CASE STUDY

BAJAJ LAUNCHES ITS NEW E- BIKES

SUBMITTED TO :

MR. ASIM RASTOGISUBMITTED BY:

MADHVI MANI TIWARIPAROOL OMER SHIKHA VERMASMRITI RAJE

INTRODUCTION

•Bajaj Auto is a major Indian automobile manufacturer. It is India's largest and the world's 4th largest 2 & 3 wheeler maker. It is based in Pune,Maharashtra,with plants in Waluj near Aurangabad, Akurdi and Chakan, near Pune. Bajaj Auto makes and exports motor scooters, motorcycles and the auto rickshaw.

•Bajaj auto is a flagship of Bajaj group of companies and has long left behind its annual turnover of Rs.72 million (1968) to currently register an impressive figure of Rs.81.06 million.

• BAL is currently outperforming the industry growth in 2 wheeler segment with 32% growth in the year in 2004-05 vs. industry growth of 19%.

•The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946.

• 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, Bajaj Pulsar-200,Bajaj Kristal, Bajaj Pulsar 220 DTS-Fi were introduced in 2007.

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

•It has been reported that Bajaj is headed for a de-merger into two separate companies: Bajaj Auto and Bajaj Finance. It is expected that the sum of the parts created will be worth more that the current whole, as was the case in the de-merger of Reliance Industries.

•It has also been reported by The Economic Times that Bajaj is looking for a major European acquisition, perhaps of Triumph Motorcycles or Ducati.

•VISION – to attain world class excellence by demonstrating value added products to customers.

•MISSION – Focus on value based manufacturing. Fostering team work and enhancing the capability of team. Continual improvement. Total elimination of waste. Pollution free and safe environment.

BAJAJ’S E- BIKES

• Bajaj living by its own brand values of innovations and perfection has planned to launch its new series of battery operated scooterette bike and cycle.

•With fossil fuels becoming dearer with passage of time, ever escalating fuel prices environment friendly pollution free vehicles are the in thing. These electric two wheeler are fast catching the fancy of society as a whole.

•With series of comprehensive market research and various levels of research and development being conducted on electrically operated 2-wheelers for last few months , Bajaj plans to roll out the e-bikes commercially.

MARKETING MIX

PRODUCT

•E-Bikes run on battery and is the most economical 2-wheeler requiring minimum maintenance. It costs less than the cheapest petrol scooter having self-start and totally zero fear, noise-free as compared to scooter and bikes and very comfortable.

• The main components of the bike are DC motor, rechargeable and replaceable twin battery ,exhaust fan, electric start apart from the regular features of bikes and scooters.

•Being an e-bike and battery operated ,these bikes/scooterettes /cycles would require electricity to be charged. Electricity required for charging would cost Rs. 3.15/ unit for 5-6 hours which would be almost free of cost. One full charge would cover 90 kms. Cost of charging would be less than 4 paise(3.15/90). While a petrol run bike would have running cost, if it runs 80 kms. in one litre of petrol at Rs.47/-, 50 paisa per km. So an e- bike is 12 times cheaper .

• No servicing, lubrications, no spark plug cleaning and replacement, no carburetor, no change is required so cost of engine oil is saved as these bikes would be totally running on battery and an electric motor (which is completely encased in metal located in the rear hub). These bikes would have double battery for storing charge . One battery can be changed to other easily just by changing buttons. These batteries have dimensions 41x17x11 cms. & is provided with a box to protect against theft. These batteries can easily be unlocked , removed and charged through a charger provided free with every bike at the time of purchase.

•Charging the battery is very simple and easy . The charger has two wires coming out of it .At the end of one wire is two pin plug which fits into any electric wall socket at the end of other wire is the suitable plug which fits into the socket. On the charger is the small indicator light .While the battery is being charged this light is red . When the charge is complete this light turns green .

• These bikes would be available in various colours, models and shades and would come with guarantee of a year, each battery lasting 300 to 350 recharging after which it has to be replaced.

• Bajaj would initially be rolling out 3 different models with different specifications for separate segments of the society. Bajaj Kate scooterette would cater to women and girls Bajaj Mac modelled more like a motor bike would be for boys and men Bajaj Kiddy for school going kids.

SPECIAL FEATURES:• Double Rechargeable battery • Intelligent braking system• Electronic accelerator/ start• Easy charging , Pollution free• High strength light weight alloy wheels for long life. •Aerodynamic shape, speed controller• Large under seat space for carrying small light weight goods•Digital speed &battery level indicator.

BAJAJ KATE

Specifications:

Overall dimensions 1065x1735 mmTyres: Front 3.0”x10 Rear 3.0”x10Weight carrying capacity 75 kgMotor Permanent magnet brushless

DC motor Speed <40 Km /hrCharging duration 5 to 6 hrsRange charge mileage 75 KmColours available pink, red, yellow, splash blue, blackBattery type Maintenance free VRLA deep discharge, 20AH

BAJAJ MAC

Specifications:

Overall dimensions 1080x1700 mmTyres: (front/rear) 2.75 x 18/90-90 x 18Weight carrying capacity 75 kgMotor Permanent magnet brushless

DC motor Speed <60 Km /hrCharging duration 7 to 8 hrsRange charge mileage 80 KmColours available red, royal blue, black,greyish silverBattery type Maintenance free VRLA deep

discharge, 20AH

BAJAJ KOOL KIDDY (k2)

Specifications:

Overall dimensions 1080x500 mmTyres: Front .99x10

Rear .99x10Weight carrying capacity 75 kgMotor Permanent magnet brushless

DC motor Speed <25 Km /hrCharging duration 4 to 5 hrsRange charge mileage 90 KmColours available red, blue, green, orange, pinkBattery type Maintenance free VRLA deep discharge, 20AH

Price:The tentative price of the vehicles are:

Bajaj Kate: Rs.22500/- - Rs.26000/-

Bajaj Mac : Rs.33500/- - Rs.35000/-

Bajaj Kool Kiddy: Rs.3000/- - Rs.4500/-

Promotion:Promotion is planned and carried out in such a way that all the target segments of the society are covered and they get attracted towards the product and are motivated to purchase the product.

•MURAL ADVERTISING: Outdoor advertisement attract customers when they are out of their home. The POSTER, ADVERTISING BOARDS, ELECTRIC DISPLAYS and WINDOW DISPLAYS will remind the customers of the product again and again which will be of wide appeal outside cinema halls, malls etc.

• DIRECT MAIL ADVERTISING: This includes CIRCULARS of new arrivals, new prices etc. BOOKLETS which includes the variety of products manufactured and sold.

•SALES PROMOTIONS: Will be done at regular intervals and occasionally such as DISPLAYS, FAIRS and EXIBITIONS ,SEASONAL DISCOUNTS,FREE GIFTS etc. Which will encourage customer to buy the product and help creating its demand. This all will be advertised on local channels in the country in Different languages and mentioned in one common language spoken in the country and English newspapers.

Place•E-BIKES will be launched all over India, targeting small towns and metros and would be made available at all Bajaj showrooms initially and in later stages separate showrooms would be opened as the demand increases.•As these bikes are environment friendly and pollution free, places having high pollution levels will be targeted more like metros or tourist destinations. • These bikes would be made available in all tourist destinations for hire like Ooty, Manali, Rajasthan, Cochin, Goa etc. •Charging kiosks would be opened at petrol pumps and showrooms so that battery can be charged easily.

SEGMENTATION,TARGETING AND POSITIONING :• Diminishing fossil fuel & ever escalating petrol prices led the companies to think of alternative energy sources & fuel efficient vehicles. E-bikes are a part of this effort. No petrol, diesel is required, Only electricity is required to run these bikes & are most economical & energy efficient 2- wheelers .• A recent 10-city conducted by A C Nielsen has pegged nascent e-2 wheeler market in India at nearly 5 lakhs units- a sizable for frontline technology.3 models are being launched, keeping in mind the different the segments of the society: • Bajaj Kate scooterette would cater to women and girls. • Bajaj Mac modelled more like a motor bike would be for boys and men.• Bajaj Kiddy for school going kids.Positioning the product would take into account promotion, advertising of the product so that the product is positioned in the minds of the prospects. It would be done through newspapers ,murals, pamphlets, ad campaigns, mass media & television channels. Focus would be on the cost effective-environment friendly aspect of the vehicles.

Strengths:• Established brand image, strong presence.

• Economical, Low maintenance cost ,no servicing

•Variety ,colours available for all segments of the society, light weight.

•License, registration, road tax payment is not required.

•Environment friendly, pollution free.

•No special riding training or test required , attractive options for school going kids and college students.

Weakness:•Low speed limit .

•Low weight carrying capacity .

Opportunities:•Big market to tap .

•Only brand entering e-bike sector , can take advantage of brand value .

•Can expand globally / co-brand with other manufacturers.

Threats:•First mover advantage lost to Electrotherm India , YO bikes.

•Might not be socially acceptable as no product history available .

•Kinetic and other foreign brands also coming up with their version of e- bikes.

•Who knows market for e-bikes will grow and stay with favour with the consumers or whether advancement in technology would lead to better innovations .

SBU’S:

With Bajaj auto known for innovations , perfections and pursuit to reach beyond Ordinary , it becomes distinctly ahead through its excitement engineering .Its entry in e-bikes segment would set new standards and a determination to excel by endeavouring to establish new Benchmarks all the time .With its highly efficient R & D department diversification in the e-bike segment would not require any unusual effort and would not require Bajaj to set up a separate Strategic Business Unit .Also year of expertise would help in the development of the product .

FUTUTRE PROPOSALS:Future holds shortage of petrol and electricity and their rising cost so Bajaj proposes to design bikes operated by solar energy these bikes will also run on battery so that they can also be used at nights also small toy car for kids is proposed.

CORPORATE SOCIAL RESOPONSIBILITY:

Since 1945 Bajaj is performing its duty towards the country by providing a perfect 2 wheeler which has been proved to be the best for Indian usages .whether it’s a question of durability , strengths , design , service and specially price. Bajaj has always proven itself best and economical .Customers do not have to think of every aspect before going for a Bajaj product.E-bikes would add one more feather to its hat. With these ,company has proven how much it cares for the country and environment. With the development ,pollution is increasing at a great pace and one of the major cause is increasing number of fuel run automobiles. E-bikes, with zero pollution levels would be environment friendly and economical.