Bajaj Pulsar Marketing Project

by vrigu (student)

University Degree Business and Administrative studies

10 years is a decade.
It's a long time to kill and a short time to get something done.
It’s a moment if you're in a rush. And a lifetime if you want to give it meaning.
Our 10 years went something like that.
We tried to give it meaning.
We tried to insert passion into every ticking second.
Not because we had to but because we wanted to.
Because we were doing something we believed in.
Pulsar came as an abuse to mediocrity.
We were laughing at convention and we wanted to be heard.
Pulsar was contrary to everything that seemed to work.
Possibly because Pulsar wasn’t meant to work.
It was meant for play.
But attitude requires substance.
And performance comes from persistence:
The persistence of brilliant engineering minds that keep challenging the present.
These discontented souls are forever trying to make the current Pulsar redundant.
It's in the nature of Pulsar to go ahead of itself and we aren't the ones who're going to hold it back.
And we can't.
Pulsar today is a movement and a spirit.
It's moved beyond being a product of engineering or a brand.
It's a statement and an attitude.
That has become a part of the rider's definition of himself.
Today we have a bigger responsibility.
A huge community of bikers get their daily dose of pride, riding the Pulsar.
And like us, they are never happy with the status quo.
They want more. They want to be better than the best.
When we created the Pulsar we never thought it would end up defining us.
But it did. Here's to the decade that has gone by on a Pulsar.
Here's to the decades going to come.

Pulsar. 10 Years of Leadership.
Pulsar. A decade of dominance.

Executive Summary

Bajaj Auto came into existence on 29 November 1945 as M/s Bachraj Trading Corporation Private Limited. It started off by selling imported two- and three-wheelers in India. Bajaj enjoyed near monopoly status ever since until the early 90s where Hero Honda stole the show from Bajaj. Bajaj has always pulled the patriotic string among Indians with their 'Hamara Bajaj' ad campaign and instilled the sense of ownership and belongingness. Over the last decade, the company has successfully changed its image from a scooter manufacturer to a two-wheeler manufacturer. Its product range encompasses scooterettes, scooters and motorcycles. Its real growth in numbers has come in the last decade years after successful introduction of the Bajaj Pulsar and Bajaj Discover. Bajaj has grown operations in 50 countries by creating a line of value-for-money bikes targeted to the different preferences of entry-level buyers. Bajaj Pulsar has virtually redefined biking in this country. Pulsar launched in 2001 is the market leader in the 150 cc + performance bike segment. More than that, this brand changed the fortune of Bajaj Auto Ltd.

Company Background

Bajaj Auto is a major Indian automobile manufacturer started by a Rajasthani merchant. It is based in Pune, Maharashtra, with plants in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttaranchal. The oldest plant at Akurdi (Pune) now houses the R&D center ahead. Bajaj Auto makes and exports motor scooters, motorcycles and the auto rickshaw. The company is headed by Rahul Bajaj who is worth more than US$1.5 billion. The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946.

History

Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading Corporation Private Limited. It started off by selling imported two- and three-wheelers in India. In 1960, BTCL was renamed Bajaj Auto Ltd. (BAL) and the company went public. The same year, it entered into a technical collaboration with Piaggio for the manufacture of scooters. In 1970, it rolled out its 100,000th vehicle. In 1977, it managed to produce and sell 100,000 vehicles in single financial year. In 1985, it started producing at Waluj near Aurangabad. In 1986, it managed to produce and sell 500,000 vehicles in a single financial year. In 1995, it rolled out its ten millionth vehicles and produced and sold 1 million vehicles in a year.

Profile

Founder                                Jamnalal Bajaj
Year of Establishment                1945
Industry                                Automotive
Business Group                        The Bajaj Group
Listing and Codes                BSE (500490)
                                NSE (BAJAJAUTO)
Presence                        Distribution Network in over 50 countries. Dominant presence in India,
                                Sri Lanka, Bangladesh, Columbia, Guatemala, Peru, Egypt, Iran,
                                 Indonesia.
Joint Ventures                        Kawasaki Heavy Industries, Japan
                                KTM, Austria
Registered Head Office                Akrudi, Pune, India.

Timeline

1945 Bajaj Auto comes into existence as M/s Bachraj Trading Corporation Private Limited

1959 Bajaj Auto obtains license from the Government of India to manufacture two- and
three-wheelers

1960 Bajaj Auto becomes a public limited company. Bhoomi Poojan of Akurdi Plant.

1971 The three-wheeler goods carrier is introduced

1972 The Bajaj Chetak is introduced.

1977 The Rear Engine Auto rickshaw is introduced. Bajaj Auto achieves production and
sales of 100,000 vehicles in a single financial year.

1991 The Kawasaki Bajaj 4S Champion is introduced.

1995 Agreements signed with Kubota of Japan for the development of diesel engines for three-wheelers and with Tokyo R&D for un-geared Scooter and moped development. The Bajaj Super Excel is introduced while Bajaj celebrates its ten millionth vehicles, One million vehicles were produced and sold in this financial year.

1998 Kawasaki Bajaj Caliber rolls out of Waluj. Legend, India’s first four-stroke scooter rolls out of Akurdi. Spirit launched.

2001 Bajaj Auto launches its latest offering in the premium bike segment ‘Pulsar’. The
Eliminator is launched.

2003 Pulsar DTS-i is launched.107, 115 Motorcycles sold in a month. Bajaj Wind 125, The World Bike, is launched in India. Bajaj Auto launched its Caliber115 "Hoodibabaa!" in the executive motorcycle segment.

2004 Bajaj Discover DTS-i launched. New Bajaj Chetak 4 stroke with Wonder Gear launched. Bajaj CT100 is launched. Bajaj unveils new brand identity, dons new symbol, logo and brand line.

2005 Bajaj Discover launched Bajaj Avenger DTS-i launched Bajaj Wave DTS-i launched

2006 Bajaj Platina launched.

2007 Launch of XCD DTS-Si National launch ...

This is a preview of the whole essay

2001 Bajaj Auto launches its latest offering in the premium bike segment ‘Pulsar’. The
Eliminator is launched.

2004 Bajaj Discover DTS-i launched. New Bajaj Chetak 4 stroke with Wonder Gear launched. Bajaj CT100 is launched. Bajaj unveils new brand identity, dons new symbol, logo and brand line.

2005 Bajaj Discover launched Bajaj Avenger DTS-i launched Bajaj Wave DTS-i launched

2006 Bajaj Platina launched.

2007 Launch of XCD DTS-Si National launch of 220 cc pulsar DTS-Fi Bajaj auto commissions new plant at Pantnagar, Uttarakhand200 cc pulsar DTS-I launched Bajaj Kristal DTS-I launched.

2008 Launch of Bajaj Discover 135 DTS-i-sport (Upgrade of existing 135cc model)

2012 Launch of Bajaj Pulsar 200 NS, Discover 135 ST. The Bajaj Discover toppled HMC Splendor as the world’s top selling motorcycle.

Situation Analysis

1. Customer Analysis:

Bajaj Pulsar covers a various range of customers. But in general it targets the Youth and the 18-35 age group via its sporty, rugged, adventure attitude. The Pulsar 150, 180 are mainly targeted at college students, young working professionals of the middle class. The Pulsar 220, Pulsar 200 NS and the now discontinued Pulsar 200 were targeted at Motorcycle Enthusiasts with a relatively higher income. In the highly competitive 100-135 segment, Pulsar 135 LS is targeted at college students and the middle aged urban customer.

2. Company Analysis:

Bajaj Auto Limited launched the Pulsar 150 and The Pulsar 180 in 2001. These were the first Indigenous bikes made in India. Thereafter the successfully converted the niche segment of 150 CC + segment into the mainstream by aggressive pricing of their products, intelligent ad campaigns and constant upgrading of the Pulsars on an annual basis. In 2010 The Pulsar Brand was valued at $1.4 billion. Now, in the performance Bikes segment Pulsar outsells every other bike manufacturer combined.

3. Collaborator Analysis:

Prior to the production of Pulsar, Bajaj had a partnership with Japanese manufacturer Kawasaki. It churned out many successful models like The Kawasaki Bajaj Boxer and Caliber. But couldn’t venture into the Performance Biking Segment. The Bajaj Pulsar was an Indigenous product with all Research and Development done in India. In 2011 Bajaj became a majority stake holder with Austrian Sports bike manufacturers KTM. And in Q1 2012, Bajaj rolled out the Pulsar 200NS with DNA of the KTM Duke 200. Both these bikes had very similar specifications, usage, target customers and had the same parts.

4. Competitor Analysis:

Bajaj lost out its market dominance in the Early 90s when it sold only scooters. During the economic boom of the 90s in India, the middle class of the India now equipped with more disposable income could opt for motorcycles due to many advantages like

-Better Mileage

-Lower Maintenance

-Better Maneuverability

-Better suited to Indian Roads

-Bikes gave a better statement than Scooters

Hero Honda was the market leader after this. Bajaj managed to fight back to some extent in the 100-135 segment but Hero Motor Corp still is the market leader now. Bajaj was one of the first manufacturers to tap the 150+ segment in India. This made inroads for other Japanese and Indian manufacturers to explore this segment.

-Entry Level Segment : In the 135 cc Category, The major Competitors of the Bajaj Pulsar 135 LS are CBR Twister, Bajaj Discover 135, HMC Glamour 125, Yamaha Gladiator 125, TVS Flame 125. Honda Stunner 125. Though the Pulsar 135 LS is priced higher than the other bikes in this segment, it is technologically superior and enjoys its niche.

-Mid Level Segment : The major Competitors for The Bajaj Pulsar 150 and 180 in this segment are Hero CBZ Xtreme, Honda Unicorn, TVS RTR 160 and 180, Yamaha FZ-150 and FZS 150. Here the Pulsar is the Segment leader by a wide margin.

-Performance Segment: In this segment the competitors for Pulsar 220 and Pulsar 200NS are The KTM Duke 200, Yamaha R15 150, CBR 150, Royal Enfield Thunderbird, RE Desert Storm, Hero Karizma ZMR, etc. Here again the Pulsar are the market leaders due to the loyal customer base, aggressive pricing and surprisingly similar technology to their established Japanese Competitors.

5. Context Analysis:

The Bajaj Pulsar was highly successful due to excellent ad campaigns, aggressive pricing, reliable products and a Made in India sentiment attached to its products. Furthermore newer models of Pulsars are introduced regularly catering to the various customer segments and the existing models are revamped and upgraded constantly, thus keeping the interest in the brand alive throughout the last decade.

SWOT Analysis

Strengths:

1. The Pulsar has many variants which can cater to the needs of the various market segments. e.g. 135LS, 150, 180, 220, 200NS.

2. The R&D department of Bajaj Pulsar has proved to be very effective till now successfully introducing never-seen-before-features.

3. High Mileage in Pulsar Bikes, DTSi Technology, Triple Spark, Nitrox Suspensions, Exaustec Exausts , LED Lamps, Wolfbane projection lamps, Digital Console give the Pulsars a technological edge over its competitors.

4. It is a tried and Tested Product with more than 10 years of lineage and lots of positive testimonials.

5. Very effective and Excellent Ad campaigns.

6. Tie ups with Bajaj Auto Finance, Bajaj Allianz make it easier for the customers to buy bikes.

7. Pro Biking Showrooms in Metro and Tier I cities cater to the needs of the Rich Customers.

8. Tie ups with KTM makes inroads for Technology Sharing, Badge Engineering and scale of Economies.

Weaknesses:

1. Hero Motor Corp is still the market leader in the 100-150 CC segment.

2. Making too many variants of the Pulsar and exploring the 1000-135 Segment might not go well with the existing customers.

3. Due to the sudden influx of many established players in the 200+ segment, Bajaj might find it difficult to match up to the technologies of Japanese and American Manufactures.

4. Hero Moto Corp is still the most trusted brands outside of Urban India.

5. The Pulsar are not considered to be good Touring Bikes. It needs to catch up to Yamaha and Royal Enfield in terms of Long distance rides comfort.

6. Non-inclusion of ABS in the top end models make it a sore point for prospective buyers.

7. The touring capabilities of the Pulsars have never been of the FZ 150, Karizma ZMR or of the Royal Enfield's caliber.

Opportunities:

1. Partnership with Austrian Manufacturer KTM can help Bajaj Pulsar get a technological Leapfrog.

2. Partnership with Kawasaki and technology sharing with Kawasaki Ninja.

3. Growing demand of reasonably priced sports bikes can make a niche for higher powered Pulsars.

4. Increase of interest for Stunt Biking, Off Roading and Touring among the Motorcycle Enthusiasts can help The Pulsar reinforce its image as a serious sports bike rather than a Street Fighter-Urban Commuter Hybrid.

5. Needs to tap on Badge Engineering to minimize cost and R&D time.

6. The Pulsar have good demand in developing countries in South East Asia, Latin American and Africa. These export markets can be tapped.

Threats:

1. The recent move to rebrand the Bajaj Pulsar into just Pulsar might be risky.

2. Product cannibalization might occur as Duke 200, Discover 135, Discover 150 and the Upcoming Duke 350 are competing in the same segment as the Pulsars.

3. Copycat Chinese Products eat up into the sales of the Pulsars in South East Asian, African and Latin American Countries

4. The competition catches up with Baja's Innovation in almost no time.

5. The conversion of the Pro Biking showrooms into KTM Showrooms might decrease the brand equity of the Pulsars.

Marketing Strategy

Bajaj realizes that its competitors Yamaha and Honda have a long and rich heritage of Racing and performance. So rather than going on a flank attack on the Japanese superbikes Bajaj projected the Pulsar into broadly two segments. Urban Street Fighters and Stunt Bikes. The High Mileage, Good Handling, High Wheel base, Higher Power to weight ration and lower maintenance helped reinforcing the Stunt Bike attribute. For this Bajaj made a series of TV advertisements staring World Stunt biking Champions AC Farias and Christian Rfeiffer which focused on stunting, ran a promotional campaign 'Pulsar Stuntmania', Produced a popular Stunt Biking show on MTV India called as Pulsar MTV Stuntmania, Held rock concerts and stunt biking shows in metros and Engineering colleges all over India, sponsored two stunt biking clubs, 'GhostRyderz' and 'Pulsar Stunt Maniacs', Focused on giving a rugged stunting look to the bikes in its Pro Biking showrooms.

Segmentation:

The Pulsar targets mainly three segments, The Entry level segment gives high Powered performance in low price and is dubbed as the Light Sports category. The Mid-range is the major segment for the Pulsar and derives the maximum revenue. This segment is marketed as a high powered bike with rugged features at a price which won't burn a hole in the pocket. The performance segment offers world class features for bike enthusiasts. Overall the Pulsar segment can be generalized as a segment for Good Looking, Low Priced, performance oriented bikes.

Targeting:

The Target group for the Pulsars range from 18 to 35 years population. The lower and mid segment is mainly targeted at college students and urban commuters. The elite segment is targeted at biking enthusiasts. The pulsars have become a style statement among the late teenagers and a must have bike for stunt enthusiasts. It's rugged feel and goof power to mileage ratio has also made it very popular among the middle aged customers.

Positioning:

Bajaj positions the Pulsar 220 as the 'Fastest Indian'. And in the recent 'Hunto' ad campaign Bajaj focuses on its surprising technological superiority over other Japanese bikes on the same segment. With the recent break up of Hero and Honda, Bajaj aims to become the number one motorcycle manufacturer of the country while not mindlessly chasing number and volumes. The Pulsars are positioned as Pure Performance Bikes at a Value for Money offering.

4 Ps

Product:

Bajaj Pulsar was first introduced as a performance bike for the middle class in the form of Pulsar 150 and Pulsar 180. Over the years it has explored the 135 CC, 200 CC and 220 CC categories also. New models are introduced and the existing models are upgraded every year. The Pulsars pioneered many breakthrough technologies in India like DTSi, DTS-Fi, Exhaust-Tec, Triple Spark, LED Lamps, Wolfbane Projector lamps, NitroX Suspensions, Underbelly Exhaust, Digital Console, etc. Plans are being made to introduce more powerful Pulsars kin the coming years. Before the introduction of the Pulsar, the Indian motorcycle market trend was towards fuel efficient, small capacity motorcycles (that formed the 80–125 cc class). Bigger motorcycles with higher capacity virtually did not exist (except for Enfield Bullet). The launch and success of Hero Honda CBZ in 1999 showed that there was demand for performance bikes. Bajaj took the cue from there on and launched the Pulsar twins in India on 24 November 2001. Since the introduction and success of Bajaj Pulsar, Indian youth began expecting high power and other features from affordable motorcycles.

The Pulsar Evolution Timeline:

2001: The original Pulsar came with a 150 cc air-cooled, single-cylinder, petrol, spark-ignited four-stroke engine which made 13 HP of maximum power. They featured a single spark plug to ignite the air-fuel mixture fed from a carburetor, simple spring shock absorbers, round headlamp dome and 1,265 mm wheelbase. Disc brakes as standard equipment was a novelty in Indian motorcycles of the early 2000s. Other standard features were parking lights and an aircraft-type fuel tank lid. The design of the motorcycle was inspired by a wide open muscular human arm. The 180 cc version made 15 HP of maximum power and came with a twin-tone horn, which was optional equipment on the 150 cc version. Electric Start (ES) was offered as standard feature in the 180 cc model and optional on the 150 cc model

2003: The second generation Pulsars featured Bajaj Auto's newly developed DTSi technology, which increased the power rating of both versions by 1 hp (0.75 kW) each and also increased fuel economy.[17] This model also introduce a new headlamp assembly, 1,320 mm wheelbase, and standard twin-tone horn and trip meter.

2005: In 2005, Bajaj launched another upgrade of the Pulsar. The bike was offered with 17-inch (430 mm) alloy wheels as standard option, and the stance was also lowered by about 12 mm. It was the first time any bike maker in India had offered 17-inch (430 mm) profile wheels at the rear. The fuel tank now had a capacity of only 18 litres. The power output was now further increased to 13.5 hp (10.1 kW) @ 8500 rpm for the 150 while it increased to 16.5 hp (12.3 kW) @ 8500 rpm for the 180.The rear shock absorbers were now gas-filled Nitrox absorbers.

2006: Bajaj introduced another version of Pulsar (UG III). New features included: pilot lamps separated from the main headlamp, turn indicators with clear lenses and amber bulb, self-cancelling turn indicator switch, flush LCD screen with digital read-out of key vehicle data, non-contact speed sensor, non-contact backlit switches, twin-stripe LED tail-light assembly and side panels altered for a sharp, tapering-towards-the-rear look. The engine had increased torque availability, reduced vibration and improved gear shift feel. cc variants.

2007: In July 2007, Bajaj began selling the Bajaj Pulsar 220 DTS-Fi and Pulsar 200 DTS-i, the former featuring fuel injection and oil cooled engines, a digital dash, and modern styling. This bike has some features which are totally new to the Indian market, like the fuel injection itself, rear disc brake and clip-on handlebars (the first two only available in the 220 model).

2008: The new Pulsar has many firsts to its credit. It comes equipped with an oil cooler, which helps control engine oil temperatures at sustained high speeds and rpms, thus ensuring more stable engine oil viscosity. The new digital console is an advanced version of the latest Pulsar family. Apart from the Digital Odometer, Digital Speedo Meter, Digital Fuel Gauge, Self-Cancelling Indicators and two Digital Trip Meters, the console on the 200 cc Pulsar DTS-I has indicators for the air filter condition, engine temperature, battery voltage and oil level.

2009: Bajaj released the UG IV (fourth upgrade) versions of the Pulsar 150 and Pulsar 180 in April 2009. The upgrades for the Pulsar 150 included an all-black theme, tank scoops similar to those on the Pulsar 200, a 3D Pulsar logo, and a changed electrical system (full DC). Power also increased from 13.5 HP to 14.09 HP (at 8,500 rpm).Electrical enhancements like auto head light switch-off after few seconds of turning the engine off to protect the battery, self-cancelling turn signals, icon illumination (horn icon, indicator icon, engine cut off icon, etc.), side stand warning light, duel digital trip meter, low fuel warning light (which also flashes when the engine is revved too hard), and low battery indicator are common features among all the variants and Auto Choke System in 220 Variant. The Pulsar 180 received upgrades like wider tires, split seat, tank scoops, clip-on handlebars, 3D Pulsar logo, swing arm suspension borrowed from Pulsar 200, and thicker forks. The power was increased to 17 PS. Bajaj launched a carbureted version of Pulsar 220 on June 2009, tagging it as "the fastest bike in India". It also discontinued the production of Pulsar 200 on July 2009. Bajaj also introduced a new Light Sports version of Pulsar named as Pulsar 135LS. It is the first bike in India to contain 4-valve DTS-i technology. It consists 4 smaller valves rather than 2 standard bigger valves, styling also is changed and looks become more aggressive. The bike is ARAI certified for 68.5 km/l and weighs only 122 kg.

2010: Bajaj released the UG 4.5 versions of the Pulsar 150. The upgrades for the Pulsar 150 included a clip-on handlebars like those in Pulsar 135LS. Power also increased from 14.09 HP to 15.06 HP (at 9,000 rpm). A naked version of Pulsar 220 is also launched, named as Pulsar 220S (Street Fighter) which retains everything from Pulsar 220 except the front fairing. Front fairing is similar to Pulsar 180/150. Old Pulsar 220 is now named as Pulsar 220F.

2011: Bajaj released Pulsar 135LS,150,180 and 220F.

2012: 2012 marked the entry of Bajaj's latest design, the Pulsar 200NS (NS standing for Naked-Sport). The bike has a revised 200 cc liquid cooled engine, which produces 23.17 bhp (17.28 kW) at 9,500 rpm and 18.3 N·m (13.5 lbf·ft) at 8,000 rpm. It has a new triple-spark design, along-with a new four-valve SOHC. The company claims a top speed of 136 km/h (85 mph). It does not have fuel injection like its predecessor, the Pulsar 220Fi. It has a petal disc brake on the front, a disc brake on the rear wheel, and a gas-charged monoshock. It is expected to be launched by mid-end April 2012. Claimed fuel economy is 58 kilometers per liter (140 mpg-US) when ridden under 60 km/h.[25] Design of the 200NS was by Bajaj lead designer Edgar Heinrich, who left Bajaj to become head of BMW Motorrad design in mid-2012.

Price:

Bajaj follows an aggressive pricing policy offering the Pulsars are very competitive prices for the value they offer. The current Ex Showroom prices of the various models in Maharasthra region are as follows.

Pulsar 135 LS : Rs. 57553

Pulsar 150 : Rs. 65545

Pulsar 180 : Rs. 68695

Pulsar 220 F : Rs 79375

Pulsar 200 NS : Rs. 83043

Promotion:

Bajaj Auto TV advertisements are considered to be among the best in India. Initially during the launch of the Bajaj Pulsar 150 and 180, a 'Definitely Male' campaign was done. This pitted the Pulsar as a muscular, rugged Man-Bike. This ad campaign was immensely successful. After the launch of the DTSi models the 'Definitely Male' campaign was replaced by the 'Digital Biking' campaign. At the launch of the 220 Fi model the ad campaign switched over to 'Distinctly Ahead' with the return of a Hard Rock rendition of the iconic 'Hamara Bajaj' jingle. The P 200 was couple with a 'Free Biking' ad which started off the Stunting Image of the Bajaj Pulsars. Soon After the 'Stunt Mania' ad kicked off starring famous stunt-bikers AC Farias and Chris Pfeiffer and a 'Pulsar Stuntmaniacs' which portrayed an array of pulsars doing stunt work similar to a ballet and a hip hop respectively. Next 'The Fastest Indian' Ad was accompanied with the Launch of the P 220 F. The latest ad takes on the Japanese Manufactures with the 'Hunto' Ad campaign.

Additionally Bajaj sponsors shows like the 'Pulsar MTV Stuntmania', Stuntbiking teams like the 'Ghost Ryders' and 'Stunt maniacs', sponsoring rock concerts and stunt stows all over the country and sponsoring adventure tours to destinations like Leh, Ladakh, etc.

Place:

Bajaj has more than 700 dealers in India which sell all Pulsar models up to the P 180 CC. And Bajaj has over 40 separate Pro biking show rooms which sell the Pulsar 200 NS and Pulsar 220 F along with Kawasaki Ninja, KTM Duke 200 and Bajaj Avenger, hence equating the bike's image with respected European and Japanese heavyweights. Apart from that Bajaj has more than 1800 urban service centers and 1400 rural service centers. The service centers are both company operated and dealer operated.

Marketing Plans

Badge Engineering
Scale of Economy
Tech Sharing with KTM and Kawasaki
More world class ads
More stunt biking ads
More Tracked based racing ads
Targeting college fests
Match Up Stunt mania with Hero Roadies
Take advantage of Hero and Honda Fallout
R and D of superbikes
More Probiking Showrooms
Viral marketing of stunning pulsar videos
Reality shows
More focus on the high end market as the low end is already covered by the discover
Motorcycle clubs like Harley Davidson
Pulsar Merchandise.
Customer Centric rather than product Centric.

Since its inception The Pulsar has always been the leader in the premium segment. But recently it is facing serious competition from The Yamaha FZ, FZS, Fazer in the 150-180 segment with the TVS RTR 160/180 trailing not far behind. And to add to that the recent spurt in the 200 CC + segment might make things tough for Bajaj.

1. Badge Engineering and Cross Badging: Bajaj can take advantage of Badge Engineering and Cross Badging to gain ground in the Indian Premium Bike segment. As Bajaj is technologically less well equipped than its Japanese counterparts it can share technology with KTM, gain a technological leapfrog and come up with mode advanced models of Pulsar.

2. Partnership with Kawasaki: Currently the partnership of Baja with Kawasaki extends just to Bajaj selling Kawasaki Ninja 350 and 600 in India via its KTM/Probing showrooms.

Trends in Last 1 Year

For observing trends and projections we will be taking the data March 2011 to March 2012 into account.

Automobile sales in March 2012 ended on a high note with a few two wheeler OEMs hitting all-time high sales volumes. Although the demand has been considerably high throughout the year, a certain amount of moderation is seen in the sector. Segment-wise Bajaj sold 300,848 units of motorcycles in the period up 10 per cent from 274,392 sold in the corresponding period of last year. Additionally, The Pulsar created history by recording a sale of 5 million pulsars since its inception around one year back. Overall Honda overtakes Bajaj in domestic 2 wheeler sales and emerges as the second-largest player in the country's two-wheeler market. Though the Pulsar and the Discover sales fared very well, Baja had a weak stance in the 100-125 CC category.

Bajaj had a 25.5 percent market share, a volume growth of 9.4 % growth from the last period. Bajaj is counting on increase in motorcycle sales for continuing its market stand. Its exit from scooter category is questionable and its weak presence in 100-125 cc has been Bajaj Auto's biggest pain point. But it is still confident with its dominance in executive/performance bikes segment. It recently launched KTM Duke 200 and Pulsar 200 NS to expand its product range in the category. With Duke coming in; it surely has a strong product in hand to compete against the R15's and the CBR's. But Milind Bade, GM (Marketing, Bajaj) says that Bajaj is not mindlessly running after Volumes. Rather they are concentrating on just the middle and the top end market (i.e. Discover and Pulsar). So all the marketing will be directed towards the Discover and Pulsar Brands and a rebranding will be done.

Future Projections

Rahul Bajaj has already confirmed the launch of the KTM Duke 390 in 2013. A similarly powered Pulsar is also expected to be launched around the same time. Hyosung has already launched its 600 CC and 250 CC bikes in India. Yamaha is planning to bring it higher powered Fazers and Rs into India. Honda is also bringing in its CBR superbikes in late 2012 and early 2013. Though the P 350 will be severely underpowered to take on these models but would provide a cheaper replacement for the urban middle class.

After a splendid run in 2011, the motorcycle sales have been wobbly since Q4 2011 onwards. The passenger vehicle segment grew marginally at 0.49% year on year during April-December 2011. The future prospects doesn’t seem to sunny due to the current economic downturns. So the key is to focus on the high end market which is a niche and doesn't seem to be too much affected. Earlier the motorcycle industry growth was projected at 14% per annum. Now a realistic projection will be an 8% growth. After three years of above trend growth, two-wheeler growth is moderating. Analysis over the past 20 years suggests that it is unlikely that growth will enter negative territory, but mid-single digit growth for a couple of years cannot be ruled out.

Rural India, which accounts for almost 50% of the overall sales of the two wheeler industry, may play the role of wrecker-in-chief as rural income and the farm sector increasingly come under strain due to limited policy support and rising default risk on agri credit. Hero Moto Corp and TVS will take a major hit in these markets. So Bajaj has to tap on that.

Document Details

Author

vrigu
Author Type

Student
Word Count

5553
Page Count

10
Level
University Degree
Subject

Business and Administrative studies
Type of work

Homework assignment