Description
it includes intro, swot analysis ,competitor analysis etc
Report on Marketing Strategy of Bajaj Pulsar 150cc
Submitted By: Harsh Sachdeva (Roll No. 31) Ankit Sune a (Roll No. !) Rakesh Roshan (Roll No. "#)
$%$&'()*$ S'++AR,
We identified Bajaj Auto as the marketing company of our choice for the following project. Bajaj Auto group was founded in the year 1945 and has been among the front runners in the motorcycle industry e!er since. "his !ery fact talks !olumes about the company since only the best of the firms sur!i!e such a long time at the top. #uring the $%s& '%s and (%s there was a 1% year waiting period for its products. "he company only had to produce its )uota. *arketing or sales was not too much of an issue for them. Also the company+s owner was infamous for being part of the anti liberali,ation lobby called Bombay -lub. .owe!er the firm faced a major crisis in the 9%s and the early years of the new century due to increased competition from both foreign and domestic markets. .owe!er Bajaj came out only stronger with the competition and hardly depended on foreign help on this account. And the product& which did this turnaround possible& was /ulsar. /ulsar is e0emplifies the fighting spirit of Bajaj. 1t is a classic e0ample of an 1ndian company of the pre liberali,ation era& adapting itself to the changing scenario and coming out on tops. Another interesting fact is how liberali,ation and embracing the change can work wonders for a firm& which was one of the most skeptical of liberali,ation policies of the 1ndian go!ernment.
"he following project is a detailed marketing analysis of the product Bajaj /ulsar and its !ariants in the two wheeler market. "he project first of all focuses on the marketing history of Bajaj /ulsar and its 2W3" analysis. 4arious internal and 2
e0ternal factors were taken into consideration while analy,ing. "hen we go on to analy,e the consumer beha!ior for /ulsar regarding purchase& decision making and buying roles. "he third section focuses on the competitor analysis of Bajaj /ulsar& their !arious strategies& acti!ities and status to understand /ulsar+s competiti!e scenario. .elp has been taken for analysis from some consumer sur!eys from prominent sites and a small sur!ey done by us.
"he project gi!es insights into !arious other topics. 1t talks about the shift in the trend towards motorcycles in the 9%s. 1t also talks about the process of liberali,ation and how it affected Bajaj as a company. "he change in the marketing strategies of Bajaj according to the times& how /ulsar succeeded in achie!ing a turnaround for Bajaj are also discussed. "he competitor analysis of /ulsar gi!es an understanding of the two wheeler market as a whole& how it is full of choices for customers and how many more companies are !ying to enter it.
"hanks& Ankit 2uneja .arsh 2achde!a 5akesh 5oshan
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(able o- &ontents
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ajaj Auto is a major automobile manufacturer based in /une& 1ndia. 1t is one of the major producers of two wheelers and three wheelers and ranks 4th in the world in terms of two wheeler production. 1t is also
B
planning a foray into the 4 wheeler market. "he firm in its initial years was into manufacturing scooters and auto rickshaws. 1t also enjoyed the lion+s share of the 1ndian two wheeler markets for a long duration of time. 1n the late 6ighties and early nineties the market made a major shift in the type of !ehicles on offer. 7ew competitors like 8amaha and .ero .onda came out with motorcycles& which were more powerful& better& looking and easier to handle. As such the consumers got attracted to motorcycles than scooters. Bajaj was slow to respond to the changing dynamics of the market and it+s market share started declining )uickly. Bajaj entered into a partnership with the 9apanese bike manufacturer :awasaki to produce motorcycles for the 1ndian market. 2till& it failed to garner any major share of the market. 1n the year ;%%1& 5aji! Bajaj& the scion of the Bajaj family came up with the idea of de!eloping a powerful& stylish& rugged motorcycle& which would be priced lower than the e0isting products. And thus /ulsar was born. 1t came out in two !ariants 15%cc and 1(%cc.
5
1.6
1H, BA4A4 5'2SAR7
Bajaj Auto started in the year 1945. 1t started selling imported ; < = wheeler !ehicles in 1959. "hey subse)uently obtained a license to produce ; < = wheelers. #uring the $%s& '%s and (%s there was a 1% year waiting period for its products. "he company only had to produce its )uota. *arketing or sales was not too much of an issue for them. Also the company+s owner was infamous for being part of the anti liberali,ation lobby called Bombay -lub. 1n the (%s and the 9%s many foreign players like .onda& 8amaha etc. came into play in 1ndian markets and played a significant role in easing out some of the 1ndian brands. Bajaj is probably the only 1ndian brand to emerge stronger out of the competition by de!eloping products on its own. /ulsar it e0emplifies the fighting spirit of Bajaj. 1t is a classic e0ample of an 1ndian company of the pre liberali,ation era& adapting itself to the changing scenario and coming out on tops. Bajaj changed its product strategy when it started concentrating on the bike market. /ulsar was the first indigenously de!eloped motorcycle by Bajaj for the 1ndian bike market and was the reason for the turnaround of Bajaj fortunes. *any 1ndian companies& in order to ac)uire the technical know how entered into joint collaborations with foreign companies e.g. .ero motors with .onda& >*> with 4espa& Bajaj with :awasaki etc. "hough Bajaj depended on :awasaki for its initial forays into the Bike market& now it has disassociated itself from :awasaki and has emerged as a truly ?lobal 1ndian brand. Another interesting fact is how liberali,ation can work wonders for a firm& which was one of the most skeptical of liberali,ation policies of the 1ndian go!ernment. 2o /ulsar as a whole has been a brand& which has brought major changes not only in the 1ndian *otorcycle 1ndustry but also in the Bajaj business empire.
6
1.3
SH)3()N8 (R$N0S (.1AR0S +.(.R&,&2$S
@irst let us analy,e the change in the preference of the 1ndian customers in the two wheeler industry. 1n the 9%s with growth in the a!erage income of the 1ndian middle class A the primary consumers of the two wheeler market and the increasing number of choices in the motorcycle segment& there came a gradual increase in the sales of motorcycles. "here were many other factors for this • • • Ad!anced technologies in the bikes >arger wheel A base there fore easy to na!igate rough 1ndian roads .igher mileage& less maintenance cost& tougher.
"he following table shows the increasing share of motorcycles in the 1ndian market in the 9%s.
Scooter 7o. '%9.'= (4%.1' 1&%==.5; 1&;;=.4= 1&=%1.%5 1&;$;.'% 1&=;5.(' 9%1.(( Motorcycle 7o. B ='9.%$ ;5.; 4';.5( ;$.' $5;.%1 ;9.5 (%9.5= =%.4 9'(.$( ==.% 1&1=1.=1 ='.; 1&=95.$$ 41.% ;&15$.%= 5(.% Moped 7o. 414.5' 45'.4' 5;=.'% $;'.%( $(=.'$ $4(.(4 $(1.9% $('.$4
Year 199= 1994 1995 199$ 199' 199( 1999 ;%%%
Total In '000 1&5%=.=$ 1&''%.;; ;&;%9.;= ;&$$%.%4 ;&9$=.49 =&%4;.(5 =&4%=.4= =&'45.55
Overall Growth $.4% 1'.'5 ;4.(% ;%.41 11.41 ;.$( 11.(5 %.(%
B 4'.; 4'.5 4$.( 4$.% 4=.9 41.5 =9.% ;4.%
B ;'.$ ;5.( ;=.' ;=.$ ;=.1 ;1.= ;%.% 1(.%
Source: (SIAM). No. Number of Units (in '000)
"his factor also played an important role in the success of 1ndian bikes like .ero .onda 2plendor& Bajaj /ulsar.
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+AR9$()N8 H)S(.R,
Bajaj entrusted the responsibility of communicating the brand !alue of /ulsar through media campaigns to 3<* who came out with the brilliant ad of C#6@171"6>8 *A>6D. /ulsar was initially targeted to 1( ;4 age group. "he youth wanted powerful& stylish bikes& which would suit their pockets and gi!e them good mileage. "he higher powered bikes in the market e.g. 56& -BE were too pricey& high on maintenance or low on mileage. What 3<* needed to do was to attract attention of the youth& more so since the target market for the product was !ery niche. And the punch line C#6@171"6>8 *A>6D did fire the youth+s imagination. 1t was !ery no!el of 3<* to come up with the idea of associating a motorbike with ?ender. /ulsar got positioned as the .e Bike of 1ndia. "he product was un)uestionably a success and Bajaj started increasing the breadth of its target market. Bajaj also refused to rest on its laurels. 1t constantly kept working on upgrading the product and came up with #"21 F#igital "win 2park 1gnitionG !ersion of the Bike in the year ;%%5. "he new technology helped the bike to gi!e better mileage. Also the styling was changed A styli,ed headlights& tail lights etc. "his time around& >eo Burnett managed the ad campaign. "hey came out with the new punch line C#1?1"A> B1:17?D keeping in consideration the new technology #"21. "he mega successful C#6@171"6>8 *A>6D slogan was gi!en away with. "his& though it communicated the introduction of the new technology to the consumers& missed the trick in positioning it as the classic .6 B1:6. We ha!e e0amples from Bike *anufacturers who ha!e de!eloped a uni)ue theme for their Bikes and kept their positioning constant o!er a long duration of time earning unparalleled Brand loyalty and e0clusi!ity such as .arley #a!idson < 5oyal 6nfield.
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.owe!er /ulsar had been so well established as a /roduct and its pricing and distribution were so strong that e!en indifferent promotional campaigns could hardly make too much of a difference to sales figures. 1n continuation of Bajaj+s strategy to come up with better products& the upgraded !ersion of pulsar was launched in ;%%' with digital console display and >6# taillights& which were a no!elty in the 1ndian market. 2ubse)uently Bajaj came up with newer !ariants of /ulsar ;%%cc < ;;% cc. "he ;%%cc bike had a lot of inno!ations like oil cooled engine& twin rails etc. "he bike was launched with a C@566 B1:17?D campaign shot in -uba by 3<*. "wo Bikers riding /ulsar ;%%cc bikes were shown ,ip ,apping their way through buildings and crowded streets of .a!ana. Bajaj tried to communicate that it does not matter where you are biking but how you are biking& when you are atop a /ulsar ;%%cc. "hough the message might ha!e been a bit comple0 for the typical 1ndian motorcycle owner& the freshness of the ad really populari,ed the bikes. "he latest in the series of /ulsar ads is the C/H>2A5*A71AD one& where 4 bikers perform !aried stunts atop /ulsar bikes. "hey ha!e been !ery popular and aim to e0tend the macho image of /ulsar bikes further.
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1.:
S1.( +A(R)% .3 BA4A4 5'2SAR
2W3" as of ;%%1 A year of launch 2"567?".2I • • • • • 4ery popular brand positioning F#6@171"6>8 *A>6G which helped )uite a lot in populari,ing the brand "he styling of the bike was a novelty and was in line with its macho image. Perfor ance A wise& it was much better than other bikes in the same segment. 1t had an i pressive ileage for a !"0 cc bike& about 45 plus& which was much more than other bikes of the segment like -BE etc. 2ince Bajaj was already in the scooter market beforehand& it could use those same resources for the distribution& sales and ser!ice for Bajaj pulsar bikes. Bajaj made after sales a priority in marketing.
W6A:7622I • 3ne of the major weaknesses of Bajaj pulsar was that it was an untested product# Before this Bajaj had ne!er come out with a product in this segment and so there was a lot of customer apprehension about the product initially. 3//35"H71"162I • • "he !"0cc ar$et was an underdeveloped ar$et at that time and so there was tremendous scope of growth. "here was a major opportunity of e%port for Bajaj pulsar& since that was the time when the e0port markets were )uite open and there was a large demand for 1ndian products in the foreign markets.
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".56A"2I • "he major threat for Bajaj /ulsar in the product category was &'() a product from the .ero .onda stable& which was an already established brand in itself. • Bajaj as a brand had an i age of producing rustic) Indian) old scooters. "his brand image could work against it when it was !enturing into selling bikes which were more internationally styled. • 8amaha and .onda were also planning to come up with similar products !ery soon.
2W3" as of the year ;%%( 2"567?".2I • @rom 15%cc it has di!ersified into !aried categories like 1(%cc& ;%%cc& ;;%cc& air cooled and water cooled. "hus it has a wide range to fit every poc$et# • • • 1t is a tried and tested product. 6!en bad ads don+t make a difference in its sales. 1ts sales are more or less word of mouth dri!en. Bajaj has constantly worked on the mileage taking it as an important part and has impro!ed it in the latest bikes. "here is a constant up gradation of the model going on e!ery time. 7ew features like #igital speedometer& >6# tail lights etc were introduced by Bajaj pulsar first of all in the 1ndian market. W6A:7622I • • "here are still so e technical proble s in the model& which are not sol!ed like the ?ear Bo0 etc. "here is not much of a product differentiation a ong the various odels of bajaj pulsar as they ha!e similar styling.
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3//35"H71"162I • To enter the higher end bi$e for Bajaj /ulsar products there. • • "hough Bajaj is the largest bike e0porter in 1ndia& it has to still enter any untested ar$ets# of its own) which it can use to le!erage Bajaj has an auto*financing ar ar$et & which is a high margin business. 1t is a !ery underde!eloped market in 1ndiaJ surely there would be a demand
its bike sales. 6.g. by pro!iding easy installments and other schemes. ".56A"2I • • &heap &hinese i ports and other copycats in foreign markets trying to make a dent on its market. "here is much more competition in the market for e!ery segment that /ulsar is in& than it was in ;%%1. 3ther Bike manufacturers ha!e also come up with !ery good products. • • "he bi$e business is increasingly beco ing a low* argin business . "he ad!ent of +ow*priced cars li$e ,-,O also would also ha!e a significant effect on the sales of pulsar bikes.
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B
A9A9 /H>2A5 has been one of the leading brands of motorcycles from the BA9A9 stable for the last ' years or so. 5ight from its inception in the year ;%%1& the bike has been the market leader in its segment
despite stiff competition from many others including one of the biggies who had the first mo!er ad!antage. 1t has stri!ed to be ahead of its competitors& through a mi0 of product and marketing inno!ation& solid performance bikes and good marketing strategies. "hroughout this it has maintained a loyal base of supporters& which ha!e clung to it for years. *arketing management of /H>2A5 has been highly successful as it has been able to ac)uire& retain and grow its customer base e!ery year. 1n this section we are going to analy,e the beha!ior of consumers of BA9A9 /H>2A5 in terms of their buying roles& decision making process and kind of purchase beha!ior.
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6.1
B',)N8 R.2$S
1n the '%+s and (%+s @rederick 6. Webster& 8oram Wind and "homas Bonoma de!eloped the si0 buying role model of the consumer. According to them a buying centre has members who play the following role in purchase process. 1. 171"1A"35I 1dentifies the need. ;. 17@>H67-65I influences the !iews of buyers =. #6-1#65I the one who ultimately decides about buying 4. BH865I holds the formal authority to select 5. H265I consumer of the product $. ?A"6:66/65I controls information or access to decision makers.
"hough the model in!ol!ed industrial buyers& we can take it as a rough foundation for analy,ing the buying roles of consumers.
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>et+s do the analysis on the basis of the models or !ariants in which /H>2A5 is a!ailable.
6.1.1
1:<cc
"he target customer base of the /H>2A5 has always been the age group of ;% =5. "he 15%cc model costs about $%&%%% 175 and is the cheapest of all /H>2A5 models. 2o its target base is also the college going kids and young office going people mostly. 1n the case of the college public& the 171"1A"35 < H265 becomes the college going kid. But the final BH865 < #6-1#65 in most of the cases are the parents of the college going kids. 2ince /ulsar is a brand which gets !ery good publicity by word of mouth& the 17@>H67-65 in this case is the kid+s friends& social circle& maga,ines& girlfriends etc. 1n the case of the office going people& the person using it only plays most of the roles. 3nly the co workers& friend circles to a large e0tent and family to a small e0tent plays the role of 17@>H67-65. >et us now look at the factors which generally influence the decision making process of consumers in buying 15%cc pulsar. @or the college going student& the major factors& which influence him in buying a /H>2A5& are • • • "he looks and styling A !ery international and contemporary according to many. 1t brings about a macho image A people feel it heightens their esteems among the group especially girls. /eer influence
15
•
/ower < acceleration A higher than the entry segment bikes.
@or the parents& who are the final buyers& the factors& which ha!e been obser!ed to be influencing& are • • • • BA9A9 A 1ts Brand name& the feeling of stability and reliability associated with it. 60tensi!e ser!ice center network and dealership locations across the country& so less maintenance worries. -ould be used as a family bike also. "here ha!e also been instances when the parents might ha!e owned a Bajaj scooter earlier and is loyal to brand Bajaj in his own right.
@or the office going people the major factors which help in decision making& ha!e been obser!ed to be • • • 2ense of style and power along with highest mileage in the segment. >ow maintenance. .igh resale !alue etc.
3ne of the recent factors influencing the buying has been obser!ed to be • "he initiation of BA9A9 into auto finance through its company BA9A9 AH"3 @17A7-6 >"#. FBA@>G. 1t has been coming up with some !ery inno!ati!e offers like !ery little down payment and %B interest loans. "here has been obser!ed& an increase or spurt in the sales figures in general during • • -ollege starting months 9une August. >aunch of a new impro!ed !ersion e.g. when the #"21 model was launched.
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As concerned& buying inter!als& most of the bikes are used for an a!erage of = 4 years and many purchases are repeat purchases. "he sale of the 15%cc bikes has been obser!ed to be the most among all brand offerings Fe.g. 1(% cc& ;%% ccG of /H>2A5 not only due to its pricing but also due to the mileage factor. 6ntry of good competitor products e.g. H71-357& .H7: etc. has had temporarily reduced the sales of /H>2A5 15%-- in the past but none has been able to gi!e a long hard competition to /H>2A5. A greater portion of the buying payments has been met through 6*1 >oans& so the rise of interest rates has affected the sales a bit. Also Bajaj might need to come up with new strategies to counter the dual challenge posed by rising inflation and interest rates to sustain sales of /ulsar 15% cc.
6.1.6
1=<&&
1t is a higher end bike in terms of features and powers. Accordingly the cost also increases to about $5%%% 175. "he fuel costs also increase proportionately. 2o the target customers of BA9A9 for this le!el of motorcycles are the people a little higher in the income le!el 6.g. *anagers& e0ecuti!es& rich college kids etc. "hus the #6-1#65& BH865& H265& 171"1A"35 roles are played by the end user himself. "he people who prefer the 1(%cc o!er the 15%cc are mostly those with a passion for biking& power lo!ers& bike enthusiasts etc. BA9A9 also targets this section of customer through its ads focusing on the joy of riding like /H>2A5*A71A& @ree Biking etc. >et us look at the factors influencing the decision making of this group of customers. "hey are
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•
"his segment is relati!ely new with !ery less competitors. 2o prospecti!e buyers more or less gra!itate to the a!ailable choices A /H>2A5 being the prominent among them.
• • •
1nfluence from the peer group and friends. Brand e)uity of /H>2A5 and word of mouth publicity. /eople buying in these segments also tend to get influenced by online re!iews a!ailable on the 1nternet.
Also since people buying in this category plan their purchase o!er a longer period of time and are relati!ely better off financially& this section of bikes has obser!ed lesser proportion of 6*1 based purchases.
6.1.3
6<<cc and 66<cc
"hese bikes ha!e been recent introductions to the /ulsar Brand. "heir popularity is also steadily increasing at par with their other counterparts. "hey are oil cooled models& which gi!e better performance especially when the bike is run o!er longer periods of time. "hey are sold at a hea!ier price range of '; to(5 thousand. "hey are intended mainly for biking enthusiasts and act as an alternati!e for those who cannot afford high power costly imported bikes. 1n terms of buying roles& the peer group of the biker etc. may play the role of 17@>H67-65. 3ther than that the end user himself plays most of the roles. 4arious sources of secondary data establish these facts as mentioned. Also our sur!ey points to similar facts. 3ut of 5= participants a majority of =( respondents either owned a pulsar or indicated that they prefer owning one in future. 1= of them had consulted re!iews on websites before going for /ulsar. Also an ama,ing 1$ out of the 19
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pulsar owners were !ery satisfied with the product and said they wouldKdo recommend the product to their friends. 6.g. in a sur!ey conducted in www.mouthshut.com& 419 e0isting BA9A9 /H>2A5 15%cc users were asked to rate /H>2A5 on !arious features on a scale of 5. "he results are as follows.
Additionally (=B respondents recommended the buying of a /H>2A5. 1n another sur!ey conducted by www.pulsarclub.com& the respondents were asked )uestions regarding their buying beha!ior. "heir responses were as follows. .hy did you buy a 'a/a/ Pulsar0 1ts masculine looks... /erformance... *ileage.. 5esale 4alue... by 6n!y... =9.'1B F11%G 4(.=(B F1=4G 5.4;B F15G 1.%(B F=G 5.4;B F15G Total 1otes2 344
.ho was influential in choosing 'a/a/ Pulsar0
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8our Wife 8our :ids 8our ?irlfriendFsG 8ou 8ourself #ealer pushed you !ery few choices
4.(=B F1%G 1.45B F=G ;=.19B F4(G $$.$'B F1=(G =.($B F(G
Total 1otes2 304
6.6
&.NS'+$R &$N(R)& S($5S B, BA4A4
7ow& let us look at some of the measures taken by Bajaj to influence consumer beha!ior in the increasingly competiti!e market. 1. 56-+67S8IP -,5 S671I&6 ,6T.O792 Bajaj Auto has an e0tensi!e network of about 4(5 dealers and 15%% ser!ice centers around the country. >ately it has been concentrating on the rural front which has largely been an untapped& growing market in terms of performance segment bikes. Bajaj has identified a segment of customers 'Probi$ers') who are knowledgeable& appreciati!e of contemporary technology& they are trendsetters and !ery choosy about what they ride. .ence& /robikers need to be addressed in a meaningful way that goes beyond the product. Bajaj Auto is in the process of e0panding it+s chain of retail stores across the country e0clusi!ely for high end& performance bikes. "hese stores are called LBajaj /robikingL. *any such stores ha!e been opened throughout major cities in 1ndia.
20
- '-:-: P7O'I9I,G S8O.7OOM "he CProbikingD stores ha!e features like attracti!e spare parts display& a trial room which is fully air conditioned etc. "he bikes are displayed in standing position which is in itself a !ery no!el way of attracting attention of the youngsters. Bajaj Auto has come up with new initiati!e called C e-bikingD to facilitate online booking of bikes. 1t+s the first and only kind of online bike booking in 1ndia and e0pected to woo the prospecti!e customers. After bike has been booked& bike would be deli!ered at the doorstep of the customer with attracti!e financing schemes made a!ailable to the customer. Bajaj Auto is e0pecting that it would gain significant customer base from people in cities like Bangalore& .yderabad and -hennai& which are 1" hubs of 1ndia and where people are internet sa!!y.
21
;. &;STOM67 76T6,TIO, >ifecycle of bike is relati!ely large Fcompared to other products like grocery items& clothes& etc.G and it is not that sort of product that people will buy twice a year or e!en once e!ery year. 2o customer retention is not limited to the act of customers coming back to buy the same product again and again. .ere& it takes a broad meaning and encompasses customer satisfaction with its usageJ ser!ice by the !endors and ser!ice centresJ and as a result customers who ha!e already bought the product recommending the same to other prospecti!e customers& users forming clubs to support the brand and also helping in testing etc of any new launches. We must say Bajaj has done e0tremely well in this area also. 2ales of /ulsar as well as its popularity ha!e been leading those of other bikes. Also in cities like /une there are bikers clubs& which owe serious allegiance to the brand Bajaj. /eople who had bought it and were happy with it started a Website www.pulsarclub.com. "his all is testimony to the successful customer retention for /ulsar by the Bajaj Auto. Another initiati!e taken by Bajaj Auto is C Ba a !onfi"ence # $%ten"e" &arrant' P(ans)& which e0tends basic ; yearK=%%%%km warranty coming with the purchase of new Bajaj Bike at a !ery nominal price. "his e0tended warranty gets acti!ated as soon as the basic warranty e0pires. "his initiati!e has been taken to pro!ide better ser!ice to the e0isting customers and hence focuses on customer retention and better customer relationship management. 1t needs to be seen how this new initiati!e does in achie!ing goals of customer retention. *arketing management is often described as the art and science of choosing target markets and getting& keeping and growing customers through creating& deli!ering& and communicating superior customer !alue. While C#6A>652.1/ A7# 26541-6 76"W35
is focusing on getting and growing customers& C-H2"3*65 56"67"137D focuses on keeping customers through superior customer !alue.
22
S$&().N / ))) 3$ &.+5$()(.R ANA2,S)S; (H$)R A&()*)()$S; S(A('S AN0 S(RA($8)$S
B
ajaj /ulsar has been in the market for about ' years now. 1t has re!olutioni,ed the 1ndian bike market with its inno!ati!e offerings both in terms of product )uality as well as style. -onsumers now ha!e the
choice of bikes which are high both on )uality i.e. mileage and performance as well as style. /ulsar commands about $%B of the market share in the 15%cc plus category. "his figure was higher initially& but with increased competition from other bike manufacturers in the same categoryJ its market share has decreased.
.ereon we will try to identify and analy,e the status& strategies and acti!ities of major competitors of /ulsar to understand its competiti!e scenario. 2ome of the major competitors of Bajaj with bikes in the 15%cc M category which are a competition to /ulsar are • • • • .ero .onda "42 8amaha @oreign -ompetitors
23
3.1
H$R. H.N0A > H.N0A +.(.RS
.ero .onda is the largest Bike manufacturer in the world. 1n 1ndia also& it leads in the o!erall bike market& but in the 15%cc plus category its models are lagging Bajaj /ulsar in the o!erall market share. Bajaj /ulsar+s main competitors from the .ero .onda stable are -BE& Achie!er& .unk and :ari,ma. &'( was an established and famous brand when /ulsar made its entry into the market. "hough -BE had a better engineJ /ulsar forged ahead with its styling& performance and inno!ati!e features. #emand for -BE began to gradually decrease as it was mainly positioned as a sports bike whereas /ulsar was not enclosed in any such bracket. .ero .onda came out with C-BE 6N"56*6D the new !ersion of -BE in ;%%$. 1t was positioned as a bike for 60treme ad!enture lo!ers with ad!ertisements on the similar lines. "hough this bike helped in impro!ing sales& but it was not as well recei!ed as the original one& with complaints about its looks.
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HERO-HONDA KARIZMA AND CBZ XTREME :A51E*A has been a major competitor for /ulsar in the 1(%cc& ;%%cc category. 1t is a sports bike with a niche market. .ero .onda has adopted a different marketing strategy to promote it. 2ince it is a bike primarily targeted for the youth& they used mediums& which were fre)uented by youth. "hey ha!e .rithik 5oshan as their brand ambassador. .ero .onda constantly sponsors ad!enture rallies through :ari,ma brand name. "he popular "4 show *"4 5oadies sponsored by :ari,ma has ele!ated its status as a brand and increased its popularity. A separate site for the Bike with forums for consumers to discuss the bike has been an inno!ati!e marketing strategy. .ero .onda has recently come up with another bike .ero .onda .unk in the 15%cc category. 1t is being positioned as a bike with macho looks and for the hunks. .onda through its separate !enture has come up with many bikes. 1t has Hnicorn in its stable& which is a significant competitor of /ulsar. 1t has found many supporters due to its better handling and gearshifts than /ulsar. .onda has always positioned it as its main bike. 3ther Bikes from the .ero .onda stable ha!e not been able to create a sufficient impact on the market. "he major ad!antage with .ero .onda is its wide ser!ice and dealership network of about =%%% outlets throughout the country& which is larger than all its competitors. .ero .onda also has a -5* initiati!e called C/assportD which is a major success ha!ing a membership of about = million customers. "hrough it the customers get a series of discounts and benefits for a period of = years. .ero .onda lately has been on a massi!e dri!e of penetrating the rural market through its C.ar ?aon .ar AanganD initiati!e. "hus Bajaj has to take note of this fact and try to e0pand more into the rural market to counter the competition from .ero A .onda.
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3.6
(*S +.(.RS
"he 1ndian automoti!e industry is increasingly getting competiti!e and the two wheeler segment within it is also facing its own share of challenges. As part of the industry& "42 *otors& the country+s third largest manufacturer of two wheelers& is also gi!ing a stiff competition to Bajaj products. "42 ?roup of companies engaged in the manufacturing of almost all kinds of automoti!e components& two wheelers and a few other industrial products. "hey are also into the financial ser!ices sector. "he turno!er of the entire group was close to O; billion in ;%%=. "he company has launched its latest bike @lame and has got some big plans up its slee!es. "he year ;%%' %( was a milestone for "42 *otor as it is likely to achie!e sales one million motorcycles. >ast year& the company sold a little o!er (%%&%%% motorcycles. "here was a #igital "win 2park /lug 1gnition P#"2 iQ technology debate between the two wheeler manufacturing giants Bajaj Auto and "42 *otors. "he patent war reached the 2upreme -ourt with Bajaj seeking a restrain on the manufacturing and selling of "42+ two wheeler R@lame+. Bajaj has sought a re!ocation of the *adras .igh -ourt order allowing "42 to go ahead with recei!ing bookings for and selling its new motorcycle. T1S
• • • • • • • • •
otorcycles product seg ent includes2 "42 *AN 1%% "42 2u,uki 2amurai "42 @iero "42 2tar "42 2tar -ity "42 2tar 2port "42 -entra "42 Apache "42 @lame
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Strategies to stay co petitive2 1. &onstant <uality I prove ent 2
2ignificant efforts ha!e gone silently into )uality impro!ement. "oday& 2tar has the best warranty record in the 1ndian two wheeler industry. 1t took at least two products worth of efforts to get "42 )uality up to that standard& where it is e)ual or better than the best. "he new offerings are targeted at different segments of the two and three wheeler customers with emphasis on superior technology& styling and engine capabilities
2.
Thrust on 7esearch and develop ent2
"42 *otor -ompany has decided to double its 5<# Fresearch and de!elopmentG spending this year. 3!er =%% personnel are deployed for product de!elopment. "he company will stri!e to set out a new benchmark in this area. "here was a discontinuity and break in cadence of its products. After 4ictor it came with 2cooty /ep which has done wellJ Apache which has got a good record in the marketJ and then 2tar. 7ow& it has got @lame& which will be a worthy ri!al to /ulsar.
3.
Product for every poc$et 2
"42 *otors has just launched se!en products in a first of its kind rollout in the 1ndian automobile industry. "he se!en products include a completely new 1;5 cc motorcycle @>A*6& an all new 11% cc 2tar -ity& an Apache !ariant with fuel injection technology and the electric !ariant of a 2cooty. "he new offerings are targeted at different segments of the two and three wheeler customers with emphasis on superior technology& styling and engine capabilities.
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3.3
,A+AHA +.(.RS
8amaha was one of the first foreign companies to enter into 1ndia. 1t began operations with a 94 with 6scorts 1ndia. By the turn of the century& the 94 between 6scorts and 8amaha broke off. With the rela0ation of @#1 norms to 1%%B& 8amaha was in 1ndian markets as a fully owned subsidiary of 8amaha *otors& 9apan. "his was ad!antageous in many ways. @irstly 8amaha had now full control of its operations& it could decide the strategies. 2econdly it could bring world class technologies from 9apan to 1ndia& which could act as its competiti!e ad!antage. @rom ;%%; onwards 8amaha started a process of rebuilding by concentrating more on 1%%cc plus delu0e category of motorcycles with bikes like >ibero. "hese set of two wheelers come with international style& cutting edge technology& fuel efficiency& power deli!ery& and styli,ed graphics. "he present stable of 8amaha includes bikes like -ru0 F1%%ccG& Alba F1%$ccG and ?ladiator F1;5ccG. As far as the 15% cc segment is concerned& 8amaha was not much of a competitor for Bajaj /ulsar until now. 1t has some bikes in the premium category abo!e 5%%cc but then they too ha!e their niche customers& which would not clash with those of pulsar. ?ladiator though not in the same category as /ulsar& has been a competitor for /ulsar. "he main factors that work in fa!or of ?ladiator is the huge price difference of about 1;&%%% between ?ladiator and /ulsar& the higher mileage of ?ladiator and durability. "he company is riding on the popularity of Bollywood heartthrob 9ohn Abraham for marketing its two wheelers. "hese campaigns focus on 8amaha as a brand
28
for the youth with emphasis on style& performance and technology. "hese campaigns ha!e been successful in denting the share of /ulsar a little.
YAMAHA GLADIATOR – JOHN ABRAHAM But the year ;%%( appears to be a bright one for 8amaha. 1t is coming out with two bikes in the 15%cc plus category& which ha!e been !ery popular abroad. "hey are 8amaha 515 F15%cc& water cooledG and @E F15%cc& air cooledG. 515 has technology from 51 bikes and has si0 speed transmission and has recei!ed e0cellent initial re!iews. @E is a toned down !ersion of the original @E 1%%%cc bikes. Both these bikes ha!e been predicted by 1ndustry e0perts to be a rage in their initial period and may eat into the share of /ulsar in the market. 8amaha is planning to impro!e on its weak point A no. of ser!ice centers. 1t is going to increase it to 5%% from its present =5%. 1t also plans to open about 1% direct shops in main metros for its new offerings and is coming out with aggressi!e marketing strategies for their launch. "he company is also planning to come out with two new !ariants of the ?ladiator. "hus Bajaj has to come out with new strategies to handle this new deluge of models which could affect the sales of /ulsar in the coming few months.
29
Y-M-8- =( >!"0&&? @ Y-M-8- 7!" >!"0&&?
3."
3.R$)8N &.+5$()(.RS
@oreign players ha!e been an integral part of the 1ndian auto market since long. 1t was the foreign players+ e0pertise that brought cutting edge technology into motorbikes and scooters went out for a toss. /ost liberali,ation some of them ha!e come out with bikes form their own stables. Also we ha!e bike manufacturers in china who are a major threat to 1ndian bike makers. -hinese manufacturers produce at !ery cost and sell the products at low margins. "hey concentrate on production rather than marketing their products. 1t is !ery e!ident from their strategy that they target markets like 1ndia& Africa and >atin America and not de!eloped markets like H2 or 6urope. With increasing globali,ation and reduction of trade barriers they will be a major threat. Also there ha!e been incidents when the -hinese ha!e been found not to be !ery keen on conforming to 1/5s or patents etc.& a blatant case being a -hinese duplicate of Bajaj pulsar& called ?H>2A5 and sold in the 2outh American market. 1t may well !ery easily
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gnaw into 1ndian bike producers+ share. Also with the 1ndian economy growing at a much bigger rate then the de!eloped countries markets and with a si0th of world population& which is growing richer by the day& it is e!ident that the market of the future is here. As a result all big bike manufacturers will make for the 1ndian market in the near future.
&8I,- M-56 G;+S-7
3ne point of note is that there is no minimum in!estment limit for foreign companies in 1ndia and as a result the threat from the -hinese producers all but intensifies. 9apanese producers like :"* and :awasaki Fwhich has prior e0perience of the 1ndian motorcycle marketG are coming out with their higher end products once again. Also it is rumored that .arley #a!idson and B*W intend to start e0porting bikes to 1ndia. "his is possibly an attempt to gauge the si,e of the market gi!en that the import duty on bikes is a staggering $%B. "he major threats posed are from the high cost high performance bikes and the low cost low mileage bikes Ffrom china etc.G. >et+s see how Bajaj might be planning to counter the twin threats.
Threat ! .igh cost performance segmentI
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"his segment can be e0pected to be a niche segment in the near future. .owe!er Bajaj is already doing 5<# on coming out with =5%cc and 5%%cc pulsars. Also with local manufacturing capability and gi!en the time frame Bajaj pulsar should be able to compete against them successfully gi!en they come out with consistent products. 3ne more thing we need to keep in mind is that business 1ndia is not without its )uirks& 8amaha when it was e0panding worldwide suffered losses in the 1ndian market and now was on the !erge of closing operations few months back.
Threat 3 >ow cost low mileage non performance segmentI With increasing fuel costs the consumers are getting more and more mileage conscious& also initial cost and maintenance cost are major factors that influence buyer+s choice in 1ndia. We can safely assume that Bajaj /ulsar is going to find it hard to ward off competition from this sector in near future. As such Bajaj needs to constantly inno!ate on its lower end product 15%cc pulsar& 1ncrease its mileage and probably try to cut costs by introducing economies of scale.
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S$&().N / )*
4. Survey Analysis and Recommendations A primary sur!ey has been conducted for customer beha!ior towards the bikes and their likes and dislikes on httpIKKwww.,oomerang.com Sur*e' +uestionnaire an" t,eir res-ecti*e inter-retations S1I Which is your preferred brandT
As we can see& most of the users ha!e their preferred brand as Bajaj F5;BG in a sample of $%% responses. 3ther half percentage comes under other brands. S;I .ow much power do you like in a bikeT
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1t can be seen that almost half of the people said that they like bike with 15% cc engine. 1t can be dependent on the price range because liking of high power bikes is less as compared to 15% cc. *ore interpretations can be deri!ed from ne0t few )uestions. S=I /rice segment of the bikeT
5(B people say& they would like to go with the bike& which is in between 4%k and $%k. "his also goes in parallel with S; that people like 15%cc bikes. 1t implies that price factor comes into mind of most consumers when they purchase a bike and that+s why they are more di!erted towards 15%cc bikes. S4I .ow much fuel efficient your bike should beT
54B people say that they like bikes& which ha!e a mileage between 4%kmpl to 5%kmpl. "hey do not like the bikes& which has a higher fuel consumption& which implies people are not ready to buy high power F1(%cc and abo!eG bikes& as they are low on fuel efficiency and high on price.
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S5I Which bikes do you like in 15% cc segmentT
As it is clearly seen that Bajaj /ulsar 15% #"2i has beaten other brands with high percentage of '5B and other brands like "42 apache& .ero .onda Achie!er and other ha!e constituted only ;5B. "his clearly indicates that Bajaj /ulsar is one of the best in 15%cc segment. S'I #oes Ad!ertisement influence your decision in choosing a motorbikeT
Ad!ertisements do affect the consumers in consumer+s buying decision as seen from the result. $1B say that the ad!ertisements impact them. 1t can be seen from abo!e results that Bajaj is the best most of the parameters displayed abo!e& be it mileage or price. Bajaj still needs to focus at its brand image because brand !alue of .ero .onda is more than Bajaj. Bajaj needs to focus on customer satisfaction in best possible way. Brand image would automatically be established if Bajaj becomes more customers oriented.
35
.ecommen"ations As we ha!e seen from the conducted sur!ey that Bajaj /ulsar 15% or Bajaj bikes are the best in bikes segment but still we would like to gi!e some recommendation to Bajaj so that they can impro!ise. 1. >ong hour dri!ing comfort is what is missing from Bajaj /ulsar. 2o we would like to recommend that Bajaj should introduce a better design for comfort for long dri!es. ;. As Bajaj is spending much on other accessories like digital speedometer or electric start& they must also spend on the comfort accessories to the dri!er. =. With good power in the bikes comes a disad!antage like lower mileage. Bajaj should in!est in new technology to get more mileage in high power bikes. 4. Bajaj should introduce "ube less tires as an optional accessory. 5. Bajaj can introduce 4ehicle trackerK-entral locking for Bikes to pre!ent theft. $. Bajaj can introduce disk brake for 5ear tires as well& which is generally seen in sports bike. "his will gi!e Bajaj an N factor.
5. &.N&2'S).N /utting together these four sections on the analysis of Bajaj /ulsar as a product& its marketing strategies& its competitors etc. has gi!en us many insights into the two wheeler market as a whole. 2tarting with the first section about the 2W3" analysis of /ulsar& we could analy,e the !arious e0ternal and internal factors& which contribute into the growth 36
of /ulsar as a brand and the !arious opportunities& and threats it faces for its future prospects. We learned about the !arious marketing strategies adopted by Bajaj for /ulsar right from its inception and how they ha!e been instrumental in building the brand /ulsar. 5ight from its C#efinitely *aleD to its latest C/ulsar maniaD campaign. 1n the second section& we analy,ed the consumer beha!ior for /ulsar in terms of purchase beha!ior& buying roles and decision making process. We segmented the /ulsar brand into !arious categories according cc of engine and analy,ed the consumer beha!ior for each. We also had the support of !arious customer sur!eys& conducted by us as well as from some e0ternal agencies to substantiate the analysis. "his section helped us understand how Bike makers cater to !arious segments through !arious offerings and customer centric measures& in case of /ulsar these being C/robiking storesD and C60tended WarrantyD plans. 1n the third section we undertook the competitor analysis of /ulsar among !arious categories from !arious companies. We understood the !arious strategies taken by these companies for their products and the effect this had on the /ulsar sales. We understood the status and acti!ities of the competitors like .ero .onda& 8amaha& "42 and foreign competitors. 1n the fourth section we analy,ed the results of the sur!ey conducted by us with respect to different brands of bikes and compared them on some parameters like price& mileage etc. 1n the end& we concluded that Bajaj /ulsar 15% #"2i is the best bike in 15% cc segments o!er powering other bikes& which include 8amaha& "42 and other brands. Also& we were able to gi!e recommendations to Bajaj and other bike companies& which would help them in impro!ing the bikes and building a brand image. "hus o!erall& this project was an e0periential way to understand the concepts of marketing and how they are applied in the real world.
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6. R$3$R$N&$S 1. /ulsar 15%cc re!iews A www.mouthshut.com 2. /ulsar -lub 2ite A www.pulsarclub.com 3. Bajaj Auto site A www.bajajauto.com 4. Buying roles model by 8oram Wind& @rederick Webster A www.pro!enmodels.com 5. .ero .onda :ari,ma www.herohondakari,ma.com $. 8amaha 1ndia www.yamaha motor india.com 7. www.wikipedia.org 8. "42 *otors www.t!smotor.in
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doc_965751607.doc
it includes intro, swot analysis ,competitor analysis etc
Report on Marketing Strategy of Bajaj Pulsar 150cc
Submitted By: Harsh Sachdeva (Roll No. 31) Ankit Sune a (Roll No. !) Rakesh Roshan (Roll No. "#)
$%$&'()*$ S'++AR,
We identified Bajaj Auto as the marketing company of our choice for the following project. Bajaj Auto group was founded in the year 1945 and has been among the front runners in the motorcycle industry e!er since. "his !ery fact talks !olumes about the company since only the best of the firms sur!i!e such a long time at the top. #uring the $%s& '%s and (%s there was a 1% year waiting period for its products. "he company only had to produce its )uota. *arketing or sales was not too much of an issue for them. Also the company+s owner was infamous for being part of the anti liberali,ation lobby called Bombay -lub. .owe!er the firm faced a major crisis in the 9%s and the early years of the new century due to increased competition from both foreign and domestic markets. .owe!er Bajaj came out only stronger with the competition and hardly depended on foreign help on this account. And the product& which did this turnaround possible& was /ulsar. /ulsar is e0emplifies the fighting spirit of Bajaj. 1t is a classic e0ample of an 1ndian company of the pre liberali,ation era& adapting itself to the changing scenario and coming out on tops. Another interesting fact is how liberali,ation and embracing the change can work wonders for a firm& which was one of the most skeptical of liberali,ation policies of the 1ndian go!ernment.
"he following project is a detailed marketing analysis of the product Bajaj /ulsar and its !ariants in the two wheeler market. "he project first of all focuses on the marketing history of Bajaj /ulsar and its 2W3" analysis. 4arious internal and 2
e0ternal factors were taken into consideration while analy,ing. "hen we go on to analy,e the consumer beha!ior for /ulsar regarding purchase& decision making and buying roles. "he third section focuses on the competitor analysis of Bajaj /ulsar& their !arious strategies& acti!ities and status to understand /ulsar+s competiti!e scenario. .elp has been taken for analysis from some consumer sur!eys from prominent sites and a small sur!ey done by us.
"he project gi!es insights into !arious other topics. 1t talks about the shift in the trend towards motorcycles in the 9%s. 1t also talks about the process of liberali,ation and how it affected Bajaj as a company. "he change in the marketing strategies of Bajaj according to the times& how /ulsar succeeded in achie!ing a turnaround for Bajaj are also discussed. "he competitor analysis of /ulsar gi!es an understanding of the two wheeler market as a whole& how it is full of choices for customers and how many more companies are !ying to enter it.
"hanks& Ankit 2uneja .arsh 2achde!a 5akesh 5oshan
3
(able o- &ontents
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4
S$&().N / ) 1. H)S(.R, AN0 S1.( ANA2,S)S .3 BA4A4 5'2SAR 1.1 )N(R.0'&().N
ajaj Auto is a major automobile manufacturer based in /une& 1ndia. 1t is one of the major producers of two wheelers and three wheelers and ranks 4th in the world in terms of two wheeler production. 1t is also
B
planning a foray into the 4 wheeler market. "he firm in its initial years was into manufacturing scooters and auto rickshaws. 1t also enjoyed the lion+s share of the 1ndian two wheeler markets for a long duration of time. 1n the late 6ighties and early nineties the market made a major shift in the type of !ehicles on offer. 7ew competitors like 8amaha and .ero .onda came out with motorcycles& which were more powerful& better& looking and easier to handle. As such the consumers got attracted to motorcycles than scooters. Bajaj was slow to respond to the changing dynamics of the market and it+s market share started declining )uickly. Bajaj entered into a partnership with the 9apanese bike manufacturer :awasaki to produce motorcycles for the 1ndian market. 2till& it failed to garner any major share of the market. 1n the year ;%%1& 5aji! Bajaj& the scion of the Bajaj family came up with the idea of de!eloping a powerful& stylish& rugged motorcycle& which would be priced lower than the e0isting products. And thus /ulsar was born. 1t came out in two !ariants 15%cc and 1(%cc.
5
1.6
1H, BA4A4 5'2SAR7
Bajaj Auto started in the year 1945. 1t started selling imported ; < = wheeler !ehicles in 1959. "hey subse)uently obtained a license to produce ; < = wheelers. #uring the $%s& '%s and (%s there was a 1% year waiting period for its products. "he company only had to produce its )uota. *arketing or sales was not too much of an issue for them. Also the company+s owner was infamous for being part of the anti liberali,ation lobby called Bombay -lub. 1n the (%s and the 9%s many foreign players like .onda& 8amaha etc. came into play in 1ndian markets and played a significant role in easing out some of the 1ndian brands. Bajaj is probably the only 1ndian brand to emerge stronger out of the competition by de!eloping products on its own. /ulsar it e0emplifies the fighting spirit of Bajaj. 1t is a classic e0ample of an 1ndian company of the pre liberali,ation era& adapting itself to the changing scenario and coming out on tops. Bajaj changed its product strategy when it started concentrating on the bike market. /ulsar was the first indigenously de!eloped motorcycle by Bajaj for the 1ndian bike market and was the reason for the turnaround of Bajaj fortunes. *any 1ndian companies& in order to ac)uire the technical know how entered into joint collaborations with foreign companies e.g. .ero motors with .onda& >*> with 4espa& Bajaj with :awasaki etc. "hough Bajaj depended on :awasaki for its initial forays into the Bike market& now it has disassociated itself from :awasaki and has emerged as a truly ?lobal 1ndian brand. Another interesting fact is how liberali,ation can work wonders for a firm& which was one of the most skeptical of liberali,ation policies of the 1ndian go!ernment. 2o /ulsar as a whole has been a brand& which has brought major changes not only in the 1ndian *otorcycle 1ndustry but also in the Bajaj business empire.
6
1.3
SH)3()N8 (R$N0S (.1AR0S +.(.R&,&2$S
@irst let us analy,e the change in the preference of the 1ndian customers in the two wheeler industry. 1n the 9%s with growth in the a!erage income of the 1ndian middle class A the primary consumers of the two wheeler market and the increasing number of choices in the motorcycle segment& there came a gradual increase in the sales of motorcycles. "here were many other factors for this • • • Ad!anced technologies in the bikes >arger wheel A base there fore easy to na!igate rough 1ndian roads .igher mileage& less maintenance cost& tougher.
"he following table shows the increasing share of motorcycles in the 1ndian market in the 9%s.
Scooter 7o. '%9.'= (4%.1' 1&%==.5; 1&;;=.4= 1&=%1.%5 1&;$;.'% 1&=;5.(' 9%1.(( Motorcycle 7o. B ='9.%$ ;5.; 4';.5( ;$.' $5;.%1 ;9.5 (%9.5= =%.4 9'(.$( ==.% 1&1=1.=1 ='.; 1&=95.$$ 41.% ;&15$.%= 5(.% Moped 7o. 414.5' 45'.4' 5;=.'% $;'.%( $(=.'$ $4(.(4 $(1.9% $('.$4
Year 199= 1994 1995 199$ 199' 199( 1999 ;%%%
Total In '000 1&5%=.=$ 1&''%.;; ;&;%9.;= ;&$$%.%4 ;&9$=.49 =&%4;.(5 =&4%=.4= =&'45.55
Overall Growth $.4% 1'.'5 ;4.(% ;%.41 11.41 ;.$( 11.(5 %.(%
B 4'.; 4'.5 4$.( 4$.% 4=.9 41.5 =9.% ;4.%
B ;'.$ ;5.( ;=.' ;=.$ ;=.1 ;1.= ;%.% 1(.%
Source: (SIAM). No. Number of Units (in '000)
"his factor also played an important role in the success of 1ndian bikes like .ero .onda 2plendor& Bajaj /ulsar.
7
1."
+AR9$()N8 H)S(.R,
Bajaj entrusted the responsibility of communicating the brand !alue of /ulsar through media campaigns to 3<* who came out with the brilliant ad of C#6@171"6>8 *A>6D. /ulsar was initially targeted to 1( ;4 age group. "he youth wanted powerful& stylish bikes& which would suit their pockets and gi!e them good mileage. "he higher powered bikes in the market e.g. 56& -BE were too pricey& high on maintenance or low on mileage. What 3<* needed to do was to attract attention of the youth& more so since the target market for the product was !ery niche. And the punch line C#6@171"6>8 *A>6D did fire the youth+s imagination. 1t was !ery no!el of 3<* to come up with the idea of associating a motorbike with ?ender. /ulsar got positioned as the .e Bike of 1ndia. "he product was un)uestionably a success and Bajaj started increasing the breadth of its target market. Bajaj also refused to rest on its laurels. 1t constantly kept working on upgrading the product and came up with #"21 F#igital "win 2park 1gnitionG !ersion of the Bike in the year ;%%5. "he new technology helped the bike to gi!e better mileage. Also the styling was changed A styli,ed headlights& tail lights etc. "his time around& >eo Burnett managed the ad campaign. "hey came out with the new punch line C#1?1"A> B1:17?D keeping in consideration the new technology #"21. "he mega successful C#6@171"6>8 *A>6D slogan was gi!en away with. "his& though it communicated the introduction of the new technology to the consumers& missed the trick in positioning it as the classic .6 B1:6. We ha!e e0amples from Bike *anufacturers who ha!e de!eloped a uni)ue theme for their Bikes and kept their positioning constant o!er a long duration of time earning unparalleled Brand loyalty and e0clusi!ity such as .arley #a!idson < 5oyal 6nfield.
8
.owe!er /ulsar had been so well established as a /roduct and its pricing and distribution were so strong that e!en indifferent promotional campaigns could hardly make too much of a difference to sales figures. 1n continuation of Bajaj+s strategy to come up with better products& the upgraded !ersion of pulsar was launched in ;%%' with digital console display and >6# taillights& which were a no!elty in the 1ndian market. 2ubse)uently Bajaj came up with newer !ariants of /ulsar ;%%cc < ;;% cc. "he ;%%cc bike had a lot of inno!ations like oil cooled engine& twin rails etc. "he bike was launched with a C@566 B1:17?D campaign shot in -uba by 3<*. "wo Bikers riding /ulsar ;%%cc bikes were shown ,ip ,apping their way through buildings and crowded streets of .a!ana. Bajaj tried to communicate that it does not matter where you are biking but how you are biking& when you are atop a /ulsar ;%%cc. "hough the message might ha!e been a bit comple0 for the typical 1ndian motorcycle owner& the freshness of the ad really populari,ed the bikes. "he latest in the series of /ulsar ads is the C/H>2A5*A71AD one& where 4 bikers perform !aried stunts atop /ulsar bikes. "hey ha!e been !ery popular and aim to e0tend the macho image of /ulsar bikes further.
9
1.:
S1.( +A(R)% .3 BA4A4 5'2SAR
2W3" as of ;%%1 A year of launch 2"567?".2I • • • • • 4ery popular brand positioning F#6@171"6>8 *A>6G which helped )uite a lot in populari,ing the brand "he styling of the bike was a novelty and was in line with its macho image. Perfor ance A wise& it was much better than other bikes in the same segment. 1t had an i pressive ileage for a !"0 cc bike& about 45 plus& which was much more than other bikes of the segment like -BE etc. 2ince Bajaj was already in the scooter market beforehand& it could use those same resources for the distribution& sales and ser!ice for Bajaj pulsar bikes. Bajaj made after sales a priority in marketing.
W6A:7622I • 3ne of the major weaknesses of Bajaj pulsar was that it was an untested product# Before this Bajaj had ne!er come out with a product in this segment and so there was a lot of customer apprehension about the product initially. 3//35"H71"162I • • "he !"0cc ar$et was an underdeveloped ar$et at that time and so there was tremendous scope of growth. "here was a major opportunity of e%port for Bajaj pulsar& since that was the time when the e0port markets were )uite open and there was a large demand for 1ndian products in the foreign markets.
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".56A"2I • "he major threat for Bajaj /ulsar in the product category was &'() a product from the .ero .onda stable& which was an already established brand in itself. • Bajaj as a brand had an i age of producing rustic) Indian) old scooters. "his brand image could work against it when it was !enturing into selling bikes which were more internationally styled. • 8amaha and .onda were also planning to come up with similar products !ery soon.
2W3" as of the year ;%%( 2"567?".2I • @rom 15%cc it has di!ersified into !aried categories like 1(%cc& ;%%cc& ;;%cc& air cooled and water cooled. "hus it has a wide range to fit every poc$et# • • • 1t is a tried and tested product. 6!en bad ads don+t make a difference in its sales. 1ts sales are more or less word of mouth dri!en. Bajaj has constantly worked on the mileage taking it as an important part and has impro!ed it in the latest bikes. "here is a constant up gradation of the model going on e!ery time. 7ew features like #igital speedometer& >6# tail lights etc were introduced by Bajaj pulsar first of all in the 1ndian market. W6A:7622I • • "here are still so e technical proble s in the model& which are not sol!ed like the ?ear Bo0 etc. "here is not much of a product differentiation a ong the various odels of bajaj pulsar as they ha!e similar styling.
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3//35"H71"162I • To enter the higher end bi$e for Bajaj /ulsar products there. • • "hough Bajaj is the largest bike e0porter in 1ndia& it has to still enter any untested ar$ets# of its own) which it can use to le!erage Bajaj has an auto*financing ar ar$et & which is a high margin business. 1t is a !ery underde!eloped market in 1ndiaJ surely there would be a demand
its bike sales. 6.g. by pro!iding easy installments and other schemes. ".56A"2I • • &heap &hinese i ports and other copycats in foreign markets trying to make a dent on its market. "here is much more competition in the market for e!ery segment that /ulsar is in& than it was in ;%%1. 3ther Bike manufacturers ha!e also come up with !ery good products. • • "he bi$e business is increasingly beco ing a low* argin business . "he ad!ent of +ow*priced cars li$e ,-,O also would also ha!e a significant effect on the sales of pulsar bikes.
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S$&().N / )) 6. ANA2,S)N8 &.NS'+$R B$HA*).'R )N ($R+S .3 B',)N8 R.2$S; 0$&)S).N +A9)N8 5R.&$SS AN0 9)N0 .3 5'R&HAS$ B$HA*).R
B
A9A9 /H>2A5 has been one of the leading brands of motorcycles from the BA9A9 stable for the last ' years or so. 5ight from its inception in the year ;%%1& the bike has been the market leader in its segment
despite stiff competition from many others including one of the biggies who had the first mo!er ad!antage. 1t has stri!ed to be ahead of its competitors& through a mi0 of product and marketing inno!ation& solid performance bikes and good marketing strategies. "hroughout this it has maintained a loyal base of supporters& which ha!e clung to it for years. *arketing management of /H>2A5 has been highly successful as it has been able to ac)uire& retain and grow its customer base e!ery year. 1n this section we are going to analy,e the beha!ior of consumers of BA9A9 /H>2A5 in terms of their buying roles& decision making process and kind of purchase beha!ior.
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6.1
B',)N8 R.2$S
1n the '%+s and (%+s @rederick 6. Webster& 8oram Wind and "homas Bonoma de!eloped the si0 buying role model of the consumer. According to them a buying centre has members who play the following role in purchase process. 1. 171"1A"35I 1dentifies the need. ;. 17@>H67-65I influences the !iews of buyers =. #6-1#65I the one who ultimately decides about buying 4. BH865I holds the formal authority to select 5. H265I consumer of the product $. ?A"6:66/65I controls information or access to decision makers.
"hough the model in!ol!ed industrial buyers& we can take it as a rough foundation for analy,ing the buying roles of consumers.
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>et+s do the analysis on the basis of the models or !ariants in which /H>2A5 is a!ailable.
6.1.1
1:<cc
"he target customer base of the /H>2A5 has always been the age group of ;% =5. "he 15%cc model costs about $%&%%% 175 and is the cheapest of all /H>2A5 models. 2o its target base is also the college going kids and young office going people mostly. 1n the case of the college public& the 171"1A"35 < H265 becomes the college going kid. But the final BH865 < #6-1#65 in most of the cases are the parents of the college going kids. 2ince /ulsar is a brand which gets !ery good publicity by word of mouth& the 17@>H67-65 in this case is the kid+s friends& social circle& maga,ines& girlfriends etc. 1n the case of the office going people& the person using it only plays most of the roles. 3nly the co workers& friend circles to a large e0tent and family to a small e0tent plays the role of 17@>H67-65. >et us now look at the factors which generally influence the decision making process of consumers in buying 15%cc pulsar. @or the college going student& the major factors& which influence him in buying a /H>2A5& are • • • "he looks and styling A !ery international and contemporary according to many. 1t brings about a macho image A people feel it heightens their esteems among the group especially girls. /eer influence
15
•
/ower < acceleration A higher than the entry segment bikes.
@or the parents& who are the final buyers& the factors& which ha!e been obser!ed to be influencing& are • • • • BA9A9 A 1ts Brand name& the feeling of stability and reliability associated with it. 60tensi!e ser!ice center network and dealership locations across the country& so less maintenance worries. -ould be used as a family bike also. "here ha!e also been instances when the parents might ha!e owned a Bajaj scooter earlier and is loyal to brand Bajaj in his own right.
@or the office going people the major factors which help in decision making& ha!e been obser!ed to be • • • 2ense of style and power along with highest mileage in the segment. >ow maintenance. .igh resale !alue etc.
3ne of the recent factors influencing the buying has been obser!ed to be • "he initiation of BA9A9 into auto finance through its company BA9A9 AH"3 @17A7-6 >"#. FBA@>G. 1t has been coming up with some !ery inno!ati!e offers like !ery little down payment and %B interest loans. "here has been obser!ed& an increase or spurt in the sales figures in general during • • -ollege starting months 9une August. >aunch of a new impro!ed !ersion e.g. when the #"21 model was launched.
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As concerned& buying inter!als& most of the bikes are used for an a!erage of = 4 years and many purchases are repeat purchases. "he sale of the 15%cc bikes has been obser!ed to be the most among all brand offerings Fe.g. 1(% cc& ;%% ccG of /H>2A5 not only due to its pricing but also due to the mileage factor. 6ntry of good competitor products e.g. H71-357& .H7: etc. has had temporarily reduced the sales of /H>2A5 15%-- in the past but none has been able to gi!e a long hard competition to /H>2A5. A greater portion of the buying payments has been met through 6*1 >oans& so the rise of interest rates has affected the sales a bit. Also Bajaj might need to come up with new strategies to counter the dual challenge posed by rising inflation and interest rates to sustain sales of /ulsar 15% cc.
6.1.6
1=<&&
1t is a higher end bike in terms of features and powers. Accordingly the cost also increases to about $5%%% 175. "he fuel costs also increase proportionately. 2o the target customers of BA9A9 for this le!el of motorcycles are the people a little higher in the income le!el 6.g. *anagers& e0ecuti!es& rich college kids etc. "hus the #6-1#65& BH865& H265& 171"1A"35 roles are played by the end user himself. "he people who prefer the 1(%cc o!er the 15%cc are mostly those with a passion for biking& power lo!ers& bike enthusiasts etc. BA9A9 also targets this section of customer through its ads focusing on the joy of riding like /H>2A5*A71A& @ree Biking etc. >et us look at the factors influencing the decision making of this group of customers. "hey are
17
•
"his segment is relati!ely new with !ery less competitors. 2o prospecti!e buyers more or less gra!itate to the a!ailable choices A /H>2A5 being the prominent among them.
• • •
1nfluence from the peer group and friends. Brand e)uity of /H>2A5 and word of mouth publicity. /eople buying in these segments also tend to get influenced by online re!iews a!ailable on the 1nternet.
Also since people buying in this category plan their purchase o!er a longer period of time and are relati!ely better off financially& this section of bikes has obser!ed lesser proportion of 6*1 based purchases.
6.1.3
6<<cc and 66<cc
"hese bikes ha!e been recent introductions to the /ulsar Brand. "heir popularity is also steadily increasing at par with their other counterparts. "hey are oil cooled models& which gi!e better performance especially when the bike is run o!er longer periods of time. "hey are sold at a hea!ier price range of '; to(5 thousand. "hey are intended mainly for biking enthusiasts and act as an alternati!e for those who cannot afford high power costly imported bikes. 1n terms of buying roles& the peer group of the biker etc. may play the role of 17@>H67-65. 3ther than that the end user himself plays most of the roles. 4arious sources of secondary data establish these facts as mentioned. Also our sur!ey points to similar facts. 3ut of 5= participants a majority of =( respondents either owned a pulsar or indicated that they prefer owning one in future. 1= of them had consulted re!iews on websites before going for /ulsar. Also an ama,ing 1$ out of the 19
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pulsar owners were !ery satisfied with the product and said they wouldKdo recommend the product to their friends. 6.g. in a sur!ey conducted in www.mouthshut.com& 419 e0isting BA9A9 /H>2A5 15%cc users were asked to rate /H>2A5 on !arious features on a scale of 5. "he results are as follows.
Additionally (=B respondents recommended the buying of a /H>2A5. 1n another sur!ey conducted by www.pulsarclub.com& the respondents were asked )uestions regarding their buying beha!ior. "heir responses were as follows. .hy did you buy a 'a/a/ Pulsar0 1ts masculine looks... /erformance... *ileage.. 5esale 4alue... by 6n!y... =9.'1B F11%G 4(.=(B F1=4G 5.4;B F15G 1.%(B F=G 5.4;B F15G Total 1otes2 344
.ho was influential in choosing 'a/a/ Pulsar0
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8our Wife 8our :ids 8our ?irlfriendFsG 8ou 8ourself #ealer pushed you !ery few choices
4.(=B F1%G 1.45B F=G ;=.19B F4(G $$.$'B F1=(G =.($B F(G
Total 1otes2 304
6.6
&.NS'+$R &$N(R)& S($5S B, BA4A4
7ow& let us look at some of the measures taken by Bajaj to influence consumer beha!ior in the increasingly competiti!e market. 1. 56-+67S8IP -,5 S671I&6 ,6T.O792 Bajaj Auto has an e0tensi!e network of about 4(5 dealers and 15%% ser!ice centers around the country. >ately it has been concentrating on the rural front which has largely been an untapped& growing market in terms of performance segment bikes. Bajaj has identified a segment of customers 'Probi$ers') who are knowledgeable& appreciati!e of contemporary technology& they are trendsetters and !ery choosy about what they ride. .ence& /robikers need to be addressed in a meaningful way that goes beyond the product. Bajaj Auto is in the process of e0panding it+s chain of retail stores across the country e0clusi!ely for high end& performance bikes. "hese stores are called LBajaj /robikingL. *any such stores ha!e been opened throughout major cities in 1ndia.
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- '-:-: P7O'I9I,G S8O.7OOM "he CProbikingD stores ha!e features like attracti!e spare parts display& a trial room which is fully air conditioned etc. "he bikes are displayed in standing position which is in itself a !ery no!el way of attracting attention of the youngsters. Bajaj Auto has come up with new initiati!e called C e-bikingD to facilitate online booking of bikes. 1t+s the first and only kind of online bike booking in 1ndia and e0pected to woo the prospecti!e customers. After bike has been booked& bike would be deli!ered at the doorstep of the customer with attracti!e financing schemes made a!ailable to the customer. Bajaj Auto is e0pecting that it would gain significant customer base from people in cities like Bangalore& .yderabad and -hennai& which are 1" hubs of 1ndia and where people are internet sa!!y.
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;. &;STOM67 76T6,TIO, >ifecycle of bike is relati!ely large Fcompared to other products like grocery items& clothes& etc.G and it is not that sort of product that people will buy twice a year or e!en once e!ery year. 2o customer retention is not limited to the act of customers coming back to buy the same product again and again. .ere& it takes a broad meaning and encompasses customer satisfaction with its usageJ ser!ice by the !endors and ser!ice centresJ and as a result customers who ha!e already bought the product recommending the same to other prospecti!e customers& users forming clubs to support the brand and also helping in testing etc of any new launches. We must say Bajaj has done e0tremely well in this area also. 2ales of /ulsar as well as its popularity ha!e been leading those of other bikes. Also in cities like /une there are bikers clubs& which owe serious allegiance to the brand Bajaj. /eople who had bought it and were happy with it started a Website www.pulsarclub.com. "his all is testimony to the successful customer retention for /ulsar by the Bajaj Auto. Another initiati!e taken by Bajaj Auto is C Ba a !onfi"ence # $%ten"e" &arrant' P(ans)& which e0tends basic ; yearK=%%%%km warranty coming with the purchase of new Bajaj Bike at a !ery nominal price. "his e0tended warranty gets acti!ated as soon as the basic warranty e0pires. "his initiati!e has been taken to pro!ide better ser!ice to the e0isting customers and hence focuses on customer retention and better customer relationship management. 1t needs to be seen how this new initiati!e does in achie!ing goals of customer retention. *arketing management is often described as the art and science of choosing target markets and getting& keeping and growing customers through creating& deli!ering& and communicating superior customer !alue. While C#6A>652.1/ A7# 26541-6 76"W35
is focusing on getting and growing customers& C-H2"3*65 56"67"137D focuses on keeping customers through superior customer !alue.22
S$&().N / ))) 3$ &.+5$()(.R ANA2,S)S; (H$)R A&()*)()$S; S(A('S AN0 S(RA($8)$S
B
ajaj /ulsar has been in the market for about ' years now. 1t has re!olutioni,ed the 1ndian bike market with its inno!ati!e offerings both in terms of product )uality as well as style. -onsumers now ha!e the
choice of bikes which are high both on )uality i.e. mileage and performance as well as style. /ulsar commands about $%B of the market share in the 15%cc plus category. "his figure was higher initially& but with increased competition from other bike manufacturers in the same categoryJ its market share has decreased.
.ereon we will try to identify and analy,e the status& strategies and acti!ities of major competitors of /ulsar to understand its competiti!e scenario. 2ome of the major competitors of Bajaj with bikes in the 15%cc M category which are a competition to /ulsar are • • • • .ero .onda "42 8amaha @oreign -ompetitors
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3.1
H$R. H.N0A > H.N0A +.(.RS
.ero .onda is the largest Bike manufacturer in the world. 1n 1ndia also& it leads in the o!erall bike market& but in the 15%cc plus category its models are lagging Bajaj /ulsar in the o!erall market share. Bajaj /ulsar+s main competitors from the .ero .onda stable are -BE& Achie!er& .unk and :ari,ma. &'( was an established and famous brand when /ulsar made its entry into the market. "hough -BE had a better engineJ /ulsar forged ahead with its styling& performance and inno!ati!e features. #emand for -BE began to gradually decrease as it was mainly positioned as a sports bike whereas /ulsar was not enclosed in any such bracket. .ero .onda came out with C-BE 6N"56*6D the new !ersion of -BE in ;%%$. 1t was positioned as a bike for 60treme ad!enture lo!ers with ad!ertisements on the similar lines. "hough this bike helped in impro!ing sales& but it was not as well recei!ed as the original one& with complaints about its looks.
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HERO-HONDA KARIZMA AND CBZ XTREME :A51E*A has been a major competitor for /ulsar in the 1(%cc& ;%%cc category. 1t is a sports bike with a niche market. .ero .onda has adopted a different marketing strategy to promote it. 2ince it is a bike primarily targeted for the youth& they used mediums& which were fre)uented by youth. "hey ha!e .rithik 5oshan as their brand ambassador. .ero .onda constantly sponsors ad!enture rallies through :ari,ma brand name. "he popular "4 show *"4 5oadies sponsored by :ari,ma has ele!ated its status as a brand and increased its popularity. A separate site for the Bike with forums for consumers to discuss the bike has been an inno!ati!e marketing strategy. .ero .onda has recently come up with another bike .ero .onda .unk in the 15%cc category. 1t is being positioned as a bike with macho looks and for the hunks. .onda through its separate !enture has come up with many bikes. 1t has Hnicorn in its stable& which is a significant competitor of /ulsar. 1t has found many supporters due to its better handling and gearshifts than /ulsar. .onda has always positioned it as its main bike. 3ther Bikes from the .ero .onda stable ha!e not been able to create a sufficient impact on the market. "he major ad!antage with .ero .onda is its wide ser!ice and dealership network of about =%%% outlets throughout the country& which is larger than all its competitors. .ero .onda also has a -5* initiati!e called C/assportD which is a major success ha!ing a membership of about = million customers. "hrough it the customers get a series of discounts and benefits for a period of = years. .ero .onda lately has been on a massi!e dri!e of penetrating the rural market through its C.ar ?aon .ar AanganD initiati!e. "hus Bajaj has to take note of this fact and try to e0pand more into the rural market to counter the competition from .ero A .onda.
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3.6
(*S +.(.RS
"he 1ndian automoti!e industry is increasingly getting competiti!e and the two wheeler segment within it is also facing its own share of challenges. As part of the industry& "42 *otors& the country+s third largest manufacturer of two wheelers& is also gi!ing a stiff competition to Bajaj products. "42 ?roup of companies engaged in the manufacturing of almost all kinds of automoti!e components& two wheelers and a few other industrial products. "hey are also into the financial ser!ices sector. "he turno!er of the entire group was close to O; billion in ;%%=. "he company has launched its latest bike @lame and has got some big plans up its slee!es. "he year ;%%' %( was a milestone for "42 *otor as it is likely to achie!e sales one million motorcycles. >ast year& the company sold a little o!er (%%&%%% motorcycles. "here was a #igital "win 2park /lug 1gnition P#"2 iQ technology debate between the two wheeler manufacturing giants Bajaj Auto and "42 *otors. "he patent war reached the 2upreme -ourt with Bajaj seeking a restrain on the manufacturing and selling of "42+ two wheeler R@lame+. Bajaj has sought a re!ocation of the *adras .igh -ourt order allowing "42 to go ahead with recei!ing bookings for and selling its new motorcycle. T1S
• • • • • • • • •
otorcycles product seg ent includes2 "42 *AN 1%% "42 2u,uki 2amurai "42 @iero "42 2tar "42 2tar -ity "42 2tar 2port "42 -entra "42 Apache "42 @lame
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Strategies to stay co petitive2 1. &onstant <uality I prove ent 2
2ignificant efforts ha!e gone silently into )uality impro!ement. "oday& 2tar has the best warranty record in the 1ndian two wheeler industry. 1t took at least two products worth of efforts to get "42 )uality up to that standard& where it is e)ual or better than the best. "he new offerings are targeted at different segments of the two and three wheeler customers with emphasis on superior technology& styling and engine capabilities
2.
Thrust on 7esearch and develop ent2
"42 *otor -ompany has decided to double its 5<# Fresearch and de!elopmentG spending this year. 3!er =%% personnel are deployed for product de!elopment. "he company will stri!e to set out a new benchmark in this area. "here was a discontinuity and break in cadence of its products. After 4ictor it came with 2cooty /ep which has done wellJ Apache which has got a good record in the marketJ and then 2tar. 7ow& it has got @lame& which will be a worthy ri!al to /ulsar.
3.
Product for every poc$et 2
"42 *otors has just launched se!en products in a first of its kind rollout in the 1ndian automobile industry. "he se!en products include a completely new 1;5 cc motorcycle @>A*6& an all new 11% cc 2tar -ity& an Apache !ariant with fuel injection technology and the electric !ariant of a 2cooty. "he new offerings are targeted at different segments of the two and three wheeler customers with emphasis on superior technology& styling and engine capabilities.
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3.3
,A+AHA +.(.RS
8amaha was one of the first foreign companies to enter into 1ndia. 1t began operations with a 94 with 6scorts 1ndia. By the turn of the century& the 94 between 6scorts and 8amaha broke off. With the rela0ation of @#1 norms to 1%%B& 8amaha was in 1ndian markets as a fully owned subsidiary of 8amaha *otors& 9apan. "his was ad!antageous in many ways. @irstly 8amaha had now full control of its operations& it could decide the strategies. 2econdly it could bring world class technologies from 9apan to 1ndia& which could act as its competiti!e ad!antage. @rom ;%%; onwards 8amaha started a process of rebuilding by concentrating more on 1%%cc plus delu0e category of motorcycles with bikes like >ibero. "hese set of two wheelers come with international style& cutting edge technology& fuel efficiency& power deli!ery& and styli,ed graphics. "he present stable of 8amaha includes bikes like -ru0 F1%%ccG& Alba F1%$ccG and ?ladiator F1;5ccG. As far as the 15% cc segment is concerned& 8amaha was not much of a competitor for Bajaj /ulsar until now. 1t has some bikes in the premium category abo!e 5%%cc but then they too ha!e their niche customers& which would not clash with those of pulsar. ?ladiator though not in the same category as /ulsar& has been a competitor for /ulsar. "he main factors that work in fa!or of ?ladiator is the huge price difference of about 1;&%%% between ?ladiator and /ulsar& the higher mileage of ?ladiator and durability. "he company is riding on the popularity of Bollywood heartthrob 9ohn Abraham for marketing its two wheelers. "hese campaigns focus on 8amaha as a brand
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for the youth with emphasis on style& performance and technology. "hese campaigns ha!e been successful in denting the share of /ulsar a little.
YAMAHA GLADIATOR – JOHN ABRAHAM But the year ;%%( appears to be a bright one for 8amaha. 1t is coming out with two bikes in the 15%cc plus category& which ha!e been !ery popular abroad. "hey are 8amaha 515 F15%cc& water cooledG and @E F15%cc& air cooledG. 515 has technology from 51 bikes and has si0 speed transmission and has recei!ed e0cellent initial re!iews. @E is a toned down !ersion of the original @E 1%%%cc bikes. Both these bikes ha!e been predicted by 1ndustry e0perts to be a rage in their initial period and may eat into the share of /ulsar in the market. 8amaha is planning to impro!e on its weak point A no. of ser!ice centers. 1t is going to increase it to 5%% from its present =5%. 1t also plans to open about 1% direct shops in main metros for its new offerings and is coming out with aggressi!e marketing strategies for their launch. "he company is also planning to come out with two new !ariants of the ?ladiator. "hus Bajaj has to come out with new strategies to handle this new deluge of models which could affect the sales of /ulsar in the coming few months.
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Y-M-8- =( >!"0&&? @ Y-M-8- 7!" >!"0&&?
3."
3.R$)8N &.+5$()(.RS
@oreign players ha!e been an integral part of the 1ndian auto market since long. 1t was the foreign players+ e0pertise that brought cutting edge technology into motorbikes and scooters went out for a toss. /ost liberali,ation some of them ha!e come out with bikes form their own stables. Also we ha!e bike manufacturers in china who are a major threat to 1ndian bike makers. -hinese manufacturers produce at !ery cost and sell the products at low margins. "hey concentrate on production rather than marketing their products. 1t is !ery e!ident from their strategy that they target markets like 1ndia& Africa and >atin America and not de!eloped markets like H2 or 6urope. With increasing globali,ation and reduction of trade barriers they will be a major threat. Also there ha!e been incidents when the -hinese ha!e been found not to be !ery keen on conforming to 1/5s or patents etc.& a blatant case being a -hinese duplicate of Bajaj pulsar& called ?H>2A5 and sold in the 2outh American market. 1t may well !ery easily
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gnaw into 1ndian bike producers+ share. Also with the 1ndian economy growing at a much bigger rate then the de!eloped countries markets and with a si0th of world population& which is growing richer by the day& it is e!ident that the market of the future is here. As a result all big bike manufacturers will make for the 1ndian market in the near future.
&8I,- M-56 G;+S-7
3ne point of note is that there is no minimum in!estment limit for foreign companies in 1ndia and as a result the threat from the -hinese producers all but intensifies. 9apanese producers like :"* and :awasaki Fwhich has prior e0perience of the 1ndian motorcycle marketG are coming out with their higher end products once again. Also it is rumored that .arley #a!idson and B*W intend to start e0porting bikes to 1ndia. "his is possibly an attempt to gauge the si,e of the market gi!en that the import duty on bikes is a staggering $%B. "he major threats posed are from the high cost high performance bikes and the low cost low mileage bikes Ffrom china etc.G. >et+s see how Bajaj might be planning to counter the twin threats.
Threat ! .igh cost performance segmentI
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"his segment can be e0pected to be a niche segment in the near future. .owe!er Bajaj is already doing 5<# on coming out with =5%cc and 5%%cc pulsars. Also with local manufacturing capability and gi!en the time frame Bajaj pulsar should be able to compete against them successfully gi!en they come out with consistent products. 3ne more thing we need to keep in mind is that business 1ndia is not without its )uirks& 8amaha when it was e0panding worldwide suffered losses in the 1ndian market and now was on the !erge of closing operations few months back.
Threat 3 >ow cost low mileage non performance segmentI With increasing fuel costs the consumers are getting more and more mileage conscious& also initial cost and maintenance cost are major factors that influence buyer+s choice in 1ndia. We can safely assume that Bajaj /ulsar is going to find it hard to ward off competition from this sector in near future. As such Bajaj needs to constantly inno!ate on its lower end product 15%cc pulsar& 1ncrease its mileage and probably try to cut costs by introducing economies of scale.
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S$&().N / )*
4. Survey Analysis and Recommendations A primary sur!ey has been conducted for customer beha!ior towards the bikes and their likes and dislikes on httpIKKwww.,oomerang.com Sur*e' +uestionnaire an" t,eir res-ecti*e inter-retations S1I Which is your preferred brandT
As we can see& most of the users ha!e their preferred brand as Bajaj F5;BG in a sample of $%% responses. 3ther half percentage comes under other brands. S;I .ow much power do you like in a bikeT
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1t can be seen that almost half of the people said that they like bike with 15% cc engine. 1t can be dependent on the price range because liking of high power bikes is less as compared to 15% cc. *ore interpretations can be deri!ed from ne0t few )uestions. S=I /rice segment of the bikeT
5(B people say& they would like to go with the bike& which is in between 4%k and $%k. "his also goes in parallel with S; that people like 15%cc bikes. 1t implies that price factor comes into mind of most consumers when they purchase a bike and that+s why they are more di!erted towards 15%cc bikes. S4I .ow much fuel efficient your bike should beT
54B people say that they like bikes& which ha!e a mileage between 4%kmpl to 5%kmpl. "hey do not like the bikes& which has a higher fuel consumption& which implies people are not ready to buy high power F1(%cc and abo!eG bikes& as they are low on fuel efficiency and high on price.
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S5I Which bikes do you like in 15% cc segmentT
As it is clearly seen that Bajaj /ulsar 15% #"2i has beaten other brands with high percentage of '5B and other brands like "42 apache& .ero .onda Achie!er and other ha!e constituted only ;5B. "his clearly indicates that Bajaj /ulsar is one of the best in 15%cc segment. S'I #oes Ad!ertisement influence your decision in choosing a motorbikeT
Ad!ertisements do affect the consumers in consumer+s buying decision as seen from the result. $1B say that the ad!ertisements impact them. 1t can be seen from abo!e results that Bajaj is the best most of the parameters displayed abo!e& be it mileage or price. Bajaj still needs to focus at its brand image because brand !alue of .ero .onda is more than Bajaj. Bajaj needs to focus on customer satisfaction in best possible way. Brand image would automatically be established if Bajaj becomes more customers oriented.
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.ecommen"ations As we ha!e seen from the conducted sur!ey that Bajaj /ulsar 15% or Bajaj bikes are the best in bikes segment but still we would like to gi!e some recommendation to Bajaj so that they can impro!ise. 1. >ong hour dri!ing comfort is what is missing from Bajaj /ulsar. 2o we would like to recommend that Bajaj should introduce a better design for comfort for long dri!es. ;. As Bajaj is spending much on other accessories like digital speedometer or electric start& they must also spend on the comfort accessories to the dri!er. =. With good power in the bikes comes a disad!antage like lower mileage. Bajaj should in!est in new technology to get more mileage in high power bikes. 4. Bajaj should introduce "ube less tires as an optional accessory. 5. Bajaj can introduce 4ehicle trackerK-entral locking for Bikes to pre!ent theft. $. Bajaj can introduce disk brake for 5ear tires as well& which is generally seen in sports bike. "his will gi!e Bajaj an N factor.
5. &.N&2'S).N /utting together these four sections on the analysis of Bajaj /ulsar as a product& its marketing strategies& its competitors etc. has gi!en us many insights into the two wheeler market as a whole. 2tarting with the first section about the 2W3" analysis of /ulsar& we could analy,e the !arious e0ternal and internal factors& which contribute into the growth 36
of /ulsar as a brand and the !arious opportunities& and threats it faces for its future prospects. We learned about the !arious marketing strategies adopted by Bajaj for /ulsar right from its inception and how they ha!e been instrumental in building the brand /ulsar. 5ight from its C#efinitely *aleD to its latest C/ulsar maniaD campaign. 1n the second section& we analy,ed the consumer beha!ior for /ulsar in terms of purchase beha!ior& buying roles and decision making process. We segmented the /ulsar brand into !arious categories according cc of engine and analy,ed the consumer beha!ior for each. We also had the support of !arious customer sur!eys& conducted by us as well as from some e0ternal agencies to substantiate the analysis. "his section helped us understand how Bike makers cater to !arious segments through !arious offerings and customer centric measures& in case of /ulsar these being C/robiking storesD and C60tended WarrantyD plans. 1n the third section we undertook the competitor analysis of /ulsar among !arious categories from !arious companies. We understood the !arious strategies taken by these companies for their products and the effect this had on the /ulsar sales. We understood the status and acti!ities of the competitors like .ero .onda& 8amaha& "42 and foreign competitors. 1n the fourth section we analy,ed the results of the sur!ey conducted by us with respect to different brands of bikes and compared them on some parameters like price& mileage etc. 1n the end& we concluded that Bajaj /ulsar 15% #"2i is the best bike in 15% cc segments o!er powering other bikes& which include 8amaha& "42 and other brands. Also& we were able to gi!e recommendations to Bajaj and other bike companies& which would help them in impro!ing the bikes and building a brand image. "hus o!erall& this project was an e0periential way to understand the concepts of marketing and how they are applied in the real world.
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6. R$3$R$N&$S 1. /ulsar 15%cc re!iews A www.mouthshut.com 2. /ulsar -lub 2ite A www.pulsarclub.com 3. Bajaj Auto site A www.bajajauto.com 4. Buying roles model by 8oram Wind& @rederick Webster A www.pro!enmodels.com 5. .ero .onda :ari,ma www.herohondakari,ma.com $. 8amaha 1ndia www.yamaha motor india.com 7. www.wikipedia.org 8. "42 *otors www.t!smotor.in
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doc_965751607.doc