INTRODUCTION

Today motorcycles are everywhere and there are lots of different classes or kinds of motorcycles
as well. The first motorcycle ever assembled was built by the German inventors Gottlieb Daimler
and Wilhelm Maybach in 1885 in Bad Cannstatt in Germany. They were actually focusing more
on the motor that was installed to power the two-wheeled contraption and not so much on
creating a new kind of vehicle, but the resulting impact on motorized travel would be
tremendous. There were earlier versions of steam powered bicycles, but this was the first
petroleum powered motorcycle.

Not long afterward in 1894 the very first production motorcycle went on sale as the Hildebrand
& Wolfmüller motorcycle. It wasn’t long after that before several of the bicycle companies of
that time got into the act and started selling versions of what were essentially motorized bicycles.
However, as horsepower increased, the engines started to outgrow the bicycle frames that were
used as their carriage.

The most popular motorcycle company before World War 1 was Indian motorcycle. After the
war, Harley Davidson took over the number one spot until 1928 when Dampf Kraft Wagen
(German: steam-driven car)(DWK) became the leading motorcycle manufacturer in the world.
For a few years after World War 2 Birmingham Small Arms Company (BSA) took over as the
largest motorcycle producer until 1955 when NSU Motor works who had started out as a knitting
machine company in 1884 became the dominant manufacturer for the next couple of decades.

Then in the 1970s the Japanese companies Honda, Kawasaki, Yamaha, and Suzuki made their
entrance into this field, changed the face of the industry, and quickly became the dominant
motorcycle suppliers to the world from then on. Today, the big four motorcycle makers have
penetrated practically every motorcycle market in the world, and they are highly regarded as
makers of high quality motorcycle products.
In recent years some of the older motorcycle brands like the Indian have regained popularity
with Harley Davidson being the most successful by far.
 HISTORY OF INDUSTRY DEVELOPMENT IN INDIA:

The Indian two wheeler industry made a small beginning in the early 50s when Automobile
Product of India (API) started manufacturing scooters in the country. Until 1958, API and
Enfield were the sole producers.

In 1948 Bajaj auto began trading in imported Vespa scooters and three wheelers. Finally, in 1960,
it set up a shop to manufacture them in technical collaboration with Piaggio of Italy. The
agreement expired in 1971. In the initial stages, Automobile products of India(API)
dominated the scooter segment; Bajaj auto later overtook it. Although various government
and private enterprise entered the fray for scooters, the only new player that has lasted till
today is Lohia Machinery Limited( LML). Under the regulated regime, foreign companies
were not allowed to operate in India. It was a complete seller market with the waiting period
for getting a scooter from Bajaj Auto being as high as 12 years.

The motorcycles segment was no different, with only three manufacturers viz Enfield, Ideal Jawa
and Escorts. While Enfield bullet was four-stroke bike, jawa and the Rajdoot were two-stroke
bikes. Enfield 350cc bikes and Escorts 175cc bike initially dominated the motorcycle segment.
The two–stroke motorcycles are positioned as power bikes by making use of their high power
delivery to cater the young generation. Four-stroke motorcycle is positioned as fuel-efficient and
environment friendly vehicle.

The industry had a smooth ride in 50s, 60s and 70s when the government prohibited new entries
and strictly controlled capacity expansion. The industry saw a sudden growth in the 80s. The
entry of kinetic Honda in mid-eighties with a barometric scooter helped in providing ease of use
to the scooter owners. This helped in inducing youngsters and working women, towards buying
scooters, who were earlier, inclined towards moped purchasing. In the 90s, this trend was
reversed with the introduction of scooterettes. In line with this, the scooter segment has
consistently lost its part of the market share in the two-wheeler market.
In 1990, the entire automobile industry saw a drastic fall in demand. Barring hero Honda, all
major products suffered from recession in FY93 and fy94. Hero Honda showed a marginal
decline in 1992.

The factors for the growth of motorcycles in India:

 The Gross Domestic Product has grown to 8%

 The average family income has increased

 The finance have become easier to access

 The reduction in taxes and duties

 Introduction of international standards in India

 The economic and fuel-efficient engines

 The teenager and the youth using more and more motorcycles

Some of the major manufacturers of Motorcycles in India:

 Bajaj Auto
Bajaj Avenger
Bajaj CT 100
Bajaj Discover
Bajaj Platina
Bajaj Pulsar DTSi
Bajaj Pulsar 200CC
Bajaj Wind 125
Sonic DTSi

 Hero Honda
Hero Honda Achiever
Hero Honda CD Dawn
Hero Honda CD Deluxe
 Hero Honda Glamour
Hero Honda Karizma
Hero Honda Passion Plus
Hero Honda Splendor
Hero Honda Splendor NXG
Hero Honda CBZ X-Treme

 TVS
TVS Apache
TVS Centra
TVS Fiero
TVS Star City
TVS Victor

 Royal Enfield
Bullet 350
Bullet 500
Bullet Electra
Bullet Machismo
Thunderbird

 Yamaha
Yamaha Crux
Yamaha Enticer
Yamaha Gladiator
Yamaha Libero G5
Yamaha Alba 106

CURRENT SCENARIO
2007 has been relatively exciting year in the Indian motorcycle industry. Relatively because the
predictions that manufacturer would be selling foreign motorcycles have not yet come true. May
be because they are apprehensive or maybe too busy upgrading their products. May be 2008 will
be the year of big imported bikes.

Nevertheless, 2007 has been exciting because the current crop of machines have evolved across
all aspect. Take for instance the world famous splendor, which has been significant updated.
Hero Honda has also been busy with the CBZ-xtreme and its macho-themed restyle, the Hunk.
Baja’s biggest launch this year of course is the XCD with the styling and power of a 125cc at the
price of a 100cc. It is engineered straight to get an edge on the entry level motorcycle segment.
In the premier segment, Bajaj launched the Pulsar 200DTSi and also put the same 200cc engine
in the Avenger. Their flagship, the 200DTD-Fi, finally made it to showroom floors as well.
Another addition to the premium segment was the much awaited Royal Enfield Machismo 500.

But the place where the competition was really brewing was the 150 cc segment. Honda’s
Unicorn received a not far behind in introducing the brilliant Apache RTR 160. TVS also
unveiled some great motorcycles for the coming year, with funky looking Flame and electric
Scooty. Speaking of which, kinetic and Suzuki have entered the scooter race with the Flyte and
Access respectively, while the age on Honda’s Activa is now beginning to show.

BAJAJ AUTO - DISTINCTLY AHEAD

Bajaj Auto is a major Indian automobile manufacturer. It is India's largest and the world's 4th
largest two- and three-wheeler maker. It is based in Pune, Maharashtra, with plants in Akurdi and
Chakan (near Pune),Waluj (near Aurangabad) and Pantnagar in Uttaranchal. Bajaj Auto makes
and exports motor scooters, motorcycles and the auto rickshaw.

The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946.

Over the last decade, the company has successfully changed its image from a scooter
manufacturer to a two wheeler manufacturer. Its product range encompasses Scooterettes,
Scooters and Motorcycles. Its real growth in numbers has come in the last four years after
successful introduction of a few models in the motorcycle segment.

The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.

Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading Corporation
Private Limited. It started off by selling imported two- and three-wheelers in India. In 1959, it
obtained license from the Government of India to manufacture two- and three-wheelers and it
went public in 1960. In 1970, it rolled out its 100,000th vehicle. In 1977, it managed to produce
and sell 100,000 vehicles in a single financial year. In 1985, it started producing at Waluj in
Aurangabad. In 1986, it managed to produce and sell 500,000 vehicles in a single financial year.
In 1995, it rolled out its ten millionth vehicles and produced and sold 1 million vehicles in a year.

Spinoffs and acquisitions

It has been reported that Bajaj is headed for a de-merger into two separate companies: Bajaj Auto
and Bajaj Finance. It is expected that the sum of the parts created will be worth more than the
current whole, as was the case in the de-merger of Reliance Industries.

In November 2007, Bajaj Auto acquired 14.5% stake in KTM (Kraftfahrzeuge Trunkenpolz
Mattighofen) Power Sports AG (holding company of KTM Sportmotocycles AG). The two

Companies have signed a cooperation deal, by which KTM will provide the know-how for joint
development of the water-cooled 4 stroke 125 and 250 cc engines, and Bajaj will take over the
distribution of KTM products in India and some other Southeast Asian nations. Bajaj Auto said,
it is open to take a majority stake in KTM and is also looking at other takeover opportunities. On
the 8th of January 2008, Managing Director Rajiv Bajaj confirmed the collaboration and
announced Bajaj Auto's intention to gradually increase their stake in KTM to 25%.

FOLLOWIN IS THE PRODUCT LINE OF BAJAJ AUTOS:

 Scooters

Bajaj Kristal DTSi

 Motorcycles

Bajaj CT 100

Bajaj Platina

Bajaj Discover 110cc

Bajaj XCD 125 DTS-Si

Bajaj Discover DTS-i 135cc

Bajaj Pulsar 150 DTSi

Bajaj Pulsar 180 DTSi

Bajaj Pulsar 200 DTSi

Bajaj Pulsar 220 DTS-Fi

Bajaj Avenger

 Upcoming Models

Bajaj Blade

Bajaj Sonic

 Discontinued Models

Bajaj Sunny

Bajaj Chetak

Bajaj Cub

Bajaj Super
 Bajaj Wave

Bajaj Legend

Bajaj Bravo

Kawasaki Eliminator

Bajaj Kawasaki Wind 125

Bajaj Kawasaki 4s Champion

Bajaj Kawasaki KB 100 RTZ

Bajaj Boxer

Bajaj Caliber

Bajaj Wind

Bajaj Pulsar 200 DTSi

Bajaj Auto, the pioneer in performance biking has further extended the portfolio with the launch
of the new 200 cc ‘Pulsar’ DTS-i launched at New Delhi on 13th feb,2007.The latest offering has
set new benchmarks in technology, performance, and styling to address the needs of a growing
segment of pro-bikers.

The new Pulsar has many firsts to its credit. It comes equipped with an Oil cooler, which helps
control engine oil temperatures at sustained high speeds and rpms, thus ensuring more stable
engine oil viscosity. The 200cc DTS-i engine generates 18 Ps of raw pulsating power to provide
riding excitement to performance hungry bikers. This makes the Pulsar 200 the sportiest and
stylish powerhouse on two wheels to pace the Indian roads. It’s also the first bike in India to
feature both front and rear tubeless tyres, which besides offering superior stability are safer than
conventional tube types and in sync with the offerings abroad for similar applications. The rear
tyre is the broadest in its category to ensure better road grip and stability.
The new digital console is an advanced version of the latest Pulsar family. Apart from the Digital
Odometer, Digital Speedo Meter, Digital Fuel Gauge and two Digital Trip Meters, the console on
the 200 cc Pulsar DTS-i has indicators for Air filter condition, Engine temperature, Battery
voltage and Oil level, all of which contribute to enhancing rider info for trouble-free riding.
Another first is the use of split seats for styling and comfort. The split grab rail perfectly
complements the new rear chiseled looks. It is also the first Indian bike to have electric start as
the sole means of engine cranking, dispensing with the kick lever.

This launch is in line with co strategy of enhancing product portfolio to offer riding excitement
to pro-bikers. Entire focus and effort is to deliver outstanding technology and performance. The
new Pulsar has now raised the bar in the motorcycle industry with superior technology and
features such as the engine oil cooler, digital console etc.

BAJAJ is already market leader by far in the performance segment and Pulsar 200 DTS-i would
further reinforce its position in this important segment. The bike joins the immensely popular
150 cc and the 180cc Pulsar DTS-i to extend the Pulsar DTS-i range across a range of price and
performance points.

WHY TO BUY BAJAJ PULSAR 200 DTSi?

Contrary to popular opinion, the Pulsar 200 actually has more in common with the Pulsar 220
than with the Pulsar 150 and 180. Visually, of course, it resembles a Pulsar 180/150 with the
extremely well-executed and noticeable tank extensions. However, look closer and almost
everything under the bright work is actually near-220 spec. The 200cc pulsar engine is not fuel
injected.

In motion, the pulsar200 feels calm. It’s not a word we’d use to describe any of the other pulsars.
The 200’s engine, for some reason, feels like it’s not doing all that much work and is happy to
cruise along. Of the lot, the 200’s our pick for the best long distance touring motor. It isn’t slow,
and it isn’t frenetic either. On the handling front, like the 220, the pulsar200 is an extremely
stable, neutral feeling motorcycle. It isn’t an extremely quick steering motorcycle like say, a
cbzx-Tremer or the RTR, and neither does it feel slightly slow steering like the pulsar 150 or 180.
Stability and confidence are its hallmarks, and admirably, it retains this character even two-up.
Ride quality and braking, similarly, are excellent. There is no doubt that the 200 is the best of the
non injected pulsars. We’d go so far as to say that the minor price difference from (Rs6, 456) is
small enough for you to seriously consider upping your budget and getting the 200 instead. If
you look at it purely from a performance perspective, actually, the 220 suddenly seems overly
expensive, the price difference being upward of Rs10, 000, while the performance levels most
certainly aren’t that widely separated.

Perhaps the only thing against the 200 is the styling package. While the thicker tyres, the all-
black power train and the tank extension do help the 200 standout from many angles, it is hard to
distinguish it from a 150 or a 180. This is a common problem, actually, with the pulsar, and the
220 also suffers this from the rear-on angles.

SEGMENTATION, TARGETING AND POSITIONING:

Pulsar is one of my favorite brands both as a bike rider and as 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.

Before the launch of Pulsar, Indian bike market was divided broadly into Economy, Executive
and Premium Bikes. In 1999 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; 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". 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.
Bajaj targeted the 18-24 with Pulsar but later found that the brand appealed to a much older
audience. This helped Bajaj to change its target audience to 21-35 years.
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. In 2003 another milestone event happened in the product lifecycle of the brand. Bajaj
launched its new technology DTSI. DTSi stands for Digital Twin Spark Ignition which delivered
more power and efficiency. The increased performance of the brand took Pulsar to greater
heights. 2004 and 2005 saw some cosmetic changes in the brand which excited the customers
and thus cementing Pulsar's position in the market.

Pulsar came in two variants : 180 cc and 150 cc where 180 cc excited the performance bikers,
150 cc was for the mileage conscious ones. The 150cc variant took lot of customers away from
the executive segment to the performance segment.

The brand had its share of marketing flaws also. According to reports, Bajaj reassigns its media
duties to two brands O&M and Leo Burnett, every six months.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.

After ruling the premium bike segment, Bajaj is taking their brand to another level. Bajaj
recently launched Bajaj Pulsar 200 Dtsi to take on the comeptition from Hero Honda and the
like. The new Pulsar boasts of spruced up engine, new digital console and new style. Pulsar is
definitely getting better.
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.According to
company officials, its about how you ride rather than where you ride. The ads made by O&M is
filmed at Hawana Cuba ( expensive). Set to pulsating Arabian music, the ad shows how two
Pulsar riders discover new route when their main way is blocked by traffic jam.
One word to describe this ad is HYPERBOLE and too much of it. What I feel is that the Big Idea
od Free Biking is good but execution is ordinary. What made Pulsar a super brand was its ability
to come out with different disruptive campaigns. But in the case of Pulsar 200, it is a sort of cut
copy paste from some Hollywood movie (James Bond). More over, the Big Idea is also not
properly communicated through the visuals. Also most of the time I was trying to make out some
meaning out of the background song, later to find out that it was Arabic.

See the new Pulsar Ad here: Pulsar 200

Now every one is waiting for the new Bajaj 220 cc DTSFI which will redefine the bike segment
again.

Sadly Bajaj is no longer using its blockbuster tagline " Definitely Male" but instead is using the
corporate brand tagline " Distinctly Ahead". Bajaj earlier had another corporate tagline "
Inspiring Confidence" when it completely redesigned its corporate logo and brand.
I still strongly believe that not using "Definitely Male" is a gross injustice to the brand itself.
That tagline and positioning has lot of fire with it and except for the initial two campaigns, Pulsar
was not able to build on its Definitely Male Platform.
But what ever I say and what ever the agency communicates through the ads, Pulsar has made
itself into a position of strength. It has a brand equity so huge that what ever that comes out of it
will be lapped up in no time. The success of Pulsar 200 DTSI is no longer dependent on the
quality of ads but on the performance it delivers. This brand shows the power of brand equity
where customers buy ,irrespective of lousy ads......

4P’S OF MARKETING:
  PRODUCT

 PRICE

 PLACE

 PROMOTION

PRODUCT:

The Bajaj Pulsar 200 DTS-i’s higher sportier stance with greater chassis rear inclination is
supported with some of these technologically advanced features. A lowered Headlamp/Fairing
assembly along with a high tail-end, giving it an aggressive, ready to pounce stance. An all
Stainless Steel silencer with an Aluminum muffler can for genuine sporty looks and long life.
Large 33 mm Front forks for muscular looks and to take care of the extra suspension and braking
loads.
Large 260 mm front disc for strong and predictable stopping power. A unique Auto Switchover
feature comes into play in case one of the two Headlamp filaments stops functioning. A unique
Battery Energy Conserving feature ensures a fixed delay after 3 continuous cranks. All new
‘Blue tinged’ bulbs for the main headlamp and parking lamps. These emit strong ‘White’ light for
a distinctive look. Sleek, Twin row, Light-Emitting Diodes (LEDs) for the tail and brake lamp
ensures “Zero Maintenance”, and a long battery life. Backlit, Non-Contact type, Soft-touch
Handlebar Switches.
Self-canceling Indicators that switch off when the turn has been completed and the handlebar
comes to a ‘straight ahead’ position with a pre-set automatic switch off function, even if the turn
has not been undertaken.

Smooth, positive, virtually friction-free gearshift feel with new shifter assembly, an integrated
over-shift preventor, and shift forks with rollers mated to a change drum. A Low Maintenance
Battery with a unique venting valve, drastically reducing electrolyte loss and therefore reducing
frequency of routine maintenance. Black paint theme carried over to the front fork legs, the rear
shock absorbers, and the swing arm, in addition to the engine, for deadly looks. High
performance exposed ‘O’ ring Drive chain for running in dusty conditions, providing for clean
uncluttered looks and commensurate with the bikes image.

Technical Specifications:

Engine Type 4-stroke, DTS-I, Oil cooled

Displacement 198.8 cc
Max Power 18 Ps / 13.25 Kw
Max Torque 1.75 kgm / 17.17 Nm
Suspension Front Telescopic forks 135 mm stroke
Rear Triple rate spring, 5 way adjustable, gas charged NitroX shock absorbers
Brakes Front 260 mm hydraulically operated disc brake
Rear Mechanically expanding 130 mm drum type
Tyres Front 90/90 x 17” Tubeless tyre, shod on aluminium alloy wheels
Rear 120/80 x 17” Tubeless tyre, shod on aluminium alloy wheels
Fuel Tank Full 15 Lts ( 2 liters of usable reserve)
Electricals System 12V AC + DC
Headlamp 35/35W clear lens type with 2 pilot lamps
Dimensions Wheelbase 1345 mm
Weight 145 Kg
Electricals System 12V AC + DC
Headlamp 35/35W clear lens type with 2 pilot lamps
Dimensions Wheelbase 1345 mm
Weight 145 Kg

PRICE:
Bajaj Pulsar 200cc DTS-i has a dash of style, speed and technology. Having an international
sports bike look, Bajaj Pulsar DTS-I has a split seat and several parameter indicators
(oil/fuel/temperature etc), Nitro shockers, a third generation Throttle Responsive Ignition Control
System and chiseled rear looks. The Pulsar 200cc DTS-i is mean machine to ideally take on a
long winding road. Bajaj Pulsar comes at an attractive price of around Rs.65, 497. New bikes in
this series have a showroom price ranging from around Rs. 68,000 to Rs. 74,500, which inclusive
of all charges like insurance, octroi, RTO, etc. Currently, Delhi has the lowest, and Bangalore the
highest on-road prices for Bajaj Pulsar 150 cc. Bajaj Pulsar 180 cc bike prices vary upon the two-
wheeler dealer's location.

PLACE:

Bajaj Auto has adopted a channel policy approach which is unique in the automobile industry.
This policy and its linked initiatives are guided by the requirements of specific sets of the
Company’s final customers.
1. The Primary Channel: This comprises 408 exclusive two-wheeler dealers, 75 exclusive three-
wheeler dealers, and 98 dealers who deal in both product categories. Bajaj Auto has followed a
policy of systematic network consolidation, in which the primary dealerships have been given a
larger scale and scope to operate based on their strengths.
2. The Secondary Channel: Much of Bajaj Auto’s recent success can be attributed to policy of
rapidly adding to the number of secondary outlets, which provide sales, service and spares
support in the vast hinterland of India. These are in the form of 1,500 Authorised Service Centres
(ASC), 4,500 Rural Service Outlets (RSO), and 750 Young Engineer Service (YES) centres in
the towns and cities.
3. Pro-biking: This initiative sits far away from the rural India play but is no less important. Bajaj
Auto believes that young India doesn’t pay to buy motorcycles; it pays to buy excitement and
exhilaration. The Pro-biking initiative, which was kicked off with the inauguration of first store
in Pune in August 2005, aims precisely at creating this thrill. Owned and operated by Bajaj Auto,
Pro-biking showrooms are now operational in Mumbai, Kolkata, Chennai, Hyderabad and
Ahmedabad.
PROMOTION:

Over the past few years, Bajaj Auto Limited (BAL) has focussed on technology development,
product development in anticipation of market needs, scaling up its manufacturing facilities,
implementing best-in-class production systems, rationalizing vendors, slashing costs while
upgrading quality, restructuring dealerships and distribution channels. These capabilities enabled
the company to create exciting new products, which have set benchmarks — in style, in design,
in technology. The company's products are creating a customer pull at all price points and the
company has now transformed from being a price warrior to a price leader. The results of the
above are there for its customers and shareholders to see. In 2005-06, Bajaj Auto's sales of
motorcycles grew by almost 32 per cent versus a market growth of under 19 per cent. And
market share has risen from 24 per cent in 2003-04 to almost 31 per cent in 2005-06.

Promotion of any product is an essential part for any business to grow and also make a mark in
the market. Thus, Bajaj also came up with their promotion strategies to capture the market with a
tag line “Hamara Bajaj”. This tag line made wonders for the company and also the sales of its
products. This tag line was used to promote Bajaj Auto Limited as a whole. It came up with TV
advertisements and also prints advertisement to have a greater impact. Their products are also
advertised according to its specifications and uniqueness.

Bajaj auto limited (BAL) adopted different marketing strategies for different models, few of
them are discussed below: -

Kawasaki 4S - First attempt by Bajaj to make a mark in the motorcycle segment. The target
customer was the father in the family but the target audience of the commercial was the son in
the family. The time at which Kawasaki 4S was launched Hero Honda was the market leader in
fuel-efficient bikes and Yamaha in the performance bikes.

The commercial of Kawasaki 4S had the punch line "Kyun Hero" means "now what hero" which
reflected the aggressiveness in the marketing front by the company.
Boxer - It took the reins from where the Kawasaki 4S left. Target was the rural population and
the price sensitive customer. Boxer marketed as a value for money bike with great mileage.
Larger wheelbase, high ground clearance and high mileage were the selling factors and it was in
direct competition to Hero Honda Dawn and Suzuki MX100.

Caliber - The focus for the Caliber 115 was youth. And though Bajaj made the bike look bigger
and feel more powerful than its predecessor (characteristics that will attract the average, 25-plus,
executive segment bike buyer), its approach towards advertising is even more radically different
this time around. Bajaj gave the mandate for the ad campaign to Lowe, picking them from the
clique of three agencies that do promos for the company (the other two being Leo Burnett and
O&M). Going by the initial market response, the campaign was clearly a hit in the 5-10 years
age bracket. So, the teaser campaign and the emphasis on the Caliber 115 being a `Hoodibabaa'
bike placed it as a trendy motorcycle for the college-goers and the 25 plus executives both at the
same time.

Pulsar - Pulsar was launched in direct competition to the Hero Honda's 'CBZ' model in 150 cc
plus segment. The campaign beared innovative punch line of "Definitely Male" positioning
Pulsar to be a masculine-looking model with an appeal to the performance sensitive customers.
The Pulsar went one step ahead of Hero Honda's 'CBZ' and launched a twin variant of Pulsar
with the 180 cc model. The model was a great success and has already crossed 1 million mark in
sales.

Discover - The same DTSI technology of Pulsar extended to 125 cc Discover was a great
success. With this, Bajaj could realize its success riding on the back of technological innovation
rather than the joint venture way followed by competitors to gain market share.

Strategies & Implementation

BAL now is taking a leaf out of the Fast Moving Consumer Goods (FMCG) business model to
take the company to greater heights.
Bajaj has kicked off a project to completely restructure the company's retail network and create
multiple sales channels.
Over the next few months, the company will set-up separate sales channels for every segment of
its business and consumers. Bajaj Auto's entire product portfolio, from the entry-level to the
premium, is being sold by the same dealers. The restructuring will involve separate dealer
networks catering to the urban and rural markets as well as its three-wheeler and premium bikes
segments.

Bajaj Auto also plans to set-up an independent network of dealers for the rural areas. The needs
of financing, selling, distribution and even after-sales service are completely different in the rural
areas and do not makes sense for city dealers to control this. The company also plans to set-up
exclusive dealerships for its three-wheeler products instead of having them sold through an
estimated 300 of its existing dealers

Strategies for the Overseas Markets:

Bajaj Auto looks at external markets primarily with three strategies: -

1) A market where all BAL need to do is distribute through CKD or CBU routes.
2) Markets where BAL need to create new products.
3) Markets where BAL need to enter with existing products and probably with a good distributor
or a production facility or a joint venture.

Earlier, most of the products that Bajaj exported were scooters and some motorcycles. However,
in its target markets, like in India, the shift was towards motorcycles. With the expansion in
Bajaj's own range to almost five-six platforms of motorcycles, it had a better offering to export,
also the reason for its stronger showing. For the last fiscal, 60 per cent of its exports were two-
wheelers and the rest three-wheelers. Of the two-wheeler exports, close to 90 per cent were
motorcycles.

Bajaj has identified certain key markets, which hold potential. Its first overseas office established
at the Jebel Ali free trade zone has been the focal point for exports to middle Africa and the
Saharan nations. Egypt and Iran also continue to be strong markets for Bajaj.
The other market, which would be a focus area, is South America, where the company feels it is
fairly well represented in most countries, except in Brazil, the largest market. The company
recently participated in a large auto exhibition in Brazil and found good consumer acceptance to
products like Pulsar and Wind 125.

The other focus area is the ASEAN nations, which constitute the third biggest consumer of two-
wheelers. The biggest among them is Indonesia, where Bajaj distributors are looking to introduce
eco-friendly four-stroke auto rickshaws. But two-wheeler market requires great deal of effort
from BAL. Everybody is there with Honda leading the show. There's Suzuki, Kawasaki and
some Korean and Chinese models. BAL should look at the right product mix for two-wheelers.
Bajaj's Pulsar model has taken off well there. It also wants to develop a new step-through model
for the Indonesian market, but for now it will create a base there with its motorcycle models.

Bajaj has also made a beginning by selling bikes in the Philippines branded in the name of its
technical partner, Kawasaki. The two signed an MoU in February. Kawasaki, a large multi-
product conglomerate, only makes high-end bikes and does not have sub-200cc models.
Kawasaki is marketing the new model, Wind 125, developed by both companies, in the
Philippines. The Bajaj-developed models, Caliber and Byk, which is a fuel-efficient bike, are
also being distributed by Kawasaki. This is a good beginning strategically for Kawasaki to
evince interest in Bajaj products for markets which can still buy less than 150 cc.

MARKET SHARE OF BAJAJ AUTO

(a) Bajaj Auto’s motorcycle sales continue to outperform the industry. In the current
Quarter Bajaj Auto’s motorcycle sales grew by 53%. v/s industry growth of 24%.
(b) The Bajaj CT 100 completed a cumulative sale of “ONE MILLION” since its launch in
May 2004. To further enhance customer value, CT 100 is being revamped with
ExhausTec, Spring in spring (SNS) rear suspension and 17” wheels  all of this
brings in class leading ride comfort to this product.
(c) The Bajaj Pulsar DTSi twins have sold an average of 29,000 vehicles in this quarter
registering a growth of 29% over the Q1/2004-05.
(d) The Bajaj Avenger rolled out of the Chakan plant on 10th June 2005. This cruiser
bike is available at select dealerships across the country at an ex-showroom price of
Rs. 60,000/-. This is further expected to consolidate Bajaj Auto’s presence in the
performance category of the motorcycle market.

CONCLUSION

There are no signals of a reversal in the growing consumer preference for motorcycles to
scooters. Riding comfort, better control and superior mileage have attracted consumers to
motorcycles.

Also, the soft interest rate regime over the last two years has resulted in a steady drop in lending
rates. As a result, the cost of retail loan has fallen steadily which, in turn, has prompted
consumers to go in for motorcycles, though they are a costlier than scooters.

In the motorcycle market, the consumer preference has tended to be skewed in favour of four-
stroke models. With petrol prices ruling firm, it is not all that surprising to find the growing
consumer preference for four-stroke bikes that offer superior mileage.

As a result, two-stroke motorcycles have lost ground heavily in recent years. Baja Auto has
practically stopped producing two-stroke bikes, while other two-stroke producers such as
Yamaha and TVS Motor have also turned to four-stroke models.

After some sharp drop in volumes, TVS motor found the demand for its two- stroke bikes
picking up after it cut prices. This has lured the Kinetic group and LML. LML launched Energy
and Adreno models, while Kinetic Engineering came up with Challenger.
Existing major-Hero Honda and Bajaj – have taken efforts to enhance their presence in the fast
growing four-stroke segment. With a series of successful launches such as Boxer, Caliber Croma,
Bajaj has turned out to be a star performer in terms of improvement in turnover and increase in
market capitalization.