BAJAJ INTERNATIONAL SEGMENTATION STRATEGY

History: -Bajaj Group was founded in 1926 by Sh. Ganshyam Das Bajaj. -Bajaj Auto is started by Jamnalal Bajaj. -Bajaj Auto came into existence on 29 November 1945 as M/s Bachraj Trading Corporation Private Limited. -It is the largest exporter of two and three wheelers. - India's second largest bike manufacturer. -The company is headed by Rahul Bajaj, Chairman & MD. -Bajaj was tie up with Kawasaki in late 1990s for increasing product line and knowledge up gradation. -In year 2009 Bajaj stopped manufacturing of BAJAJ CHETAK which was a great successful history the company. - Then company come up with a strategy of It is not good enough to be better, it is important to be better here comes Distinctly ahead.

PRODUCTS OF BAJAJ: INTERNATIONAL PRODUCTS OF BAJAJ (2 WHEELER) ARE: 1. Avenger 220 DTS-i 2. Pulsar 135 LS 3. Pulsar 220 DTS-i 4. Pulsar 180 DTS-i 5. Pulsar 150 DTS-i 6. Discover 150 7. Discover 125 8. Discover 100 9. Platina 125 10. Platina 100 CC 11. Ninja 250 R 12. Ninja 650 R (NEW) 13. KTM Duke 200 Internal analysis of Bajaj: -SWOT analysis -Strengths-Outstanding brand occurrence and marketing in India. -Broad research and development focus and having great goodwill in the motorcycle segment. -Extensive distribution network across India. -Wide product range in terms of price, quality and categories. -Included in the Forbes Global brands list. -High economies of scale.

Weakness:-

-Bajaj though it is having very high volume production but it is not a global brand. -Facing lack of performance bikes like major international brands and sports bikes & cruisers. -Company did not engage excess cash for long. -Still Bajaj has not established brand to match with brand Splendor.

Opportunities: - Cheaper alternative for achieving rapid speed more in the rural segment. - Premium sports bikes for urban areas. - Constant growth. -Use of R&D can be excellent for new products. -Can invest & grow in the life style segment.

Threat: -Cheaper imports from countries like China. -Entry of international brands. -Other motorcycle players have a strong brand presence

BAJAJ AT GLOBAL LEVEL: -Bajaj Auto has a technical tie-up with Kawasaki Heavy Industries of Japan to produce a range of the latest, state-of-art two-wheelers in India. -Bajaj is present in over 50 countries all over the globe -Dominant presence in Africa, Latin America and South Asia with increasing market share every year.

-Market leader in motorcycles in Colombia, Central America, Sri Lanka, Bangladesh, Philippines, Nigeria, Uganda and Kenya. -Bajaj has also made a beginning by selling bikes in the Philippines branded in the name of its technical partner, Kawasaki. -Kawasaki, a large multi-product conglomerate, only makes high-end bikes and does not have sub-200cc models. PERFORMANCE OF BAJAJ: Introduction stage (1945-1972) -After existing they started by importing two and three wheelers and selling it in Indian market. -It got the license to produce two and three wheelers form the government of India 1959. -Bajaj tied up with Piagioveicles an Italian two wheeler market in 1960 to produces scooters. -This tie up ended in 1971 & Bajaj auto started producing geared scooters and launched CHETAK in 1972. -So far Bajaj had managed to roll 100000 vehicles. Growth Stage (1972-2000) -With hardly any competition Bajaj auto continued to grow and it sale increased year after year. -In 1977, it produced and sold 100,000vehicles i a single financial year. -In 1991 Bajaj auto in tie up with Kawasaki motors of Japan launched its first motorcycle 4s champion. -Faced competition with Hero Honda & Yamaha in the motorcycle segment while K inetic Honda & LML was giving it a tough competition in the scooters segment. -In 1998, Bajaj launched Caliber a 110cc bike to copmpete with Hero Honda Splendour. Maturity Stage (2001-2007): -

-Bajaj auto launched Pulsar a 150cc bike in the premium segment to compete with CBZ of hero Honda. -Pulsar soon became very popular and became the market leader in less than a year time period. -In 2003 Bajaj launched an upgraded version of Pulsar that was PulsarDTS-i with twin spark plug and sold 107,115 bikes in a month. -It also launched two new bikes Discover & Platina in 125cc & 110 cc respectively in 2004 & 2006. -Decline stage(2008-) -With new launches form TVS motors and Honda scooters & Motorcycles India Ltd. Bajaj started to lose its 2nd position. -In April 2009, Bajaj auto dropped to no 4 in terms of sale. -With just 75,000 units in a month. -Bajaj recovered from this and managed to retain the second spot but Hero Honda is still the no one by a large margin. -Strategies -Five forces-Rivalry among the competitors -Industrial rivalry is very high, within few months a new product will match by competitor. -Industry mainly driven by technical capabilities driven by international companies. -Bargaining power of buyers -Buyers have lots of choices and demands number of choices, which company cannot fulfil. -Buyers choices are increasing with various options available. -Bargaining power of suppliers -Suppliers for this industry are very fragmented -Proper supply chain management is costly but needed. -Potential new entrance -Entry barriers are very high

-Market runs on high economies of scale -Need for technical expertise is high. -Owing a strong distribution network is costly but very important -Companies like Royal Infield are potential new entrance to the company -Threat of substitute -There is no perfect substitute to the industry -Cars never compete with 2 wheeler industry -Cycles come under very low level of income.

Platina

Ninja, Avenger, KTM Duke

SCOOTERS, XCD Pulsar, Discover, CT-100

Conclusion:Bajaj lives its brand by it values of learning, innovation, perfection, speed and transparency. 1. 2. 3. 4. 5. Learning- Learning is how we ensure proactively. Innovation- innovation is how we create the future Perfection- perfection is how we set new standards Speed- speed is how we convey clear conviction Transparency- transparency is how we characterise ourselves. -How ever Bajaj has worked hard for gaining its profit share -Concept of STP is used very differently by Bajaj

SEGMENTATION: The segmentation of different bikes of bajaj can be studied as follows:1) Demographic: Age- on the basis of age group, the segmentation like pulsar for younger generation of age 18-30, Bajaj spirit for young girls of age 18-25. Similarly chetak was launched for college going boys and men in the 70s and 80s likewise Bajaj launched sunny moped for women. GenderFor men: chetak, Platina, Pulsar 135cc For boys: Bajaj pulsar, discover. For women: Bajaj sunny, wave, blade. For girls: Bajaj spirit, Kristal. IncomeLower income group- includes Bajaj Platina and XCD, sunny, spirit etc for those having a budget of Rs. 40,000. Middle income group- includes Bajaj discover, pulsar DTSi 150/180 cc having a budget of Rs. 70,000 Higher income group- includes Bajaj pulsar DTSi 200/220 cc, avenger, ninga atc having a budget of above Rs. 70,000. 2) Behavioural: For sporty and cruises Bajaj has ninga, Pulsar 220cc and avenger. For rural use Bajaj has Pulsar, Discover.

TARGETING: Bajaj targeted Pulsar 220cc for professional bikers Its launched avenger as a cruiser bike compare to Harley Davidson. Launched Ninja as a sports bike as compared to other sports bike like Honda cbr 250, Yamaha sazer r15.

POSITIONING: The positioning of Bajaj Bikes as: Chetak as Hamara bajaj Pulsar as definitely Male Discover as more excitement per liter

References: 1. www.bajajauto.com 2. http://www.business-standard.com/india/news/bajaj-auto-revampsorganisational-structure/ 3. www.wikipedia.org 4. Business Today