1) Bajaj Electricals is a 79 year old Indian company with a turnover of Rs. 3099 Crores that produces fans, lighting, appliances, and engineering projects.
2) According to a BCG matrix analysis, Luminaries, Engineering, and Lighting are star products with high market share and growth, while Appliances are a question mark with high growth but low share.
3) Bajaj Electricals has 6 strategic business units, with B2C units including appliances and fans, and B2B units including luminaries and engineering projects. EPC is a leader in illumination projects while Luminaries provides residential to commercial lighting solutions.
4. ⢠Where we are â current situation
⢠Where we want to go - Objective
⢠How do we reach there - Strategy
⢠Did we reach there - Control and analysis
5. Corporate vision of Bajaj Electricals
âWe aim to bring greater happiness to
our customer by improving their
quality of life, while enhancing
stakeholder value.â
6. About
⢠Part of the Rs. 28000 crores âBajaj groupâ
⢠BEL is a 79 year old trusted company with a turnover of Rs.
3099 Crores and market capitalization of around Rs. 2000
crores.
⢠BEL was incorporated on 14 July 1938 as Radio Lamp Works
Limited under the Indian Companies Act, 1913 as a Public
company limited.
⢠BEL has 19 branch offices spread in different parts of the
country with a chain of about 1000 distributors, 4000
authorised dealers, over 400,000 retail outlets and over
282 Customer Care centres.
8. Corporate vision of Bajaj Electricals
â Enhancing quality of life and bringing
happiness with sustainabilityâ.
9. MISSION
ďąIntegrity: Having complete integrity alignment in what we feel, what
we speak and what we do, thereby demonstrating honesty and
having strong moral principles. Having firm belief in the reliability,
truth and ability of all stakeholders and company processes.
ďąTeam work: Believing in âOne for all and all for Oneâ thereby working
together to exceed our expectations in achieving organisational
objectives.
ďąEmpowerment: Creating conditions and enabling people to take
responsibility for enhanced contribution towards personal and
organisational objectives.
ďąCustomer Delight: Proactively anticipating internal and external
customer needs and relentlessly working towards exceeding their
expectations.
ďąInnovation: To continuously explore, develop, create and implement
new technology, processes, ideas and products
10. SWOT
STRENGTH
â Decades of experience in design, development and
manufacturing
â Strong financial performance
â Diversified into many segments and tapping sophisticated
markets
â High liquidity has enabled it to invest in new technologies
and have grown in many segments
â Market leadership and price competitiveness
â Has a strong workforce and good brand presence due to TVCs
and print ads
WEAKNESS
â The brand has less penetration across international market
â Market share is limited due to intense competition
â Company has changed itâs logo, People are not aware of new
one.
11. Cont.
OPPORTUNITY
â Expansion through Strategic Alliances
â Growth in its product line could increase demand
â Population growth and urbanization is increasing the demand
â Emphasis on in-house R&D for Technology Development
â Focus on Technology Intensive Products
â It is less into exports so it can start exporting
THREATS
â Maturing categories, products, or services
â New competitors with new model and new design .
â Cheaper technology
â Price wars
13. BCG MATRIX
ďą According to us, out of all the 5 SBUâs of Bajaj Electricals-
Luminaries , Engineering ,Project and Lighting are the stars of the
company as they high market share and market growth.
ďą Appliances are question mark as the company it has high growth
rate but low market share, due to which it is planning to tie-up
with other international brands.
ďą Fans are also question mark, as it has low market share its position
is 6th in the market.
14. STP Analysis
ďSegment
Electric Appliances, Fans and Lighting, consumer durables,
engineering and project and it is affordable by every one.
ď Target Group
Telecom Companies, defense and aviation Entities, Construction
companies, Telecommunication companies, Public utilities. It is
targeted at middle sector.
ď Positioning
A learning electrical company producing quality products with
great trust. It is an premium product with an unique design.
15. Sales of the BAJAJ Appliances
FY16 Sales: INR 4,640 mn
As a % of total sales: 26%
FY16 Sales: INR 5,230 mn
as a % of total sales: 30%
FY16 Sales: INR 2,950 mn
As a % of total sales: 16%
FY16Sales: INR 2,820 mn
As a % of total sales: 16%
FY16 Sales: INR2,090mn
As a % of total sales:12%
17. Bajaj Electricals â Broad overview
ďś Bajaj Electricals has 6 â Strategic Business units.
ďś (Bajaj Appliances, Bajaj Lighting, Morphy Richards and Bajaj Fans)
would come under B2C (Business to Consumer)
ďś (Bajaj Luminaries and Bajaj E&P) would come under B2B (Business to
Business)
18. ďś EPC (electronic and project business unit)
is the undisputed leader in turn key
illumination projects and high mast
lighting system, including design supply
installation tasting and commission
ďś It has vast experience in power distribution
and transmission line segment
ďś Every big project comes under EPC,
Bombay-Worli sea link is one of the biggest
example.
ďś Major competitors in EPC:
â L&T
â Crompton
â Orient
EPC
19. Luminaries
ď Residential to commercial
ď Retail and industrial Bajaj luminaries expertise in light
fixtures
ď LED lighting system
ď Wall lighting accessories etc.
ď Examples:
ď§ High Mast
ď§ Street Lights
ď Major Players
ď§ Philips
ď§ Osram
ď§ Havells etc.
20. Consumer Product Division
In CP division Bajaj have products like Fans, Lights,
kap & Dap.
TPW (table, pedestal and wall) Price Range
1. Sub-Economy 1000 - 1500
2. Economy 1500-2000
3. Premium above 2000
4. Exhaust Fans 1000-1500
5. Ceiling Fans 1200-3000
TYPES OF FANS
29. Promotion
⢠Bajaj Electricals campaign of 2016, in this they have
highlighted the companies marketing pitch
âBajaj Fans-Sabse Tezâ
&
Bajaj Coolers âEk dum solid Thandaâ
⢠To keep its growth curve intact Bajaj follows a
âMera gaon, Mera Deshâ
⢠In Pro- Kabaddi World championship world matches
Bajaj has done the branding of its lighting.
30. Analysis
⢠Price of Pedestal fans should be reduced for
increasing sales (Finolex)
⢠Promotions should be increased- Brand
ambassador should be there (orient)
⢠Sales territory should be maximized to cover
more places
⢠They should be constant on their TOC but not
TOD strategy.
⢠They should more focus on their kitchen
appliances. (Prestige and Hawkins)
31. Cont..
⢠More marketing of glass lined tanks (United
industrial group)
⢠Focus more on Urban Area as market share of
Usha is maximum in room heaters
⢠Bajaj reducing there market in cooler
segment because of âSymphonyâ coming up
with new and better products
⢠More promotional activities on Pumps should
be there (Crompton)
32. SuggestionsâŚ
ďź The company must focus more on the promotional
activities, as per the research done we can conclude
that it is lacking in this segment of promotion of its
products
ďź The company must cover all the areas and assign
different territories to the sales people so that larger
area is covered, not only focusing on a particular
area for sales.