PROJECT REPORT MARKETING MANAGEMENT
Product: - BAJAJ PULSAR
Submitted to: P.Bhardwaj
Submitted by: ABHISHEK CHAUDHARY-2010011 CHAUDHARY-2010011 AKHIL AGARWAL-2010022 ALOK PALIWAL-2010024 ANKIT AGARWAL-2010032 ASHISH MOHAN SRIVASTAVA-2010268
Company Background Bajaj Auto is a major Indian automobile manufacturer started by a Rajasthani merchant. It is based based in Pune, Pune, Maharas Maharashtr htra, a, with with plants plants in Chakan Chakan (Pune) (Pune),, Waluj Waluj (near (near Auranga Aurangabad bad)) and Pantnagar in Uttaranchal. The oldest plant at Akurdi (Pune) now houses the R&D centre 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 a single single financial financial year. In 1985, 1985, it starte started d produci producing ng at Waluj Waluj near Aurangab Aurangabad. ad. In 1986, 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
1 945
Industry
Automotive - Two & Three Wheelers
Business Group
The Bajaj Group
Listings & its codes
BSE - Code: BAJAJAUTO
Presence
Distribution network covers 50 countries. Dominant presence in Sri Lanka, Bangladesh, Columbia, Guatemala, Peru, Egypt, Iran and Indonesia.
Joint Venture
Kawasaki Heavy Industries of Japan
Registered & Head Office
Akurdi Pune - 411035 India
500490;
NS E
-
Code:
Tel.: +(91)-(20)-27472851 Fax: +(91)-(20)-27473398 Works
● ●
●
Akurdi, Pune 411035 Bajaj Nagar, Waluj Aurangabad 431136 Chakan Industrial Area, Chakan, Pune 411501
E-mail
[email protected]
Website
www.bajajauto.com
Quick Facts 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 threewheelers 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
Bajaj Auto is 50.
Agreements signed with Kubota of Japan for the development of diesel engines for threewheelers 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 of 220 cc pulsar DTS-Fi Bajaj auto commissions new plant at Pantnagar, Uttarakhand 200 cc pulsar DTS-I launched Bajaj Kristal DTS-I launched
2008
Launch of Bajaj Discover 135 DTS-i-sport (Upgrade of existing 135cc model)
Product history History 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 November 24, 2001. Since the introduction and success of Bajaj Pulsar, Indian youth began expecting high power and other features from affordable motorcycles. Bajaj has launched pulsar DTS-I in its attempt to remain ‘Distinctly Ahead’. The all new Pulsar is packed with the path breaking next generation technology of digital biking. Its various digital services provides efficient fuel combustion and better performance under all conditions
Evolution 2001
The original Pulsar came with a 150 cc air-cooled, single-cylinder, petrol, spark-ignited fourstroke engine which made 12 bhp of max 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 1,265mm wheelbase. Disc brakes as standard equipment were a novelty in Indian motorcycles of the early 2000s. Other standard features were parking lights and an aircraft-type fuel tank lid. The 180 cc version made 15 bhp of max power and came with a twin-tone horn, which was optional equipment on the 150 cc version. Electric Start (ES) was also offered as an option on both the bikes. 2003
The second generation Pulsars featured Bajaj Auto's newly developed DTSi technology, which increased the power rating of both versions by 1 bhp (0.75 kW) each and also increased fuel economy. This model also introduced 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 15 litres. The power output was now further increased to 13.5 bhp (10.1 kW) @ 8500 rpm for the 150 while it increased to 16.5 bhp (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. 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. They also introduced the 1 down 4 up variant of the gear box for the first time on sub 150 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). 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 bhp to 14.09 bhp (8500 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. The Pulsar 180 received upgrades like wider tyres, 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.
Market Analysis for Bajaj Pulsar Environmental analysis: Global and local PEST framework for environmental auditing Technological factors R&D Bajaj Auto has a huge, extensive and very well-equipped Research and Development wing geared to meet two critical organizational goals: development of exciting new products that anticipate and meet emerging customer needs in India and abroad, and development of ecofriendly automobile technologies. The company has investing heavily in the latest, sophisticated technologies to scale down product development lifecycles and enhance testing capabilities. Bajaj had first dramatically improved engine technology in 2003 when it launched the DTS-i (Digital Twin Spark-ignition) engine to achieve faster and more efficient combustion. In 2007, the core DTS-i engine was then further engineered and the DTS-Si engine launched to deliver exceptional mileage without compromising on performance. With the launch of pulsar 220 edition Bajaj Auto has raised the bar in performance biking segment quite a few notches higher - the Pulsar 220 has now evolved to become the fastest Indian bike with the amazing top speed of 144 km/hr. Inorganic growth The company's main emphasis is on the small engine, volume segment of the global market. Thus even as European two wheeler players shift production to India or China to overcome high cost, opportunities for meaningful inorganic growth abroad remain limited. The company has its assembly line in Indonesia as it constitutes the biggest consumer of two wheelers among ASEAN nations. The company has presence in almost whole world as its products have a large market in USA, Argentina, Colombia, Peru, Bangladesh, Sri Lanka, Italy, Sweden, Germany, Iran and Egypt. The company does on emphasize on mergers and acquisition to reach to new markets. Instead it focuses on improving its distribution networks. It built distribution networks over 60 countries worldwide and multiplied the exports from 1% of total turnover in Fiscal 1989-90 to over 5% in Fiscal 1996-97.
Shorter product life cycles
In auto mobile industry the product life cycle is very small. It forces Bajaj auto to launch new products in the markets constantly within the period of 1-2 years. Bajaj auto periodically upgrades its existing products and come with new and exciting features in the market. In the span of 12 years it launched almost 13 different products in motorcycle segment. In almost every year it upgrades pulsar and added new exciting features to it which attracts the attention of customers.
Environment/legal/Economic factors: When in 2001 Bajaj launched pulsar, the whole world was suffering from slow growth rate and many financial institutions have predicted recession. But in emerging economies like India and China, growth was still on move due to domestic demand and also cheap labor rates that these countries provide. Also these countries were helping big institutions for developing industries. So taxation was not a restriction for bajaj.Investment levels in India were on move from both foreign hands and locally from India also. GNP of India was increasing at 6-6.5% per annum. So as a reputed brand Bajaj had no pressure from government regulations. As it was an Indian brand, employment opportunities were also high, as all the manufacturing and other operation were to be held in the country itself. But other legal factors including interest rates and liquidity in market decided the sales. As if the interest rates increased less number of people will buy a vehicle on loan and it will definitely affect the sales. So a slow down in market was a intriguing factor for Bajaj who launched a new vehicle with different expectations (to capture youth market). Socio-cultural factors: India as having the second largest populated country in world had an advantage of demographic dividend. So bajaj launched a bike with a sporty look to attract the youth of country with a national touch saying “hamara bajaj”. The average age running pulsar 5 years after its launch was 24 years. Through this step bajaj tried to capture the most emerging age group of country having the most possibility of growth. Sport look with an added style element and was the trend bajaj tried to establish to gain market share.
Customer’s analysis
Opinion of the customers with respect to comfort levels in Driving
Opinion
Response Level
Percentage
Yes
90
60%
No
60
40%
Interpretation:
From the above findings it is found that the comfort level of the Bajaj Vehicles is mostly liked by the 60% of the survey.
Opinion of the customers with respect to level of Performance level of BAJAJ Bikes
Opinion
Response Level
Percentage
Yes
49
33%
No
101
67%
Interpretation: From the above findings it is found that the performance level of the Bajaj Vehicles is mostly liked by the 67% of the survey.
Affordability level of the Customers with respect to BAJAJ Vehicles in Nellore
Opinion
Response Level
Percentage
Highly Affordable
38
25%
Affordable
70
47%
Neither Affordable/Nor Un-Affordable
22
14%
Unaffordable
10
7%
Highly Unaffordable
10
7%
Opinion of the respondents with respect to the Pickup of the Bike
Opinion
Response Level
Percentage
Excellent
39
26
Very Good
57
38
Good
34
22
Poor
10
7
Very Poor
10
7
Interpretation:
Majority of the respondents said that the pickup of the Bajaj Vehicles is mostly liked by the 38% of the survey.
Opinion Towards the post service given by the Company
Opinion
Response Level
Percentage
Excellent
53
35
Very Good
47
31
Good
35
23
Poor
10
7
Very Poor
5
4
Interpretation:
From the above findings it is found that the post service of the Bajaj Vehicles is mostly liked by the 35% of the survey.
Aspects liked by the Customer towards Bajaj Vehicles
Aspects
Opinion Levels
Percentage
Engine Capacity
8
5
Mileage
34
22
Style
82
54
Comfortable
6
4
Affordable
20
13
Interpretation:
From the above findings it is found that the aspects of the Bajaj Vehicles are mostly liked by the 54% of the survey.
Competitor’s analysis:
As can be seen above, Hero Honda is one of the market leaders in two wheel automobile industry followed by Bajaj Auto ltd.
SWOT Analysis: STRENGTHS: •
•
•
•
• • • •
• •
Pulsar features India’s First Oil Cooled Engine which delivers maximum power making it most powerful engine offered by Bajaj. New Pulsar also provides Digital Speedometer, Self Canceling Indicators which is for the First time in this segment in India. Fuel efficiency: Pulsar 200cc delivers an impressive mileage of 38.2 kmpl in city as compared to Karizma which delivers 30 kmpl in city. Customer Base: In past decade Bajaj has established a strong base amongst its customers. Highly experienced management was also an advantage. Cost efficiency in production High economies of scale. High economies of scope. Long term commitment for low price and high quality goods from suppliers. Focusing on market segments with cost advantages. Entry barrier by low cost structure.
WEAKNESS:
•
Style and Design: PULSAR 200cc and 220cc derives their styling from there previous version Pulsar 150 Dts-i and 180 Dts-i. Pricing: Bajaj 220cc (Rs 82449 basic price) is costlier than karizma (Rs 78000 basic price). Product only for middle class people. Not a global player in spite of huge volumes in sales. Only domestic operation and does not compete in global markets. Not diversifying in spite of available synergies. Not working on creating entry barriers.
•
No technology up gradation in other sector despite cost cutting
•
•
• •
•
•
OPPORTUNITIES: •
If Bajaj derive new styling, shape, design for pulsar 200cc and 220cc then they can attract more customers.
•
Taking into consideration the reviews of the customers regarding the “fairing” of 220cc and making the needful changes will be an opportunity to capture an even larger share of the 200cc+ segment. More growth prospects. Untapped global market. Growth by invention and innovation of new product.
•
Having adaptive- entrepreneur mode of strategy making
•
• •
THREATS:
•
The biggest threat is faced from the goodwill of herohonda bikes in this segment who are the “Four-Stroke Two Wheeler Ruler” of the Indian bike market. Certain technical faults in the bike design which are potentially dangerous to the rider’s safety can be disastrous to the image of the bike. Also certain advertisement faults, according to researchers, in the pulsar 200CC model were also a fault. The competition catches up innovation in no time. Threat from new entrant. Threat of cheap product by international market. Margin getting lower and lower.
•
Loss of market share rapidly
•
•
•
•
•
Analysis by BCG model BCG model tries to explain the situation the company is working upon, under current circumstances, Bajaj Auto has high market share and low business growth rate. The company has low growth rate because it has not been able to increase its market share and failed to expand its operation. According to BCG model the current situation is like “Cash cow”, i.e. it has strong competitive position but low growth potential, and should maintain a strategy so as to maintain the present market share while using competitive advantage to increase cash flow to be used in high growth segments. The company must work towards being a “Star”, i.e. increase it growth rate so as to be a leader in market.
Marketing Strategies applied by the company:
NEW BRAND IDENTITY:
Bajaj Auto unveiled the new corporate identity on the 15th of January at the Auto Expo 2004, New Delhi. The white and blue reverse hexagonal symbol with Bajaj Auto in small lettering, which stood in good stead for Bajaj Auto for many decades, finally paved way for a refreshing new look symbol with the Bajaj logotype in capital letters. The new identity arrives at a time when Bajaj Auto has successfully metamorphosed into a major motorcycle manufacturer with proven credentials in award winning Pulsar twins and also proved its technological capability with the introduction the revolutionary Digital Twin Spark Ignition (DTSi) technology. The new visual identity of Bajaj Auto emanates from the confirmation of core values, which Bajaj has identified as its brand values. The Brand essence for the new Bajaj has been defined as "Excitement". Excitement engineering will deliver and inspire confidence in to various stakeholders like Bajaj has traditionally done. Bajaj promises to live its essence through a set of five Brand Values of Learning, Innovation, Perfection, Speed and Transparency . The change in Identity is a part of the ongoing changes happening at Bajaj. At a time when Bajaj has state of the art manufacturing infrastructure, has an enviable distribution and service network, has created a benchmark R&D facility and at a time when the customer has changed in terms of its exposure to quality and style, the change in Identity will help invite a paradigm shift in consumer perception of the company. The traditional hexagonal symbol has been replaced by an open abstract form of stylized B, the "flying B" as it has been named represents style and technology. It also has a strong association with the heritage of Bajaj since the external form has a hint of hexagon. "Flying B" form denotes speed and open form denotes the transparency. Bajaj has adopted a new brand line of "Inspiring Confidence". In whatever the company does it seeks to inspire confidence in its audience. Bajaj has traditionally enjoyed tremendous consumer
support and plans to consolidate and move ahead on this. The Brand line appears below the Logotype in a script font. This font is to represent learning values at Bajaj and that Bajaj as a brand moves closer to customer. The Identity has a fresh new Blue color. This Blue represents stability and strength of Bajaj. Blue also represents high technology and precision engineering. The new Identity presents a futuristic face of the new global Bajaj. Elephant Design has been working with Bajaj on creating and implementing the new Bajaj identity. The new brand will manifest in all consumer and employee interfaces. Bajaj Auto has been using adaptive mode of strategy making, i.e., concerning with problems in hand rather than developing long range strategy. It can change its strategy making mode to adaptive entrepreneur mode to achieve further growth along with avoiding risk. The company is not working for making an entry barrier for new entrant, for example if Chinese company producing cheap two wheeler comes into market, Bajaj Auto will lose its only main strength on which it is based upon. Bajaj should focus on customer satisfaction and building strong consumer base not only on the basis of cost but also in respect to quality products catering to higher segments which was earlier ignored, this would allow company to build goodwill and nationwide recognition of its products and hence creating taste and preference for its product. Also if other companies merge with each other or there is foreign collaboration, it will lead to rise in competition and Bajaj Auto has not worked to make entry barrier to stop such kind of rise in competition and neither have any other capabilities rather than cost cutting so as to able to withstand the competition. The company must work towards developing another key success factor so as to eliminate future threat occurring to compan y. Also the company is not working towards invention of new products, if any other company comes up with a new product; the company will not have a stand on it as it has earlier not invested in any kind of R&D, which would make it impossible to acquire any new invention. Threat is rising to the company by existing company as the market share of its competitors is gradually increasing which posses threat to company’s existence as market leader
ADVERTISING STRATEGY
Bajaj is always known for its outstanding ads over the period of time. Since its inception, Bajaj has come out with variety of ads and were always successful in their advertisements. Scooters were well known by the brand name of Bajaj. Be it any scooter, one used to recognize it by the brand name Bajaj. This was the identity a decade ago which the Bajaj has still maintained. Bajaj is always known for its ads without well- known brand ambassadors which is again a plus point to its cart as it saves a huge cost in terms of brand ambassadors unlike Hero Honda and TVS. Prior, Bajaj used to convey the feeling of ‘Indianness’ in its ads. With a punch line ‘Hamara Bajaj’ Bajaj drove into everybody’s hearts and the title song of ‘Naye Bharat Ki Naye Tasveer’ added a great value to its mo-bikes and scooters. A couple of years back, Bajaj had introduced an advertisement which promoted all the different ranges it had, wherein they had shown each product they had with a feeling of “Indianness”. Example: Eliminator passes-by a rangoli and drives slowly sideways without disturbing it. People on boxer pass-by a temple and bend their head to give a little offering. Such ads had revealing Indian culture had a great effect on Indians and Bajaj was successful in most of its ads. But recently, Bajaj had changed its brand logo along with its punch line i.e. ‘Hamara Bajaj’ got converted to ‘Inspiring Confidence’. The reason for this change as told by the company officials was to keep pace with the new technologies in the fast moving world. Even though it had changed its punch line, it didn’t have much effect on its brand image. A year back, Bajaj introduced DTSi technology upgrading its always successful PULSAR 150cc and 180cc. Though Bajaj had changed its identity it still dominates for its creativity in ads.
PULSAR 150cc (Definitely Male)- The concept of Definitely Male was well accepted by the people and Bajaj came out with some astonishing ads. Though the DTSi technology was new, people accepted it very well. It easily conveyed the message it wanted to. The following picture strips conveys the advertisement: DTSi came out to be a good one with proper publicity advertisements and that too without any highly paid brand ambassadors. After this ad was successful Bajaj came out with a second ad wherein a man is shown performing various stunts on his DTSi Pulsar. Even this one was an outstanding one.
Pulsar is one of the favorite brands both as a bike rider and as a marketer. This bike 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.
Before the launch of Pulsar, Indian bike market was divided broadly into Economy, Executive and Premium Bikes. In 1999 Hero Honda created a new segment of 150 cc performance segment with its CBZ. But Pulsar came and gave a new life into the Performance segment. Although not a pioneer, Pulsar made the performance segment one of the fastest growing segment in the two wheeler market.
Specific campaigns run:
It was not only the bike's performance that triggered the brand becoming an icon; a major part of the success was due to the classic advertising campaign by O&M. According to agency, the birth of the "Definitely Male” campaign is interesting. The creative honchos found the new product from Baja j distinctly different. It was Ba jaj's first bike without Kawasaki label. The new bike was an R&D and design marvel. Pulsar was designed by the renowned design house Tokyo R&D. O&M knew that the communication of this brand should also be different. Starting with lot of ideas, O&M stuck upon the Big Idea of India's He-Bike. Although lots of bikes take the persona of Macho bikes it was more oriented towards being "sexy". The Big Idea was to position the bike as World's f irst bike endowed with a Sex (Gender).Thus born the classic campaign of all times "Definitely Male". The campaign together with the design and performance catapulted the brand into stratospheric sales level. Bajaj targeted the 18-24 with Pulsar but later found that the brand appealed to a much older audience. This helped Bajaj to change its target audience to 21-35 years. Unlike its old ways of doing things, Bajaj did not rest with the laurels. It knew that Pulsar is the golden key to control the entire bike market. Hence Pulsar got undivided attention from the company. In 2003 another miles tone event happened in the product lifecycle of the brand. Bajaj launched its new technology DTSI. DTSi stands for Digital Twin Spark Ignition which delivered more power and efficiency. The increased performance of the brand took Pulsar to greater heights. 2004 and 2005 saw some cosmetic changes in the brand which excited the customers and thus cementing Pulsar's position in the market.
Target segments and positioning: Over the last five years, the Company’s management has been communicating about the change in consumer preferences for motorcycles. The gist of it has been: Indian consumers - urban as well as a rural - have become better off. They have been enjoying greater purchasing power than before; and have begun to demand greater design inputs, better looks, feel, comfort and adventure for the products that they buy and are willing to pay for these attributes. As a consequence, the consumers are upgrading. Across the board, a motorcycle is becoming a lifestyle statement. Boring and fuel efficient no longer works; exciting and fuel efficient does – rapidly so, in ever increasing strides. In addition, there is a growing body of motor-bike users who want to purchase powerful models for the pure thrill of biking. The data prove this very clearly. Consider the following product segmentation: Commuter Standard (STD): Comprising Bajaj Auto’s Platina; Hero Honda’s CD series; and • TVS’ Star. Commuter Deluxe (DLX): The key brands here are Bajaj Auto’s Discover; Hero Honda’s • Splendor, Passion and Glamour; Honda Motorcycle & Scooters India’s (HMSI’s) Shine; and TVS’ Fiero. Sports: This includes Bajaj Auto’s Pulsar; Hero Honda’s CBZ, Hunk and Karizma; HMSI’s • Unicorn and Stunner; TVS’s Apache; and Yamaha’s R15 and FZ16.
Pulsar came in two variants: 180 cc and 150 cc where 180 cc excited the performance bikers, 150 cc was for the mileage conscious ones. The 150cc variant took lot of customers away from the executive segment to the performance segment. The brand had its share of marketing flaws also. According to reports, Bajaj reassigns its media duties to two brands O&M and Leo Burnett, every six months. When DTSI was launched, the creative duty was assigned to Leo Burnett. Leo Burnett did a big mistake on the brand by changing the positioning of "Definitely Male" to "Digital Biking". Although the ads were successful in conveying the technological superiority of DTSI and making that acronym popular, it deleted the most successful tag line from the brand's elements. After ruling the premium bike segment, Bajaj is taking their brand to another level. Bajaj recently launched Bajaj Pulsar 200 Dtsi to take on the competition from Hero Honda and the like. The new Pulsar boasts of spruced up engine, new digital console and new style. Pulsar is definitely getting better. Pulsar 200 is being launched with a new campaign revolving round the concept of Free Biking. Free Biking (as defined by the brand Pulsar) is all about tackling obstacles. According to company officials, its about how you ride rather than where you ride. The ads made by O&M are filmed at Havana Cuba (expensive). Set to pulsating Arabian music, the ad shows how two Pulsar riders discover new route when their main way is blocked by traffic jam.
One word to describe this ad is HYPERBOLE and too much of it. What I feel is that the Big Idea for Free Biking is good but execution is ordinary. What made Pulsar a super brand was its ability to come out with different disruptive campaigns? But in the case of Pulsar 200, it is a sort of cut copy paste from some Hollywood movie (James Bond). More over, the Big Idea is also not properly communicated through the visuals. Also most of the time I was trying to make out some meaning out of the background song, later to find out that it was Arabic. Now every one is waiting for the new Bajaj 220 cc DTSFI which will redefine the bike segment again. Sadly Bajaj is no longer using its blockbuster tagline "Definitely Male" but instead is using the corporate brand tagline "Distinctly Ahead". Bajaj earlier had another corporate tagline "Inspiring Confidence " when it completely redesigned its corporate logo and brand. But market researchers still strongly believe that not using "Definitely Male" is a gross injustice to the brand itself. That tag line and positioning has lot of fire with it and except for the initial two campaigns, Pulsar was not able to build on its Definitely Male Platform. But what ever they say and what ever the agency communicates through the ads, Pulsar has made itself into a position of strength. It has brand equity so huge that what ever that comes out of it will be lapped up in no time. The success of Pulsar 200 DTSI is no longer dependent on the quality of ads but on the performance it delivers. This brand shows the power of brand equity where customers buy, irrespective of lousy ads......
New marketing task: The executive segment is 65% of the total bike market and the sports segment is about 17%, and Bajaj would want to increase the size of the pie (the sports segment). Pulsar has already seen an 80% jump in sales in second half of 2009. The Q2 2009-10 average sales were 45,000 units per month as compared with 25000 units per month in H2 2008-09 and have reached an overall share of 50% in the sports segment. According to MILIND BADE, HEAD MARKETING - TWO-WHEELERS, BAJAJ AUTO, Earlier, they were looking at Bajaj on the whole as one brand – and under that they were offering several variants. They were doing a lot of experiments and launching several sub-brands, out of which some worked, some didn’t – and some of them were eventually taken out of the market too. While the time they had believed that Bajaj Auto is one brand, over the past 18 months they realized the fact that a consumer buys a Pulsar or a Discover because it is a Pulsar and Discover and not because it is a Bajaj Pulsar or Bajaj Discover. “
Now, their products are available with a very unique proposition and they have a very specific target segment (for each product). Earlier, is it the advertising strategy for Platina, Discover or a Pulsar, they all looked very similar as they believed that they are from Bajaj Auto. But if you analyze the advertising strategy for a Pulsar or a Discover now, they are very different in their approach. If you look at search for Bajaj Pulsar and Pulsar separately on any search engine and compare the number of hits, you’ll realize that hits for Pulsar are higher than for Bajaj Pulsar. In all, Bajaj was obviously incidental to their sales.
The marketing task they had for Pulsar was to actually take the ‘bike’ part out of Pulsar and add the word ‘irreverent’ – more so as Pulsar is already known as a youth oriented brand. In short, they wanted the Pulsar to be known as an irreverent brand, where the bike was incidental. Stunt Mania is an attempt that they did, as they were/are also creating an equivalent of a marketing ecosystem. Gone are the days where brands had to fight it out alone for a similar target group. Brands like Pulsar, MTV, Levi’s or Mountain Dew for that matter could easily work together for the better of each other – and they are looking at working with each other. The idea of starting Stunt Mania came from the insight that if you type Pulsar in YouTube, most of the videos that you’ll see will be of stunts. It was then that they thought why not democratize ‘stunting’ in this country and make it street legal, but in a safe manner. It is very difficult to say who has benefited whom (reality shows or Pulsar). However, within this period, the average age of Pulsar drivers has dropped from 26 years to 24 years. For a brand like Pulsar, this is very critical. So basically, they are trying to work with various brands that are non-competing in nature.
Summary
The company has mainly been considering its cost cutting technique as it key success factor and has derived all other advantage from it such as entry barrier and creating a strong consumer base. The company has ensured cost cutting by up gradation of technology in view of cost cutting along with maintaining a strong supplier relation. Still the company has various threats occurring such as threat from new entrant, innovation and invention of new products, cheap international market, margin getting lower and loss of market share rapidly. The company has to develop its expertise in some other sector rather than considering only cost cutting techniques. The company should go for developing new technology such as innovation and invention of new product, technology regarding new designs etc. The company must analyze different market environments and direct its actions accordingly. It should look at legal environment, socio economic environment and technological environments prevailing in the market. Learning
From our project we got insight about many aspects of marketing. It is important for a company to know about its rivals by various competitor analyses tools so as to gauge its degree of rivalriness. Also we can see the importance of taglines and to maintain it, rather than not going for changes unless necessary. We can also see that product technology is important or can be said that it is important for company to develop its marketing mix according to its target market and also focus on its core competencies i.e. cost cutting techniques and product innovation in our case.
