Presentation On Life Cycle of Bajaj Chetak
Presented by The Centuars
GROUP MEMBERS Chetna Mandhare Kamal Sarkar Debita Das
Overview
INTRODUCTION OF CHETAK FEATURES PRODUCT LIFE CYCLE OF BAJAJ CHETAK INTRODUCTION STAGE GROWTH STAGE MATURITY STAGE DECLINE STAGE WITHDRAWAL STAGE REASONS FOR FAILURE REFERENCES
BAJAJ CHETAK
The Chetak, BAL's first scooter model under the Bajaj brand, was introduced in 1972. It was named after the horse of famous Indian warrior King Rana Pratap. The Chetak, a geared scooter, had reigned over the Indian two-wheeler market in the late 1970s to early 1990s. Starting Price Quoted in the start was roughly between Rs. 8000-9000/-. This
Bajaj creation was specifically designed keeping the road condition of India in mind.
BAJAJ CHETAK
Hamara BAJAJ
FEATURES
PRODUCT LIFE CYCLE OF BAJAJ CHETAK
INTRODUCTION STAGE :-1972 to late 70s GROWTH STAGE :- late 70s to early 90s MATURITY STAGE :-1990 onwards DECLINE STAGE :-1995 onwards WITHDRAWAL STAGE :- 2009
I. Introduction stage
The companys First Scooter model, CHETAK, was launched in 1972. Starting price quoted in the beginning was roughly 8000/- to 9000/-. The Launch of Bajaj Chetak was mainly targeted at economical Class. This Bajaj creation was specifically designed keeping the road condition of India in mind. Late 70s had been the Golden period for the Bajaj scooters,especially the Chetak
II. Growth Stage
In 1977 Bajaj Auto claimed to have sold a lakh of Chetaks in just one FY. There was a time when people had to wait hell lot of a time after prebooking their Chetak. Over 2 decades the company did not face any stiff competition from any 2 wheeler market segment. Bajaj Chetak had targeted the soft spot of what most Indian people in that time desired. Some of the competition were from the scooter segments LML Vespa Scooters, Automobile Products of India's Lambretta.
II. Growth Stage
III. Maturity stage
In the late 1990s, the Indian two-wheeler market witnessed a shift in consumer preferences. The popularity of geared scooters began to wane while that of motorcycles soared. There were various reasons for the shift -India was undergoing a demographic change. While these changes were taking place in the market, the features of scooters, especially those of the Bajaj Chetak, remained essentially unchanged. many newer models of motorcycles, with improved designs and modern technology had become available in the market.
Iv. Decline stage
The primary reason is that the Brand forgot the customers. The company failed to understand the changing perception of the customers towards scooters. Bajaj never did anything with the product. For 40 years Chetak had the same look, same quality and style. During the mid nineties the company realised lately that the segment has shifted to motorcycles. Scooters were no longer the option.
v. withdrawal stage
Bajaj stopped production of its bestselling brands like Chetak 2006 amid plummeting sales. In the face of rising competition from bikes and cars, the Chetak lost ground in India, and production was discontinued in 2009.
PLC GRAPH
Reasons for failure
Even after the opening up of economy, the scooter segment did not witness much competition. The players like Vespa did not had much of success in this segment. Kinetic Honda managed to carve a niche with its gearless scooters. Another segment which was growing was the scooterette segment which was dominated by TVS scooty. There was nothing wrong with the Promotion. There was nothing wrong with distribution and the pricing was very reasonable. The major problem
Reasons for failure
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 the side for starting " was a common joke. Bajaj never was serious about product development. The combustion efficiency of the scooter needed to be improved and efficiency in terms of mileage needed a major boost. Bajaj Chetak should come out with various schemes & incentives.
"Like Volkswagen Beetle, the product (Bajaj Chetak) had lost its relevance." Rajiv Bajaj, MD, Bajaj Auto Ltd., in January 2006. "We believe it is not good enough to be better, it is important to be distinct. Rajiv Bajaj, Managing Director, BAL.
