A Study On

Perception of Customers Towards Dealers and Sub dealers Behavior of BAJAJ AUTOMOBILE, Hyderabad

Studied By Pratyush Pandey M3 40

(2008-10)

CONTENTS
PARTICULARS PAGE NO.

CHAPTER I INTRODUCTION
1.1Abstract 1.2 Introduction 1.3 Objectives 1.4 Significance of the study 1.5 Scope of the study 1.6 Literature review 1.7 Scheme of Dessertation

6-12

CHAPTER II ORGANIZATIONAL PROFILE

2.1 Industry Profile 2.2 Company Profile 2.3 Departmental Profile

13-36

CHAPTER III Methodology

3.1 Method of Data Collection 3.2 Primary Data 3.3 Research Instrument

37-38

3.4 Area of Sampling

3.5 Sample Size 3.6 Sampling Procedure 3.7 Limitations

CHAPTER IV
4.1 Data Analysis 4.2 Data Interprtations

39-50

CHAPTER V
5.1 Findings 5.2 Suggestions

51-55

CHAPTER VI
6.1 Bibliography 6.2 Annexure :- Questionnaire

56-58

TABLE
Table 1.1

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ACKNOWLEDGEMENTS
It gives me immense gratification to place on records my profound gratitude and sincere appreciation to each and every one of those who have helped me in this endeavor. I extend my sincere thanks to Mr. Jagan Marapatla, ASM Bajaj Auto Ltd. Regional Office, Secunderabad for his valuable suggestion to initiate the study. .I am ineffably indebted to Asst.Prof. Shahaida my faculty guide for this Summer Internship Program, for her most valuable regular guidance without which my project would not have been completed. Any omission in this brief acknowledgement does not mean lack of gratitude.

Date: Place:

(Signature) Pratyush Pandey

DECLARATION
I, Pratyush Pandey declare that this project titled Study on - Perception of Customers towards Dealers and Sub Dealers Behavior of BAJAJ AUTOMOBILE, Hyderabad has been completed by me at Bajaj regional Office at Secunderabad under the guidance of Prof. Shahaida , faculty, Marketing of Siva Sivani Institute of Management. I further declare that this is my original work as part of my academic course.

PLACE: SIGNATURE DATE: (Pratyush Pandey)

CHAPTER-1 Introduction
In todays globalising economy competition is getting more and fiercer. That means it becomes more difficult for products and services to differentiate themselves from other offerings than ever before. Not only is the number of competitive offerings rising due to globalisation of production, sourcing, logistics and access to information. Delivering superior value to customers is an ongoing concern of management in many business markets of today. In this situation the development of a strong relationship between customers and a company could likely prove to be a significant opportunity for competitive advantage. This relationship is not longer based on features like price and quality alone. Today it is more the perceived experience a customer makes in his various interactions with a company (e.g. how fast, easy, efficient and reliable the process is) that can make or break the relationship. Problems during a single transaction can damage a so far favourable customer attitude. We all know that in this competitive world customers are the superior ones to guide the market, so they have the power to make anyone No.1 in the market through their perception towards companies. A customer perception is his or her ultimate experience towards any product or service performed.

Regarding my IIP objective i.e. Customer perception towards Dealers and Sub-Dealers Bajaj Auto its a very well known fact that Bajaj lost its position of market leader and number one position to Hero Honda from the past 5 years but from the year 2007 it came to a pathetic position of 4th in India. Recent data of 2008 shows that (according to Business Line, Tuesday Feb 2009)

Bajaj Auto 2 wheeler sales: 119,215 units, down 33% from 177,249 in December 2007( 2&3 wheeler)

Hero Honda = 215,931 two wheelers, 56% market share.( 1st position) Honda Motorcycles and scooters India: 94,082 two wheelers (2nd

position)

TVS Motor total two wheeler sales: 89,285 units, down 7% from 97,576 in December 2007 ( 3rd position) Only two wheeler sales was 69,419, 17% market share (4th position)

Bajaj regional office Hyderabad wanted to know that is it due to failure of dealers in performing their job because for the customers, dealers are the image of the company. So for that reason I started my research work on the behalf of Bajaj Regional Office. I had visited the showrooms as a customer and judge their services towards customers according to given company parameters i.e. 1) 2) Appeal of the showroom

Reception and treatment of customer Information and convincing factor Involvement and information gathering Product quotation-

3) 4) 5)

Objectives of the study:Prepare a detail report on the given main dealers and sub dealers of Bajaj Automobile in Hyderabad to:1) Analyze the performance, maintenance, responsiveness of dealers towards their job as well as towards customer.
2) Customers attitude towards dealers services. 3) To know the loopholes in the service patterns.

4) To know that whether Dealers are performing according to the Company standards or not?

Significance of the study:As Bajaj automobile right now is in 4Th position in India, now they are loosing to competition in A.P, so what is the possible reason for it? Is it due to the failure of dealers job to perform well and to satisfy the customer need, demand or problem? Scope of the Study In my study I did a research regarding the perception of the customers towards Bajaj dealers behavior in Hyderabad region during the period 9thMarch to 5th May 2009, it will provide information to the company about the strong and weak areas of dealers. In this study I have interacted with the customers and dealers, apart from this, study provides useful inputs and data regarding customer group of Bajaj.

Literature review
8

During my IIP period I have read some articles regarding customer perception and its importance for the company. Actually I didnt found much related to the dealers point of view. Following are the reviews which I read:1) According to the Ccochran, (2008) Customer perceptions are what indicate whether customer has achieved satisfaction or not. In other words, they represent stepping stones along a continuum. Perceptions accumulate over time and gradually equate to either satisfaction or dissatisfaction. Our job is to understand and act on these perceptions so the final result is customer satisfaction. We should always try to delight them by our behavior and way of servicing in the market, in the showroom. Dealers are the real company for the common customer, so its their prime duty to deliver their job in the fullest manner to make them comfortable and happy.

2) According to Dagmar Recklies ,( 2009) :Customers are the king of the market, their ultimate experience of any service or product will make it the number one in the market. In this tough and cut throat competition delivering superior value to customers is an ongoing concern of management in many business markets of today. The dealers or the owners of the business should try to make them happy by providing them the finest quality of the services and to establish a good image in the eyes of the customer so that their perception towards them should always be in their minds.

3)

According to Bill Gorman,(2009) :9

Todays market is not the dealers or the sellers market; it is absolutely the buyers market. According to customer preference and perception everybody is producing the products, framing the strategies and implement the plans. The customers are ready to pay high values now its the responsibility of the dealers and sellers that they should provide good things in an excellent way. To retain and survive in the market the dealers should adhere to company standards of giving the services to the customers. They should try to think like a customer, regarding their need, desire from the dealers and sellers. Many dealers are now paying more attention to customers satisfaction. This is the key to a big part of the success for some dealers. Customers want to do business with a dealership with a winning attitude. Before someone parts with their money, they want to meet a good salesperson, not just a clerk. The customer also wants to feel that who ever takes their money is going to be here tomorrow if they have a question. Thats why the dealers should appoint those persons who are ready to devote their heart and soul to the business. They should be trained well about the job, importance of the customers, and the knowledge of the product. The author has given some quotation:Be a street fighter, its a dog, eat dog world out there. That doesnt mean you have to pick on your competition, or beat them up. It means you have to be the hustler, be creative. It is a buyers market out there. You must bend over backwards to cater to your Customer and be as thorough about it as you can be.

4) According to the article published in consumer reports (2009):10

Automakers spend billions of dollars to promote their vehicles and build brand awareness. Yet, marketing alone does not shape consumer perception without a clear connection to the vehicles in the showroom. The product and its information should be very clear to the customer; the vehicle should be user friendly, environment friendly, stylish and innovative. Its the dealers task to inform the customers about the features and attributes of the product and attract them for the purchasing of the product.

Scheme of Dissertation
11

This study has been carried out to Study the perception of customers towards behavior of Bajaj Auto Ltd main dealers and sub dealers. For this market research some areas and dealers of Bajaj have been visited. The research consist of the finding of customers perception towards dealers behavior towards customer with the help of the questionnaire and fifty respondent Introduction: Introduction gives a brief idea about insurance and investment industry, scope of study, significance of study, objectives, hypothesis and literature review part related to insurance and investment. Organization Profile: This part comprises of industry profile and company profile. This part gives a brief idea about current trends in industry and company. This part also gives a brief idea about departmental actual working and hierarchy. Research methodology: This part give an idea about research design, sample size/design and method of data collection. Analysis and Interpretation: This part tells about data analysis, method carried out for data analysis and interpretations from the analysis part. Discussions and Recommendations: This part gives an idea about some inputs to explore some other parts of research for further studies and tells about which part is necessary for more focused research. Bibliography and Annexure: This part comprises of references taken for this study and questionnaire which was framed for this study.

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CHAPTER II ORGANIZATIONAL PROFILE Industry Profile:HISTORY OF TWO WHEELER AUTOMOBILE IN INDIA

Motorcycles have made their debut around the 1950s; this section looks at the two wheelers which have over the years caught the imagination of country. It was in the year 1954 that the Indian government ordered for total number of 800 motorcycles to man the Pakistani borders. In came the Bullets which were initially launched in England as a 350cc bike and it was upgraded to 500cc a year or so later. These bikes have remained unaltered, barring some cosmetic changes which have undergone over the years. Thus one can say without much of a doubt that the 1955 Bullet was one of the initial hits of the Indian two-wheeler industry and till today it continues to be a darling of the motorcycle enthusiasts. Enfield Bullet had a close competition with another sturdy bike named Rajdoot; as the bike was strong enough to handle the rough Indian roads. The company had roped in Indian He-man Dharmendra for the promotion of the bike. With more than 1.6 million vehicles on the road the Rajdoot motorcycle was one of the initial hits of the earlier years of two-wheeler history in the country. When heavy motorcycles were the order of the day, a relatively lighter bike had caught on the imagination of the Indian two wheeler user. Ind- Suzukia bike launched by the then TVS Suzuki group was an instant hit; however the bike could not sustain it's initial success due to the high import content in the vehicle .

13

In scooters Bajaj Chetak has been hugely responsible for adding momentum to the transport system of the country, till today it remains one of the most successful brands to have come out of the Bajaj stable. The scooter is named after the horse of legendary Rana Pratap Singh. These sets of two wheels have become a part of the Indian milieu and are often considered a representative of the Indian middle class aspiration. Very few two-wheelers have been able to emulate the success, which Bajaj Chetak has achieved over the years. Similarly LML Motors enjoyed a reasonable success with the launch of LML Select which came with new age technology and improved performance. Today newer models of two-wheeler are entering the market everyday, slowly pushing these names down the memory lane. However names like Chetak, Rajdoot and Bullet will always find a mention in the history of two-wheelers in the country.

Indian motorcycle industry is divided into three segments: ntry level E Executive Premium In the initial phase, the market was predominantly in the executive segment. Later on BJAUT developed the premium segment with their Pulsar range of vehicles. At the same time, BJAUT and TVSL started to focus on entry level segment. This segmentation became much more visible during FY02-08. With lower price points, BJAUT and TVSL stimulated the market and this led to market expansion for the motorcycles. Easy financing accelerated in this process.

14

Entry Level Segment This segment was the major reason behind the growth in the domestic motorcycle market. TVSL was the first one to penetrate this segment with their 'Max' range; however this market was stimulated by BJAUT with 'Boxer'. This segment was then strengthened by 'Platina'. Easy availability of financing and aggressive pricing led to strong growth of this segment till FY07. High defaults in the loan repayment led to exit of many financiers from the segment in 1HFY08 leading to demand contraction. Even for the manufacturers this segment started to become a problem with wafer thin margins. To overcome this, BJAUT started to increasingly focus on development of >100 cc segment. Executive Segment Executive segment is the largest motorcycle segment and this is the stronghold of market leader HH. Competitors have tried to challenge HH in this segment, however all such challenges have fizzled out over time. With higher growth in economy segment, the contribution of this segment had come below 50% in FY08. However over the last threeyears, it has made a strong come back and now accounts for almost 60% of the motorcycle share. Premium Segment This segment was creation of HH with 'CBZ'; however major boost to the segment was given by BJAUT through 'Pulsar' which has dominated the segment. HH has remained a marginal player in this segment and one of the reasons for this is presence of HMSI in this segment. This segment remains a small segment in the Indian market with contribution of around 14% to the motorcycle industry. This is the performance segment and customers pay a

15

premium for the novelty. Hence constant up gradation in the product is a requisite for success in this segment. Post 2000, the Indian two-wheeler industry comprising of motorcycles, scooters and scooterettes opened up tremendously. With a 20% Yearly growth, motorcycles captured almost 80% of the market primarily at the cost of the scooter segment. The scooter segment though has witnessed a revival with the launch of scooterettes aimed at young women and adolescents. The two wheeler market can be segmented into three categories on the basis of price Entry segment (<35000), Executive segment (between 35000 and 50000) and Premium segment (>50000). Motorcycles are now sold as an experience rather than a product. New products are being introduced at a rapid pace and brands are gaining prominence. Thus there is an increased focus on the premium segment which has an increased scope for differentiation. Buyer Power is relatively high with buyers becoming more discerning. Reliability and economy have become more of a hygiene factor. Buyers now demand twowheelers that fit their personality thus increasing the scope for differentiation and branding. Provision of easy financing through EMIs has reduced the price sensitivity to a great extent. This has resulted in higher growth in the 125-150cc segment. High level of branding has also helped revive niche players like Royal Enfield.

16

Supplier Power is low as most suppliers are exclusive and far more diffused than the industry itself. It is further reduced due to the threat of backward integration by the two-wheeler companies. Barriers to entry has reduced with the introduction of Government policies such as reduction in excise duty from 24% to 16% and allowing for 100% FDI. However, the investment required for setting up large distribution channels and service stations can be a major entry barrier. Another significant entry barrier is the brand building required. Thus, initially foreign players set up Joint Ventures with indigenous companies. After establishing their brand they have launched their own line of products. eg. Honda with Hero Group and Yamaha with Escorts.

Threat from Substitutes such as the Tata 1 Lakh car looms large over the twowheeler industry. For the first time, a car has been positioned at a price point that fills the vacuum between a motorcycle and a low-end car such as the Maruti 800. Previously, the price of even a low end car (2.5 3 Lakhs) was too high to attract the customers from the entry and executive two wheeler segment. Since brand loyalty is lower for these segments vis--vis the premium segment, these segments may be threatened by the Tata car. Their buyers will consider the convenience and status associated with owning a car, which is reasonably priced and therefore a viable substitute

Company profile About Bajaj

17

The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance,travel,and,finance. The groups flagship company, Bajaj Auto, is ranked as the worlds fourth largest two- and three- wheeler manufacturer and the Bajaj brand is well-known in over a dozen countries in Europe, Latin America, the US, Asia. Founded in 1926, at the height of India's movement for independence from the British, the group has an illustrious history. The integrity, dedication, resourcefulness and determination to succeed which are characteristic of the group today, are often traced back to its birth during those days of relentless devotion to a common cause. Jamnalal Bajaj, founder of the group, was a close confidant and disciple of Mahatma Gandhi. In fact, Gandhiji had adopted him as his son. This close relationship and his deep involvement in the independence movement did not leave Jamnalal Bajaj with much time to spend on his newly launched business venture. His son, Kamalnayan Bajaj, then 27, took over the reins of business in 1942. He too was close to Gandhiji and it was only after Independence in 1947, that he was able to give his full attention to the business. Kamalnayan Bajaj not only consolidated the group, but also diversified into various manufacturing activities. The present Chairman of the group, Rahul Bajaj, took charge of the business in 1965. Under his leadership, the turnover of the Bajaj Auto the flagship company has gone up from Rs.72 million to Rs.100.76 billion (USD 2.3 billion), its product portfolio has expanded from one to and the brand has found a global market. He is one of Indias most distinguished business leaders and internationally respected for his business acumen and entrepreneurial spirit

Board of Directors
Rahul Bajaj Madhur Bajaj Chairman Vice Chairman
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Rajiv Bajaj Sanjiv Bajaj D.S. Mehta Kantikumar R. Podar Shekhar Bajaj D.J. Balaji Rao J.N. Godrej S.H. Khan Mrs. Suman Kirloskar Naresh Chandra Nanoo Pamnani Manish Kejriwal P Murari Niraj Bajaj Committees of the Board

Managing Director Executive Director Director Director Director Director Director Director Director Director Director Director Director Director

Audit Committee
S.H. Khan D.J. Balaji Rao J.N. Godrej Naresh Chandra Nanoo Pamnani Chairman

Shareholders & Investors Grievance committee

D.J. Balaji Rao J.N. Godrej Naresh Chandra S. H. Khan Chairman

Milestones
2007 September June April February January

Launch of XCD DTS-Si National Launch of 220 cc Pulsar DTS-Fi. Bajaj Auto Commissions New Plant at Pantnagar, Uttarakhand 200 cc Pulsar DTS-i launched Bajaj Kristal DTS-i launched
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April 2005 December June February 2004 October August May January 2003 October October July February

Bajaj Platina launched Bajaj Discover launched Bajaj Avenger DTS-i launched Bajaj Wave DTS-i launched Bajaj Discover DTS-i launched New Bajaj Chetak 4 stroke with Wonder Gear launched Bajaj CT100 Launched Bajaj unveils new brand identity, dons new symbol, logo and brand line Pulsar DTS-i is launched. 107,115 Motorcycles sold in a month. Bajaj Wind 125,The World Bike, is launched in India. Bajaj Auto launched its Caliber115 "Hoodibabaa!" in the executive motorcycle segment.

KEY STEP TOWARDS STARTEGIC PLAN

MISSION: Focus on value based manufacturing Fostering team work & enhancing the capability of the team Continual Improvement
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 Total Elimination of wastes Pollution Free & Safe Environment VISION: To attain World Class Excellency by demonstrating Value Added products to customers OBJECTIVE Baja Auto Limited is to cater the market needs of transportation by providing 2 wheeler and 3 wheeler vehicles. BAL has been producing the catalogue products to cater to the changing market requirements. Based on the customer feedback, improvements are being made continuously in the existing Products. In the process of introducing new products, emission requirements are being taken into consideration and products manufactured are meeting the regulatory Requirements GOAL To catapult Bajaj Auto as the country's largest automobile company.

Brand Values Bajaj live their brand by its values of Learning, Innovation, Perfection, Speed and Transparency. Bajaj will constantly inspire confidence through excitement engineering.

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Learning Learning is how we ensure proactively. It is a value that embraces knowledge as the platform for building well informed, reasoned, and decisive actions.

Innovation Innovation is how they create the future. It is a value that provokes them to reach beyond the obvious in pursuit of that which exceeds the ordinary.

2) Perfection Perfection is how they set new standards. It is a value that exhibits our determination to excel by endeavoring to establish new benchmarks all the time.

Speed Speed is how they convey clear conviction. It is a value that keeps them sharply responsive, mirroring our commitment towards our goals and processes.

Transparency Transparency is how they characterize themselves. It is a value that makes them worthy of credibility through integrity, of trust through sensitivity and of loyalty through interdependence

Plants and Productivity:Akurdi 720,000

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Waluj 1,860,000 Chakan 960,000 Pantnagar (new plant) 510,000 (for year 2007 )

Companys Policy Statement:-

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24

Supply Chain
25

For Bajaj Auto, the supply chain encompasses the process from vendors to the final customers via manufacturing. Therefore, the Companys supply chain involves as much the vendors and the procurement-to-payment logistics, as it does the manufacturing to selling process, or the order to cash system. Given below are some of the key supply chain initiatives of Bajaj Auto.

Vendors
Most of the Companys vendor initiatives, including the Pantnagar operations What needs to be emphasised is that the 16 vendors clustered within the campus of Bajaj Autos Pantnagar plant were a part of a planned process of project development where the vendors were fully integrated with the plant, starting with basic raw materials, automated paint, plating and powder coating plants. This has ensured that the maximum possible value addition is done within Uttarakhand, so as to maximize the tax advantage and make Bajaj Autos motorcycles even more cost competitive. Initial facilities created by vendors at Pantnagar at an aggregate investment of Rs.5 billion (Rs.500 crore) are for half million motorcycles per year, which will be increased with balancing investments to produce one million motorcycles per year to synchronise with the Companys plans.

Dealers
26

Bajaj Auto has adopted a channel policy approach which is unique in the automobile industry. This policy and its linked initiatives are guided by the requirements of specific sets of the Companys final customers.

The Primary Channel:

This comprises 408 Exclusive two-wheeler dealers, 75 exclusive Three-wheeler dealers, and 98 dealers who deal in both product categories. Bajaj Auto has followed a policy of systematic network consolidation, in which the primary dealerships have been given a larger scale and scope to operate based on their strengths.

The Secondary Channel:

Much of Bajaj Autos recent success can be attributed to policy of rapidly adding to the number of secondary Outlets, which provide sales, service and spares to support in the vast hinterland of India. These are in the form of 1,500 Authorised Service Centers (ASC), 4,500 Rural Service Outlets (RSO), and 750 Young Engineer Service (YES) Centers in the towns and cities.

The Rural India Foray:

The Company has been aggressively pursuing initiatives to increase two-wheeler penetration in rural India. A large number of rural outlets were added to the network during the year, which not only increased total sales but also gave additional employment in the rural sector.

4. Pro-biking:
This initiative sits far away from the rural India play but is no less important
27

Bajaj Auto believes that young India doesnt pay to buy motorcycles. It pays to buy excitement and exhilaration. The Pro-biking initiative, which was kicked off with the inauguration of first store in Pune in August 2005, aims precisely at creating this thrill. Owned and operated by Bajaj Auto, Pro-biking showrooms are now operational in Mumbai, Kolkata, Chennai, Hyderabad and Ahmedabad.

Segment and Brands

Products Bikes Brands
4S Bajaj CT 100 Bajaj Wind 125 KB RTZ 4S Champion Bajaj Discover Bajaj XCD 125 KB100 Bajaj Kristal Dtsi Bajaj Avenger Bajaj Platina Boxer KB125 Bajaj Wave

Scooters

Bajaj Chetak

Details About Some Few Major Brands:-

1. BAJAJ PLATINA
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Bajaj Platina is a new 100cc bike from Bajaj Auto Ltd. with a mileage of 70 km on road conditions. The bike is equipped with exclusive streak design side panels and with sleeker rear panels. It is a budget bike in two variants, complimenting the existing CT 100 model from the company in the lower segment of the bike market.

Striking features

Exclusive Styling Package. Superior engine performance for practical riding conditions Best in class suspension system for superior comfort. World first SNS (Spring-N-Spring) rear suspension with the longest travel in its class of 100 mm. Unique streak design side panels. Unbelievable mileage promise of 109 KMPL

2. BAJAJ DISCOVER DTSI 135cc

Bajaj Discover 135 cc lies in between the 125 cc and 150 cc segments with an engine displacement of 134.21 cc. The Bajaj Discover 135 cc is easy to control, easy on the pocket, and a good choice between a 125 cc and 150 cc motorbike. The 135 mm telescopic front suspension combined with the adjustable Nitro X

suspension at the rear provides smooth and comfortable rides; alloy wheel rims add flamboyance to the strong double cradle body, and a front 240 mm hydraulic
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disc brake enhances safety. The added engine power gives the Bajaj Discover 135 cc greater performance edge over 125 cc alternatives with the looks of a 125 cc machine. The electric start without a kick works like a charm.

Striking features The engine can deliver 57 KPL It has got 10L of tank The high class efficency of the bikes with a keihin CV carburetor. The new suspension is like the bajaj pulsar 150cc and is fitted to bear the weight of the bike. The brakes of the bike are 240mm. disc brake In the front.

BAJAJ PULSER DTS

Bajaj Auto Ltd. has launched Pulsar DTSi in its attempt to remain 'Distinctly Ahead'. The all new Pulsar DTSi is packed with the path breaking next generation technology of digital biking. Its various digital systems like capacitor discharge ignition (CDI) system, Digital console and Digital Twin Spark ignition (DTSi) provides efficient fuel combustion and better performance under all conditions. The latest DTSi engine of Bajaj Pulsar DTSi, with twin spark plugs and 8 bit microprocessor chip, generates the pulsating 18 ps of power to excite the bikers and its advanced ExhausTEC technology ensures the great performance at lower rpm.

The muscular aerodynamic shape of Pulsar DTSi and its 1350 mm of wheel base with 17" large alloy wheels give this bajaj bike a robust presence on the road.

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For the first time in India, Pulsar DTSi is equipped with an Oil cooler, tube less tyres and new digital console that makes the Pulsar most sporty and stylish two wheeler on Indian roads. Launched in variants of 150cc and 180 cc,200cc and 220cc. Pulsar DTSi has a starting price tag of Rs.70-75,000 (approx.) and up for sale through out the dealerships of Bajaj Auto India.

Striking Feature

Engine Oil Cooler to control the temperature and maintain the high speed and rpm. Digital Odometer, Digital Speedo Meter, Digital Fuel Gauge and two Digital Trip Meters contribute to enhanced riding comfort. Tubeless tyres for better road grip and stability. First bike in India with large 33 mm front fork for better shock absorbing ability. Constant velocity (CV) carburetor for high level of performance. Split seat for better riding and sitting comfort.

Main Competitors of Bajaj in India

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Bajaj Auto: In collaboration with Kawasaki Heavy Industries of Japan, this company is the largest exporter of two and three wheelers in India. It was established in the year 1926 by Jamnalal Bajaj. The popular brands of this company are Pulsar and Discover DTSi. In 2005 the Discover DTS-i was chosen as Bike of the Year for its superb design by Overdrive Awards. In the same year Bajaj Avenger and Bajaj Wave launched. Hero Honda Motors: It is the World's No.1 two-wheeler manufacturing company. The company, in collaboration with Hero Cycles of India and Honda Motor of Japan, is known for some popular brands like Achiever, CBZ, CD Dawn, Karizma, Passion, Pleasure and Splendor. Founded by Munjal Brothers, this group was established in the year 1984 (The Hero Group was established in 1956). In 2006, Hero Honda Achiever won NDTV Profit CarIndia & BikeIndia Awards for the Motorcycle of the Year and Bike up to 150 cc of the year. Scooters India Ltd: This ISO 9001:2000 and ISO 14001 Company was incorporated in 1972. This integrated automobile plant not only manufactures automobiles, but also designs, develops and markets them. Suzuki Motorcycles: This is a subsidiary of Suzuki Motor Corporation in Japan. The Manufacturing plant was installed in Gurgaon (Haryana) with annual capacity of 1, 75,000 units. TVS Motor Company: Founded by T V Sundaram Iyengar, this company was established in August 1980 (TVS Group in 1911). It is the third largest two-wheeler manufacturer in India and ranks among the top ten among all the two wheelers manufacturers in the world.

Departmental Details
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Bajaj Regional office is mainly dealing with the marketing and distribution of the product with the help of the dealers. So the regional office is also responsible for the selection of the dealers. For any company selection of the intermediaries is a key issue and the most important factor for the growth of the business. They help the company to promote, sell, and distribute the product to its final buyers. In the case of Bajaj its main dealers and sub-dealers are the intermediaries. Dealers form an important component of the companys overall value delivery system. They are the important bridge between the company and the customers, they reflects the company brand image, ethics, and policies. Bajaj also knows very well the value and importance of the dealers, for that they are following set criteria and process to select the dealers. The selections of the dealers are for three prospective i.e. 1) Sales 2) Service 3) Spares

The dealer should be a) Financially capable b) Complete understanding of the business c) Dealer should have a zeal and interest to do the business.

Methodology to select the dealer:33

Bajaj Company has two methods or process to select the Dealers for its business in the country, firstly through the Open Ads and secondly Marketing Scouting.

Open Advertisement process:-

Step 1Releasing the application through the open ads in the newspaper, internet.

Step 2Scrutiny of the applicants is doing by the Networking department of Bajaj company on the basis of potentiality, demanded attributes by the company, market presence, dealers assets value, market networking.

Step 3Short listed applicants now get a call for an interview cum meeting from the companys networking department and regional office. Final round of the interview will be arranged with the Managing Director of the company

Step 4:Finally selected candidate will get a Letter Of Intent in starting of the contract for the first 6 months. During this period company will observe the working process, product and showroom maintenance, staff behavior towards customers and staff grooming part.

Step 5:After 6 months if all the things are according to the company standards and parameters then company will assign Letter of Authorization which will keep renewing after 2 years without any charges.

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 There are no fix rules for the dealers to maintain the fix number of bikes in the showroom. Its totally depend upon the geographical area, market area and market business. For the first 6 months company is issuing the bikes to the dealers on the full payment.

Dealer Termination Process:If the business and the behavior of the dealers are not up to the level then after 3rd quarter company will send a letter of reminder regarding their faults in the service delivery. If they are not performing well for the company then company will tell them to wind up the business, clear all tranjections and debts from the company and banks. In between company Area Sales manager conducts the meeting time to time with the managers of the dealers to know about the business, any kind of problem if they are getting, future demand of bikes, color, and model number.

Marketing Scouting Process

BAL regional office investigates the market about the potential business customers who can become the dealer of Bajaj Company. They should be able to create the market and generate the profits for the company. Its totally based upon the market performance of the dealer in other business or on the basis of its track record. According to the qualitative part of study and my personal observation following is the graph regarding their behavior towards customers and customers perception towards them:-

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Judgment Scale - (Highly s D

NAME OF THE DEALER SHOWROOM OUTER

Srivinayaka Auto **** Bahadurpura Srivinayaka Auto ***** Kachiguda

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CHAPTER III

RESEARCH METHODOLOGY
This research involved a study, which was descriptive as well as explorative in nature. It basically aims at gathering primary data from the respondents.

Methods of Data Collection Primary Data

Primary Data Collection:Primary data is collected by Survey Here, only survey method of data collection is preferred which is very suitable to reach the researchers motto. i)
ii)

Research Instrument: - Printed questionnaire was used as the research instrument to collect the required information. Area of Survey: - The survey was conducted in different location of Hyderabad city like Begumpet, Kachiguda, Bhadurpura, Kondapur, LB.Nagar, Dilsuknagar, Vidyanagar, Attapur, Amberpet, and Malakpet.

Secondary Data:

Secondary Source: Websites, magazines, newspaper, articles from

different reliable resources.

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Sampling Plan: - Sampling plan consists of:

a) Sampling Unit: - General customers of different age, occupation. b) Sample Size: - For this study I have taken sample size of 50

respondents.
c) Sampling Method: - I used judgment sampling; data was collected by

dealer survey. The customers were personally interviewed.

Limitations:1. May be opinions differs from dealers to dealers.

2. Biased opinions of people.

3. Data given by the customer is assumed to be correct.

4. Customers may not give the enough time. 5. Limitation of time.

CHAPTER IV
38

Data Analysis and Interpretation of Data

Number of respondents: - 50 Staffs greeting and friendly welcome Number 14 28 03 01 0 50 Percentage 30 61 7 2 0 100

Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied Total

Dissatisfied 2% Moderately satisfied 7%

Highly dissatisfied 0% Highly satisfied 30%

Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied

Satisfied 61%

Analysis:-

30% respondents are highly satisfied with the staff greeting and

behavior, 61%satisfied, 7% moderately satisfied, 2% dissatisfied, and not even the single respondent is highly dissatisfied with the staff greeting and friendly welcome. Interpretation: - 91% respondents were satisfied with the staff greeting and friendly welcome its good for the reputation of the company

Staff understanding of customers requirements

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Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied Total

Number 8 42 0 0 0 50

Percentage 16 84 0 0 0 100

Dissatisfied 0% Highly dissatisfied 0%

Moderately satisfied 0% Highly satisfied 16% Highly satisfied Satisfied Dissatisfied

Moderately satisf

Highly dissatisfied Satisfied 84%

Analysis:16% respondents are highly satisfied with the staff understanding of their requirement, 84% are satisfied with the same.

Interpretation: - 84% customers are satisfied with the staff understanding of

their need; its good for the company to continue in the future.
40

Staffs grooming Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied Total Numbers 3 5 22 19 1 50 Percentage 6 10 44 38 2 100

Highly s atis fied Highly dis s atis fied 6% Satis fied 2% 10% Dis s atis fied 38%

Highly s atis fied Satis fied Moderately s atis fied Dis s atis fied Highly dis s atis fied

Moderately s atis fied 44%

Analysis:6% respondents are highly satisfied with the grooming of the staff, 10% are satisfied, and 44% are moderately satisfied, 38% are dissatisfied, 2% are highly dissatisfied.

Interpretation: - Majority of the customers (40%) are dissatisfied with the

attire of the staff, its a negative point for the image of the company.
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Salesman cooperation

Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied Total

Number 5 43 2 1 0 50
Dissatisfied 2% Moderately satisfied 4%

Percentage 10 84 4 2 0 100

Highly dissatisfied 0% Highly satisfied 10%

Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied

Satisfied 84%

Analysis:10% respondents are highly satisfied with the salesperson cooperation, 84% are satisfied, 4% are moderately satisfied, 2% are dissatisfied, and no one is highly dissatisfied.

Interpretation: - 94% respondents are highly satisfied with the staff

cooperation, so current practices are going good.

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Product display & demonstration in the showroom Numbers Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied Total
15

32 2 1 0 50

Percentage 30 64 4 2 0 100

Dissatisfied 2% Moderately satisfied 4%

Highly dissatisfied 0% Highly satisfied 30% Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied

Satisfied 64%

Analysis:30% respondents are highly satisfied with the display and demonstration of the bike, 64% are satisfied, 4% are moderately satisfied, 2% are dissatisfied and no one is highly dissatisfied.
43

Interpretation: - 94% respondents are highly satisfied with the arrangement

of the bikes and they have a clear idea of the product.

HP facilities (High Purchase) Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied Total Numbers 4 28 11 07 0 50
Highly dissatisfied 0% Dissatisfied 14% Moderately satisfied 22% Satisfied 56% Highly satisfied 8%

Percentage 8 56 22 14 0 100

Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied

Analysis:8% respondents are highly satisfied with the HP facility, 56% are satisfied, 22% are moderately satisfied, 14% are dissatisfied and no one is highly dissatisfied.

Interpretation: - 64% are satisfied with the financial schemes given by the
company but there is also some part of the respondents who are not fully satisfied so companies try to satisfy them also.
44

Exchange facility for vehicle Numbers 1 22 20 07 0 50

Highly dissatisfied 0% Dissatisfied 14% Highly satisfied 2% Highly satisfied Satisfied 44% Moderately satisfied 40% Satisfied Moderately satisfied Dissatisfied Highly dissatisfied

Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied Total

Percentage 2 44 40 14 0 100

Analysis:2% respondents are highly satisfied with the exchange facility, 44% are satisfied, 40% are moderately satisfied, 14% are dissatisfied, no one is highly dissatisfied.

Interpretation: - Majority of the respondents (84%) is satisfied for the value

they are getting for their old bikes. Company will try to offer the best price to them.
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Color availability for bikes Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied Total Numbers 16 26 5 2 0 50 Percentage 33 53 10 4 0 100

Dissatisfied 4% Moderately satisfied 10%

Highly dissatisfied 0% Highly satisfied 33% Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied

Satisfied 53%

Analysis:33% respondents are highly satisfied with the color availability in bikes, 53% are satisfied, 10% are moderately satisfied, 10 are dissatisfied and no one is highly dissatisfied
46

Interpretation: - 86% respondents are satisfied with the color availability for
bikes; company is maintaining well the demand and supply.

Test ride Experience Numbers 5 34 9 1 0 50 Percentage 10 70 18 2 0 100

Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied Total

Dissatisfied 2% Moderately satisfied 18%

Highly dissatisfied 0% Highly satisfied 10%

Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied

Satisfied 70%

Analysis:10% respondents are highly satisfied with the test ride experience, 70% are satisfied, 18% are moderately satisfied, 2% are dissatisfied and no one is highly dissatisfied.

47

Interpretation: - 80% are satisfied with the experience of the vehicle,

company keep providing the same quality all the time.

Workshop staff to be helpful, courteous & polite Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied Total Numbers 0 30 14 5 1 50 Percentage 0 60 28 10 2 100

Highly dissatisfied 2% Dissatisfied 10%

Highly satisfied 0%

Highly satisfied Moderately satisfied 28% Satisfied Moderately satisfied Satisfied 60% Dissatisfied Highly dissatisfied

Analysis:60% are satisfied with the behavior of workshop staff, 28% are moderately satisfied, 10% are dissatisfied, 2% are highly dissatisfied but no one is highly satisfied with the workshop staff behavior.

48

Interpretation: - A majority of the respondents (78%) are satisfied with the

workshop staff behavior; so it seems that staff is responsible in his attitude.

Performance of the bike after the servicing Numbers 0 29 14 5 1 50 Percentage 0 59 29 10 2 100

Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied Total

Highly dissatisfied 2% Dissatisfied 10%

Highly satisfied 0% Highly satisfied

Moderately satisfied 29%

Satisfied Moderately satisfied Satisfied 59% Dissatisfied Highly dissatisfied

Analysis:59% respondents are satisfied with the performance of the bike after the servicing, 29% are moderately satisfied, 10% are dissatisfied, 2% are highly satisfied but no on is highly satisfied with the performance of the bike

Interpretation:49

88% respondents are satisfied with the performance of the bike after the servicing so company always appoint trained and experienced mechanics.

Final bill as per the cost estimatation Numbers 2 22 19 7 0 50 Percentage 4 44 38 14 0 100

Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied Total

Highly dissatisfied 0% Dissatisfied 14% Highly satisfied 4% Highly satisfied Satisfied Satisfied 44% Moderately satisfied 38% Dissatisfied

Moderately satisfie

Highly dissatisfied

Analysis:4% respondents are highly satisfied with the final bill of the servicing, 44% are satisfied, 38% are moderately satisfied, 14% are dissatisfied but no one is highly dissatisfied.
50

Interpretation:-Overall 52% are dissatisfied with the final billing of servicing;

dealers have to provide reliable information to the customers regarding the bill.

CHAPTER-V Findings: 91% respondents were satisfied with the staff greeting and friendly welcome. 84% customers are satisfied with the staff understanding of their need. Majority of the customers (40%) are dissatisfied with the attire of the staff. 94% respondents are highly satisfied with the staff cooperation. 94% respondents are highly satisfied with the arrangement of the bikes and

they have a clear idea of the product.

64% are satisfied with the financial schemes given by the company.

Majority of the respondents (84%) is satisfied for the value they are getting for their old bikes.

86% respondents are satisfied with the color availability for bikes. 80% are satisfied with the experience of the vehicle.

A majority of the respondents (78%) are satisfied with the servicing staff behavior.

88% respondents are satisfied with the performance of the bike after the

servicing.
52% are dissatisfied with the final bill of servicing.

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Some general observations during my study period:Good Practices:a)

Showrooms are present at every important place, area in Hyderabad The staff especially the managers of the branch is highly educated

from the competition point of view.

b)

and experienced.
c) d)

Staff is loyal towards the dealer and the manager. The dealers of the Bajaj are very much capable to balance the demand and supply chain. Servicing centre has all the latest equipment and machines. Number of staff at the showroom and the servicing centre is quite good. The billing of the product is also according to the company rate. Good communication chain within the office and among the staff. Drawbacks:a) Most of the Showrooms are not attractive and arranged properly. Old

e) f) g) h)

furniture, congested area, no promotional banners in the showroom, walls was not white washed properly.
b) The most serious fact is that no staff member except workshop employee

wear the Bajaj company dress, customers were highly dissatisfied with that.
c) Many salesperson dont know how to treat the customer properly, there

was no proper way of reception.

d) No proper water facility, no arrangement of the electric generator during

the power cut.

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e) In some of the showrooms there is no employee related to BAFL

(Bajaj Auto Finance Ltd.) to tell the financial schemes to the customer.
f) The company policy of financing the bikes for the non- income group was

not satisfactory( 40% nonpayment of the total cost of the bike)

g) Most of the servicing centers has a very rigid time table to give the bike

for the servicing in the morning ( 8.30- 10.00 am only)

h) Sometimes the customer was not informed about the work done on his

bike.
i) For the product XCD135 all the spare parts are not available in the

market.
j) For the bike Pulsar 200& 220cc there were no trained mechanics. k) Regarding the sales and servicing most of the showrooms have no

feedback arrangement from the customer side.

Suggestions: - (According to the questionnaire)

53

o Customers are happy with the behavior of the staff; they should always

keep practicing good behavior towards customer.

o Staffs always pay their full attention to understand the demand and need

customers.
o Staff should wear company dress to represent the company. o Dealers always try to maintain the showroom attractive and eye-

catching.
o Most of the customers are happy with the financial schemes but company

should give some flexible schemes to the non- income group.

o Customers are getting good value of old bikes, dealers always offer them

best price of it.

o Company keep innovating the new colors for the bike. o Test ride should offer to the customers its help them to understand the

product quality.
o Billing procedure and value charging from the customers should be very

clear to them.

Suggestions according to the general observation:

Dealers should try to improve the outer and inner appeal of the showroom, it should be attractive. The staff should follow the dress code of the company Bajaj. Dealers should give proper training to the salesperson before his or her appointment.

54

Dealers do maintain the comfortable atmosphere in the showroom with all necessary facilities like water, electricity, washroom etc. Company should recruit some new employees regarding financial works at the dealers counter. Company may offer some rebates to lower middle class customers, it could be around 25% to 30%. Regarding the workshop, timing should be flexible because many employed persons are finding lots of difficulties to adjust with the time. Customers should be informed properly about the charges hes paying. Company and dealers should appoint the experienced technical workers regarding the bike Pulsar 200&220cc. The demand and supply flow should be maintained for the availability of spare parts in the market and in the workshop. They can use a company feedback form for both sales and service department. It needs to target the young age group more effectively as this group is extremely trend savvy. The advertising should have a fresh look and the product should live up to the Gen-X's expectations.

It should appoint a brand ambassador and also sponsor some event so that the name of the company should remain in the customers mind. Company should implement new marketing strategy to face compete coming challenge with the launch of cheaper cars (Nano) in the market in coming days.

CHAPTER VI
55

Bibliography
1. http://www.bajajauto.com/1024/aboutbajaj accessed on 18th March 2009 2. Indian Two-Wheeler Industry, ICRA Sectoral Analysis. (2005, Jan) Retriev March 21, 2007 from http://www.fadaweb.com/two_wheeler_industry.htm accessed on 25th March 2009. 3. Two Wheelers in India. Retrieved March 21, 2007 from http://auto.indiamart.com/two-wheelers/tvs-motor-company.html accessed on 7th April 2009. 4. Article written by Ccochran, (2008) from http://elsmar.com accessed on 15th April 2009. 5. Understanding and Managing Customer Perception, Written by Dagmar Recklies ,( 2009) http://www.themanager.org: accessed on 15th April. 6. ITS A BUYERS MARKET by Bill Gorman (2009) (http://www.marzahnandking.com accessed on 25th April 2009 7. Services Marketing by- Valarie A Zeithaml ( 4th Edition 2008), Published by McGraw-Hill 8. Principles of Marketing by Philip Kotler & Gray Armstrong (12th Edition 2008), published by Pearson Education

Questionnaire
56

BAJAJ AUTO would like to invite you to participate in survey to help to improve our service quality. It will take few minutes of your valuable time. Your responses are very precious to us as they will help us to improve our service quality .
(Highly satisfied-5, Satisfied-4, Moderately satisfied 3, Dissatisfied- 2, Highly dissatisfied- 1) 1 Are you satisfied by the staffs greeting and friendly welcome? Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied

2 Are you satisfied with staffs understanding of your requirements? Highly satisfied 3 Satisfied Moderately satisfied Dissatisfied Highly dissatisfied

Staffs grooming? Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied

Are you satisfied with the salesman cooperation? Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied

Product display & demonstration is appealing or not? Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied

Are you satisfied with HP facilities (High Purchase)? Highly Satisfied Moderately Dissatisfied Highly dissatisfied satisfied satisfied

Exchange facility for vehicle? Highly Satisfied Moderately Dissatisfied Highly dissatisfied 57

satisfied 8 Color availability for bikes? Highly satisfied 9 Satisfied

satisfied

Moderately satisfied

Dissatisfied

Highly dissatisfied

Test ride Experience Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied

10

Did you find the workshop staff to be helpful, courteous & polite? Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied

11.

Are you satisfied with the performance of the bike after the servicing? Highly satisfied Satisfied Moderately satisfied Dissatisfied Highly dissatisfied

12. Was the final bill as per the cost estimate given to you? Highly satisfied 1. Name Satisfied Moderately satisfied Dissatisfied Highly dissatisfied

2. Mobile no: 3. Email ID: 4. Gender : Male Female Age-

Address:-

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