Refer to the case study Bajaj Auto Ltd.s Brand Centric Strategy.

Do you feel justified with Rajivs decision to focus on twin brand strategy? Provide your argument supported by necessary external and internal analysis.

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I.

INTRODUCTION OF THE COMPANY

A. The Indian Two-Wheeler Industry The history of the Indian two-wheeler industry, comprising scooters, motorcycles, and mopeds, had its beginnings in the late 1940s, when Bajaj Auto started selling imported scooters (1948) and Automobile Products of India (API) along with Royal Enfield started manufacturing scooters (1955) and motor cycles respectively in India. In the evolution stage, the Indian two-wheeler industry was highly regulated by the Government of India (GOI) and was largely structured by Indian industrial policies. The License Raj system imposed a strict control on the industry by regulating the entry of new players, imports, and foreign investments. B. History of Bajaj Auto Founded in 1956, at the height of Indias movement for independence from the British, the group has an illustrious history. Theintegrity, dedication, resourcefulness and determination to succeedwhich are characteristics o the group today are often tracked back to its birth during those days of relentless devotion to a common cause. Jamnalal Bajaj, founder of the group, was close confidant and disciple of Mahatma Gandhi. In fact Gandhiji had adopted him as his son. The close relationship and his deep involvement in the independence movement did not leave Jamnalal Bajaj with much time to spend onhis newly launched business venture. His son, Kamalnayan Bajaj, then 27, took over the reins of business in 1942. He too was close to Ghandhiji and it was only after independence in 1947, that he was able to give his full attention to the business. Kamalnayan Bajaj not only consolidated the group, built also diversified into various manufacturing activities. The present chairman of the group, Rahul Bajaj, took charge of the business in 1965. Under his leadership, the turnover of the Bajaj Auto the flagship company has gone up from Rs. 72 million to Rs. 46.16 billion, its product portfolio has expanded from one to and the brand has found a global market. He is one of the Indias most distinguish business leaders and internationally respected for his business acumen and entrepreneurial spirit. This case is about the brand centric strategy that the fourth largest two and three wheeler manufacturer in the world, Bajaj Auto Ltd., adopted in 2009. The scooters produced under the
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Chetak brand name dominated the Indian two wheelers market from early 1970s to the early 1990s and helped Bajaj Auto became a leader in the industry. As the Indian Two wheeler Industry was deregulated and faced the competition in the 1990s, Bajaj Auto began to face a threat from foreign players. In addition, in late 1990s, due to the shift in consumer preferences and demand from scooters to motorcycles, Bajaj Autos sales and market shares started declining and posed a challenge of sustenance for the company. As a result, by the early 2000s, motorcycle sales surpassed that of scooters and Bajaj Auto lost its market share to Hero Honda. In an attempt to recapture market share, Bajaj Auto restructured its business and launched new motorcycle models. However, Bajaj Auto lost its dominance in the scooter market. Realizing the changing dynamics of the Indian two-wheeler industry and the deficiencies at Bajaj Auto, Rajiv Bajaj began to develop a new strategy for the company. He shifted the focus from scooters to motorcycles and emphasized enhancing the quality of products. With the twin- brand strategy, he focused in only two brands Discover and pulsar pulling back the Bajaj name, as it is associated with various other products. And with the change in strategy he was able to double his lost market share as well as sales. Bajaj Auto, which began in 1945 as a trading company, importing and selling two-and threewheelers in India, started vehicle manufacturing in 1959 by obtaining the rights from Italy-based Piaggio. Once the agreement with Piaggio2 expired, the company made and sold vehicles under the Bajaj name. Since the mid-1960s, under the reins of Rahul Bajaj, the thirdgeneration head of the company, Bajaj Auto began to grow and create the image of a reliable scooter brand in India. C. Managerial Style at Bajaj Auto Off late Bajaj Auto Ltd has emphasized a lot on organizational restructuring for the auto business. With this restructuring the exiting business roles and responsibilities at the company has strengthened and enhanced to ensure greater operational empowerment and effective management. The five pillars of this new structure (strategic units) are R&D, Engineering, Two Wheeler Business Unit, Commercial Vehicles Business Unit and International Business Unit. These pillars are being supported by functions of finance, MIS, HR, Business development and Commercial.
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D. Brand Centric strategy From the case we can observe that there is a shift in Bajaj Auto product life cycle that enjoyed tremendous growth in certain stage but due to lack of product differentiation, innovation and only focusing in cost leadership strategy the Bajajs faced an intense competition in the industry and nearly lost the business. So, to gain the lost position, growth and revival of their position in the two-wheeler market they needed some strategic move to capture that lost position or to set a new position in the mind set of the customer. And among the different alternative growth strategies, Rajiv chose product development strategy that was focused on the twin brand by developing a new product for the existing market with new features that is highly valued by the customers and proved to be the smartest move that doubled their market share in the existing two wheeler market segments. And to identify the growth strategies and the focus of Rajivs twin brand decision we should carefully analyze the external and internal environment. II. EXTERNAL ANALYSIS

To analyze the performance of Bajaj Auto, there is the need to analyze every factor related to the industry and market. And one of the important factors is the external factor that directly affects any strategic decision of the company. The external analysis deliberately commences with the customer and competitor that help define the relevant industry. A. Customer Analysis Customer Segment Segment 2003/04 Share* 2003/05 Share* 2008/09** Motorcycle 77.40% 79.70% 80.60% Scooter 16.70% 15.00% 13.90% Mopeds 5.90% 5.30% 5.20% Electric Two-wheeler 0.30% * Case Reference** Ibef.org, April 2010, Market Overview Automotives

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Segment A1 A2 A3 B2 B3 B4 C1

Description Scooter <75cc 75-125cc 125-250cc Motorcycle 75-125cc 125-250cc >250cc Moped

Share % 2001/02 5 58 12 62 5 1 10

Share % 2006/08 0 10 1 66 17 1 5

CAGR -33.9 32.9 -27.7 14.9 44.8 5.7 -2.7

B. Customer Motivation Growth is due to rural market demand. Segment Motorcycle Motivation Variations in models, enhanced technology, fuel efficiency Reason Demographic changes (growth younger population), economy growth, higher disposal income. Increase in the number of working women who prefers scooter as the mode of transportation

Scooter

Low Price andInexpensive, Lowmaintenance cost, long lasting, reliable. Less fuel consumption, manual paddling, gearless Eco-awareness

Mopeds

Electric Two-wheeler

Shortage of conventional fossil fuels

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A1

Scooter <75cc

Lower Price, light weight, low-fuel consumption, low maintenance cost Lower Price, low-weight, low-fuel consumption, low maintenance cost, higher mileage Powerful engine, self start, gearless, Variations in model, enhanced technology, fuel efficiency, light weight Variations in models, enhanced technology,quality, looks, sporty designs and appearance, speed, better performance Model variations, enhanced technology, sporty and adventurous design and appearance, high speed, Less fuel consumption, manual paddling, gearless

A2

75-125cc

A3 B2

125-250cc Motorcycle 75125cc 125-250cc

B3

B4

>250cc

C1

Moped

C. Unmet needs 1. Availability of back gear 2. Flexible height in same model 3. Theft protection technology 4. Safety of the biker rider 5. More powerful head-lights and stronger engines 6. Tubeless Tyres

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D. Competitors Competitors Identification Company Hero Honda Bajaj Auto TVS HMSI Suzuki Yamaha Royal Enfield Production Capacity (millions units) 5.4 3.9 2.4 1.6 0.3 0.6 0.7

Strategic Group Strategic Group Major Competitors Market Share (%) Large Player Hero Honda 45 Medium Scale Player TVS, HMSI 26 Small Scale Player Suzuki, Yamaha 4 Niche player Royal Enfield Source: Bikeadvice.com, 6 months data. Details are given below in Annex 1

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E. Strategic Group Analysis

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F. Major Competitors

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G. Competitor Strength Grid Two Wheelers Competitors in Indian Market Description Brand Recognition Price Distribution Channel Availability of service centers Sporty Look Warranty Re-sale Value India market Sales International Sales Hero Honda Bajaj Honda Yamaha Suzuki

STRONG LESS THAN AVERAGE

ABOVE AVERAGE WEAK

AVERAGE

H. MarketAnalysis Market Size

Year 2001 -2002 2002 -2003 2003-2004 2004 -2005 2005 -2006 2006-2007 2007 -2008 2008 -2009 2009-2010 2010 -2011 2011 -2012 Scooters 906,978 935,094 964,082 993,969 1,024,782 1,056,550 1,089,303 1,123,072 1,157,887 1,193,781 1,230,788 Motorcycles 2,183,785 2,576,866 3,040,702 3,588,029 4,233,874 4,995,971 5,895,246 6,956,390 8,208,540 9,686,078 11,429,572

Source: SumanTiwari , PESTLE Analysis of automobile sector of India, Lovely Institute of Management

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Sub Market 1. Sales Show Rooms 2. Service Centers 3. Spare parts production units 4. Spare Parts sales outlets 5. Protection gear outlets 6. Second hand and reconditioned bikes outlets 7. Fuel filling centers I. Environment Analysis Source Technological Regularity Description Global collaboration Liberation, open economy, globalization Growth High disposable Income High Proportion of increasing youth population New entrants Double-digit growth, growing market of higher CC (>180) bike. High Importance High High

Economic

High

Cultural Demographic

Threat Opportunity

High High

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J. Porters 5 forces model

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Porters Five Forces Analysis: Supplier Bargaining Power: Suppliers of auto components are fragmented and are extremely critical for this industry since most of the component work is outsourced. Proper supply chain management is a costly yet a critical need. Buyer's Bargaining Power: Buyers in automobile market have more choice to choose from and the increasing competition is driving the bargaining power of customershigher. With more models to choose from in almost all categories, the market forces have empowered the buyers to a large extent. All these have been helped by the fact that the customers are well informed about the products as well through the help of Internet, i.e. customers have product information. Industry Rivalry: The industry rivalry is extremely high with any product being matched in a few months by competitors. This instinct of the industry is primarily driven by the technical capabilities acquired over years of development under the technical collaboration with international players. Substitutes: There is no perfect substitute to this industry. Also, if there is any substitute to a two-wheeler, Bajaj has presence in it. Cars, which again are a mode of transport, do never directly compete or come in consideration while selecting a two-wheeler. However, with the recent introduction of Tata Nano cars that come at a very cheap rate, they are slowly trying to be a substitute and a threat to the two-wheeler industry. Cycles do never even compete with the low entry-level moped for even this choice comes at a comparatively higher economic potential. Summarizing the industry analysis, it can be said that the two-wheeler market is attractive as it scores well on three out of five categories. Entry Barriers: There are high barriers to entry. The market runs on high economies of scale and on high economies of scope as well.
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Bajaj Auto Ltd: Two brand strategic analysis

Need for technical expertise is high and thus a new entrant will have a huge uphill task. Owning a strong distribution network is very important and is very costly which certainly takes a lot of time and energy. There is also involvement of huge cost. All these make the barrier high enough to be restraining for any new entrants in the market.

K. Distribution Showrooms o Company owned show rooms o Franchised show rooms Dealers/Agents Service Centers

Note: Bajaj Auto has a network of 422 dealers and over 1,300 authorized service centers. The company plans to increase the number of dealers to 500 by this financial year. A large number of these new dealerships are planned in semi-urban & rural areas. L. Market Trends and Development The Indian two-wheeler industry has come a long way since its humble beginning in 1948 when Bajaj Auto started importing and selling Vespa Scooters in India. Since then, the customer preferences have changed in favor of motorcycles and gearless scooterettes that score higher on technology, fuel economy and visual appeal, at the expense of metal-bodied geared scooters and mopeds. These changes in customer preferences have had an impact on fortunes of the players. The erstwhile leaders have either perished or have significantly lost market share, whereas new leaders have emerged. Rising income levels, reducing excise duties, higher loan tenure and loan-to-value offered by the financing companies have all fuelled the growth of two-wheeler sales in the country. Besides, mounting traffic chaos and limited parking space has also increased the demand for twowheelers from households that can afford or actually do own a car. Furthermore, with increasing women working population, changing social philosophy and broad-mindedness, the penetration

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of two-wheelers that is currently at awfully low level is expected to increase significantly going forward. Abundant and low cost lab our coupled with local availability of raw materials like steel, aluminum and natural rubber has placed India amongst the low cost producing centers of twowheelers. Consequently, it anticipates buoyant growth in two-wheeler exports as well. M. Key Success Factor 1. Style 2. Technology 3. Pricing strategy III. A. Performance Analysis Portfolio Analysis BCG Matrix Analysis MARKET SHARE Stars H i g h INTERNAL ANALYSIS

Problematic Child

G R O W T H R A T E

Pulsar 150 and 180cc Discover

Cash Cows

XCD 125 Pulsar 200 and 220cc Blade

Dogs

L o w Platina CT 100 High Low Avenger Kristal

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B. Strength of Weakness SWOT Let's analyze the position of Bajaj in the current market set-up, evaluating its strengths, weaknesses, threats and opportunities available. Strengths: Has a highly experienced management that has a good history and reputation. Extensively focused on R & D. Capable of better product design and developments Widespread distribution network. Products across all categories have a performance that is high and noteworthy. The export to domestic sales ratio is high. Great financial support network (For financing the automobile) High economies of scale. High economies of scope. Weaknesses: Hasn't employed the excess cash for long. Still has no established brand to match Hero Honda's Splendor in commuter segment in spite of introducing several bikes for that segment. Not a global player in spite of being the highest exporter from India. Not a globally recognizable brand (unlike the JV partner Kawasaki or other brands like Honda).

Threats: The competition catches-up on any new innovation in no time. In spite of low quality motorcycles, a sense of threat always exists from those imported motorcycles.
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 Margins getting squeezed from both the directions (Price as well as Cost) TATA Nano and other mini-compact cars have started to become a serious threat to the two-wheeler industry in whole. They seem to have come into existence to replace the two-wheelers. Opportunities: Double-digit growth in two-wheeler market. Untapped market above 180 cc in motorcycles. More maturity and movement towards higher-end motorcycles. The growing gearless trendy scooters and scooterette market. Growing world demand for entry-level motorcycles especially in emerging markets.

C. Marketing Strategies - Twos Matrix for BAL

External factors Strength Opportunities weakness

External Factors

Can use the existing R & D capabilities for new models. Can use Kawasaki's distribution networks internationally.

Must employ the cash in production and product capabilities to match competitors and for continuous export growth.

Threat

Increase the customer centric initiative and command more customer loyalty. Improve the efficiency of the financing and the insurance arm. Invest in new product platforms. Actively market electric range internationally.

Invest in building world class bikes to sustain the international markets independently in the coming years like WIND 125

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D. The Marketing Mix

The four P's

PRODUCT Product Variety, Quality, Design, Features, Brand Name, Packaging, Sizes, Services, Warranties, Returns PRICE Least Price, Discounts, Allowances, Payment Period, Credit Terms Promotion Sales Promotion, Advertising, Sales Force, Public Relations, Direct Marketing

PLACE Channels Coverage, Locations, Inventory, Transport

E. Characteristics of Internal Organization MISSION Focus on value based manufacturing Fostering team work & enhancing the capability of the team Continual Improvement Total elimination of wastes Pollution free & safe environment

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VISION To attain World Class Excellency by demonstrating Value added products to customers Source: Bajaj Auto Ltd. Website CULTURES AND VALUES BRAND IDENTITY Brand is the visual expression of our thoughts and actions. It conveys to everyone our intention to constantly inspire confidence. Customers are the primary audience for their brand. Indeed, their Brand Identity is shaped as much by their belief in Bajaj as it is by their own vision. Everything they do must always reinforce the distinctiveness and the power of their brand. They can do this by living their brand essence and by continuously seeking to enhance their customers' experience. In doing so, they ensure a special place for themselves in the hearts and the minds of customers. BRAND ESSENCE Brand Essence is the soul of their brand. Their brand essence encapsulates their mission at Bajaj. It is the singular representation of terms of endearment with their customers. It provides the basis on which they grow profitably in the market. Their Brand Essence is Excitement. Bajaj strives to inspire confidence through excitement engineering. Blending together youthful creativity and competitive technology to exceed the spoken and the implicit expectations of customers. By exploring the unknown and thereby stretching themselves towards today and tomorrow.
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BRAND VALUES They live their brand by values of Learning, Innovation, Perfection, Speed, and Transparency. Bajaj will constantly inspire confidence through excitement engineering. Learning is how they ensure proactivity. It is a value that embraces knowledge as the platform for building well informed, reasoned, and decisive actions. Innovation: Innovation is how they create the future. It is a value that provokes them to reach beyond the obvious in pursuit of that which exceeds the ordinary.

COMAPANY STRUCUTRE R D Engineering Two-wheeler business unit Commercial vehicles business unit and International business unit

CUSTOMER Focus value 1. Innovation 2. Speed 3. Perfection Source: http://www.slideshare.net/jsunil07/project-on-bajaj-auto-ltd-5530179 THE INVETIBALE CHANGE Bajaj on internal analysis found that it lacked 1. The technical expertise to deliver competitive goods.

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2. The design know-how. 3. And the immediate inability to support the onslaught of competitors. All these forced Bajaj to look for an international partner who could bring in technology and also offer some basic platforms to be manufactured and marketed in India. Kawasaki of Japan is a world-renowned manufacturer of high performance bikes. Bajaj entered into a strategic tie-up with Kawasaki in late 1990s to enhance its product line and knowledge up-gradation to support long-term strategies. This served the purpose of sustaining the market competition for a while. From 1996 to 2000, Bajaj invested hugely in infrastructure while simultaneously developing product design and innovation capabilities, which is the prime reason behind the energetic Bajaj of 21st century. Bajaj introduced a slew of products right from entry-level motorcycle to the high premium segment right from 2001 onwards, and since then its raining success all the way for Bajaj. Last quarter, Bajaj had impressive performance growing at a rate of 20% when the largest manufacturer grew at just 6%. This stands a testimony to the various important strategic decisions over the past decade.

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MARKET OVERVIEW Automotives April 2010

Market segments
Automobiles

Two-wheelers

Passenger vehicles

Commercial vehicles

Three-wheelers

Mopeds

Passenger cars

Light commercial vehicles (LCV)

Passenger carriers

S cooters

Utility vehicles

Medium and heavy commercial vehicles (M & HCV)

Goods carriers

Motorcycles

Multi-purpose vehicles

market overview (1/2)

S ource: Industry sources

Electric twowheelers

ers have grown al growth rate from 6.5 million units s in 200809.

10 Domestic sales of two-wheelers in 200809

2008-09 2007-08 2006-07 2005-06 2004-05 0.00

6.80 6.50 7.11 6.20 5.19 2.00 4.00 0.98 6.00

1.15 1.07 0.94 1.02 0.34 8.00 Moped 0.37

0.43 0.43

stitutes more than 80 market.

0.37

nes account for up to

to the launch of fuel-

10.00

million units Motorcycle S cooter S ource: S IAM

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market overview (2/2)

Two-wheelers segment-wise share of production (200809)

ustry is the orld after

mited, the s the worlds mpany.

S cooters Mopeds Motorcycles Electric twowheelers

13.9% 5.2% 80.6% 0.3%

ral aunches and

exports (2/2)

S ource: S IAM

e the developing d Latin America.

Two-wheelers company-wise share of exports (200809)

Bajaj Auto 63%

der in exports with a share TVS Motor Company and d.

TVS Motor Company19%

Hero Honda Motors

12

8%

Growing disposable income

Honda Motorcycle & 5% S cooter India Others 4%

ration specially in and rural areas

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14

F. Current Situation & Current Performance BAL was currently outperforming the industry growth rate in two-wheeler segment with 32% growth in year 2004-05 v/s industry growth of 19%. Market share in Motorcycles has been improving with every passing year. It had also increased from 28% in 2004-05 to 31% in 200506. Annual turnover for the year 2005-06 is Rs. 81.06 billion v/s Rs. 63.23 billion a year before - an increase of 28%, which is very healthy. BAL has significant presence in all the three basic segments - Price Segment, Value Segment and Performance Segment - and has been showing increased sales in all the segments over years. Besides this, BAL is a market leader in two-wheeler exports and it consists a great chunk of there overall revenues. Currently, BAL is selling over 1 lac motorcycles annually in Sri Lanka, further, they are commanding 50% market share in Central America.

G. Profile Change in Indian Two-Wheeler Industry The demand shift from scooters to motorcycles in the 1990s was without parallel in any comparable product category in India. This was mainly attributed to the change in customers' preference towards fuel-efficient and aesthetically appealing models, which scooter manufacturers failed to provide. The delayed launch of new, advanced scooter models, fear of four-stroke scooters being prone to increased skidding risks and vibrations, and the difficulty of maintenance also contributed to this shift.

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Interestingly, the growth in the motorcycle segment was mainly driven by the demand from rural and semi-urban consumers. An estimated 60% of the demand for motorcycles came from rural and semi-urban customers. The rise in their disposable incomes on account of good monsoons in the 1990s provided the normally conservative rural and semi-urban customers with extra money that induced them to experiment with new, innovative products. Shift from Scooter to Motorcycle
Year 1993 1994 1995 1996 1997 1998 1999 2000 Total in '00 1503.36 1770.22 2209.23 2660.04 2963.49 3042.85 3403.43 3745.55 Overall Growth -6.4 17.75 24.8 20.41 11.41 2.68 11.85 -0.8 Scooter Units 709.73 840.17 1033.52 1223.43 1301.05 1262.7 1325.87 901.88 Motor cycle Units % 379.06 25.2 472.58 26.7 652.01 29.5 809.53 30.4 978.68 33 1131.31 37.2 1395.66 41 2156.03 58 Moped Units 414.57 457.47 523.7 627.08 683.76 648.84 681.9 687.64

% 47.2 47.5 46.8 46 43.9 41.5 39 24

% 2 2 2 2 2 2 2 1

Advanced technology, larger wheelbase, higher ground clearance and the ability to ride on bad roads with less effort and less danger of skidding and decreased maintenance cost were the other factors that encouraged customers to choose motorbikes over other two-wheelers.

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IV. BAL STRATEGY ANALYSIS AND CONCLUSION A. Analyzing Two Brand Strategy of Bajaj Auto Ltd Rajiv Bajaj after taking over the management of Bajaj Auto Ltd. adopted the new branding strategy and with this strategy Bajaj Auto has been doing quite well compared to how they were performing in the market. While analyzing the two-brand strategy it is found that the major focus of this strategy is to redefine the positioning of the Bajaj Auto Products. Theoretically

describing positioning refers to how the brand is perceived in the mind of the customer. In other words, what does the customer think of the brand. Positioning is all about creating a perception of the brand in the mind of the customer or providing an experience to the customer that develops the brand image in customer mind. In other word we can say positioning is what we do to the mind of the customer and not what we do to the product in the factory. The positioning helps to create unique image of the particular brand. Bajaj was making a lot of different items starting from bikes to lights to fans to insurance to finance, auto rickshaw. This was creating confusion in the mind of customers. To change this situation Rajiv Bajaj wanted to change the positioning of Bajaj Bikes. The Bajaj umbrella was only providing financial advantage but it was not allowing forming a distinct image of its product in mind of customer and it is in the mind of the customers where all the marketing battles are lost and won and not in the retail stores. The essence of branding and positioning is to distinguish the product from other products. In case of Bajaj, its own wide range of products was creating confusion in the customers mind. Moreover, Bajaj was synonymous to Chetak Scooter and the auto rickshaws and from the various data also we have seen that due to shift in the customer preference, the sale of scooter was declining and the sale of motor bike was increasing. The Bajaj Umbrella was giving too many meaning and because of this the customers point of view was confusing. This was not helping the cause of Bajaj Auto. The competition was increasing and the sales of Bajaj were declining.

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Rahul Bajaj with the aim of improving the situation adopted two brand strategies. Under this strategy Pulsar and Discover was put onto major focus of the positioning venture. Rahul decided to drop the word Bajaj from these bikes to reposition these brands. The company started advertising only Pulsar and Discover and did not use the phrase 'Bajaj Auto' to market either. This effort was started being noticed and recognizedslowly. Highly differentiated target groups (TG) for Pulsar and Discover is the prime reason behind the effort to divorce these sub-brands from the parent brand, Bajaj Auto. Efforts were aimed at making these two individual brands stronger than the parent brand and to position them as brands in their own right. Bajaj had designed Pulsar and Discover for two extreme ends of the consumer spectrum. The target group for Discover was 'the commuter' as it stands for balance, responsibility and all things homely. Conversely, Pulsar, 'the performer', symbolized arrogance, irreverence and attitude and hence categorized in the sports category. The styling, imagery and tonality of the brand were stressed on in the case of Pulsar.

Others Oct sales Data For Domestic 8% Market

3w 16%

Pulsar 28%

Discover 48%

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Rebranding of Hamara Bajaj

Bajaj Company made sure that the mind space and level of engagement are very conventional for Discover as opposed to those of Pulsar. Even the media that they choose differ markedly for the two - Discover uses conventional advertising and Pulsar uses newer techniques such as Advertiser Funded Programming (AFP) and digital advertising. With this approach the company was successful to categorize and position the two vehicles as separate brands. This helped Bajaj Auto in its growth of sales. They have been doing extremely well compared to its competitor in international market. In domestic market also they have been able to close the gap with the market leader Hero Honda. B. Conclusion:

From the analysis we can say that Rahul Bajaj was correct in adopting the two brand strategy. This has increase market share of Bajaj Auto Ltd. With this approach Rahul has successfully created a separateposition for its motorbikes. Today the reason why consumers buy a Pulsar is because it is a Pulsar, not because it belongs to Bajaj.

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V. Annex
Annex 1: Monthly Bike sales volum Manufacturer Hero Honda Bajaj TVS HMSI Yamaha Suzuki June 365,734 165,697 115,448 103,000 17,878 12,734 July August September October November December 401,290 249,795 142,553 354,156 249,681 131,000 381,378 242,390 120,844 375,838 219,920 119,701 Total sales % Share 45 25 15 11 2 2

366,808 415,137 192,835 182,441 120,994 126,842 112,855 96,149 17,316 19,508 12,585 13,030

2,660,341 1,502,759 877,382 624,008 26,394 26,879 17,055 13,612 138,642 15,719 16,000 14,745 14,806 99,619 Total Sales of bike for seven months of 2009 5,902,751

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