The Marketing mix of Bajaj Auto Limited analyses the 4Ps of Bajaj Auto Limited, including the Product, Price, Place, and Promotions. Bajaj Auto Limited is a public limited company of Indian origin. It is associated with the automotive industry and deals in products like two-wheelers, four-wheelers, and three-wheelers. This global manufacturing company was founded in 1945 on 29th November by its esteemed founder, Jamnalal Bajaj. Bajaj Auto Limited is a subsidiary of its parent company Bajaj Group. According to Forbes Global 2000, Bajaj Auto Limited ranked at 1,416 positions for 2012. It faces stiff competition from rival brands like
- Ducati Superbike
- Harley Davidson
- Hero Moto Cop
- Yamaha
- TVS Motor
- Royal Enfield
- Suzuki Motors
About Bajaj Auto Limited
- Type: Motorcycle and scooter manufacturing company
- Industry: Automotive
- Founded: 1945
- Founder: Jamnalal Bajaj
- Headquarters: Pune, Maharashtra, India
- Area served: Worldwide
- Key people: Rahul Bajaj (Chairman) and Rajiv Bajaj (CEO)
- Number of employees: 45,000
Table of Contents
Bajaj Auto Limited Product Strategy
Bajaj Auto Limited is an international company that sells and manufactures several products. It is ranked sixth for motorcycles and third for three-wheelers as the largest manufacturer in the world. Bajaj Auto Limited is famous for offering sleek and stylish bikes that are highly popular in consumer markets. The company has launched DTSI, a patented technology that has given its engines a new dimension. Its two-wheelers are known for low ownership costs and easy availability of its spare parts.
The new Product Mix of Bajaj Auto Limited in 2023 is as follows (Source).
- Motorcycles: This category is extensive and features models like the Pulsar RS200, Pulsar NS200, Platina Comfortec, Dominar 400, Avenger series, and others. These motorcycles are known for their sleek designs and efficient performance.
- Low-Cost Cars or Four-Wheelers: The Qute is Bajaj Auto’s foray into the four-wheeler segment, catering to customers seeking affordable and compact transportation solutions.
- Three-Wheelers: Bajaj Auto is a major player in the three-wheeler market with models like RE Maxima, RE Optima, and RE Compact. These vehicles are popular in several countries for commercial and passenger transportation.
Bajaj Auto Limited’s product portfolio is characterized by its focus on technology, affordability, and a wide range of options to cater to different market segments. This diverse product mix helps the company maintain a strong presence and market share in domestic and international markets.
Bajaj Auto Limited Place Strategy
Bajaj Auto Limited has spread its presence from India to more than seventy countries worldwide, including Latin America, Africa, and Asia. It operates from its headquarters in Pune, India. In India, the company is based in Mumbai and Pune. Africa is the leading importer of Bajaj Auto’s line of products, accounting for more than 47% of its sales figures. Bajaj Auto Limited has a product presence in Argentina, Cambodia, Dubai, Egypt, Ghana, Liberia, Mexico, Nigeria, Peru, Singapore, Tanzania, Sri Lanka, and Sudan.
Bajaj Auto Limited has manufacturing plants at Pantnagar in Uttarakhand and Waluj and Chakan in Maharashtra, and an extensive R&D facility at Akurdi in Pune that keeps an avid eye on future product development for all its products In India; it has a strong distribution channel that is spread across most parts of the country quite efficiently It operates on the age-old theme of the dealership program and has tie-ups with several dealers.
Bajaj Auto Limited has established a widespread network of dealers and service centers at every nook and corner of India. Its distribution channel includes C & F agents and depots at strategic points to handle product distribution and transfer. Spare parts are a necessity for any consumer. Hence, the company has set up an efficient penetration policy for spare part dealers in urban and rural areas that can quickly meet consumer demands at low spare parts costs. Bajaj Auto Limited sells its products via showrooms and e-platforms.
Bajaj Auto Limited’s place strategy can be summarized in the following points:
- Global Presence: Bajaj Auto Limited operates in more than seventy countries worldwide, including key markets in Latin America, Africa, and Asia, emphasizing its global reach.
- Strong Domestic Base: In India, their presence is marked by a strong network of dealerships and service centers, catering to a broad customer base nationwide.
- Manufacturing Facilities: They have manufacturing plants in key locations in India, ensuring efficient production and distribution.
- Strategic Distribution Network: Bajaj Auto has an extensive network of dealers, service centers, and spare part outlets, facilitating easy availability of its products and services.
- Online and Showroom Sales: The company sells its products through both online platforms and physical showrooms, catering to the evolving shopping preferences of customers.
This strategic approach helps Bajaj Auto Limited maintain its position as a leading player in the automotive industry.
Bajaj Auto Limited Pricing Strategy
At the end of the 2016 financial year, Bajaj Auto Limited posted its revenues at Rs 226.8759 billion and its net income at Rs 35.6254 billion. Its market capitalization in May 2015 was Rs 640 billion, making it India’s 23rd largest publicly traded company by market value.
Nearly 35% of its total sales come from its exports. Bajaj Auto Limited has targeted its target audience as the middle-class section of the society who yearns for a stylish bike with good mileage and affordable rates. Its target group generally comprises youth between the ages of twenty-five to thirty-five.
Bajaj Auto Limited offers several types of products to its customers, and to meet their demands successfully, it has adopted a distribution strategy with several pricing strategies. For its premium products, it has maintained a mid-premium pricing strategy that helps keep prices at affordable rates compared to premium products of other brands. Bajaj Auto Limited has adopted a penetration pricing policy to capture the mass market.
This same business strategy allows the brand to keep its product prices reasonable so that every level of society can easily purchase. The competitive nature of the consumer market is also handled brilliantly by a competitive pricing strategy, as product prices are kept lower than the prices adopted by rival brands. When consumers compare qualitative products and the asking prices of several brands, they generally go for Bajaj as a famous and established brand.
Bajaj Auto Limited’s pricing strategy is designed to cater to a broad market segment, while a highly competitive pricing strategy maintains a competitive advantage. Here’s a concise summary:
- Mid-Premium Pricing: For its premium products, Bajaj maintains affordable pricing compared to competitors, striking a balance between quality and cost.
- Penetration Pricing: This approach captures the mass market, setting reasonable prices to make products accessible across various economic segments.
- Competitive Pricing: Bajaj strategically prices products lower than rivals, appealing to cost-conscious consumers while emphasizing product quality.
- Target Market-Oriented Pricing: Focusing on the middle-class segment, Bajaj targets consumers seeking stylish, efficient motorcycles at affordable rates.
- Export Sales Strategy: A significant portion of sales comes from exports, necessitating a pricing strategy that adapts to international markets and consumer preferences.
Bajaj Auto Limited Promotion Strategy
Bajaj Auto Limited is one of the most recognized brands in India and internationally. The company has adopted above-the-line and below-the-line marketing strategies to get brand loyalty and advertise its products entirely in the consumer market.
It believes in capturing the mass market and has launched several ad campaigns to increase its brand value and visibility. These are displayed via digital, print, and visual media through newspapers, magazines, hoardings, billboards, television channels, radio, and even on the sides and backs of moving vehicles.
The company recognizes the power of social media and has launched its consumer awareness program via several portals, including its website, Twitter, and Facebook accounts. Celebrity endorsements are widespread in the consumer market as they have an immense capacity to influence it easily. The famous person associated with Bajaj Auto Limited is Bollywood actor Aamir Khan, who bought a customized motorcycle, Bajaj V.
Bajaj Auto Limited has been recipient of several awards and recognition like Bike of the year 2010 for Bajaj Pulsar 135 LS, BBC World Wheels Viewer’s Choice Two-Wheeler of the Year 2003 for Bajaj Pulsar 180 DTS-I, Bike Maker of the Year 2004 for Bajaj Auto, The Most Customer Responsive Company in Automobiles sector for the years 2008, 2006 and 2004 and Bike of the Year 2008 for Pulsar 220 DTS-Fi Its company taglines have changed over the years but have become synonymous with its brand and some of the most popular ones are Defiantly Male, Inspiring Confidence, Distinctly Ahead, and Hamara Bajaj.
Some Recent Video ads and Print ads for Bajaj Auto Limited are:
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