S&D Group Assignment 1 GRP 1 Bajaj Auto

Sales & Distribution
Group Assignment
----------------------------
Group 1
Avik Poddar: 20BM61K06
M Omprakash: 20BM61K13
Mousumi Sarkar: 20BM61K14

Contents
Executive Summary .............................................................................................................................. 2
Company Profile ................................................................................................................................... 3
1. Bajaj Auto Ltd............................................................................................................................... 4
1.1. Introduction ........................................................................................................................... 4
1.2. Segmentation, Targeting, Positioning in the Marketing strategy of Bajaj Auto ............. 4
1.3. Marketing and Sales Strategy .............................................................................................. 5
1.4. SWOT Analysis ..................................................................................................................... 6
1.5. Market Share Analysis ......................................................................................................... 7
2. Strategy & Tactics......................................................................................................................... 8
2.1. Strategic Planning (Value proposition & STP) .................................................................. 8
2.2. Marketing Strategy ............................................................................................................... 8
2.2.1. Target Marketing Strategy (Long Term) ................................................................... 9
2.2.2. Marketing Mix Strategy (Short Term) ..................................................................... 10
2.2.2.1. Product/Service Strategy ........................................................................................ 10
2.2.2.2. Price Strategy .......................................................................................................... 10
2.2.2.3. Promotion Strategy ................................................................................................. 11
2.2.2.4. Placement Strategy ................................................................................................. 12
2.2.3. Advertising Strategy ................................................................................................... 12
2.2.4. Personal Selling ........................................................................................................... 12
2.2.5. Direct Marketing ......................................................................................................... 13
2.2.6. Public Relations ........................................................................................................... 13
2.2.7. Sales Promotion ........................................................................................................... 13
3. Analysis & Conclusion ................................................................................................................ 14
3.1. Competitive analysis of the Marketing strategy ............................................................... 14
3.2. Market analysis ................................................................................................................... 14
3.3. Customer analysis ............................................................................................................... 15
3.4. Conclusion ........................................................................................................................... 16
References ............................................................................................................................................ 17
Sales and Distribution Group 1 Bajaj Auto Ltd. - Salesforce strategy and tactics
Executive Summary
In this assignment we will study Bajaj Auto Ltd. as a company and try to establish a salesforce
strategy as mentioned in the case.
With the basic understanding that Sales Management is closely related and in ways
interdependent with financial health of the company, we start our study of the company by
having a look at their annual report.
It is also the annual report which gives us an overall idea of the recent products of the company
and how they are being placed.
Next up, we focus in understanding the company and its products better by doing STP and
SWOT analysis.
Now, a larger market share essentially means increase in revenue, viz. rise in volume of sales.
We look at the various possibilities to find a correct mix of techniques which balances out the
equation, i.e. increase in sales is greater than the expenses incurred in the process thus
increasing the net profit in the process.
Holistically, for revenue to increase at least one of these must be materialized. More the
merrier.
1. Increase in market share corresponds to more customers in a way
2. Another way is as increase in average transactional volume
3. More frequent transactions from customers (repeat customers)
We must also keep in mind that too much of increase in sales expense will cut short the net
profit even if there is considerable increase in sales.
• Sales – Cost of Sales = Gross Margin
• Gross Margin – Expense = Net Profit
The above set of equations can serve as our anchor.
Company Profile
Bajaj Auto Ltd. happens to be a public limited company since 30th April 2007. “Mumbai-Pune
Road, Akurdi, Pune-411035, Maharashtra” houses their registered office.
Bajaj Auto enjoys the perks of being listed in both “the Bombay Stock Exchange (BSE) as well
as on the National Stock Exchange (NSE)”. 26 May 2008 marked the start Baja Autos journey
in the Indian financial market.
Based on the distribution of the revenues earned by Bajaj Auto, the company is classified into
the Two & three wheelers industry. The main product/service of the company, which is the
product/service from which it earns maximum revenue is Motorcycles.
Bajaj Auto ranks 1st in the Two & three wheelers industry in terms of sales revenues in the
year 2019-20.
Bajaj Auto is a major player in the two-wheeler and three-wheeler industry with revenues of
“Rs.30,082.48 crore for FY ended 31 March 2020 with a balance sheet size of Rs.24,985.94
crore”. The company boasts net fixed assets worth Rs.1645.12 crore.
Bajaj Auto is known for being profitable over the last decade. It demonstrates profitability both
“at the operating level as well as the net level”. Bajaj Auto Ltd. has made operating profit worth
“Rs.4997.27 crore and a net profit of Rs.5107.87 crore in 31 March 2020”.
Operating margin for the FY ended 31 March 2020 was 16.6 per cent and the company reported
a net margin of 16 per cent.
Bajaj Auto is known for being low leveraged. As a magnus auto manufacturer it demonstrates
a moderately low debt to equity ratio of 0.006. Total borrowing of the company reportedly
stands at Rs.125.59 crore.
P.S. Note: All the company profile information has been collected from CMIE
1. Bajaj Auto Ltd
1.1. Introduction
Bajaj Auto Ltd. is one of the key players in the two-wheeler industry, well-received across
landscapes “world’s 3rd largest manufacturer of motorcycles and the largest manufacturer of
three-wheelers”. It is also one of the preferred distributors of automobiles such as motorcycles,
commercial vehicles etc. and its accessories. The products are sold in India as well as various
other global markets, more than 70 countries globally.
The mode of competition is changing, so is the world. Much as Bajaj needs to compete with
close substitutes in the two-wheeler and three-wheeler industry, they must also protect their
market share from the ensuing invasion of low-price small 4 wheelers. Also, tremendous
competition from other players in the market re surfacing in terms of electrical cycles. To hold
its position is such a challenging job in the market environment and it requires innovative
strategies and deep understanding of consumer’s demands.
1.2. Segmentation, Targeting, Positioning in the Marketing strategy of Bajaj

Auto
For a magnus entity like Bajaj Auto no one single strategy suffices. This a mixture that
essentially balances things out needs to be followed. Demographic, Psychographic, Geographic
and Behaviouristic segmentation strategy can be used Bajaj Auto Ltd. because the distribution
of this product is very important.
The company can also use differentiating targeting strategy so that they can be competitively
ahead of its competitors. We can target the customer group with the distinctive, specific
features of what we offer. We should position its offerings as a fast and technically advanced
automobile manufacturer so that it can use the user’s benefit and value-added positioning
strategy.
The best approach is to have faith in primary data while doing a research on customer
preferences in a particular region. It is based on this business research Bajaj can formulate a
road map.
Given below is a suggestive feedback form which could be used as a baseline in understanding
response of the customer.
Factor High Medium Low Not at all

Price
Quality
Brand Name
Variety of services
Salespeople
Customer Service
Special Offers
Promotional Campaign
Packaging
Convenience of Use
Convenience of Purchase
Location
Guarantees
Store/Office Decor
Payment Terms
Other
Though this does not guarantee an increase in sales, it surely gets you ahead of the curve in
understanding the customers needs better and serving them proactively.
Bajaj Auto products are mostly revolving around the age group 18-35. Their unique selling
proposition lies in the fact that they manufacture products which are affordable.
Hence with the target set for young middleclass crowd, the products must be positioned with
an appeal of personification as a household member, a utility vehicle which offers a sense of
style as well as performance, at the same time being fuel efficient.
1.3. Marketing and Sales Strategy

The overall strategy at regional level should focus on a proper SWOT analysis. This comes in
the light of the fact that at a regional level, we have our limitations in terms of setting up
pricing strategies and extending value propositions.
1.4. SWOT Analysis
Strength Weakness
• Bajaj has an extensive range of • The decision not to re-enter into the scooter
products that allows to cater to a market affects Bajaj Auto to lose out on a huge
wide range of customers. The market.
company delivers sustainable • Labour issues damage Bajaj’s image,
business growth. reputation. Besides it has an adverse impact on
• The company maintains a smooth the production.
supply chain and has dealers all over • Bajaj has neither entered other markets nor
in India. expanded internationally, hence it is not
• They are the “winners in the Auto recognised as a global brand even after
Two Wheelers category by the producing in high volume. It is just mainly an
International Advertising Indian market player.
Association as part of the IndIAA
Awards (2019) – Advertising
campaign ‘Bajaj Auto - The World's
Favourite Indian”’1
• The company has leading market
share 64% in three wheeler segment
in FY 20-21.2
Opportunities Threats
• High growth in Motorcycle • Highly competitive 2 wheeler market. Top
manufacturing market. brands are fighting to capture the market.
• Growth in three wheeler • The bank interest rate growths are high which
manufacturing Industry. By 2026, affect the consumer’s decision whether to buy
alternative fuel driven three wheeler or not.
will consume 82.48% market due to • The environmental regulations in India are
high pricing of petrol, rising updating, so companies have to constantly
environment concerns and modify their products and it impacts in their
3
government restrictions. financial figures.
• By continuously launching new
vehicles encapsulate new
technologies in its portfolio to
strengthen it.
1
https://www.bajajauto.com/about-us/awards-achievements
2
https://www.statista.com/statistics/878704/india-market-share-in-the-domestic-three-wheeler-market-by-
company/
3
https://www.globenewswire.com/news-release/2020/12/24/2150344/0/en/India-Three-Wheeler-Market-
Report-FY2016-FY2027-Market-was-Valued-USD-636-57-Million-in-FY2020.html
1.5. Market Share Analysis
Our purpose here is to understand the barriers to entry that are existing in the targeted markets.
We must acknowledge formidable competitors before we run the race.
TOP COMPANIES FY 19-20 FY 20-21

ROYAL ENFIELD 3.5% 4.2%
SUZUKI 3.5% 2.0%
INDIA YAMAHA MOTOR 3.4% 3.2%
BAJAJ AUTO 12.2% 14.4%
TVS 14.2% 14.4%
HMSI 26.8% 19.9%
HERO MOTOCORP 36.0% 41.6%
Data Source: Auto Economic Times
Bajaj Auto gained 2 percent market share in Q1 FY21.
TVS in this case is the closest competitor to Bajaj Auto. TVS competes with Bajaj in the two-
wheeler segment.
In the last decade, TVS has proven their credibility to the Indian consumer in segments that
once used to be Bajaj’s pride. TVS Apache bettered Bajaj Pulsar. TVS iQuBE entered in the
market in the same segment as Bajaj Chetak offering electric scooter and the rivalry had been
pretty strong.
2. Strategy & Tactics
At regional level our focus should be more on the short-term strategic moves to gain in on
some positive results. Once the path is laid and some positive results are showing up on the
charts further tactics can be applied to smoothen the process.
2.1. Strategic Planning (Value proposition & STP)

The overall value proposition of a product is thought of more as a global approach.
The value proposition at regional level could be
bundled services. For example, on purchase of
a new motorcycle from Bajaj, a year of free of
cost servicing including body wash can be
offered.
The other proposition could be regarding
exchange of vehicles, this will be meant to
attract more repeat customers, encouraging
them to upgrade their motorcycle. Say, a 10%
bonus on exchange of existing Bajaj vehicle
could be offered.
It must be understood that direct alteration to source: https://www.omniconvert.com/what-is/uvp-
unique-value-proposition/
product pricing cannot be done at regional level
and only offers and discounts can be extended to the customer.
2.2. Marketing Strategy

Various marketing strategies have been followed by Bajaj like low priced scooter, their simple
and attractive advertisement without any brand ambassadors, having a tag line “Hamara Bajaj”
followed by “Buland Bharat ki buland tasveer”.
The company even kept their brand names (e.g.: Chetak) based on Maharana Pratap horse just
to convey the feeling of “Desi”.
In addition to these proven techniques, Bajaj needs to strategize more on the demographic and
behaviouristic traits based on the current product lines.
Below is the sales strategy which is developed from the marketing strategy.
2.2.1. Target Marketing Strategy (Long Term)

Sales Goals / Marketing Strategy Sales and Distribution Tactics / Action plans
Objectives Strategy
Achieve a larger Target the Youth • Based on analysis • Prepare comparative
market share Segment (18-35) of target market report on close
than our nearest (size and scope), get substitutes and take a
competitor your salesforce stand on why Bajaj
ready, hire fresh product is better.
talent • Setup campaigns and
• Look out for close promotional events in
competitors, offer collaboration with
trainings to sales schools/colleges and
personnel to deliver offices.
more comparative • In the sports bike
demonstration. segment arrange for
• Youth centric friendly race and
advertisement incentivise Bajaj
campaign. product owners with
(Make it an free entry, discounts on
inseparable attribute accessory purchases
to Males) made at the event.
Target women and • Mileage oriented • Simple affordable,
middle aged working advertisement light weight scooter
class strategy (fuel models easy to use for
efficiency) women and elders.
• Long term service (can be used as a
partnership secondary vehicle)
• Affordable service
Target existing • Exchange bonus • Promotional offer to
potential customer promotional encourage the user to
advertisement buy
2.2.2. Marketing Mix Strategy (Short Term)

2.2.2.1. Product/Service Strategy
Sales Goals / Marketing Strategy Sales and Distribution Tactics / Action plans
Objectives Strategy
Achieve a larger To enter in to Electric • Identify the Empowering the employee
market share bike segment potential customer, about product , incentivise
than our nearest identify the the salesforce for the
competitor segment of additional sales
customer who can
initially invest more
and have
environment
concern
• To Penetrate • Passenger segment • Value added relation
existing segment with age group of can be maintained,
• especially Scooty 20-40 years personal selling to be
and entry-level and B2B customers done by sales force to
motorcycle models who use for explain the advantages.
100cc bike business purpose • Understanding the
segment where customers expectation.
competition is
very strong and
also sports bike
segment.
Upgradation programs • Existing Bajaj Auto • Setting up
customers who look advertisements for
for newer products upgrade programs with
can be the target exchange discounts.
2.2.2.2. Price Strategy

Objective Marketing Strategy Sales & Distribution Tactics/Action Plan
Strategy
Increase market Maintain affordable Competitive pricing Give a trade discount to
share compared pricing should be taken into B2B customers ,and
to competition quantity discount
account in aggressive especially delivery
markets partners.
Affordable service Offer customers from Price bundling can be done
package different territory as service as complete
customised service package.
packages that suit the
needs.
Maintain competitive • Counter the effect • Pricing strategy should
Pricing of its rival be competitive by
companies. nature.
• Enter new market. • Keep prices at
• Maintain loyal and reasonable rates to
happy customer attract new customers.
base. • Gift vouchers and
• Adopt the value Discount coupons
added pricing along with lucky draw
strategy. events.
• There should be a
balance in pricing of
based on the territories
which are targetted.
2.2.2.3. Promotion Strategy

Strategy
Increase market Penetration of product Identify the mini Personal selling
share compared through dealers in dealership in rural area
to competition rural areas with minimum
investment
Promotion of Bajaj sponsoring youth fests, Technical selling/Personal
brand to youth stunt shows in colleges selling
and racing academy
Promotional Activities • Visibility of the • Create very dynamic,
Bajaj Group and its trendy, stylist, vibrant
products. and creative and
• Create awareness improved
about its products. advertisement that
emphasize on the
happy Indian family.
• Announce schemes
and periodic discounts.
2.2.2.4. Placement Strategy
Strategy
Increase market Ensure the availability Prepare launch in Setup Kiosks and Field
share compared in remote areas untouched districts demonstration camps
to competition Place: Organized and • Extensive • Set up various
efficient distribution distribution manufacturing plants
policy network. in different localities.
• Distribute the It will help to
products and manufacture the
various genuine products easily in low
parts at an easy and in terms of labour and
regular pace. raw materials.
• Build a network of far-
reaching dealers and
service centers.
2.2.3. Advertising Strategy

Strategy
Increase market Target oriented Reach the youth and Trail rides for Himalayan
share compared advertising for new Millennials through tours. Technical Selling,
to competition customer strong advertising Telemarketing
campaigns
Reach target customer Newspaper, Social
through the good use of Networks, Billboards,
promotional activities Local TV channels,
and advertising Youtube
campaigns
2.2.4. Personal Selling

Strategy
Increase market Classify market Decide relationship Trainings and workshop
share compared segment and strategy depending on To build buyer’s
to competition individual customer type of customer confidence in
(transitional, value
added, collaborative)
Pursue the customer to Build relationship with Motivate sales force by
create demand customer through incentives and career
caring about their needs growth
2.2.5. Direct Marketing

Strategy
Increase market Direct marketing to Placing small stalls near Offering affordable EMI
share compared target customer govt. & private offices schemes, explaining the
to competition ,directly peruse benefits of personal
customer for purchase vehicle for commutation
during ongoing pandemic
2.2.6. Public Relations

Strategy
Increase market • Influence Target • Bajaj name has • Consider digital
share compared Markets been about faith and platforms to revamp
to competition • Build a more value. the Bajaj brand among
reliable image • The same needs to the youth.
be restored in the • Build the trust
youth. promoting on
accessories that add to
the statement of Bajaj
2.2.7. Sales Promotion

Strategy
Increase market • Setup regular • Incentivise and train • Setup kiosks in
share compared promotional the team to be more collaboration with
to competition events in target energetic in petrol pumps.
areas. converting probable • Engage with customers
• Setup team to go customers to both existing and
mobile and do complete purchase. probable to get
road shows. • Give the team feedback and give
• Setup Contests liberty to decide on freebies. In addition
that involve Bajaj flexi discounts offer them vouchers
branding to make according to with a validity date on
customer profile.
customer aware of • Equip salesforce visiting Bajaj store and
facts with Bajaj branded making any purchase.
• Distribute Bajaj goods.
branded freebies • Make use of state of
which help reach the art gadgets to
the brand name to make presentations
the household
Setup free servicing Offer free check ups Provide free check up of
kiosks motorcycle and provide
discount voucher for any
repair and service done at
Bajaj authorised service
center.
3. Analysis & Conclusion

3.1. Competitive analysis of the Marketing strategy
With the help of broad product range in every business vertical, Bajaj Auto Ltd. has been
competing with another automobile company in the Indian market4.
• In Bajaj Motorcycle it has sub-brands – “Dominar 400, Pulsar, Avenger, Vikrant, Discover,
Platina and CT 100”.
• In KTM it has – “KTM Enduro, KTM Duke, KTM Sports Tourer, KTM freeride, KTM
Supersport” etc.
3.2. Market analysis
Date Source: BAL-Annual-Report-2019-20
4
https://www.marketing91.com/marketing-strategy-bajaj-auto/
Bajaj Auto’s sales was decreased by 18.2%. The Company’s share in the domestic motorcycles
market decreased by 18.5%, which was still higher than its share in FY2016, FY2017 and
FY2018, whereas in the export market, growth is increased by 10.2% which is still less than
FY2019, FY 2018.
As per the market analysis, Bajaj should enter in powerful E-Scooter segment that can be an
opportunity to explore huge untapped market. Gearless scooter is starting up, so rebranding of
Legendary Brand Chetak and put in into gearless segment would be an appropriate step. A
famous, young Brand ambassador instead of no brand might help.
Introduce diff brands (like Pulsar against Hero Honda CBZ) and placed in the market against
the completive brand in the 150 segment and higher segment (Platina for 100cc and Discover
in the 125 cc category). Targeting “Low style low price” segment and positioned CT100 in that
segment against Hero Honda Splender.
Investment in Battery operated two wheelers and three wheelers will help to reduce pollution
which will drive the segment of shared micro-mobility in the future. That coupled with the
expansion of Mass Rapid Transport System like Metro in large cities will further boost the
demand for flexible last-mile connectivity.
3.3. Customer analysis

Focusing on “Twin Brand Strategy” to capture the commute segment and sports segment (For
example: Ninja) will help to grow in the domestic motorcycle market. Hence Launching new
models under strong brands will attract customer to look into their premium features. Bajaj can
take leverage of popularity of KTM amongst the enthusiast urban youth. At the same time Bajaj
can also focus on the less travelled road of electric motorcycles and make a name in that
segment.
Customers are clearly able to associate brands with positions in the current motorbike market.
For example: Honda = Quality, Hero = Mileage, Yamaha = Style and Bajaj = Power. Hence,
they are more focusing on purchasing power bikes.
3.4. Conclusion
To summarize, at a regional perspective increase in sales volume can be achieved in
methodically formulating all the observations and analysis into an implementable solution.
First, a close look at all the territories under the region in concern needs to be visited. The
urban territories need to be addressed differently in comparison to the rural ones.
The urban youth should be targeted with sporty products like KTM. The office population
can be more interested in cruisers like the Avenger. The rural crowd on the other end will be
more interested in fuel efficiency and affordability and thus CT100 can be the poster-boy.
Similarly, kiosks need to have a décor which is attractive and has amenities like food
beverage, there is an anchor who conducts quiz and contests to indulge the crowd.
Salesforce members need to be polite in their behaviour and at the same time should be
confident in their knowledge about the brand and its products.
Personal selling techniques should be applied as and when feasible and customers should be
informed of upcoming events to keep them involved in the brands latest offerings.
On every new purchase, baselines should be set to enrich customer experience. Consumer
awareness tips on utilizing the vehicle better and some advice on self-maintenance should be
provided. Gift vouchers should be offered on after sales services and discount on accessory
purchase from the store.
Existing customers who show interest in upgradation should be invited to Bajaj Auto events.
At promotional campaigns, consumers who are using products from competitors should be
taken care of intensively and explained how the latest Bajaj product is better.
Customers should be encouraged on using genuine Bajaj parts during replacement, repair and
servicing.
On the promotional front, banners, posters, newspapers and magazines should be used to
advertise the brand. Social Network handles must be used to continuously promote as well as
preach about the brand value and upcoming products. Regular events at Target territories
should focus on audience. Tailor made campaigns should be planned specific to the crowd.
For example, on Women’s Day the theme should entirely be based on women empowerment
and how Bajaj focuses on delivering the best quality product like customised accessories for
women drivers. Facilities of one call road assistance, mobile repairing services that are
stationed in all territories. Services related to women safety like pickup and drop facility in-
case of breakdown.
Witty advertisements following guerrilla tactics should be designed which carry a sense of
humour and at the same time provides evidence on Bajaj’s dominion over the competitor’s
product.
In rural areas a major part of the event should focus on financial assistance and explain the
customers on how Bajaj products are low on maintenance and are fuel efficient thus incurring
lower costs in the longer run.
Focus on upgradation plans should be given even with new customers so that they know, as
and when a better product comes, they can come back to the store and go for the new product
in exchange of the old one.
Finally, a brands value is dependent on the consumers perception of the overall process right
from the first call by the salesforce team member to the delivery executive who hands over
the keys. Hence, all these executives should be trained in unique Bajaj values which gives a
sense of uniformity in terms of the Bajaj experience and makes the brand perceivably more
reliable.
References
− https://www.marketing91.com/marketing-strategy-bajaj-auto/
− https://www.mbaskool.com/marketing-mix/products/17038-bajaj-auto.html
− https://www.marketing91.com/swot-analysis-bajaj-auto-2/
− https://auto.economictimes.indiatimes.com/news/two-wheelers/motorcycles/etauto-
exclusive-what-are-the-two-wheeler-sale-trends-in-fy21-so-far/77295386
− https://www.bajajauto.com/investors/annual-reports

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Sales & Distribution

Mousumi Sarkar: 20BM61K14

1.2. Segmentation, Targeting, Positioning in the Marketing strategy of Bajaj

Factor High Medium Low Not at all

1.3. Marketing and Sales Strategy

TOP COMPANIES FY 19-20 FY 20-21

Bajaj Auto gained 2 percent market share in Q1 FY21.

2.1. Strategic Planning (Value proposition & STP)

2.2. Marketing Strategy

2.2.1. Target Marketing Strategy (Long Term)

2.2.2. Marketing Mix Strategy (Short Term)

2.2.2.2. Price Strategy

2.2.2.3. Promotion Strategy

2.2.3. Advertising Strategy

2.2.4. Personal Selling

2.2.5. Direct Marketing

2.2.6. Public Relations

2.2.7. Sales Promotion

3. Analysis & Conclusion

3.2. Market analysis

Date Source: BAL-Annual-Report-2019-20

3.3. Customer analysis

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