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 INTRODUCTION
 METHOD AND STRATEGY
 PRICING STRATEGY
 PROMOTION AND DISTRIBUTION
PROMOTION
DISTRIBUTION
 PEOPLE STRATEGY
 PRODUCT STRATEGY
 INTRODUCTION
 Bajaj electrical Ltd entered the fan business as a
distributor for a small company called Matchwel
Electrical pvt Ltd, located in Pune in 1950.
 Bajaj electrical Ltd acquired stakes of Matchwel
pvt Ltd .And finally merged with this company in
the 1984.
 Bajaj fans had the lowest share in the organized
sector with a market share of only 7.6 per cent
and a market share of only 3.6 per cent of the
total market.
 Bajaj was also present mainly in the premium ceiling fans segment; that
meant that it was targeting only 14 per cent of the total Organised Sector
market for fans of which Bajaj had a 20 per cent market share and was
considered as a strong player.
 The brand͛s advertising Share of Spend was only 12 per cent of the total
category spends on advertising. The brand was not in the consideration
set of many consumers as word of mouth franchise was weak.
 The channel used by Bajaj to market the fans was an Indirect Distribution
Model.
1)Company
2)Distributor
3)Retailer
4)Consumer

 Bajaj also has a very strong all India logistics with a round 20 Branches and
a strong after sales service infrastructure with around 200 Service
Franchisees .
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 Increase the width of the product line and launch new

categories / products. Move towards a Direct distribution
system. Benchmark the market leaders network reach and
expand the retail network aggressively
 Price the products competitively with a higher deliverable
value. Create a unique positioning by capitalising on a core
category benefit, hitherto not appropriated by any other
competitor.
 Use the power of the large organisational infrastructure, good
brand equity and resources to take on major players head on
and invest to grow the business
 METHOD AND STRATEGY
 PRICING STRATEGY
 DISTRIBUTION STRATEGY
 PROMOTION STRATEGY
 PRODUCT STRATEGY
 PEOPLE STRATEGY
 PACKAGING STRATEGY
 PRICING STRATEGY
 The company follows a competitive pricing
strategy in all major markets for all product
segments.
 The strategy to enter the lower price
segments was executed through launch of
differentiated models aimed at the lower price
segments.
 Earlier all Economy and Premium ceiling fans were
sold at around Rs.1000 and Rs.1200 respectively to
the customer. Sub-Economy ceiling fans were
introduced at a customer price of less than Rs.900.
Today the sub economy segment is being actively
looked at by most major competitors.
 The pricing innovation aimed at the Bottom of the
Pyramid mass market has been a key element of the
Bajaj Fans success story.
 PROMOTION AND DISTRIBUTION
 Television played major role in promotion.
TVC͛s of 10, 20 & 30 secs were developed
based on a positioning ͞Bajaj Fans Sabse Tez͟
in Hindi and
 various regional languages such as Tamil,
Kannada, Telegu, Malayalam & Bengali.
 Introduced new marketing strategies like
exchange offers and joint promotion schemes.
 Increased brand visibility at the market place
 Branded T-shirt and caps were exposed by
promoters in market place.
 Distributed leaflets of Bajaj fans to the potential
customers.
 They carried placards with the core
communication message of Bajaj fans ͞Subse
Tez͟.
 Attractive POPs, Display schemes and Mystery
Customer Contests were also run for the dealers
for better display of products and packaging on
the retail shelves by the retailers and for a
Channel Push.
 PLACE

 Reach of potential through ͞Mission Excel Initiative",

it explore a larger part of the defined market
potential by being present in larger retailers counters
in a stronger manner.
 It leads to an improvement in both the width and
depth of Distribution
 An action plan was developed and executed to
ensure that Bajaj brand gains an entry in the selected
retail outlets where the benchmarked competitor
was present, so as to achieve the targeted RPS.
 This distribution strategy enabled the
company to:
 Sustain growth in the economy and premium range
of fans.

 Successfully establish a new network, which was

hitherto unavailable to it, comprising of dealers who
were primarily dealing with unorganized sector fans.

 Ensure healthy Trade margins.

 Increasing Shop Share-
In the consumer durable market the consumer
depends on the dealer͛s recommendation for a
brand. Hence it was important to ensure that key
dealers were encouraged to recommend Bajaj
Fans to the customer. For this the Company
ensured that:

 Attractive margins were given to dealers

 An attractive and comprehensive range of

products was offered

 Efforts at gaining Dealer loyalty were undertaken


    

 Bajaj decided to reduce the additional layers of

distributors wherever feasible, which was increasing
the distribution costs for the company over that of the
competitors.
 It supplied fans directly to major fans retailers and
whole sellers.
 It allowed adequate width of distribution as per the
market forces.
1) Company
2) Retailer
3) Consumer
    
Dealer and Sub Dealer meets were organised
to gain their confidence share with them the
company͛s strategies and future plans and
obtains their feedback on how to collectively
grow in volumes and profits
 PEOPLE STRATEGY
 The Organization Structure was revamped and the
company moved from a complex matrix structure to a
SBU based organization with shared services.
 Appropriate structures were formed for Sales,
Marketing and Supply Chain functions along with a
revamping of the Manufacturing and Design &
development teams.
 A new set of Job Descriptions and Key performance
Indicators (KPIs) were implemented along with a
substantial improvement in various processes such as
Planning, Supply Chain, information management,
review processes etc.
 PRODUCT STRATEGY

 
 Launch high quality decorative fans with better
designs in the premium segment.
 Launch high quality decorative and non-
decorative but contemporary fans in the
Economy Segment corresponding to the
consumer needs of this segment.
 Launch basic products without any frills to meet
the needs of sub-economy segment aimed at
providing an up-gradation platform to the
customer from the unorganized sector.
 A number of poor performers were weeded out
and replaced with good talent from the Fans
industry.
 A new Performance Incentive Scheme and a new
Performance Appraisal process were also
implemented to ensure good talent
management.
 Deserving people were promoted from within
and better career rewards and punishments were
implemented.
 IIO

     !  ! !

 Bahar as a low-price Sub economy Fan in Ceiling, Table
& Exhaust Fans
 Maxima as a medium price Sub Economy Fan in Ceiling
and Exhaust
 Grace as an Economy Ceiling Fan.
 Crown as a Premium Ceiling Fan and TPW fans
 Bajaj Midea as a Premium TPW Fans in a tie up with GD
Midea Holding Co.- A unique Co-Branding exercise with
the worlds largest fan manufacturing company based in
China.
 u"#
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   &

 Company͛s overall distribution network increased from
approximately 6000 retailers in 1999-00 to approximately
10000 retailers in 2002-03. The direct dealer network has
been increasing every year at a healthy rate.
 | !u  
 Highest Increase in TOMA & UAA scores in the Organised
Sector.
 TOMA for Bajaj Fans jumped from 7th position to joint 4th
position.
 UAA for Bajaj Fans jumped from 7th position to 4th position
 CONCLUSION
 The Fans BU has been a trail blazer within the
company in terms of energinising and
electrifying Team Bajaj Electricals with it͛s
sterling performance and substantial
achievements.