Survey on Two-Wheeler Market in Bangladesh(2004)
Executive Summary In recent year rural road communications mainly connecting roads from Thana to important Hat, Bazar and villages have been increased significantly. Consequently agriculture, agriculture related business and other economical activities have been increased and sideby-side mobilization of people also increased. As an easy and affordable transport, Twowheeler becomes a very popular vehicle in rural and semi urban area in our country. Objective of the study The main objective of the study is included: (i) (ii) (iii) (iv)
An analysis of the present situation of two-wheeler market in Bangladesh, An analysis of sales trend of two-wheeler and estimation of their future demand. An analysis to find the proper marketing and sales tools to marketing the products. An analysis to measure the potentiality of Bajaj products.
Market size and growth rate of Two- Wheeler: Two-Wheeler market in Bangladesh is very optimistic and demand is increasing rapidly. At the moment market size of Two-Wheeler is about 35,000 units per year. In l2002-03 financial year growth rate was 44%. Growth rate mainly depends on socio economic environment and Government policy of our country. Average growth rate of TwoWheeler market in last six years was Existing brand in Bangladesh market: At present following makes and models of Two- Wheelers are available in Bangladesh market-
Brand/ Make Bajaj Honda Hero Honda Honda Pak Xinfu Jialing Yamaha Suzuki Zongshen Dayang Qjiang
Country of Origin India Japan India Pakistan China China India/ Japan India China China China
Position of Uttara Motors Ltd in Two- Wheeler market:
Uttara Motors Ltd., sole distributor of Bajaj Auto has achieved highest market share in financial year 2001-02 for the first time, and it was only 19% of total market size. Achieving 19 % Share Company had to face tuff competition. About number of 12 automobile companies are involved with Tow- Wheeler marketing and they are offering attractive package of price and features to their potential customers. The main competitors of Bajaj are Hero Honda, Yamaha, Honda Pak, Dayang etc. and their market share is very closed to Bajaj. Beside these several number of Chinese brands are available in Two- Wheeler market and are achieved a remarkable market share. As a highest market share holder all of we have try to grip the share first position and try to increase it to 25 % of total market. We can achieve the expected market share by taking special marketing activities and offering special price, features, benefits to the potential customers. Because of important profit earning source, we have to emphasis on Two- Wheeler marketing with full concentration. It is little bit difficult to us to achieve the expected target
alone. We believe Bajaj will actively participate with us and give all possible financial and technical support from their side to successfully complete our mission Market size of Two- Wheeler in last six years: Financial Year 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03
Market Size (Units) 14,316 19,784 19,224 22,506 22,622 32,573 43,000
Market Share of UML 2528 1168 806 2429 2920 5945 7805
Growth Rate of Two- Wheeler Market in last 5 years: Financial Year 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03
Growth Rate of Market 38 % -3% 17 % .5 % 44 % 32%
Growth Rate of UML -54% -31% 300% 20% 210% 31%
Growth rate calculated based on previous year. Base year is 1996-97.
Two-Wheeler sales trend of Uttara Motors Ltd. in last four years: Financial Year 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04
Unit 806 2429 2920 5945 7805 10,000
Amount in lac 813 1569 1990 3714 4922
Two- Wheeler Marketing Company in Bangladesh: Marketing Company Uttara Motors Ltd. Atlas Bangladesh Ltd. H.S. Enterprise Ltd.
Make and Model Bajaj Honda Pak/ Honda (In/Ja)
Market Share 7805 12442 3733
% 18.15% 28.89% 8.7%%
Rupsha Trading Karnaphuli Bangladesh Auto Manu. Co. Emma Motors Rian Motors Runner Singer Bangladesh Ltd. Road Master
Zongshen Yamaha Jialing/ Qjiang Jialing/ Xingfu TVS/ Suzuki Dayang/ LML Singer Challenger/ Kinetic Boss
2490 1605 460 1025 2320 9720 1602 879
Market share of different brands of Two- Wheeler market in 2002-03 SL No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.
Brand / Make& Model Bajaj Hero Honda Honda Pak Honda (Japan) Xingfu Jialing Jincheng Jianshe Singer Emma Yamaha Yamaha (Japan) LML Qjiang S. Suzuki Suzuki Zongshen Quinky Dayang Nitol
Units 7805 7017 2700 2725 465 3435 250
Percentage
Market share of different brands of Two- Wheeler market in 2001-02: SL No. 1. 2. 3. 4. 5. 6. 7.
Brand / Make& Model Bajaj Hero Honda Honda Pak Honda (Japan) Xingfu Jialing Jincheng
Units 6127 4987 2900 1550 405 1575 245
Percentage 19 15.3 8.9 4.76 1.23 4.83 .75
8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.
Jianshe Singer Emma Yamaha Yamaha (Japan) LML Qjiang S. Suzuki Suzuki Zongshen Quinky Dayang Nitol
450 744 285 3835 1200 300 510 900 150 1750 280 4140 240
1.38 2.28 .87 11.77 3.68 .92 1.56 2.76 .46 5.37 .86 12.71 .72
Market share of different brands in Two- Wheeler market in 2000-2001: SL No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.
Brand / Make& Model Baja Hero Honda Honda Pak Honda (Japan) Xingfu Jialing Jincheng Jianshe Emma Yamaha Yamaha (Japan) LML S. Suzuki Suzuki (Japan) Zongshen Dayang Others
Units 2920 2176 2000 1100 1625 3049 1000 445 20 3241 1000 150 600 430 1200 1521 175
Percentage 13 9.61 9 4.86 7.17 13.46 4.41 1.96 .09 14.31 4.41 .66 2.65 1.90 5.3 6.71 .77
Market share of different brands in Two- Wheeler market in 1999-2000: SL No. 1. 2.
Brand/ Make& Model Baja Zongshen
Units
Percentage
2305 1340
11 6.4
3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.
Jianshe Xingfu Honda Pak Jialing Jincheng Yamaha Hero Honda Samurai Suzuki Yamaha (Japan) LML Dayang
300 899 3212 2260 600 4700 2084 490 1150 450 1220
1.42 4.28 15.29 10.75 2.85 22.37 10 2.33 5.47 2.14 5.8
Market share of different brands in Two- Wheeler market in 1998-1999: SL No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.
Brand/ Make& Model Bajaj Zongshen Jianshe Xingfu Honda Pak Jialing Jincheng Yamaha Hero Honda Samurai Suzuki Yamaha (Japan) Dayang LML
Units
Percentage
806 840 150 1320 3800 1124 1300 2700 2032 360 900 1110 450
4.77 4.97 .89 7.81 22.49 6.65 7.69 16 12.03 2.13 6.57 5.33 2.66
Sales trend of main competitors in Two Wheeler market in Bangladesh: Brand Bajaj Hero Honda Honda Pak Jialing Yamaha Zongshen Dayang Honda (Japan) Yamaha (Japan)
98-99 806 2032 3800 1124 2700 840 1110 900
% 5 12 22 6.6 16 5 6.5 5.3
99-00 2305 2084 3212 2260 4700 1340 1220 1150
% 11 10 15 11 22 6.4 6 5.5
00-01 2920 2176 2000 3049 3241 1200 1521 1100 1000
% 13 9.6 9 13 14 5.3 6.7 5 4.4
01-02 6127 4987 2900 1575 3835 1750 4140 1550 1200
% 19 15 9 5 12 5.4 13 5 3.7
02-03
%
S. Suzuki
360
2
490
2.3
600
2.6
900
2.8
Present price of different brands & models of Two- Wheeler: Marketer Uttara Motors Limited ‘’ ‘’ ‘’ ‘’ ‘’ ‘’ ‘’ ‘’ ‘’ ‘’ ‘’ ‘’
Brand Bajaj ‘’ ‘’ ‘’ ‘’ ‘’ ‘’ ‘’ ‘’ ‘’ ‘’ ‘’ ‘’
Model Croma Caliber Champion Aspire Boxer CT Boxer AT KB-125 M-80 Legend Classic SL (ES) Classic SL Chetak Super
CC 112 112 100 112 100 100 125 80 150 150 150 150 125
Price 77,500 73,500 71,500 69,500 61,500 57,500 60,000 41,500 69,500 64,500 60,500 54,500 42,500
Atlas Bangladesh Ltd. ‘’ ‘’ ‘’ ‘’ ‘’ ‘’
Honda ‘’ ‘’ ‘’ ‘’ ‘’ ‘’
Passion Hero 100ss Hero Sple. CG 125 Honda XL CD 80P C-50 SWR
100 100 100 125 185 80 50
76,500 70,000 74,000 1,32,000 1,56,000 1,05,000 80,000
H.S. Enterprise ‘’ ‘’ ‘’ ‘’
Jialing ‘’ ‘’ Jincheng Xinfu
JH 100 JH125L JH 80 AX 100 XF125 A2
100 125 80 100 125
64,000 70,000 48,000 64,000 73,000
Marketer Karnaphuli ‘’ ‘’ ‘’
Brand Yamaha ‘’ ‘’ ‘’
Model RX100 RX S 115 YB 100 YBX 125
CC 100 115 100 125
Price 75,000 1,37,000 1,05,000 82,000
Emma Motors ‘’ ‘’
Jialing ‘’ ‘’
HS 100 HS 125 HS 80
100 125 80
57,500 70,000 53,000
B/Desh Auto Manu. ‘’ ‘’ ‘’
Qjiang ‘’ ‘’ ‘’
QJ 100 4S JQ 100 2S QJ 125 A QJ 100 U
100 100 125 100
62,000 64,000 70,000 85,000
Rupsha Trading ‘’ ‘’
Zongshen ‘’ ‘’
ED 80 EG 125 2S 50
80 125 50
53,000 70,000 43,500
Runner ‘’ ‘’ ‘’ Rian Motors
Dayang ‘’ ‘’
DY 125-7 DY 100-18 AD 80
Suzuki
Samurai
125 00 80 50 100
70,000 65,000 53.000 43,000 76,900
Market potentiality of Bajaj motorcycle in Bangladesh market: Market Dhaka Chittagong Rajshahi Khulna Sylhet Bogra Jessore Rangpur Dinajpur Others
Estimated Market Average Sales Size Bajaj (Per Month) (Per Month) 500 100 200 16 400 83 250 60 200 12 250 65 400 90 200 35 225 35 100 15
of Sales Potentiality (Per Month) 100 40 85 70 40 70 90 40 40 35
Recommendations:
UML has achieved a significant market share in last half of the decade. Because of continuous positive growth in last three years sales target has been fixed 7,424 units for current financial year. Though 7,424 units is a reasonable target for current financial year, we have to follow up our sales performance very closely, because rural and sub urban customers play vital role in Two- Wheeler market. As we know, agriculture and agriculture-based job are the main occupation of the rural and sub urban people employing above 60% of labor force of Bangladesh. So, Sales of Two- Wheeler might be declined in current financial year due to recent flood if we don’t take any preventive measures. Develop confidence and innovative thinking: Regardless of economic circumstances in Bangladesh we have to meet tomorrow’s challenges by maintaining confidence in our abilities and by developing the power of positive thinking. Develop workforces: We have to develop our sales work force by providing more opportunities for promotion, special assignment and in house training. The effectiveness of sales-force management is an important determinate of a company’s success because the sales force is directly responsible for generating an organization’s sales revenue. Product Knowledge: It is needless to mention, product knowledge is the main attribute to be a good sales executive. Without proper knowledge a sales executive doesn’t convince the customers to buy a product. In few cases our sales executives don’t have adequate knowledge to satisfy the customers through providing proper information regarding the products. To meet the tomorrow’s challenges we must have to develop knowledge of our sales team. Promotional activities: We have to take sales promotion activities, which employed to achieve company’s objectives. We may use sales promotion to achieve the following objectives To induce new customers. To introduce a new model of products.
To bring more customers in to retail stores/ showrooms. To stabilize a fluctuating sales pattern. To increase dealers inventories. To offset competitor’s marketing efforts. Sales promotion program can be taken in two ways: Consumer sales promotion: This method encourage consumer to buy a specific product. Trade sales promotion: It is stimulate dealers to handle a company’s products and to market this product aggressively. Develop strength of weak branches: Sylhet and Chittagong have achieved very poor market share, which are 12 and 16 units per month respectively. Market size is 200 units per month in above-mentioned two cities. That’s why we have to emphasis to enhance the market share. We hope, market share can be developed up to 40 units per month in mentioned cities by giving extra efforts. After sale service: After sale service plays an important role to develop brand loyalty. For long-term business we must develop brand loyalty. Customer satisfaction is the prime factor to build brand loyalty. That’s why we have to develop a several number of service center with modern equipment and sufficient parts all over the country, mainly Rajshahi, Bogra, Jessore including important cities/ towns to provide satisfactory after sale service to our valuable customers. Appoint the new dealers: We have to increase the number of dealers for two wheelers. In the mean time circular for “Two-Wheeler dealer appointment” has been published in “The Daily Ittefaq”. We expect, we can be completed the dealer appointment procedure within very short time. We positively hopeful, new dealers will play important role to maximize the company’s turnover by enhancing the sales volume.
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