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An Industrial visit report On BAJAJ AUTO LTD On Marketing mix.
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DECLARATION I undersigned Mr.Hirani Dilip K the student of Third Year B.B.A. hereby declare that the project work presented in this report is my own work and has been carried out by the Guidance of Lr.Ni Lr.Nirav rav s Joshi Joshi of Geet Geetan anja jali li coll colleg egee of comp comput uter er scie scienc ncee & commerce(B.B.A.) This work has not been submitted to any other University on any other Examination.
Date: Place:
Signature (Hirani Dilip K.)
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ACKNOWLEDGEMENT It is really a pleasure for me to prepare a report at this stage, it is my sincere they to thank all those who helped me directly or indirectly during my training process. First of all I would specially like to thanks our Lr.Nirav.S.Joshi for my training in Rajarshi Auto Deals Pvt. to know about Marketing Strategies of Bajaj Auto Ltd. After I would like to thank Executive to Rajarshi Auto Deals Pvt. Pvt. Ltd. Ltd. Rajk Rajkot ot,, for for gran granti ting ng me perm permis issi sion on for for my prac practi tica call trai traini ning ng.. I am very very than thankf kful ul to Mr. Shwe Shweta tall head head of serv servic icee department for his valuable guidance, co-operation and sparing his valuable time also. At last but not lease I like to thanks my friends & family members for their encouragement during the training period.
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PREFACE Industrial activity plays an important role in overall economic development of the developing country like India. Industrial Visit is a part of practical training contained in B.B.A. course. B.B. B.B.A. A. is a speci pecial al cou ourrse of mana anagem gement, ent, wher wheree the management knowledge is given during the year and which is more related with the practicability of it in the managerial field. So, I am very please to get a chance to visit Rajarshi Auto Deals Pvt. Ltd. and made the report on new marketing strategies of Bajaj Auto Ltd.
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THE COMPANY The Bajaj Group can into existence during the turmoil and the head heady y euph euphor oria ia of Indi India’ a’ss free freedo dom m stru strugg ggle le.. Jama Jamanl nlal al Baja Bajaj, j, foun founde derr of the the Baja Bajajj Grou Group, p, was was a conf confid idan ante te and and disc discip iple le of Maha Mahatm tmaa Gand Gandhi hi,, and and was was deep deeply ly invo involv lved ed in the the effo effort rt for for freedom. The integrity, dedication, resourcefulness and determination to succeed which are characteristic of the company today, are often traced back to its birth during those long days of relentless devotion to a common cause. Kamalnayan, the eldest son of Jamanlal Bajaj, succeeded his father in 1942, at the age of twenty-seven. Putting the Nation before business, he devoted himself to the latter only after India achieved independence in 1947. But when he did so, he put his heart and soul into it. Within a short while, he not only consolidated the Group, but also diversified into various manufacturing activities, elevating the Group to the status it enjoys till this day. Rahul Bajaj today heads the Group. He has been the chief Executive Officer of Bajaj since 1968 and is recognised as one of the most outstanding business leaders in India. As dynamic and ambitious as his illustrious predecessors, he has been recognised and international forums.
Baja Bajajj is curr curren entl tly y Indi India’ a’ss larg larges estt two two and and thre threee-wh whee eele ler r manufacturer and one of the biggest in the world. Bajaj has long left behind its annual turnover of Rs. 72 million (1968), to currently register an impressive figure of Rs. 42.16 billion (US$ 936 million).
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Management Profile Bajaj Auto Ltd. is ably managed by a team of seasoned professionals:
Rahul Bajaj J. Sridhar R. A. Jain Madhur Bajaj D. S. Mehta Rajiv Bajaj Sanjiv Bajaj Ranjit Gupta N. H. Hingorani P. B. Menon R. L. Ravichandran C. P. Tripathi Niladri Banerjee Ramesh Bhargava K. P. Chander Kevin D’Sa R. V. Govind Arvind Gupta R. S. Gupta N. V. Iyer Anil G. Khopkar G. B. Laddha Shrikant Marathe N. G. Maengane K. P. Nair C. K. Rao V. M. Rao P. K. Rath S. R. Rage D.K. Sharma
Managing Director Company Secretary Executive Director Vice Chairman Wholetime Director President Vice President (Finance) Vice President (Insurance) Vice President (Materials) Vice President (Projects) Vice President (Business Development & Marketing) Vice President (Waluj) General Manager (Corporate Affairs), Delhi General Manager (International marketing) General Manager (Machine Tool Division), Waluj General Manager (Finance) General Manager (Product Engineering) General Manager (Manufacturing Engineering) General Manager (Motorcycle Project Team), Waluj General Manager (Engineering Support) General Manager (Management Information Service) General Manager (Finance) General Manager (R & D) General Manager (Motorcycle Division), Waluj General Manager (Quality Assurance) General Manager (Marketing – Three Wheelers) General Manager (Akurdi) General Manager (Chakan) General Manager (Maharashtra Scooters Ltd.) General Manager (Production), Akurdi
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HISTORY, GROWTH & DEVELOPMENT OF RAJARSHI AUTO DEAL’S PVT. LTD. The foundation of Rajarshi Auto Deal’s Pvt. Ltd. was in 1998 in Rajkot. The Rajarshi Auto Deal’s Pvt. Ltd. is a partnership firm. The main partner’s are 1. 2. 3. 4.
Mr. Vipulbhai Kothari. Mr. Shieetalbhai Kothari. Mr. Jeetubhai Patel. Mr. Ajitsinh Jadeja.
Rajarshi Auto Deal’s Pvt. Ltd. was started in 1998 with 3 crore Rs. of investment approximately. Now Rajarshi Auto Deal’s Pvt. Ltd. value and goodwill is increase. As a dealer of Bajaj Auto Ltd. Rajarshi Auto Deal’s Pvt. Ltd. has been working in Rajkot science four year with good selling performance. “History” is the main principle of Rajarshi Auto Deal’s Pvt. Ltd. and they don’t charge even a single rupee more than with the liking and performance of the customer. Today the Bajaj Auto Ltd. offer a unbeatable range of motorcycles to suit possible need of customer by featuring the latest technology of manufacturers of the highest quality standard. The Rajarshi Auto Deal’s Pvt. Ltd. believes in discipline, faith hardwork, success, and Rajarshi Auto Deal’s Pvt. Ltd. already proved their believer.
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PROJECT AT A GLANCE Name of the Unit Address of the Unit Phone No Registered Office
: Rajarshi Auto Deal’s Pvt. Ltd. : Rajarshi Auto Deal’s Pvt. Ltd. : (0281) 374496, 375730, 375731 : Rajarshi Auto Deal’s Pvt. Ltd., Nr. Malaviya College Name of the Managing : Vipulbhai Kothari Director Name of Marketing : Chandrakant R. Manager Name of the Finance : Tarvlata Makwana Manager Form of Organization : Dealership Years of Establishment : 1998 Nature of Project : Consumer Durable Dealership of : Bajaj Auto Ltd. Head Office : Bajaj Auto Ltd., Akurdi, Pune, Maharashtra, India. Ph.: 7472851 Fax: 7407392
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INTRODUCTION Marketing mix is the bridge that diminishes the gap between the product and consumes without marketing all production activities would be fulfill. Therefore more production is not enough. It is equally important to make the consumer aware of the goods produced. After the consumer importance to distribute the goods to all prospective consumers. But the marketing activities do not here. The view and ideas of the consumers are taken into and the product is to be changed according to the consumer’s needs. Thus the sum total of all the activities undertaken to satisfy the consumers wants and demands constitutes the activities of marketing. Marketing is comprehensive firm and it includes all resources and a set of activities necessary to direct and facilities to direct the flow of goods and services from product to utility consumer in the process of distributing. In other words marketing comprises of all the activities involved in the determination and satisfaction of consumer needs at a profit. Thus marketing encompasses all activities of exchange conducted by producers and middleman in commerce for the purpose of satisfying consumer demand. In marketing planning, marketing information is used to assess the situation specific marketing targets are selected in the form market segments for each segment of market a combination of a number of devices or types of marketing activities that are
Coordinated into a single management programs to reach a particular target or market segment is formulated. The combination of these marketing methods or devices is known as the marketing mix.
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Thus marketing mix is the set of marketing goals that the firm used to pursue its marketing objectives in mix goals can be classified as under down heads. There are. 1. 2. 3. 4. 5.
Product. Price. Promotion. Place. People.
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These are popularly known as the five P's of marketing mix.
PRICE MIX Pricing Obj Pricing Policy Price List Discount Allowance Credit Terms
PRODUCT MIX Product Variety Product Line Design Features Brand Name Packaging Services Warranties
MARKETING Marketing STRATEGY Strategy (MIX) (Mix)
PROMOTION MIX Sales Promotion Advertising Sales Force Personal Selling
PLACE MIX Channel of Distribution Physical Distribution
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PRODUCT MIX “ A product is a bundle of physical services and symbolic particulars expected to yield satisfaction or benefit to the buyer.” - Philip Kotler
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INTRODUCTION Product is the pivot around which all the marketing selectivities revolve without product, all the marketing activities become useless. People satisfy their needs and wants with products. Product can be defined proudly to cover anything that can be offered brings to someone to satisfy a need or want normally, the ward product brings to mind a physical object such as on automobile, a television or a soft drink. We normally use the expression “product and services” but in thinking about products, their importance lies not so much in owning them as in using them to satisfy our wants. Manufacturers get into a lot trouble by paying more attention to their physical product then to the services produced by these products. The marketer’s job is to sell the benefits or services built into physical products rather than just describe their physical features. Product mix is the set of all the products line and items that a particular server offers for sale to buyer the product mix covers the following points.
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(A) Product Variety Product variety include the types of product which a company produces. They may before the same consumers or for different consumers. In other words, the different products may satisfy similar needs or different needs for e.g. A company manufacturing soap for both these product satisfy the same needs e.g. cleaning etc. But if the same company starts manufacturing their oils than this product has a totally different segment of consumer. There fore the company will have to all write its marketing strategy in order to reach this particular segment of consumers. The product variety (line of Bajaj Auto Ltd. are as follows.) Scooter Bikes 1. 2. 3. 4. 5. 6. 7. 8.
Super M-80 Major M-80 Major 4-Strock Spirit Saffire Legend NXT 2 Chetek 4-Strock Wave
1. 2. 3. 4. 5. 6. 7. 8. 9.
Boxer Caliber Croma Aspire Caliber 115 Pulsar Wind 125 Eliminator Discover C.T.100
(B) Design Reflect the outlook of the product. Design reflects the features of the product which make it different from other products. Designing a product is a specialist job. Various aspects of the product are to be kept in mind while designing a product. These may include product differentiation, features, characteristics, performance, durability, reparability, style etc.
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Design is the interacting force with all the features as its parameters. The design has also to keep in mind the capital allocated to designing from the companies point of view, a well designed product would be pleasant to look at easy to open, install learn now to use repair and despose etc. The designer has to take all target market and weights the different benefits and costs.
(C) Features The term features refers to those inherent characteristics of the product which makes it different and unique from the other products. In other words features means any special point differentiating that particular from other product. Features are characteristics that supplement the products basic functioning most products can be offered with varying features. The starting points is stripped down or base version by adding extra features each feature has a change of capturing the dance of additional buyers. Thus features are the biggest competitive goals in the hands of companies, features make one company’s product supplier to other companies producing similar product.
(D) Brand Name Brand Name refers to that name through which the productsof that company are recognized.BrandNamecan be a name, term, sign symbol or design or a combination of them, intended to identify the goods or services of one seller or a group of sellers and to differentiate them from those of competitors.
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Brand Name are the most important of any product because it is the identification of the product. Brand Names may be the company’s name if sold, or it may be a different as the better known the brand name, the higher will be the sales. A powerful brand name is said to have consumer franchise. This is evident when a sufficient number of customer demand that brand and refuse a substitute even if the price is some what lower. Today, branch name is such a strong force that hardly anything goes understand.
(E) After Sales Service Services are activities, benefits or satisfaction that are offered after sale. In other words a service is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Ferms Hiltprovide high quality services undoubtfully our perform their less services. For e.g. the manufacturers could make an arrangement with distributors and dealers to provide these services. Thus the customers durable market is highly competitive in terms of after sales services. It sometimes so happens that the company increase a high cost burden in terms of after sales services. But the company which provides a better after sales service inspite of its cost burden, benefits in the long run. Thus many companies prefer to incur high cost rather than loosing their potential customers.
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(F) Warranties Product warranties are an important promotional tool especially as consumers because more quality sensitive warranty means authority or justification that the thing sold is fit for use and the producer accepts reproducibility for repairs over a period of time. The company can promote sales by adding a free warranty offer or service contract. Instead of changing for the warranty or service contract it offers it free or at a reduced price if the customers buy that product. Thus, warranty forms an important part of customer durables customers always except a longer period of warranty. But the cost burden on the company is very high and the company has to perform cost benefit analysis while deciding the period and scope of warranty only that policy should be selected where the benefits cut run the costs. But it is very difficult to calculate and maintain balance by cost and benefits. The warranty period of Bajaj Auto Ltd. is one year, or two year depending a Bajaj Auto Ltd. is policy. The company replaces all the parts and movements period is over the retailer.
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PRICE MIX “ Price is the only element of marketing mix that produces revenue, all the other elements i.e. product, place and promotion products costs.” - Philip Kotler
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INTRODUCTION Price is the only element of marketing mix that produces revenue. All the other elements that is product, place and production procedure etc. Pricing composition is the first problem facing the marketing executive. All profit organizations and many non profit organization set their prices and product and service. Though most of history price were set by buyers and sellers negotiating with each other sellers would also for higher prices then they expect to receive and the buyers would offer less than their expect to pay. Through bargaining they would arrive at an acceptable price. Setting one price for all buyers is relatively a modern idea. Inspite of the high degree of importance given to the price mix and the fact that the price mix is only revenue earning element, most companies do not handle pricing well price is set independent of rest of the marketing mix rather than as an interstice element of market positioning strategic and price is not valid enough for different products items and market segments. Companies handle pricing in a variety of ways. In small companies prices are often set by the top management rather than by the marketing or sales department.
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THE PRICING OBJECTIVE BAJAJ AUTO LTD.
1.
Pricing Stability: -
Bajaj Auto Ltd. is one of the companies in scooter market in India which call for long term interest of the business and aim at price stability. This attempt is not to let price fall low during deprecation and rise too high during boom.
2.
To Incharge Market Share: -
The main objective of Bajaj Auto Ltd. is to get maximum share in scooter market. So they have set their price at definite level by which they can increase their market share.
Pricing Policy Pricing Policy is the standing answer of the firm to requiring problem of pricing. It provides guidelines to marketing manger to solve appropriate pricing decision. If competition is mainly on price basis then each marketer generally prices their product at the same time level their competition. The Prices of bikes, mopeds etc, are set up by the Bajaj Auto Ltd. itself and the margin of dealers commission is added in the company price list. The main reason behind the cheapeners of Bajaj Auto Ltd. is most of the parts of the moped and bikes manufacture by company itself.
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We can see in the following chart that the Octroy, CST, etc. should be paid according to the rules and regulation of the government. Particulars
Amt. (Rs.)
Factory Price Add: Forwarding Handling and Loading Charges. = Total Add. Central Excise Duty (25%) Add. Freight Charges = Net Dealers Price Add. : Communication = Retail Price Add. M. R. C. Entry Tax Add. Gujarat Sales Tax (4%) = EX-showroom Price Add: RTO Tax Add: Insurance & accessories = On the Road Price
Discounts The term discounts means a deduction from the nominal valve or price or amt. of the product. In other words, discount is the amount, which is taken off the full price of the product. Most companies modify their basic price to reward the customers from such acts as early permanent, volume purchases and off-season buying. This price adjustment are called discounts. Discount is a very popular tool in the hands of top level management to increase their sales. The companies make efficient use of this tool to expand their market. Discount being a reduction in the original price of the product are relatively cheap from of attracting new customers and sustaining old owned.
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Credit Terms Credit Terms refers to the rules and regulations in the form of an agreement between the producer and the customers in relation to the credit facility which the producer gives to their customers. In other words credit terms are the terms and conditions which are mutually agreed upon by the customers and producers and relates to the benefits which each will provide to other party. Depending on the policy of the management of the company, credit terms may be remains the same from consumer to consumer or may services from consumer to consumer. It also depends on how good relations are between the producer and the consumer. Credit terms may also change when the policy of the company changes over a period of time. It is a basic fact that each company has to give a short or long terms of credit facilities if it wants to survive in the market and in the cut throat competition. If company does not give credit facilities, the customer turns to its competitor’s product in costlier. Thus credit facility is must for all companies in order to survive. The credit terms of Bajaj Auto Ltd. are fairly straightforward. The credit period allowed to the saler is 60 days. The company also takes a deposit from the distributors against the dealerships allocated to them.
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PROMOTION MIX “Promotion compasses all the marketing mix whose major role communication.”
tools in the is persuasive
- Philip Kotler
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INTRODUCTION Promotion has three specific purposes. It communicates marketing information to consumers, users and reseller. It is not enough to communicate ideas. Promotion persuades and convinces the buyer and influences his/her behavior to take the desired action. Promotional efforts act as powerful tools of competition providing the cutting edge of its entire marketing programme. Broadly speaking promotion means to push forward or to advance an idea in such a way as gain as its acceptance and approve. Promotion is any communicative, activity whose main objective is to move forward a product, service or idea in any channel of distribution. It is an effort by a marketer to inform and persuade buyers to accept, recommended or use the article, service or communication with an additional element of persuasion. The promotional activity always attempts to affect ideas, products services etc. is the heart of promotion Modern marketing causes for more than developing a good product priding attractively and making it a accusable to target customers company must also communicate with their present and potential customers. Promotion includes the following:
Advertising (A) Introduction: The American Marketing Association has defined advertisement thus “Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. Advertising is paid communication presentation and promotion because the advertiser has to pay for the space of time in which his advertisements appears. Advertisements appears in the recognized media, such as news Papers, magazines, radio, television, cinema film, outdoor, hoarding and posters, directs man and transit.
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It is paid for by a sponsor (seller) who wants to communicate about his product or service to his customer. The sponsor wants to persuade and induce the readers, viewers or listeners to take some action viz. To buy the advertised product so that the advertising should have max sales. From the above discussion we can say that each and every company whether public or private has to advertise for its survival. Bajaj Auto Ltd. has also undertaken the advertising activate.
OBJECTIVE The first step in developing advertising program is to see the advertising objectives. According to Bajaj Auto Ltd. those objectives must flow from decisions on the target markets, market positioning and marketing mix. The Bajaj Auto Ltd. has undertaken the activity of advertising with a view to attain the following main objectives. 1.To enhance its sales. 2.To inform the market about their new product. 3.To explain the uses of product. 4.To inform about the price changes. 5.To maintain brand loyalty. 6.To maintain regular customer.
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1.
To give information about a new Product: One of the most important objectives of advertising is to inform potential. Customers about a new product or service if people know nothing about product how can then buy? 2. To Create Demands: The primary object of advertising is to create demand for a particular product. To inform people about a people is not enough. They must also be motivated to bug it by informing them the features attributes and uses of the product M.A. technical wags. 3. To support sales man’s efforts: Salesman deals directly with customers and advertising renders great help to them. When the customers come to know. Characteristics quality and various brand of a product through advertising. 4. To Maintain Demand: The objective of advertising is not only to create demand for a product, but also to maintain it at current level. 5. To Reduce Costs: The main object of advertising is to reduce percentage cost of production and distribution. Advertisement leads to increase in sales, hence production expands and cost of production, falls.
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ADVERTISEMENT COPY Advertising copy is prepared by an export copywriter. It includes the headlines name and address of the advertise as well as the main text of the massage. Advertising copy is the creative business which demands lot of imaginations foresight well designed advertising copy uses four basic steps in selling they are A.I.D.A. i.e. 1. Attraction attention 2. Developing interest 3. Arousing desire 4. Generation action Advertising copy should be simple easily understandable attractive and persuasive language there after it can give action from consumer side. So far as company is concerned advertising copy is prepared by concerned advertising agency. There are two parts an advertising copy 1. Advertising theme or appeal. 2. Advertising layout.
ADVERTISING APPEAL
THEME
OR
The theme or the appeal is the central idea around which the advertisement is created. It is called the unique sales proposition. It represents a specific point of view of idea to stress in advertisement. It is the heart and sound of advertising copy or message. There are various appeal used in advertisement to sale product or service the selection of theme is usually made by means of consumer and research.
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For different products of BAJAJ there are appeal.
Product
Appeal
Spirit
Comfort
CT100 Discover Chetak wonder gear Pulsar DTS - i Eliminator
Economy Performance Easy in operation Style Prestige
ADVERTISING LAYOUT Advertising layout deals with proper and attractive and physical arrangement for the best presentation of the message or sales communication. A visual part of the advertising has the following elements. 1. HEADLINES Headlines must put forth the main theme in appeal in few words. It should be clear, simple, short and attractive to held attention of the prospect. It should respect the contents of advertisement and guides the prospect properly. It may show a promise or reward and include prompt action. It should be printed in prominent manner. 2.
ILLUSTRATIONS Illustrations provide line drawings, cartoon, pictures, symbols and photography for attracting attention, creating interest and arousing desire. Illustration is the best and the most effective way of communication of ideas. “BAJAJ AUTO LTD.” Uses visual demonstration in television. 3. COLORS It is an important ingredient of an advertisement. Color has great attention attracting power judicious blending of color can
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evoke emotional reaction, which cannot be created by more description.
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“BAJAJ AUTO LTD.” Background color is “white”. 4.
SLOGAN A slogan should be fundamental sales argument for a product or service, expressed in a few words . It should be original and remember able. It should contain the brand name of the company. “ BAJAJ AUTO LTD’s”. slogan is
“Inspiring Confidence” ADVERTISEMENT MEDIA There are many types of advertisements media. They are as follows. 1.Mural Advertisement 2.Press Advertisement 3.Film Advertisement 4.Radio Advertisement 5.Television Advertisement 6.Direct Mail 7.Point of purchase Advertising 8.Advertising Specialties Following advertisement media is used by “BAJAJ AUTO LTD”. 1.NEWSPAPERS Bajaj Auto Ltd. has selected newspaper as its media of advertising because it is the most effective media. It has general and wide appeal. They are flexible. Periodical change in size and content is also easy. At local level they are using.
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GUJARAT SMACHAR and SANDESH and at the national level they use different newspaper in different cities. Like in Mumbai, Ahmedabad and Lucknow give advertisement in Times of India. In Delhi, Madras, Pune, Baroda, Calcutta, Banglore, Hydrabad has given advertisement in Hindustan Times and Indian Express.
2. MAGAZINES Magazines are considered to be the most effective media. Tough its colored attractiveness, Magazines have longer life greater retentive value as well as reference value further they are using manages of advertisement because selective appeal is possible through it, the magazines have most circulation form. Bajaj Auto Ltd. is also interests in giving advertisement in magazines. They use different magazine for bikes and mopeds like. Sport Star, Cricket, Samarat Sports World, Chitralekha, and Abhiyan etc. 3. TELEVISION Bajaj Auto Ltd. is using television as important media. They advertise their product on all most all channels in very popular program so that they can attract more customers.
Television advertisement can appeal through ear as well as eye can be demonstrated with explanation. It reaches the guidance almost like personnel salesmanship. Thus it is really wonderful mean of mass communication for creative market. Bajaj Auto Ltd. has adopted Poster, Boards and Electric Display as a media of outdoor advertising. They are giving importance to this media because it has long life general wide appeal. It can also attract number of peoples.
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3. PUBLICITY
Publicity is a non personnel stimulation of demand for a project service or a business unit by placing commercial significant news about it in a publication or obtaining favorable presentation of it on radio, T. V. on maganizine that is not paid by the media sponsor. For Bajaj Auto Ltd. publicity as one of the part of the promotion mix which can’t be ignored in any case. Till today many articles regarding the company is published in ‘THE ECONOMIC TIMES’ etc. Through publicity of its company Bajaj Auto Ltd. has created own goodwill in market.
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SALES PROMOTION (A) INTRODUCTION: This is one of the constituent of promotion news. Which is concerned with extra efforts for increasing sales. Today, sales promotion is necessary and not merely a luxury or fashion. It is not expenditure; it is an investment, which can pay rich dividend. This is one of the constituents or promotion-mix, which is concerned with extra efforts for increasing sales.
Sales promotion is referred to activities other than personal salesmanship, advertising and publicity. Which stimulate dealer effectiveness and consumer purchasing. In a broader sense, the terms refer to almost all activities of marketing oganisation. Proper selection of sales man. Payment of reasonable salaries to them, provision of their attempts to improve relations with distributors and consumers, advertising etc. is the activities all of which essential aim at increasing sales. Sales promotion is defined by the American Marketing Association to mean, “those marketing activities other than selling advertising and publicity that stimulate consumer purchasing and dealer effectiveness, such as display shoes and expositions, demonstration and various non-recurrent selling efforts not in the ordinary routine”. Sales Promotion Includes Tools For (i)
TRADE PROMOTIONS: [E.g. buying allowance, Free Goods machinery, Allowance, Cooperative advertising, Push money dealers Sales contents]
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(ii)
SALES FORCE PROMOTION: [E.g. Bonus, Sales retailers]
In short sales promotion is a bridge or connection between advertising and personnel selling.
Bajaj Auto Ltd. spends too much on business promotion. These tools are used for such purpose as gathering business leads, increasing and recording customers. The Bajaj Auto Ltd. takes part in exhibition held up or organized by some club or other association. Thus the cost of the tool is very less but their value is very too much high. Large number of people attend this fair and come in contact with the product of the Company and its uses.
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PLACE MIX “Marketing channels can be viewed as sets of inter dependent organizations involved in the process of marketing product or service available for use or consumption.”
- Philip Kotler
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INTRODUCTION More production of commodity is not enough but is must reach to the right man at the right time and at the right price. In marketing point of view place mist strategy is the second important element of the marketing mix. Place mix has two sub divisions. 1. CHANNEL OF DISTRIBUTION: Channel of Distribution is the best of marketing institution participating in the marketing activities involved in the movement or the flow of goods or services from the primary producers to the ultimate consumers. In the field of marketing the channel of distribution indicates roots on Parth way through which goods and services flow or move from producer to consumers. 2. PHYSICAL DISTRIBUTION: Physical Distribution consists of those marketing activities related to the physical handing of goods such as protective packaging, order processing, inventory management, transportation and warehousing.
If you build a better mousetrap the world will beat at your door.’ But too often the marketing practitioner finds that the customers cuts the delivery of that better mouse trap at the right place at the right time and at the right quantity. The physical distribution function like other half of marketing is responsible for completing the marketing transaction.
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SELECTION OF CHANNEL The problem of selecting the best distribution channel is the most complex one. There are many factors affecting the channel choice as like natures of the product marketing environment etc. These all are the very important factors or determinants of the distribution channel. Every marketer has to consider all these factors at the time of selection the distribution channel while selecting the channel member. Bajaj Auto Ltd. takes the following factors into consideration. 1. FINANCIAL CONDITION: Before appointing a dealer or agent or retailers Bajaj Auto Ltd. finds out the financial condition. If the financial condition is sound then Bajaj Auto Ltd. looks other aspects also. 2. LOCATION: Location is the most important for wide market coverage Bajaj Auto Ltd. showroom are mostly located nearer to the competitor’s showroom and in the centre of the city. 3. REPUTATION IN THE MARKET: This is considered as the “GOODWILL” of any dealer agent or retailer of Bajaj Auto Ltd. and also Bajaj Auto Ltd. takes care to select the candidate who has some reputation in market. 4. PROVISION FOR AFTER SALES SERVICE: If dealer, retailer or wholesaler is ready to give after sales service to the customer, the Bajaj Auto Ltd. takes particular decision for selection. Not only that Bajaj Auto Ltd. has offered the after sales service on its vehicle.
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NUMBER OF CHANNEL LEVEL Distribute means to distribute, spread out or disseminate. In the field of marketing channel of distribution indicate routes or pathways through which goods and services flow or from producers to consumers. Thus the channel of distribution flow of: 1. 2. 3. 4. 5. 6.
Information. Marketing Communication (Promotion). Material. Man Power. Capital Equipment. Negotiation and transaction.
Bajaj Auto Ltd. has good channel of distribution to meet the customers demand easily of Bajaj Auto Ltd. has also started to appoint the dealer in the rural area to cover the whole nation.
In the Rajkot Rajarshi Auto Deal’s Pvt. Ltd. and Automotive are two prime or authorized dealer of the Bajaj Auto Ltd.
MARKET COVERAGE Once the general channel decide it has to be used to increase in the share of market. Market coverage is an important activity while the company is passing from the period of stability. The Bajaj Auto Ltd. has also created its good position in the corporate market. It is number one in moped and scooter and now a days in Bikes Bajaj Auto Ltd. gets good part in the total market share.
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TRANSPORTATION Markets need to be concerned with their companies’ transportation decision. Transportation choice will affect the pricing of the product on time delivery performance and the condition of the Bajaj Auto Ltd. which they arrive all of which affect customer satisfaction. Transportation is cause of problems of physical distribution. It is sometimes caused the guardian knock of physical distribution management.
WARE HOUSING Every company has to store its goods while they can’t be sold immediately storage. Function is necessary, because production and consumption cycle is rarely matched. The company must decide on a desirable numbers of stocking locations. More stocking location means that goods can be delivered to customers more quickly. The number of stocking location must strike a balance between customers’ service level and distribution costs. So far as Bajaj Auto Ltd. is concerned it is not the practice of the company to provide warehousing facility to the dealers. Hence, to make arrangement of go downs for the storage of two wheelers. In Rajkot Rajarshi Auto Deal’s Pvt. Ltd. has a very big warehouse.
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RESEARCH METHODOLOGY
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CONTENTS Sr.N o
Particulars
1.
Introduction
2.
Research Objective
3.
Research Methodology
4.
Limitation Of Study
Page No
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INTRODUCTION Market research is an essential tool in the marketing planning process and places a vital part in the business decision making process. Its application is effective in all industrial, commercial and consumer market. More importantly, the results that can be achieved from the market research process are the real objective of the business plan. They are the most significant element of the marketing mix to influence business decision.
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RESEARCH OBJECTIVE As a student my objective of preparing this research report is not only to submit the report to the saurashtra university but also to get knowledge in practical field of Bajaj Auto Ltd. With special reference to consumer satisfaction. The real aim of caring out the survey was to get idea about the following, 1. The main objective is to know consumer satisfaction towards Bajaj motorbikes. 2. To know which model is more popular among customer. 3. To know which factor motivate the customer while purchasing the particular bike. 4. To know which of the competitive bike the customer has taken into consideration. 5. To know the expectation of consumer from the company.
SCOPE OF STUDY: To know the consumer satisfaction towards Bajaj Auto Ltd i have selected 50 consumers for survey which includes students, businessmen, professionals etc.
RESEARCH METHODOLOGY Methodology means the method used by the researcher for a systematic study of any particular problem or subject. For the preparation of this report, I have used primary data but so far as this research report is concerned, it has been collected through questionnaire and discussion method, which are the most common but appropriate method for getting desired information.
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TABLE = 1 SR.NO. 1. 2. 3. 4. 5. 6. 7. 8. 9.
MODEL CT 100 WIND 125 DISCOVER CALIBER PULSAR ELIMINATOR CHETAK SUPER ASPIRE
NO OF RESPONSES PERCENTAGE(%) 27 54% 3 06% 6 12% 1 02% 11 22% 1 02% 1 02% 50 100%
50
1
40
2 3
30
4 5
20
6 10
7 8
0 MODEL
9 3-D Column 10
Moreover the moral of dealers can be enhanced through advertising hereby securing enthusiastic distribution of product. It also promote bright image of the company in the society.
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TABLE = 2 SR.NO PERIOD OF NO OFPERCENTAGE(%) PURCHASE RESPONSES 1. Before 6 months 5 10% 2. Before 1 year 5 10% 3. Before 1 ½ year 7 14% 4. Before 2 years 25 50% 5. Before 5 years 8 16% 50 100% 50 45 40 35 30 25 20 15 10 5 0
1 2 3 4 5 PERIOD OF PURCHASE
PERCENTAGE(%)
FINDINGS: Out of 50 consumers surveyed it is found that 16% of the consumer had purchased 5 year’s ago while 50% of them purchased 2 year’s ago while 14% of them purchased before 1 ½ year while 10% of them purchased before 1 year and 6 months so from that we can easily say that BAJAJ AUTO LTD. Is very popular among the customer’s from last so many year’s.
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TABLE = 3 TYPES OF SR.NO FACTORS 1. Reasonable Rate 2. Fuel Efficiency 3. Brand Image 4. Re-sale Value
NO OF RESPONSES PERCENTAGE(%) 4 8% 20 40% 16 32% 10 50%
20 15 1
10
2 3
5
4
0 TYPES OF FACTORS
PERCENTAGE(%)
FINDINGS: From the above chart we can say that 40% of the consumer purchased BAJAJ AUTO LTD’S bike for fuel efficiency while 32% purchased it strong brand image while 20% buy it for it’s re-sale value and 8% buy it for reasonable price. So we can say that BAJAJ AUTO LTD’S consumers are more conscious about fuel efficiency and brand image.
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TABLE = 4 SR.NO 1. 2. 3. 4. 5. 6. 7. 8. 9.
OTHER BIKES Victor Boxer Caliber Pulsar Enticer Eliminator Libero Max Other
NO OF RESPONSES PERCENTAGE(%) 3 6% 11 22% 2 4% 10 20% 3 6% 2 4% 19 39%
20 1 2
15
3 4
10
5 6
5
7 0 OTHER BIKES
PERCENTAGE(%)
8 9
FINDINGS From the above diagram 38% of the consumers had shown the interest that they are interested in purchasing other bike but it was surprised to note that they were the bikes of BAJAJ AUTO LTD only for e.g. if one possess Eliminator then he is interested to purchase Pulsar.22% of them were considering Boxer while 20% of them were interested in Victor, 6% of them were considering Enticer and & 4% of them have considered Libero. So that we can say that main competitor’s of BAJAJ AUTO LTD is Victor(that is considering he price factor) and Libero (by considering status factor).
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TABLE = 5 SR.NO Satisfied with Current No Product responses 1. Yes 42 2. No 8 45 40 35 30 25 20 15 10 5 0 Satisfied with Current Product
of Percentage(%) 84% 16%
1 2 3-D Column 3
Percentage(%)
FINDINGS From the above diagram we came to know that 84% of consumers are satisfied with their current bike and 16% of them are not satisfied with their bikes. So that we can say that maximum number of consumer are satisfied. The satisfaction and dissatisfaction ratio approximately 5:1.
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TABLE = 6 SR.NO Benefit Promotional 1. Yes 2. No
of
No. Responses 15 35
Of Percentage(%) 30% 70%
35 30 25 20
1
15
2
10
3-D Column 3
5 0 Benefit of Promotional
Percentage(%)
FINDINGS From the above diagram we can say that only 30% of them are taking the benefit of promotional scheme while 70% of them are not taking the benefit of promotional scheme from that we can say that maximum no. of consumer are unaware about promotional scheme so that they are not able to take the benefit of promotional scheme. So it is advised that company should give more advertisement regarding promotional scheme.
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TABLE = 7 SR.NO Want to change your No. motorbike Responses 1. Yes 18 2. No 32
OF Percentage(%) 36% 64%
35 30 25 20 15
1
10
2 3-D Column 3
5 0 Want to change your motorbike
Percentage(%)
FINDINGS From the above diagram we can say that 36% of the consumer want to change their motorbike and 64% of the consumers are not want to change their bike. From the conversation with these 36% mass (who want to change their bike) come to know some reasons they are as follows: By considering the time period they want to change your bike Some of the consumers are attracted towards new models.
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TABLE = 8 SR.NO Expectation From the Company 1. New Models 2. Mileage 3. Promotional Scheme 4. Better after sales service 18 16 14 12 10 8 6 4 2 0 Expectation From the Company
No Responses 17 10 11 12
Of Percentage(%) 34% 20% 22% 24%
1 2 3 4 Percentage(%)
FINDINGS From the above diagram we can say that 34% of the consumers are expected from company to offer new models as such consumers having an esthetic appeal while 24% of them expect after sales service, 22% expect more promotional scheme and 20% of them expect better mileage.
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LINITATION OF STUDY Every research report is to always perfect every research is conducted keeping in mind certain constrains and restrictions. As a student, I tried my best relevant information regarding the research but, than too, I found following limitations of these research. They are: 1. Study is restricted to Rajkot city only. 2. Sample size of 50 may not be sufficient for making perfect evaluation of total population. 3. Keeping in the mind the psychological constrains, the questionnaire includes limited questions only.
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CONCLUSION
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CONCLUSION From the analysis of a BAJAJ AUTO LTD. It can be concluded that the future of the company is bright. Bajaj auto ltd. Was the first company to get such a great response from consumers for bikes before Bajaj bikes were available but they were not expected by consumers so Bajaj auto brought a revolution in the market of bike. Bajaj auto ltd is having a good market share, consumers are brand loyal and with the regular introduction of new model. Company is getting more credit in the market.
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SUGGESTIONS
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SUGGESTION On the basis of comprehensive research of the Bajaj Auto Ltd. under gone at Rajarshi Auto Deal’s Pvt. Ltd. it can be concluded that the position of the Bajaj Auto Ltd. in the corporate field is very strong. The well experienced efficient and industrious sales force is the strength of it. The value of the Bajaj Auto Ltd. is more than the other vehicles manufactures. From the survey analysis is found that there are some areas where they need improvements that are as follows: 1. The company spends less on promotion activity and consumer are expecting more promotional benefit so company need to offer more promotional benefit to the consumer . 2.
In spite of regular introduction of new models by the company, consumers are still expecting better bikes with better re-sale value and less maintenance. So company should introduce new model by considering this factor.
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SWOT ANALYSIS
