Bajaj Auto Ltd. (1)

7/31/2019 Bajaj Auto Ltd. (1)

1/58

An Industrial visit report

On

BAJAJ AUTO LTDOnMarketing mix.-:Prepared by:-

Hirani Dilip K.-:Class:-

T.Y.B.B.A

-:Academic Year:-2005-06.-:Roll No:-

-:Seat No:-

-:Guided By:-

Nirav S Joshi.-:College:-

Geetanjali College ofComputer science and Commerce.-:Submitted To:-

Saurashtra University (Rajkot)


2/58

DECLARATION

I undersigned Mr.Hirani Dilip K the student of Third YearB.B.A. hereby declare that the project work presented in this reportis my own work and has been carried out by the Guidance ofLr.Nirav s Joshi of Geetanjali college of computer science &commerce(B.B.A.)

This work has not been submitted to any other University onany other Examination.

Date:Place:

Signature(Hirani Dilip K.)


3/58


4/58

PREFACE

Industrial activity plays an important role in overall economicdevelopment of the developing country like India. Industrial Visit isa part of practical training contained in B.B.A. course.

B.B.A. is a special course of management, where themanagement knowledge is given during the year and which is morerelated with the practicability of it in the managerial field.

So, I am very please to get a chance to visit Rajarshi AutoDeals Pvt. Ltd. and made the report on new marketing strategies of

Bajaj Auto Ltd.


5/58

THE COMPANY

The Bajaj Group can into existence during the turmoil and the

heady euphoria of Indias freedom struggle. Jamanlal Bajaj, founderof the Bajaj Group, was a confidante and disciple of MahatmaGandhi, and was deeply involved in the effort for freedom. Theintegrity, dedication, resourcefulness and determination to succeedwhich are characteristic of the company today, are often traced backto its birth during those long days of relentless devotion to a commoncause.

Kamalnayan, the eldest son ofJamanlal Bajaj, succeeded hisfather in 1942, at the age of twenty-seven. Putting the Nation before

business, he devoted himself to the latter only after India achievedindependence in 1947. But when he did so, he put his heart and soulinto it. Within a short while, he not only consolidated the Group, butalso diversified into various manufacturing activities, elevating theGroup to the status it enjoys till this day.

Rahul Bajaj today heads the Group. He has been the chiefExecutive Officer of Bajaj since 1968 and is recognised as one of themost outstanding business leaders in India. As dynamic andambitious as his illustrious predecessors, he has been recognised andinternational forums.

Bajaj is currently Indias largest two and three-wheelermanufacturer and one of the biggest in the world. Bajaj has long left

behind its annual turnover of Rs. 72 million (1968), to currentlyregister an impressive figure of Rs. 42.16 billion (US$ 936 million).


6/58

Management Profile

Bajaj Auto Ltd. is ably managed by a team of seasoned professionals:

Rahul Bajaj Managing Director J. Sridhar Company Secretary

R. A. Jain Executive Director

Madhur Bajaj Vice Chairman

D. S. Mehta Wholetime Director

Rajiv Bajaj President

Sanjiv Bajaj Vice President (Finance)

Ranjit Gupta Vice President (Insurance)

N. H. Hingorani Vice President (Materials)

P. B. Menon Vice President (Projects)R. L. Ravichandran Vice President (Business Development & Marketing)

C. P. Tripathi Vice President (Waluj)

Niladri Banerjee General Manager (Corporate Affairs), Delhi

Ramesh Bhargava General Manager (International marketing)

K. P. Chander General Manager (Machine Tool Division), Waluj

Kevin DSa General Manager (Finance)

R. V. Govind General Manager (Product Engineering)

Arvind Gupta General Manager (Manufacturing Engineering)

R. S. Gupta General Manager (Motorcycle Project Team), WalujN. V. Iyer General Manager (Engineering Support)

Anil G. Khopkar General Manager (Management Information Service)

G. B. Laddha General Manager (Finance)

Shrikant Marathe General Manager (R & D)

N. G. Maengane General Manager (Motorcycle Division), Waluj

K. P. Nair General Manager (Quality Assurance)

C. K. Rao General Manager (Marketing Three Wheelers)

V. M. Rao General Manager (Akurdi)

P. K. Rath General Manager (Chakan)S. R. Rage General Manager (Maharashtra Scooters Ltd.)

D.K. Sharma General Manager (Production), Akurdi


7/58

HISTORY, GROWTH & DEVELOPMENT OF

RAJARSHI AUTO DEALS PVT. LTD.

The foundation of Rajarshi Auto Deals Pvt. Ltd. was in 1998in 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 croreRs. 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 theliking and performance of the customer.

Today the Bajaj Auto Ltd. offer a unbeatable range ofmotorcycles to suit possible need of customer by featuring the latesttechnology 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.


8/58

PROJECT AT A GLANCE

Name of the Unit : Rajarshi Auto Deals Pvt. Ltd.

Address of the Unit : Rajarshi Auto Deals Pvt. Ltd.Phone No : (0281) 374496, 375730, 375731

Registered Office : Rajarshi Auto Deals Pvt. Ltd., Nr.Malaviya College

Name of the ManagingDirector

: Vipulbhai Kothari

Name of MarketingManager

: Chandrakant R.

Name of the Finance

Manager

: Tarvlata Makwana

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.: 7472851Fax: 7407392


9/58

INTRODUCTION

Marketing mix is the bridge that diminishes the gap between

the product and consumes without marketing all production activitieswould be fulfill. Therefore more production is not enough. It isequally important to make the consumer aware of the goods

produced. After the consumer importance to distribute the goods toall prospective consumers. But the marketing activities do not here.The view and ideas of the consumers are taken into and the productis to be changed according to the consumers needs. Thus the sumtotal 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 resourcesand a set of activities necessary to direct and facilities to direct theflow of goods and services from product to utility consumer in the

process of distributing. In other words marketing comprises of all theactivities involved in the determination and satisfaction of consumerneeds at a profit. Thus marketing encompasses all activities of

exchange conducted by producers and middleman in commerce forthe purpose of satisfying consumer demand.

In marketing planning, marketing information is used to assessthe situation specific marketing targets are selected in the formmarket segments for each segment of market a combination of anumber of devices or types of marketing activities that are

Coordinated into a single management programs to reach aparticular target or market segment is formulated. The combinationof these marketing methods or devices is known as the marketingmix.


10/58

Thus marketing mix is the set of marketing goals that the firmused to pursue its marketing objectives in mix goals can be classifiedas under down heads. There are.

1. Product.

2. Price.

3. Promotion.

4. Place.

5. People.


11/58

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

MarketingStrategy

(Mix)

PRODUCT MIXProduct VarietyProduct LineDesignFeaturesBrand NamePackagingServicesWarranties

PRICE MIXPricing ObjPricing PolicyPrice ListDiscountAllowanceCredit Terms

PROMOTION

MIXSales PromotionAdvertisingSales ForcePersonal Selling

PLACE MIXChannel ofDistributionPhysicalDistribution

MARKETINGSTRATEGY

(MIX)


12/58

PRODUCT MIX

A product is a bundle of physical servicesand symbolic particulars expected to yield

satisfaction or benefit to the buyer.

- Philip Kotler


13/58

INTRODUCTION

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 bedefined proudly to cover anything that can be offered brings tosomeone to satisfy a need or want normally, the ward product bringsto mind a physical object such as on automobile, a television or a softdrink. We normally use the expression product and services but inthinking about products, their importance lies not so much in owningthem as in using them to satisfy our wants.

Manufacturers get into a lot trouble by paying more attention totheir physical product then to the services produced by these

products. The marketers job is to sell the benefits or services builtinto physical products rather than just describe their physicalfeatures.

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 thefollowing points.


14/58

(A) Product Variety

Product variety include the types of product which a company

produces. They may before the same consumers or for differentconsumers. In other words, the different products may satisfy similarneeds or different needs for e.g. A company manufacturing soap for

both these product satisfy the same needs e.g. cleaning etc. But if thesame company starts manufacturing their oils than this product has atotally different segment of consumer. There fore the company willhave to all write its marketing strategy in order to reach this

particular segment of consumers.

The product variety (line of Bajaj Auto Ltd. are asfollows.)

Scooter Bikes1. Super2. M-80 Major3. M-80 Major 4-Strock4. Spirit5. Saffire

6. Legend NXT 27. Chetek 4-Strock8. Wave

1. Boxer2. Caliber Croma3. Aspire4. Caliber 1155. Pulsar

6. Wind 1257. Eliminator8. Discover9. C.T.100

(B) Design

Reflect the outlook of the product. Design reflects the featuresof 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 mayinclude product differentiation, features, characteristics,

performance, durability, reparability, style etc.


15/58

Design is the interacting force with all the features as itsparameters. The design has also to keep in mind the capital allocatedto 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 targetmarket and weights the different benefits and costs.

(C) Features

The term features refers to those inherent characteristics of theproduct which makes it different and unique from the other products.

In other words features means any special point differentiating thatparticular from other product.

Features are characteristics that supplement the products basicfunctioning most products can be offered with varying features. Thestarting points is stripped down or base version by adding extrafeatures each feature has a change of capturing the dance ofadditional buyers.

Thus features are the biggest competitive goals in the hands ofcompanies, features make one companys product supplier to othercompanies producing similar product.

(D) Brand Name

Brand Name refers to that name through which the productsofthat company are recognized.BrandNamecan be a name, term, signsymbol or design or a combination of them, intended to identify thegoods or services of one seller or a group of sellers and todifferentiate them from those of competitors.


16/58

Brand Name are the most important of any product because itis the identification of the product. Brand Names may be thecompanys name if sold, or it may be a different as the better knownthe 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 goesunderstand.

(E) After Sales ServiceServices are activities, benefits or satisfaction that are offered

after sale. In other words a service is any act or performance that oneparty can offer to another that is essentially intangible and does notresult in the ownership of anything.

Ferms Hiltprovide high quality services undoubtfully our

perform their less services. For e.g. the manufacturers could make anarrangement with distributors and dealers to provide these services.Thus the customers durable market is highly competitive in terms ofafter sales services.

It sometimes so happens that the company increase a high costburden in terms of after sales services. But the company whichprovides a better after sales service inspite of its cost burden, benefits

in the long run. Thus many companies prefer to incur high cost ratherthan loosing their potential customers.


17/58

(F) Warranties

Product warranties are an important promotional tool especially

as consumers because more quality sensitive warranty meansauthority 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 warrantyoffer or service contract. Instead of changing for the warranty orservice 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. Butthe cost burden on the company is very high and the company has to

perform cost benefit analysis while deciding the period and scope ofwarranty only that policy should be selected where the benefits cutrun the costs. But it is very difficult to calculate and maintain balance

by cost and benefits.

The warranty period ofBajaj Auto Ltd. is one year, or two

year depending a Bajaj Auto Ltd. is policy. The company replacesall the parts and movements period is over the retailer.


18/58

PRICE MIX Price is the only element of marketing mix that

produces revenue, all the other elements i.e. product,

place and promotion products costs.

- Philip Kotler


19/58

INTRODUCTION

Price is the only element of marketing mix that produces

revenue. All the other elements that is product, place and productionprocedure etc. Pricing composition is the first problem facing themarketing executive.

All profit organizations and many non profit organization settheir prices and product and service. Though most of history pricewere set by buyers and sellers negotiating with each other sellerswould also for higher prices then they expect to receive and the

buyers would offer less than their expect to pay. Through bargainingthey 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 mixand the fact that the price mix is only revenue earning element, mostcompanies do not handle pricing well price is set independent of restof the marketing mix rather than as an interstice element of market

positioning strategic and price is not valid enough for differentproducts items and market segments.

Companies handle pricing in a variety of ways. In smallcompanies prices are often set by the top management rather than bythe marketing or sales department.


20/58

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 andaim at price stability. This attempt is not to let price fall low duringdeprecation 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 atdefinite level by which they can increase their market share.

Pricing Policy

Pricing Policy is the standing answer of the firm to requiringproblem of pricing. It provides guidelines to marketing manger tosolve 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 AutoLtd. itself and the margin of dealers commission is added in thecompany price list. The main reason behind the cheapeners ofBajajAuto Ltd. is most of the parts of the moped and bikes manufacture

by company itself.


21/58

We can see in the following chart that the Octroy, CST, etc.should be paid according to the rules and regulation of thegovernment.

Particulars Amt. (Rs.)Factory PriceAdd: 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 TaxAdd. Gujarat Sales Tax (4%)

= EX-showroom PriceAdd: RTO TaxAdd: Insurance & accessories

= On the Road Price

DiscountsThe term discounts means a deduction from the nominal valve

or price or amt. of the product. In other words, discount is theamount, which is taken off the full price of the product. Mostcompanies modify their basic price to reward the customers fromsuch acts as early permanent, volume purchases and off-season

buying. This price adjustment are called discounts. Discount is avery popular tool in the hands of top level management to increasetheir sales. The companies make efficient use of this tool to expandtheir market. Discount being a reduction in the original price of the

product are relatively cheap from of attracting new customers andsustaining old owned.


22/58

Credit TermsCredit 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. Inother words credit terms are the terms and conditions which aremutually agreed upon by the customers and producers and relates tothe 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 ormay services from consumer to consumer. It also depends on how

good relations are between the producer and the consumer. Creditterms may also change when the policy of the company changes overa period of time. It is a basic fact that each company has to give ashort or long terms of credit facilities if it wants to survive in themarket and in the cut throat competition. If company does not givecredit facilities, the customer turns to its competitors product incostlier. Thus credit facility is must for all companies in order tosurvive.

The credit terms ofBajaj Auto Ltd. are fairly straightforward.The credit period allowed to the saler is 60 days. The company alsotakes a deposit from the distributors against the dealerships allocatedto them.


23/58

PROMOTION MIX

Promotion compasses all the tools in the

marketing mix whose major role is persuasive

communication.

- Philip Kotler


24/58

INTRODUCTION

Promotion has three specific purposes. It communicates

marketing information to consumers, users and reseller. It is notenough to communicate ideas. Promotion persuades and convincesthe buyer and influences his/her behavior to take the desired action.Promotional efforts act as powerful tools of competition providingthe cutting edge of its entire marketing programme.

Broadly speaking promotion means to push forward or toadvance 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 ofdistribution. It is an effort by a marketer to inform and persuade

buyers to accept, recommended or use the article, service orcommunication with an additional element of persuasion. The

promotional activity always attempts to affect ideas, productsservices etc. is the heart of promotion

Modern marketing causes for more than developing a goodproduct priding attractively and making it a accusable to target

customers company must also communicate with their present andpotential customers.

Promotion includes the following:

Advertising(A) Introduction: -The American Marketing Association has defined

advertisement thus Any paid form of non-personal presentation andpromotion of ideas, goods or services by an identified sponsor.

Advertising is paid communication presentation and promotionbecause the advertiser has to pay for the space of time in which hisadvertisements appears. Advertisements appears in the recognizedmedia, such as news Papers, magazines, radio, television, cinemafilm, outdoor, hoarding and posters, directs man and transit.


25/58

It is paid for by a sponsor (seller) who wants to communicateabout his product or service to his customer. The sponsor wants to

persuade and induce the readers, viewers or listeners to take someaction viz. To buy the advertised product so that the advertising

should have max sales.

From the above discussion we can say that each and everycompany whether public or private has to advertise for its survival.Bajaj Auto Ltd. has also undertaken the advertising activate.

OBJECTIVE

The first step in developing advertising program is to see theadvertising objectives. According to Bajaj Auto Ltd. thoseobjectives must flow from decisions on the target markets, market

positioning and marketing mix.

The Bajaj Auto Ltd. has undertaken the activity of advertisingwith a view to attain the following main objectives.

1.To enhance its sales.2.To inform the market about their new product.3.To explain the uses of product.4.To inform about the price changes.5.To maintain brand loyalty.6.To maintain regular customer.


26/58

1. To give information about a new Product:

One of the most important objectives of advertisingis 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 createdemand for a particular product. To inform people about a people isnot enough. They must also be motivated to bug it by informingthem the features attributes and uses of the product M.A. technicalwags.

3. To support sales mans efforts:

Salesman deals directly with customers and

advertising renders great help to them. When the customers come toknow. Characteristics quality and various brand of a product throughadvertising.

4. To Maintain Demand:

The objective of advertising is not only to createdemand 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 leadsto increase in sales, hence production expands and cost of

production, falls.


27/58

ADVERTISEMENT COPY

Advertising copy is prepared by an export copywriter. It

includes the headlines name and address of the advertise as well asthe main text of the massage.

Advertising copy is the creative business which demands lot ofimaginations foresight well designed advertising copy uses four

basic steps in selling they are A.I.D.A.i.e.1. Attraction attention

2. Developing interest3. Arousing desire4. Generation action

Advertising copy should be simple easily understandable

attractive and persuasive language there after it can give action fromconsumer side.

So far as company is concerned advertising copy is

prepared by concerned advertising agency.There are two parts an advertising copy

1. Advertising theme or appeal.2. Advertising layout.

ADVERTISING THEME OR

APPEALThe theme or the appeal is the central idea around which the

advertisement is created. It is called the unique sales proposition. Itrepresents a specific point of view of idea to stress in advertisement.It is the heart and sound of advertising copy or message.

There are various appeal used in advertisement to sale productor service the selection of theme is usually made by means ofconsumer and research.


28/58

For different products ofBAJAJ there are appeal.

Product AppealSpirit Comfort

CT100 EconomyDiscover PerformanceChetak wonder gear Easy in operationPulsarDTS - i StyleEliminator Prestige

ADVERTISING LAYOUT

Advertising layout deals with proper and attractive andphysical arrangement for the best presentation of the message orsales communication. A visual part of the advertising has thefollowing elements.1. HEADLINES

Headlines must put forth the main theme in appeal in fewwords. It should be clear, simple, short and attractive to heldattention of the prospect. It should respect the contents of

advertisement and guides the prospect properly. It may show apromise or reward and include prompt action. It should be printed inprominent manner.

2. ILLUSTRATIONSIllustrations provide line drawings, cartoon, pictures,

symbols and photography for attracting attention, creating interestand arousing desire. Illustration is the best and the most effective

way of communication of ideas.BAJAJ AUTO LTD. Uses visual demonstration in

television.

3. COLORSIt is an important ingredient of an advertisement. Color

has great attention attracting power judicious blending of color canevoke emotional reaction, which cannot be created by more

description.


29/58


30/58

BAJAJ AUTO LTD. Background color is white.

4. SLOGANA slogan should be fundamental sales argument for a

product or service, expressed in a few words . It should be originaland remember able. It should contain the brand name of thecompany.

BAJAJ AUTO LTDs. slogan is

Inspiring Confidence

ADVERTISEMENT MEDIA

There are many types of advertisements media. They are asfollows.

1.Mural Advertisement

2.Press Advertisement3.Film Advertisement4.Radio Advertisement5.Television Advertisement6.Direct Mail7.Point of purchase Advertising8.Advertising Specialties

Following advertisement media is used by BAJAJAUTO LTD.

1.NEWSPAPERS

Bajaj Auto Ltd. has selected newspaper as its media ofadvertising because it is the most effective media. It has general andwide appeal. They are flexible. Periodical change in size and contentis also easy. At local level they are using.


31/58

GUJARAT SMACHARand SANDESH and at the nationallevel they use different newspaper in different cities. Like inMumbai, Ahmedabad and Lucknow give advertisement in Times ofIndia. In Delhi, Madras, Pune, Baroda, Calcutta, Banglore,

Hydrabad has given advertisement in Hindustan Times and IndianExpress.

2. MAGAZINES

Magazines are considered to be the most effective media.Tough its colored attractiveness, Magazines have longer life greaterretentive value as well as reference value further they are using

manages of advertisement because selective appeal is possiblethrough it, the magazines have most circulation form.

Bajaj Auto Ltd. is also interests in giving advertisement inmagazines. They use different magazine for bikes and mopeds like.Sport Star, Cricket, Samarat Sports World, Chitralekha, and Abhiyanetc.

3. TELEVISIONBajaj Auto Ltd. is using television as important media. They

advertise their product on all most all channels in very popularprogram so that they can attract more customers.

Television advertisement can appeal through ear as well as eyecan be demonstrated with explanation. It reaches the guidance almostlike personnel salesmanship. Thus it is really wonderful mean of

mass communication for creative market.

Bajaj Auto Ltd. has adopted Poster, Boards and ElectricDisplay as a media of outdoor advertising. They are givingimportance to this media because it has long life general wideappeal. It can also attract number of peoples.


32/58

3. PUBLICITY

Publicity is a non personnel stimulation of demand for a projectservice or a business unit by placing commercial significant news

about it in a publication or obtaining favorable presentation of it onradio, T. V. on maganizine that is not paid by the media sponsor.

For Bajaj Auto Ltd. publicity as one of the part of thepromotion mix which cant be ignored in any case. Till today manyarticles regarding the company is published in THE ECONOMICTIMES etc. Through publicity of its company Bajaj Auto Ltd. hascreated own goodwill in market.


33/58

SALES PROMOTION

(A) INTRODUCTION: -

This is one of the constituent of promotion news. Which isconcerned with extra efforts for increasing sales. Today, sales

promotion is necessary and not merely a luxury or fashion. It is notexpenditure; it is an investment, which can pay rich dividend. This isone of the constituents or promotion-mix, which is concerned withextra efforts for increasing sales.

Sales promotion is referred to activities other than personal

salesmanship, advertising and publicity. Which stimulate dealereffectiveness and consumer purchasing. In a broader sense, the termsrefer to almost all activities of marketing oganisation. Properselection of sales man. Payment of reasonable salaries to them,

provision of their attempts to improve relations with distributors andconsumers, advertising etc. is the activities all of which essential aimat increasing sales.

Sales promotion is defined by the American MarketingAssociation to mean, those marketing activities other than sellingadvertising and publicity that stimulate consumer purchasing anddealer effectiveness, such as display shoes and expositions,demonstration and various non-recurrent selling efforts not in theordinary routine.

Sales Promotion Includes Tools For

(i) TRADE PROMOTIONS: -

[E.g. buying allowance, Free Goods machinery,Allowance, Cooperative advertising, Push money dealers Salescontents]


34/58

(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 otherassociation.

Thus the cost of the tool is very less but their value is very too muchhigh. Large number of people attend this fair and come in contact with the

product of the Company and its uses.


35/58

PLACE MIX

Marketing channels can be viewed as sets of inter

dependent organizations involved in the process of

marketing product or service available for use or

consumption.

- Philip Kotler


36/58

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 marketingpoint of view place mist strategy is the second important element ofthe marketing mix. Place mix has two sub divisions.

1. CHANNEL OF DISTRIBUTION: -

Channel of Distribution is the best of marketing institutionparticipating in the marketing activities involved in the movement orthe flow of goods or services from the primary producers to the

ultimate consumers. In the field of marketing the channel ofdistribution indicates roots on Parth way through which goods andservices flow or move from producer to consumers.

2. PHYSICAL DISTRIBUTION: -

Physical Distribution consists of those marketing activitiesrelated 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 yourdoor. But too often the marketing practitioner finds that thecustomers cuts the delivery of that better mouse trap at the right

place at the right time and at the right quantity. The physicaldistribution function like other half of marketing is responsible forcompleting the marketing transaction.


37/58

SELECTIONOF CHANNEL

The problem of selecting the best distribution channel is the

most complex one. There are many factors affecting the channelchoice as like natures of the product marketing environment etc.These all are the very important factors or determinants of thedistribution channel. Every marketer has to consider all these factorsat the time of selection the distribution channel while selecting thechannel member. Bajaj Auto Ltd. takes the following factors intoconsideration.

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

Ltd. finds out the financial condition. If the financial condition issound then Bajaj Auto Ltd. looks other aspects also.

2. LOCATION:

Location is the most important for wide market coverage BajajAuto 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 orretailer ofBajaj Auto Ltd. and also Bajaj Auto Ltd. takes care toselect the candidate who has some reputation in market.

4. PROVISION FOR AFTER SALES SERVICE:

If dealer, retailer or wholesaler is ready to give after salesservice to the customer, the Bajaj Auto Ltd. takes particulardecision for selection. Not only that Bajaj Auto Ltd. has offered theafter sales service on its vehicle.


38/58

NUMBEROF CHANNEL LEVEL

Distribute means to distribute, spread out or disseminate. In the

field of marketing channel of distribution indicate routes or pathwaysthrough which goods and services flow or from producers toconsumers. 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 thecustomers demand easily of Bajaj Auto Ltd. has also started toappoint the dealer in the rural area to cover the whole nation.

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 inthe share of market. Market coverage is an important activity whilethe company is passing from the period of stability. The Bajaj AutoLtd. has also created its good position in the corporate market. It isnumber one in moped and scooter and now a days in Bikes BajajAuto Ltd. gets good part in the total market share.


39/58

TRANSPORTATION

Markets need to be concerned with their companies

transportation decision. Transportation choice will affect the pricingof the product on time delivery performance and the condition of theBajaj Auto Ltd. which they arrive all of which affect customersatisfaction. Transportation is cause of problems of physicaldistribution. It is sometimes caused the guardian knock of physicaldistribution management.

WARE HOUSINGEvery company has to store its goods while they cant be sold

immediately storage. Function is necessary, because production andconsumption cycle is rarely matched. The company must decide on adesirable numbers of stocking locations. More stocking locationmeans that goods can be delivered to customers more quickly. Thenumber of stocking location must strike a balance betweencustomers service level and distribution costs. So far as Bajaj AutoLtd. is concerned it is not the practice of the company to providewarehousing facility to the dealers. Hence, to make arrangement ofgo downs for the storage of two wheelers. In Rajkot Rajarshi AutoDeals Pvt. Ltd. has a very big warehouse.


40/58

RESEARCH

METHODOLOGY


41/58

CONTENTS

Sr.N

o

Particulars Page No

1. Introduction

2. Research Objective

3. Research Methodology

4. Limitation Of Study


42/58

INTRODUCTION

Market research is an essential tool in the marketing

planning process and places a vital part in the business decisionmaking process. Its application is effective in all industrial,commercial and consumer market. More importantly, the results thatcan be achieved from the market research process are the realobjective of the business plan. They are the most significant elementof the marketing mix to influence business decision.


43/58

RESEARCH OBJECTIVEAs a student my objective of preparing this research report is

not only to submit the report to the saurashtra university but also to

get knowledge in practical field of Bajaj Auto Ltd. With specialreference to consumer satisfaction.

The real aim of caring out the survey was to get idea about thefollowing,

1. The main objective is to know consumer satisfaction towardsBajaj motorbikes.

2. To know which model is more popular among customer.

3. To know which factor motivate the customer while purchasingthe particular bike.

4. To know which of the competitive bike the customer has takeninto consideration.

5. To know the expectation of consumer from the company.

SCOPE OF STUDY:

To know the consumer satisfaction towards Bajaj AutoLtd i have selected 50 consumers for survey which includes students,

businessmen, professionals etc.

RESEARCH METHODOLOGYMethodology means the method used by the researcher for a

systematic study of any particular problem or subject.

For the preparation of this report, I have used primarydata but so far as this research report is concerned, it has beencollected through questionnaire and discussion method, which arethe most common but appropriate method for getting desiredinformation.


44/58

TABLE = 1

SR.NO. MODELNO OFRESPONSES PERCENTAGE(%)

1. CT 100 27 54%2. WIND 125 3 06%

3. DISCOVER 6 12%

4. CALIBER 1 02%

5. PULSAR 11 22%

6. ELIMINATOR - -

7. CHETAK 1 02%

8. SUPER - -

9. ASPIRE 1 02%50 100%

0

10

20

30

40

50

MODEL

1

2

3

4

5

67

8

9

3-D Column 10

Moreover the moral of dealers can be enhanced through

advertising hereby securing enthusiastic distribution of product. Italso promote bright image of the company in the society.


45/58

TABLE = 2SR.NO PERIOD OF

PURCHASENO OFRESPONSES

PERCENTAGE(%)

1. Before 6 months 5 10%2. Before 1 year 5 10%

3. Before 1 year 7 14%

4. Before 2 years 25 50%

5. Before 5 years 8 16%

50 100%

0

5101520

2530354045

50

PERIOD OF

PURCHASE

PERCENTAGE(%)

1

2

3

4

5

FINDINGS:

Out of 50 consumers surveyed it is found that 16% ofthe consumer had purchased 5 years ago while 50% of them

purchased 2 years ago while 14% of them purchased before1 year while 10% of them purchased before 1 year and 6months so from that we can easily say that BAJAJ AUTO LTD.Is very popular among the customers from last so many years.


46/58

TABLE = 3

SR.NOTYPES OFFACTORS

NO OFRESPONSES PERCENTAGE(%)

1. Reasonable Rate 4 8%2. Fuel Efficiency 20 40%

3. Brand Image 16 32%

4. Re-sale Value 10 50%

0

5

10

15

20

TYPES OF

FACTORS

PERCENTAGE(%)

1

2

3

4

FINDINGS:From the above chart we can say that 40% of the

consumer purchased BAJAJ AUTO LTDS bike for fuel efficiencywhile 32% purchased it strong brand image while 20% buy it for its

re-sale value and 8% buy it for reasonable price. So we can say thatBAJAJ AUTO LTDS consumers are more conscious about fuelefficiency and brand image.


47/58

TABLE = 4

SR.NO OTHER BIKESNO OFRESPONSES PERCENTAGE(%)

1. Victor 3 6%2. Boxer 11 22%

3. Caliber 2 4%

4. Pulsar 10 20%

5. Enticer 3 6%

6. Eliminator 2 4%

7. Libero - -

8. Max - -

9. Other 19 39%

0

5

10

15

20

OTHER BIKES PERCENTAGE(%)

1

2

3

4

5

6

7

8

9

FINDINGSFrom the above diagram 38% of the consumers had shown the

interest that they are interested in purchasing other bike but it wassurprised to note that they were the bikes of BAJAJ AUTO LTDonly for e.g. if one possess Eliminator then he is interested to

purchase Pulsar.22% of them were considering Boxer while 20% ofthem were interested in Victor, 6% of them were considering Enticerand & 4% of them have considered Libero. So that we can say thatmain competitors of BAJAJ AUTO LTD is Victor(that isconsidering he price factor) and Libero

(by considering status factor).


48/58

TABLE = 5SR.NO Satisfied with Current

ProductNo ofresponses

Percentage(%)

1. Yes 42 84%2. No 8 16%

0

5

1015

20

25

30

35

40

45

Satisfied with

Current

Product

Percentage(%)

1

23-D Column 3

FINDINGSFrom the above diagram we came to know that 84% of

consumers are satisfied with their current bike and 16% of them arenot satisfied with their bikes. So that we can say that maximumnumber of consumer are satisfied. The satisfaction anddissatisfaction ratio approximately 5:1.


49/58

TABLE = 6SR.NO Benefit of Promotional No. Of

ResponsesPercentage(%)

1. Yes 15 30%2. No 35 70%

0

5

10

15

20

25

30

35

Benefit of

Promotional

Percentage(%)

1

2

3-D Column 3

FINDINGSFrom the above diagram we can say that only 30% of them are

taking the benefit of promotional scheme while 70% of them are nottaking the benefit of promotional scheme from that we can say thatmaximum no. of consumer are unaware about promotional scheme

so that they are not able to take the benefit of promotional scheme.So it is advised that company should give more advertisementregarding promotional scheme.


50/58

TABLE = 7SR.NO Want to change your

motorbikeNo. OFResponses

Percentage(%)

1. Yes 18 36%2. No 32 64%

0

510

15

20

25

30

35

Want to

change your

motorbike

Percentage(%)

1

2

3-D Column 3

FINDINGSFrom the above diagram we can say that 36% of the consumer

want to change their motorbike and 64% of the consumers are notwant to change their bike. From the conversation with these 36%

mass (who want to change their bike) come to know some reasonsthey are as follows:

- By considering the time period they want to change yourbike

- Some of the consumers are attracted towards new models.


51/58

TABLE = 8SR.NO Expectation From the

CompanyNo OfResponses

Percentage(%)

1. New Models 17 34%2. Mileage 10 20%

3. Promotional Scheme 11 22%

4. Better after sales service 12 24%

02468

1012141618

Expectation

From the

Company

Percentage(%)

12

3

4

FINDINGSFrom the above diagram we can say that 34% of the consumers

are expected from company to offer new models as such consumershaving an esthetic appeal while 24% of them expect after salesservice, 22% expect more promotional scheme and 20% of themexpect better mileage.


52/58

LINITATION OF STUDYEvery research report is to always perfect every research is

conducted keeping in mind certain constrains and restrictions. As a

student, I tried my best relevant information regarding the researchbut, than too, I found following limitations of these research.

They are:1. Study is restricted to Rajkot city only.2. Sample size of 50 may not be sufficient for making perfect

evaluation of total population.3. Keeping in the mind the psychological constrains, the

questionnaire includes limited questions only.


53/58

CONCLUSION


54/58

CONCLUSION

From the analysis of a BAJAJ AUTO LTD. It canbe concluded that the future of the company is bright. Bajaj auto ltd.Was the first company to get such a great response from consumersfor bikes before Bajaj bikes were available but they were notexpected by consumers so Bajaj auto brought a revolution in themarket of bike.

Bajaj auto ltd is having a good market share,

consumers are brand loyal and with the regular introduction of newmodel. Company is getting more credit in the market.


55/58

SUGGESTIONS


56/58

SUGGESTIONOn the basis of comprehensive research of the Bajaj Auto

Ltd. under gone at Rajarshi Auto Deals Pvt. Ltd. it can beconcluded that the position of the Bajaj Auto Ltd. in the corporatefield is very strong. The well experienced efficient and industrioussales force is the strength of it. The value of the Bajaj Auto Ltd. ismore than the other vehicles manufactures.

From the survey analysis is found that there are some areaswhere they need improvements that are as follows:

1. The company spends less on promotionactivity and consumer are expecting more promotional benefitso company need to offer more promotional benefit to theconsumer .

2. In spite of regular introduction of new modelsby the company, consumers are still expecting better bikes withbetter re-sale value and less maintenance. So company should

introduce new model by considering this factor.


57/58

SWOT ANALYSIS


58/58

SWOT ANALYSIS

STRENGTH- Good brand image- Variety of product- Good financial support- Good advertisement

WEAKNESS

- Resale value not available- Require maintenance in

very short time

OPPORTUNITIES

- Try to launch newbikes with goodaverage.

- Try to give more color choice to customers

THREATS

- Tough competition- Compromise with

price

Bajaj Auto Ltd. (1)

Documents

Transcript of Bajaj Auto Ltd. (1)