BAJAJ CHETAKRural

Marketing

PresentersPrashant Narayankar 66Prashant Patil 70Manish Solkar 101Ganesh Sonkar 103Aditya Tambe 105

AcknowledgementI would like to take this opportunity to express

my sincere thanks to Prof. Sushmita Mukerjee, Faculty of Co-operatives & Rural Marketing, Alkesh Dinesh Mody Institute for Financial Management Studies, Mumbai University, who gave me an opportunity to write on this topic and also gave her valuable suggestions to complete this project and without her this project would not have reached this shape.

I would also like to thank my family, without their love and support this project would not have completed. Last but not the least; I would like to thank my friends who were very helpful throughout the completion of the project.

1926 •Bajaj Group formed by Jamnalal Bajaj.

1945•Kamalnayan Bajaj set up Bachraj Trading Corp. Ltd. (BTCL) to import and sell 2 & 3 wheelers.•Continued till 1959

1959 •Secured license from GOI to manufacture 2 and 3 wheelers.

1961• Technical collaboration

with Piaggio for manufacturing scooters.

1971

• Till 1971, scooters sold under VESPA brand.

• Agreement with Piaggio ended, started selling scooters under Bajaj brand.

1972 • Bajaj Chetak introduced – a two stroke engine

• BAL – an importer of two and three wheelers

Mid 1940s

IntroductionProduced by Bajaj Auto Ltd.It is the first scooter model in India

introduced in 1972.having 2 Stroke (after 2002 it is 4 Stroke)

engine of 145.45 cc with 4 gear.The Chetak, a geared scooter, had reigned

over the Indian two-wheeler market in the late 1970s to early 1990s

BAL AND THE INDIAN TWO – WHEELER MARKET

Mid- 1950 to 1980• Indian Industry operated under “License Raj”.• Production capacity determined by GOI.• Domestic market protected from foreign

competition by imposing restriction and tariffs. • One scooter manufacturer in India – Automobile

products of India (API), • Three other motorcycle manufacturers like

Enfield India Ltd, Ideal Jawa Ltd and Escorts Ltd.

In 1960 - 1970

GOI encouraged local companies to collaborate with foreign firms.

In 1961, BAL collaborated with Piaggio, manufactured Vespa

List of two – wheeler Merger1955 - Enfield India Ltd collaborated

with Enfield Ltd, UK.1969 – Automobile products of India

collaborated with Innocenti Ltd Italy.Escorts Ltd with CEKOP, Poland.

Ideal Jawa Pvt Ltd Collaborated with Jawa Ltd, Czechoslovakia.

DOMINANCEOF

SCOOTERS

In 1970s and 1980sMost preferred by middle class Indians

because of their :-DurabilityLow maintenace costVersatility

Some not so favourable reason of motorcycles:-CostlierHeavierNot as fuel efficient as scooter

In 1970s, scooter became popular and preferred over motorcycle.

Scooter were cheaper than motorcyclesMore economical to run as well as maintainMotorcycles were bulky and had more

weight as compare to scooter

MARKET SEGMENTATIONFor family man, aged between 27 and 38 years, to transports whole family.

Brand name, word-of-mouth recommendation, low maintenance and mileage were the main concern for this kind of customers.

COMPETITORS“The best of the world are here and they’re

here to stay.”Only competitors manufacturing a full range

of two-wheelers and three wheelers products.

1. Kinetic Honda: Manufactured for scooters and mopeds Had collaborations with Honda for

motorcycles. Market share (scooter)-14% in 1992. Introduced Electric starter but was 15%

costlier than BAL

1993, Honda increases its equity in Kinetic to 51% and aimed to become number one in Indian two-wheelers market.

2. Hero Honda: Manufactured both motorcycles and

Moped. Market leader in 1992 with share of 33% in

motorcycles segment.

3. LML Vespa: Manufactured only scooters in

collaboration with Piaggio. Market share- 11%

4. TVS: Manufactured mopeds and motorcycles in

collaboration with Suzuki Market share (motorcycle)- 8% Market share (moped)- 31%

Reasons for Failure? or Decline?

PricePrice in our view was never a issue associated

with this product, it perfectly suited the profile of the product in the market whether taken earlier in mid seventies or late nineties as it was according to its offerings.

It was perfectly targeting the economical class which was itself a part of the large mass of population itself, meaning affordable range.

Bajaj Chetak's price was truly affordable. But the new motor cycles entering the two wheeler segment offered better technology & fuel efficiency than Bajaj Chetak at almost same price.

ProductThe company should look upon its R&D and improve

the overall looks of Bajaj Chetak.

It should make efforts to change the quality & style of the scooter to suit the tastes & preferences of its customers.

The product had serious problems like starting trouble & riding comfort, which need to be eliminated. Auto start feature which was prominent should have been introduced.

Though counted as efficient in many terms Fuel efficiency was a major issue. In our view the combustion efficiency of the scooter needed to be improved and efficiency in terms of mileage needed a major boost.

The main marketing strategy used by Bajaj Chetak was

mainly targeting the emerging middle class in India and adding the feeling of 'we' or the feeling of belongingness by strong sentimental slogans like "Hamara Bajaj".

The Approach of this Marketing Strategy adopted by Chetak was Non-Pragmatic

Bajaj Chetak should come out with various schemes & incentives, no warranty schemes were wailed by the company or add-on products and service centers were less in number which should have been more to ease customer support and product maintenance centers.

Promotion & Advertising

Indeed….truly it was

“Hamara Bajaj”

!!! THANK YOU !!!