From Market Leader To Follower Marketing Essay

Bajaj Auto Limited, a taking Indian maker and exporter of two Wheelers and three Wheelers since 1945. Bajaj Auto was the market leader since 1945 to till the late ninetiess. However company failed to imagine the structural and industrial alterations go oning in the Indian car industry since the early 1990. Before 1990, Bajaj Auto was merely market participant who enjoys most of market portion in India but after the liberalisation of Indian economic system in 1991, many foreign rivals entered the Indian car industry with new engineering and advanced merchandises. Many joint ventures had come into being in specifically two Wheeler industry. Domestic companies made confederations with foreign participants to increase the worth of concern and market portion. Bajaj Auto, instead analysing the competition, stuck with an old concern theoretical account and neither upgraded its scooter theoretical accounts nor focused on the new turning bike section.

Bajaj Auto besides failed to present new and advanced merchandises in quickly turning gearless scooter market in this period. Bajaj Auto Continuously focused on the geared scooter market which was quickly falling down. As MD of Bajaj Auto Limited said that we failed to expect the clients ‘ future behaviour. We thought that we are traveling in the right side, but we were non. We are to be responsible for our laterality falling. With pattern old schemes and concentrating incorrect dimensions of the industry, BAL lost its leading place and in two wheel scooter section to Hero Honda and HMSI and became a follower in the overall Indian car industry.

The Transformation

In late 2001, Bajaj Auto began a transmutation procedure to shift its image from merely being a scooter maker to a bike maker. Under this transmutation procedure, Bajaj Auto made many attempts to recover client trust as a bike maker and reconstruct its place in the bike industry.

Bajaj Auto started a new advertisement run to alter consumer perceptual experience about its trade name. In new advertizement, BAL displayed new trade name bike alternatively of a scooter ( chief portion of old advertizement ) as a witting attempt to alter consumer ‘s perceptual experience. New advertizement featured ‘slice of life ‘ state of affairss of ‘ new age India ‘ . Marketing director of Bajaj Auto, Nitin Kochar said, “ There is a demand to travel in a bike industry now and this advertizement run will truly helpful to alter the company ‘s image ” . Part of this transmutation, Bajaj Auto besides adopted a new concern scheme in mid-2007. New concern scheme was “ Distinctly Ahead ” to distinguish Bajaj Auto in the strongly competitory two Wheeler market. A new concern scheme based on three nucleus values, velocity, invention and flawlessness. BAL ‘s MD said “ it is non adequate to be better, we have to be distinguishable ” . In new scheme, Bajaj Auto focused on communicating development, invention and merchandise development. BAL besides exposed new logo which clearly displayed new image of Bajaj Auto.

In the transmutation procedure, Core focal point was on bikes. In 2002, there were three chief sections in the bike market, entry section, executive section and premium section. Initially Bajaj focused on premium section and launched two minibikes with higher monetary value. While concentrating on bike section, Bajaj Auto continued its battles to resuscitate the geared scooter market which was fundamentally the strength of BAL at that clip. BAL besides launched Pulsar in the entry section with cheaper monetary value. Against the competition from market leader Hero Honda, BAL launched CT100 further in 2004 positioned as an entry degree motorcycle. In 2006, BAL direction announced that it had stopped production of Chetak because of low credence from the market. Till 2008, BAL had adequate merchandises to vie in the bike industry. BAL had merchandises in its merchandise line, Pulsar 220 DTS-Fi, Bajaj Platina, Bajaj Eliminator and XCD 125 DTS-Si with advanced Digital Twin Spark-Swiri initiation engine.

Success Story

After come ining bike successfully, in 2001-02, BAL secured growing of 15 per centum, gross revenues of Rs. 41.26 billion and increase of 55 per centum as compared to old twelvemonth. During this period, BAL was the 2nd largest maker of bikes in India holding 23 per centum market portion. In 2002-03 BAL registered gross revenues increased by 23.1 per centum. During the same period, BAL was the market leader in the premium and entry section but due to disregarding the executive section, BAL had merely 7 per centum growing in this section. 2003-04 was really good for BAL and BAL registered 23.7 per centum market portion in this period. During the same period, BAL reached 55 per centum market portion in the premium section of the bike market.

As the way of successful transmutation, Bajaj Discover-DTSi won the award ‘ ” Bike of the twelvemonth 2005 ” . In 2006, BAL was able to capture the 47 per centum market portion in entry section. Despite market leader in entry section, BAL decided to halt fabrication entry degree motorcycle because of low net income border. As of mid-2009, BAL has successfully transformed itself as a 2nd largest bike maker. At the terminal of 2009, BAL was market leader in the premium section with 47 per centum market portion and captured 34 per centum market portion in entry section.

This transmutation scheme was rather successful but some disadvantages BAL gained due to it. BAL faced worsening growing in gearless scooter sections, although that was the nucleus strength of the company at that clip. BAL wholly ignored the geared and gearless scooter section, which would still hold some growing in it and other rivals like TVS enjoyed the leading in these section.