MSO PROJECT: A PRESENTATION ON BAJAJ CHETAK CNG

MODEL
GROUP1 SEC E

2000

SHASHANK
JITESH
AAKANSHA
VIGNESH
ABHINAV
ATULYA
SHRUTI
PRATEEK

2005

2015

INTRODUCTION
Reengineered version of Bajaj Chetak model of 2005
Introducing CNG variant of a two wheeler which is first of its kind in
India
Priced at Rs 55000
Aim to capture 5% of rapidly growing scooter market of India by 2017
Market launch scheduled in Dec 2015
CURRENT MARKET

SPECIFICATIONS

TARGET MARKET

Engine
Engine
Max
Max Power:125cc
Power:125cc
Gear
Gear Box:Automatic
Box:Automatic
Power:5Kw@5000rpm
Power:5Kw@5000rpm

Worki
ng
Class

Brake
Brake &
& Speed
Speed
Brake
Brake Type:Drum
Type:Drum
Top
Speed:80Kmph
Top Speed:80Kmph

Weight
Weight &
& Fuel
Fuel
Weight:125Kgs
Weight:125Kgs
Fuel
Fuel Tank:6Kgs
Tank:6Kgs
Mileage:45Km/Kg
Mileage:45Km/Kg

Cheta
k
CNG
Stude
nts

Logist
ics

SWOT ANALYSIS

INTERNAL
INTERNAL

EXTERNAL
EXTERNAL

STRENGTHS

STRENGTHS
Technology
Leverage
First mover
advantage
Heritage and
legacy
Manufactured in
India
Supply Chain
Large Production
Capacity
OPPORTUNITIES

International
Markets
More scope for
Innovation
Home delivery and
logistics services
Rural sector
Tie up with foreign
two wheeler
manufacturers

WEAKNESS

Low Speed
Perception
Problem
Serviceability
High Price
Trunk Size
Availability of
spare parts

THREATS

Availability of
filling stations
Government
regulations
Substitute
Products
Other players in
Indian market

PESTEL ANALYSIS
POLITICAL

Research and
development credit
taxes
Emphasis on make
in India campaign
Pro business
leadership at the
center
Import and Export
duties

ECONOMICAL

Perception Problem
Demographics
Brand Preferences
Preference to two
wheeler to Public
transport

TECHNOLOGY
Huge cost needed
to enter in the
market
Research and
development
Upcoming hybrid
technology
Improvement in
designs and
features

Economic policies of
the government
Depreciation and
appreciation in value
of rupees
Percapita Income
Inflation rates
Interest rate set by
banks

SOCIAL

ENVIRONMENT

Environmental
standards
Emission laws
Fuel consumption

LAW

Patent
Licensing
Environmental laws
Future legislations

PORTERS FIVE FORCES ANALYSIS

Threat
of new
entrants

Threat of new
entry:

M to
H

High Entry cost

Capital Intensive
Industry

M to
H

Bargaini
ng
Power
of
supplier
s

Rivalry
among
existing
competi
tor

Competitor
Rivalry:

Brand Loyalty
Product Offerings
Competitive
Pricing
Bargaini
ng
Power
of
buyers

Supplier Power:

Less no of
suppliers of CNG
kit
High no. of
buyers

Threat
Substitute:

Electric Motor
Vehicles
Petrol and
diesel vehicles
Public

Buyer Power:

Other economical
options available
High switching cost

Threat
of
substitu
tes

SEVERITY RANGE OF
FORCES

SCATTER DIAGRAM FOR PORTERS FIVE FORCES

SEGMENTATION

Region Specific
Geographical
Area Density
Age Group 18-35
Bajaj Chetak

Demographic

Age group 35 & Above

Income

Behavioral

Brand Loyalty

SEGMENTATION(CONTD)

Geograp
hic

Area
Density

Region

Plains

Hilly
Terrains

Metro

Tier II &
III Cities

Rural
Areas

SEGMENTATION(CONTD)

Demograp
hic

Age group

18-35
Years

Budget
Buyer

Income

35 &
Above

Gourmet
Buyer

Smart
Shopper

Middle and
lower
Income

High
Income

Need
Based

Fast
Buyers

Behavioral

Brand
Loyalty

Long time
Customer

Recently
Acquired
Customer

Variety
Seekers

Budget
Buyers

Smart
Buyers

TARGET

Region wise: Plain regions

Area Wise: Metro cities and Tier II & III

cities
Income Level: Budget buyers and
Smart buyers
Brand Loyalty: Preexsiting customers
of Bajaj

BAJAJ CHETAK CNG

Target: For those who value money and environment
Key Benefit: Bajaj Chetak CNG is most economical scooter
till date which gives you mileage and savings which others
aspire to offer
Reason to believe: Chetak CNG is manufactured by Bajaj
Auto who are leaders in two wheeler market in India also Bajaj
has got a leverage over others in CNG sector as it has its CNG
three wheelers doing successful business in the market

Brand Positioning Statement:

We believe you care thats why your new Bajaj Chetak is
here.For fulfilling all your aspirations which are left unfulfilled
because of remunerations we present to you Bajaj Chetak
CNG which reduces your travel cost to one rupee per km and
helps you contribute to a greener environment.

POINTS OF PARITY

POINTS OF DIFFERENCE

Two wheeler

CNG kit

4 stoke 125cc engine

Low fuel cost

Disc brakes

High milege

Tubeless tyres

BS IV norms compliant

Digital Speedometer

Large Leg space

Auto start

Small Trunk Size

USP(Unique Selling Point)-Presence of CNG kit in a two wheeler

vehicle

PERCEPTUALMAPPING
ECONOMICAL

DAILYCOMMUTE

PERFORMANCE

HIGHPRICED

POSITIONING BASED ON INFORMATION SOURCE

Firms
Communica
tion Mix
Media
Reviews

Product
Features

Packaging

Informatio
n
Source

Competitor
Claims

Retailer
Mix

Pricing

Word of
mouth

MARKETING MIX(4Ps)

PRODUCT
This will be marketed as
the most economical and
environment friendly
product

PRICE
The pricing will be kept
at 55000 so that we can
target the customers
from Bike segment

PLACE
Major areas of
promotion are Metro
cities,Tier II & Tier III
cities

PROMOTION
Striking emotional chord
with customer with
Hamara Bajaj connect &
using Media and Social
media platforms

AUTOMOBILE INDUSTRY

Market Share
Two Wheeler
Three
Wheeler
Passenger
Vehicles
Commercial
Vehicles

Facts about Automobile

Industry:
Industry accounts for 7%
of GDP
Employment to 19 million
people directly and
indirectly
Average annual
production of 17.5 Million
vehicles out of which 2.3
millions exported
The total turnover in
2010-11 was USD 58.5
Billion, turnover by 2016
is slated to be USD 145
Billion

RECENT TRENDS IN AUTOMOBILE SECTOR

Sales of
Scooters
rising up in
comparison
to
motorcycles

Advanced
technology n
form of
Hybrid
Engines
coming into
picture

Big data and

analytics to
play a major
role in
boosting sales

Electric
Motor
Vehicles
slowly
gaining
public
acceptance

COMPETITOR ANALYSIS
Compa
ny

Sales
May
2015

Sales
May
2014

Growth

Market
Share

Main
Similar
Product Product
s

Yamaha

46,084

47,680

-3.35%

3%

R-15

Hero
Moto

5,60,222 5,89,360 -4.94%

56%

Splender Maestro,
Pleasure

TVS

1,75,533 1,74,219 0.75%

6.2%

Apache

Scooty

Honda

3,53,409 3,42,136 3.29%

7.5%

Unicorn

Activa

Suzuki

27,135

30,080

-9.79%

0.59%

Hayate

Access

Royal
Enfield

34,615

24,510

41.23%

1.83%

Bullet

None

Mahindr
a

10,428

15,878

-34.32

1.42%

Centuro

Gusto

Fasciano
,Alpha

THANK YOU