Bajaja Auto Ltd. t.y.b.b.A

7/31/2019 Bajaja Auto Ltd. t.y.b.b.A

1/39

PROJECT-REPORT

ON

MARKETING STRATEGY

OFBAJAJ AUTO LTD.

Undergone At : - Rajashri Auto Deals Pvt. Ltd.

PREPARED BY : - Vyas Harshit R.

CLASS : - T.Y.B.B.A.

COLLEGE : - Smt. M. T. Dhamasania College

ACADEMIC YEAR : - 2003 2004

ROLL NO. : 37

SEAT NO. :

SUBMITTED TO : - SAURASHTRAUNIVERSITY.

GUIDED BY : - Prof. T.R. Hathi


2/39

DECLARATION

I undersigned Mr.Harshit R. Vyas the student of Third Year

B.B.A. hereby declare that the project work presented in this report

is my own work and has been carried out by the Guidance ofProf.

Dr. Tushar R. Hathi of Smt. M. T. Dhamshaniya College of

Commerce & B.B.A.

This work has no been submitted to any other University on

any other Examination.

Year: - 2003-04

Signature


3/39

ACKNOWLEDGEMENT

It is really a pleasure for me to prepare a report at this stage, it

is my sincere they to thank all those who helped me directly or

indirectly during my training process.

First of all I would specially like to thanks our professor in

charge Dr. Tushar Hathi who has make the arrangements for my

training in Rajarshi Auto Deals Pvt. Ltd to know about Marketing

Strategies ofBajaj Auto Ltd.

After I would like to thank Executive to Rajarshi Auto Deals

Pvt. Ltd. Rajkot, for granting me permission for my practical

training. I am very thankful to Mr. Shwetal head of service

department for his valuable guidance, co-operation and sparing his

valuable time also.

At last but not lease I like to thanks my friends & family

members for their encouragement during the training period.

Place: - Rajkot Harshit Vyas

Year: - 2003-04 T.Y.B.B.A.


4/39

PREFACE

Industrial activity plats an important role in overall economic

development of the developing country like India. Industrial Visit is

a part of practical training contained in B.B.A. course.

B.B.A. is a special course of management, where the

management knowledge is given during the year and which is more

related with the practicability of it in the managerial field.

So, I am very please to get a chance to visit Rajarshi Auto

Deals Pvt. Ltd. and made the report on new marketing strategies of

Bajaj Auto Ltd.


5/39

College Certificate

Smt. M. T. Dhamshaniya College of

Commerce & B.B.A.

This is to certify that the industrial practical visit report

prepared on Marketing Strategies of Bajaj Auto Ltd. is the

original work ofMr. Harshit R. Vyas of Third YearB.B.A. This

report is prepared under my guidance and supervision.

This work is submitted to the University as part of curriculum

to go through in the examination.

(Signature) (Signature)

Dr. Tushar Hathi Mr. T. T. Raiyani

Prof. In Charge Principle


6/39

The Bajaj Group can into existence during the turmoil and the

heady euphoria of Indias freedom struggle. Jamanlal Bajaj, founder

of the Bajaj Group, was a confidante and disciple of Mahatma

Gandhi, and was deeply involved in the effort for freedom. The

integrity, dedication, resourcefulness and determination to succeed

which are characteristic of the company today, are often traced back

to its birth during those long days of relentless devotion to a

common cause.

Kamalnayan, the eldest son ofJamanlal Bajaj, succeeded his

father in 1942, at the age of twenty-seven. Putting the Nation before

business, he devoted himself to the latter only after India achieved

independence in 1947. But when he did so, he put his heart and soul

into it. Within a short while, he not only consolidated the Group, but

also diversified into various manufacturing activities, elevating the

Group to the status it enjoys till this day.

Rahul Bajaj today heads the Group. He has been the chiefExecutive Officer of Bajaj since 1968 and is recognised as one of

the most outstanding business leaders in India. As dynamic and

ambitious as his illustrious predecessors, he has been recognised and

international forums.

Bajaj is currently Indias largest two and three-wheeler

manufacturer and one of the biggest in the world. Bajaj has long left

behind its annual turnover of Rs. 72 million (1968), to currently

register an impressive figure of Rs. 42.16 billion (US$ 936 million).


7/39

Management Profile

Bajaj Auto Ltd. is ably managed by a team of seasoned professionals:

Rahul Bajaj Managing Director J. Sridhar Company Secretary

R. A. Jain Executive Director

Madhur Bajaj Vice Chairman

D. S. Mehta Wholetime Director

Rajiv Bajaj President

Sanjiv Bajaj Vice President (Finance)

Ranjit Gupta Vice President (Insurance)

N. H. Hingorani Vice President (Materials)

P. B. Menon Vice President (Projects)

R. L. Ravichandran Vice President (Business Development & Marketing)

C. P. Tripathi Vice President (Waluj)

Niladri Banerjee General Manager (Corporate Affairs), Delhi

Ramesh Bhargava General Manager (International marketing)

K. P. Chander General Manager (Machine Tool Division), Waluj

Kevin DSa General Manager (Finance)

R. V. Govind General Manager (Product Engineering)

Arvind Gupta General Manager (Manufacturing Engineering)

R. S. Gupta General Manager (Motorcycle Project Team), Waluj

N. V. Iyer General Manager (Engineering Support)

Anil G. Khopkar General Manager (Management Information Service)

G. B. Laddha General Manager (Finance)

Shrikant Marathe General Manager (R & D)

N. G. Maengane General Manager (Motorcycle Division), Waluj

K. P. Nair General Manager (Quality Assurance)

C. K. Rao General Manager (Marketing Three Wheelers)

V. M. Rao General Manager (Akurdi)

P. K. Rath General Manager (Chakan)

S. R. Rage General Manager (Maharashtra Scooters Ltd.)

D.K. Sharma General Manager (Production), Akurdi

HISTORY, GROWTH & DEVELOPMENT OF

RAJARSHI AUTO DEALS PVT. LTD.


8/39

The foundation of Rajarshi Auto Deals Pvt. Ltd. was in

1998 in Rajkot. The Rajarshi Auto Deals Pvt. Ltd. is a

partnership firm. The main partners are

1. Mr. Vipulbhai Kothari.

2. Mr. Shieetalbhai Kothari.

3. Mr. Jeetubhai Patel.

4. Mr. Ajitsinh Jadeja.

Rajarshi Auto Deals Pvt. Ltd. was started in 1998 with 3

crore Rs. of investment approximately. Now Rajarshi Auto Deals

Pvt. Ltd. value and goodwill is increase.

As a dealer ofBajaj Auto Ltd.Rajarshi Auto Deals Pvt.

Ltd. has been working in Rajkot science four year with good selling

performance.

History is the main principle ofRajarshi Auto Deals Pvt.Ltd. and they dont charge even a single rupee more than with the

liking and performance of the customer.

Today the Bajaj Auto Ltd. offer a unbeatable range of

motorcycles to suit possible need of customer by featuring the latest

technology of manufacturers of the highest quality standard.

The Rajarshi Auto Deals Pvt. Ltd. believes in discipline,

faith hardwork, success, and Rajarshi Auto Deals Pvt. Ltd.

already proved their believer.

PROJECT AT A GLANCE

Name of the Unit : Rajarshi Auto Deals Pvt. Ltd.


9/39

Address of the Unit : Rajarshi Auto Deals Pvt. Ltd.

Phone No : (0281) 374496, 375730, 375731

Registered Office : Rajarshi Auto Deals Pvt. Ltd., Nr.Malaviya College

Name of the ManagingDirector

: Vipulbhai Kothari

Name of MarketingManager

: Chandrakant R.

Name of the FinanceManager

: Tarvlata Makwana

Form of Organization : Dealership

Years of Establishment : 1998

Nature of Project : Consumer Durable

Dealership of : Bajaj Auto Ltd.Head Office : Bajaj Auto Ltd., Akurdi, Pune,

Maharashtra, India.

Ph.: 7472851

Fax: 7407392

INTRODUCTION

Marketing mix is the bridge that dimishes the gap between the

product and consumes without marketing all production activities

would be fulfill. Therefore more production is not enough. It isequally important to make the consumer aware of the goods


10/39

produced. After the consumer importance to distribute the goods to

all prospective consumers. But the marketing activities do not here.

The view and ideas of the consumers are taken into and the product

is to be changed according to the consumers needs. Thus the sum

total of all the activities undertaken to satisfy the consumers wants

and demands constitutes the activities of marketing.

Marketing is comprehensive firm and it includes all resources

and a set of activities necessary to direct and facilities to direct the

flow of goods and services from product to utility consumer in the

process of distributing. In other words marketing comprises of all

the activities involved in the determination and satisfaction of

consumer needs at a profit. Thus marketing encompasses all

activities of exchange conducted by producers and middleman in

commerce for the purpose of satisfying consumer demand.

In marketing planning, marketing information is used to

assess the situation specific marketing targets are selected in the

form market segments for each segment of market a combination of

a number of devices or types of marketing activities that are

coordinated into a single management programs to reach a particular

target or market segment is formulated. The combination of these

marketing methods or devices is known as the marketing mix.

Thus marketing mix is the set of marketing goals that the firm

used to pursue its marketing objectives in mix goals can be

classified as under down heads. There are.

1. Product.


11/39

2. Price.

3. Promotion.

4. Place.

5. People.

These are popularly known as the five P's of marketing mix.

MarketingStrategy(Mix)

PRODUCT MIXProduct VarietyProduct LineDesignFeaturesBrand NamePackagingServicesWarranties

PRICE MIXPricing ObjPricing PolicyPrice ListDiscountAllowanceCredit Terms

PROMOTION

MIX

Sales PromotionAdvertisingSales ForcePersonal Selling

PLACE MIX

Channel ofDistributionPhysicalDistribution

MARKETINGSTRATEGY

(MIX)


12/39

Product is the pivot around which all the marketing

selectivities revolve without product, all the marketing activities

become useless. People satisfy their needs and wants with products.

Product can be defined proudly to cover anything that can be offered

brings to someone to satisfy a need or want normally, the ward

product brings to mind a physical object such as on automobile, a

television or a soft drink. We normally use the expression product


13/39

and services but in thinking about products, their importance lies

not so much in owning them as in using them to satisfy our wants.

Manufacturers get into a lot trouble by paying more attention

to their physical product then to the services produced by these

products. The marketers job is to sell the benefits or services built

into physical products rather than just describe their physical

features.

Product mix is the set of all the products line and items that a

particular server offers for sale to buyer the product mix covers the

following points.


14/39

(A) Product Variety

Product variety include the types of product which a company

produces. They may before the same consumers or for different

consumers. In other words, the different products may satisfy

similar needs or different needs for e.g. A company manufacturing

soap for both these product satisfy the same needs e.g. cleaning etc.

But if the same company starts manufacturing their oils than this

product has a totally different segment of consumer. There fore the

company will have to all write its marketing strategy in order to

reach this particular segment of consumers.

The product variety (line ofBajaj Auto Ltd. are as follows.)

Scooter Bikes1. Super

2. M-80 Major

3. M-80 Major 4-Strock

4. Spirit

5. Saffire

6. Legend NXT 2

7. Chetek 4-Strock

1. Boxer

2. Caliber Croma

3. Aspire

4. Caliber 115

5. Pulsar

6. Wind 125

7. Eliminator


15/39

(B) Design

Reflect the outlook of the product. Design reflects the features

of the product which make it different from other products.

Designing a product is a specialist job. Various aspects of the

product are to be kept in mind while designing a product. These may

include product differentiation, features, characteristics,

performance, durability, reparability, style etc.

Design is the interacting force with all the features as its

parameters. The design has also to keep in mind the capital allocated

to designing from the companies point of view, a well designed

product would be pleasant to look at easy to open, install learn now

to use repair and despose etc. The designer has to take all target

market and weights the different benefits and costs.


16/39

(C) Features

The term features refers to those inherent characteristics of

the product which makes it different and unique from the other

products. In other words features means any special point

differentiating that particular from other product.

Features are characteristics that supplement the products basic

functioning most products can be offered with varying features. The

starting points is stripped down or base version by adding extra

features each feature has a change of capturing the dance of

additional buyers.

Thus features are the biggest competitive goals in the hands

of companies, features make one companys product supplier toother companies producing similar product.


17/39

(D) Brand Name

Brand Name refers to that name through which the products

of that company are recognized. Branch Name can be a name, term,

sign symbol or design or a combination of them, intended to identify

the goods or services of one seller or a group of sellers and to

differentiate them from those of competitors.

Branch Name are the most important of any product because

it is the identification of the product. Brand Names may be the

companys name if sold, or it may be a different as the better known

the brand name, the higher will be the sales.

A powerful brand name is said to have consumer franchise.

This is evident when a sufficient number of customer demand thatbrand and refuse a substitute even if the price is some what lower.

Today, branch name is such a strong force that hardly anything goes

understand.


18/39

(E) After Sales Service

Services are activities, benefits or satisfaction that are offered

after sale. In other words a service is any act or performance that

one party can offer to another that is essentially intangible and does

not result in the ownership of anything.

Ferms Hiat provide high quality services undoubtfully our

perform their les services. For e.g. the manufacturers could make an

arrangement with distributors and dealers to provide these services.

Thus the customers durable market is highly competitive in terms of

after sales services.

It sometimes so happens that the company increase a high

cost burden in terms of after sales services. But the company whichprovides a better after sales service inspite of its cost burden,

benefits in the long run. Thus many companies prefer to incur high

cost rather than loosing their potential customers.


19/39

(F) Warranties

Product warranties are an important promotional tool

especially as consumers because more quality sensitive warranty

means authority or justification that the thing sold is fit for use and

the producer accepts reproducibility for repairs over a period of

time.

The company can promote sales by adding a free warranty

offer or service contract. Instead of changing for the warranty or

service contract it offers it free or at a reduced price if the customers

buy that product. Thus, warranty forms an important part of

customer durables customers always except a longer period of

warranty. But the cost burden on the company is very high and the

company has to perform cost benefit analysis while deciding theperiod and scope of warranty only that policy should be selected

where the benefits cut run the costs. But it is very difficult to

calculate and maintain balance by cost and benefits.

The warranty period ofBajaj Auto Ltd. is one year, or two

year depending a Bajaj Auto Ltd. is policy. The company replacesall the parts and movements period is over the retailer.


20/39

INTRODUCTION

Price is the only element of marketing mix that produces

revenue. All the other elements that is product, place and production

procedure etc. Pricing composition is the first problem facing the

marketing executive.

All profit organizations and many non profit organization set

their prices and product and service. Though most of history price

were set by buyers and sellers negotiating with each other sellers

would also for higher prices then they expect to receive and the

buyers would offer less than their expect to pay. Through bargaining

they would arrive at an acceptable price. Setting one price for all

buyers is relatively a modern idea.

Inspite of the high degree of importance given to the price

mix and the fact that the price mix is only revenue earning element,

most companies do not handle pricing well price is set independent

of rest of the marketing mix rather than as an interstice element of

market positioning strategic and price is not valid enough for

different products items and market segments.

Companies handle pricing in a variety of ways. In small

companies prices are often set by the top management rather than by

the marketing or sales department.


21/39

THE PRICING OBJECTIVE

BAJAJ AUTO LTD.

1. Pricing Stability: -

Bajaj Auto Ltd. is one of the companies in scooter

market in India which call for long term interest of the

business and aim at price stability. This attempt is not to let

price fall low during deprecation and rise too high during

boom.

2. To Incharge Market Share: -

The main objective of Bajaj Auto Ltd. is to get

maximum share in scooter market. So they have set their price

at definite level by which they can increase their market

share.


22/39

Pricing Policy

Pricing Policy is the standing answer of the firm to requiring

problem of pricing. It provides guidelines to marketing manger to

solve appropriate pricing decision. If competition is mainly on price

basis then each marketer generally prices their product at the same

time level their competition.

The Prices of bikes, mopeds etc, are set up by the Bajaj Auto

Ltd. itself and the margin of dealers commission is added in the

company price list. The main reason behind the cheapeners ofBajaj

Auto Ltd. is most of the parts of the moped and bikes manufacture

by company itself.

We can see in the following chart that the Octroy, CST, etc.

should be paid according to the rules and regulation of the

government.


23/39

Particulars Amt. (Rs.)

Factory Price

Add: Forwarding Handling and

Loading Charges.

= Total

Add. Central Excise Duty (25%)

Add. Freight Charges

= Net Dealers Price

Add. : Communication

= Retail Price

Add. M. R. C. Entry Tax

Add. Gujarat Sales Tax (4%)

= EX-showroom Price

Add: RTO Tax

Add: Insurance & accessories

= On the Road Price


24/39

Discounts

The term discounts means a deduction from the nominal valve

or price or amt. of the product. In other words, discount is the

amount, which is taken off the full price of the product. Most

companies modify their basic price to reward the customers from

such acts as early permanent, volume purchases and off-season

buying. This price adjustment are called discounts. Discount is a

very popular tool in the hands of top level management to increase

their sales. The companies make efficient use of this tool to expand

their market. Discount being a reduction in the original price of the

product are relatively cheap from of attracting new customers and

sustaining old owned.


25/39

Credit Terms

Credit Terms refers to the rules and regulations in the form of

an agreement between the producer and the customers in relation to

the credit facility which the producer gives to their customers. In

other words credit terms are the terms and conditions which are

mutually agreed upon by the customers and producers and relates to

the benefits which each will provide to other party.

Depending on the policy of the management of the company,

credit terms may be remains the same from consumer to consumer

or may services from consumer to consumer. It also depends on how

good relations are between the producer and the consumer. Credit

terms may also change when the policy of the company changes

over a period of time. It is a basic fact that each company has to givea short or long terms of credit facilities if it wants to survive in the

market and in the cut throat competition. If company does not give

credit facilities, the customer turns to its competitors product in

costlier. Thus credit facility is must for all companies in order to

survive.

The credit terms of Bajaj Auto Ltd. are fairly

straightforward. The credit period allowed to the sealer is 60 days.

The company also takes a deposit from the distributors against the

dealerships allocated to them.


26/39

INTRODUCTION

Promotion has three specific purposes. It communicates

marketing information to consumers, users and reseller. It is not

enough to communicate ideas. Promotion persuades and convinces

the buyer and influences his/her behavior to take the desired action.

Promotional efforts act as powerful tools of competition providing

the cutting edge of its entire marketing programme.

Broadly speaking promotion means to push forward or to

advance an idea in such a way as gain as its acceptance and approve.

Promotion is any communicative, activity whose main objective is

to move forward a product, service or idea in any channel of

distribution. It is an effort by a marketer to inform and persuade

buyers to accept, recommended or use the article, service orcommunication with an additional element of persuasion. The

promotional activity always attempts to affect ideas, products

services etc. is the heart of promotion.

Modern marketing causes for more than developing a good

product priding attractively and making it a accusable to targetcustomers company must also communicate with their present and

potential customers.

Promotion includes the following:

Advertising


27/39

(A) Introduction: -

The American Marketing Association has defined

advertisement thus Any paid form of non-personal presentation and

promotion of ideas, goods or services by an identified sponsor.

Advertising is paid communication presentation and

promotion because the advertiser has to pay for the space of time in

which his advertisements appears. Advertisements appears in the

recognized media, such as news Papers, magazines, radio,

television, cinema film, outdoor, hoarding and posters, directs man

and transit.

It is paid for by a sponsor (seller) who wants to communicate

about his product or service to his customer. The sponsor wants to

persuade and induce the readers, viewers or listeners to take some

action viz. To buy the advertised product so that the advertising

should have max sales.

From the above discussion we can say that each and every

company whether public or private has to advertise for its survival.

Bajaj Auto Ltd. has also undertaken the advertising activate.

(B) Objective of Advertising: -

The first step in developing advertising program is to see the

advertising objectives. According to Bajaj Auto Ltd. those

objectives must flow from decisions on the target markets, market

positioning and marketing mix. The Bajaj Auto Ltd. has

undertaken the activity of advertising with a view to attain the

following main objectives.

1. To give information about a new Product:


28/39

One of the most important objectives of advertising is to

inform potential. Customers about a new product or service if

people know nothing about product how can then buy?

2. To Create Demands:

The primary object of advertising is to create demand for a

particular product. To inform people about a people is not enough.

They must also be motivated to bug it by informing them the

features attributes and uses of the product M.A. technical wags.

3. To support sales mans efforts:

Salesman deals directly with customers and advertising

renders great help to them. When the customers come to know.

Characteristics quality and various brand of a product through

advertising.

4. To Maintain Demand:

The objective of advertising is not only to create demand for a

product, but also to maintain it at current level.

5. To Reduce Costs:

The main object of advertising is to reduce percentage cost of

production and distribution. Advertisement leads to increase in

sales, hence production expands and cost of production, falls.

6. Other Objects:

Among the subsidiary objects of advertising, notable nones

are consumers satisfaction, removal of misunderstanding about the

product, expansion of market, evlativate favourable public opions.


29/39

NEWS PAPER

Bajaj Auto Ltd. has selected newspaper as its media of

advertising because it is the most effective media. It has general and

wide appeal. They are flexible. Periodical change in size and content

is also easy. At local level they are using.

GUJARAT SMACHARand SANDESH and at the national

level they use different newspaper in different cities. Like in

Mumbai, Ahmedabad and Lucknow give advertisement in Times of

India. In Delhi, Madras, Pune, Baroda, Calcutta, Banglore,

Hydrabad has given advertisement in Hindustan Times and Indian

Express.

MAGAZINES

Magazines are considered to be the most effective media.

Tough its colored attractiveness, Magazines have longer life greater

retentive value as well as reference value further they are usingmanages of advertisement because selective appeal is possible

through it, the magazines have most circulation form.

Bajaj Auto Ltd. is also interests in giving advertisement in

magazines. They use different magazine for bikes and mopeds like.

Sport Star, Cricket, Samarat Sports World, Chitralekha, and

Abhiyan etc.


30/39

TELEVISION

Bajaj Auto Ltd. is using television as important media. They

advertise their product on all most all channels in very popular

program so that they can attract more customers.

Television advertisement can appeal through ear as well as

eye can be demonstrated with explanation. It reaches the guidance

almost like personnel salesmanship. Thus it is really wonderful

mean of mass communication for creative market.

Bajaj Auto Ltd. has adopted Poster, Boards and Electric

Display as a media of outdoor advertising. They are giving

importance to this media because it has long life general wide

appeal. It can also attract number of peoples.


31/39

PUBLICITY

Publicity is a non personnel stimulation of demand for a

project service or a business unit by placing commercial significant

news about it in a publication or obtaining favorable presentation of

it on radio, T. V. on maganizine that is not paid by the media

sponsor.

For Bajaj Auto Ltd. publicity as one of the part of the

promotion mix which cant be ignored in any case. Till today many

articles regarding the company is published in THE ECONOMIC

TIMES etc. Through publicity of its company Bajaj Auto Ltd. has

created own goodwill in market.


32/39

SALES PROMOTION

(A) INTRODUCTION: -

This is one of the constituent of promotion news. Which is

concerned with extra efforts for increasing sales. Today, sales

promotion is necessary and not merely a luxury or fashion. It is not

expenditure; it is an investment, which can pay rich dividend. This

is one of the constituents or promotion-mix, which is concerned

with extra efforts for increasing sales.

Sales promotion is referred to activities other than personal

salesmanship, advertising and publicity. Which stimulate dealer

effectiveness and consumer purchasing. In a broader sense, the

terms refer to almost all activities of marketing oganisation. Proper

selection of sales man. Payment of reasonable salaries to them,

provision of their attempts to improve relations with distributors and

consumers, advertising etc. are the activities all of which essential

aim at increasing sales.

Sales promotion is defined by the American Marketing

Association to mean those marketing activities other than selling

advertising and publicity that stimulate consumer purchasing and

dealer effectiveness, such as display shoes and expositions,

demonstration and various non-recurrent selling efforts not in the

ordinary routine.


33/39

SALES PROMOTION INCLUDES TOOLS FOR

(i) TRADE PROMOTIONS: -

[E.g. buying allowance, Free Goods machinery, Allowance,

Cooperative advertising, Push money dealers Sales contents]

(ii) SALES FORCE PROMOTION: -

[E.g. Bonus, Sales retailers]

In short sales promotion is a bridge or connection between

advertising and personnel selling.

Bajaj Auto Ltd. spends too much on business promotion.

These tools are used for such purpose as gathering business leads,

increasing and recording customers. The Bajaj Auto Ltd. takes part

in exhibition held up or organized by some club or other association.

Thus the cost of the tool is very less but their value is very too

much high. Large number of people attend this fair and come in

contact with the product of the Company and its uses.

INTRODUCTION

More production of commodity is not enough but is must

reach to the right man at the right time and at the right price. In


34/39

marketing point of view place mist strategy is the second important

element of the marketing mix. Place mix has two sub divisions.

1. CHANNEL OF DISTRIBUTION: -

Channel of Distribution is the best of marketing institution

participating in the marketing activities involved in the movement or

the flow of goods or services from the primary producers to the

ultimate consumers. In the field of marketing the channel of

distribution indicates roots on Parth way through which goods and

services flow or move from producer to consumers.

2. PHYSICAL DISTRIBUTION: -

Physical Distribution consists of those marketing activities

related to the physical handing of goods such as protective

packaging, order processing, inventory management, transportation

and warehousing.

If you build a better mousetrap the world will beat at your

door. But too often the marketing practitioner finds that the

customers cuts the delivery of that better mouse trap at the right

place at the right time and at the right quantity. The physical

distribution function like other half of marketing is responsible for

completing the marketing transaction.


35/39

SELECTIONOF CHANNEL

The problem of selecting the best distribution channel is the

most complex one. There are many factors affecting the channel

choice as like natures of the product marketing environment etc.

These all are the very important factors or determinants of the

distribution channel. Every marketer has to consider all these factors

at the time of selection the distribution channel while selecting the

channel member. Bajaj Auto Ltd. takes the following factors into

consideration.

1. FINANCIAL CONDITION:

Before appointing a dealer or agent or retailers Bajaj Auto

Ltd. finds out the financial condition. If the financial condition is

sound then Bajaj Auto Ltd. looks other aspects also.

2. LOCATION:

Location is the most important for wide market coverage

Bajaj Auto Ltd. showroom are mostly located nearer to the

competitors showroom and in the centre of the city.

3. REPUTATION IN THE MARKET:

This is considered as the GOODWILL of any dealer agent

or retailer ofBajaj Auto Ltd. and also Bajaj Auto Ltd. takes care

to select the candidate who has some reputation in market.


36/39

4. PROVISION FOR AFTER SALES SERVICE:

If dealer, retailer or wholesaler is ready to give after sales

service to the customer, the Bajaj Auto Ltd. takes particular

decision for selection. Not only that Bajaj Auto Ltd. has offered the

after sales service on its vehicle.

NUMBEROF CHANNEL LEVEL

Distribute means to distribute, spread out or disseminate. In

the field of marketing channel of distribution indicate routes or

pathways through which goods and services flow or from producers

to consumers. Thus the channel of distribution flow of:

1. Information.

2. Marketing Communication (Promotion).

3. Material.

4. Man Power.

5. Capital Equipment.

6. Negotiation and transaction.

Bajaj Auto Ltd. has good channel of distribution to meet the

customers demand easily of Bajaj Auto Ltd. has also started to

appoint the dealer in the rural area to cover the whole nation.


37/39

In the Rajkot Rajarshi Auto Deals Pvt. Ltd. and

Automotive are two prime or authorized dealer of the Bajaj Auto

Ltd.

MARKET COVERAGE

Once the general channel decide it has to be used to increase

in the share of market. Market coverage is an important activity

while the company is passing from the period of stability. The Bajaj

Auto Ltd. has also created its good position in the corporate market.

It is number one in moped and scooter and now a days in Bikes

Bajaj Auto Ltd. gets good part in the total market share.

TRANSPORTATION

Markets need to be concerned with their companies

transportation decision. Transportation choice will affect the pricingof the product on time delivery performance and the condition of the

Bajaj Auto Ltd. which they arrive all of which affect customer

satisfaction. Transportation is cause of problems of physical

distribution. It is sometimes caused the guardian knock of physical

distribution management.


38/39

WARE HOUSING

Every company has to store its goods while they cant be sold

immediately storage. Function is necessary, because production and

consumption cycle is rarely matched. The company must decide on

a desirable numbers of stocking locations. More stocking location

means that goods can be delivered to customers more quickly. The

number of stocking location must strike a balance between

customers service level and distribution costs. So far as Bajaj Auto

Ltd. is concerned it is not the practice of the company to provide

warehousing facility to the dealers. Hence, to make arrangement of

go downs for the storage of two wheelers. In Rajkot Rajarshi Auto

Deals Pvt. Ltd. has a very big warehouse.


39/39

Conclusion

On the basis of comprehensive research of the Bajaj Auto

Ltd. under gone at Rajarshi Auto Deals Pvt. Ltd. it can be

concluded that the position of the Bajaj Auto Ltd. in the corporate

field is very strong. The well experienced efficient and industrious

sales force is the strength of it. The value of the Bajaj Auto Ltd. is

more than the other vehicles manufactures.

Sophisticated mass production technology including the latest

machinery and equipment for material handing, precision high

volume machinery, robotic welding, automated painted and

conveyorized vehicle assembly amongst others, are partly

reasonable for this fact thus we can say that prudent and correct

management plays an integral part in the whole affairs.

The production of vehicle is done in less time and passthrough the 120 quality control checks. Thus such a facility does not

only consumers tooling, which meet precise standards but also

reduce the lead-time for introducing new model. Quality control is

practicing every good engineering company and with Bajaj Auto

Ltd. it appear to be way of life.

All the Bajaj Auto Ltd. Scooters and Bikes have very strongand nice engine and it will obey the pollution control department of

India. All the exciting product are being of started. The policy will

be watch the market keep track of the shift and get develop

technology for creating to the demand.

At present Bajaj Auto Ltd. enjoys monopoly in the field of

Scooter. It is trying level best to secure the position in the bikes even

Bajaja Auto Ltd. t.y.b.b.A

Documents

Transcript of Bajaja Auto Ltd. t.y.b.b.A