COMPANY REVIEW BAJAJ VS YAHAMA
ARUN KUMAR MISHRA2T304
SSIM KOMPALLY
Overview
• Founded in 1926 by JamnaLal Bajaj.• Present CEO is Rajiv Bajaj .• Headquarter is at Pune• Bajaj is India's second largest motorcycle maker, smaller than Honda
Motorcycle Scooter India, but larger than TVS Motor Co. Ltd.• Bajaj Auto, is ranked as the world’s fourth largest two- and three- wheeler
manufacturer.• The company is well known for their R&D, product development, process
engineering and low-cost manufacturing skills• The Company has 3 plants in Chakan (Pune), Waluj (near Aurangabad) and
Pantnagar (Uttaranchal). The oldest plant at Akurdi (Pune) now houses the R&D centre Ahead.
• Bajaj Auto makes and exports automobiles scooters, motorcycles and the auto rickshaw.
• In 1991 & 1992 – overall sales of two wheelers declined by 15% & 8% respectively because of a recession in the Indian two wheeler market
• The scooter segment was the largest sub-segment in the two wheeler market with 42% share (in terms of unit sales) followed by motorcycles (37%) & mopeds (21%)
• Motorcycles were preferred to scooters in the rural areas because of poor road conditions
• Demographic changes – Increasing proportion of younger people in the overall population
• After 2009 Scooter contributed 14% , moped 4.5%, electric 2 wheeler 0.5% & Motorcycle has 81% market share
Market Share
Product Protofolio
• Pulsar 200 NS• Pulsar 220• Pulsar 180• Pulsar 150• Pulsar 135 LS• Platina 100• Ninja300• Ninja650R
• Discover 100• Discover 100 M• Discover 100 T• Discover 125 S• Discover 125 ST• New Discover 125• Avenger 220 DTS-i
Characteristics of Internal Organization
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
SWOT Analysis
Strenghth• Extensive R&D focus• High performance products in
150cc categories• High export to domestic sales
ratio• High economies of sale• Legacy of brand name• Highly experienced management• Great finance support network• Product design and
development capabilities
Weakness• Has presence mostly in one
area of market (150cc)• Still not a very established
name in the global market• Centralized paternalistic
management style• Still has no established brand
to match Hero Splendor in commuter segment in spite of introducing several bikes for that segment.
Opportunity• 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.
Threat• Margins getting squeezed
from both the directions (Price as well as Cost)
• TATA Nano and other mini-compact cars have started to become a serious threat to the two-wheeler industry in whole. They seem to have come into existence to replace the two-wheelers.
Customer segmentationSegment 2003/04 Share* 2003/05 Share* 2008/09**
Motorcycle 77.40% 79.70% 80.60%
Scooter 16.70% 15.00% 13.90%
Mopeds 5.90% 5.30% 5.20%
Electric Two-wheeler 0.30%
Performance analysis
G R O W T H R A T E
H i g h
MARKET SHARE Stars
Pulsar 150 and 180cc
Discover Series
Questionmark
XCD 125 Pulsar 200 and 220cc
Blade
L o w
Cash Cows
Platina CT 100
Dogs
Avenger Kristal
High Low
Market Segmentation, Targeting and Positioning
Segmentation BeforePulsarBajaj was just known for its scooter as its various attempts failed to pose a threat to
the Hero Honda’s supremacy. But Bajaj strategically placed Pulsar in the market against the CBZ in the 150cc segment. Pulsar proved to be a land mark in reviving the fate and position of Bajaj thereby posing a threat
to Hero Honda’s rule in Indian market. USP of Pulsar wasn’t its performance but its advertising, targeting & positioning.
Targeting Bajaj did all the right moves by targeting the youth and “He-bike”, and making Pulsar an
inseparable attribute to Males. Pulsar was Bajaj’s firstbike without Kawasaki label on it. The bike’s orientation was towards being a macho and manly bike.
Positioning Bajaj has positioned Pulsar in the “High Style High Price” segment along with Hero Honda
Karizma, Hero Honda CBZ, Royal Enfield Bullet. It also has positioned CT 100 in the “Low Style Low Price” segment along with Hero Honda
Splendor, TVS Star City.
Marketing MixProductProduct variety, DesignFeature,Brand name, Packaging, Services, Warranty,
PriceAffordable priceDiscountsAllowancesPayment periodCredit time
PromotionSales promotionAdvertisingSales forcePublic relation Direct marketing
PlaceChannel coverageLocation InventoryTransport
Distribution Channel: Various players involved in the channel design are:
Manufacturing Plants
• Depots
• Carrying & Forward Agent
• Dealers
• Sub Dealers
Brand Association
• Bajaj Pulsar joined hands with MTV India in 2009 to launch Pulsar MTV Stunt Mania, India’s first ever biking stunt reality show. This association was aimed at the youth market which is the prime focus for the performance biking sector and MTV being Youth Centric was an excellent choice.
Advertisement
• Bajaj is always known for its ads without well-known brand ambassadors which is again a plus point to its cart as it saves a huge cost in terms of brand ambassadors unlike
• Total Expenditure cost for Advertisement year 2012-2013 is Rs 168.23 crore whereas Hero Motocorp spent Rs 238crore in 2012 and 270 crore in year 2011
Rebranded their tagline
Hamara Bajaj to Inspiring Confidence to Distinctly Ahead
Market competitor
• Hero Moto Corp.• Honda• TVS• Yahama• Suzuki• Mahindra• Royal Enfield
Competitor Strength Grid
YAMAHA
• Firstly established in the world in 1960• Entered India in 1982• First model was (RX 100)• Was the first company to promote maximum
segment bike (RD-350),(DOUBLE ENGINE) in India.• Firstly manufactured 2-stroke motorcycles• Founder is Torakusu Yamaha
Yahama product protofolio
Market Share
Mission
• Focus on serving customer where they can build long term relationships by raising their lifestyle through performance excellence, proactive design & innovative technology.
• Their innovative solutions will always exceed the changing needs of their customers and provide value added vehicles.
Vision
• We will establish YAMAHA as the "exclusive & trusted brand" of customers by "creating Kando" (touching their hearts) - the first time and every time with world class products & services delivered by people having "passion for customers".
Swot
SOURCES OF PROMOTION
• T.V. Advertisement• Newspaper Advertisement• Seminars• Events • Local Activity• Uses of their sports bike• Movies
Performance analysis
PRICING OF YAMAHA
• Crux – 34292• Alba (ES) – 40356• Gladiator (SS) – 48528• FZ 16 – 65578• FZ S (Mid-Ship) – 67482• R 15 – 98291• Fazer - 72500
Brand ambassador
• "Revs your Heart"
PRESENT COMPETITORS
CUSTOMER SATISFACTION GRAPH