Jaipuria Institute of

Management,
Vineet Khand, Gomti Nagar
Lucknow – 226 010

Academic Year 2019-20

Batch 2019-21
Trimester nd
2 Trimester
Programme
(PGDM / PGDM-FS / PGDM-RM) PGDM (Retail Management)
Name of Course Marketing Management
Section E
Name of Faculty Prof. M.A. Sanjeev
Nature of submission
Project Report
(Assignment / Project Report)
The topic of Assignment / Project
Bajaj Auto
Deadline for submission
Group/ Learning Team Number
Maximum allotted marks

Contribution of group/LT members in the assignment/project

Sl.
Name & Enrolment Number of Student Contribution Signature
No.

Date of receiving at PMC Signature of PMC staff

Penalty (marks to be deducted):
 TABLE OF CONTENT

SNO. TITLE PAGE NO.

1 ABOUT THE COMPANY 3

2 MARKET SEGMENTATION 4

3 STP 7

4 SWOT ANALYSIS 7

5 FBV LADDER 8

6 STP TABLE 9

7 NEW PRODUCT 11
 ABOUT THE COMPANY
Bajaj Auto is a major Indian vehicle manufacturer headed by Rahul Bajaj. It is based in Pune,
Maharashtra, with plants in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar
(Uttaranchal). The oldest plant at Akurdi (Pune) now houses the R&D centre Ahead. Bajaj
Auto makes and exports automobiles upcoming scooters, motorcycles and the auto rickshaw.
The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1,946, although it does not
feature in the 2010 list.
Over the last decade, the company has successfully changed its image from a scooter
manufacturer to a two-wheeler manufacturer. Its product range encompasses upcoming
scooters and motorcycles. Its real growth in numbers has come in the last four years after
successful introduction of a few models in the motorcycle segment.
Bajaj Auto came into existence on 29 November 1945 as M/s Bachraj Trading Corporation
Private Limited. It started off by selling imported two- and three-wheelers in India. In 1959, it
obtained license from the Government of India to manufacture two- and three-wheelers and it
went public in 1960. In 1970, it rolled out its 100,000th vehicle. In 1977, it managed to produce
and sell 100,000 vehicles in a single financial year. In 1985, it started producing at Waluj near
Aurangabad. In 1986, it managed to produce and sell 500,000 vehicles in a single financial
year. In 1995, it rolled out its ten millionth vehicle and produced and sold one million vehicles
in a year.
Bajaj has grown operations in 50 countries by creating a line of value-for-money bikes targeted
to the different preferences of entry-level buyers.
 MARKET SEGMENTATION
The market for Bajaj Pulsar bikes has been segmented on following basis.
1. Demographic
2. Psychographic
3. Behavioural basis.
Demographic Basis: -
Age Group: -The main focus of company is to sell bikes to young middle-class people in the
age group of 18-30 yrs. as they are looking for a performance bike in reasonable cost.
Income Group: -Company targeted to sell the products to middle income class people as
they were the class who were demanding for high power bikes in cheap rate.
• No Income (Students)
• Low Income (Young Professionals)
Psychographic Basis: -

Bajaj promoted its bike as the no.1 performance bike of India and hence the target was of
segment looking for sporting bike with a high speed.

Behavioural Basis: -

On loyalty basis:

1. Hard core loyal.

2. Split loyal.
3. Shifting loyal.
4. Switchers.

On basis of attitude:

1. Upbeat enjoyers.
2. Financial Negative.
3. Financial Positive

Age and Life-cycle stage of the consumer

• Based on this demographic factor the market is segmented into youth-centric bikes and
the bikes preferred by middle aged consumer
• The features of the bikes are designed according to the market segment targeted e.g.
Youth-centric bikes are high on power and acceleration whereas the middle-aged
consumer prefer low maintenance and better fuel efficiency in a bike
• The buying roles also differ in the purchase of the bikes of these two segments

The market is divided in to sub – segments based

Usage rate of the bike

• In India with the varying quality of roads available in the rural and urban areas there
exists segments based on the usage of the bike
• The rural and suburban users prefer to have a bike having considerable mileage and
lower maintenance cost
• Often the consumers of rural and suburban areas have to use the bike for comparatively
longer journeys so comfortable drive also becomes a major feature in the design
• Whereas the urban market has a larger need for better styled and high-power bikes

The market division of Bajaj Pulsar is done dependent on the statistic normal for age and life-
cycle organize the buyer is in. It is accessible in 5 variations in the market with various
highlights and for the most part contrasting in the motor limit. Each model has an alternate
client base yet the essential figure taken thought for division is the age and life-cycle phase of
the customer. The age bunch focused on ranges from 20 to 35 or more its objective base is
likewise the school going children and youthful office going individuals. The sub segmentation
based on the model variant is
1. Pulsar 135 cc
• Pulsar 135cc approximately costs INR 59000 and offers a better mileage (approx. 65
kmpl) than the other variants of Pulsar due to its lower engine capacity
• This model is relatively new as compared to the other models of Pulsar and has been
introduced mainly to cater to the growing demand of a fuel-efficient sports bike
• Target market: The young college going students and working professionals who need
a fuel-efficient bike along with a sporty macho image
2. Pulsar 150 cc & Pulsar 180 cc
• Pulsar 150 cc is the flagship model of the Pulsar and the first model of Pulsar to be
introduced in the market
• The approximate price of the 150 cc and 180 cc model are INR 69000 and INR 73000
respectively showing insignificant variation in the cost
• The main difference in these two models is in the terms of the fuel economy where 150
cc engine offers 50-55 kmpl and the 180-cc engine offers 40-45 kmpl
• Target markets: People a little higher in income levels E.g. Managers executives,
college students belonging to families belonging to above average income strata
3. Pulsar 200 ns & Pulsar 220 cc
• These are the high-end models of the brand “Pulsar” in terms of features, power and
cost
• They are available at an approximate price of INR 90000 and are significantly different
visually and qualitatively from the other Pulsar models

Target market: Biking enthusiasts and for the consumers who can’t afford high power costly
imported bike
Some of the major competitors of Bajaj with bikes in 150cc+ category which are a
competition to Pulsar are
1. Hero MotoCorp
• CBZ xtreme, Karizma ZMR & Hunk
➢ Target Segment: Age group 18-35
College going students or young professionals
➢ Product Strategy: Acceptable performance with low maintenance
➢ Pricing Strategy: Going rate pricing
➢ Promotion Strategy: High Spending
➢ Positioning Strategy: Powerful bike for daily usage

2. Honda
• Unicorn
• CBR-150
➢ Target Segment: Age group 18-45
College going students or young and middle aged consumer
➢ Product Strategy: Stable performance with better handling
➢ Pricing Strategy: Going rate pricing
➢ Promotion Strategy: Moderate Spending
➢ Positioning Strategy: Hassel-free bike for daily usage

3. Yamaha
• FZ-S, Fazer & R-15
➢ Target Segment: Age group 18-30
College going students or young professionals
➢ Product Strategy: Technologically advanced
Scaled down version of their internationally successful bikes
➢ Pricing Strategy: Premium pricing
➢ Promotion Strategy: High Spending
➢ Positioning Strategy: Youth-centric and style with technology

4. TVS
• Apache-RTR
➢ Target Segment: Age group 18-35
College going students or young professionals
➢ Product Strategy: Replicating every successful feature of bikes available in
segment
➢ Pricing Strategy: Going rate pricing
➢ Promotion Strategy: Moderate Spending
➢ Positioning Strategy: Youth-centric and high acceleration bike
 Market Segmentation, Targeting and Positioning
Segmentation
• Before Pulsar, Bajaj was just known for its scooter as its various attempts failed to pose
a threat to the Hero Honda’s supremacy.
• But Bajaj strategically placed Pulsar in the market against the CBZ in the 150cc
segment.
• Pulsar proved to be a land mark in reviving the fate and position of Bajaj thereby posing
a threat to Hero Honda’s rule in Indian market.
• USP of Pulsar wasn’t its performance but its advertising, targeting & positioning.
Targeting
• Bajaj did all the right moves by targeting the youth and “He-bike”, and making Pulsar
an inseparable attribute to Males.
• Pulsar was Bajaj’s first bike without Kawasaki label on it.
• The bike’s orientation was towards being a macho and manly bike.

Positioning
• Bajaj has positioned Pulsar in the “High Style High Price” segment along with Hero
Honda Karizma, Hero Honda CBZ, Royal Enfield Bullet.
• It also has positioned CT 100 in the “Low Style Low Price” segment along with Hero
Honda Splendor, TVS Star City.

SWOT ANALYSIS
1. Strength
• Extensive R&D focus
• Upcoming Electric scooter named as chetak
• High performance products in 150cc categories
• High export to domestic sales ratio
• High economies of sale
• Legacy of brand name
• Highly experienced management
• Great finance support network
• Product design and development capabilities
2. Weaknesses
• Has presence mostly in one area of market (150cc)
• No gearless scooter.
• Still not a very established name in the global market
• Hasn’t employed the excess cash for long
• Centralized paternalistic management style
3. Opportunities
• Bajaj on internal analysis found that it lacks technical expertise to deliver
competitive goods
• Growing gearless trendy electric scooters market
• Can invest and grow in gearless scooter segment.
 4. Threats
• Tough competition from domestic as well as foreign players
• Margin squeezes from all the directions
• The competition catches up with any new innovation in no time

FBV Ladder for Bajaj Auto

Platina PULSAR 150 PULSAR 200 DOMINAR
The single-cylinder, 373.3cc liquid
5 Speed Gear Box, Carburettor
Superior front liquid-cooled, 199.5cc cooled single
Fuel System, Single Channel
Features suspension – engine is shared with the cylinder motor now
ABS, Halogen Head Lamp,
28% longer. RS 200, albeit with fuel makes 40PS (up by
Alloy Wheels
injection. 5 PS).
Better performance
and refinement than
Free before, LED
Accidental Sporty styling, Good headlamp is best in
Free Accidental Death
Benefits Death performance, Affordable the business, New
Insurance, Service Points.
Insurance, price. USD forks make
Service Points. front end more
stable and
communicative.
It gets new upside-
The highlight
down open cartridge
of the new The new motor complies with
forks and revised
Bajaj Platina BS-IV emission norms and is
The Pulsar 200NS is a front fender. the rear
110 H-Gear is mated to a 5-speed gearbox.
great alternative to the mono-shock has
the additional The engine also features
KTM Duke 200 on been updated with
fifth gear that Evaporative Emission Control
Function which it is based. It's not new spring rates for
not only helps System (EVAP) that recycles
al Values as powerful or fun to better shock
in enhancing fuel that vaporises from the
ride, but it packs in the absorption. Its
the cruising tank and uses it for combustion.
best price-performance 320mm front disc
speed but also Bajaj claims that the new Pulsar
in its class. brake now gets
benefits the 150 will run for 65km on a litre
radially mounted
fuel of fuel.
brake callipers for
efficiency.
better braking.
Bajaj Auto have a customer
relationship management
(CRM) system designed to
Emotion
track critical activities such as
al Values
sales, service visits, spare part
needs and other aspects of the
customer experience.
 STP Table for the Two-wheeler Vehicle in India

Companies
→
BAJAJ HERO MOTOR CORP HONDA TVS
Engine
(CC) ↓
PLATINA, CT100, SPLENDOR, PASSION, CD-DAWN, CD, DREAM, LIVO, SPORT, CITY,
100-125
V12, DISCOVER HF-DELUX, GLAMOUR SHINE, SP125 VICTOR, RADEON
PULSAR, V15, UNICORN,
150-180
AVENGER XTREME, ACHIVER HORNET, XBLADE APACHE
PULSAR,
200+ DOMINAR,
AVENGER XPULSE, XTREME, ZMR CBR APACHE

BRANDING
Bajaj and its competitors
 New Product / Modification in Market Strategy
In the current scenario of Chetak, there is a need for a new product which can be the new E-
Chetak.
The automobile industry is shifting their self from crude oil running vehicle to vehicle running
on electric. This is due to the current global situation of pollution.
With the launch of the new E-Chetak, we have to develop a new marketing strategy for the
public of India. As the previous, was very well accepted by the customer, for that we have to
build such strategy that customer without any second thought he/she will purchase E-Chetak.
They have a tag line “HAMARA KAL”, inspired from “Hamara Bajaj”.
Marketing strategies can be like adding subsidiaries that are provided by the government of
India on the electric vehicle and benefits for the long run. Regular refilling of petrol will decline
and the emission of pollution is controlled which will be beneficial to the environment.