Presentation On Life Cycle of Bajaj Chetak

GROUP MEMBERSChetna Mandhare

Kamal SarkarDebita Das

Presented by ‘The Centuars’

Overview… INTRODUCTION OF “CHETAK”FEATURESPRODUCT LIFE CYCLE OF BAJAJ CHETAK

INTRODUCTION STAGEGROWTH STAGEMATURITY STAGEDECLINE STAGEWITHDRAWAL STAGE

REASONS FOR FAILUREREFERENCES

BAJAJ CHETAK

The Chetak, BAL's first scooter model under the Bajaj brand, was introduced in 1972. It was named after the horse of famous Indian warrior King Rana Pratap. The Chetak, a geared scooter, had reigned over the Indian two-wheeler market in the late 1970s to early 1990s. Starting Price Quoted in the start was roughly between Rs. 8000-9000/-. This Bajaj creation was specifically designed keeping the road condition of India in mind.

BAJAJ CHETAK

Hamara BAJAJ

FEATURES

PRODUCT LIFE CYCLE OF BAJAJ CHETAK

INTRODUCTION STAGE :-1972 to late 70’s

GROWTH STAGE :- late 70’s to early 90’s

MATURITY STAGE :-1990 onwardsDECLINE STAGE :-1995 onwardsWITHDRAWAL STAGE :- 2009

I. Introduction stage The company’s First Scooter model,

CHETAK, was launched in 1972. Starting price quoted in the beginning was

roughly 8000/- to 9000/-. The Launch of Bajaj Chetak was mainly

targeted at economical Class. This Bajaj creation was specifically

designed keeping the road condition of India in mind.

Late 70s had been the Golden period for the Bajaj scooters,especially the Chetak

II. Growth Stage

II. Growth Stage

III. Maturity stage In the late 1990s, the Indian two-wheeler

market witnessed a shift in consumer preferences.

The popularity of geared scooters began to wane while that of motorcycles soared.

There were various reasons for the shift -India was undergoing a demographic change.

While these changes were taking place in the market, the features of scooters, especially those of the Bajaj Chetak, remained essentially unchanged.

many newer models of motorcycles, with improved designs and modern technology had become available in the market.

Iv. Decline stage The primary reason is that the Brand

forgot the customers. The company failed to understand the

changing perception of the customerstowards scooters.

Bajaj never did anything with the product. For 40 years Chetak had the same look,

same quality and style. During the mid nineties the company

realised lately that the segment has shifted to motorcycles. Scooters were no longer the option.

v. withdrawal stage

Bajaj stopped production of its bestselling brands like Chetak 2006 amid plummeting sales.

In the face of rising competition from bikes and cars, the Chetak lost ground in India, and production was discontinued in 2009.

PLC GRAPH

Reasons for failure

Even after the opening up of economy, the scooter segment did not witness much competition.

The players like Vespa did not had much of success in this segment.

Kinetic Honda managed to carve a niche with its gearless scooters. Another segment which was growing was the scooterette segment which was dominated by TVS scooty.

There was nothing wrong with the Promotion. There was nothing wrong with distribution and the pricing was very reasonable. The major problem

Reasons for failure

Bajaj never seriously looked at customer perception about Chetak. The product had serious problems like starting trouble and riding comfort. The " Tilting the Chetak to the side for starting " was a common joke.

Bajaj never was serious about product development. The combustion efficiency of the scooter needed to be

improved and efficiency in terms of mileage needed a major boost.

Bajaj Chetak should come out with various schemes & incentives.

"Like Volkswagen Beetle, the product (Bajaj Chetak) had lost its relevance."

Rajiv Bajaj, MD, Bajaj Auto Ltd., in January 2006.

"We believe it is not good enough to be better, it is important to be distinct.

Rajiv Bajaj, Managing Director, BAL.