BAJAJ AUTO LIMITED

GROUP - 5

NAME ROLL NO.

AMMAR AHMAD KHIZRAI 23RM906

PRAYANSHU PARHI 23RM936
NILESH DWIVEDI 23RM962
KUMARI PRIYA 23RM926
MANAV MEHRA 23RM928
SHRIYA AGRAWAL 23RM945
 SUMMARY

The document discusses the challenges faced by the two-wheeler industry in India, including the
need for regular product launches to sustain profit margins and overcome consumer resistance to
price hikes. Other critical factors for success include brand image, rural penetration, and
geographic presence. The emphasis is shifting to the premium segment of the market, where
consumers are willing to pay for superior design and features. The document also highlights the
struggles of TVS Motors and the need for the company to focus on products with a clear value
proposition. Finally, the document mentions the launch of Italjet's range of scooters in the Indian
market.
Problem

According to the given document, Bajaj Auto Limited has been facing several problems in the
Indian two-wheeler market. The scooter market is shrinking, and Bajaj's sales in this segment had
fallen. In motorcycles, Bajaj's market share fell further to 24 per cent from 27 per cent, and it was
trailing the industry growth. Bajaj's motorcycle sales grew by just 12 per cent, while the motorcycle
segment grew at 28 per cent in 1999-2000.
Hero Honda has quietly stolen a march over Bajaj Auto by selling more two-wheelers. Bajaj was
slow in reading the shift from scooters to motorcycles. The document suggests that Bajaj Auto
Limited needs to launch new and improved products at regular intervals to sustain profit margins
and compete with Hero Honda.
Cause

The study identifies a number of causes, including:

• The rise of new competitors, such as Hero MotoCorp, which offered more stylish and fuel-efficient
scooters.
• The failure of Bajaj to keep up with the latest technological trends, such as the introduction of gearless
scooters.
•A lack of focus on the scooter market, as Bajaj began to diversify into other product segments.
•A decline in the overall demand for scooters in India, as more people began to prefer motorcycles.
Solution

Based on the given document, some solutions for Bajaj Auto Limited to improve its market position in the Indian two-
wheeler market are:
1. Launch new and improved products at regular intervals to sustain profit margins and compete with Hero Honda.
2. Compete on price to jumpstart volumes, which may help in improving market share.
3. Improve its presence in the entry-level segment, which may take time to shake Hero Honda's dominance in this
category.
4. Set up specialized showrooms for premium products to give customers a complete feel of the product they are buying.
5. Appoint exclusive dealerships for its three-wheeler products to focus on the job, get in volumes, and make the business
viable.
6. Keep a close eye on the growth potential of various market segments in the Indian two-wheeler market and identify key
benefits being sought by each of these segments.
7. Launch exciting products in the 125 cc segment to reach volumes of 200,000 or more over the next two years.
8. Maintain its current growth streak and keep up with the industry growth to maintain its market position.
1. Identify the various market segments in the Indian two-wheelers market, key benefits being sought by each of
these segments and their growth potential.

The Indian two-wheeler market can be segmented into the following:

• Entry-level segment: This segment is dominated by motorcycles with an engine capacity of less than
125cc. The key benefits sought by consumers in this segment are affordability, fuel efficiency, and
ruggedness. The growth potential of this segment is high, as it is still underpenetrated.
• Premium segment: This segment is dominated by motorcycles with an engine capacity of 125cc or
more. The key benefits sought by consumers in this segment are performance, style, and features. The
growth potential of this segment is moderate, as it is already quite mature.
• Scooter segment: This segment is dominated by scooters with an engine capacity of 110cc or more.
The key benefits sought by consumers in this segment are comfort, convenience, and fuel efficiency.
The growth potential of this segment is high, as it is still underpenetrated.
• Moped segment: This segment is dominated by mopeds with an engine capacity of less than 50cc. The
key benefits sought by consumers in this segment are affordability, fuel efficiency, and ease of
maintenance. The growth potential of this segment is low, as it is already quite mature.
2. Compare the value propositions all the players in each of these segments.

The value propositions of the different players in each of the segments vary depending on the brand
image, product features, pricing, and after-sales service.

For example, in the entry-level segment, Bajaj Auto is known for its affordable and fuel-efficient
motorcycles, while Hero MotoCorp is known for its strong brand image and wide dealer network.

In the premium segment, Royal Enfield is known for its retro-styled motorcycles, while KTM is known for
its high-performance motorcycles.

In the scooter segment, Honda is known for its fuel-efficient and comfortable scooters, while TVS is known
for its stylish and feature-rich scooters.
3. What are your recommendations to Bajaj Auto Limited for stopping the slide and moving up to a strong market
leader position considering the opportunities and threats in each of the two-wheeler segments and its (Bajaj’s)
competitive strength in these segments?

My recommendations to Bajaj Auto Limited are:

• Focus on the premium segment: This segment is growing rapidly and is dominated by Hero MotoCorp. Bajaj Auto
can gain market share in this segment by launching new products with advanced features and technology.
• Expand into new markets: Bajaj Auto is currently strong in India, but it has limited presence in other emerging
markets. The company should expand into these markets to tap into the growing demand for two-wheelers.
• Invest in research and development: Bajaj Auto needs to invest in research and development to develop new
products that meet the needs of consumers. The company should also focus on improving the quality of its existing
products.
• Strengthen its brand image: Bajaj Auto has a strong brand image in India, but it needs to improve its brand image in
other markets. The company can do this by sponsoring sporting events and participating in other marketing
activities.
• Bajaj Auto is a strong company with a long history of success. By following these recommendations, the company
can stop the slide and move up to a strong market leader position in the Indian two-wheeler market.
THANK YOU