BAJAJ VS YAHAMA

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