Rural Marketing Opportunities in India is explained in the slide. Rural Strategy of Bajaj with the Case study of Boxer 150 in included

1. Presented By
1
RURAL MARKETING STRATEGY
OF BAJAJ

2. DEFINING RURAL INDIA
RURAL RETAIL SCENARIO IN INDIA
BAJAJ RURAL STRATEGIES
CASE STUDY OF BOXER 150
VIDEO DEMO

July 6, 2013
2
CONTENTS

3. Census of India defines Rural Settlements as
• Population lower than 5,000 persons
• Population density lower than 400 persons/sq. km
• At least 75% of male population engaged in Agri.
activities.
July 6, 2013
3

4. RURAL SCENARIO
RETAIL TOWARDS RURAL AREAS
GREAT OPPORTUNITIES FOR MARKETER
THE INDIAN RURAL MARKET
July 6, 2013
4

5. RETAIL TOWARDS RURAL AREAS
• Rural India consists of 720 Million consumers across
6,38,000 villages
• 17% of these villages account for 50% of the rural
population and 60% of the rural wealth
• Extensive reach is required as to cover 50% market
1,00,000 villages must be catered Immense opportunity
amounting to US$ 125 billion
5

6. Triggering Rural economy
Creates Purchasing Power by focusing on increasing
Income Levels
July 6, 2013
6

7. THE INDIAN RURAL MARKET
The Rs.140,000 Crore rural retail market is expected to cross
Rs.180,000 Crore mark by 2012, And up to Rs.240,000 Cr by
2015 (CII).
The rural revolution is driven by
Rising purchasing power
Changing consumption patterns
Increased access to information and communication
technology
Improving infrastructure
Increased government initiatives to boost the rural economy
July 6, 2013

8. RURAL OCCUPATION STATISTICS
July 6, 2013
8
OCCUPATIONS URBAN RURAL
Cultivator 5 40
Petty
Shopkeeper
15 5
Wage
earner
20 35
Salary
earner
40 20
Others 18 8

9. THE RURAL CONSUMER
Is a value seeker
Seeks comforts and amenities
 Does not wish to be seen as the
deprived cousin.
 Does not experiment easily but
this does not mean that “he would not change”.
Values local relationships because
of unfavorable past experiences
July 6, 2013
9

10. Rural Business Challenges
o Increasing costs of land
o Pace of expansion
o High operating costs
o Low purchasing power of consumers
• Lack of literacy and awareness
• Low per capita income
• Wide geographic spread.
• Gaps in road and Telecommunications connectivity.
• Lack of reliable electricity and water supply
• Limited Distribution network for example cold storage.
• Competition from local players
July 6, 2013
10

11. Bajaj Group
• Bajaj Group (pronounced is an Indian conglomerate
founded by Jamnalal Bajaj in 1926, Mumbai.
• Bajaj Group is one of the oldest & largest conglomerates
based in Mumbai, Maharashtra.
• The group comprises 34 companies & its flagship
company Bajaj Auto is ranked as the world's fourth largest
two- and three-wheeler manufacturer.
July 6, 2013
11

12. BAJAJ AUTO
Bajaj Auto has the major competitor as Hero Honda in rural
and semi-urban markets which accounts for more than half
of two-wheelers sold in the country.
Bajaj Auto is based in Pune, Mumbai, with plants in Chakan
(Pune), Waluj (near Aurangabad) and Pantnagar in
Uttarakhand. The oldest plant at Akurdi (Pune) now houses
the R&D centre Ahead.
July 6, 2013
12

13. BAJAJ AUTO
Bajaj Auto makes and exports automobiles, scooters,
motorcycles and auto rickshaws.
Bajaj Auto is the world's third-largest manufacturer of
motorcycles and the second-largest in India.
The Forbes Global 2000 list for the year 2005 ranked Bajaj
Auto at 1,946.
It features at 1639 in Forbes 2011 list.
July 6, 2013
13

14. BAJAJ AUTO MARKET
Bajaj Auto has about 27% of
the two wheelers market
share
The motorcycle segment
constitutes about 81.5% of the
two wheeler market in India.
It also contributes to three-
fourths of the total exports in
the two wheeler industry.
Bajaj is the second largest
player in this segment after
Hero Honda.
July 6, 2013
14

15. BAJAJ RURAL APPROACH
The country's second largest two-wheeler maker has
appointed 135 dealers in small towns and mini metros,
where it had only 25 dealers, and will offer special finance
scheme for rural customers even if they have no bank
account.
Bajaj Auto is going at full throttle to challenge market leader
Hero Honda in rural and semi-urban markets that account
for more than half of two-wheelers sold in the country.
July 6, 2013
15

16. BAJAJ RESEARCH STUDY
Company has been conducting a lot of market research in
Rural Sectors and found that the rural customers are
seeking for bikes with wider tyres that gives more road grip,
which essentially requires higher engine power
July 6, 2013
16

17. BAJAJ BOXER INTRODUCED
New Product Introduction
For Rural Segment
The company added another model, Boxer 150 cc which is
dubbed as 'Tank on Two Wheels' by August this year
targeting the rural market.
Bajaj discontinued the boxer 100cc and 125cc variety since
the rural market has been experiencing the change as
reflected in the pattern of sales
July 6, 2013
17

18. EASY LOAN FACILITY FOR RURAL AREAS
Bajaj introduced easy loan facility for the natives of Hingoli
village in Maharashtra
Scheme Details
• Offered a special financing scheme backed by Bajaj Auto
Finance with a direct cash collection facility. That is,
customers need not provide post-dated cheques to avail
of finance ; they can pay the installments in cash.
• The loans will be given on the basis of trust and initial
verification and there will be no collateral . The company
has already tried this out in select areas and, found
default rate is much less than in the post-dated cheque
system.
July 6, 2013
18

19. • Bajaj Auto introduced seasonal collection strategy for rural
areas. This would mean that instead of monthly
installments , rural customers can time their loan
repayment to crop cycle, which is 2-3 months for rice and
wheat.
• RESULTS
• Bajaj Auto was able to improve its market share to more
than 30% with the rural push, compared to the 27% share
July 6, 2013
19
EASY LOAN FACILITY FOR RURAL AREAS

20. Video Ad
 This Ad focuses on the Rural Segment
 It aspires a common farmer to purchase the bike
 The Bajaj sales advisor introduces him, with the easy finance option and the
Farmer agrees to go for the purchase
 The Joyful moments is shared in the video
July 6, 2013
20

21. July 6, 2013
21