REPORT

On

Bajaj Pulsar

Submitted By

Pulkit Agrawal

Roll No 63

(Section - B)

Introduction
Pulsar is one of favourite brands both as a biker and a marketer. This bike has virtually redefined biking in this country. Pulsar launched in 2001 is the market leader in the 150 cc + performance bike segment. More than that, this brand changed the fortune of Bajaj Auto Ltd.

Brand owned by Bajaj Auto IndiaDeveloped byProduct engineering division of Bajaj Auto Japanese design house Tokyo R&D Before the introduction of thePulsar, Indianmotorcycle market trend wasFuel efficient Small capacity motorcycles 80-125 cc classexcept forEnfield Bullet,bigger motorcycles withhigher capacity did not exist. Bajaj was known for Bajaj Scooters Hamara Bajaj Kawasaki Bajaj failed to make a mark. No success in the motorcycle segment whereHero-Hondawas the undisputed leader

In 1999 Hero Honda launched CBZ in 150cc. The launch & success of CBZ created a new segment for 150cc Bikes. Bajaj took the cue from there on & launched the Pulsar twins in India on November 24, 2001. Hero Honda created a new segment of 150 cc performance segment with its CBZ. But Pulsar came and gave a new life into the Performance segment. Although not a pioneer, Pulsar made the performance segment one of the fastest growing segment in the two wheeler market It was not only the bike's performance that triggered the brand becoming an icon [USP] A major part of the success was due to the classic advertising campaign by O&M [UCP] The new product from Bajaj was distinctly different Bajajs first bike without Kawasaki label. R&D and design marvel O&M stuck upon the Big Idea of India's He-Bike Although lot of bike 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)

It was not only the bike's performance that triggered the brand becoming an icon, a major part of the success was due to the classic advertising campaign by O&M. According to agencyfaqs, the birth of the "Definitely Male" campaign is interesting. The creative honchos found the new product from Bajaj distinctly different. It was Bajaj's first bike without Kawasaki label. The new bike was an R&D and design marvel.Pulsar was designed by the

renowned design house Tokyo R&D. O&M knew that the communication of this brand should also be different.Starting with lot of ideas, O&M stuck upon the Big Idea of India's He-Bike. Although lot of bike take the persona of Macho bikes it was more oriented towards being "sexy".

Product Timeline2001 The original Pulsar came with150 cc / 180 ccAir-CooledSingle-Cylinder1,235 mm wheelbaseSingle Spark Plug4Stroke EngineDisc Brake

2003 The second generation Pulsars featuredDTSi technology Increased power Increased fuel economyNew assembly1,320 mm wheelbaseStandard twin-tone hornTrip meter headlamp

2005 Bajaj launched another upgrade of the Pulsar featuringDTSi technology17 inch alloy wheelsStance lowered by 12 mmGas-filled Nitrox absorbers1,320 mm wheelbasePower output increased15 litres fuel tank

2006 Bajaj introduced another version of Pulsar featuringPilot lampsFlush LCD screenTwin-stripe LED tail-light assemblyBacklit switchesNoncontact speed sensorIncreased torqueImproved gear box

2009 Bajaj began sellingPulsar220 DTS-Fi

Pulsar200 DTS-i

Pulsar 135 DTS-i

Fuel injectionOil cooled enginesDigital Speedometers Modern styling Pilot lamps Twin-stripe LED tail-light assembly Backlit switches Non-contact speed sensor Increased torque Improved gear box

2012 Bajaj launched Pulsar 200 NS featuring-

Bajajtargeted the 18-24 withPulsarbut laterfound that the brand appealed to a much olderaudience

SegmentationProduct Pulsar 135 DTSi Tagline Light Sports Positioning Rural+Urban Target Segment Big-looking bike, mileage as well and hence will be content with a less powerful engine.

Pro-bikers Masculine& performance Pulsar 200 NS Digital Biking Urban Masculine, Thrill loving Pulsar 220 DTS- Fastest Indian Urban Speed, Stunt, Sport Fi Lovers This helped Bajaj to change its target audience to 16yrs& above. Unlike its old ways of doing things, Bajaj did not rest with the laurels. It knew that Pulsar is the golden key to control the entire bike market. Hence Pulsar got undivided attention from the company, 2001: 150cc & 180cc 2003 :DTSi 2004 & 2005 : Cosmetic changes 2009 : 200cc & 220ccDTS-Fi 2012 : 200 NS

Pulsar 150 DTSi Pulsar 180 DTSi

Definitely Male Rural+Urban Distinctly Ahead Urban

Product Life Cycle-

Pulsar was introduced in 2001. From the beginning it grabbed the market and got tremendous growth. It almost ended the decade long reign of Hero Honda splendour within 1 year and opened the premium bike segment wide open. Its 180 cc version was for youth loving power & speed. The option available at that time CBZ (150) or Bullet (350cc. It gave youth new genre to explore. In 2003 Bajaj launched its DTSI version which was a technological marvel. Its performance & average both were increased. As a result sales increased. In the mean time Bajaj seeing the positive response launched its new version with alloy wheel in 2005.The slowdown in pulsars market now again turned to growth. Then in 2005 pulsar came up with cosmetic changes they also launched pulsar 220 which was targeted to high end customers. Since then it is in maturity phase. In 2009 pulsar came up with 135 cc version with entry level market. This was not a great success but was not a failure either.

BCG Matrix-

Stars- Stars represent business units having large market share in a fast growing industry. They may generate cash but because of fast growing market, stars require huge investments to maintain their lead. Pulsar 220Fi is a star product because demand of sports bikes is increasing day by day. Pulsar 220Fi is among prominent players. Pulsar 180 is also a star product because there is no other competitor in this CC segment. Cash Cows- Cash Cows represents business units having a large market share in a mature, slow growing industry. Cash cows require little investment and generate cash that can be utilized for investment in other business units. Pulsar 150 is one of the most selling bikes in India. It is far more than TVS Apache, HERO HONDA CBZ, Hunk, HONDA Unicorn.

Question Marks- Question marks represent business units having low relative market share and located in a high growth industry. They require huge amount of cash to maintain or gain market share. They require attention to determine if the venture can be viable. Question marks are generally new goods and services which have a good commercial prospective. Pulsar 135 has not got good response till now. Pulsar 200NS is a new launch in the market. We cannot predict it now. Dogs- Dogs represent businesses having weak market shares in low-growth markets. They neither generate cash nor require huge amount of cash. Due to low market share, these business units face cost disadvantages. Pulsar 200 was a failure by SBU Pulsar. It was a technology failure also.

PHASE 2

Setting the price: Step I: Selecting the price objective

The objectives are survival, maximum market share and product-quality leadership. For these purposes the features were set as that of CBZ, Unicorn, Apache, FZ but the prices were kept a bit lower, which helped Pulsar to enter the market and gain maximum market share. Maximum Market Skimming: Skimming is referred to as selling a product at a high price; basically companies sacrificing sales to gain high profits. This is employed by companies in order to reimburse their cost of investment put into the original research of the product. This strategy is often used to target early users of a product/service because they are relatively less price sensitive than others. Early users are targeted either because their need for the product is more than others or they understand the value of the product better than others. In any case, this strategy is employed only for a limited period of time as a way to recover most of the investment of a product. This is the reason why the prices of Pulsar were dropped within two years and consumer surplus of early adopters were captured.

Step II: Determining the demand Price sensitivity:

Due to the presence of many bikes in the same price range the elasticity of demand was very high. Hence with the decrease of prices, the amount of sales increased in volume. The amount of sales in 2010 was 165049 units. Along with other market conditions, with the introduction of a lower version at a cheaper cost sales increased to 269488 units in 2011.

Step III: Estimating Cost

In the short run companys pricing strategy was to earn more profit and in the long run to invest that money for the technological advancement such as DTS-i technology.

Step IV: Analyzing competitors cost, prices and offers

From the mistakes of Hero Honda CBZ, Honda Unicorn, TVS Apache, Yamaha Fazer, FZ, Bajaj Pulsar was able to take share away from the market pioneer of power bikes in India, and command the price premium in the process because of its performances advantagessmoother driving experience.

Step V: Selecting a pricing method

Bajaj did a mix of pricing methodology of Going Rate Pricing and Value Pricing. It set its price slightly lower than its competitor following going rate pricing without compromising on any of the features provided by its competitor to attract value-conscious customers.

Step VI: Selecting the Final Price

While selecting the final price, Bajaj did set its price lower than its competitor to share the risk of launching a new product in the market.

Promotional Pricing:
Special event prices were offered during festival seasons. Zero interest financing was offered for some speculated period to attract customer. Longer payment terms were provided to the customer so that the EMI would be less. Three free service contracts were offered at the time of purchase.

Hero Hondas Hunk, CBZ X-Treme and Hondas unicorn share the same engine. Unicorns 149.2cc was the least power producer yet it scores full points for its refinement. Unicorns engine develops 13.3bhp at 8000rpm and 12.75Nm of 6500rpm. Hero Honda offers the same engine with little more power (0.8bhp) for both the Hunk and the CBZ X-treme. Pulsar 150cc engine is one of the best engines made by the bajaj. The twin spark 149cc engine produces 14bhp at8500rpm. Suzuki GS 150R is an air-cooled 4 stroke, SOHC with a displacement of 150cc with max power of 13.8 bhp @ 8500 rpm and max torque of 13.8Nm @6000 rpm. The transmission is 6 speeds with front disc brake and rear swing arm type coil spring which is oil and gas dumped. The fuel tank capacity is 15.5 liters with a ground clearance of 160mm weighing and 149 kgs (curb mass) The Suzuki GS 150R comes with the features like digital speedometer with dual modes , rear suspension with separate reservoir Tank, sporty headlight , LED tail Lamp and integrated Rear turn Signal and new engine design with SJCS (Suzuki Jet cooling system) I took a TD of the Suzuki GS 150R the pros that i noted was:-The engine was refined thereby giving a smooth ride the pick up was good Gear shifting was smooth Front disc brake had a good grip Stylish Sporty Design 6 Gears On road mileage of 45-50 kmpl Engine Balancer technology to reduce the vibration caused by the engine. TVS Apache RTR is powered by a 160cc engine which produces15.2bhp at 8500 rpm and 13.1Nm at 6000 rpm. Clearly, Apache RTR is the best among the traits in terms of performance. Apache RTR has higher power to weight ratio 111.7bhp/ton. Apache can push the red line even up to 12000rpm. The extra 10cc plays a main role for the RTR and it is the only bike in the segment capable of breaching the

110kmph mark with appreciable control. All the bikes in the 150cc segment breathes through CV carburetor, in India. All the bikes Pulsar, Unicorn, CBZ Xtreme, apache RTR and Hunk features 5-speed (1-down 4-up pattern) gearbox. Their way of functioning and design varies. Apache RTR, Hero Honda Hunk and CBZ Xtreme targets young customers and hence gear shifting is through toe levers. In Unicorn and Pulsar 150cc it is through heel and toe levers. The Indian market and the marketing strategy have become the latest marketing buzz word for most of the bike majors. They added the strategies of different bike companies for capturing Hubli city market like Bajaj, Hero Honda, TVS, Honda, Yamaha, Suzuki. Factors such as strong distribution network and market awareness are few prerequisites for making an impression in the bikes market. The characteristics of the market in terms of low and spread out population and limited purchasing power make it a difficult market to capture. The Bottom of the pyramid marketing strategies and the 4 A's model of Availability, Affordability, Acceptability and Awareness provide us with a means of developing appropriate strategies to tackle the market.

Bajaj Pulsar- Promotion

Pulsar was the bike that was launched by Bajaj Auto without the collaboration of the Kawasaki Company. Also, this bike was a technological and a designing marvel. The creative promotion campaign for Bajaj Pulsar was handled by the renowned advertising agency Ogilvy and Mather. The creative team decided to endow the bike with a gender. Taking this idea into consideration, the campaign with a tagline called Definitely Male was launched. The promotion campaign, coupled with the design and the performance of the bike, helped the company in achieving excellent sales numbers for the Pulsar bike.

Bajaj Pulsar- Promotion Transitions

When Bajaj Auto launched the new DTSi technology for the Pulsar bike in the year 2003, the creative promotion responsibility was assigned to another agency called Leo Burnett. Leo Burnett changed the positioning of the brand from Definitely Male to Digital Biking. When Bajaj Auto launched the Pulsar 200 version, the promotion campaign was focused on the concept of Free Biking. According to the definition of brand Pulsar, free biking is all about tackling obstacles. The expensive ad for this campaign was shot in Havana, Cuba. The underlying theme of the ad is to how two Pulsar riders discover a new route when the main road is blocked by a traffic jam. Bajaj Pulsar is also associated with a reality show called Stunt Mania that is aired on MTV channel. This show targets the audience in the age group of 18 and above. This show also mentions about bike maintenance and rider safety.

STP and SWOT Analysis:

Brand Name
Parent Company Category Sector Tagline/ Slogan USP

Bajaj Pulsar
Bajaj Auto Motorcycles Two-wheeler Definitely Male, The Fastest Indian Powerful engine and good pickup

STP
Segment Target Group Positioning Young boys looking for fast sporty bikes for Indian roads Young boys in the age 18-30 middle class The No.1 Sports bike in India

SWOT
1. Excellent brand name 2.High product quality 3.High performance, speed and pickup 1. Mileage on a lower side due to focus on Power 2. High cost in various variants 1. Expansion in rural and tier-2 cities 2. Cost management thus reducing the price of the bike 3. Developmental changes thus reducing bike's weight 1. New entrants 2. Competitors

Strength

Weakness

Opportunity

Threats

3. Low cost bikes from china Competition 1.Karizma 2.CBZ 3.FZ

Competitors

Marketing Channels Key markets :

Bajaj auto is Dominant player in Indian market .The best selling market being Punjab, Delhi & NCR, UP, Bangalore and Maharashtra. The company exports its products to Sri Lanka, Bangladesh, Philippines, Latin America, Colombia, Peru, Mexico, Africa and the Middle East.

Manufacturing locations
Akurdi, Pune 411035

Bajaj Nagar, Waluj Aurangabad 431136 Chakan Industrial Area, Chakan , Pune 411501 Pantnagar , Uttarakhand

Distribution network
For distribution bajaj auto uses mix of depots and Cnf agents. This is completely dependent on the distance of manufacturing location from dealer point .For example due to extensive distance from manufacturing plant from west Bengal to north-east India, there exist a depot in Khadagpur with capacity of housing 800vehicles. There are similar depots in Punjab, Rajasthan and southern India.

Dealers
Bajaj has total of approx 498 dealers 1500 authorized service stations and 1400 rural outlets for population of below 25000

Transport and Logistics

This function is not owned by bajaj auto in any form. This is outsourced to third party vendor. The third party here is TCI along with some others like OSL, Jamuna trasport and Sumit transport-Logistics to the vendor is decided by the company-A Transit insurance compliance is signed between the two parties-Freight charges are included in product price

IT linkage
Bajaj rides the SAP advantage. In year 2000 Project 110 percent was launched to spearhead Bajajs growth in the future. Bajaj auto has linked 386 dealers out of 498 and 165

suppliers out of 198.Business information is available to company external community in real time. The dealers can get real time information, unstructured information like news items, new product releases, dealer discussion group and internal market place. On operational activities and also the company can monitor the external members. The suppliers gets up-to date information on purchase order, contracts and material schedule.
Here we take a look at the Marketing Mix or the 4 Ps of Bajaj Pulsar which made it the most popular bike among the Indian consumer.

PHASE 3
Marketing Mix :
Product
A combination of technology and engineering, Bajaj Pulsar offers a great combination of technology, style, comfort and safety. Along with smashing looks the bike has great technology working inside. It provides for a true digital experience. With the Digital Twin Spark Ignition Technology (DTS-i) patented by Bajaj Auto the bike provides a consistent output any time any place. The Digital CDI making up the DTSi allows the rider to reach pole position whenever he desires. The engine allows carrying heavy loads and ensures improved engine torque which optimizes engine performance. TRICS III and Constant Velocity Carburettor are some other features that provide high performance and less hassless. It is a great bike for people looking for power and efficiency for a comfortable ride on the Indian roads. It provides for easy top gear driving with less gear changes and instant pickup in any gear. NitroX-Nitrogen assisted rear gas shockers give a cushion feel and ExhausTEC technology allows easy drivability in Indian city traffic conditions. The bikes low speed & high gear combination offers phenomenal ride. The bike provides rip roaring power without compromise on mileage with an average of 50-55 Kmpl in city conditions and 62 Kmpl on Highways. In sync with its Definitely Male look the bike is a robust one with stronger alloy

steel wheel base and smaller wheel radius (17"). Moreover, it has a famed line-up of various products PULSAR 135 PULSAR 150 PULSAR 180 PULSAR 200NS PULSAR 220F

Place
For Bajaj Auto, the supply chain encompasses the process from vendors to the final customers via manufacturing. Therefore, the Companys supply chain involves as much the vendors and the procurement-to-payment logistics, as it does the manufacturing to selling process, or the order to cash system. Bajaj has developed/created distribution channels which ensure the availability of Pulsar to buy wherever and whenever the consumers wishes to purchase it. Sales of bike depends heavily upon its availability, with market research

showing that well over 60% of all purchases are made on impulse. Consequently, Bajaj tries to supply as many outlets as possible for the dealers. Point of sale merchandising is also important when consumers are making instant, snap decisions from a wide range of products on view. Instantly, recognisable product also helps to tempt the market customers. Internationally, pulsar has now dominant presence in Africa, Latin America and South Asia with increasing market share every year. Market leader in motorcycles in Colombia, Central America, Sri Lanka, Bangladesh, Philippines, Nigeria, Uganda and Kenya.

Promotion
It was not only the bike's performance that triggered the brand becoming an icon, a major part of the success was due to the classic advertising campaign by O&M. O&M used the Big Idea of India's He-Bike for the promotional campaign. The Big Idea was to position the bike as World's first bike endowed with a Gender. The classic campaign of all times Definitely Male" together with the design and performance catapulted the brand into stratospheric sales level.

The above image depicts some of the efforts made by pulsar for promotions. Bajaj targeted the 18-24 age group with Pulsar but later found that the brand appealed to a much older audience. This led Bajaj to change its target audience to 21-35 years. With the launch of DTSi model the company went on to promote the product as a technologically superior one using the Digital Biking concept. The latest promotions of Bajaj have been more about brand building with good videography stunts and choreography and concepts matching upto the international standards.

Pricing
The price of Bajaj pulsar depends on the city and various models. Bajaj Pulsar is one of the premium segment bikes which is reflected by its pricing. In the near future the price of Pulsar is bound to increase because of the pressure on profit margin of the company. The above Marketing Mix has helped Bajaj register increasing sales each year and capture a major market share in the Performance segment.

CONCLUSION
Leader in its segment of performance bikes above and 150 cc. Pulsar has been able to capture the heart and the mind share of its consumers along with the market share for a long time. It is one of the best products available in the market in terms of the balance of economy, performance and looks. As per the understanding from the consumer behaviour survey it is the top choice for basic benefits as conveyance and also status needs associated with stylish looks. Because of these features it is currently the cash cow for the Bajaj Group. Pulsar however needs to continuously innovate in terms of technology and design to maintain its market share against competitors as Hero, Honda, Yamaha, TVS etc. Hero and Honda has been continuously launching new products in premium segments and Yamaha is launching cost effective versions of its world renowned bikes, which is hitting the market share of Bajaj Pulsar. Bajaj hence needs to develop marketing strategies to fight the external environment in terms of competitors and macroeconomic factors such as oil prices and

inflation. From the understanding of the SWOT analysis the group can leverage upon its entrenched brand loyalty coupled with improvements in products to maintain its position.

Bibliography

1. http://www.managementstudyguide.com 2. http://www.bajajauto.com/
3. http://www.wikipedia.org/ 4. www.bikanerrockers.blogspot.com/2007/11/bajaj-pulsar-story-of-indias-most.html 5. www.consumerpsychologist.com 6. www.openlearningworld.com