BAJAJ PULSAR

Pratik BagweAkshay IkkeTejas JadhavSwapnil PawarPranav SharmaAditya Shetti

Contents• Situation analysis • Company and Competitor Analysis • Customer Analysis

• Product Strategy • Supporting Marketing Programs

Indian Auto Industry – at a Glace

India is the 2nd largest two-wheeler market in the world

4th largest commercial vehicle market in the world

11th largest passenger car market in the world and is expected to become the 7th largest by 2016

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Bajaj Auto – at a GlaceMarket Capital : Rs 41,554.22 Crores (Aug 2010)

Total Income : Rs. 11900+ Crores

One of the oldest and the largest manufacturer of automobiles in IndiaIndia's largest and the world's 4th largest two- and three-wheeler makerBajaj Auto makes motor scooters, motorcycles and the auto rickshaw. Changed its image from a scooter manufacturer to a two wheeler manufacturer

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Bajaj Auto – at a Glance2009-10 has been a record year for Bajaj Auto in terms of highest ever sales, exports, profits and margins.

Net sales and other operating income grew by 35% to Rs.119.21 billion.

The year saw record sales of 2.85 million units – over 2.5 million motorcycles and 340,937 three-wheelers.

Exports rose by 15% to 891,002 units.

Profit after tax (PAT) grew by 160% to Rs.17.03 billion.

Surplus cash and cash equivalents in the Company’s balance sheet as on 31 March 2010 stood at Rs.32.6 billion,

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SITUATION ANALYSIS• The motorcycle market is analyzed in three categories:

i) Entry or the price categoryii) Value or the executive categoryiii) Premium or the performance category• Segments as per power:

i) The 150+ cc segment (Pulsar, Avenger)ii) The 125cc segment (Discover DTS-i)iii) The up to 110cc segment (CT 100, Discover 110cc)

Key Players in Market

• Hero Honda Motors India Limited• Bajaj Auto Ltd. (BAL)• TVS Motor Company• Honda Motorcycle Scooter India (P) Ltd.• Yamaha Motors India Pvt. Ltd.• Suzuki Motor Corporation• Royal Enfield Motors India Limited

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Category AnalysisAggregate Market factors Demand Drivers

• Increasing disposable incomes• Low operating cost • Higher fuel efficiency of New-generation motorcycles• Greater reliability resulting in low maintenance cost• Low interest rates translating to low financing and acquisition costs hence greater

affordability.• Inadequate urban & rural public transportation infrastructure• Ease of use in congested city centers

Key Market Trends• Eclipse of scooter segment• Emergence of new motorcycle sub-segments• Upto 110cc• 125 cc (fastest growing)• 150cc+• Shrinking product life-cycles

Competency Analysis SWOT Analysis

Strengths:• Highly experienced management• Product design and development capabilities• Extensive R & D focus• Widespread distribution network• High performance products across all categories• High export to domestic sales ratio• Great financial support network (For financing the

automobile)• High economies of scale• High economies of scope

Weaknesses:

• Hasn't employed the excess cash for long.

• Still has to establish a brand to match Hero Honda's Splendor in commuter segment.

• Not a global player in spite of huge volumes.

• Not a globally recognizable brand (unlike the JV partner Kawasaki)

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Opportunities:

• Double-digit growth in two-wheeler market.

•Untapped market above 180 cc in motorcycles.

•More maturity towards higher-end motorcycles.

•The growing gearless trendy scooters and scoottee market.

•Growing world demand for entry-level motorcycles especially in emerging markets.

Threats:

•The competition catches-up any new innovation in no time.

•Threat of cheap imported motorcycles from China.

•Margins getting squeezed from both the directions (Price as well as Cost)

•TATA Ace is a serious competition for the three-wheeler cargo segment.

Consumer Analysis• The customers can be segmented into three price points

based on the basis of annual income: Price, Deluxe and Premium.

Process includes : • Problem recognition• Information search• Evaluation of alternatives• Purchase decision• Post Purchase evaluation

Macro Socio Economic Factors

• Cultural values• Social factors• Personal factors• Government Regulations (taxes, levies, subsidies, import

duties)

Value Proposition •Digital speedometers•LED tail lamps•Split seat for better riding and sitting comfort.•Fuel and battery charge indicators•First bike in India with large 33 mm front fork for better shock absorbing ability. •NitroX-Nitrogen assisted rear gas shockers give cushion feel

Problems• New entrants in the market such as Honda and Yamaha have been

eating up the market share of Pulsar by launching new models and variants.

• Low mileage is another problem of powerful bikes. Fuel prices have increased dramatically over the last few years in India which has customers thinking twice whether to opt for a high performance bike or a 2 wheeler which offers good mileage.

• Low-cost bikes still seem to be the crowd favourite in rural markets.

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Objective• Bajaj Auto is to cater the market needs of transportation by

providing 2 wheeler & 3 wheeler vehicles. BAL has been producing the catalogue product to cater to the changing market requirements. Based on the customer feedback, improvements are being made continuously in the existing products.

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High Quality

High price

Low Quality

Low price

Points of Difference

• Style • Technology • Pulsar was the first sports bike launched in India• Innovative• Perfection

Points of Parity• Pricing • Fuel consumption

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STPD Analysis

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Target GroupYoung boys in the age 18-30 middle

class

PositioningThe No.1 Sports bike

in India

DifferentiationPowerful engine and

good pickup

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Pulsar 220

Product

• Born as the Fastest Indian, the Pulsar 220F is a performance machine for the true enthusiast.

• It is a great bike for people looking for power and a comfortable ride on the Indian roads.

Place

• For Bajaj Auto, the supply chain encompasses the process from vendors to the final customers via manufacturing. Therefore, the company’s supply chain involves as much the vendors and the procurement – to – payment logistics, as it does the manufacturing to selling processes, or the order to cash system.

Price

• The price of Bajaj Pulsar 220F depends on the city. For Goa, Ex – Showroom price is 83, 450 whereas the On Road price is 90,000 (Approx.)

• Premier segment bikes which is reflected by its pricing.

Promotion

• Bajaj’s dealers had been selling scooters; they had little idea how to sell motorcycles. So the entire dealership network was trained to sell motorcycles.

• The introduction of Pulsar was executed with a completely different approach and a “Definitely Male” positioning.

• The concept of “Definitely Male” was well accepted by the people and Bajaj came out with some astonishing ads.

Other Promotions

• Bajaj completely revamped its identity, gave up the “Humara Bajaj” umbrella and came up with a completely new enhanced positioning focusing more on the technology and experience.

• With a new, sharp brand logo, Bajaj pressed itself as “Digital Biking” and “Distinctly Ahead”.

• Pulsar Mania• MTV Stunt Mania • GhostRyderz • Pulsar Licence