baja term paper

8/8/2019 Baja Term Paper

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TERM

OF

Fundamentals of Promotions Management

TOPIC: TWO WHEELER INDUSTRY

(BAJAJ PULSAR)

Submit by:

to:

Mankirtan singh Kuljeet K.

Minhas

10800320

RQ1809A11



BBA(HONS)MBA

INTRODUCTION OF “BAJAJ AUTO LTD.”

Bajaj Auto Limited are a leading manufacturer of 2 wheelers in India. Bajaj have plant

located at Akurdi near Pune and Waluj near Aurangabad. bajaj are planning to increase

our market share in the 2-wheeler segment. Bajaj have the required resources and

technical expertise along with goodwill they have built over the years among the Indian

consumer.

In the recent past, a manufacturers’ ability at product innovation and opening new market

niches have also been crucial for the growth. Bajaj technical collaboration with Kawasaki

of Japan has helped us to design a new moped for the semi urban and rural Indian

consumer. Improvement in product range, access to vehicle financing schemes and

deficiencies in rural personal transport will aid market expansion.

Mission:

• Focus on value based manufacturing

• Fostering team work & enhancing the capability of the team

• Continual Improvement• Total Elimination of wastes

• Pollution Free & Safe Environment

VISION :

• To attain World Class Excellency by demonstrating Value Added products to

customers.

OBJECTIVE

Bajaj Limited are to cater the market needs of transportation by providing 2wheeler and 3 wheeler vehicles. BAL has been producing thecatalogue productsto cater to the changing market requirements. Based on thecustomer feedback,

improvements are being made continuously in the existingproducts. In the

process of introducing new products, emission requirementsare being taken intoconsideration and products manufactured are meeting the regulatory

requirements.



GOAL

• To make Bajaj Auto as the country's largest automobile company.

Swot of bajaj Automobiles

strengths

• Highly experienced management.

• Product design and development capabilities.

• Extensive R & D focus.

• Widespread distribution network.

• High performance products across all categories.

• High export to domestic sales ratio.

• Great financial support network (For financing the automobile)

•High economies of scale.

• High economies of scope.

Weaknesses:• Hasn't employed the excess cash for long.

• Still has no established brand to match Hero Honda's Splendorcommuter segment.

• Not a global player in spite of huge volumes.

• Not a globally recognizable brand (unlike the JV partner Kawasaki)

Opportunities:

• Double-digit growth in two-wheeler market.

• Untapped market above 180 cc in motorcycles.

• More maturity and movement towards higher-end motorcycles.

• The growing gearless trendy scooters and scooterette market.

• Growing world demand for entry-level motorcycles especially in emerging

markets.

Threats:

• The competition catches-up any new innovation in no time.

• Threat of cheap imported motorcycles from China.

• Margins getting squeezed from both the directions (Price as well as Cost)



Corporate plan

(corporate objectives and

strategies)

Marketing Plan

(marketing objective and

strategies)

Steps involved in the marketing plan-

Situational analysis set marketing objective

devise marketing objective

frame implementation tactics

monitor and evaluate performance

IMC plan

(IMC objectives and strategies)

Steps involved in the IMC plan

Situational analysis Determine a problem and opportunity

Determine

the communication objective

Determine the budget

Develop IMC

strategies

Implement it and monitor activities

Evaluate the planning

process



IMC PLAN OF BAJAJ PULSAR

SWOT Analysis of bajaj pulser:

STRENGTHS

• Pulsar 200cc features India’s First Oil Cooled Engine which delivers maximum

power making it most powerful engine offered by Bajaj.

• New Pulsar also provides Digital Speedometer, Self Canceling Indicators which is

for the First time in this segment in India.

• Fuel efficiency: Pulsar 200cc delivers an impressive mileage of 38.2 kmpl in city as

compared to Karizma which delivers 30 kmpl in city.

• Customer Base: In past decade Bajaj has established a strong base amongst itscustomers.

WEAKNESS

• Style and Design: PULSAR 200cc and 220cc derives their styling from thereprevious version Pulsar 150 Dts-i and 180 Dts-i.



• Pricing ; Bajaj 220cc(Rs 82449 basic price) is costlier than karizma(Rs 78000 basic

price)

OPPORTUNITIES

• If they derive new styling, shape, design for pulsar 200cc and 220cc then they canattract more customers.

• Taking into consideration the reviews of the customers regarding the “fairing” of

220cc and making the needful changes will be an opportunity to capture an even

larger share of the 200cc+ segment.

THREATS:

• The biggest threat is faced from the goodwill of Karizma in this segment who is the

“Four-Stroke Two wheeler Ruler” of the Indian bike market.

• Certain technical faults in the bike design which are potentially dangerous to the

rider’s safety can be disastrous to the image of the bike.

Problem/Opportunity Determination:

Problem:

The environment changed in the mid-1980, when the japanese manufacturers started

looking for possible indian partner in two wheeler segment.the Honda motor company set

up kinetic Honda with the firodias to manufacture scooters and hero Honda with the

munjal family to manufacture motorcycles.around the same time Suzuki partnered with

the TVS group to set up TVS Suzuki,yamha with Escorts to make motorcycle and

piaggio with the singhanias in LML to make scooters.

So at that time bajaj had limited R&D and no partners to access for new models or technologies.on the other hand the other competiators launch new models of bikes but

bajaj justb focusing to reduction their production cost for this the market share of bajaj

should decline.

Opportunity:



So the opportunity for bajaj is to tie-up with international two wheeler company and they

can do this by tie-up with Tokyo based two wheeler company and first time in indian

automobile two wheeler history launching DTS-I technology through this they can

introduce sports bike like pulser in range of different cc’s through this they can grab the

market those customers who are high spender.

Communication Objectives:

• The communication objective of bajaj pulsar is “Definitely Male" positioning

Pulsar to be a masculine-looking model with an appeal to the performance

sensitive customers.

• The bike take the position of Macho bikes it was more oriented towards being

"sexy".

• The position of the bike as World's first bike endowed with a Sex

(Gender).

• Bajaj Limited cater the market needs of transportation by providing 2 wheeler

vehicles in all segment like average income, middle income people and highincome people through segmentation.

• It has been producing the catalogue products to cater to the changing marketrequirements.

• Based on the customer feedback, improvements are being made continuously in

the existing products.(Exp. Firstly they launch 150cc pulsar then 180cc then200cc then 220cc.)

• In the process of introducing new products, requirements are being taken intoconsideration and products manufactured are meeting the regulatory requirements.

Budget Determination:

Budget for the implementation of IMC plan will be based on our competitors budget,

pulsar will allocate 20% more than its nearest competitor on implementation of IMCplan. Because the pulsar is being as a men’s bike so there is so many stunts are involved

in their advertisement. The advertisement has done through different campaning like

organise sports event, the budget for this is 4 crore in comparison of Hero Honda 2 crore.

IMC Strategies:



Target Audience

Bajaj target customer is in the income group of Rs. 25,001 to Rs. 50,000 (Low Middle

income group), and Rs. 51,000 to Rs. 77,000 (Middle income group).

The age of the target customer is from 21 years to 35 years.

Pulsar DTS-I are entry-level vehicles. The demand for Pulsar is predominantly from

middle to high income families and also among college students, who graduate from

bicycles to motorized vehicles.

Why should people go for pulser?

• A pulsar is much average as compared to (Hero Honda) bikes, which range

between Rs 70,000 – Rs 90,000. A Pulsar is only Rs 50,000 – Rs 800,000 andhence will be a more affordable solution to the young customers’ needs.

• Pulsar, which we offer, will run on Petrol with DTS-I and hence it would be a

more feasible option than other petrol-run this segment of bikes.

• Pulsar give more status for money to the middle-income people who wants an up-

gradation for a low standard bikes but can’t afford a bike.

Communication Mix

Advertisement

Television:

Bajaj plan to screen our advertisements on channels like Doordarshan, which is the most

common channel in India and is present an all the TV sets irrespective of the presence of any other satellite channels. Apart from Doordarshan, Bajaj also plan to show our

advertisements on regional language channels like the Zee Alfa Marathi, DD Marathi etc.

The timings will be thoroughly studied and selected. Since it is a male usage product, the

product will be screened on programs with majority of male viewers. Apart from that

family dramas/programs will also have the commercials of our moped.



Sample the commercial: A slow, casual bank robbery. A slow, casual walk to the bike,

even as the cops close in. One second the robber is about to get caught; the next, he's long

gone.

Add to this the fact that the Pulsar 220 is the fastest production bike in the country with a

top speed in excess of 140 kmph. The fastest Indian? You got it!

Print Ads:

Will be published in youth’s magazines such as sports stars and other popular magazines;

print ad will carry full details of fast track watches launched and store details.

This is the print advertisement of

new DTSI technology launching in bajaj pulsar

News paper:

Like Times of India and The Hindu will carry paper bleeding ads of full size paper for

the launch of new range and opening of new pulsar or xcd bikes.



Hoardings:

Bajaj will also put up hoardings carrying messages issued in public interest near accident-

prone zones, railway crossings, and town/village entrance (gate).

Sales promotion

Sales promotion will be used at the time of festivals such as Diwali, Dushera and

Christmas to boost the sales and increase footfalls in the stores, following sales

promotion technique can be used to boost the sales:

Discounts-Time to time we will use sales promotion to boost sales, during festive

season such as Diwali and Dasheraa we can provide discounts on a certain amount of

purchases. Like if customer purchase 150 cc pulsar bike they get discount of

Rs.2000/- and when customer purchase 200 cc bike they will get free insurance or

bike covers etc.

In sale promotion like their should be a camp on main road or popular street like for

offering that there should be exchange offer give your old bike or scooter and take a new

bajaj bike the amount of old exchange bike or scooter will be deducted from the new one

bajaj bike. this will be implemented in their agencies also.

Its After Sales Service will include a 1-year warranty on spare parts and free servicing for

the first 3 times (not including cost of parts).

Events

National Sports Authority of India. Out door Basket ball & Volley ball courts in

addition to Hockey & Football playgrounds are already being utilized by the local

population.



Raman Munjal Memorial Hospital : A multi specialty 30 bed hospital, to be upgraded

to 100 bed unit having state of the art equipment providing quality health care to the rural

population of the catchment area of 20 KM around Dharuhera, apart from providing

immediate life saving medical aid to the Accident & Trauma victims of National highway

No-8 .

Drinking Water: Southern Haryana being water scarce area, the Company has installed

75 deep bore hand pumps in the adjoining villages to provide clean drinking water.

Public relations

Public relation campaign will start with preparing database of our existing customer and

preparing database of our potential customers so that future offers can be send to them,

database of customers will be collected by filling form online and on our

Message Strategies:

• Definitely male

• Digital Biking

• Free biking

• Distinctly Ahead (Which also happens to be corporate tagline)

It was not only the bike's performance that triggered the brand becoming an icon, bike

take the persona of Macho bikes it was more oriented towards being "sexy". The Big

Idea was to position the bike as World's first bike endowed with a Sex (Gender).Thus

born the classic campaign of all times "Definitely Male". The design and performance

of the brand increase sales level.

Medium:

• Medium used were all.

•

They used all – print, TV, ads, sponsorships, events, associations etc.• TV: mostly shown its abilities, more visual appeal

• Print: gave the specifications etc. (Information)

• Other media: stayed in the minds of consumers.

• Auto magazines: Reviews from the experts, experts and critic reviews.



Implementation and monitoring of strategy:

we expect to sell 2800 units in Year I with a Profit of Rs.4 crore in Year I. its fixed

expenses for the purpose of this project would be around Rs.14crores. Its Break-Even

Sales is 12,00 units approx. and it plans to achieve it by the end of Year III.

After being successful in these areas, it plans to expand further in the region, launch a

new variant, and also expand to other high-density states.

Annual Projections

– Total Sales in Year I – 2800 units (monthly distribution as above)

– Total Sales in Year II – 4800 units (after expanding to other areas)

– Total Sales in Year III – 7800 units (extensive market penetration)

Evaluating the planning process:

Evaluation of an IMC plan is not an easy task but we will evaluate our planning process

in certain parameters such as-

• Profit increasing after sales per year as mentioned above..

• Increase in monthly sales

• Brand awareness among the customers

• Response to the sales offer.

Conclusion:

Bajaj Auto has been at the forefront of bringing about major changes in its

technologies and processes to create more exciting and distinctive offerings for its

customers. In the process, it has gone through two overlapping processes of transformation. The first was creating, communicating and executing basic processes

of change - of the way it looked at products and design, at markets, at engineering and

manufacturing, and at the organizational structure for delivering mind-set change. Itsuse of new technologies gave consumers greater power and more riding comfort

without sacrificing economy; in its high quality engineering and R&D; and in its

speed and transparency.

The Pulsar was the first “definitely male” bicycle that was the first one to be

positioned as the “male” amongst bikes. Thanks to this single place the Pulsar 150cc

has been the greatest prosperous 150 cc till date.



It needs to target the young age group more effectively as this group is extremely

trend savvy. The advertising should have a fresh look and the product should live upto the Gen-X's expectations.

References

http://www.marketing91.com/swot-bajaj pulsar/

http://strategicbrand.blogspot.com/2007/06/ bajaj pulsar.html

http://www.marketing91.com/marketing-mix- bajaj pulsar /

http://www.slideshare.net/sk_prince/sales-promotion- bajaj pulsar

5688049

http://bms.co.in/advertising-/

http://www.advertolog.com/marico-industries/print-outdoor/ bajaj

pulsar -4851455/

http://www.marketing91.com/swot-bajaj%20pulsar/

http://strategicbrand.blogspot.com/2007/06/%20bajaj%20pulsar.html



http://www.marketing91.com/marketing-mix-parachute/



http://www.slideshare.net/sk_prince/sales-promotion-parachute-oil-5688049





http://www.advertolog.com/marico-industries/print-outdoor/parachute-4851455/




http://www.marketing91.com/swot-bajaj%20pulsar/








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