Marketing strategy of Bajaj Auto ~ Marketing mix, STP

Introduction

Bajaj Auto Limited is an Indian Multinational company that manufactures many products. Bajaj is the most trusted brand in India. Bajaj Bikes are known for their performance and its after-sales services. The marketing strategy of Bajaj Auto includes its marketing mix, STP, and many more.

High integration, determination, resourcefulness, and dedication have greatly helped Bajaj Auto Limited to succeed and become leading manufacturer of two and three wheeler of vehicles. This company consists of product portfolio of motor cycles and auto rickshaws and scooters.

In order to maximize its profits, Bajaj Auto has adopted a comprehensive marketing strategy.

Product Strategy

Bajaj Auto produces a diverse number of two and three-wheelers for India and international markets. Exports make 35% of Bajaj Autos’ center total sales and 47% of these exports are made to Africa. Bajaj Boxer is the largest selling model in Africa.

Bajaj Auto’s line of scooters includes:

Bajaj sapphire
Bajaj Wave dtsi
Bajaj Kristal dtsi
Motorcycles include CT 100 and many more.

For intra urban commutes Bajaj Auto also showcased the Re60 (Bajaj Quote) which was based on an auto-rickshaw.

Pricing Strategy

Bajaj Auto also has an extremely competitive pricing strategy in its marketing mix and they believe the key to capturing market share and ensuring brand loyalty is the right pricing of products.

The company has immense knowledge in regards to the market as a whole and knows for a fact that low cost of purchase and well overall Low cost of ownership are key elements to an effective Pricing strategy.

Fundamental spares such as disk brake pads, drum shoes, fork oil, air filter, headlight, and taillight assembly as well as consumables such as engine oil and air filter are also priced extremely competitively.

Bajaj Auto as an automotive giant in India is armed to the tooth with this knowledge and realizes that low cost of purchase as well as overall low cost of ownership are key elements to the above philosophy. Bajaj Auto also ensures that service costs of all its two wheelers are low and affordable.

Pricing of essential spares such as disk brake pads, drum shoes, fork oil, air filter, headlight and taillight assembly as well as consumables such as engine oil and air filter are priced very competitively.

Place & Distribution Strategy

Bajaj Auto has created a strong presence spread across India, with its dealerships and manufacturing plants. With several manufacturing plants based in

Pune
Chakan
Waluj
Pantnagar
Mumbai.

Bajaj Auto features a production capacity of more than 4 million two-wheelers. Its oldest plant is being used as a Research & Development (R&D) center for future product development and in-house technological research.

With operations in more than 50 countries, Bajaj Auto has truly made its presence felt when it comes to the distribution, sale, and service of two-wheelers.

The company sold close to 3.76 million two-wheelers during the financial year 2012-2013 of which approximately 33% consisted of exports. Bajaj auto’s two-wheelers are also known for their low cost of ownership, low spare parts cost as well as easy availability of parts.

With a very adequate penetration of spare part dealers even in rural areas, Bajaj Auto can population-based meet the needs of consumers in even the most remote parts of the country.

Promotion Strategy

As part of its promotional strategy, Bajaj Auto uses print, TV, online, billboards, etc. This makes use of the customers’ changing preferences as a clue for not only new product developments but also newer ways of promotions.

Bajaj Auto made use out of the metal of the now-defunct and decommissioned naval warship for constructing the Bajaj V motorcycle model which made a great impact on the citizens of the country.

We can conclude that Bajaj Auto has poured its heart and soul into every segment of the strategy to maximize its reach and acquire its customer’s trust and loyalty from all around the world.

So this is how Bajaj Auto has framed its marketing mix strategy. Let us now go through its competitors’ analysis.

Competitor Analysis

Let’s take a look at the comparison between Bajaj Auto and Hero MotoCorp in terms of unit sold and employee ratings. In May 2021, Bajaj Auto beat Hero MotoCorp by just 116 units, beating them and emerging as India’s largest two-wheeler maker.

But in terms of employee ratings, Hero MotorCorp takes the lead in many areas: Overall rating career, career opportunities, compensation & benefits, work-life balance, and many more. We can conclude that Hero Motocrop treats its employees better than Bajaj auto does.

Market analysis

Sluggish domestic growth and credit constraints, government regulations, currency problems due to demonetization, political, economic factors are affecting the industry not only to domestic market but also to exports.

Increasing suppliers & customers bargaining power due to a large number of options in the market and government changing regulations such as recently BS3 vehicles has been discontinued and BS4 has been set a minimum standard are driving the industry.

STP

The Company segments the population on the basis of characteristics like age, gender, income group, region, family size, social class, price sensitivity, loyalty, expectations, personality attributes, and lifestyle. Bajaj Auto uses a mix of demographic and geographic segmentation strategy. This is because the distribution of this product matters a lot. The same way, demographic points like Earning of the individual also matters.

Differentiating targeting strategy is used by the company to be competitively ahead of its competitors and target the customer group with the distinctive features of the offerings. Pulsar is one clear such model where it has differentiated itself with its combination of design and power throughout the market.

The company has positioned its offerings as a fast and technically advanced automobile manufacturer. It uses user benefit and value-based positioning strategy.

Conclusion

Bajaj auto holds a large capital share in the market amongst its competitors. They strive to be in touch with all age groups and design and manufactures two and three-wheelers to suit everyone’s needs. They also focus on affordability in ownership of their motorcycles as well as cost-effective spare parts and maintenance. They focus a lot on their customers and value their feedback, allowing them to grow and provide better products and services.