Presented By:: Vidhi. M. Amrutiya Vaishali Dolly. Rana

Presented By :
Vidhi. M. Amrutiya
Vaishali
Dolly. Rana
 » Examine the evolution of an industry --
specifically, the Indian two-wheeler industry
-- over time, and the challenges faced by the
dominant players with the industry being
liberalized and opened up to competition.
» Appreciate the impact of the economic,

social, and cultural changes on the fortunes
of an industry.
 » Analyze the strategies adopted by a
company to stay relevant in a changing
environment.
» Understand the importance of keeping

track of changing customer changing needs
and preferences and adopting a customer-
oriented product strategy.
» Gain insights into competition in the Indian

two-wheeler market.
 The Bajaj group was founded in 1926 by
Jamnalal Bajaj (Jamnalal).
 In 1945, Kamalnayan Bajaj, Jamnalal's son,

set up Bachraj Trading Corporation Ltd.
(BTCL), a trading company, to import and
sell two- and three- wheelers. This business
continued till 1959.
 In 1959, the company secured a license from
the Government of India to manufacture
two- and three-wheelers.
 In 1960, BTCL was renamed Bajaj Auto Ltd.

(BAL) and the company went public.
 The same year, it entered into a technical

collaboration with Piaggio for the
manufacture of scooters.
1945 Kamalnayan Bajaj established Bajaj Auto.
1950-1956 Imported scooters and three-wheelers from Piaggio.
1959 Government gave license to Bajaj Auto to produce 6000
scooters and three-wheelers per annum.
1960 Technical collaboration with Piaggio, set up manufacturing unit
at Akrudi and went public.
1961 BAL started manufacturing.
1966 BAL became the largest Indian producer of two-wheelers.
1971 New gov. regulations prohibited the continuation of alliance
with Piaggio.
1975 BAL established manufacturing joint venture with Maharashtra
gov.
1982 Gov. permitted infusion of foreign technolgy and expansion of
capacity.
1984 Technical collaboration with Kawasaki
1985 BAL established a second plant at Waluj.
1971 Three-wheeler goods carrier.
1972 Bajaj Chetak
1976 Bajaj Super
1977 Rear engine Autorickshaw
1981 Bajaj M-50
1986 Bajaj M-80, Kawasaki Bajaj KB100
1990 Bajaj Sunny
1991 Kawasaki Bajaj 4S Champion
1994 Bajaj Classic
1995 Bajaj Super Excel
1997 Kawasaki Bajaj Boxer, rear engine diesel Autorickshaw
1998 Bajaj Caliber, Bajaj Legend, Bajaj Spirit(1st 4stroke scooter)
2001 Eliminator, Bajaj Pulsar
2003 Caliber 115, Bajaj Wind 125, Bajaj Pulsar
2004 Bajaj CT100, new Bajaj Chetak 4 stroke, Bajaj Discover
2005 Bajaj Wave, Bajaj Avenger
2006 Bajaj Platina
2007 Bajaj Cyrstal, Bajaj Pulsar 220 DTS-Fi, XCD 125 DTS-Fi
 Initially Bajaj introduced the new models
after gap of 3,4,or even 5 years whereas the
competitors were more alert about it.
 From 2003, BAL started introducing new

models every year and that has earn the
company a huge benefit.
 Pulsar, Discover, Eliminator, Platina have

won the award for bike of the year.
Vehicle Target Characteristics
Scooters Targeted the “family Word-of-mouth recommendations,
man” aged between brand name, features such as
27-38 yrs. mileage, low maintenance, and
high resale value.
M-80 Rural consumers Fuel efficiency and durability.
KB-100 Young single male Power and style, better value for
consumers (21-30 yrs money.
of age)
Mopeds Broader customer Cheapest two wheeler avaiilable
segment
Sunny Teenagers and Style and trendy features,
women, people over Low cost means of personal
55 years transport.
 Complacent.
 License Raj Syndrome.
 Lack in proper technical upgradation of products.
 Didn’t foresee future trendz .
 Bajaj was a late riser to the competition.
 No long lasting foreign joint ventures.
 Lack of professional management team.

 They should have introduced new products
across segments.
 The company should have anticipated the

change in market dynamics and introduce
bikes earlier then they did.
 They should have increased the customer –

centric initiatives and command more
loyalty.
 Bajaj should have discarded the notion of
being the numero- uno and should have
moved with times.
 Investments should have been made in high

yeilding avenues.
Still they failed……..why?
“My marketing department? I don’t require

it, I have a dispatch department. I don’t
have to go from house to house to sell..
Rahul Bajaj -1982
 Unable to analyze changing external
environment (PEST) Inertia Changing market
structure-from monopoly to oligopoly
 Actions Taken by Bajaj Auto to Revive Chetak
Baiaj tried to lower the price of Chetak by Rs
5000 to seek the attention of motocycle
buyers.
 In 2004 Chetak was upgraded with a new four

stroke ,125 cc engine ,better mileage
(70kmpl),with minor style changes.
 It was repositioned as a new and easy gear
(wonder gear)scooter.
 New ad campaigns of Chetak focusing on

individuality and strength of character
(synonymous to its Hindu name)were shown
to brush up the age old Chetak image of a
family man.
 Due to increasing competition BAL poured lot
of resources in advertising .
 Advertising expenditure in 1990 and 1991

was 54 million rupees, which doubled to 110
million rupees in 1992.
 For many years BAL did not have a marketing
department since demand outstripped
capacity and BAL enjoyed a protected
sellers’ market.
 Competition increased in mid 1980’s , hence

marketing department evolved.
 BAL adopted different marketing strategies

for different models, few of them are
discussed :-
 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.
 The commercial of Kawasaki 4S had the

punch line "Kyun Hero" means "now what
hero" which reflected the aggressiveness in
the marketing front by the company.
 Caliber - The focus for the Caliber 115 was
youth.
 And though Bajaj made the bike look bigger and

feel more powerful than its predecessor its
approach towards advertising is even more
radically different this time around.
 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 Discover 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 three-wheeler
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.
PULSAR SCOOTERETS
AUTO SCOOTERS
 "Bajaj" is a well established Brand name in the
scooter segment.
 Bajaj Auto is a cost-effective producer in the

two wheeler market.
 It has a huge market share in the scooter

segment of the two-wheeler industry. This acts
as a cushion for the company in their efforts of
foraying into the motorcycle segment.
 Bajaj has established a wide distribution network

for the scooter segment which will favor them in
their efforts in the motorcycle segment.
 Bajaj has become a generic name associated
with the scooters and that needs to be
changed in the minds of the consumers
before it could expect a great success in the
motorcycle segment.
 Bajaj is dependent on its foreign

counterparts for technological support. This
needs to be addressed as it might be crucial
when the foreign players enter the Indian
market directly.
 The motorcycle segment is expected to grow
at a considerable rate and this would provide
a good opportunity for Bajaj Auto to increase
its market share in this segment.
 The growing gearless trendy scooters and

scooterette market.
 Can use the existing R&D capabilities for

new models.
 Entry of Multinational companies, especially
Chinese ones, in the motorcycle segment will
stiffen the competition and will hamper the
efforts of Bajaj to establish itself in the
motorcycle segment.
 The competition catches-up any new

innovation in no time.
 Tough competition faced by domestic

companies like Hero Honda, TVS, Kinetic etc.
HH,TVS,HONDA
NO PROBLEM
IN THIS
QUADRANT
CONSUMERS WERE
ADVENT OF BIKES BECOMING
AND DEMAND OF DEMANDING IN
PERSONAL TERMS OF CHOICE
MOBILITY

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» Appreciate the impact of the economic,

» Understand the importance of keeping

» Gain insights into competition in the Indian

 In 1945, Kamalnayan Bajaj, Jamnalal's son,

 In 1960, BTCL was renamed Bajaj Auto Ltd.

 The same year, it entered into a technical

 From 2003, BAL started introducing new

 Pulsar, Discover, Eliminator, Platina have

 License Raj Syndrome.

 Lack in proper technical upgradation of products.

 Didn’t foresee future trendz .

 Bajaj was a late riser to the competition.

 No long lasting foreign joint ventures.

 Lack of professional management team.

 The company should have anticipated the

 They should have increased the customer –

 Investments should have been made in high

“My marketing department? I don’t require

 In 2004 Chetak was upgraded with a new four

 New ad campaigns of Chetak focusing on

 Advertising expenditure in 1990 and 1991

 Competition increased in mid 1980’s , hence

 BAL adopted different marketing strategies

 The target customer was the father in the

 The commercial of Kawasaki 4S had the

 And though Bajaj made the bike look bigger and

 The teaser campaign and the emphasis on the

 The restructuring will involve separate

 The needs of financing, selling, distribution

 Bajaj Auto is a cost-effective producer in the

 It has a huge market share in the scooter

 Bajaj has established a wide distribution network

 Bajaj is dependent on its foreign

 The growing gearless trendy scooters and

 Can use the existing R&D capabilities for

 The competition catches-up any new

 Tough competition faced by domestic

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