In a 21st century world, brands cannot afford to remain complacent as competitors have increased in their respective fields which has given more choice and variety to the consumers. Today, consumers are more aware about the quality of the products which they use. And brands try their level best to market their products to the target audiences through various marketing techniques like advertising, promotion etc. So in this cat-and-mouse game it becomes essential for a business to a categorise its products on the basis of their market share and BCG matrix could help them to solve this problem. Created by Boston Consulting Group, the BCG matrix provides a strategy for analysing products according to growth and relative market share. The BCG model has been used since 1968 to help companies gain insights on what products best help them capitalise on market share growth opportunities and give them a competitive advantage.
Bajaj Group
Founded by the freedom fighter, philanthropist and close confidante of Mahatma Gandhi, Jamnalal Bajaj. The Bajaj Group is one of the most respected and renowned business houses of India. It started as sugar factory in Lakhimpur Kheri of Uttar Pradesh and has since then become the most trusted brand in India. Over the years it formed Bajaj Auto, Bajaj electricals, Bajaj finserv and many other notable ventures. Bajaj Auto is the one the most leading two wheeler manufacturer in India
Cash Cow
These are those products which accounts for a major proportion in company’s revenue. Generally these products are the top contenders in the market which have a huge share in their respective categories. These products generally don’t require marketing because they have already established their consumer base in the market. But still brands spend a huge amount of money in their marketing to stay in the race. In addition to this, the industry in which cash cows are operating is at the mature stage. Bajaj Auto is the leading brand in the three-wheeler segment in India. It has a market share of up to 64%. Its three- wheeler variants include Maxima Z and Compact Re, which are widely used as autorickshaws in India. In FY 2019 it accounted 18.69% in two- wheeler industry. Platina 100 and CT 100 are some of the top contenders in the market, which have shown some promising results. These vehicles are fuel efficient which compels the people to buy, due to its affordable price.
Star
These are those products which are not giving the expected financial returns but have the potential to become cash cows if marketed properly. In fact, these are the variants which have the ability to capture a market. Usually these are seen as those products which are highly lucrative in their nature. Pulsar 150 and Discover 135 are such variants, which have done well in the market. ET reported that 1.2 crore units of Pulsars were sold in 18 years. In fact, it accounted for 9.8% of the two- wheelers in FY 2018.
Question Mark
These are those products which need some time to mature and find it difficult to capture the market. These are highly risky ventures which need some time to develop. However these products have the possibility to capture the market, if marketed properly. Bajaj Auto has gone through a phase where their two wheeler- variant ‘Blade’ did not do well in the market. It was promoted as an affordable and fuel-efficient scooter but lost in the race of heavyweights like Activa, Access.
Dogs
These are those products which don’t do well in the market and quickly become unprofitable. Some products fail to move beyond the breakeven phase, while others become a continued source of loss for the business entity. These products usually have a low market share and growth is estimated to very limited, mainly due the slow development in the industry. Bajaj Chetak and Bajaj Splash did not do well in the market despite their strong marketing campaign. The company was not able to sell the estimated numbers and later declared it as failed investment.
Product Market Grid
1 Market penetration –
Under this category the firm uses its products in the existing market. Bajaj launched its 150 cc Pulsar in 2001 and since then it became one of the most preferred bikes in India. Over its roots expanded to Pulsar 135, Pulsar180, Pulsar 200 ns, Pulsar 220. In its 18 year anniversary Baja sold 1.2 crore units of pulsars across the country.
2 Product Development
In a market development strategy a brand develops new product to cater to an existing market. Bajaj launched in its new two-wheeler vehicle Chetak in Nov 2019. It aims combat environmental problems by offering us exciting features. Its price starts at RS 1 lakh.
3 Market Development
In this category the firm enters a new market with its existing products. Baja began its operations in Indonesia after getting clearances from the government. It goes by the name PT. Bajaj Auto Indonesia
4 Diversification
Under this category the firm enters a new market with a new product. This step is considered to be one the riskiest as it involves a huge amount of capital and a bit of luck. Bajaj group in 2007 began its Financial services company popularly known as Bajaj Finserv and became of the most trusted and reputed brand in India. Apart from financial services, Bajaj Finserv is also active in wind–energy generation with an installed capacity of 65.2 MW. Bajaj Finserv was ranked among The Economic Times 500 as #119 in 2014.
Ronit john 