INTERNATIONAL MANAGEMENT INSTITUTE, NEW DELHI

Bajaj Auto Limited

2014

Submitted By:

Lalit Shukla 14PGDM089

Nishit Gupta 14PGDM100

Sajal Singhal 14PGDM107

Vatsal Anand 14PGDM129

1 Overview 3

2 Transformation 3-4

3 Timeline 4

4 Pulsar 5

5 Product differentiation 5-6

6 Segmentation & Targeting 6-7

7 Positioning 8-9

8 SWOT analysis 9

9 PLC 10-11

10 Competition 11

11 Conclusion 11

12 References 12

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Overview
We identified Bajaj Auto Limited as the marketing company of our choice for the following project. Bajaj
Auto Limited was founded in the year 1945 and has been among the front-runners in the motorcycle
industry ever since. This very fact talks volumes about the company since only the best if firms survive
such a long time at the top. During the 60s, 70s and 80s there was a 10-year waiting period for its
products. The company only had to produce its quota. Marketing or sales was not too much of an issue
for them. Also the company’s owner was infamous for being part of the anti-liberalization lobby called
Bombay Club. However the firm faced a major crisis in the 90s and the early years of the new century
due to increased competition from both foreign and domestic markets. However 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 Pulsar.

The report chronologically shows the transformation of 2 wheeler market from scooters to motorcycles.
We are focusing on the strategies opted by BAL to segment, target and position its blockbuster product
“Pulsar” in Indian markets. We also look into the Product Life Cycle of Bajaj Pulsar. Lastly we look into
the future prospects of Bajaj Auto Limited as a whole.

Scooter to Bikes (Transformation)

 Company manufacturing same type of vehicles with quality and style from the past 40years.
 Bajaj Company never ever concentrates on product development
 Bajaj Company has not pay attention on customer requirements
 Lack of responsibility at decision, research and development and customer satisfaction
 New motor cycles were enter in to the market
 Young people population rapidly growing
 Latest technology and design available in the market

Why Bajaj Shifted from Scooter to Motorcycles?

"Bharat is changing, Buland is changing, Bajaj is changing.”For Hamara Bajaj, the big change came in the
late nineties when the onslaught of the "Fill it, Forget it" Hero-Honda tilted the two wheeler market in
favour of motorcycles overnight. The main factors driving this change were

 Demographic change: Soaring youth population.

 Economic change: Increase in disposable income.

 Technological change: Availability of technologically advanced motorcycles

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Bajaj Motorcycles
 1986 – Kawasaki Bajaj KB100
 1991 – Kawasaki Bajaj 4S Champion

 1996 - Bajaj SX Enduro

 1997 – (Bajaj KB125) Kawasaki Bajaj Boxer

 1998 – Kawasaki Bajaj Caliber

 2000 – Bajaj Prowler

 2001 – Eliminator, Bajaj Pulsar, Caliber Croma

 2003 – Caliber 115, Kawasaki Bajaj Wind 125, Bajaj PulsarDTS-i,

 2004 – Bajaj CT 100, Bajaj Discover DTS-i

 2005 – Bajaj Wave, Bajaj Avenger, Bajaj Discover 112

 2006 – Bajaj Platina

 2007 – Bajaj Pulsar-200 (Oil Cooled), Bajaj Pulsar 220 DTS-Fi (Fuel Injection), XCD 125 DTS-Si

 2008 – Bajaj Discover 135 DTS-i – sport (upgrade of existing 135 cc model)

 2009 – Bajaj Pulsar 135, Bajaj XCD 135 cc, Bajaj Pulsar 150 DTS-i UG IV, Bajaj Pulsar 180 DTS-i UG

IV, Bajaj Pulsar 220 DTS-i, Bajaj Discover 100 DTS-Si, Kawasaki Ninja 250R

 2010 – Bajaj Discover 150

 2011 – Bajaj Discover 125

 2012 – Bajaj Pulsar 200 NS, launch of 200 cc bike, Discover 125ST, launch of 125 cc bike

 2013 - Bajaj Discover 125ST

 2014 - Bajaj Pulsar 400SS, Pulsar 400CS,pulsar ss200

 2014 - Bajaj Discover 150F, 150S

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Pulsar
The '90s witnessed the birth of an emerging young India - the 'And' generation. Work hard, study
hard 'And' party hard. Western influence 'And' Indian values.
These young Indians' image of themselves was cool,
masculine and stylish. In their minds they were different from
the rest, and they wanted to ride a bike that matched their
personality, but all they got were ordinary 100ccs.
In 2001, Bajaj Auto launched a motorcycle with the intention
of introducing a new category and a new dimension in biking -
performance - and called it the Pulsar. The bike was launched
in two versions, 150cc and 180cc.The communication for the
product was based around the statements: It's a Boy and Definitely Male.

Product Differentiation:
1) Form:

 Color11: Plasma Blue, Cocktail Wine, Red Midnight, Black Misty, Grey Silver
 Pulsar 150cc, Pulsar 180cc, Pulsar 200cc and Pulsar with and without Fuel injection.

2) Design:

 Digital odometer, Digital speedometer, Digital fuel gauge and two digital trip meters
 First bike in India with 33 mm front fork for better shock absorbing facility.
 Split seat for better riding and sitting comfort.
 New petrol tank flaps give petrol tank an aerodynamic looks.

3) Features:

 Vertical stack twin projector headlamps

4) Durability:

 The muscular aerodynamic shape of Pulsar DTS-i and its 1350 mm of wheel base with 17" large
alloy wheels give this Bajaj bike a robust presence on the road.

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 Positioning
Targeting
Segmentation

Segmentation & Targeting:

 Rural and Urban Segment: - Pulsar has been targeted towards urban youth.

Demographic:

 Age: - Pulsar has been targeted towards youth.

Psychographic

 Lifestyle: - Bajaj pulsar is the fastest bike in India, it is targeted towards the people who love
speed and adventure.
 Personality: - Bajaj has teamed with Fast with Furious (movie) for promotion. This clearly shows
that pulsar is targeted to aggressive people. Pulsar is banking on its “The fastest Indian “tag.

Behavioral

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 Benefits: - Pulsar is the leader among the performance bikes. It has got features which no other
bike provides in India.
 User Status: - Pulsar has created a big hype among Indian youth. There are a lot of people who
are willing to buy the product.
 Readiness Stage: - This bike has got lot of attention among Indian youth10.
 Attitude toward Product: - Pulsar is very popular among bike enthusiasts.

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Positioning

Distinctily
Free Ahead
Biking
Digital
Biking
Definetely
Male

Hamara
Bajaj

Definitely Male

Bajaj stuck upon the Big Idea of India's He-Bike. Although lots of bikes take the persona of Macho bikes
it was more oriented towards being "sexy". The Big Idea was to position the bike as World's first bike
endowed with a Sex (Gender).Thus born the classic campaign of all
times “Definitely Male". The campaign together with the design and
performance catapulted the brand into stratospheric sales level.

Digital Biking

When DTSI was launched, the creative duty was assigned to Leo Burnett. Leo Burnett did a big mistake
on the brand by changing the positioning of “Definitely Male" to "Digital Biking". Although the ads were
successful in conveying the technological superiority of DTSI and making that acronym popular, it
deleted the most successful tagline from the brand's elements.

Free Biking

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After ruling the premium bike segment, Bajaj took their brand to another level. Bajaj launched Bajaj
Pulsar 200 Dtsi to take on the comeptition from Hero Honda and the like. Pulsar 200 is being launched
with a new campaign revolving round the concept of Free Biking. Free Biking (as defined by the brand
Pulsar) is all about tackling obstacles.

Distinctly Ahead

Bajaj now is using the corporate brand tagline “Distinctly Ahead", showing it distinct and ahead from its
competitor on the ground of the features and quality that Bajaj bikes
possess. Bajaj earlier had another corporate tagline “Inspiring
Confidence" when it completely redesigned its corporate logo and
brand.

SWOT Analysis

STRENGTHS WEAKNESS
1.Excellent brand name
2. . Extensive R&D focus 1. Mileage on a lower side due to focus on Power
3. High performance products across all categories 2. High cost in various variants
4. Product design and development capabilities 3. Styles and Design
5. Widespread distribution network 4. Pricing
5.The fuel tank capacity

SWOT
OPPORTUNITIES THREATS
1)Expansion to rural sector
2) Competing in the international market
3) Developmental changes 1.New Entrants
4)Bajaj as a true MNC 2.Competitors
. 3.Low Priced Bikes

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Product Life Cycle

Introduction

Chetak was launched in 1972 ruled the middle class life with a status of two wheelers. Chetak was an
avoidable gift to the newly married couple in 70’s and 80’s. It used to have a waiting list on delivery for
about 10 years.

Growth

Bajaj chetak has huge brand equity. The brand has a persona of “work horse”. With a reasonable price
affordable by the Indian middle class families. The low maintenance of the product made this product a
big hit in the automobile industry. With the slogan of ‘hamara bajaj’ it has gone in to millions of families
as a family vehicle.

Maturity

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No matter what the design and model is the brand name Bajaj dominated the design and model. Even
the customer had no objections about the model or the design as the brand name earned a lot of
durable trust in customers its strong body, low maintenance and good mileage is what the customer
attracted to.

Decline

The initial reason is that the Brand neglected the customers, another case of Marketing Myopia. The
company completely failed to understand the changing perception of the customers towards scooters.
Rather than looking at the customers, the company focused on influencing Government to block the
opening up of economy. Bajaj never seriously looked at customer perception about Chetak. The product
had serious problems like starting trouble and riding comfort. The "Tilting the chetak to the side for
starting" was a common joke. Did the company do anything for that? No!!!

Competition
Some of the major competitors of Bajaj with bikes in 150cc+ category which are a competition to Pulsar
are

 Hero MotoCorp.

 Honda.

 TVS.

Conclusion
Clubbing the sections of analysis of Bajaj Auto Limited has given us many insights into the two-wheeler
market as a whole and especially into the dynamics of Bajaj Pulsar. Through the environmental and
SWOT analysis of Bajaj Pulsar, we analyzed the external and internal factors shaping the growth and
sales of Pulsar and the various opportunities and threats it faces for its future. Various marketing
strategies adopted by Bajaj for Pulsar over the years and their role in building the brand Pulsar were
studied.Thus overall, this project was an experiential way to learn the concepts of marketing discussed
in class and how they are applied in a real case scenario.

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References:
 http://www.afaqs.com/news/story/25053_-Innovating-brands:-Bajaj-Pulsar
 http://en.wikipedia.org/wiki/Bajaj_Pulsar
 http://marketingpractice.blogspot.in/2007/04/bajaj-pulsar-definitely-male.html
 http://www.bajajauto.com/
 http://forbesindia.com/blog/business-strategy/a-pulsar-for-under-a-lakh/

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