Transcript of Rural marketing strategy Bajaj Auto
- 1. Presented By 1 RURAL MARKETING STRATEGY OF BAJAJ
- 2. DEFINING RURAL INDIA RURAL RETAIL SCENARIO IN INDIA BAJAJ
RURAL STRATEGIES CASE STUDY OF BOXER 150 VIDEO DEMO July 6, 2013 2
CONTENTS
- 3. Census of India defines Rural Settlements as Population
lower than 5,000 persons Population density lower than 400
persons/sq. km At least 75% of male population engaged in Agri.
activities. July 6, 2013 3
- 4. RURAL SCENARIO RETAIL TOWARDS RURAL AREAS GREAT
OPPORTUNITIES FOR MARKETER THE INDIAN RURAL MARKET July 6, 2013
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- 5. RETAIL TOWARDS RURAL AREAS Rural India consists of 720
Million consumers across 6,38,000 villages 17% of these villages
account for 50% of the rural population and 60% of the rural wealth
Extensive reach is required as to cover 50% market 1,00,000
villages must be catered Immense opportunity amounting to US$ 125
billion 5
- 6. Triggering Rural economy Creates Purchasing Power by
focusing on increasing Income Levels July 6, 2013 6
- 7. THE INDIAN RURAL MARKET The Rs.140,000 Crore rural retail
market is expected to cross Rs.180,000 Crore mark by 2012, And up
to Rs.240,000 Cr by 2015 (CII). The rural revolution is driven by
Rising purchasing power Changing consumption patterns Increased
access to information and communication technology Improving
infrastructure Increased government initiatives to boost the rural
economy July 6, 2013
- 8. RURAL OCCUPATION STATISTICS July 6, 2013 8 OCCUPATIONS URBAN
RURAL Cultivator 5 40 Petty Shopkeeper 15 5 Wage earner 20 35
Salary earner 40 20 Others 18 8
- 9. THE RURAL CONSUMER Is a value seeker Seeks comforts and
amenities Does not wish to be seen as the deprived cousin. Does not
experiment easily but this does not mean that he would not change.
Values local relationships because of unfavorable past experiences
July 6, 2013 9
- 10. Rural Business Challenges o Increasing costs of land o Pace
of expansion o High operating costs o Low purchasing power of
consumers Lack of literacy and awareness Low per capita income Wide
geographic spread. Gaps in road and Telecommunications
connectivity. Lack of reliable electricity and water supply Limited
Distribution network for example cold storage. Competition from
local players July 6, 2013 10
- 11. Bajaj Group Bajaj Group (pronounced is an Indian
conglomerate founded by Jamnalal Bajaj in 1926, Mumbai. Bajaj Group
is one of the oldest & largest conglomerates based in Mumbai,
Maharashtra. The group comprises 34 companies & its flagship
company Bajaj Auto is ranked as the world's fourth largest two- and
three-wheeler manufacturer. July 6, 2013 11
- 12. BAJAJ AUTO Bajaj Auto has the major competitor as Hero
Honda in rural and semi-urban markets which accounts for more than
half of two-wheelers sold in the country. Bajaj Auto 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. July 6, 2013 12
- 13. BAJAJ AUTO Bajaj Auto makes and exports automobiles,
scooters, motorcycles and auto rickshaws. Bajaj Auto is the world's
third-largest manufacturer of motorcycles and the second-largest in
India. The Forbes Global 2000 list for the year 2005 ranked Bajaj
Auto at 1,946. It features at 1639 in Forbes 2011 list. July 6,
2013 13
- 14. BAJAJ AUTO MARKET Bajaj Auto has about 27% of the two
wheelers market share The motorcycle segment constitutes about
81.5% of the two wheeler market in India. It also contributes to
three- fourths of the total exports in the two wheeler industry.
Bajaj is the second largest player in this segment after Hero
Honda. July 6, 2013 14
- 15. BAJAJ RURAL APPROACH The country's second largest
two-wheeler maker has appointed 135 dealers in small towns and mini
metros, where it had only 25 dealers, and will offer special
finance scheme for rural customers even if they have no bank
account. Bajaj Auto is going at full throttle to challenge market
leader Hero Honda in rural and semi-urban markets that account for
more than half of two-wheelers sold in the country. July 6, 2013
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- 16. BAJAJ RESEARCH STUDY Company has been conducting a lot of
market research in Rural Sectors and found that the rural customers
are seeking for bikes with wider tyres that gives more road grip,
which essentially requires higher engine power July 6, 2013 16
- 17. BAJAJ BOXER INTRODUCED New Product Introduction For Rural
Segment The company added another model, Boxer 150 cc which is
dubbed as 'Tank on Two Wheels' by August this year targeting the
rural market. Bajaj discontinued the boxer 100cc and 125cc variety
since the rural market has been experiencing the change as
reflected in the pattern of sales July 6, 2013 17
- 18. EASY LOAN FACILITY FOR RURAL AREAS Bajaj introduced easy
loan facility for the natives of Hingoli village in Maharashtra
Scheme Details Offered a special financing scheme backed by Bajaj
Auto Finance with a direct cash collection facility. That is,
customers need not provide post-dated cheques to avail of finance ;
they can pay the installments in cash. The loans will be given on
the basis of trust and initial verification and there will be no
collateral . The company has already tried this out in select areas
and, found default rate is much less than in the post-dated cheque
system. July 6, 2013 18
- 19. Bajaj Auto introduced seasonal collection strategy for
rural areas. This would mean that instead of monthly installments ,
rural customers can time their loan repayment to crop cycle, which
is 2-3 months for rice and wheat. RESULTS Bajaj Auto was able to
improve its market share to more than 30% with the rural push,
compared to the 27% share July 6, 2013 19 EASY LOAN FACILITY FOR
RURAL AREAS
- 20. Video Ad This Ad focuses on the Rural Segment It aspires a
common farmer to purchase the bike The Bajaj sales advisor
introduces him, with the easy finance option and the Farmer agrees
to go for the purchase The Joyful moments is shared in the video
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