PROJECT-REPORT

ON
MARKETING STRATEGY
OF
BAJAJ AUTO LTD.
Undergone At

: - Rajashri

Auto Deals Pvt. Ltd.

PREPARED BY

: - Vyas

CLASS

: - T.Y.B.B.A.

COLLEGE

: - Smt.

M. T. Dhamasania College

ACADEMIC YEAR

: - 2003

2004

ROLL NO.

: 37

SEAT NO.

SUBMITTED TO

: - SAURASHTRA

GUIDED BY

: - Prof.

Harshit R.

UNIVERSITY.

T.R. Hathi

DECLARATION
I undersigned Mr. Harshit R. Vyas the student of Third Year
B.B.A. hereby declare that the project work presented in this report
is my own work and has been carried out by the Guidance of Prof.
Dr. Tushar R. Hathi of Smt. M. T. Dhamshaniya College of
Commerce & B.B.A.

This work has no been submitted to any other University on

any other Examination.

Year: -

2003-04
Signature

ACKNOWLEDGEMENT
It is really a pleasure for me to prepare a report at this stage,
it is my sincere they to thank all those who helped me directly or
indirectly during my training process.
First of all I would specially like to thanks our professor in
charge Dr. Tushar Hathi who has make the arrangements for my
training in Rajarshi Auto Deals Pvt. Ltd to know about Marketing
Strategies of Bajaj Auto Ltd.
After I would like to thank Executive to Rajarshi Auto
Deals Pvt. Ltd. Rajkot, for granting me permission for my
practical training. I am very thankful to Mr. Shwetal head of
service department for his valuable guidance, co-operation and
sparing his valuable time also.
At last but not lease I like to thanks my friends & family
members for their encouragement during the training period.

Place: - Rajkot

Harshit Vyas

Year: - 2003-04

T.Y.B.B.A.

PREFACE
Industrial activity plats an important role in overall economic
development of the developing country like India. Industrial Visit is
a part of practical training contained in B.B.A. course.
B.B.A. is a special course of management, where the
management knowledge is given during the year and which is more
related with the practicability of it in the managerial field.
So, I am very please to get a chance to visit Rajarshi Auto
Deals Pvt. Ltd. and made the report on new marketing strategies of
Bajaj Auto Ltd.

College Certificate
Smt. M. T. Dhamshaniya College of
Commerce & B.B.A.
This is to certify that the industrial practical visit report
prepared on Marketing Strategies of Bajaj Auto Ltd. is the
original work of Mr. Harshit R. Vyas of Third Year B.B.A. This
report is prepared under my guidance and supervision.

This work is submitted to the University as part of curriculum

to go through in the examination.

(Signature)

(Signature)

Dr. Tushar Hathi

Mr. T. T. Raiyani

Prof. In Charge

Principle

The Bajaj Group can into existence during the turmoil and
the heady euphoria of Indias freedom struggle. Jamanlal Bajaj,
founder of the Bajaj Group, was a confidante and disciple of
Mahatma Gandhi, and was deeply involved in the effort for
freedom.

The

integrity,

dedication,

resourcefulness

and

determination to succeed which are characteristic of the company

today, are often traced back to its birth during those long days of
relentless devotion to a common cause.
Kamalnayan, the eldest son of Jamanlal Bajaj, succeeded
his father in 1942, at the age of twenty-seven. Putting the Nation
before business, he devoted himself to the latter only after India
achieved independence in 1947. But when he did so, he put his
heart and soul into it. Within a short while, he not only consolidated
the Group, but also diversified into various manufacturing
activities, elevating the Group to the status it enjoys till this day.
Rahul Bajaj today heads the Group. He has been the chief
Executive Officer of Bajaj since 1968 and is recognised as one of
the most outstanding business leaders in India. As dynamic and
ambitious as his illustrious predecessors, he has been recognised
and international forums.
Bajaj is currently Indias largest two and three-wheeler
manufacturer and one of the biggest in the world. Bajaj has long left
behind its annual turnover of Rs. 72 million (1968), to currently
register an impressive figure of Rs. 42.16 billion (US$ 936 million).

Management Profile
Bajaj Auto Ltd. is ably managed by a team of seasoned professionals:
Rahul Bajaj
J. Sridhar
R. A. Jain
Madhur Bajaj
D. S. Mehta
Rajiv Bajaj
Sanjiv Bajaj
Ranjit Gupta
N. H. Hingorani
P. B. Menon
R. L. Ravichandran
C. P. Tripathi
Niladri Banerjee
Ramesh Bhargava
K. P. Chander
Kevin DSa
R. V. Govind
Arvind Gupta
R. S. Gupta
N. V. Iyer
Anil G. Khopkar
G. B. Laddha
Shrikant Marathe
N. G. Maengane
K. P. Nair
C. K. Rao
V. M. Rao
P. K. Rath
S. R. Rage
D.K. Sharma

Managing Director
Company Secretary
Executive Director
Vice Chairman
Wholetime Director
President
Vice President (Finance)
Vice President (Insurance)
Vice President (Materials)
Vice President (Projects)
Vice President (Business Development & Marketing)
Vice President (Waluj)
General Manager (Corporate Affairs), Delhi
General Manager (International marketing)
General Manager (Machine Tool Division), Waluj
General Manager (Finance)
General Manager (Product Engineering)
General Manager (Manufacturing Engineering)
General Manager (Motorcycle Project Team), Waluj
General Manager (Engineering Support)
General Manager (Management Information Service)
General Manager (Finance)
General Manager (R & D)
General Manager (Motorcycle Division), Waluj
General Manager (Quality Assurance)
General Manager (Marketing Three Wheelers)
General Manager (Akurdi)
General Manager (Chakan)
General Manager (Maharashtra Scooters Ltd.)
General Manager (Production), Akurdi

HISTORY, GROWTH & DEVELOPMENT OF

RAJARSHI AUTO DEALS PVT. LTD.

The foundation of Rajarshi Auto Deals Pvt. Ltd. was in

1998 in Rajkot. The Rajarshi Auto Deals Pvt. Ltd. is a
partnership firm. The main partners are
1.

Mr. Vipulbhai Kothari.

2.

Mr. Shieetalbhai Kothari.

3.

Mr. Jeetubhai Patel.

4.

Mr. Ajitsinh Jadeja.

Rajarshi Auto Deals Pvt. Ltd. was started in 1998 with 3

crore Rs. of investment approximately. Now Rajarshi Auto Deals
Pvt. Ltd. value and goodwill is increase.
As a dealer of Bajaj Auto Ltd. Rajarshi Auto Deals Pvt.
Ltd. has been working in Rajkot science four year with good selling
performance.
History is the main principle of Rajarshi Auto Deals Pvt.
Ltd. and they dont charge even a single rupee more than with the
liking and performance of the customer.
Today the Bajaj Auto Ltd. offer a unbeatable range of
motorcycles to suit possible need of customer by featuring the latest
technology of manufacturers of the highest quality standard.
The Rajarshi Auto Deals Pvt. Ltd. believes in discipline,
faith hardwork, success, and Rajarshi Auto Deals Pvt. Ltd.
already proved their believer.

PROJECT AT A GLANCE
Name of the Unit

: Rajarshi Auto Deals Pvt. Ltd.

8

Address of the Unit

Phone No
Registered Office

: Rajarshi Auto Deals Pvt. Ltd.

: (0281) 374496, 375730, 375731
: Rajarshi Auto Deals Pvt. Ltd., Nr.
Malaviya College
Name of the Managing : Vipulbhai Kothari
Director
Name of Marketing : Chandrakant R.
Manager
Name of the Finance : Tarvlata Makwana
Manager
Form of Organization
: Dealership
Years of Establishment
: 1998
Nature of Project
: Consumer Durable
Dealership of
: Bajaj Auto Ltd.
Head Office
: Bajaj Auto Ltd., Akurdi, Pune,
Maharashtra, India.
Ph.: 7472851
Fax: 7407392

INTRODUCTION
Marketing mix is the bridge that dimishes the gap between
the product and consumes without marketing all production
activities would be fulfill. Therefore more production is not enough.

It is equally important to make the consumer aware of the goods

produced. After the consumer importance to distribute the goods to
all prospective consumers. But the marketing activities do not here.
The view and ideas of the consumers are taken into and the product
is to be changed according to the consumers needs. Thus the sum
total of all the activities undertaken to satisfy the consumers wants
and demands constitutes the activities of marketing.
Marketing is comprehensive firm and it includes all resources
and a set of activities necessary to direct and facilities to direct the
flow of goods and services from product to utility consumer in the
process of distributing. In other words marketing comprises of all
the activities involved in the determination and satisfaction of
consumer needs at a profit. Thus marketing encompasses all
activities of exchange conducted by producers and middleman in
commerce for the purpose of satisfying consumer demand.
In marketing planning, marketing information is used to
assess the situation specific marketing targets are selected in the
form market segments for each segment of market a combination of
a number of devices or types of marketing activities that are
coordinated into a single management programs to reach a
particular target or market segment is formulated. The combination
of these marketing methods or devices is known as the marketing
mix.
Thus marketing mix is the set of marketing goals that the
firm used to pursue its marketing objectives in mix goals can be
classified as under down heads. There are.
10

1.

Product.

2.

Price.

3.

Promotion.

4.

Place.

5.

People.

These are popularly known as the five P's of marketing mix.

PRICE MIX

PRODUCT MIX

Pricing Obj
Pricing Policy
Price List
Discount
Allowance
Credit Terms

Product Variety
Product Line
Design
Features
Brand Name
Packaging
Services
Warranties

MARKETING
STRATEGY
(MIX)

PROMOTION
MIX

PLACE MIX

Channel
Marketing
Distribution
Sales Promotion
Advertising
Strategy Physical
Distribution
Sales Force
(Mix)
Personal Selling

of

11

Product is the pivot around which all the marketing

selectivities revolve without product, all the marketing activities
become useless. People satisfy their needs and wants with products.
Product can be defined proudly to cover anything that can be
offered brings to someone to satisfy a need or want normally, the

12

ward product brings to mind a physical object such as on

automobile, a television or a soft drink. We normally use the
expression product and services but in thinking about products,
their importance lies not so much in owning them as in using them
to satisfy our wants.
Manufacturers get into a lot trouble by paying more attention
to their physical product then to the services produced by these
products. The marketers job is to sell the benefits or services built
into physical products rather than just describe their physical
features.
Product mix is the set of all the products line and items that a
particular server offers for sale to buyer the product mix covers the
following points.

13

(A) Product Variety

Product variety include the types of product which a
company produces. They may before the same consumers or for
different consumers. In other words, the different products may
satisfy similar needs or different needs for e.g. A company
manufacturing soap for both these product satisfy the same needs
e.g. cleaning etc. But if the same company starts manufacturing
their oils than this product has a totally different segment of
consumer. There fore the company will have to all write its
marketing strategy in order to reach this particular segment of
consumers.
The product variety (line of Bajaj Auto Ltd. are as follows.)

Scooter

Bikes

1. Super

1. Boxer

2. M-80 Major

2. Caliber Croma

3. M-80 Major 4-Strock

3. Aspire

4. Spirit

4. Caliber 115

5. Saffire

5. Pulsar

6. Legend NXT 2

6. Wind 125

7. Chetek 4-Strock

7. Eliminator

14

(B) Design
Reflect the outlook of the product. Design reflects the
features of the product which make it different from other products.
Designing a product is a specialist job. Various aspects of the
product are to be kept in mind while designing a product. These
may include product differentiation, features, characteristics,
performance, durability, reparability, style etc.
Design is the interacting force with all the features as its
parameters. The design has also to keep in mind the capital
allocated to designing from the companies point of view, a well
designed product would be pleasant to look at easy to open, install
learn now to use repair and despose etc. The designer has to take all
target market and weights the different benefits and costs.

15

(C) Features
The term features refers to those inherent characteristics of
the product which makes it different and unique from the other
products. In other words features means any special point
differentiating that particular from other product.
Features are characteristics that supplement the products
basic functioning most products can be offered with varying
features. The starting points is stripped down or base version by
adding extra features each feature has a change of capturing the
dance of additional buyers.
Thus features are the biggest competitive goals in the hands
of companies, features make one companys product supplier to
other companies producing similar product.

16

(D) Brand Name

Brand Name refers to that name through which the products
of that company are recognized. Branch Name can be a name, term,
sign symbol or design or a combination of them, intended to
identify the goods or services of one seller or a group of sellers and
to differentiate them from those of competitors.
Branch Name are the most important of any product because
it is the identification of the product. Brand Names may be the
companys name if sold, or it may be a different as the better known
the brand name, the higher will be the sales.
A powerful brand name is said to have consumer franchise.
This is evident when a sufficient number of customer demand that
brand and refuse a substitute even if the price is some what lower.
Today, branch name is such a strong force that hardly anything goes
understand.

17

(E) After Sales Service

Services are activities, benefits or satisfaction that are offered
after sale. In other words a service is any act or performance that
one party can offer to another that is essentially intangible and does
not result in the ownership of anything.
Ferms Hiat provide high quality services undoubtfully our
perform their les services. For e.g. the manufacturers could make an
arrangement with distributors and dealers to provide these services.
Thus the customers durable market is highly competitive in terms of
after sales services.
It sometimes so happens that the company increase a high
cost burden in terms of after sales services. But the company which
provides a better after sales service inspite of its cost burden,
benefits in the long run. Thus many companies prefer to incur high
cost rather than loosing their potential customers.

18

(F) Warranties
Product warranties are an important promotional tool
especially as consumers because more quality sensitive warranty
means authority or justification that the thing sold is fit for use and
the producer accepts reproducibility for repairs over a period of
time.
The company can promote sales by adding a free warranty
offer or service contract. Instead of changing for the warranty or
service contract it offers it free or at a reduced price if the customers
buy that product. Thus, warranty forms an important part of
customer durables customers always except a longer period of
warranty. But the cost burden on the company is very high and the
company has to perform cost benefit analysis while deciding the
period and scope of warranty only that policy should be selected
where the benefits cut run the costs. But it is very difficult to
calculate and maintain balance by cost and benefits.
The warranty period of Bajaj Auto Ltd. is one year, or two
year depending a Bajaj Auto Ltd. is policy. The company replaces
all the parts and movements period is over the retailer.

19

INTRODUCTION
Price is the only element of marketing mix that produces
revenue. All the other elements that is product, place and production
procedure etc. Pricing composition is the first problem facing the
marketing executive.
All profit organizations and many non profit organization set
their prices and product and service. Though most of history price
were set by buyers and sellers negotiating with each other sellers
would also for higher prices then they expect to receive and the
buyers would offer less than their expect to pay. Through bargaining
they would arrive at an acceptable price. Setting one price for all
buyers is relatively a modern idea.
Inspite of the high degree of importance given to the price
mix and the fact that the price mix is only revenue earning element,
most companies do not handle pricing well price is set independent
of rest of the marketing mix rather than as an interstice element of
market positioning strategic and price is not valid enough for
different products items and market segments.
Companies handle pricing in a variety of ways. In small
companies prices are often set by the top management rather than
by the marketing or sales department.

20

THE PRICING OBJECTIVE

BAJAJ AUTO LTD.
1.

Pricing Stability: Bajaj Auto Ltd. is one of the companies in scooter

market in India which call for long term interest of the
business and aim at price stability. This attempt is not to let
price fall low during deprecation and rise too high during
boom.

2.

To Incharge Market Share: The main objective of Bajaj Auto Ltd. is to get
maximum share in scooter market. So they have set their
price at definite level by which they can increase their market
share.

21

Pricing Policy
Pricing Policy is the standing answer of the firm to requiring
problem of pricing. It provides guidelines to marketing manger to
solve appropriate pricing decision. If competition is mainly on price
basis then each marketer generally prices their product at the same
time level their competition.
The Prices of bikes, mopeds etc, are set up by the Bajaj Auto
Ltd. itself and the margin of dealers commission is added in the
company price list. The main reason behind the cheapeners of Bajaj
Auto Ltd. is most of the parts of the moped and bikes manufacture
by company itself.
We can see in the following chart that the Octroy, CST, etc.
should be paid according to the rules and regulation of the
government.

22

Particulars

Amt. (Rs.)

Factory Price
Add: Forwarding Handling and
Loading Charges.
= Total
Add. Central Excise Duty (25%)
Add. Freight Charges
= Net Dealers Price
Add. : Communication
= Retail Price
Add. M. R. C. Entry Tax
Add. Gujarat Sales Tax (4%)
= EX-showroom Price
Add: RTO Tax
Add: Insurance & accessories
= On the Road Price

23

Discounts
The term discounts means a deduction from the nominal
valve or price or amt. of the product. In other words, discount is the
amount, which is taken off the full price of the product. Most
companies modify their basic price to reward the customers from
such acts as early permanent, volume purchases and off-season
buying. This price adjustment are called discounts. Discount is a
very popular tool in the hands of top level management to increase
their sales. The companies make efficient use of this tool to expand
their market. Discount being a reduction in the original price of the
product are relatively cheap from of attracting new customers and
sustaining old owned.

24

Credit Terms
Credit Terms refers to the rules and regulations in the form of
an agreement between the producer and the customers in relation to
the credit facility which the producer gives to their customers. In
other words credit terms are the terms and conditions which are
mutually agreed upon by the customers and producers and relates to
the benefits which each will provide to other party.
Depending on the policy of the management of the company,
credit terms may be remains the same from consumer to consumer
or may services from consumer to consumer. It also depends on
how good relations are between the producer and the consumer.
Credit terms may also change when the policy of the company
changes over a period of time. It is a basic fact that each company
has to give a short or long terms of credit facilities if it wants to
survive in the market and in the cut throat competition. If company
does not give credit facilities, the customer turns to its competitors
product in costlier. Thus credit facility is must for all companies in
order to survive.
The

credit

terms

of

Bajaj

Auto

Ltd.

are

fairly

straightforward. The credit period allowed to the sealer is 60 days.

The company also takes a deposit from the distributors against the
dealerships allocated to them.

25

INTRODUCTION
Promotion has three specific purposes. It communicates
marketing information to consumers, users and reseller. It is not
enough to communicate ideas. Promotion persuades and convinces
the buyer and influences his/her behavior to take the desired action.
Promotional efforts act as powerful tools of competition providing
the cutting edge of its entire marketing programme.
Broadly speaking promotion means to push forward or to
advance an idea in such a way as gain as its acceptance and
approve. Promotion is any communicative, activity whose main
objective is to move forward a product, service or idea in any
channel of distribution. It is an effort by a marketer to inform and
persuade buyers to accept, recommended or use the article, service
or communication with an additional element of persuasion. The
promotional activity always attempts to affect ideas, products
services etc. is the heart of promotion.
Modern marketing causes for more than developing a good
product priding attractively and making it a accusable to target
customers company must also communicate with their present and
potential customers.
Promotion includes the following:

26

Advertising
(A) Introduction: The

American

Marketing

Association

has

defined

advertisement thus Any paid form of non-personal presentation

and promotion of ideas, goods or services by an identified sponsor.
Advertising

is

paid

communication

presentation

and

promotion because the advertiser has to pay for the space of time in
which his advertisements appears. Advertisements appears in the
recognized media, such as news Papers, magazines, radio,
television, cinema film, outdoor, hoarding and posters, directs man
and transit.
It is paid for by a sponsor (seller) who wants to communicate
about his product or service to his customer. The sponsor wants to
persuade and induce the readers, viewers or listeners to take some
action viz. To buy the advertised product so that the advertising
should have max sales.
From the above discussion we can say that each and every
company whether public or private has to advertise for its survival.
Bajaj Auto Ltd. has also undertaken the advertising activate.

(B) Objective of Advertising: The first step in developing advertising program is to see the
advertising objectives. According to Bajaj Auto Ltd. those
objectives must flow from decisions on the target markets, market
positioning and marketing mix. The Bajaj Auto Ltd. has
undertaken the activity of advertising with a view to attain the
following main objectives.

27

1.

To give information about a new Product:

One of the most important objectives of advertising is to

inform potential. Customers about a new product or service if

people know nothing about product how can then buy?

2.

To Create Demands:
The primary object of advertising is to create demand for a

particular product. To inform people about a people is not enough.

They must also be motivated to bug it by informing them the
features attributes and uses of the product M.A. technical wags.

3.

To support sales mans efforts:

Salesman deals directly with customers and advertising

renders great help to them. When the customers come to know.

Characteristics quality and various brand of a product through
advertising.

4.

To Maintain Demand:
The objective of advertising is not only to create demand for

a product, but also to maintain it at current level.

5.

To Reduce Costs:
The main object of advertising is to reduce percentage cost of

production and distribution. Advertisement leads to increase in

sales, hence production expands and cost of production, falls.

6.

Other Objects:
Among the subsidiary objects of advertising, notable nones

are consumers satisfaction, removal of misunderstanding about the

product, expansion of market, evlativate favourable public opions.

28

NEWS PAPER
Bajaj Auto Ltd. has selected newspaper as its media of
advertising because it is the most effective media. It has general and
wide appeal. They are flexible. Periodical change in size and
content is also easy. At local level they are using.
GUJARAT SMACHAR and SANDESH and at the national
level they use different newspaper in different cities. Like in
Mumbai, Ahmedabad and Lucknow give advertisement in Times of
India. In Delhi, Madras, Pune, Baroda, Calcutta, Banglore,
Hydrabad has given advertisement in Hindustan Times and Indian
Express.

MAGAZINES
Magazines are considered to be the most effective media.
Tough its colored attractiveness, Magazines have longer life greater
retentive value as well as reference value further they are using
manages of advertisement because selective appeal is possible
through it, the magazines have most circulation form.
Bajaj Auto Ltd. is also interests in giving advertisement in
magazines. They use different magazine for bikes and mopeds like.
Sport Star, Cricket, Samarat Sports World, Chitralekha, and
Abhiyan etc.
29

TELEVISION
Bajaj Auto Ltd. is using television as important media. They
advertise their product on all most all channels in very popular
program so that they can attract more customers.
Television advertisement can appeal through ear as well as
eye can be demonstrated with explanation. It reaches the guidance
almost like personnel salesmanship. Thus it is really wonderful
mean of mass communication for creative market.
Bajaj Auto Ltd. has adopted Poster, Boards and Electric
Display as a media of outdoor advertising. They are giving
importance to this media because it has long life general wide
appeal. It can also attract number of peoples.

30

PUBLICITY
Publicity is a non personnel stimulation of demand for a
project service or a business unit by placing commercial significant
news about it in a publication or obtaining favorable presentation of
it on radio, T. V. on maganizine that is not paid by the media
sponsor.
For Bajaj Auto Ltd. publicity as one of the part of the
promotion mix which cant be ignored in any case. Till today many
articles regarding the company is published in THE ECONOMIC
TIMES etc. Through publicity of its company Bajaj Auto Ltd.
has created own goodwill in market.

31

SALES PROMOTION
(A) INTRODUCTION: This is one of the constituent of promotion news. Which is
concerned with extra efforts for increasing sales. Today, sales
promotion is necessary and not merely a luxury or fashion. It is not
expenditure; it is an investment, which can pay rich dividend. This
is one of the constituents or promotion-mix, which is concerned
with extra efforts for increasing sales.
Sales promotion is referred to activities other than personal
salesmanship, advertising and publicity. Which stimulate dealer
effectiveness and consumer purchasing. In a broader sense, the
terms refer to almost all activities of marketing oganisation. Proper
selection of sales man. Payment of reasonable salaries to them,
provision of their attempts to improve relations with distributors
and consumers, advertising etc. are the activities all of which
essential aim at increasing sales.
Sales promotion is defined by the American Marketing
Association to mean those marketing activities other than selling
advertising and publicity that stimulate consumer purchasing and
dealer effectiveness, such as display shoes and expositions,
demonstration and various non-recurrent selling efforts not in the
ordinary routine.

32

SALES PROMOTION INCLUDES

TOOLS FOR
(i)

TRADE PROMOTIONS: [E.g. buying allowance, Free Goods machinery, Allowance,

Cooperative advertising, Push money dealers Sales contents]

(ii)

SALES FORCE PROMOTION: [E.g. Bonus, Sales retailers]

In short sales promotion is a bridge or connection between

advertising and personnel selling.

Bajaj Auto Ltd. spends too much on business promotion.
These tools are used for such purpose as gathering business leads,
increasing and recording customers. The Bajaj Auto Ltd. takes part
in exhibition held up or organized by some club or other
association.
Thus the cost of the tool is very less but their value is very
too much high. Large number of people attend this fair and come in
contact with the product of the Company and its uses.

33

INTRODUCTION
More production of commodity is not enough but is must
reach to the right man at the right time and at the right price. In
marketing point of view place mist strategy is the second important
element of the marketing mix. Place mix has two sub divisions.

1.

CHANNEL OF DISTRIBUTION: Channel of Distribution is the best of marketing institution

participating in the marketing activities involved in the movement

or the flow of goods or services from the primary producers to the
ultimate consumers. In the field of marketing the channel of
distribution indicates roots on Parth way through which goods and
services flow or move from producer to consumers.

2.

PHYSICAL DISTRIBUTION: Physical Distribution consists of those marketing activities

related to the physical handing of goods such as protective

packaging, order processing, inventory management, transportation
and warehousing.
If you build a better mousetrap the world will beat at your
door. But too often the marketing practitioner finds that the
customers cuts the delivery of that better mouse trap at the right
place at the right time and at the right quantity. The physical
distribution function like other half of marketing is responsible for
completing the marketing transaction.

34

SELECTION OF CHANNEL
The problem of selecting the best distribution channel is the
most complex one. There are many factors affecting the channel
choice as like natures of the product marketing environment etc.
These all are the very important factors or determinants of the
distribution channel. Every marketer has to consider all these
factors at the time of selection the distribution channel while
selecting the channel member. Bajaj Auto Ltd. takes the following
factors into consideration.

1.

FINANCIAL CONDITION:
Before appointing a dealer or agent or retailers Bajaj Auto

Ltd. finds out the financial condition. If the financial condition is

sound then Bajaj Auto Ltd. looks other aspects also.

2.

LOCATION:
Location is the most important for wide market coverage

Bajaj Auto Ltd. showroom are mostly located nearer to the

competitors showroom and in the centre of the city.

3.

REPUTATION IN THE MARKET:

This is considered as the GOODWILL of any dealer agent

or retailer of Bajaj Auto Ltd. and also Bajaj Auto Ltd. takes care
to select the candidate who has some reputation in market.

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4.

PROVISION FOR AFTER SALES SERVICE:

If dealer, retailer or wholesaler is ready to give after sales

service to the customer, the Bajaj Auto Ltd. takes particular

decision for selection. Not only that Bajaj Auto Ltd. has offered
the after sales service on its vehicle.

NUMBER OF CHANNEL LEVEL

Distribute means to distribute, spread out or disseminate. In
the field of marketing channel of distribution indicate routes or
pathways through which goods and services flow or from producers
to consumers. Thus the channel of distribution flow of:

1.

Information.

2.

Marketing Communication (Promotion).

3.

Material.

4.

Man Power.

5.

Capital Equipment.

6.

Negotiation and transaction.

Bajaj Auto Ltd. has good channel of distribution to meet the

customers demand easily of Bajaj Auto Ltd. has also started to

appoint the dealer in the rural area to cover the whole nation.

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In the Rajkot Rajarshi Auto Deals Pvt. Ltd. and

Automotive are two prime or authorized dealer of the Bajaj Auto
Ltd.

MARKET COVERAGE
Once the general channel decide it has to be used to increase
in the share of market. Market coverage is an important activity
while the company is passing from the period of stability. The
Bajaj Auto Ltd. has also created its good position in the corporate
market. It is number one in moped and scooter and now a days in
Bikes Bajaj Auto Ltd. gets good part in the total market share.

TRANSPORTATION
Markets need to be concerned with their companies
transportation decision. Transportation choice will affect the pricing
of the product on time delivery performance and the condition of
the Bajaj Auto Ltd. which they arrive all of which affect customer
satisfaction. Transportation is cause of problems of physical
distribution. It is sometimes caused the guardian knock of physical
distribution management.

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WARE HOUSING
Every company has to store its goods while they cant be sold
immediately storage. Function is necessary, because production and
consumption cycle is rarely matched. The company must decide on
a desirable numbers of stocking locations. More stocking location
means that goods can be delivered to customers more quickly. The
number of stocking location must strike a balance between
customers service level and distribution costs. So far as Bajaj Auto
Ltd. is concerned it is not the practice of the company to provide
warehousing facility to the dealers. Hence, to make arrangement of
go downs for the storage of two wheelers. In Rajkot Rajarshi Auto
Deals Pvt. Ltd. has a very big warehouse.

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Conclusion
On the basis of comprehensive research of the Bajaj Auto
Ltd. under gone at Rajarshi Auto Deals Pvt. Ltd. it can be
concluded that the position of the Bajaj Auto Ltd. in the corporate
field is very strong. The well experienced efficient and industrious
sales force is the strength of it. The value of the Bajaj Auto Ltd. is
more than the other vehicles manufactures.
Sophisticated mass production technology including the latest
machinery and equipment for material handing, precision high
volume machinery, robotic welding, automated painted and
conveyorized vehicle assembly amongst others, are partly
reasonable for this fact thus we can say that prudent and correct
management plays an integral part in the whole affairs.
The production of vehicle is done in less time and pass
through the 120 quality control checks. Thus such a facility does
not only consumers tooling, which meet precise standards but also
reduce the lead-time for introducing new model. Quality control is
practicing every good engineering company and with Bajaj Auto
Ltd. it appear to be way of life.
All the Bajaj Auto Ltd. Scooters and Bikes have very strong
and nice engine and it will obey the pollution control department of
India. All the exciting product are being of started. The policy will
be watch the market keep track of the shift and get develop
technology for creating to the demand.
At present Bajaj Auto Ltd. enjoys monopoly in the field of
Scooter. It is trying level best to secure the position in the bikes
even though from the regional levels network of Bajaj Auto Ltd.
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