MERA GAON MERA DESH (rural retail)

1Presented By Kunal Agarwal

RURAL MARKETING STRATEGY OF BAJAJ12/8/2013 1

1December 8, 20132Census of India defines Rural Settlements as

Population lower than 5,000 people.

Population density lower than 400 persons/sq. km

At least 75% of male population engaged in Agri-business. activities.2

RETAIL TOWARDS RURAL AREAS

3Rural 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 billion3The 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 .

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.4RURAL OCCUPATION STATISTICS5OCCUPATIONSURBANRURALCultivator540PettyShopkeeper155Wageearner2035Salaryearner4020Others1885 THE RURAL CONSUMER6Is a value seekerSeeks 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

6Rural Business ChallengesDecember 8, 20137 Increasing costs of land Pace of expansion High operating costs Low purchasing power of consumersLack of literacy and awarenessLow per capita incomeWide geographic spread.Gaps in road and Telecommunications connectivity.Lack of reliable electricity and water supplyLimited Distribution network for example cold storage.Competition from local players

7Bajaj GroupBajaj 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.

8BAJAJ AUTO 9Bajaj Autohas 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. 9BAJAJ AUTO 10Bajaj Auto makes and exports 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.10BAJAJ AUTO MARKET 11Bajaj 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.

11BAJAJ RURAL APPROACH 12The country's second largest two-wheeler maker has appointed 135 dealers in small towns and mini metros.

Offer special finance scheme for rural customers even if they have no bank account.

Bajaj Autois 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.

12BAJAJ BOXER INTRODUCED 13New Product IntroductionFor Rural Segment

The company added another model, Boxer 150 cc which is called as Bharat Bike 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

13December 8, 201314Bajaj Auto introduced seasonal collection strategy for rural areas.The loans will be given on the basis of trust and initial verification and there will be no collateral . 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.

RESULTSBajaj Auto was able to improve its market share to more than 30% with the rural push, compared to the 27% share.

EASY LOAN FACILITY FOR RURAL AREAS14Awareness campaignCampaign started in around 16000 villages.

Demo vans showcasing the bike.

Customers are offered free ride to get the feel of new Bajaj Boxer.

15Video AdThis Ad focuses on the Rural SegmentIt aspires a common farmer to purchase the bikeThe Bajaj sales advisor introduces him, with the easy finance option and the Farmer agrees to go for the purchaseThe Joyful moments is shared in the video 16

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