Survey on Two-Wheeler Market in Bangladesh(2004)

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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 side-by-side mobilization of people also increased. As an easy and affordable transport, Two-wheeler 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) An analysis of the present situation of two-wheeler market in Bangladesh,

(ii) An analysis of sales trend of two-wheeler and estimation of their future demand.

(iii) An analysis to find the proper marketing and sales tools to marketing the products.

(iv) 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 Two- Wheeler 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 Country of Origin
Bajaj India
Honda Japan
Hero Honda India
Honda Pak Pakistan
Xinfu China
Jialing China
Yamaha India/ Japan
Suzuki India
Zongshen China
Dayang China
Qjiang 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 Market Size (Units) Market Share of UML
1996-97 14,316 2528
1997-98 19,784 1168
1998-99 19,224 806
1999-00 22,506 2429
2000-01 22,622 2920
2001-02 32,573 5945
2002-03 43,000 7805

Growth Rate of Two- Wheeler Market in last 5 years:

Financial Year

Growth Rate of Market

Growth Rate of UML
1997-98 38 % -54%
1998-99 – 3 % -31%
1999-00 17 % 300%
2000-01 .5 % 20%
2001-02 44 % 210%
2002-03 32% 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 Unit Amount in lac
1998-99 806 813
1999-00 2429 1569
2000-01 2920 1990
2001-02 5945 3714
2002-03 7805 4922
2003-04 10,000

Two- Wheeler Marketing Company in Bangladesh:

Marketing Company
Make and Model
Market Share
%
Uttara Motors Ltd.

Bajaj

7805

18.15%
Atlas Bangladesh Ltd. Honda Pak/ Honda (In/Ja) 12442 28.89%
H.S. Enterprise Ltd. 3733 8.7%%
Rupsha Trading Zongshen 2490
Karnaphuli Yamaha 1605
Bangladesh Auto Manu. Co. Jialing/ Qjiang 460
Emma Motors Jialing/ Xingfu 1025
Rian Motors TVS/ Suzuki 2320
Runner Dayang/ LML 9720
Singer Bangladesh Ltd. Singer 1602
Road Master Challenger/ Kinetic Boss 879

Market share of different brands of Two- Wheeler market in 2002-03

SL No. Brand / Make& Model Units Percentage
1. Bajaj 7805
2. Hero Honda 7017
3. Honda Pak 2700
4. Honda (Japan) 2725
5. Xingfu 465
6. Jialing 3435
7. Jincheng 250
8. Jianshe
9. Singer
10. Emma
11. Yamaha
12. Yamaha (Japan)
13. LML
14. Qjiang
15. S. Suzuki
16. Suzuki
17. Zongshen
18. Quinky
19. Dayang
20. Nitol

Market share of different brands of Two- Wheeler market in 2001-02:

SL No. Brand / Make& Model Units Percentage
1. Bajaj 6127 19
2. Hero Honda 4987 15.3
3. Honda Pak 2900 8.9
4. Honda (Japan) 1550 4.76
5. Xingfu 405 1.23
6. Jialing 1575 4.83
7. Jincheng 245 .75
8. Jianshe 450 1.38
9. Singer 744 2.28
10. Emma 285 .87
11. Yamaha 3835 11.77
12. Yamaha (Japan) 1200 3.68
13. LML 300 .92
14. Qjiang 510 1.56
15. S. Suzuki 900 2.76
16. Suzuki 150 .46
17. Zongshen 1750 5.37
18. Quinky 280 .86
19. Dayang 4140 12.71
20. Nitol 240 .72

Market share of different brands in Two- Wheeler market in 2000-2001:

SL No. Brand / Make& Model Units Percentage
1. Baja 2920 13
2. Hero Honda 2176 9.61
3. Honda Pak 2000 9
4. Honda (Japan) 1100 4.86
5. Xingfu 1625 7.17
6. Jialing 3049 13.46
7. Jincheng 1000 4.41
8. Jianshe 445 1.96
9. Emma 20 .09
10. Yamaha 3241 14.31
11. Yamaha (Japan) 1000 4.41
12. LML 150 .66
13. S. Suzuki 600 2.65
14. Suzuki (Japan) 430 1.90
15. Zongshen 1200 5.3
16. Dayang 1521 6.71
17. Others 175 .77

Market share of different brands in Two- Wheeler market in 1999-2000:

SL No. Brand/ Make& Model Units Percentage
1. Baja 2305 11
2. Zongshen 1340 6.4
3. Jianshe 300 1.42
4. Xingfu 899 4.28
5. Honda Pak 3212 15.29
6. Jialing 2260 10.75
7. Jincheng 600 2.85
8. Yamaha 4700 22.37
9. Hero Honda 2084 10
10. Samurai Suzuki 490 2.33
11. Yamaha (Japan) 1150 5.47
12. LML 450 2.14
13. Dayang 1220 5.8

Market share of different brands in Two- Wheeler market in 1998-1999:

SL No. Brand/ Make& Model Units Percentage
1. Bajaj 806 4.77
2. Zongshen 840 4.97
3. Jianshe 150 .89
4. Xingfu 1320 7.81
5. Honda Pak 3800 22.49
6. Jialing 1124 6.65
7. Jincheng 1300 7.69
8. Yamaha 2700 16
9. Hero Honda 2032 12.03
10. Samurai Suzuki 360 2.13
11. Yamaha (Japan) 900 6.57
12. Dayang 1110 5.33
13. LML 450 2.66

Sales trend of main competitors in Two Wheeler market in Bangladesh:

Brand 98-99 % 99-00 % 00-01 % 01-02 % 02-03 %
Bajaj 806 5 2305 11 2920 13 6127 19
Hero Honda 2032 12 2084 10 2176 9.6 4987 15
Honda Pak 3800 22 3212 15 2000 9 2900 9
Jialing 1124 6.6 2260 11 3049 13 1575 5
Yamaha 2700 16 4700 22 3241 14 3835 12
Zongshen 840 5 1340 6.4 1200 5.3 1750 5.4
Dayang 1110 6.5 1220 6 1521 6.7 4140 13
Honda (Japan) – – – – 1100 5 1550 5
Yamaha (Japan) 900 5.3 1150 5.5 1000 4.4 1200 3.7
S. Suzuki 360 2 490 2.3 600 2.6 900 2.8

Present price of different brands & models of Two- Wheeler:

Marketer Brand Model CC Price
Uttara Motors Limited Bajaj Croma 112 77,500
‘’ ‘’ Caliber 112 73,500
‘’ ‘’ Champion 100 71,500
‘’ ‘’ Aspire 112 69,500
‘’ ‘’ Boxer CT 100 61,500
‘’ ‘’ Boxer AT 100 57,500
‘’ ‘’ KB-125 125 60,000
‘’ ‘’ M-80 80 41,500
‘’ ‘’ Legend 150 69,500
‘’ ‘’ Classic SL (ES) 150 64,500
‘’ ‘’ Classic SL 150 60,500
‘’ ‘’ Chetak 150 54,500
‘’ ‘’ Super 125 42,500
Atlas Bangladesh Ltd. Honda Passion 100 76,500
‘’ ‘’ Hero 100ss 100 70,000
‘’ ‘’ Hero Sple. 100 74,000
‘’ ‘’ CG 125 125 1,32,000
‘’ ‘’ Honda XL 185 1,56,000
‘’ ‘’ CD 80P 80 1,05,000
‘’ ‘’ C-50 SWR 50 80,000
H.S. Enterprise Jialing JH 100 100 64,000
‘’ ‘’ JH125L 125 70,000
‘’ ‘’ JH 80 80 48,000
‘’ Jincheng AX 100 100 64,000
‘’ Xinfu XF125 A2 125 73,000
Marketer Brand Model CC Price
Karnaphuli Yamaha RX100 100 75,000
‘’ ‘’ RX S 115 115 1,37,000
‘’ ‘’ YB 100 100 1,05,000
‘’ ‘’ YBX 125 125 82,000
Emma Motors Jialing HS 100 100 57,500
‘’ ‘’ HS 125 125 70,000
‘’ ‘’ HS 80 80 53,000
B/Desh Auto Manu. Qjiang QJ 100 4S 100 62,000
‘’ ‘’ JQ 100 2S 100 64,000
‘’ ‘’ QJ 125 A 125 70,000
‘’ ‘’ QJ 100 U 100 85,000
Rupsha Trading Zongshen ED 80 80 53,000
‘’ ‘’ EG 125 125 70,000
‘’ ‘’ 2S 50 50 43,500
Runner Dayang DY 125-7 125 70,000
‘’ ‘’ DY 100-18 00 65,000
‘’ ‘’ AD 80 80 53.000
‘’ 50 43,000
Rian Motors Suzuki Samurai 100 76,900

Market potentiality of Bajaj motorcycle in Bangladesh market:

Market

 Estimated Market Size (Per Month) Average Sales of Bajaj(Per Month) Sales Potentiality(Per Month)
Dhaka 500 100 100
Chittagong 200 16 40
Rajshahi 400 83 85
Khulna 250 60 70
Sylhet 200 12 40
Bogra 250 65 70
Jessore 400 90 90
Rangpur 200 35 40
Dinajpur 225 35 40
Others 100 15 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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