MANAGERIAL ECONOMICS ASSIGNMENT SYNOPSIS
(Assignment submission towards the fulfilment of the assessment in the subject of business
environment)
SUMBITTED TO: SUMBITTED BY:
DR. RUCHI BHANDARI DR. CHITRA Sravan B
SARUPARIA
ROLL No. 2226 SEMESTER: IV,
FACULTY OF MANAGEMENT SECTION: A
NATIONAL LAW UNIVERSITY,
B.B.A., LL. B (HONS.)
NATIONAL LAW UNIVERSITY, JODHPUR WINTER SESSION (JAUNARY – MAY
2025
INTRODUCTION
Bajaj Auto Limited, established in 1945 by Jamnalal Bajaj, stands as a prominent Indian
multinational automotive manufacturer, producing motorcycles, scooters, and auto
rickshaws. From its humble beginnings as a bicycle producer, Bajaj Auto has evolved into a
global conglomerate with a strong foothold in both domestic and international markets.
The company is headquartered in Pune, Maharashtra, with manufacturing facilities across
India. Bajaj Auto has become the largest exporter of two and three-wheelers in India. Bajaj
Auto has not only become synonymous with affordable and innovative products but also with
its focus on research and development. Over the years, the company has introduced new
models of motorcycles and three-wheelers and has also collaborated with global brands like
Kawasaki and KTM.
As "The World’s Favourite Indian," Bajaj Auto exports to over 70 countries, a testament to its
global reach and brand recognition. The story of Bajaj Auto is one of trials and triumphs as it
continually combats obsolescence through product and market innovation. The company's
success is rooted in its high-volume production capabilities, making it one of the lowest-cost
motorcycle producers globally.
While innovation through product engineering is vital, understanding consumer needs
through market engineering is equally indispensable. Integrating these two vital domains
establishes a viable fit between the benefits offered by innovation and consumer
requirements, leading to a faster rate of diffusion and solidifying Bajaj Auto's position as a
key player in the Indian automobile industry and a major contributor to the country's
economic development.
Research Questions
1. How do macroeconomic factors such as inflation, economic growth, and interest rates
influence consumer purchasing decisions regarding Bajaj bikes?
2. What microeconomic factors (e.g., price, disposable income, perceived value) most
significantly impact customer satisfaction and brand loyalty towards Bajaj?
3. How effective are Bajaj's current marketing strategies in capturing and retaining
different customer segments, considering varying economic conditions?
4. How does Bajaj balance cost-effective production with investments in innovative
features to meet customer expectations and maintain competitiveness?
5. What is the role of customer relationship management (CRM) in enhancing customer
satisfaction and fostering brand loyalty for Bajaj?
6. How does Bajaj's liquidity risk impact its ability to invest in product innovation and
market expansion?
7. What are the primary and secondary economic and managerial challenges Bajaj faces
in maintaining its competitive edge in the market?
Research Objectives
1. To determine the influence of macroeconomic factors, including inflation, economic
growth, and interest rates, on consumer purchasing decisions related to Bajaj bikes.
2. To evaluate the impact of microeconomic factors, such as price, disposable income,
and perceived value, on customer satisfaction and brand loyalty towards Bajaj.
3. To assess the effectiveness of Bajaj's current marketing strategies in capturing and
retaining different customer segments, considering varying economic conditions.
4. To analyze how Bajaj balances cost-effective production with investments in
innovative features to meet customer expectations and maintain competitiveness.
5. To investigate the role of customer relationship management (CRM) in enhancing
customer satisfaction and fostering brand loyalty for Bajaj.
6. To analyze how Bajaj's liquidity risk impacts its ability to invest in product innovation
and market expansion.
7. To identify the primary and secondary economic and managerial challenges Bajaj
faces in maintaining its competitive edge in the market.
Research Methodology
This research employs a mixed-methods approach, utilizing both descriptive and exploratory
research techniques to investigate factors influencing customer satisfaction and purchasing
decisions related to Bajaj Auto Limited. Primary data will be collected through structured
survey questionnaires administered to a target population of Bajaj bike owners and potential
customers, while secondary data will be gathered from company reports, industry
publications, already collected surveys and online databases. Quantitative data will be
analysed using statistical techniques to identify patterns and correlations, while qualitative
data will be analysed through content analysis to identify recurring themes. The combination
of primary and secondary data, along with quantitative and qualitative analysis, will provide a
comprehensive understanding of the research objectives.
Challenges/Limitations
The maximum amount of surveys that could be collected as primary data could have
its ceiling low since the identification of potential motorcycle buyers could be a
burdensome task.
Respondents may be biased. The data collected may not be completely predictable.
Customer preferences and opinions are expected to change from time to time, this
depends on the amount of information that is fed to the customers over time.
The study is majorly limited to India owing to the fact that the majority of potential
customers as far as Bajaj is concerned would be in India. However, considering the
collaborations they have taken up, the company could have further implications on
foreign markets as well.
Tentative Chapterisation
Chapter 1: Introduction
1.1 Introduction
1.2 Background of Bajaj Auto Limited: History, evolution, and global presence.
1.3 Overview of Bikes and Industry in general
1.4 Research Objectives
1.5 Research Questions
1.6 Scope of Study
Chapter 2: Economic and Managerial Framework
2.1 Economic Landscape of the Indian Motorcycle Market: Macroeconomic factors (GDP
growth, inflation, interest rates, disposable income) and their impact on motorcycle
demand. Microeconomic factors (pricing strategies, competition, consumer preferences,
perceived value).
2.2 Bajaj Auto's Strategic Position: Analysis of Bajaj's market share, product portfolio,
and competitive advantages. Cost leadership vs. differentiation strategies.
2.3 Customer Segmentation and Targeting: Review of Bajaj's existing customer segments,
their needs, and purchasing behaviors. Opportunities for new segment development.
Chapter 3: Product Innovation and Market Expansion
3.1 Innovation at Bajaj Auto: Historical overview of Bajaj's product innovation efforts.
Analysis of successful and unsuccessful product launches. Role of R&D, technology
adoption, and design.
3.2 Balancing Cost and Innovation: Strategies for cost-effective innovation. Value
engineering, modular design, and technology partnerships.
3.3 Market Expansion Strategies: Analysis of Bajaj's domestic and international
expansion strategies. Geographic targeting, distribution channels, and adaptation to local
markets.
Chapter 4: Customer Satisfaction and Brand Loyalty
4.1 Measuring Customer Satisfaction: Key metrics for measuring customer satisfaction
(e.g., Net Promoter Score, customer surveys, online reviews). Analysis of Bajaj's current
performance.
4.2 Drivers of Customer Loyalty: Factors influencing customer loyalty in the motorcycle
market (product quality, after-sales service, brand image, emotional connection).
4.3 Customer Relationship Management (CRM): Evaluation of Bajaj's CRM practices.
Effectiveness of customer service channels, loyalty programs, and personalization
strategies.
Chapter 5: Challenges and Opportunities
5.1 Economic Challenges: Impact of economic cycles, inflation, and currency fluctuations
on Bajaj's profitability.
5.2 Managerial Challenges: Competition, regulatory hurdles, supply chain disruptions,
talent management.
5.3 Opportunities for Growth: Emerging market segments (e.g., electric motorcycles,
premium bikes). Technological advancements (e.g., connected vehicles, autonomous
driving).
5.4 Strategic Recommendations: Recommendations for Bajaj to address the challenges
and capitalize on the opportunities.
References
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Nagpur University, Nagpur In partial fulfilment for the award of the degree of Master
of Business Administration Submitted by: Ms. Arti Ramrao Dhurve Under the
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Institution
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