A PROJECT REPORT ON MARKETING STRATEGY OF BAJAJ AUTO

BY ANURAG MANWAR UNDER THE GUIDANCE OF PROF. GOURAV PETKAR SUBMITTED TO "UNIVERSITY OF PUNE" IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA)

ASMS, INSTITUTE OF PROFESSIONAL STUDIES, PIMPRI, PUNE 411018 2010-2012

College certificate

Company certificate

DECLARATION

I, ANURAG MANWAR hereby declare that this project report titled Marketing strategy of bajaj auto india is the record of authentic work carried out by me during the academic year 2010-12 and have not been leaked to any organization or institute for any favour, whatsoever. And in the future also we promise to keep the integrity of the data and report intact while submitting it to the college.

DATE

PLACE

ANURAG MANWAR

ACKNOWLEDGEMENT

I am indeed very thankful to the H.R. manager Mr. P. S. RATNAPARKHI for permitting me to

undergo implant at YESHSHREE GROUP OF COMPANIES-WALUJ AURANGABAD.

I would also like to thank to the Plant Head MR. S.N. INAMDAR for his gracious help and

guidance that nhas lead my training to be successfully complete. Sincere Thanks to the entire

Team staff of Y. P. C. P. L. for there overwhelming co-operation and supportive service.

THANKING YOU

Executive summary

1. New customer acquisition. 2. Management and support of existing customer in their territory. 3. Customer service. 4. Marketing support 5. Debt collection 6. Logistical support.

Index

CHAPTER NO
1

CHAPTER NAME
INTORDUCTION OF BAJAJ ALLIANZ GENREL INSURANCE CO. SECTOR PROFILE

PAGE NO
7

10

COMPANY AND PRODUCT PROFILE

16

4 5

LTERATURE SURVEY OBJECTIVE AND SCOPE OF PROJECT

45 47

RESEARCH METHODOLOGY

49

DATA ANALYSIS AND INTERPRETATION

58

OBSERVATION AND FINDINGS

63

9 10

CONCLUSION SUGGESTION AND RECOMMENDATION

65 67

11

BIBLOGRAPHY

70

INTRODUCTION OF BAJAJ AUTO INDIA LTD

INTRODUCTION
In India, a two-wheeler is used as a personal/family vehicle or a goods carrier, whereas it is confined to sports/racing (heavy motorcycles) or short distance shopping (mopeds). So this report records the findings and analysis of a survey conducted in order to assess the marketing strategies of Bajaj Auto in two wheeler segment in automobile industry. The survey has been conducted in a systematic manner right from investigating the objective and breaking it down to the various components of the research to arriving at final conclusions on possible parameters to study the customer satisfaction Marketing Strategy Of Bajaj Auto. An attempt has been made to understand the Marketing Paramiters of Bajaj Auto.

The questionnaire was designed on the basis of an exploratory research. The actual data collection was through personal surveys of a convenient sample of units. Based on analysis and what was found, I have tried to develop that the players will have to compete on various fronts viz pricing, technology, product design, productivity, after sale service, marketing and distribution. In the short term, market shares Bajaj Auto are going to be sensitive to capacity, product acceptance, pricing and competitive pressures from other manufacturers.

According to the survey, All the three segments, motorcycles, scooters and mopeds have witnessed capacity additions in the last one-year and it will continue in the upcoming period. Over this period, only the motorcycle segment is expected witness higher demand vis--vis supply, while the scooters and mopeds supply will outstrip demand. As incomes grow and people feel the need to own a private means of transport, sales of two-wheelers will rise. Penetration is expected to increase to approximately to more than 25% by 2011. While buying a motorcycle economy is the main consideration in form of maintenance cost, fuel efficiency. Bajaj Discover is considered to be most Affordable fuel-efficient bike on India road. Objectives: The project title Marketing Strategies Bajaj Auto tells about the objective of the study in a nutshell. And also close look at the Indian auto mobile industry and other componys like hero Honda and Suzuki.

To identify and analyze the marketing strategies of automobile industry in two wheeler segment of:

Bajaj Auto

To assess a comparative analysis of the above company.

To study the preference / perception of the customers toward the Bajaj Autos brand satisfaction.

: Bajaj Auto

Broader production base: The Company should be poised to drop its costs and increase its competitive strength in the market place so that it may be able to broader its production bases. Low per capita use: The per capita consumption Bajaj auto products in general and Bajaj Caliber in particulars in India is not so high as in China and Japan. This notwithstanding the fat that the Company has been able to achieve a mixed bag of success and failures recently. The fact remains that this disparity is expected over the coming years especially with prices expected to drop in the coming year It should increase its number of authorized dealers and service centers in India. Global thrust: It can thrust to emerge as a global player of respect for which it is necessary to export in bigger quantities than it has done in the past. This will require big capacities. The media Revolution, Exposure to foreign brands and raising incomes will promote greater consumer awareness. The market for consumer goods will continue to grow and rural demand is expected to be particularly strong as a result of several years of comparative agricultural prosperity. Therefore the company should increase its production capacity and capitalize on its resource-mobilizing capabilities to this end only.

Limitations

The sample was collected using convenient sampling technique. So result may not give an exact representation of the population. Shortage of time is also reason for incomprehensiveness. The views of the people are biased therefore it does not reflect true pictures. The data is secondary and has been collected from various websites. So its authenticity is questionable.

market size of two wheelers in india

After facing its worst recession during the early 1990s, the industry bounced back with a 25% increase in volume sales in FY1995. However, the momentum could not be sustained and sales growth dipped to 20% in FY1996 and further down to 12% in FY1997. The economic slowdown in FY1998 took a heavy toll of two-wheeler sales, with the year-on-year sales (volume) growth rate declining to 3% that year. However, sales picked up thereafter mainly on the strength of an increase in the disposable income of middle-income salaried people (following the implementation of the Fifth Pay Commission's recommendations), higher access to relatively inexpensive financing, and increasing availability of fuel efficient two-wheeler models. Nevertheless, this phenomenon proved short-lived and the two-wheeler sales declined marginally in FY2001. This was followed by a revival in sales growth for the industry in FY2002. Although, the overall two-wheeler sales increased in FY2002, the scooter and moped segments faced degrowth. FY2003 also witnessed a healthy growth in overall two-wheeler sales led by higher growth in motorcycles even as the sales of scooters and mopeds continued to decline. Healthy growth in two-wheeler sales during FY2004 was led by growth in motorcycles even as the scooters segment posted healthy growth while the mopeds continued to decline. Figure 1 presents the variations across various product sub-segments of the two-wheeler industry between FY1995 and FY2004.

Demand Drivers The demand for two-wheelers has been influenced by a number of factors over the past five years. The key demand drivers for the growth of the two-wheeler industry are as follows: Inadequate public transportation system, especially in the semi-urban and rural areas; Increased availability of cheap consumer financing in the past 3-4 years; Increasing availability of fuel-efficient and low-maintenance models; Increasing urbanisation, which creates a need for personal transportation; Changes in the demographic profile; Difference between two-wheeler and passenger car prices, which makes two-wheelers the entrylevel vehicle; Steady increase in per capita income over the past five years; and Increasing number of models with different features to satisfy diverse consumer needs.

While the demand drivers listed here operate at the broad level, segmental demand is influenced by segment-specific factors.

MARKET CHARACTERISTICS
Demand Segmental Classification and Characteristics The three main product segments in the two-wheeler category are scooters, motorcycles and mopeds. However, in response to evolving demographics and various other factors, other subsegments emerged, viz. scooterettes, gearless scooters, and 4-stroke scooters. While the first two emerged as a response to demographic changes, the introduction of 4-stroke scooters has followed the imposition of stringent pollution control norms in the early 2000. Besides, these prominent sub-segments, product groups within these sub-segments have gained importance in the recent years. Examples include 125cc motorcycles, 100-125 cc gearless scooters, etc. The characteristics of each of the three broad segments are discussed in Table 1. Table 1 Two-Wheelers: Comparative Characteristics Scooter Price*(Rs. as in January > 22,000 2011) Stroke Engine Capacity (cc) Ignition Engine Power (bhp) Weight (kg) Fuel Efficiency (kms per litre) Load Carrying *Ex-showroom Mumbai 2-stroke, 4stroke 90-150 Kick/Electronic 6.5-9 90-100 50-75 High Motorcycle > 30,000 Mainly 4stroke Moped > 12,000 2-stroke

100, 125, > 125 50, 60 Kick/Electronic Kick/Electronic 7-8 and above > 100 50-80+ Highest 2-3 60-70 70-80 Low

Compiled by INGRES Segmental Market Share The Indian two-wheeler industry has undergone a significant change over the past 10 years with the preference changing from scooters and mopeds to motorcycles. The scooters segment was the largest till FY1998, accounting for around 42% of the two-wheeler sales (motorcycles and mopeds accounted for 37% and 21 % of the market respectively, that year). However, the motorcycles segment that had witnessed high growth (since FY1994) became larger than the scooter segment in terms of market share for the first time in FY1999. Between FY1996 and 9MFY2005, the motorcycles segment more than doubled its share of the two-wheeler industry to 79% even as the market shares of scooters and mopeds stood lower at 16% and 5%, respectively.

Scooters are perceived to be family vehicles, which offer more functional value such as broader seat, bigger storage space and easier ride. However, with the second-hand car market developing, a preference for used cars to new two-wheelers among vehicle buyers cannot be ruled out. Nevertheless, the past few years have witnessed a shift in preference towards gearless scooters (that are popular among women) within the scooters segment. Motorcycles, offer higher fuel efficiency, greater acceleration Figure 2 Trends in Segmental Share in Industry Sales (FY19969MFY2005) While scooter sales declined sharply by 28% in FY2001, motorcycle sales reported a healthy growth of 20%, indicating a clear shift in consumer preference. This shift, which continues, has been prompted by two major factors: change in the country's demographic profile, and technological advancements. Over the past 10-15 years the demographic profile of the typical two-wheeler customer has changed. The customer is likely to be salaried and in the first job. With a younger audience, the attributes that are sought of a two-wheeler have also changed. Following the opening up of the economy and the increasing exposure levels of this new target audience, power and styling are now as important as comfort and utility. The marketing pitch of scooters has typically emphasised reliability, price, comfort and utility across various applications. Motorcycles, on the other hand, have been traditionally positioned as vehicles of power and style, which are rugged and more durable. These features have now been complemented by the availability of new designs and technological innovations. Moreover,

higher mileage offered by the executive and entry-level models has also attracted interest of twowheeler customer. Given this market positioning of scooters and motorcycles, it is not surprising that the new set of customers has preferred motorcycles to scooters. With better ground clearance, larger wheels and better suspension offered by motorcycles, they are well positioned to capture the rising demand in rural areas where these characteristics matter most. ply Manufacturers As the following graph indicates, the Indian two-wheeler industry is highly concentrated, with three players-Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS Motor Company Ltd (TVS) - accounting for over 80% of the industry sales as in 9MFY2005. The other key players in the two-wheeler industry are Kinetic Motor Company Ltd (KMCL), Kinetic Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India Ltd (Yamaha), Majestic Auto Ltd (Majestic Auto), Royal Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P) Ltd (HMSI).

Although the three players have dominated the market for a relative long period of time, their individual market shares have undergone a major change. Bajaj Auto was the undisputed market leader till FY2000, accounting for 32% of the two-wheeler industry volumes in the country that year. Bajaj Auto dominance arose from its complete hold over the scooter market. However, as the demand started shifting towards motorcycles, the company witnessed a gradual erosion of its market share. HHML, which had concentrated on the motorcycle segment, was the main beneficiary, and almost doubled its market share from 20% in FY2000 to 40% in 9MFY2005 to emerge as the market leader. TVS, on the other hand, witnessed an overall decline in market share from 22% in FY2000 to 18% in 9MFY2005. The share of TVS in industry sales fluctuated on a year on year basis till FY2003 as it changed its product mix but has declined since then.

Technology Hitherto, technology transfer to the Indian two-wheeler industry took place mainly through: licensing and technical collaboration (as in the case of Bajaj Auto and LML); and joint ventures (HHML). A third form - that is, the 100% owned subsidiary route - found favour in the early 2000s. A case in point is HMSI, a 100% subsidiary of Honda, Japan. Table 2 details the alliances of some major two-wheeler manufacturers in India.

Although the three players have dominated the market for a relative long period of time, their individual market shares have undergone a major change. Bajaj Auto was the undisputed market leader till FY2000, accounting for 32% of the two-wheeler industry volumes in the country that year. Bajaj Auto dominance arose from its complete hold over the scooter market. However, as the demand started shifting towards motorcycles, the company witnessed a gradual erosion of its market share. HHML, which had concentrated on the motorcycle segment, was the main beneficiary, and almost doubled its market share from 20% in FY2000 to 40% in 9MFY2005 to emerge as the market leader. TVS, on the other hand, witnessed an overall decline in market share from 22% in FY2000 to 18% in 9MFY2005. The share of TVS in industry sales fluctuated on a year on year basis till FY2003 as it changed its product mix but has declined since then. With the two-wheeler market, especially the motorcycle market, becoming extremely competitive and the life cycle of products getting shorter, the ability to offer new models to meet fast changing customer preferences has become imperative. In this context, the ability to deliver newer products calls for sound technological backing and this has become one of the critical differentiating factor among companies in the domestic market. Thus, the players have increased their focus on research and development with some having indigenously developed new models as well as improved technologies to cater to the domestic market. Further, with exports being one of the thrust areas for some Indian two-wheeler companies, the Indian original equipment manufacturers (OEMs) have realised the need to upgrade their technical capabilities. These relate to three main areas: fuel economy, environmental compliance, and performance. In India, because of the cost-sensitive nature of the market, fuel efficiency had been an interest area for manufacturers. It is not only that the OEMs are increasing their focus on in-house R&D, they also provide support to the vendors to upgrade the technology and also assist them striking technological alliances.

Trends in the two wheeler Companies raising capacity to meet the growing demand All the major two-wheeler manufacturers, viz. Bajaj Auto, HHML, TYS, HMSI and others, have increased their manufacturing capacities in the recent past. The total capacity of these players stood at 7.8 million units per annum (FY2003) as against total market sales of 3.8 million units in FY2002. Most of the players have either expanded capacity, or converted their existing capacities for scooters and mopeds into those for manufacturing motorcycles. The move has been prompted by the rapid growth reported by the motorcycles segment since FY1995. HHML increased the capacity of its plants from 1.8 million units in FY2003 to 2.25 million in FY2004 and has been able to achieve 92% capacity utilisation. In light of the increase in demand for motorcycles, the company plans to set up a new plant. Since its entry in the Indian market during FY2002, HMSI has aggressively expanded its capacity. industry

Niche markets also witnessing intense competition A significant trend witnessed over the past five years is the inclination of consumers towards products with superior features and styling. Better awareness about international models has raised expectations of consumers on some key attributes, especially quality, styling, and performance. High competitive intensity has prompted players to launch vehicles with improved attributes at a price less than the competitive models. In an effort to satisfy the distinct needs of consumers, producers are identifying emerging consumer preferences and developing new models. For instance, in the motorcycles segment, motorcycles with engine capacity over 150cc, is a segment that has witnessed significant new product launches and hence, become more competitive. The indigenously launched Pulsar 150 had met with success on its launch and thereafter, a host of models have been launched in this segment by various players. While Bajaj Auto launched the Pulsars (150 and 180 cc) with digital twin spark technology (DTSi) that offers a powerful engine and fuel efficiency of 125 cc models, model launches by other players include LML's Graptor/Beamer, HMSI's Unicorn besides the HHML's CBZ (improved version launched in 2003-04) and TVS' Fiero F2. Moreover, in the recent past, the motorcycle segment has witnessed launch of vehicles with higher engine capacity (higher than 150cc) and power (higher than 15bhp). These include models such as Bajaj Auto Eliminator and Royal Enfield's Thunderbird followed by HHML's Karisma. Besides these, KEL has launched premium segment motorcycles GF 170 and GF Laser besides launching products from the portfolio of its technology partner (Hyosung's Aquila and Comet 250). The products in this segment cater for style conscious consumers. Quite a few players are developing models

combining features such as higher engine capacity" optimum mix of power and performance, and superior styling. However, the extent of shift to these products would depend on the positioning of such products in terms of price. In the scooters segment, the market for plastic-bodied variomatic scooters continues to witness growth in the scenario of overall decline in scooter volumes. Higher volumes and growth are especially true for certain scooter models, such as Honda Activa, that brought in new technology (besides variomatic transmission) to further differentiate themselves. Thus, the need to differentiate and create a niche has led to companies strengthening their research and development (R&D) capabilities and reducing the development time for new models. Increasing focus on exports For the first nine months of FY2005, two-wheeler exports increased by 37% over the corresponding previous, led mainly by motorcycles even as exports of other two-wheelers were healthy. While motorcycle exports increased by 40%, scooter and moped exports increased by 29% and 27% respectively. Motorcycle exports by Bajaj Auto, HHML and TVS have reported a to bust growth in FY2005 and are expected to increase further in the medium term. Table 3 Two-Wheeler Exports from India (in numbers) FY2000 FY2001 FY2002 FY2003 FY2004 CAGR 9MFY2005 (FY200004) Scooters Mopeds Total Source: SIAM 20,188 27,754 25,625 41,339 44,174 28332 18,971 30116 23330 53148 24234 27.4 51.4 -3.3 33.5 44832 188807 22739 256378 Motorcycles 35,295 56,880 126122 187287

83,237 111,138 104183 179568 264669

Although the Indian two-wheeler manufacturers have forayed on their own in their target export markets, there have been instances of tie-ups with the technology partners. Bajaj Auto's tie-up with Kawasaki to jointly market Bajaj products in Philippines is a case in point. Under the tie-up, M/s Kawasaki Motors Philippines Corporation has been appointed as exclusive distributors to market select Bajaj two-wheelers that include Byk, Caliber 115 and Wind 125. These vehicles

are being sent to Philippines in the completely built unit (CBU) form. Other strategy of expanding international presence considered by few players is that of setting up assembly lines in select South East Asian countries either on their own or in partnership with local players. Besides, plans of select overseas technology partners to source from their Indian partners and plans of global majors to develop their Indian manufacturing unit as a sourcing hub may also lead to increase in two-wheeler exports from India. Companywise two-wheeler exports since FY2000 are presented in the following Table 4.

Table 4 Company-wise two-wheeler exports (FY2000-9MFY2005) FY2000 FY2001 FY2002 FY2003 FY2004 CAGR 9MFY2005 (FY200004) 56.8 40.5 n.a 40.2 21.3 4.6 33.5 87225 43441 27734 36666 27539 33773 256378

Bajaj Auto HHML HMSI TVS Yamaha Others Total

14924 10061 0 7265 15197 35790 83237

16112 10324 0 6621 20446 57635

28527 13023 1293 7765 20321 32752

53366 21165 10916 9636 45546 39053

90210 39254 31414 28093 32906 42792

111138 103681 179682 264669

Source: SIAM Vehicle Emission Norms Emission norms for all categories of petrol and diesel vehicles at the manufacturing stage were introduced for the first time in India in 1990 and were made stricter in 1996. When the 1996 norms were introduced, it resulted in certain models being withdrawn from the market. With Stage I India 2000 emission norms coming into place, the cost of developing suitable technology has remained high. The emission norms that are currently in force for two-wheelers and three-wheelers are more stringent than the Euro II norms. The roadmap suggested for emission norms for two/threewheelers by the Expert Committee on Auto Fuel Policy is as follows: For two-/three-wheelers the emission norms are recommended to be the same in the

entire country: For new vehicles: Bharat Stage II norms throughout the country from April 1, 2005 Bharat Stage III norms to be applicable preferably from April 1, 2008 but not later than April 1, 2010. For reducing pollution from in-use vehicles New pollution under control (PUC) checking system for all categories of vehicles to be put in place by April 1, 2005 Inspection & maintenance (I&M) system for all categories of vehicles to be put place by April 1, 2010 Performance checking system of catalytic converters and conversion kits installed in vehicles to be put in place by April 1, 2007.

Table 5 presents the emission norms for two-wheelers that were in place in the past, the India 2000 emission norms, and the norms that have been implemented for April 2005 (Stage II) and proposed for 2008 (Stage III).

Table 5 Exhaust Emission Norms Vehicle Towwheelers (gm/Km) Threewheelers (petrol) Threewheelers (Diesel) Pollutants CO HC+Nox CO HC+Nox CO HC+Nox PM Old Norms 12-30 8-12 12-30 8-12 1996 2000 2005* 2008/10** 4.5 3.6 6.8 5.4 2.0 2.0 4.0 1.5 1.5 1.5 2.25 2 1 0.85 0.10 1 1 1.25 1.25 1.1 1 0.05

CO: Carbon Monoxide; HC: Hydrocarbon; Nox: Nitrogen Oxide, PM: Particulate Matter, * Maximum Sulphur parts per million (ppm) permissible of 150 and ** Maximum Sulphur ppm permissible of 50 Compiled by INGRES

To be able to meet the exhaust norms, the Auto Fuel Policy has suggested following technologies:

Table 6 Technologies for meeting the emission norms for Spark Ignited Vehicles 2/3 - wheelers Level of Emission Norms Euro I/India 2000 2-Stroke Technology Intake, exhaust, combustion optimisation Catalytic converter 4-Stroke Technology 4-Stroke engine technology Hot tube Secondary air injection Fuel injection Carburetor + catalytic converter Learn burn Fuel injection + catalytic converter

Euro II/Bharat Stage II Secondary air injection Caatalytic Converter Euro III/Bharat Stage III Euro IV/Bharat Stage IV Fuel injection Catalytic converter To be developed

Source: National Auto Fuel Policy

The adoption of new technologies for compliance with stricter emission norms may affect the prices of vehicles. Some two-wheeler manufacturers are testing electronic fuel injection systems for motorcycles. To begin with, electronic systems are likely to be introduced in premium segment motorcycles.

Fiscal Policy

The Union Budget for 2001-02 had lowered the excise duty on two-wheelers (with engine capacity in excess of 75 cc) from 24% to 16%. The manufacturers responded to this by passing on a relatively large part of the excise cut to customers. The Union Budget thereafter have left the excise duty on two-wheelers unchanged. But the Union Budget 2004-05 provides for a weighted deduction of 150% for investments in R&D. This may facilitate increasing R&D allocations and allow for improvement in the technical as well as product development skills of the Indian companies.

Indian Auto Policy 2002

The Government of India approved a comprehensive automotive policy in March 2002, the main proposals of which are as under:

Foreign direct investment : Automatic approval is proposed to be granted to foreign equity investment up to 100% for manufacture of automobiles and components.

Import tariff : Import tariffs are proposed to be fixed at a level such that they facilitate the development of manufacturing capabilities as opposed to mere assembly.

Incentives for R&D : The weighted average tax deduction under the Income Tax Act, 1961 for automotive companies is proposed to be increased from current level of 125% (The weighted average deduction for R&D was increased to 150% in the Union Budget 2004-05). Further, the policy proposes to include vehicle manufacturers for a rebate on the applicable excise duty for every 1% of the gross turnover of the company expended during the year on R&D.

Environmental aspects : Adequate fiscal incentives are proposed to promote the use of lowemission auto fuel technology (in line with the Auto Fuel Policy). The auto policy states the Government's intent to align domestic policy with the international practice of imposing higher

road tax on old vehicles so as to discourage their Government Policies on Indian Automobile Industry The Indian automobile industry in the economic scenario of the country. The automobile sector in India, record sales of more than one million passenger cars per year. The percentage of automobile exports has risen significantly during the last few years. The government policies on Indian automobile industry have been framed in order to aid in the expansion of the automobiles sector in India.

During the early stages, the automobile industry was not accorded much importance by the Indian Government. However, the attitude changed during the 1990's. A number of reforms were initiated in 1991. Liberal policies affected during this period, proved to be beneficial to the automobile industry. The fiscal measures, tax reliefs and reforms in equity regulations and foreign exchange led to significant growth in the automobile sector. A reduction in the percentage of tariffs imposed on exports and a change in the banking policies was instrumental in the expansion and growth of the banking sector.

Prior to mid 1990s the automobile sector comprised of indigenous companies. The automobile market in India was however, opened up to foreign investors in 1996. International names like Ford, Hyundai, Toyota, Volvo, Daimler Chrysler and GM Honda were thus, able to make their foray into the Indian automobile sector. Furthermore, the auto emission rules issued by the government in recent years ensured that the vehicles manufactured in India, catered to international standards. At present, the automobiles sector contributes 4 % to the GDP. About 9.7 million automobiles were manufactured in 2005-2006. Export figures had crossed the magic

figure of one billion during 2003-2004. A reduction in the tariff imposed on car exports has been effected by the Indian government. There has also been a removal of the minimum capital investment required from new investors. The new policy is also in favor of reduction in excise duty for small automobiles and low emission and multi utility cars. The tariff policy is also to be reviewed on a regular basis in order

to affect a balance between domestic industry and international trade. There has also been a proposal for tax relaxation on investment of more than Rs. 500 crore. The government has recently proposed for an infrastructure that will provide one stop clearance for any kind of proposal for foreign direct investment in the automotive sector. This will include the local clearanuse. clearance system also for the same purpose. There are also plans for imposing a 100 % tax deduction.

RESEARCH METHODOLOGY

MEANING OF RESEARCH Research, simply put, is an Endeavour to discover intellectual and practical answer to problem through application of scientific method to the knowledge universe. It is a systematic collection, recording, and analysis of data concerning the related issues. The principal objective of this task is to unfold certain facts regarding a predicting area of inquiry. It is discovery of fact, development of fact and verification of fact. DIFINITION OF RESEARCH Research is the process of systematically obtaining accurate answer to significant and pertinent question by the use of scientific method of knowledge. - According to Clover & Balsely Research is defined as a careful investigation or enquiry especially through search for new fact in any branch of knowledge. -In the advanced learners Dictionary of Current English (Oxford)

PROCESS OF RESEARCH Problem Identification Research Design Define Research Objective

 Sources of Data Collection Data Analysis Finding Recommendation & suggestion

RESEARCH DESIGN Research design is nothing but a working plan prepared by a researcher before actually starting research work. It constitutes the blue print for the collection, measurement and analysis of data.

RESEARCH TYPE Descriptive research deals with the surveys and fact finding investigation with adequate interpretation. It is simplest type of research carried out by the researcher. Data are collected by using one or more appropriate methods like: interviewing, observation, and questionnaire. In this type of research researchers have no control over variables.

SAMPLING: Research Type Sampling Method Sample Size Sample Unit Sampling Frame : Descriptive Research : Probability / Random Sampling : 70 : Geographical units Amravati (City) : Well structured questionnaires

Sampling Frame:

It is also known as source list. It contains the names of all the items of a universe. In other words, the sample frame is a list of element in the population from which the sample is actually drawn. A list containing all such sampling unit is known as sampling frame. Sampling frame taken for this research was individual.

MEANING OF RESEARCH Research, simply put, is an Endeavour to discover intellectual and practical answer to problem through application of scientific method to the knowledge universe. It is a systematic collection, recording, and analysis of data concerning the related issues. The principal objective of this task is to unfold certain facts regarding a predicting area of inquiry. It is discovery of fact, development of fact and verification of fact. DIFINITION OF RESEARCH Research is the process of systematically obtaining accurate answer to significant and pertinent question by the use of scientific method of knowledge. - According to Clover & Balsely

Research is defined as a careful investigation or enquiry especially through search for new fact in any branch of knowledge. -In the advanced learners Dictionary of Current English (Oxford)

PROCESS OF RESEARCH Problem Identification Research Design Define Research Objective Sources of Data Collection Data Analysis Finding Recommendation & suggestion

RESEARCH DESIGN Research design is nothing but a working plan prepared by a researcher before actually starting research work. It constitutes the blue print for the collection, measurement and analysis of data.

RESEARCH TYPE Descriptive research deals with the surveys and fact finding investigation with adequate interpretation. It is simplest type of research carried out by the researcher. Data are collected by using one or more appropriate methods like: interviewing, observation, and questionnaire. In this type of research researchers have no control over variables.

SAMPLING: Research Type Sampling Method Sample Size Sample Unit Sampling Frame : Descriptive Research : Probability / Random Sampling : 70 : Geographical units Amravati (City) : Well structured questionnaires

Sampling Frame: It is also known as source list. It contains the names of all the items of a universe. In other words, the sample frame is a list of element in the population from which the sample is actually drawn. A list containing all such sampling unit is known as sampling frame. Sampling frame taken for this research was individual.

Techniques of Sampling: Probability / Random Samples: Random is mathematic term. Random means that every element in the total population has an equal chance or probability of being chosen for the sample and that each of these elements is independent of the other.

Sampling Unit: The decision has to be taken concerning a sampling unit before selecting a sample. Sampling unit may be geographical such as state, district, village etc. Sampling unit taken for this research was only for Aurangabad City (Maharashtra).

DATA COLLECTION TECHNIQUES/TOOLS: Primary Data: Personal interview & group discussion. Meeting. Seminars. Presentation. Customer survey questionnaire. Secondary Data: Internet Intranet Books Annual reports Magazines etc.

DATA ANALYSIS TECHNIQUES: The data thus collected has been analyzed as per the research plan stated above. The techniques that are used for analysis of data are: Tabulation of data: To analyze relevant data of fund portfolio and also feedback given by the customer while survey was conducted. Pie charts: It represents analysis of asset class made in equity and debt market and also shows the response that has been got from the customer in percentage of sample size i.e. 70. Bar graph: To analyze asset allocation made in equity by sector wise and also represents frequency collected during the period of customer need identification survey.

LIMITATIONS OF THE STUDY:

In spite of every care taken on the part of researcher there were certain limitations which could not be overcome and are as follows: Some of the respondents were not so responsive because of the schedule. Sample size was limited to 70 respondents only. The sample may not adequately represent the whole market. Time constraint is important factor to study all analyses.

Easily unavailability of the secondary source ARRIVAL OF DATA The data can come through following ways

Through websites Company purchase from data providing co Personal contact

Techniques Every company is having their own software for calculating premium. Premium PagePremium page is the page of software information of a customer can be filled regarding his car, make, model, area, manufacturing year of car and registration of car, co-passenger cover; electronic accessories cover CNG cover and after that premium get calculated automatically. Discount can be given to customer by executive and if customer possessing no claim bonus. IVR transaction-

 It is the online transaction can be done by mobile as the payment done policy soft copy goes to
customer email address and within 7 w residential address.

Limitation-Where company can't issue policy

Older than 10 yr Commercial car Newly launched vehicle Invalid RC holder 2 Wheeler

DATA ANALYSIS AND INTERPRETATION

OBSERVATION AND FINDINGS

This sales promotion process was very much satisfying for me not only practically and academically but it also helped me in developing my communication skill and enriched my knowledge also. I have come to know about the importance of marketing especially with regard to Sales Promotion on the most renowned organization like Bajaj Allianz. Especially because of emergence of many competitor with excellence in services &competitive product. The base of this chapter conclusion is on the data analysis or what we say findings. I have finding from the insurance care consultants of the Bajaj Allianz, and their insurance policies on my topic. When the insurance care consultant is asked why they are dealing in this particular insurance policies (product) they mostly stressed on companys image. They also said that all income and age group of customers are attracted towards their product but buyers are mainly from higher and middle-income group.

CONCLUSION

SUGGESTION AND RECOMENDATION

BIBLIOGRAPHY

Books
Kothari C.R Research Methodology, Wishwa Prakashan Kotler P. and Armstrong G., (2005) Principles of Marketing New Delhi, Prentice

Websites:
www.bajajallianz.com www.scribd.com www.irdaindia.org www.google.com