Jamnalal Bajaj

Jamnalal Bajaj

Born 4 November 1889

Kashi Ka Bas, near Sikar, RAJASTHAN (RAJPUTANA)India

Died 11 February 1942 (aged 57)

Wardha

Occupation Social worker, political leader, freedom fighter, industrialist, founder Bajaj
Group (estb. 1926)

Spouse(s) Janaki Devi Bajaj

Children Kamlabai, Kamalnayan Bajaj, Uma, Ramkrishna, Madalsa

Parent(s) Kaniram and Birdibai

History
Bajaj scooter built under license from Vespa
Bajaj Auto came into existence on 29 November 1944 as M/s Bachraj Trading Corporation
Private Limited. It started off by selling imported two- and three-wheelers in India. In 1959, it
obtained a licence from the Government of India to manufacture two-wheelers and three-
wheelers and it became a public limited company in 1960. In 1970, it rolled out its 100,000th
vehicle. In 1977, it sold 100,000 vehicles in a financial year. In 1985, it started producing at
Waluj near Aurangabad. In 1986, it sold 500,000 vehicles in a financial year. In 1995, it
rolled out its ten millionth vehicle and produced and sold one million vehicles in a year.
With the launch of motorcycles in 1986, the company has changed its image from a scooter
manufacturer to a two-wheeler manufacturer.
According to the authors of Globality: Competing with Everyone from Everywhere for
Everything, Bajaj has operations in 50 countries creating a line of bikes targeted to the
preferences of entry-level buyers.
Jamnalal
Main article: List of Bajaj Auto products
Bajaj manufactures and sells motorcycles, scooters, auto-rickshaws and most recently, cars.
Bajaj Auto is India's largest exporter of motorcycles and three-wheelers.[1] Bajaj Auto's
exports accounted for approx. 35% of its total sales. 47% of its exports are made to Africa.
Boxer motorcycle is the largest selling single brand in Africa.
Motorcycles Manufactured by Bajaj auto Company

 Avenger 220 Cruise Desert Gold Edition

 Avenger 220 Cruise

 Avenger 220 Street

 Avenger 150 Street

 CT100

 CT100B

 Dominar 400

 Discover 125

 Platina Comfortec

 Pulsar 135LS

 Pulsar 150

 Pulsar 180

 Pulsar 220F

 Pulsar AS150

 Pulsar NS200

 Pulsar AS200

 Pulsar RS200

 V15

 V12
Motorcycles in production are the Dominar 400,
V, Platina, Discover, Pulsar and Avenger and CT 100. In FY 2012-13, it sold approximately
3.76 million motorcycles which accounted for 31% of the market share in India. Of these,
approximately 2.46 million motorcycles (66%) were sold in India and remaining 34% were
exported.
 Bajaj in Rajasthan in the 1940s. It is based in Pune, Mumbai, with plants in Chakan (Pune),
Waluj (near Aurangabad) and Pantnagar in Uttarakhand. The oldest plant at Akurdi (Pune)
now houses the R&D centre 'Ahead'.
Bajaj Auto is the world's sixth-largest manufacturer of motorcycles and the second-largest in
India. It is the world's largest three-wheeler manufacturer.
On May 2015, its market capitalisation was 640 billion (US$9.9 billion), making it India's
23rd largest publicly traded company by market value. The Forbes Global 2000 list for the
year 2012 ranked Bajaj Auto at 1,416.
Auto Limited is an Indian two-wheeler and three-wheeler manufacturing company.[3] Bajaj
Auto manufactures and sells motorcycles, scooters and auto rickshaws. Bajaj Auto is a part of
the Bajaj Group. It was founded by Jamnalal Bajaj in Rajasthan in the 1940s. It is based
in Pune, Mumbai, with plants in Chakan (Pune), Waluj (near Aurangabad)
and Pantnagar in Uttarakhand. The oldest plant at Akurdi (Pune) now houses the R&D centre
'Ahead'.
Bajaj Auto is the world's sixth-largest manufacturer of motorcycles and the second-largest in
India. It is the world's largest three-wheeler manufacturer.
On May 2015, its market capitalisation was 640 billion (US$9.9 billion), making it India's
23rd largest publicly traded company by market value. The Forbes Global 2000 list for the
year 2012 ranked Bajaj Auto at 1,416.
Bajaj Auto Limited is an Indian two-wheeler and three-wheeler manufacturing company.
[3]
Bajaj Auto manufactures and sells motorcycles, scooters and auto rickshaws. Bajaj Auto is
a part of the Bajaj Group. It was founded by Jamnalal Bajaj in Rajasthan in the 1940s. It is
based in Pune, Mumbai, with plants in Chakan (Pune), Waluj (near Aurangabad)
and Pantnagar in Uttarakhand. The oldest plant at Akurdi (Pune) now houses the R&D centre
'Ahead'.
Bajaj Auto is the world's sixth-largest manufacturer of motorcycles and the second-largest in
India. It is the world's largest three-wheeler manufacturer.
On May 2015, its market capitalisation was ₹640 billion (US$9.9 billion), making it India's
23rd largest publicly traded company by market value. The Forbes Global 2000 list for the
year 2012 ranked Bajaj Auto at 1,416.

Three wheelers

RE Compact

RE Compact 4S

RE Optima

RE Maxima

It is the world's largest manufacturer of 3-wheelers and accounts for almost 84% of India's
three-wheeler exports. During the FY 2012-13, it sold approx. 480,000 three-wheelers which
was 57% of the total market share in India. Out of these 480,000 three-wheelers, 53% were
exported and remaining 47% were sold in India.

Low cost cars

Bajaj Qute

In 2010, Bajaj Auto announced cooperation with Renault and Nissan Motor to develop a
US$2,500 car, aiming at a fuel efficiency of 30 kilometres per litre (85 mpg-imp; 71
mpg-US) (3.3 L/100 km), or twice an average small car, and carbon dioxide emissions of 100
g/km.

On 3 January 2012, Bajaj auto unveiled the Bajaj RE60, a mini car for intra-city urban
transportation. The target customer group will be Bajaj's three-wheeler customers. According
to its Managing Director Rajiv Bajaj, the RE60 powered by a new 200 cc rear mounted petrol
engine will have a top speed of 70 kilometres per hour (43 mph), a mileage of 35 kilometres
per litre (99 mpg-imp; 82 mpg-US) and carbon dioxide emissions of 60 g/km.

Discontinued

Scooters

Bajaj 150

Bajaj Bravo

Bajaj Chetak

Bajaj Chetak 99

Bajaj Chetak 4s

Bajaj Cub

Bajaj Classic

Bajaj Kristal

Bajaj Legend

Bajaj M50

Bajaj M80

Bajaj Priya

Bajaj Rave

Bajaj Sunny

Bajaj Stride

Bajaj Saffire

Bajaj Spirit

Bajaj Super
Bajaj Super Excel

Bajaj Super 99

Bajaj Wave

Motorcycles

Bajaj Kawasaki 4S Champion 100

Bajaj Kawasaki Aspire 110

Bajaj Kawasaki Boxer 100

Bajaj Kawasaki Boxer AT 100

Bajaj Kawasaki Boxer AR 100

Bajaj Kawasaki Boxer CT 100

Bajaj Kawasaki Caliber 110

Bajaj Kawasaki Caliber 115

Bajaj Kawasaki Caliber Croma 110

Bajaj Kawasaki Eliminator 175

Bajaj Kawasaki KB100

Bajaj Kawasaki KB125

Bajaj Kawasaki Wind 125

Bajaj Avenger 180

Bajaj Avenger 200

Bajaj Byk 100

Bajaj Boxer BM150

Bajaj Discover 100

Bajaj Discover 110

Bajaj Discover 135

Bajaj Discover 150

Bajaj Discover 100M

Bajaj Discover 100T

Bajaj Discover 125M

Bajaj Discover 125T

Bajaj Discover 125ST

Bajaj Discover 150S

Bajaj Discover 150F

Bajaj Platina 100

Bajaj Platina 125

Bajaj Pulsar 150

Bajaj Pulsar 200

Bajaj Pulsar 220

Bajaj Pulsar 220S

Bajaj Prowler RR125

Bajaj SX Enduro 100

Bajaj XCD 125

Bajaj XCD 135

Acquisitions

Bajaj Auto bought a controlling stake in the Tempo Firodia company, renaming it "Bajaj
Tempo". Germany's Daimler-Benz, a long-time collaborator with Firodia because of their
ownership of the original Tempo works in Germany, owned 16% of Bajaj Tempo. Daimler
sold their stake back to the Firodia group in 2001, meaning that they once again held a
controlling interest, with BAL retaining 24% of the shares. It was agreed that Bajaj Tempo
would gradually phase out the use of the "Tempo" brand name, as it still belonged to
Mercedes-Benz. The name of the company was changed to Force Motors in May 2005,
dropping "Bajaj" as well as "Tempo", over the objections of Bajaj Auto with whom the
company shares a long history as well as a compound wall.

KTM Power Sports AG

In November 2007, Bajaj Auto acquired 14.5% stake in KTM Power Sports AG (holding
company of KTM Sportmotorcycles AG). The two companies have signed a cooperation
deal, by which KTM will provide the know-how for joint development of the water-cooled
four- roke 125 and 250 cc engines, and Bajaj will take over the distribution of KTM products
in India and some other Southeast Asian nations. As on 31 March 2013, Bajaj Auto held
47.96% stake in the company.

Bajaj-Kawasaki end tie-up in april 2017

Bajaj and Kawasaki have ended their 33 year alliance in India following deepening of ties
between the latter and its Austrian partner KTM. Bajaj Auto had an alliance with Kawasaki
for the sale and after sales service of Kawasaki motorcycles through its Probiking, a premium
bike dealership network, since 2009. These Probiking dealerships were later converted to
KTM dealerships. Bajaj Auto Ltd. made a technical assistance agreement with Kawasaki
japan in 1984, and since then it had cooperated to expand production and sales of
motorcycles in India.

Demerger in 2008[edit]

The demerger of Bajaj Auto Ltd into three corporate entities—Bajaj Finserv Ltd (BFL), Bajaj
Auto Ltd (BAL), and Bajaj Holdings and Investment Ltd (BHIL)—was completed with the
shares listing on 26 May 2008.

Listing and shareholding

Listing

Bajaj Auto's equity shares are listed on Bombay Stock Exchange where it is a constituent of
the BSE SENSEX index, and the National Stock Exchange of India where it is a constituent
of the CNX Nifty.

Bajaj Auto is a major Indian automobile manufacturer started by a Rajasthani merchant.

It is based in Pune, Maharashtra, with plants in Chakan (Pune), Waluj (near
Aurangabad) and Pantnagar in Uttaranchal. The oldest plant at Akurdi (Pune) now
houses the R&D centre Ahead. Bajaj Auto makes and exports motorscooters,
motorcycles and the auto rickshaw.

The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946.[1]

Over the last decade, the company has successfully changed its image from a scooter
manufacturer to a two wheeler manufacturer. Its product range encompasses
scooterettes, scooters and motorcycles. Its real growth in numbers has come in the last
four years after successful introduction of a few models in the motorcycle segment.

The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.[2]

Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading
Corporation Private Limited. It started off by selling imported two- and three-wheelers in
India. In 1959, it obtained license from the Government of India to manufacture two-
and three-wheelers and it went public in 1960. In 1970, it rolled out its 100,000th
vehicle. In 1977, it managed to produce and sell 100,000 vehicles in a single financial
year. In 1985, it started producing at Waluj near Aurangabad. In 1986, it managed to
produce and sell 500,000 vehicles in a single financial year. In 1995, it rolled out its ten
millionth vehicle and produced and sold 1 million vehicles in a year

Statistics:
Public Company
Incorporated: 1945 as M/s Bachraj Trading Ltd.
Employees: 17,200
Sales: Rs 42.16 billion ($903.36 million)(2000)
Stock Exchanges: Pune Mumbai Delhi London Berlin Frankfurt Munich
Ticker Symbols: BAJAJAUTO 490 BJATq.L 893361.BE 893361.F 893361.MU
NAIC: 336991 Motorcycle, Bicycle, and Parts Manufacturing

Company Perspectives:

Our Philosophy: We approach our responsibilities with ambition and resourcefulness. We

organise ourselves for a transparent and harmonious flow of work. We respect sound
theory and encourage creative experimentation. And we make our workplace a source of
pride. We believe in: Transparency--a commitment that the business is managed along
transparent lines. Fairness&mdashø all stakeholders in the Company, but especially to
minority shareholders. Disclosure--of all relevant financial and non-financial information
in an easily understood manner. Supervision--of the Company's activities by a
professionally competent and independent board of directors.

Key Dates:

1945: Bajaj Auto is founded.

1960: Rahul Bajaj becomes the Indian licensee for Vespa scooters.
1977: Technical collaboration with Piaggio ends.
1984: Work begins on a second plant.
1998: Bajaj plans to build its third plant to meet demand.
2000: Thousands of workers are laid off to cut costs.

Company History:

Bajaj Auto Limited is India's largest manufacturer of scooters and motorcycles. The
company generally has lagged behind its Japanese rivals in technology, but has invested
heavily to catch up. Its strong suit is high-volume production; it is the lowest-cost
scooter maker in the world. Although publicly owned, the company has been controlled
by the Bajaj family since its founding.

Origins

The Bajaj Group was formed in the first days of India's independence from Britain. Its
founder, Jamnalal Bajaj, had been a follower of Mahatma Gandhi, who reportedly
referred to him as a fifth son. 'Whenever I spoke of wealthy men becoming the trustees
of their wealth for the common good I always had this merchant prince principally in
mind,' said the Mahatma after Jamnalal's death.

Jamnalal Bajaj was succeeded by his eldest son, 27-year-old Kamalnayan, in 1942.
Kamalnayan, however, was preoccupied with India's struggle for independence. After
this was achieved, in 1947, Kamalnayan consolidated and diversified the group,
branching into cement, ayurvedic medicines, electrical equipment, and appliances, as
well as scooters.

The precursor to Bajaj Auto had been formed on November 29, 1945 as M/s Bachraj
Trading Ltd. It began selling imported two- and three-wheeled vehicles in 1948 and
obtained a manufacturing license from the government 11 years later. The next year,
1960, Bajaj Auto became a public limited company.

Rahul Bajaj reportedly adored the famous Vespa scooters made by Piaggio of Italy. In
1960, at the age of 22, he became the Indian licensee for the make; Bajaj Auto began
producing its first two-wheelers the next year.

Rahul Bajaj became the group's chief executive officer in 1968 after first picking up an
MBA at Harvard. He lived next to the factory in Pune, an industrial city three hours' drive
from Bombay. The company had an annual turnover of Rs 72 million at the time. By
1970, the company had produced 100,000 vehicles. The oil crisis soon drove cars off the
roads in favor of two-wheelers, much cheaper to buy and many times more fuel-
efficient.

A number of new models were introduced in the 1970s, including the three-wheeler
goods carrier and Bajaj Chetak early in the decade and the Bajaj Super and three-
wheeled, rear engine Autorickshaw in 1976 and 1977. Bajaj Auto produced 100,000
vehicles in the 1976-77 fiscal year alone.

The technical collaboration agreement with Piaggio of Italy expired in 1977. Afterward,
Piaggio, maker of the Vespa brand of scooters, filed patent infringement suits to block
Bajaj scooter sales in the United States, United Kingdom, West Germany, and Hong
Kong. Bajaj's scooter exports plummeted from Rs 133.2 million in 1980-81 to Rs 52
million ($5.4 million) in 1981-82, although total revenues rose five percent to Rs 1.16
billion. Pretax profits were cut in half, to Rs 63 million.

New Competition in the 1980s

Japanese and Italian scooter companies began entering the Indian market in the early
1980s. Although some boasted superior technology and flashier brands, Bajaj Auto had
built up several advantages in the previous decades. Its customers liked the durability of
the product and the ready availability of maintenance; the company's distributors
permeated the country.

The Bajaj M-50 debuted in 1981. The new fuel-efficient, 50cc motorcycle was
immediately successful, and the company aimed to be able to make 60,000 of them a
year by 1985. Capacity was the most important constraint for the Indian motorcycle
industry. Although the country's total production rose from 262,000 vehicles in 1976 to
600,000 in 1982, companies like rival Lohia Machines had difficulty meeting demand.
Bajaj Auto's advance orders for one of its new mini-motorcycles amounted to $57
million. Work on a new plant at Waluj, Aurangabad commenced in January 1984.

The 1986-87 fiscal year saw the introduction of the Bajaj M-80 and the Kawasaki Bajaj
KB100 motorcycles. The company was making 500,000 vehicles a year at this point.

Although Rahul Bajaj credited much of his company's success with its focus on one type
of product, he did attempt to diversify into tractor-trailers. In 1987 his attempt to buy
control of Ahsok Leyland failed.

The Bajaj Sunny was launched in 1990; the Kawasaki Bajaj 4S Champion followed a year
later. About this time, the Indian government was initiating a program of market
liberalization, doing away with the old 'license raj' system, which limited the amount of
investment any one company could make in a particular industry.

A possible joint venture with Piaggio was discussed in 1993 but aborted. Rahul Bajaj told
the Financial Times that his company was too large to be considered a potential
collaborator by Japanese firms. It was hoping to increase its exports, which then
amounted to just five percent of sales. The company began by shipping a few thousand
vehicles a year to neighboring Sri Lanka and Bangladesh, but soon was reaching markets
in Europe, Latin America, Africa, and West Asia. Its domestic market share, barely less
than 50 percent, was slowly slipping.

By 1994, Bajaj also was contemplating high-volume, low-cost car manufacture. Several
of Bajaj's rivals were looking at this market as well, which was being rapidly liberalized
by the Indian government.

Bajaj Auto produced one million vehicles in the 1994-95 fiscal year. The company was
the world's fourth largest manufacturer of two-wheelers, behind Japan's Honda, Suzuki,
and Kawasaki. New models included the Bajaj Classic and the Bajaj Super Excel. Bajaj
also signed development agreements with two Japanese engineering firms, Kubota and
Tokyo R & D. Bajaj's most popular models cost about Rs 20,000. 'You just can't beat a
Bajaj,' stated the company's marketing slogan.

The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw were introduced in 1997. The
next year saw the debut of the Kawasaki Bajaj Caliber, the Spirit, and the Legend,
India's first four-stroke scooter. The Caliber sold 100,000 units in its first 12 months.
Bajaj was planning to build its third plant at a cost of Rs 4 billion ($111.6 million) to
produce two new models, one to be developed in collaboration with Cagiva of Italy.
New Tools in the 1990s

Still, intense competition was beginning to hurt sales at home and abroad during the
calendar year 1997. Bajaj's low-tech, low-cost cycles were not faring as well as its rivals'
higher-end offerings, particularly in high-powered motorcycles, since poorer consumers
were withstanding the worst of the recession. The company invested in its new Pune
plant in order to introduce new models more quickly. The company spent Rs 7.5 billion
($185 million) on advanced, computer-controlled machine tools. It would need new
models to comply with the more stringent emissions standards slated for 2000. Bajaj
began installing Rs 800 catalytic converters to its two-stroke scooter models beginning in
1999.

Although its domestic market share continued to slip, falling to 40.5 percent, Bajaj
Auto's profits increased slightly at the end of the 1997-98 fiscal year. In fact, Rahul Bajaj
was able to boast, 'My competitors are doing well, but my net profit is still more than the
next four biggest companies combined.' Hero Honda was perhaps Bajaj's most serious
local threat; in fact, in the fall of 1998, Honda Motor of Japan announced that it was
withdrawing from this joint venture.

Bajaj Auto had quadrupled its product design staff to 500. It also acquired technology
from its foreign partners, such as Kawasaki (motorcycles), Kubota (diesel engines), and
Cagiva (scooters). 'Honda's annual spend on R & D is more than my turnover,' noted
Ruhal Bajaj. His son, Sangiv Bajaj, was working to improve the company's supply chain
management. A marketing executive was lured from TVS Suzuki to help push the new
cycles.

Several new designs and a dozen upgrades of existing scooters came out in 1998 and
1999. These, and a surge in consumer confidence, propelled Bajaj to sales records, and
it began to regain market share in the fast-growing motorcycle segment. Sales of three-
wheelers fell as some states, citing traffic and pollution concerns, limited the number of
permits issued for them.

In late 1999, Rahul Bajaj made a bid to acquire ten percent of Piaggio for $65 million.
The Italian firm had exited a relationship with entrepreneur Deepak Singhania and was
looking to reenter the Indian market, possibly through acquisition. Piaggio itself had
been mostly bought out by a German investment bank, Deutsche Morgan Grenfell
(DMG), which was looking to sell some shares after turning the company around. Bajaj
attached several conditions to his purchase of a minority share, including a seat on the
board and an exclusive Piaggio distributorship in India.

In late 2000, Maruti Udyog emerged as another possible acquisition target. The Indian
government was planning to sell its 50 percent stake in the automaker, a joint venture
with Suzuki of Japan. Bajaj had been approached by several foreign car manufacturers in
the past, including Chrysler (subsequently DaimlerChrysler) in the mid-1990s.

Employment fell from about 23,000 in 1995-96 (the year Bajaj suffered a two-month
strike at its Waluj factory) to 17,000 in 1999-2000. The company planned to lay off
another 2,000 workers in the short term and another 3,000 in the following three to four
years.
Principal Subsidiaries: Bajaj Auto Finance Ltd.; Bajaj Auto Holdings Ltd.; Bajaj Electricals
Ltd.; Bajaj Hindustan Ltd.; Maharashtra Scooters Ltd.; Mukand Ltd.

Principal Competitors: Honda Motor Co., Ltd.; Suzuki Motor Corporation; Piaggio SpA

Marketing mix of Bajaj – Bajaj marketing mix.

Bajaj is one of the oldest Indian brands that serve a worldwide network. Founded in the year
1926 by Jamnalal Bajaj, the corporation has its headquarters in Pune, India. This largest
public company has many subsidiary companies under its flagship like Bajaj Auto, Bajaj
Electricals, Bajaj Hindustan and Mukand ltd. The brand under Rahul Bajaj is involved in
various sectors of the industry like automobiles, electrical and finance. It is one of the most
respected groups of India renowned for its business acumen. Some of its competitors are as
follows-

 Videocon

 Sony

 Panasonic

 Philips

 Hair

 LG

 Godrej

Product in the Marketing mix of Bajaj

Bajaj has managed to deal successfully in various industries like Insurance, Iron and
steel, electrical, home appliances, automobile and finance. All its products are
designed with the help of science and use of latest technology. Under the automobile
sector, it deals in the manufacturing and selling of scooters, cars and motorcycle
models of 150 cc, 125 cc and 100 cc like Platina, Discover, Pulsar, Avenger and
XCD. The company is a trader and exporter of construction equipment like
scaffolding, jacks, stair case tower clamps and special parts of machinery.
Bajaj’s home appliances products include food-processing items like mixer grinder, food
processor, blenders, cooking products like pressure cookers, microwave, ovens, toaster, cook
tops, pop-up toasters, electrical kettles for making tea and coffee, water heaters, iron, fan
lighting, inverters, water heaters and domestic pumps. The group’s consumer goods section
includes hair care items like almond oil, jasmine hair oil, skin care items like face wash, ,
face scrub, face pack, soap, anti-marks cream etc. The Bajaj Group also has an interest in
sugar industry along with real estate, power generation and infrastructure development.

Place in the Marketing mix of Bajaj

Bajaj has a distribution policy that is very organized and efficient. As the company deals in
various types of products, it has an extensive distribution network. It has set up various
manufacturing plants in various localities that help in the easy and low cost manufacture of
their products in terms of labor and raw materials. Bajaj group started its first steps in a place
called Lakhimpur Kheri in Uttar Pradesh with a Sugar factory.

Today it has numerous manufacturing plants for various products. Taking the legacy of Bajaj
brand name forward, the companywith an extended financial support has established a highly
experienced management team. For distribution purposes, the company relies heavily on its
dealership network. It consists of depots and the various other C & F agents. Various depots
are at various strategic points for the transfer of some of its heavy products.

The company also has a network of far-reaching dealers and service centers to distribute the
goods at an easy and regular pace. In order to distribute various and genuine parts of its
products, the company has set up various outlets where genuine parts are easily available to
the consumer. The company has a network of showrooms owned by the dealers as well as by
the owners.
For its consumer goods category including home appliances, the company has various
warehouses where it stores its products safely and at a convenient distance. All the products
are easily dispatched to the showrooms where the consumers can purchase them. Online
purchase facility is also available for most of its products.

Price in the Marketing mix of Bajaj

Bajaj has a wide variety of products under its belt and hence its pricing policies for every
category differ from the other. For its consumer goods and home appliances category it has
kept a competitive pricing strategy in order to counter the effect of its rival companies.

For its automobile sector, it has gone for both premium pricing policy for motorcycle like
Pulsar and competitive pricing policy for other products. In some cases, where the company
has decided to enter a new market it has opted for a penetration pricing policy. For this, the
prices are at reasonable rates to attract new customers.

In order to maintain their own loyal customer base they also give out gifts and discounts
along with special coupons. This helps in the lowering of actual prices making the customers
happy and satisfied. However, in the entire cases one thing is clear that the company has
opted for fewer profit margins then to compromise with the quality of its products. The brand
has adopted the value added pricing strategy for some of their products also. Here some
products are at a premium rate while other products are affordable and very reasonable.

Promotions in the Marketing mix of Bajaj

Bajaj has always relied heavily on its promotional activities. It has created some very creative
ads that have improved the visibility of the Bajaj Group and its products. Its logo has changed
with the times. The logo “Hamara Bajaj” with a capital “B” inside a hexagon shape was later
interchanged with another logo of flying “B” that was a symbol of the company moving
forward from lower to upper and high caps. The essence and core values of the brand name
remained the same.

Since the formation of the company, Bajaj has believed that the way forward is with beautiful
and informative advertisement. In all its ads, it has emphasized on the happy Indian family
and hence all its ad campaigns have been very popular. In order to target the youth, Bajaj has
come up with ads that are dynamic, trendy, stylist and vibrant. Famous actor Kangana
Ranaut has acted in the Bajaj Almond hair oil advertisement.

The advertisements for most of the Bajaj products are in the print media like various
magazines and newspapers. The company has utilized the medium of television and radio to
its full capacity airing and showing trendy and attractive commercials at regular periods.
Online medium has also been in use as all the relevant information can be gathered from
there.

Subsequently, the consumers can easily log on to the various shopping sites as well as the
Bajaj official site and place their orders for their desired purchases. It has also announced
schemes and periodic discounts on some of its products to create awareness about its products
and to increase its sales. Bajaj has become a famous household brand linking families
together because of its qualitative products and its superior promotional activities.

4P's Of MARKETING:
PRODUCT NAME: BAJAJ PULSAR 1.
PRODUCT: PULSAR DTSi Before the introduction of the Pulsar, the Indian
motorcycle market trend was towards fuel efficient, small capacity motorcycles (that
formed the 80-125 cc class). The launch and success of Hero Honda CBZ in 1999
showed that there was demand for performance bikes. Bajaj took the cue from there
on and launched the Pulsar twins in India on November 24, 2001. To capitalize on the
growing market of performance and high end bikes Bajaj launched a series of models
under the Brand name of Pulsar since its inception in 2001. 1.PRODUCT ● Brand
Name : Bajaj Pulsar DTS-SI Specification ● All black engine ● Aerodynamics Flaps
● aggressive mask fairing with wolf eyed headlamp.
● Black lit LCD digital speedometer.
● Twin slashed LED tail lamp. Safety Features:
● New radical clear lens headlamp with opto-prism multireflectors and halogen bulbs
not only add-on in style but also illuminates the road brighter.
● The multi reflector tail lamp along with rear number plate illuminator enables
visibility from distance to others on the road that ensures safer night driving.
● Brighter and wider front fork with increased wheel base gives the bike better road
holding and balancing characterstics.
● The engine is safe guarded efficiently from mechanical destructions at higher
engine RPM by engine RPM Limiter which is placed in the micro processor based
CDI unit. 2. PRICING Pricing Strategy Bajaj Auto follows Market Skimming strategy
for Pulsar. This is done for the following reasons:
l. To price Pulsar at the levels which its major competitors like Hero Honda, TVS and
Yamaha have priced their products.
2. The high price of the product communicates the superiority of Pulsar over its
competitors. Prices of various models of Bajaj Pulsar Bajaj Pulsar 150 CC price in
Delhi : Rs. 60,000.00 Bajaj Pulsar 180 CC price in Delhi : Rs. 62,000.00 Bajaj Pulsar
200 CC price in Delhi : Rs. 72,000.00 Bajaj Pulsar 220 CC price in Delhi : Rs.
87,000.00 3.PLACE: Placing Process of a product basically involves deciding
Channels, Coverage, Assortments, Location, logistics etc. Under Placing Activity
Bajaj Auto Ltd. uses Pull strategy for Pulsar i.e. Bajaj auto uses advertising,
promotion and other forms of communications to persuade consumers to demand the
product. Distribution Channels: Bajaj Auto Ltd. uses 1- Level distribution channel. It
is Manufacturer—Retailer-- Consumer.
● Market Coverage: Bajaj Auto Ltd. has a wide network of dealers in urban and semi
urban regions. 4.PROMOTION: As discussed above Bajaj Auto Ltd. uses pull strategy
to promote its Pulsar brand. For this purpose company uses various Marketing
communication programs like
● Advertising:
l. Bajaj Auto Ltd. has been known for its advertisements. Its advertisements used to
convey the feeling of Indianness in its ads with its tag line “naye Bharat ki nayi
tasveer, humara Bajaj”
 2. The concept of “Definitely Male” was brought in with the launch of Pulsar to
target the youth customers and it was well accepted by the market.
3. The punch line “Definitely Male” was later converted to “Distinctly Ahead” to
project its technological superiority over its competitors.
● Events And Experiences Bajaj Auto Ltd. promotes its various brands through
exhibitions, local fares, auto shows, Television Shows, test drive services etc.
●Sponsorships Bajaj sponsors various events to promote its products. For example it
sponsors a T.V. program called “ Stunt Mania” broadcasted on M T.V. 4P's Of
MARKETING PRODUCT NAM
Bajaj Auto is one of the oldest manufacturers of two and three wheelers in India, operating
since the 1960's. It started primarily as a scooter manufacturer and over the course of time
switched the segment to produce motorcycles. Today Bajaj offers motorcycles in almost
every bike segment and in each body style. Platina, Discover, Pulsar, Avenger, Ninja, RE and
KTM are some of the famous brands in the company's kitty. Past 5-10 years have been very
eventful for the Bajaj. Many fate-changing strategic and operation

Exit from scooters

Let us take bit of a flashback into the 70's and imagine a world in B&W. Bajaj introduced its
first indigenous scooter brand - Chetak. Its practicality and reasonable price made it a
blockbuster product for the company. Bajaj's name became synonymous with scooters, just
like Colgate stood for toothpaste. In the 80's the company spawned few more brands like
Priya, Super etc. and the brand slogan 'Humara Bajaj' was ubiquitous. In the absence of a
formidable competition, the company had a near monopoly in two-wheelers.

Hero Honda's entry in 1984

HH started offering motorcycles to the Indian customers. Share of motorcycles among two
wheelers increased gradually. Bajaj kept its fingers crossed on the scooter segment.

Entry of Honda Motorcycles and Scooters India in 2001

HMSI launched Activa gearless scooter which quickly became a success because of its easy
handling, electric start, refined engine and distinct looks. Customers started migrating
towards Honda and Bajaj's geared scooters began to appear ancient. Undisputed leadership
often leads to indifference and ignorance (remember Kodak?). Bajaj went into a dormant
state and failed to wake up to changing market dynamics until it was too late. It tied up with
Kawasaki to enter into motorcycles in 1986 but found itself lagging behind. The iconic
Chetak ran on ventilator support and was killed in 2005.
In a last minute attempt to salvage volumes, Bajaj came up with its gearless scooter 'Kristal'
in 2006 which failed miserably. Once a dominating force, their market share fell significantly
by 2009. MD Rajiv Bajaj decided to vacate the scooter segment citing focus on motorcycles.
This is where we feel the company left the mine just before striking gold. Increased
acceptance of modern gearless scooters among all age groups led to a phenomenal growth of
this segment. Share of scooters has increased from 14 per cent in FY08 to about 25 per cent
in FY14 and the absence of Bajaj served the growth pie in a platter to Honda, that too for
free!
The idea to completely back off from scooters was not the ideal one because Bajaj had an
extremely strong image of a scooter manufacturer with a high brand recall. 'Humara Bajaj'
jingle still resonated with people. That image had to be shed and converted to Bajaj as a
motorcycle maker, which was extremely tough even after spending truckloads of money on
promotion. A new manufacturing plant along with R&D and product development facilities
had to be established, which meant spending of more money.
Bajaj's dealers which were used to sell scooters now had to be re-trained to sell motorcycles.
Also, the distribution network had to be modified. Add few more truckloads of money. Cost
of lost opportunity. Probably worth more truckloads of money than the above three
combined. If Bajaj stayed and captured even 15 per cent of the market, it would have earned
more volumes than it currently gets from Platina.
Absence from scooter segment will continue to hurt Bajaj as scooters are likely to grow faster
than motorcycles in the years to come.

Entry into Motorcycles

Bajaj's motorcycle journey began in 1986 with economy bike KB100 in collaboration with
Kawasaki of Japan. The bike stayed in production for 10 years and spawned several variants.
It was replaced with Boxer in 1997 which was further succeeded by CT100 in 2004.
Executive commuter bike Caliber was launched in 1998 and managed 1 lakh units within 12
months. It got succeeded by Wind 125 standard street bike in in 2003. This bike was
rebadged within a year as Discover for the 125cc segment and the 100cc version was
launched as Platina in 2006.
Bajaj entered the Premium bike segment with Pulsar and Eliminator in 2001. The Pulsar
brand turned out to be a huge success for the company. Tens of design changes and hundreds
of variants later it still continues. Eliminator was eliminated in 2005 and replaced with
Avenger in 2005.
Bajaj also has a partnership with Austrian manufacturer KTM in which it also holds a 48 per
cent stake. The KTM models available in India are Duke 200, Duke 390, RC200 and RC390.
Next we break down Bajaj's performance in each segment and check if there is a devil in the
details.

Motorcycles (75-110cc)

This is the segment which brings the highest volumes to the motorcycle market. Even a few
percentage points of market share would translate into numbers in 5 digits. Keeping that in
mind, Bajaj lost 1.87 per cent of its market share in 2014, even though the segment witnessed
a decent growth of 4.44 per cent.
The company's range of Discover 100/100 M and Platina 100/ 100 ES finds itself hammered
by market leader Hero Motocorp's onslaught through Splendor/ Passion/ HF Deluxe/ HF
Dawn range of motorcycles, which sell almost 4 times in volumes. Clearly Bajaj falls short of
offerings here and needs to introduce fresh products if it wants to capture a larger pie of this
segment.
The exports however show a complete role reversal. Bajaj effectively dominates the market
more or less holding on to its share of almost 74 per cent over the past three years. The Boxer
and CT 100 brands of motorcycles, which are exclusively made for exports have been well
received in the foreign markets. In fact, Boxer is the leading brand in Africa among all
competitors. The company's exports grew 3.26 per cent in FY14 while the total exports in the
segment grew by 4.43 per cent.

Motorcycles (110-125cc)

The fall in Bajaj's market share in this segment can be compared to the fall in crude oil prices
over the past one year, both have nearly halved. Bajaj lost 12.35 per cent of its market share
in 2014, while the segment grew a miniscule 0.39 per cent over the previous year. Whatever
share of pie was lost by Bajaj seems to have been equally distributed between Hero and
Honda. This drastic performance of the company in a segment where it held one-third of the
market needs to be probed deeper. The Discover brand has been losing its significance despite
having given several product updates. What Bajaj has done is that they have extended the
brand in both the upper 150cc segment and the lower 100c segment along with tens of
variants. Two things could have happened here: Brand Dilution - presence in three different
segments confused customers what Discover actually stands for, so they migrate to the
competitors.

Cannibalization - A price sensitive buyer goes for the lower segment for more value for
money and a performance seeking buyer opts for the upper segment rendering the middle
segment of no consequence. The picture was not that bad in the exports where Bajaj lost 2.63
per cent market share over FY13 though there was an increase in the absolute numbers by
12.11 per cent over the previous year. The company holds 56.49 per cent of the exports in this
segment. TVS and Suzuki, though exporting much lower numbers are steadily increasing
their share.

Motorcycles (125-150cc)

This segment is yet another headache for Bajaj and for the industry as a whole. The segment
volumes have shrunk by 20.67 per cent over the past two years while that for Bajaj have
declined even faster at 36.76 per cent. As a result, Bajaj's market share has dwindled by a
significant 10.42 per cent to land at 40.94 per cent.
A sigh of relief for Bajaj is that they still hold the leadership position in this segment and are
fairly ahead of their closest competitor Honda which holds 26.67 per cent share. However, if
this downward trend continues for another year their leadership position may be well within
arm's reach of Honda.
The Pulsar 150 has been Bajaj's star product since its inception and its 'performance' bike
image has clicked with the Indian customers. However, the company has given it the same
treatment as the Discover. Pulsar now comes in 5 different engine options -
135/150/180/200/220 cc.
Bajaj has historically followed the strategy of putting more focus on the higher engine size
segments. The company has also launched the Discover 150cc in 2014 to reinforce their
market presence. Though these segments contribute a lower volume as compared to executive
bikes, they are expected to grow significantly in the long term as the customers move
upmarket. If that happens, Bajaj might have a competitive edge by having a stronger brand
and a wider product portfolio.
The situation on the export side looks much worse than the domestic. The segment returnedto
almost the same volumes in 2014 as it had in 2012 but sadly Bajaj's did not. Their volumes
got eroded by 22.32 per cent. As a result, the share of exports dwindled from 65.51 per cent
in FY12 to 51.05 per cent at the end of FY14. The volume eater for the company here is
Yamaha Motors whose share increased from 20.79 per cent to 33.98 per cent over the two
years. Here too, Bajaj's leadership position is under grave danger and the panic button should
have been pressed by now.

Motorcycles (150-200cc)

This segment has only two players fighting with each other. Bajaj offers the Pulsar 180 and
200NS along with KTM Duke 200 and RC 200 while TVS's Apache RTR is their lone fighter.
Contrary to expection, this lone fighter completely demolishes the comparatively fresh
opposition single handedly. In FY14, TVS snatched away 10.20 per cent market share from
Bajaj despite the product onslaught by the latter. This being a more premium segment with
major customers being the urban youth, the importance of brand is significant. Keeping that
in mind, having a strong domestic brand like Pulsar and a global brand like KTM has not
helped Bajaj salvage its volumes.
On the other hand, exports in this segment have seen stellar growth for the company. Over the
past two years Bajaj's volumes have grown by 171%, much faster than the overall export
growth of 72 per cent. Much of this success is credited to new model launches namely Pulsar
200NS and KTM RC200.

Motorcycles (200-250cc)

This segment is a three sided battle among Pulsar & Avenger 220 from Bajaj, Karizma from
Hero and CBR 250R from Honda, all of which are strong and popular brands. However, it's
Bajaj which scores a convincing win over the others. Despite the segment volumes declining
by 6.34 per cent since FY12, Bajaj has increased its market share from 57.29 to 67.87
percent. In absolute terms, out of 137454 units sold in 2014, 93290 units belonged to Bajaj.
Once a marginal entity, the Avenger has now caught the fancy of urban Indians who want to
ride cruisers. In FY14, the company sold about 41,000 Avengers and its demand has been
increasing within a niche section of customers. Bajaj commands a major share of the exports
in this segment and represented 78.63 per cent of the volumes in FY14. However, being an
upper segment the volumes are comparatively low. On top of that, export volumes of the
segment have declined by 56.12 per cent and that of Bajaj have gone down by 64.09 per cent
in the span of two years.

Motorcycles (350-500cc)

Bajaj is a recent entrant in this segment with the KTM RC390 launch in 2014. The good news
here is that in the first year itself the bike has managed to capture 15.85% of the market and it
is expected to increase more by this year end. With its trademark orange frame and alloy
wheels, the KTM's have become quite a rage among the youth in urban India. The rest of the
segment belongs to the Royal Enfield heavyweights. RC390 provides a sports bike body style
in this segment which otherwise has only street and cruiser bikes, hence offering a new
proposition to attract buyers. Bajaj has exported more KTM's than it has sold in the domestic
market and it has led to more than four-fold increase in the export volumes of this segment.

Commercial vehicles - three wheelers

Bajaj is the world's largest producer and India's largest exporter of three wheelers. The
company's brand RE (which stand for Rear Engine) range has three wheelers running on
diesel, alternative and hybrid power. In FY14, Bajaj held 39 per cent share in the domestic
market but sales numbers declined. The drop can be attributed to sluggish economy and lower
issue of permits by transport authorities. The competition from Piaggio and Mahindra is also
increasing in this space. Numbers did grow in exports but slower than the overall market. As
a result, share of exports dropped down from 83.8 per cent in FY13 to 73.8 per cent in FY14.
The control still stays with Bajaj here.

The re-branding exercise gone haywire

In the beginning of 2011, Bajaj decided to withdraw its family name from its products and
develop individual brands having their own identity. The rationale behind this was since Bajaj
group diversified into areas like electrical, finance etc, having the family name would confuse
the buyer what they actually stand for. So basically, Bajaj had restructured itself from a
branded house (many products under an umbrella brand) to a house of brands (separate
brands owned by a parent). For exampleVolkswagen is a house of brands - Audi, Bentley,
Lamborghini function separately and do not carry VW badge anywhere. Though aimed at
reducing confusion the exercise seems to have created just that. The brands now functioning
independently are poaching into each other's territory. Discover has stepped into Platina's
segment, Pulsar has model in KTM's space etc. These overlaps create misunderstandings in
terms of positioning resulting in diluted brands and cannibalization of sales. Bajaj has seen its
market share decline since then.
The big picture

Overall, the Indian domestic motorcycle market has grown 42.75 per cent by volumes since
FY10. Sales reached at an all-time high of 10.47 million units in FY14. For Bajaj on the other
hand, the situation is not that rosy. From a market share peak of 26.80 per cent in FY11, the
company has had three consecutive years of declining market share. The last year was the
worst of the lot as Bajaj lost 4.4 per cent market share pulling it down to 20 per cent.
A major chunk of this loss is credited to the dismal performance of Discover in the high
volume sub- 125cc segment. Bajaj has made a classic mistake of line extension of a fading
brand in the hope of increasing sales. This coupled with new product launches and aggressive
sales promotion by the competition has only made matters worse. Bajaj would have to
reframe its strategy for the commuter bike segment if it wants to stay relevant.
Moving over to exports, the ball is in Bajaj's court and they are keeping it with themselves.It
seems they are doing things right everywhere except in India. They have maintained their
dominance and driven the Indian motorcycle exports with their growth. Over a five year
timeframe since FY10, industry exports have grown by 79.74 per cent in tune with Bajaj's
exports swelling by 82.50 per cent. The only speed breaker in an otherwise smooth road for
the company has been the decline in market share in FY14. Bajaj's share in exports came
down by 2.60 per cent to 66.70 per cent.
The reason why exports have been givenmuch attention all through the analysis is explained
when we consider the domestic vs. export revenues of the company. Exports are contributing
an increasingly higher share of revenues over the years. From 28.2 per cent in FY10, the
share has risen to 41.6 per cent of total income in FY14. In this time frame, there has been a
151 per cent increase in export revenues while domestic earnings increased by 38.39 per cent
only.
If the trend continues, we might see Bajaj earning more from exports within the next two
years, laughing its way to the bank in front of other domestic players saying, "Heck! If
wecouldn't get much cash from our home, we earn it from outside."
Looking at Bajaj's financials in isolation would not have given us much to talk about so we
decided to compare it against the biggest fish available in the two-wheeler market - Hero
Motocorp. This is when interesting insights begin to surface.
In FY14 Hero sold about 6.24 million units including scooters whereas Bajaj managed 3.42
million motorcycles,just 54.79 per cent of Hero's sales.
But when it comes to earnings, we do not see the two companies separated by such a huge
margin but very much comparable. Bajaj earned Rs. 20158 croe as net revenue in FY14,
which is 80.23 per cent of what Hero netted. This basically indicates that though Hero sells
much more units, Bajaj earns much more PER unit. In fact they earn highest margins in the
industry.
But that's still not the biggest surprise. Start comparing profits of both firms and its Bajaj
which leaves Hero behind by the same margin it lost out in unit volumes. Bajaj's net profits
were 3234 crore in FY14, which is 53 per cent more than that of Hero. And this is not an
anomaly, it has been a trend since FY11. Hero's profitstry to jump but gravity seems to pull
them back.
The road ahead Bajaj totally lost its balance in the scooter segment and skipped an
opportunity. In motorcycles too, domestic sales have gone downhill and competitors are
closing in fast. Had it not been for the exports, Bajaj would have been bleeding profusely.
Where would they have been if they fought back in scooters or had volumes like Hero?
So where does it leave us on Bajaj? Should we criticize them for losing their domestic market
share or applaud them for earning highest profits in the industry?
In the future we expect to see more variants of Pulsars and Platinas being rolled out. Discover
needs some urgent attention to stop its free fall. Bajaj wants to create a whole new segment of
Quadricycles with its RE60 but it has been caught in controversies regarding its safety and
operation. It has to wait for the government classification and rules for this type of vehicle.

UNITS :::

Machining Unit – 1
Located on the Delhi-Jaipur Highway on
39 -40 milestone, Bajaj Motors Limited is
certified from TUV GmBH, Germany.
Since its inception in 1986, BAJAJ
MOTORS has its specialization in
Machining of Auto
components specifically
PrecisionEngine Components.

Export Orientation is the hallmark of

this plant. This unit has started production
since March 2006.

Forging Unit
Fully Equipped with all facilities, The
Forging plant is located at Gurgaon. The
plant started its commercial production in
the Year 2001. It is a TS-16949,ISO-
14001 certified from TUV GmBH,
Germany.
Foundry Unit

Casting Plant of Bajaj Motors Ltd. established

in 2006, at Bhora Kalan, Binola Industrial area,
Gurgaon, India spread over an area of 6 acres
and is a backward integration.

The specialization of Bajaj Motors Casting

Plant is Shell Moulding and Green
Sand casting .

Machining Unit 2
Located at Pantnagar Industrial Area
(Uttrakhand), was started in 2007 and is
spread over an area of 5 Acres. It is
equipped with a Forging
Plant and Precision Auto Components
manufacturing.

Machining Unit 3

Located at Industrial Park IV in Haridwar

(Uttrakhand), was started in 2010. It is a
state of art Precision Auto Components
manufacturing Facility .

Machining Unit 4

Located at Sector -8 IMT Manesar,

Gurgaon.
POLICIES :::

Integrated Management System (IMS) ::

BAJAJ MOTORS LTD. is committed to demonstrate Value added and environment

friendly products with on time delivery to our customers for delightment by
establishing proactive based manufacturing, fostering team work with continual
improvement and a healty & amicable environment in the orgonization.

Vigil Mechanism Policy

Remuneration Policy

CSR Policy

VISION :::

To attain World Class Excellency by demonstrating Value Added products to customers

Gross Turnover (USD Millions)

MISSION :::

Focus on value based manufacturing

Fostering team work & enhancing the capability of the team

Continual Improvement

Total Elimination of wastes

Pollution Free & Safe Environment

MILESTONES :::
.

Year Milestones
1989 Start of Bajaj Motors Ltd.

1995 Establishment of Current Location Bajaj Motors Ltd.

1998 Introduction of Flexible Manufacturing Concept.

2000 Establishment of Microtek Forgings as Backward Integration.

2004 Started Export Activities.

2005 Integrated Management System Certification of BML, from TUV, Germany.

2006 Establishment of Ferrous Casting, as backward Integration.

2007 IMS Certification Microtek Forging .

Established Aluminium Forging.
Plant at Pantnagar .

2010 Plant at Haridwar for HHML .

2011 New Dedicated Export Line for Machining in IMT Manesar, Gurgaon.

2012 New Forgong Plant at Bawal Industrial area, Gurgaon

STRENGTH :::
Total solution provider for Forging, Casting & Machining Components under single
umbrella.
Precision part maker.
Global Supplier.
Critical products with high reliability.
Single Source Supplier to Major OEM’s.
Direct On Line (DOL) Supplier to all Customers.
Capable of handling large volume products.
Prototype Design & Development Facility.
Short lead time for New Product Development (2 to 4 Weeks) .
Trained and highly motivated workforce .
Focus on Customer Delight Besides Customer Satisfaction .
Bajaj Auto Limited is an Indian two-wheeler and three-wheeler manufacturing
company. Bajaj Auto manufactures and sells motorcycles, scooters and auto rickshaws. Bajaj
Auto is a part of the Bajaj Group. It was founded by