The world-renowned & trusted company, Bajaj Electricals Limited (BEL) with a presence in more than 20 countries globally is a part of the “Bajaj Group”. The company’s business is spread across – Luminaires, Exports, Consumer Products (Appliances, Fans, Lighting) and EPC (Illumination, Transmission Towers, and Power Distribution).
Apart from the low-end segment products the company has a presence in the Hi-End range of appliances also under the brand name of Platini and Morphy Richards.
Segmentation, targeting, positioning in the Marketing strategy of Bajaj Electricals –
Since the company is operating in a large number of products categories so clearly defining the population characteristics will help Company to align its strategy for customer acquisition. Bajaj Electricals uses a mix of demographic and psychographic segmentation strategies.
In order to serve the customers with its offerings meant for the particular segment, it uses differentiated targeting strategy.
It has positioned itself as a company offering all sorts of white goods, consumer durables products under one brand and at the same time connect with youth, since India has 65% of the population under the age of 35 years.
Marketing mix – Here is the Marketing mix of Bajaj.
Mission- “Not Available”
Vision- “To be the leader in the industry and a consumer’s original choice”
Competitive advantage of the Marketing strategy of Bajaj Electricals –
Renowned Brand- The Company comes under umbrella brand structure of Bajaj Group, a conglomerate with more than 75 years of existence and which have a presence in diverse businesses such as Automobile, insurance, financial services and ancillary businesses. Bajaj Electrical is one of the 25 companies that Bajaj Group operates into with more than 36000 employees.
Broad product portfolio: Having a presence in large product categories is helping the company is offering a bouquet of products & services to the customers thereby optimising the customer acquisition cost and increasing the product linkages with customers.
BCG Matrix in the Marketing strategy of Bajaj Electricals –
In order to offer a full range of products and related services to customers, the company has been offering products under Strategic Business units (SBU’s) such as Engineering Procurement & construction (EPC), Luminaries, Exports and Consumer Goods.
Further, EPC deals in Power transmission, Power distribution, and Illumination; Luminaries deals in businesses such as LED, Integrated building management system; Exports business deals in B2B and B2c segments while consumer goods business deals in kitchen & home appliances.
All the business segments/ SBU’s in which Bajaj Electricals operate into are Stars in the BCG matrix.
Distribution strategy in the Marketing strategy of Bajaj Electricals –
The Company has been expanding its touch points through Range & Reach Expansion Programme (RREP) in new geographies across the country along with the Retailers Bonding Programme is helping the Company in expanding its topline products to new markets.
It distributes its products & services through a mix of channels depending on the business segment like for power distribution it uses government build network or self-developed distribution network, for other business like consumer goods, illumination and export-import business it uses channels of distributions like distributors, resellers, e-commerce sites, wholesalers and company own sales team.
The Company has increased its service centers to 418 in 298 cities in order to make it more convenient for the customers to resolve their issues in a speedy manner.
Brand equity in the Marketing strategy of Bajaj Electricals –
The company has bagged many award and accolades over the years in the field of IT technology, Advertising, Consumer care, Luminaries and power distribution such as Innovative CIO Award 2016 from Bitstream India and many others. Also, the company has been part of various sponsorships programs such as Pro-Kabaddi league, Pro-badminton league, Wimbledon Championship-2016, Rio Olympics-2016 and even through partnerships like Kala Ghoda in February 2017 which is India’s largest Art & Cultural Festival.
The brand has been valued at Rs. 3171 crores as of March 2017 (market capitalization value method) generating revenue of Rs. 4334 crores.
Competitive analysis of the Marketing strategy of Bajaj Electricals –
Factors such as unsold inventory, pricing pressures, increasing bargaining power of the customers as well as suppliers, competition from the unorganized sector are some of the factors affecting the company’s performance.
It competes with companies across the business segments it operates into by maintaining high-quality standards and making its products & services available in the remotest areas of the market.
Some of the competitors of Bajaj Electricals are Havells, Crompton Greaves, Philips, 3M, Samsung and others electrical companies.
Market analysis of the Marketing strategy of Bajaj Electricals –
Young population of India supported by the digital push by the government along with penetration to the distant areas of the country, these are driving factors for the companies operating the electronics and power distribution business.
The Factor such as counterfeit Products, the short life cycle of technological products, labor cost, increasing pressure from the unorganized sector, and shrinking margin are some of the factors affecting companies operating in this market to which Bajaj Electricals is not an exception.
Customer analysis in the Marketing strategy of Bajaj Electricals –
The company has strong Customer relationship management system to understand the changing needs of the different customer groups.
The company serves the B2B customers such as government organizations, Corporate and other institutions while in the retail segment its caters customers in the age group of 20-45 years who are from middle-income group social class.
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