Assignment-3Subject:- Rural Marketing

Topic:- Bajaj Two wheelers

Submitted To Submitted By

Mr. Hitesh Jhanji Aamir Khan

RT1901A61

10907135

Introduction of the company

Bajaj Auto is a major Indian automobile manufacturer started by a Rajasthani merchant. It is based in Pune, Maharashtra, with plants in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttaranchal. The oldest plant at Akurdi (Pune) now houses the R&D centre Ahead. Bajaj Auto maker and exports motor scooters, motorcycles and the auto rickshaw.

Over the last decade, the company has successfully changed its image from a scooter manufacturer to a two wheeler manufacturer. Its product range encompasses scooters and motorcycles. Its real growth in numbers has come in the last four years after successful introduction of a few models in the motorcycle segment.

Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading Corporation Private Limited. It started off by selling imported two- and three-wheelers in India. In 1959, it obtained license from the Government of India to manufacture two- and three-wheelers and it went public in 1960. In 1970, it rolled out its 100,000th vehicle. In 1977, it managed to produce and sell 100,000 vehicles in a single financial year. In 1985, it started producing at Waluj near Aurangabad. In 1986, it managed to produce and sell 500,000 vehicles in a single financial year. In 1995, it rolled out its ten millionth vehicle and produced and sold 1 million vehicles in a year.

Data The population of Punjab on April 1st 2011 is approximately 75,699,004

No. of Villages in Punjab-12729

Population in rural area;- Male-8.5 millions female-7.6 millions

Population in urban area;-male-4.5 millions Female-3.8 millions

Per capita Income In Urban Area -21,413 Rs./annum (NCAER 2002)

Per Capita Income in Rural Area -16,540 Rs./annum (NCAER 2002)

Product Portfolio

Bajaj Pulsar 220cc DTS-i

Bajaj Pulsar 150cc DTS-i

Bajaj Discover DTS-i 135cc

Bajaj Platina 100cc

Bajaj Avenger

Bajaj Chetak

Bajaj Kristal DTS-i

Bajaj MotorcyclesBajaj Motorcycles and Step-through from Bajaj Auto motorcycle range extends from the value for money - Boxer to the top of the line - Bajaj Kawasaki Eliminator, Bajaj Pulsar, their latest introduction has set new standards for performance.

Bajaj ScootersBajaj has strengthened its presence in the scooter market with the launch the 4 stroke variant of the Bajaj Chetak.

Bajaj ScooterettesBajaj Spirit One of the largest two-wheeler manufacturer in the world Bajaj Auto is present in every segment of the market be it scooterettes, scooters, motorcycles and three wheelers. It has supplemented its

collaboration with Kawasaki with its own range of Bajaj Motorcycles and Bajaj Scooters.

The Marketing Mix

The major marketing management decisions can be classified in one of the following four categories:

Product Price

Place (distribution)

Promotion

These variables are known as the marketing mix or the 4 P's of marketing. They are the variables that marketing managers can control in order to best satisfy customers in the target market. The marketing mix is portrayed in the following diagram:

The Marketing Mix

Product   Place

     

  TargetMarket

   

   

Price   Promotion

The firm attempts to generate a positive response in the target market by blending these four marketing mix variables in an optimal manner.

Product

The product is the physical product or service offered to the consumer. In the case of physical products, it also refers to any services or conveniences that are part of the offering.

Product decisions include aspects such as function, appearance, packaging, service, warranty, etc.

Price

Pricing decisions should take into account profit margins and the probable pricing response of competitors. Pricing includes not only the list price, but also discounts, financing, and other options such as leasing.

Place

Place (or placement) decisions are those associated with channels of distribution that serve as the means for getting the product to the target customers. The distribution system performs transactional, logistical, and facilitating functions.

Distribution decisions include market coverage, channel member selection, logistics, and levels of service.

Promotion

Promotion decisions are those related to communicating and selling to potential consumers. Since these costs can be large in proportion to the product price, a break-even analysis should be performed when making promotion decisions. It is useful to know the value of a customer in order to determine whether additional customers are worth the cost of acquiring them.

Promotion decisions involve advertising, public relations, media types, etc.

Product Price Place Promotion

Functionality

Appearance

Quality

Packaging

List price

Discounts

Allowances

Financing

Leasing options

Channel members

Channel motivation

Market coverage

Locations

Advertising

Personal selling

Public relations

Message

Brand

Warranty

Service/Support

Logistics

Service levels

Media

Budget

Bajaj Pulsar Bikes in India

Bajaj Pulsar is a very popular bikes brand by Bajaj Auto in India. Two wheeler industry is developing very fast in few years and the Bajaj Pulsar is becomes the trend in youngsters and the people in India. With Bajaj Pulsar, Bajaj Bikes India has been successful in creating a new segment in the Indian bikes market with powerful and affordable bikes. Currently available variants with engine capacities of 135cc, 150cc, 180cc, 200cc and 220cc. Bajaj Pulsar has been sold More than a million units till today. Bajaj Pulsar is the leader in the 150cc segment in India.

Bajaj Pulsar Bike Variants in India:

Bajaj Pulsar is just the bike that exactly fits this definition and need. Bajaj Pulsar is a cool bikes with its looks and delivers great performance on Indian roads for riders. Currently available variants with engine capacities of Pulsar 135cc, Pulsar 150cc, Pulsar 180cc, Pulsar 200cc and Pulsar 220cc. Bajaj Pulsar has been sold More than a million units till today. Bajaj Pulsar is the leader in the 150cc segment in India.

Bajaj Bikes: An extremely popular bike on the Indian roads, the Bajaj Pulsar currently offers below varieties the Bajaj Pulsar Bikes in India.

Bajaj Pulsar 135cc Bajaj Pulsar 150cc Bajaj Pulsar 180cc

Bajaj Pulsar 200cc Bajaj Pulsar 220cc

MARKETING MIX(4p’s)

PRODUCT MIX :

There are various segments which Bajaj auto is trying to serve. It is trying to target lower level segment with Bajaj platina (100Cc) & bajaj discover which targets the middle level segment customers. Apart from this the premium segment is served by bajaj pulsar(200cc) and bajaj avenger

PRICE MIX :

ECONOMY SEGMENT (100ccsegment): This segment is served by bajaj platina (100cc) and bajaj ct100.The showroom price of platina is around Rs 35000.

Premium segment (125cc-200cc): This segment is served by bajaj pulsar (150cc,180cc, 200cc),discover.The price of discover is around Rs 58000.

PROMOTION MIX

PAN INDIA PRESENCE: BAJAJ auto has got showrooms evenly spread all over India . It also sells its premium segment bikes through probiking showrooms owned by company

Promotional strategies Adopted :The largest maker of premium bikes in the country, which currently sells only one 100cc bike, is already working on a plan to launch another low-cost bike, the biggest motorcycle segment in the country, said two vendors who supply auto parts to Bajaj Auto.

PLACE MIX

Punjab is divided in many cities and villages

4A’s in Rural AreaEach Company is making their way to Rural India. Most of them have studied the market and Analyzed the things over there and ready to fight at Rural India The marketing is always have the difference in Urban and rural, which makes the companies to think over the Marketing mix. Marketing mix is such an element in rural market which gives the sense to think of marketing activities. This 4A model is similar to the 4P model of Marketing mix, the difference it shows is main streamline and Rural Market. 4A perceived to be more customer oriented. The 4A's are Affordability, Availability, Awareness, and Acceptability.

1. Affordability: Here Affordability does not mean that cheaper products should me made and marketed, the meaning is to reach the customer by satisfying their needs. The designing of the product should match the needs of the customer. The Customer should not think that they cannot buy it, that means it should be in their buying capacity. The income earned in rural markets is from different ways , so by keeping this in mind most of the companies should design the product in such a way that it reaches the customer.

2. Availability: The greatest problem in the rural market is to reach the customer or retailer. Its the logistics way to make the product available there . Once it reaches the retailers shelf then there will not be any problem. This is because there will be lesser number of brands available at market and the Influence or image/ Relationship of the retailer makes the difference. The companies should work out to reach the customer in time. Most of the products are promoted well but by the time it reaches the customer it gets late. So reaching the market should be considered.

3. Awareness: The Awareness program should be in such a manner that it should reach the customers mindset. The main way of reaching the customer is through the commercials on media like TV, Radio and Outdoor . The awareness programs should be conducted at the area ( Junction) where the village heads meet or in other way the meeting place at the villages. The awareness program should be in such a way that it should contain some message to the audience, there should be some concern for them and their place. The promotional activities should be good in the local language.

Apart from this there are some things which the company should think of, such as Colour of the product, Packaging , logo and slogan so on. This should be in such a way that by looking at the product only the customer should feel that they can go for that , and they should be in such a position to differentiate the product form the copy cat one.

4. Acceptability: The most important theme of Marketing Mix is Acceptability. The customer should think that they can buy the product by putting an extra money on that. They should feel that the product is designed as per their needs and it should deliver a great solution to the customer. They should think that the product gives some value to them , and it should serve the purpose what they are planning to buy for. The customer should feel the comfort with the product and there should not be any hesitation to go for it.

So, by these four components of Marketing mix the company can reach the rural market. The companies which have worked it well they have done their best in the rural market. The companies like LG and HUL have changed the dynamics of rural market. So it is important for the companies to think on their marketing mix and make a competitive analysis to go for the market .

References

http://en.wikipedia.org/wiki/Bajaj_Auto

www.trueknowledge.com/q/ population_of_punjab _in_2011

Rural marketing Pradeep kashyap and Siddhartha Raut

www.itrademarket.com/.../aki-bajaj-pulsar-suzuki-thunder-tvs-piaggio-yb9a-bs.htm -

www.infibeam.com/static/ bajaj - pulsar .html