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Motorcycles

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Contents

Indian motorcycle industry: An overview

Market structure

Marketing strategy of Bajaj Auto & Hero

Honda Product mix

Corporate branding

Brand analysis: Bajaj Pulsar vs. Hero

Honda CBZ

Direct comparison

4P analysis

Segmentation, targeting and positioning

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Indian Motorcycle Market

Market segments

Competitive structures

Demand drivers

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Market Segmentation by Prices

Segment Price

Rs

Brands / Models

Standard 30,000 to

40,000

Platina and CT100 (Bajaj), CD Dawn (Hero Honda), Boss

and Challenger (Kinetic), Star (TVS), Crux (Yamaha),

Heat (Suzuki)

Executive 40,000 to

50,000

Splendor, Passion, Glamour (Hero), Discover (Bajaj),

Victor, Centra (TVS), Libero, Gladiator (Yamaha),

Freedom (LML), Velocity (Kinetic)

Premium 50,000 to

65,000

Pulsar (Bajaj), CBZ (Hero Honda), Unicorn (Honda),

Apache & Fiero (TVS), Zeus (Suzuki), Graptor &

Beamer (LML), GF Series (Kinetic)

Super premium Above65,000

Karizma (Hero Honda), Comet and Aquila (Kinetic)

Cruiser Above

65,000

Avenger (Bajaj), Enticer (Yamaha), Bullet (Royal Enfield)

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Competitive Structure

Source: Enam Securities Analyst Report

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Demand Drivers

Rising purchasing power

Individuals are getting richer, i.e. moving up

Greater number of individuals at each level as well

Aggressive product campaigns Poor public transport

Fuel prices

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Marketing Strategy Adopted by Bajaj

Auto and Hero Honda

Market Trends

Corporate Branding

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Bajaj Auto and Hero Honda:

Market Trends

Industry expectations

Market expected to grow by 12-14% in 2007

New segments emerging at the top of the pyramid

Top segments likely to be the growth drivers

Industry strategy

Capture new consumers at especially the standard segment and

then upgrade

Consolidation: Strengthen strong segments

New Opportunity: Increase share in other segments

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Marketing Strategy

Bajaj Market leader in premium segment

58% of sales (by volume) from standard segment

Strategy: Strengthen premium segment

Become a major player in the executive segment

Hero Honda

Market leader in executive segment

96% of sales (by volume) from executive segment

Strategy: Strengthen executive segment, become a major player

(once again) in the premium segment

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Bajaj Auto and Hero Honda:

Corporate Branding

Hamara Bajaj

Desh ki Dhadkan

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Bajaj Auto and Hero Honda:

Corporate Branding

Attribute Hero Honda Bajaj

Brand values Desh ki Dhadkan : Part of everyIndians daily life; the pulse of the nation

Confidence and trust cutting across

consumer segments; strong connection to

nationalism

Hamara Bajaj : Shift from scooters

to bikes; connecting the consumer to

the company

Using cricket to create a connection

between nationalism and Bajaj

Events

shaping brand

values

Success of the passport program

Sponsoring sports events (2003 Cricket

World Cup, Indian Open Golf)

Celebrity endorsers : Hrithik Roshan

Emergence as a world leader

Success of scooters a scooter often

came as dowry, etc for life

Celebrity endorsers : Jackie Chan

Bangalore Police using Bajaj Pulsars

Promotional

campaigns

CD 100 : Fill it, shut it , forget it

Passion : Born in a studio, not a factory

CBZ : You cant catch something you cant

see

Karizma : Jet Set and Go

Caliber : Hoodibaba

Pulsar : Definitely male

Avenger : Feel like God

Discover : Discover the Jadoo

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Bajaj Pulsar vs. Hero Honda CBZ

Direct ComparisonMarketing Mix (4Ps)

Segmentation, Targeting, Positioning

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Bajaj Auto and Hero Honda: Direct

Comparison

Attribute Bajaj Pulsar Hero Honda CBZ

Mileage 59.6 km/litre 53 km/litre

Price Rs. 56,000-59,000 Rs. 54,000-63,000

Engine size 150cc/180cc 150cc

Styling Bulky macho look; sharp lines;flat-seat; arrogant

Full, handsome look; smooth edges;

stepped-seat; attractive

No. of SKUs 2 1

Colours 4 (Black, Blue, Red, Silver) 5 (Black, Blue, Red, Silver, Green)

Acceleration 0-60 km/h in 6.25 seconds 0-60 km/h in 5.31 seconds

Fuel tank size 18 litres 13 litres

Credit schemes Several credit schemes, oftengoing up to 36 months

Limited credit schemes. HH emphasis of

shorter credit cycles

Weight 132kg 130kg

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Marketing Mix of Bajaj Auto and

Hero Honda

Marketing Mix Parameter Bajaj Pulsar Hero Honda CBZ

Product Product variety 2 Stock keeping units 1 Stock keeping unit

Perceived quality 83/100 in TNS 2004 Customer

Satisfaction Study

79/100 in TNS 2004 Customer

Satisfaction Study

Services 6 Service Coupons for up to10,000 km. or 2 years whichever

is earlier.

6 free and 6 discounted servicecoupons for up to 10,000 km or 1

year which ever is earlier.

Price List prices 150cc Rs. 56,000180cc Rs. 59,000

Non-start Rs. 54,000

e start Rs. 63,000

Promotion Sales promotion Gifts like DVD player Gifts like mobile phone

Passport scheme

Public relations Sponsorships in college festivals

(free test drives, sales persons)

Sponsorships of sports events like

Cricket World Cup and Indian

Open Golf

Place Channels Mainly through franchisee retailoutlets

Mainly through franchisee retail

outlets

Coverage Throughout India Throughout India

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Bajaj Auto and Hero Honda: Segmentation,

Targeting, Positioning

Process Bajaj Pulsar Hero Honda CBZ

Segmentation Demographic (Age, Income, Family Size, Social Class) Psychographic (Lifestyle, Personality)

Geographic (Region, Rural/urban)

Behavioural (Use, Loyalty)

Targeting Young, Entire Middle ClassNewly employed and college going

Urban + Semi-Urban

More than just a vehicle

Young, Middle and Upper Middle Class

College going, image-conscious

Urban

Adds to ones persona

Positioning Bike with great looks Macho, Masculine, Aggressive

You are a stud, that is why you ride the

Pulsar

Sports Bike

Handsome, Cool, Attractive

You become a stud by riding the CBZ

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