1) The threat of substitute products: The existence of close substitute products increases the propensity of customers to switch to alternatives

in response to price increases (high elasticity of demand). Buyer propensity to substitute Relative price performance of substitutes Buyer switching costs Perceived level of product differentiation In case of Bajaj Kailash Parbat Tel which is present in light hair oil segment, has to compete with various other products like navratan tel, to sustain there position, it has to constantly re invent its existing product in order to cope up with the innovations of its competitors.

2) The threat of the entry of new competitors: Profitable markets that yield high returns will draw firms. This results in many new entrants, which will effectively decrease profitability. Unless the entry of new firms can be blocked by incumbents, the profit rate will fall towards a competitive level (perfect competition). The existence of barriers to entry (patents, rights, etc.) Brand equity Switching costs or sunk costs Capital requirements Access to distribution Absolute cost advantages Learning curve advantages Expected retaliation by incumbents Government policies The Company has gone a long way in popularising and making easily available a whole range of products based on the traditional science of Ayurveda & sages. And it has set very high standards in developing products and processes that meet stringent quality norms. So all the advantages of first mover, learning curve, brand loyalty, patents and economies of scale exist with Bajaj Corp. India. 3) The intensity of competitive rivalry: For most industries, this is the major determinant of the competitiveness of the industry. Sometimes rivals compete aggressively and sometimes rivals compete in non-price dimensions such as innovation, marketing, etc. Number of competitors Level of advertising expense

 Economies of scale Sustainable competitive advantage through improvisation Key players and competitors of Bajaj Kailash Parbat Oil India currently are Hindustan Unilever Ltd., Colgate Palmolive Ltd., Marico Ltd., Galaxo Smithkline consumer, Reckitt Benckiser Ltd., Procter & Gamble. Since the industry is growing at a very rapid pace and so is the no. of players. So Bajaj Kailash Parbat Oil India has to constantly relook at its strategy in order to increase its global dominance. 4) The bargaining power of customers: Also described as the market of outputs. The ability of customers to put the firm under pressure and it also affects the customer's sensitivity to price changes. Buyer concentration to firm concentration ratio Degree of dependency upon existing channels of distribution Bargaining leverage, particularly in industries with high fixed costs Buyer volume Bargaining powers of buyers have increased dramatically with the advent of Globalisation. With increased presence of other players in the market as mentioned previously, suppliers have got wide range of choices. So Bajaj Corp. India has to formulate strategy in such a manner to keep abreast with the increasing competition by improving the quality and reducing the prices over the period. 5) The bargaining power of suppliers: Also described as market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm. Suppliers may refuse to work with the firm, or e.g. charge excessively high prices for unique resources. Supplier switching costs relative to firm switching costs Degree of differentiation of inputs

 Presence of substitute inputs Supplier concentration to firm concentration ratio Cost of inputs relative to selling price of the product. Due to its strong presence Bajaj Corp. does have a very strong bond with the suppliers. Also Bajaj does follow the policy of having good relations with all the peoples with which it deals. This helps in having a good relation with the suppliers for Kailash Parbat Tel. Also the policy of being accountable to stakeholdersbe it customers, without whom it will not be in business, shareholders, who have an important stake in our business and the employees, suppliers who have a vested interest in making it all happen- are their stakeholders

MARKETING MIX

Bajaj Corp reflects its dominant position (~50% marketshare in value terms) in the light hair oil segment, which constitutes ~14% of the total hair oil market and has achieved this with its

innovative product offering, pricing strategy, easy availability and promotion campaigns. In the marketing mix of Bajaj Corp., we shall be discussing the 4 Ps of marketing mix with respect to Kailash Parbat tel . The mix shall be analyzed as followed: Product Price Place Promotion

Product Product Variety Quality Design Features Brand Names Services

Price List Price Discount Financing Schemes Credit Terms

Promotion Advertising Promotion Public Relations Sponsorships Internet Marketing &

Place Channels Location Inventory

PRODUCT
Bajaj kailash parbat tel is the leader in the light hair oil category and enjoys a market share of 61 per cent. This medicinal oil is an outcome of ayurvedic herbs which have been discovered by the intense research of ancient rishis and sages.This oil is like a boon for freshness of mind and body, and this is an ayurvedic proprietary medicine. Today's fast paced life with high aspirations, hurry and dissatisfaction creates restlessness that makes brain tissues tense and body and mind get tired. So now Bajaj Corp present Kailash Parbat Cooling Oil that frees one from tension and gives mental peace and coolness. It's not only a cosmetic or hair oil, its also a medicinal oil that makes brain tissues strong, tension-free and capable of bearing the effects of changing seasons. It's observed that sleep is lost due to worry, anxiety, depression and tension. Gentle head massage with Bajaj Kailash Parbat Cooling Oil brings sound sleep and gives relief from disturbing dreams and depression.

Available in:
Kailash Parbat oil is available in three sizes to cater to the needs of different types of people. 200ml, 100ml, 50ml, and 3ml sachet

PRICE
The pricing of Kailash Parbat tel is very competitive. Kailash Tel uses second-degree price discrimination i.e. more the quantity, lower the price. 100ml 50ml 3ml Rs.52.00 Rs.25.00 Rs. 2.00

PRICE/QUALITY MATRIX

Price Quality Luxury High Segment Ideal Penetration For Premiere Offering High Middle Low

Overpriced Middle

Average

Real Bargain Kailash Parbat Tel

Make Low

The

Unhappy Customers

Cheap Goods

Sale and Run

PLACE

Bajaj Corps strong distribution network, which iscomparable to its larger peers. The established distribution network will provide the required strength for future growth in existing as well as new products. The grade is supported by the strong brand recall of Bajaj both in the rural and urban markets. The grade has also factored in the strong management, its experience in the FMCG industry and strong promoter background.

PROMOTION

The main form of promotional activities of Bajaj Kailash Parbat Tel is concentrated towards advertising and it has legible sales promotional activities.

Advertising
Nothing can happen without establishing the brands heritage emphasizing technological prowess, explaining benefits and building bonds with prospective

buyers. Ads are necessary because the images are still mould able and fluid and the consumers sophistication level is low. Kailash Parbat Tel is advertised on print media as well as on television. Kailash and Parbat, the two protagonists played by RajuSrivastava and Sunil Pal respectively feature in this ad which is a funny take on the current political scenario. Parbat is the always irritable party worker who was rooting to get a ticket in the upcoming elections, while Kailash, the cool one brushes his antics with his cleaver one liners while getting his "ChandankiChampi" done with Bajaj Kailash Parbat Thanda Tel