we need to examine its assets (e.g., technology, patents, market knowledge, awareness of its brands) against pressures it faces from the market. Finally, we need to assess conditions (the marketing environment). For example, although we may have developed a product that offers great appeal for consumers, a recession may cut demand dramatically.

Products

a) Pulsar 220 F - The Pulsar 220 F was re-defined to be the best performing sports bike in India. It became the fastest Indian bike. Work was done to enhance its power while reducing its fuel consumption. The bike was also made more affordable. b) Pulsar 180 UG - The bike was loaded with new features and style along with higher performance. It has, in effect, expanded the greater than 150 cc segment. c) Pulsar 150 UG - Pulsar 150 the backbone of the Pulsar brand was upgraded with a more powerful engine and new features like clip on handle bars and tank flaps. These features have made the Pulsar 150 the best seller in its category. d) Pulsar 135 LS - The Pulsar 135 LS was built to create a light sports offering in the Pulsar family. It was designed to be true to the Pulsar character of aggression, technological predisposition and outstanding style. This bike is powered by a 4V DTS-i engine which is the first of its kind. The four valves allow the engine to breathe well, generating superb performance, while DTS-i gives it excellent fuel economy. e) Discover DTS-si - Discover DTS-si was the bike where R&D blended the advantages of the twin plug ignition and swirl motion of the incoming charge in a 100 cc category engine to create Indias most fuel efficient motorcycle. R&D worked upon all aspects of the engine and vehicle design to maximise the gains in fuel economy along with a crisp throttle response. The success of these products has put Bajaj Auto in a strong position. R&D is now working on next generation bikes to maintain this momentum.

Processes
R&D has been working on improving its operations in number of areas, such as:

a) Manpower - Expanding the team size in areas of design, analysis and validation to keep up with the rapidly expanding aspirations of the Company. b) Facilities - Enhancing R&Ds design, computing and test facilities. A notable addition has been a world class NVH (Noise, Vibration and Harshness) laboratory, which has been commissioned. This will give Bajaj Auto the ability to make even more refined products.

c) Technology - R&D has developed the 4V DTS-i technology for outstanding engine performance. Design optimization has enabled it to be used on the Pulsar 135 LS, which competes at a lower price point. The DTS-i is controlled by a new generation CDI (Capacitor Discharge Ignition), which takes continuous load and temperature inputs to compute the optimum timing of each spark plug.

Total Productive Maintenance : Bajaj Auto started its Total Productive Maintenance initiative ten years ago with its manufacturing plants. In March 2007, it achieved a milestone of having all its manufacturing facilities awarded as TPM Excellence Category 1 winners by JIPM (Japan Institute of Plant Maintenance). Last year, TPM and quality initiatives at vendor plants gathered further momentum. Since inception of Bajaj Autos Vendor Quality and Vendor TPM awards, the tally of Quality and TPM award winners is as follows: 1. Quality award Bronze: 2009-10: 24 winners (cumulatively, 108) 2. Quality award Silver: 2009-10: 30 winners (cumulatively, 89) 3. Quality award Gold: 2009-10: 16 winners (cumulatively, 44) 4. Quality award Platinum: 2009-10: 3 winners (cumulatively, 3) 5. BAL TPM award: 2009-10: 11 winners (cumulatively, 29) In other words: Over 50% of BALs vendors have achieved a status of supplying zero defect components to the Companys plants for six straight months at least once during last four years (Bronze).

Almost 40% achieved zero defect supplies for 12 straight months (Silver). 25% have had zero defect supplies for 24 straight months (Gold).

Three vendors have supplied zero defect components for more than 36 straight months (Platinum). On 7 April 2010, Bajaj Auto adopted a wider and more encompassing concept of TPM. It is the acronym for The Prime Mover towards excellence to build and continuously improve its core competencies. With this in mind, Bajaj Auto created a Company-wide TPM Kick-off. This initiative, the first of its kind in India, will align all key businesses and activities of the Company. Bajaj Autos core competencies rest on its values of innovation, perfection and speed. TPM is expected to build and continuously improve its core competencies, as also its entire supply chain including its suppliers and dealers. It needs to be emphasized that the Companys excellent operational and financial performance is not merely due to increasing overall growth in motorcycle demand in India. Over the last few years, Bajaj Auto has been developing a brand-centred strategy. The front end is guided by the Companys strategy of differentiation, to continuously specialize its brand positioning in motorcycles. In the process, Bajaj Auto has positioned its motorcycle brands in the utility, price, value and sports categories. The basic proposition is that while products may generate market share, it is brands that Pricing power and create higher profits. The back end - R&D, quality, production efficiency, logistics and throughput is guided by TPM, which the Company calls The Prime Mover towards excellence. 2009-10 saw the coming together of the front end and the back-end. It is this alignment which has resulted in Bajaj Auto growing faster than the market, gaining market share, and earning the highest profit rate in the industry.

Motorcycles: Awards
Bajaj Auto has won several awards for its motorcycles in the course of the year recognition of the Companys commitment to brands, advertising, technology and product appeal. These are given below:

CONCLUSION
Bajaj Auto has been a turnaround story and is poised to do well under the helm of Rajiv Bajaj who is quite ambitious and aggressive in his approach and has steered the company well. From a position where all the two wheelers of the company made a loss around five years ago today Bajaj has got an award
The company enjoys a market share of about 30 % and this enables them to have cash reserves to the tune of Rs. 5000 crores.

Another step, which was taken, was vendor development and rationalization. This means that the company substantially reduced the number of vendors it had. This is a modern management practice and the essence of it is that the vendors should be partners in the process. This way the cost comes down because of reduced cycle times and lead times and better management of inventory of the parts that go into a product. More and more parts are also outsourced which enables the company to focus only on the core areas of operation. Since Bajaj accounts for a large part of the revenues of many of these vendors their service levels also improve, as they have to depend on the company for their survival. However the downside is that there is a lot of dependence on these vendors and in case they face a bad time it could mean that the business suffers significantly as compared to the before scenario.

With a focus on research and development the company has been able to come up with new products that are hot sellers like the Pulsar. This focus has also enabled them to bring down the warranty costs, which currently stands at Rs. 18 per vehicle. In a scenario where the volumes are quickly growing to the extent of 41% in fiscal 2004, the reduced cost of warranty is quite significant. Otherwise the profitability of the company would suffer and more importantly if the warranty has to be used by consumers the brand would suffer. And referral sales will come down, which would mean that the company would have to spend more on marketing. So although on books they are only saving the amount, which was previously spent on service minus what they are spending now, in reality the effects will be much more.

The big opportunity however does remain the international market. If the company can do well in this front the growth will be tremendous and unprecedented. The stock currently hovers around Rs. 1120, which translates into a P/E of 16 times its past year earnings. Considering the growth that the company has shown in the previous fiscal, the strong turnaround based on solid and sustainable long term steps and the ambitious plans of the company the stock is attractive and one could consider buying the counter. So Bajaj auto should manufacture bike at low price range and add new attribute, which make it distinct company among their competitors.

BIBLIOGRAPHY

Books:1. Marketing Management By Philip Kotler 2. Marketing Management- By C.B.Gupta

Magazines:1. Auto magazine 2. Over drive magazine 3. Top Gear India 4. Business Today

Websites:1. www.bajajauto.com 2. www.google.com 3. www.scribd.com 4. www.slideshare.com 5. www.wikipedia.org