BAJAJ CHETAK SCOOTER GROUP MEMBERS: TEJASWEETA MANIYAR RAJNIE NELGE JAY KARIA SHAFVAN BEARY TIKENDERJIT SINGH MAKKAR NAQUI SHAIKH COMPANY PROFILE The Bajaj group was founded in 1926 by Jamnalal Bajaj. In the mid-1940s, Bajaj Auto Limited(BAL) started as an importer of two- and three-wheelers. In 1959, the company secured a license from the Government of India (GoI) to manufacture two- and three-wheelers. In 1960, BTCL was renamed Bajaj Auto Ltd and in the same year it entered into a technical co
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  BAJAJ CHETAKSCOOTER GROUP MEMBERS:TEJASWEETA MANIYAR RAJNIE NELGE JAY KARIA SHAFVAN BEARY TIKENDERJIT SINGHMAKKAR NAQUI SHAIKH   COMPANY PROFILE   TheBajajgroup was founded in 1926 by JamnalalBajaj.  In the mid-1940s, Bajaj Auto Limited(BAL) started as an importer of two- and three-wheelers. In 1959, thecompany secured a license from the Government of India (GoI) to manufacture two- and three-wheelers.In 1960, BTCL was renamed Bajaj Auto Ltd and in the same year it entered into a technical collaborationwith Piaggio for the manufacture of scooters. With its collaboration with Piaggio coming to an end in theearly 1970s, BAL started manufacturing scooters under the Bajaj brand. BAJAJ CHETAK: A BRIEF INTRODUCTION   BAJAJ   CHETAK was a popular Indian made motor scooter produced by the Bajaj autocompany. Chetak was the only choice for millions of Indian families as an affordable way of transport for decades. The Chetak , BAL's first scooter model under the Bajaj brand, was introduced in 1972.The Chetak , a geared scooter, had reigned over the Indian two-wheeler market in the late 1970s to early1990s In the 1970s and 1980s, scooters dominated the Indian two-wheeler market. Most middle-classIndians preferred scooters because of their durability, low maintenance costs, and versatility andcompared to the motorcycles available in India were heavier and not as fuel efficient as scooters. andwere even costlier. WHAT ISPRODUCT LIFE CYCLE?   Product   life   cycle (PLC) has to do with the life of a product in the market with respect tobusiness/commercial costs and sales measures. It is based on the 4 pivotal points of its coreunderstanding:That products have a limited life . Also product sales pass through distinct stages, each posing differentchallenges, opportunities, and problems to the seller. The profits rise and fall at different stagesof  product   lifecycle . Lastly products require different marketing, financial, manufacturing, purchasing,and human resource strategies in each life   cycle stage. SCHEMATIC GRAPH OF PLC   STAGES OFPRODUCT LIFE CYCLE  Introduction stage Firm tries to promote demand for its new offering, inform the market about it, give freesamples to entice consumers to make a trial purchase, and explain its features, uses, and benefits.Growth stage Sales climb quickly as new customers join early users who now are repurchasing the item.Maturity stage Industry sales eventually reach a saturation level at which further expansion is difficult.Decline stage Sales fall and profits decline. STAGE I - INTRODUCTION  Starting Price Quoted in the start was roughly between Rs. 8000 9000/The company·s first scooter model, Chetak (intentionally it was given the name of Maratha ruler Chatrapathi Shivaji·s horse·s name),was launched in 1972. Chetak remained Bajaj ·s flagship brand for over 10 years. There was a time whenpeople had to wait hell lot of a time after pre booking their  Chetak . The Launch of  Bajaj   Chetak wasmainly targeted at economical Class and people could afford it considering its parallel competition in thesame segment market. Late 70s had been the Golden period for the Bajaj scooters, especiallythe Chetak . In 1977 Bajaj Auto claimed to have sold a lakh of Chetaks in just one FY.  STAGE II - GROWTH  Some of the Significant changes brought about in this scooter was change in many tech specs, mainlycompared to its competiton from Motorbikes, Mopeds which were gaining grounds in term of marketshare. Over 2 and a half decades until the halt of 1995 the company did not face any stiff competitionfrom any 2 wheeler market segment, apart from the introduction of minor changes in its performanceparameters meaning more augmented changes in the scooter itself like colour some peripheral outer changes in parts Some of the competition were from the scooter segments LML Vespa Scooters,Automobile Products of India's Lambretta.The Price wars was not the criteria for the competition as the demand itself surpassed the supply and inIndia owning scooter at that time was a status symbol. Bajaj   Chetak had targeted the soft spot of whatmost Indian people in that time desired in their two wheelers which was durability, low maintenance costs,and versatility, and the ease of its use which made it the most dependable and flexible transport mode.Briefly this Scooter is a comfortable riding machine, much economical to your bank balance as comparedto bikes, long lasting and durable, does not need much repairs and when it does the spares are easilyavailable and inexpensive. The main marketing strategy used by Bajaj   Chetak was mainly targetting theemerging middle class in India and adding the feeling of 'we' or the feeling of belongingness by strongsentimental slogans like Hamara Bajaj . The Approach of this Marketing Strategy adoptedby Chetak was Non-Pragmatic. STAGE III- MATURITY  In the late 1990s, the Indian two-wheeler market witnessed a shift in consumer preferences. Thepopularity of geared scooters began to wane while that of motorcycles soared. There were variousreasons for the shift -India was undergoing a demographic change, with the proportion of younger peoplein the population growing significantly; the economy was growing, which increased the disposableincomes of the middle class; also, many newer models of motorcycles, with improved designs andmodern technology had become available in the market. While these changes were taking place in themarket, the features of scooters, especially those of the Bajaj   Chetak , remained essentially unchanged. STAGE IV ± DECLINE  The primary reason is that the Brand forgot the customers. Another case of Marketing Myopia. Thecompany failed to understand the changing perception of the customers towards scooters. Rather thanlooking at the customers, the company focused on influencing Government to block the opening up of economy. Bajaj never did anything with the product . For 40 years Chetak had the same look, samequality and style. During the mid nineties the company realised lately that the segment has shifted tomotorcycles. Scooters were no longer the option. But did the company made a mistake in discarding thescooter segment ? Looking at the way the share prices are going, the marketReasons for Failure? or Decline? Bajaj never was serious about product development. The R&D spentfor a long time was a miniscule 1%. The average cycle time for the new product development was 4-5years compared to 2-3 years of Japanese competitors. Even after the opening up of economy, thescooter segment did not witness much competition. The players like Vespa did not had much of successin this segment. Kinetic Honda managed to carve a niche with its gearless scooters. Another segmentwhich was growing was the scooterette segment which was dominated by TVS scooty.The players like Vespa did not had much of success in this segment. Kinetic Honda managed to carve aniche with its gearless scooters. Another segment which was growing was the scooterette segment whichwas dominated by TVS scooty. Bajaj never seriously looked at customer perception about Chetak .The product had serious problems like starting trouble and riding comfort. The Tilting the chetak to theside for starting was a common joke. Did the company do anything for that ? No There was nothingwrong with the Promotion. Hamara Bajaj and No one can beat a Bajaj were famous base lines.There was nothing wrong with distribution and the pricing was very reasonable. The major problem was inthe first P : Product .  OUR OWN STRATEGYPRICE:   Bajaj Chetak's price was truly affordable. But the new motor cycles entering the two wheeler segmentoffered better technology & fuel efficiency than Bajaj   Chetak at almost same price. Price in our view wasnever a issue associated with this product , it perfectly suited the profile of the product in the marketwhether taken earlier in mid seventies or late nineties as it was according to its offerings. It was perfectlytargeting the economical class which was itself a part of the large mass of population itself, meaningaffordable range. PRODUCT:  The company should look upon its R&D and improve the overall looks of  Bajaj   Chetak . It should makeefforts to change the quality & style of the scooter to suit the tastes & preferences of its customers.The product had serious problems like starting trouble & riding comfort, which need to be eliminated.Auto start feature which was prominent should have been introduced. Though counted as efficient inmany terms Fuel efficiency was a major issue. In our view the combustion efficiency of the scooter needed to be improved and efficiency in terms of mileage needed a major boost. PROMOTION & ADVERTISING:  The main marketing strategy used by Bajaj   Chetak was mainly targeting the emerging middle class inIndia and adding the feeling of 'we' or the feeling of belongingness by strong sentimental slogans like Hamara Bajaj . The Approach of this Marketing Strategy adopted by Chetak was Non-Pragmatic Bajaj   Chetak should come out with various schemes & incentives, no warranty schemes werewailed by the company or ad-don products and service centers were less in number which should havebeen more to ease customer support and product maintenance centers. Thank You!!!   Indeed«.truly it was ³HamaraBajaj´    
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