With special reference to MARKETING STRATEGIES OF BAJAJ

AUTO LIMITED
A dissertation submitted to Bharathidasan University in partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION SUBMITTED BY PRASHANT.P.MESHRAM

PROJECT OUTLET

Mr.ABHISHEK GAUTAM

UNDER THE GUIDENCE OF

BHARATHIDASAN UNIVERSITY Centre for Distance Education, Palkalaiperur Tiruchirappalli-620023 JULY-2011 GLOBAL SCHOOL OF BUSINESS, NEW DELHI
CENTRE OF DISTANCE EDUCATI BHARATHIDASAN UNIVERSITY, TIRUCHIRAPALLI-620 023

CERTIFICATE
This is to certify that the dissertation entitled is submitted to Bharathidasan University in partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION is a record work by PRASHANT.P.MESHRAM during the academic year 2011.

Signature Internal Examiner

Signature External Examiner

MR. LALITYA SRIVASTAVA, MBA Dean Global School of Business New Delhi

DECLARATION
I Prashant.P.Meshram, hereby declare that the project report entitled SALES S Submitted in partial fulfilment of the requirements for the degree of Masters of business Administration to Bharthidasan University, India, is my original work and not submitted for the award of any other degree, diploma, fellowship, or any other similar title or prizes. I would like to category mention that all the information that have been collected, analyzed and known for the project is entirely authentic possession of mine

Place: Date :

Signature of Student

ACKNOWLEDGEMENT
It is with the feeling of satiated and sense of Zenith that I draft this acknowledgement note. I wish to express my gratitude to those who have generously helped me to compile the Dissertation and stand up high, to the expectation of the institute. I wish to express my deep sense of gratitude to my faculty guide Mr.ABHISHEK GAUTAM,GLOBAL SCHOOL OF BUSINESS, BADARPUR, NEW DELHI for her guidance has aided me in the completion of this project. I further declare that the information presented in this project is true and original to the best of my knowledge.

PRASHANT.P.MESHRAM

INDEX
TOPIC: - Study of Marketing Strategies of Bajaj Auto Ltd.

CHAPTERS NO 1) AIM 2) HYPOTHESIS 3) OBJECTIVE 4) INTRODUCTION OF BAJAJ COMPANY 5) RESEARCH METHODOLOGY 6) DATA ANALYSIS 7) DATA INTERPRITATION 8) SUGGESTION & CONCLUSION 9) BIBLIOGRAPHY

PAGE NO 4 6 8 10 24 29 36 39 42

List of Graph

Page No

6.1) Why did you want to purchase a particular bike? 6.2) Why do you choose a particular bike? 6.3) How many years you have been using this bike? 6.4) Whether the warranty period influenced your Purchase discussion at any stage? 6.5) Are you satisfied with after sales service available of this bike? 6.6) Will you suggest this bike to any of your relatives or friend?

30 31 32 33 34 35

CHAPTER-1

AIM

AIM:To Increase the Sale of Products of Bajaj Auto Ltd

CHAPTER- 2

HYPOTHESIS

HYPOTHESIS
Hypothesis is usually considered as the principal instrument in research: Its main function is to suggest new experiments and observations. In fact, many experiments are carried out with the deliberate object of testing hypothesis. Hypothesis means a mere assumption or some supposition to be proved or disproved. Thus a hypothesis may be defined as a proposition set for the as an explanation for the occurrence of some specified group of phenomena either asserted merely as a provisional! Conjecture to guide some investigation. A research hypothesis is a predictive statement, capable of being tested by scientific methods, that relates and independent variable to some dependent variables.

CHAPTER- 3

OBJECTIVES

OBJECTIVE:(1) To gain familiarity with a phenomenon or to achieve new insights into it. 2) To portray accurately the characteristics of a particular Individual situation, and groups. 3) To determine the frequency with which something occurs or with which it is associated with something else. 4) To test a hypothesis of a causal relat5ionship between Variables.

CHAPTER 4 INTRODUCTION OF THE COMPANY

INTRODUCTION OF COMPANY
The Bajaj Group is amongst the top10 business houses in India. Its footprint stretches over a wide range of industries, spanning automobiles (two wheelers), home appliances, lighting, iron and steel, insurance, travel and finance. The groups flagship company, Bajaj Auto, is ranked as the worlds fourth largest two and three- wheeler manufacture and the Bajaj brand is wellknown in over a dozen countries in Europe, Latin America, the US and Asia. Founded in 1926, at the height of Indias movement for independence from the British, the group has an illustrious history. The integrity, dedication, resourcefulness, and determination for success which are characteristics of the group today are often tracked back to its birth during those days of relentless devotion to a common cause. Jamnalal Bajaj, founder of the group, was a close confidant and disciple of Mahatma Gandhi. In fact, Gandhiji had adopted him as his son. This close relationship and his deep involvement in the independence movement did not leave hymnal Bajaj with much time to spend on his newly launched business venture. His son, Kamalnayan Bajaj, then 27, took over the reins of business in 1942. He too was close to Gandhiji and it was only after Independence in 1947, that he was able it gives his full attention to the business. Kamalnayan Bajaj not only consolidated the group, consolidated the group, but also diversified into various manufacturing activities. The present chairman and Managing Director of the group, Rahul Bajaj, took charge of the business in 1965. Under his leadership, the turnover of the Bajaj Auto the flagship company has gone up from Rs.72 million to Rs.46.16 billion (USD 936 million), its oviduct oirtfikui has expanded from one to and the brand has found a global market. He is one of Indias most distinguished business leaders and entrepreneurial spirit. Bajaj Auto is a major Indian automobile manufacturer. It is Indias largest and the worlds 4th largest two and three- wheeler maker. It is based in pune, Maharashtra, with plants in Akurdi, and Chakan (near Pune),

Waluj (near Aurangabad) and exports motorscooters, motorcycles and the auto rickshaw The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946. Over the last decade, the company has successfully changed its image from a scooter manufacturer to a two wheeler manufacture. Its product range encompasses Scooterettes, 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. The company is headed by Rahul Bajaj who is worth more than US 1.5 billion. MANAGEMENT PROFILE List of Directors 1. Madhur Bajaj 2. Rajiv Bajaj MANAGEMENT PROFILE List of Directors 1. Rahul Bajaj 2. Madhur Bajaj 3. Rajiv Bajaj 4. Sanjiv Bajaj 5. D S Mehta 6. Kantilkumar R Podar 7. Shekar Bajaj 8. D J Balaji Rao 9. I N Godrej 10. S H Khan 11. Suman Kirloskar 12. Naresh Chandra 13. Nanoo Pamnani 14. Manish Kejriwa; 15. P Murari Vice Chairman Managing Director Executive Director Whole Time Director Director Director Director Director Director Director Director Director Director Director Vice Chairman Managing Director

INDUSTRY DEVELOPMENT PROFILE India is the second largest manufacture and producer of two wheeler in the world. The motor cycle segment was no different with only three manufactures viz Enfield Ideal Jawa Escorts the motorcycles segment was initially dominated but Enfield 350 cc bikes and Escorts 170 CC bike. With the availability of fuel efficient low bikes demand swelled resulting in Bajaj then the only producer of four stroke bikes ( 100 CC category) gaining a top slot. In the 90s, this trend was reserved with the introduction of Scooters in line with this Scooter segment has consistency lost part of the market share in the wheeler market. Barring Bajaj Auto all the major producer suffered from accession in year 93 and year 94 Bajaj Auto showed a marginal decline in 1992. The recession in the sector where the incessant rise in fuel process high input costs reduced purchasing power due to significant rise in general level and credit crunch in customer financing.

COMPANY BACKGROUND:Bajaj Auto Ltd (BAL) is the second largest tow-wheeler maker in India. It was established in 1945, as a trading company and obtained a production license in 1959. It initially struck a technical collaborating with piaggio of Italy started selling products under the Bajaj brand name.

BUSINESS:BALs product range includes Scooters (geared and ungeared), motorcycles, step troughs, three-wheelers and spare parts, BAL has undergone a change from being a predominant player in scooters till 2001-01 becoming the second biggest manufacturer in motorcycles that also produces scooters.
Particulars April November 2007 April November 2006 Growth% MOTORCUCLES 1,483,741 1,656,591 -10 ________________________________________________________________________ TOTAL 2 WHEELERS 1,501,242 1,671,462 -10 3 WHEELERS 198,415 209,449 -5 TOTAL 2 & 3 1,699,657 1,880,911 -10 Exports out of the above 409,889 286,343 43

Bajaj Auto holdings is fully owned subsidiary of BAL. Other associates include Maharashtra scooters Ltd., where it has a 24% stake, and Bajaj Auto finance LTD, Where it has a 31.3% stake.
BAJAJ AUTO DECLAIRES HIGHEST-EVER TURNOVER OF RS.72 MILLION 1) HIGHLIGHTS OF Q2:

Turnover Rs. 25.1 billion V/s. Rs. @5.8 billion Net profit Rs. 3.4 billion V/s. Rs. 3.2 billion Operating EBITDA 15.8% Sequential improvement in operating EBITDA from 13.2% in Q1/2007-08 to 15.8% Export (Nos.)-41 %, cross Rs. 10 billion in H1 This quarter represents, 2nd highest operating profit in the history of company 2an highest profit before tax 2an highest Net profit

In No 2007-08 2006- 07 Motorcycles 531,561 623,061 2-Wheeler 539,212 627,441 3-Wheeler 74,881 80,683 Total 614,093 708,124 Exports (out 151,318 111,846 of these)

2007-08 2006-07 1,025,558 1,191,248 1,039,467 1,203,660 148,217 151, 58 1,185,684 1,355,218 308,033 210,109

1) Motorcycles:(a) Industry slowdown witnessed form January 2007 continued. Motorcycles industry declined by 11% in the first half or the year. (b) Decline was restricted to the 100cc segment. While 100cc declined by 22%, the 125cc plus segment actually grew by 16% (c) Bajaj Auto maintains its leadership in the 125ccplus segment with a market share of 47% (d) Bajaj auto will continue to focus the profitable 125ccplus segment. (e) Toward this, Bajaj Auto launched 125cc XCD DTS-Si. The company has met its first months target with sales of over 18,000 units. The advance booking virtually cover Octobers 2007 production target of 50,000 units. The company is expanding capacity to 75,000 units by January 2008. (f) The production of pant agar plant crossed 100,000 motorcycles within just six months of commissioning of the plant.

Exports:a. Exports maintained its robust growth momentum b. During the first half of the year, exports crossed Rs. 10 million. c. Export volumes.
In No Q2 2007-08 2Wheelers 126,974 3Wheelers 31,244 Total 158,218 Values Rs 5,182 Millions Growth 2006-07 78, 98 32,948 111,846 4,261 61% -5% 41% 22% H1 2007-08 241,529 66,493 308,022 10,323 H2 Growth 2006-07 150,075 61% 60,034 11% 210,109 47 % 7,885 31%

# Gross profit after interest, but before depreciation and taxation

(a) Operating EBITDA margin or the quarter 15.8%. (b) Sequentially EBITDA margin improved from 13.2% in Q/2007-08 to 15.85. (c) Improvement in margins is attributed to richer product mix, control on costs and ability of the company to command for its brands in the 125cc plus category (d) In view of continues appreciation of rupee, the company has increased prices of its products for export w.e.t.1st September 20007. (e) It is heartening to not that during this quarter the company achieved. 2nd highest operating profit (after interest, but before deprecation and taxation) in its history Rs. 3.7 billion. 2nd highest profit before tax Rs. 4.7 billion 2nd highest net profit Rs. 3.4 billion.

INTERNATIONAL TRADE

Presence Distribution networks covers 50 countries. 205, 240 units exported in 2005-06 Dominant presence in Sri Lanka, Colombia, Bangladesh, Mexico, Central America, Peru, and Egypt. Largest exporter of three-wheelers, over 79,297 units exported in 2006-07 All products customized as per marker needs. 29 per cent growth in total exports over 2006-07 In countries where we perceive a good market potential, we seek a tie up with one of the major industrial establishments, which would be in a position to invest in the project and which would also entail manufacturing activities apart form marketing, distribution and after sales services through a well established nation-wide network. We offer a full range of services to such business partners Training in sales, services, and spare pats management based on the bajaj distribution system. Active support for setting up manufacturing facilities overseas including transfer of technical knows how. Assistance in setting up an assembly plant for vehicles form complete knocked down (CKD) kits. Sect machinery and equipment, training of technical personnel, all in phased manner as required by the regulations in the recipient country.

INFRASTRUCTURE:-

PLANTS:Bajaj Autos three plants at Akurd, waluj and Dahakan in which 1, 814, 79 vehicles are manufactured in year 2004-3005. Akurdi Waluj Geared scooters, ungeared scooters and Discover Bajaj pulsar, Bajaj Crystal, Bajaj XCD and Three wheelers

Plants Location:Bajaj Auto plants are Located at:Mumbai- Pune Road, Akurdi, Pune-411035 Bajaj agr, waluj, Aurangabad 431 136 MIDC, PLOT NO. A1, Mahakunge village, chakan 410 204, Dist. Pune QUICK FACTS Founder Year of Establishment Industry Business Group Listing & its codes Presence

Joint Venture Registered Office Tel: Fax: Work

Jamnalal Bajaj 1926 Automotives Two & Three wheelers the Bajaj Group BSE - Code: 500490; NSE - Code: BAJAJAUTO Distribution network covers 50 countries, Dominant presence in Sir Lanka, Bangladesh, Columbia, Guatemala, Peru, Egypt, Iran and Indonesia. Kawasaki Heavy Industries of Japan Pune 411035 India + (91)-(20)-27472851 + (91) - (20) -27473398 *Akurdi, pune 411035

& Head Akurdi

Bajaj Nagar, waluj Aurangabad

 Chakan Industrial Area, Chakan, Pune 411501

E-mail Websites

rahulbajaj@bajajauto.co.in

Www. Bajajauto.com

SEGMENT AND BRANDS Products Brands Motorcycles 4S Bajaj CT 100 Bajaj Pulsar DTSi Bajaj 125 Caliber KB RTZ Scooters Wind Bajaj XCD 125 115 KB 100 Boxer Kawasaki Bajaj Eliminator KB125 Bajaj Wave Champion Bajaj Discover Bajaj Bajaj Avenger Bajaj Platina Pulsar Bajaj Sonic

Bajaj Chetek Bajaj Kristal Dtsi

BAJAJ SUPER

BAJAJ CT-100

BAJAJ SPIRIT

BAJAJ CALIBER

BAJAJ PULSAR-150

BAJAJ DISCOVER-125

BAJAJ PULSAR-200

BAJAJ DISCOVER-135

BAJAJ NINJA 250

AVENGER

KEY POLICIES

BAJAJ Distinctly TPM POLICY We at Bajaj Auto adopt TPM as The Prime Mover Towards Excellence. We will continuously strive to excel with Customer Focused activities throughout our business processes including Suppliers & Dealers. Innovation, Speed & Perfection would be our guiding principles while doing so. TPM way of working will be implemented companywide to create a participative work environment where all employees target to eliminate losses and also strive to prevent its future occurrences leading to greater organizational profitability, higher employee morale and above all Greater Customer Satisfaction. Ahead

10.3.2.7

Rajiv Bajaj Managing Director.

CHAPTER-5

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
MEANING OF RESRARCH:

Research is a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. It is an academic activity and as such the term should be used in a technical sense. Research is, thus an original contribution to the existing stock of knowledge making for its advancement. It is a pursuit of truth with the help of study, observation, comparison, and experiment. In short, the search for knowledge through objective & systematic method of finding solution to problem is research.
DEFINATION:1)

According to Advanced Learners Dictionary, A research is a careful investigation or inquiry especially through search for new facts in any branch of knowledge.

2) According to Clifford woody, Research comprises defining and redefining problems, formulating hypothesis or solution; collecting, organizing and evalitating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis.

RESEARCH METHODOLOGY Research methodology is a way to systematically solve the research problem. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research method techniques but also the methodology. Example:An architect, who designs a building, has to consciously evaluate the basis of his decisions, i.e., he has to evaluate why and on what basis he selects particular size, number and location of doors, windows and ventilators, uses particular materials and others and the like. Information is of central importance. It plays an important role in
conducting any research, which ultimately result in conclusion, and new findings. The information regarding any organization reflects itself, its potential, and its weight of position in the market. Our purposed for collection information it to quench over trust. Besides that to make a completed study of the management, production criteria, policies of production, prices, placement and packaging etc the information extracted form he data collection is an input and information getting is an output. Depending on the information getting, the information / data extracted divided under two categories.

1) Primary Data 2) Secondary Data

Primary Data Primary Data is first hand data. Data which originally collected for an investigation are known as primary Data. It is collected b the researcher himself hence it is accurate in nature. Methods of collecting primary Data 1. Observation method Observations are the method of obtaining information about the world around us. All observation is not scientific observations. An observation becomes scientific, if it is planned and recorded systematically and is subject to checks and controls on validity and reliability. It is method of data collection, depends upon the researchers prejudices and biases, his power of perception, his outlook, his ability to recognize causal relationship or sequences and accuracy in recording the results of observations. 2. Direct Industrial Visit For getting knowledge a fulfilling demands of knowledge to satisfy questions. Direct industrial visit made to Research Universe (Bajaj authorize showroom and service stations Arun Automobile patni Automobile) that provieda information and knowledge anpir assembly; ones and answer of some question of finished goods? How it proceeds? Which categories and recent technology are used? This research obtains a greater depth of experiences. That helps to find out the configuration of cost benefit value and satisfaction, value on the basis of benefits and cost. LIMITATION It is difficult to make answer to certain question because, many times respondent not know the answer, he may not be thinking critically, he may not understood the direction correctly, etc.

SECONDARY DATA
The sources of information that a researcher should tap vary with his interest and the type of study he has undertaken. The sources of information are classified into died and documentary sources. The Secondary Data may be collected form primary sources, Secondary Data sources and tertiary sources of information the primary sources of information include first hand account of experimentation and investigation ( articles in professional journals, monographs and questionnaires) originally works (Letters, Diaries, poems, novels and autobiographies) and report testimony, report of govt. department and agencies, annual reports and minutes. Tertiary sources of information include textbooks. Textbooks are generally complies form Secondary sources of information and some textbooks have become the authorities sources of information. SOURCES OF SECONFARY DATA:The main source of Secondary Data is as follows 1) Bibliographies A bibliography mostly contains particulars of books and articles published in a particular discipline. It is highly useful for verifying a reference to a publication. 2) Year Book Year Book contain information collected form a variety of events sources. 3) Magazines and Journals Magazines are another source of information, which try to keep knowledge updating. Its containing the research paper, notes etc.

CHAPTER-6

DATA ANALYSIS

1)

What did you want to purchase a bike?

a) Necessity b) Comfort c) Style Reason for buying a bike Sample size 100 Necessity 50 Comfort 20 Style 30

2) a) b) c) d) e)

Why do your choose a particular bike?

Branding Market share Influence by advertisement Looks Prize Brand 40 Market Share Influence by Looks Advertisement 4 4 40 Prize 12

Sample size 100

Brand

Market Share 12%

Inkfluence By Adv ertisement

Looks

Price

40%

40%

4%

4%

3) How many years you have been using this bike? A) 0 1 Years B) 1 2 Years C) 2 5 Year D) More than 5 Year Sample Size 100 0 1 Year 08 1 2 Year 28 2 5 Year 40 More than 5 Year 24

0-1 Years

1-2 Year

2-5 Year 8%

More than 5 years

24%

28%

40%

4) Whether the warranty period influenced your purchase discussion at any stage? a) Yes b) No Sample Size 100 Yes 20 No 80

a) 20% people are influence by a warranty period offered for this bike. b) 80% people are not influence by a warranty period offered for this bike.

Yes

No

20%

80%

5) Are you satisfied with after sales service available of this bike? a) Yes b) No Sample size 100 Yes 90 No 10

a) 20% people are satisfied with after sales service available for this bike. b) 80% people are not satisfied with after sales service available for this bike.

Yes 10%

No

90%

6) Will you suggest this bike to any of your relatives or friends? a) Yes b) No Sample size 100 Yes 88 No 12

Yes 12%

No

88%

CHAPTER-7

DATA INTERPRETATION
QUESTIONNAIR

Questionnaire:

1) Brand Image of your Product is a) Good b) Average c) Fair d) Bad e) Excellent

2) Overall feedback received about your product a) Excellent b) Good c) Fair d) Average e) Bad

3) Number of employees working in your organization a) 0-50 b) 59-100 c) 101-150 d) 151-200 e) above-200 4) Selling price of your product is cost effective a) Yes b) No

5) Main target market id your product a) Kids b) Teenagers c) Youngsters d) Elders

37

6) Your after sale service is a) Excellent b) Good c) Average d) fair

7) The way Advertisement published a) Excellent b) Good c) Average d) fair

8) Salary range of your employees a) 2k-4-k b) 8k-12k c) 12k-20k d) above-20k

9) Minimum age of your worker a) 10-12 b) 12-14 c) 12k-20k d) above-16

10)Capital reserve of your company a) Excellent b) Good c) Average d) Fair

CHAPTER 8

SUGGESTION AND CONCLUSION

SUGGESTION AND CONCLUSION

a. The company should give stress on quality control of the products

on order to enhance its reputation and built goodwill in the market product. It would try to project the products as the ideal for the ultimate, which is suitable from all angles to the consumers. b. The company should force on promotional strategies by giving discount offering and small gifts facilities.
c. The company should promote direct marketing to the customers.

This will benefit the company and customers also.

d. The advertisement policies of the company are good and should

continue with the same.

e. Develop and launch products of both classes higher income group

and lower income group.

CONCLUSION
INITATIVES company service statement, constant endeavor is to support the companys mandate of providing highest level of customers motorcycles service & maintenance through company vast network of more than 1000 committed dealers & service outlets spread across the country. State of the art authorized workshop has well laid out standards for motorcycles servicing supported by full-equipped infrastructure in terms of quality precision instruments, pneumatic tools & a team of highly trained service technicians. Motorcycles serviced at an authorized workshop ensure highest standards of service quality and reliability. Engineering satisfaction is the prime motive of the Bajaj Automobiles Group and it has of life and a part of the work culture of the group. This is what drives the Group to seek newer vistas, adopt faster technology, and create quality driven products to the utmost satisfaction of customers, partners, dealers, and vendors.

CHAPTER 9

BIBLIOGRAPHY

BIBLIOGRAPHY
1 2 Marketing Management Principle of Marketing V.S.Ramaswami Philip Kotlar

MAGAZINE 1) Business India 2) Auto India

1) www.bajajauto.com 2) www.google.com 3) www.autoworld.com