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Case on
“ Bajaj Pulsar Bike”
Market Planning
(Final submission)
Term – I
(Course Instructor – Professor Neelu S. Bhullar)
NMP XX Group-XIII
Abhya Nand Singh, 20NMP-03
Rajeev Kumar, 20 NMP-66
B. Venkata Rao, 20 NMP-16
Page 1 of 41

2. Manoj Kumar Gupta, 20 NMP-30
Kundan Kumar, 20 NMP-28
NATIONAL MANAGEMENT PROGRAMME (NMPXX)
EXECUTIVE PGPM
MANAGEMENT DEVELOPMENT INSTITUTE
GURGAON-122001
Page 2 of 41

3. TABLE OF CONTENTS
Executive Summary
1.0 Bajaj Auto Profile
2.0 About Pulsar Bike
3.0 Market Environment
4.0 Swot Analysis For Pulsar
5.0 Consumers Of Bajaj Pulsar
5.1 Consumer Behaviour
5.2 Interview Of Recent Buyers Of Bajaj Pulsar
5.3 Suggestions/ Recommendations For Ensuring Customer
Satisfaction
6.0 Competitor Analysis
6.1 Overview Of Competitors
6.1.1 Hero Honda Motors Limited
6.1.2 Tvs Motor Ltd
6.1.3 Honda Motorcycles & Scooters India Pvt. Ltd
6.1.4 Kinetic India Ltd
6.1.5 Yamah Motor India Ltd
6.2 Strengths & Weaknesses Of Competitors
7.0 Market Segmentation
7.1 Broad Segmentation In Two Wheeler Industry
7.2 Sub Segmentation of Motorcycle Segment
7.2.1 Profile Of Various Segments And Price Range
7.3 Market Targeting By Bajaj Auto & Its Competitors
7.4 Market Positioning Of Bajaj Pulsar
8.0 Conclusions
References
Annexure-1
Page 3 of 41

4. Bajaj Pulsar Bike
“I told you to bring our Pulsar” wife provoked for second time while driving back
to home last month. Way back a month, I made a visit to my native place HAL Amethi,
just after finishing the Mid Term-I exams at MDI Gurgaon. (This experience is
narrated by Manoj kumar Gupta, an executive of HAL, currently a participant of
National Management programme at MDI, Gurgaon) Since I was outside for a long
period of almost over one month, I had to face a big shopping list and fulfill the
promises made on phones. My home is located 15 kms. away from Amethi city. It was
28th
of May 07, my wife chalked out plan and we were ready to make a Amethi city trip
this evening. It seemed that she was ready with the list and even bigger dream. At
evening just before departing from home, she enquired of vehicle we were to go with. I
promptly replied “of course with car”. I could see the question mark on her face. The
options were, bike (Pulsar) or car (Wagon R). Can’t we go with bike? Wife asked; “No we
have to shop many things”, I summed up with.
Our short distance journey started with car. It took 20 minutes to reach the city. It
was the highly rush hour and we needed to park the car. I had to struggle to park the
car that evening, and could hardly find the place for parking. As soon as we started
walking towards the shops after locking the car, the first sentence, my wife spoke was
“So difficult to park, I told you to bring the pulsar”. After an hour of shopping and gol-
gappa programme, we had only an additional bag packed with some dresses and few
cosmetics. For the remaining part of shopping, we had to move to jewelers market 3
kilometers from this place. We went back to car and reversed anyway to pick the road
ahead. While driving along the crowded road we were far slower in speed all along the
road. Meanwhile one motorcyclist suddenly came in front of car and I could hardly save
him to collide with the gap of centimeters. Immediately wife reacted “Puzzling traffic,
I told you to bring pulsar”. By next half an hour we could finish our shopping and
immediately caught the way to home. But still something was waiting to happen and a
handsome jam appeared mid way because of trucks. We had to wait for at least five
minutes until the jam cleared, But this time I became the first to say spontaneously
“Yes, we could have chosen pulsar for trip”, wife was really glad to hear it. And we
spent some time talking in the same context. Here, wife had a chance to justify her,
the way she wanted. “See, with bike we needn’t to wait for such jams and could have
enjoyed a free style trip also” wife said. After the jam cleared we were cruising on the
road directed towards our home.
In rest of the journey there was a big argument going on, within my mind. The context
was, who among us was right i.e. which was suitable means for that drive, whether car
or bike? Also I was flooded with questions like; Is the bike best for short trips? are
the bikes increasingly penetrating suburban and rural markets? Are the premium bikes,
first choice of young people? Do the new generations ladies like to ride premium bikes
Page 4 of 41

5. with their husbands for outing? What are the driving factors for liking of bikes in
rural & suburban areas?
Perhaps above are the facts, which may help us concluding the fast growing trend of
two wheeler market. The Bajaj Auto limited has a 72% of market share in India for
180CC bikes segments.
EXECUTIVE SUMMARY
The expected rise in household income, easy availability of consumer finance, growing
replacement demand, frequent introduction of newer trendy models by players and the
increasing aggressiveness of key players will fuel two-wheeler growth in the long term.
Overall demand will be driven by accelerated growth in motorcycle sales.
The expected surge in rural demand will play a key role in steering motorcycle demand.
Domestic motorcycle sales are expected to grow at a CAGR of 11.5 per cent, surpassing
10 million units by 2010.11. This massive climb will drive overall two-wheeler sales
growth by 11.4 per cent to 13 million units by 2010-11.
TWO WHEELER SALES TREND
Competition in the motorcycle industry is mainly confined to three major players, i.e.
Bajaj Auto, Hero Honda and TVS motors who among them are having 94% of the total
market share. These three players are likely to continue dominating the market for
some time to come.
Consumer profile and the Segmentation of the motor cycle has been studied and the
same is divided into three major segment, i.e. Economy, Executive and the premium
segment. The economy segment consumer looks for value for money, Executive segment
looks for product features as well as fuel economy, whereas premium segment
consumer looks for performance. Technology and R&D will be the key feature in driving
Page 5 of 41

6. the consumer up the value chain. Profitability of the premium segment is the highest,
whereas the economy and the executive segment will provide the volumes.
Bajaj Auto has maintained its leadership position in the economy segment and it is
catching up with market leader Hero Honda in the executive segment. However, the
real edge for Bajaj Auto comes in the premium segment. The company will have to keep
investing in R&D and keep up with new product innovations to maintain its leadership in
this segment. The company can really expand its probiking niche segment by continuing
to provide superior value proposition to the consumer.
1.0 BAJAJ AUTO PROFILE:
The Bajaj Group is amongst the top 10 business houses in India. Its footprint
stretches over a wide range of industries, spanning automobiles (two-wheelers and
three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance.
The group’s flagship company, Bajaj Auto, is ranked as the world’s fourth largest
two- and three- wheeler manufacturer and the Bajaj brand is well-known in over a
dozen countries in Europe, Latin America, the US and Asia.
It was founded in 1926 by Jamnalal Bajaj. His son, Kamalnayan Bajaj took over the
business in 1942. He not only consolidated the group, but also diversified into various
manufacturing activities.
The present CMD 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 (USD 936 million), its product portfolio has expanded
and the brand has found a global market.
For our marketing planning project, we have selected Bajaj Pulsar ( product of M/s
Bajaj Auto Ltd.)
2.0 ABOUT PULSAR BIKE
Before the introduction of the Pulsar, the Indian motorcycle market trend was
towards fuel efficient, small capacity motorcycles (that formed the 80-125 cc class).
Bigger motorcycles with higher capacity virtually did not exist (except for Enfield
Bullet). The launch and success of Hero Honda CBZ in 1999 showed that there was
latent demand for performance bikes. Bajaj took the cue from there on and launched
the Pulsar twins (150cc & 180cc) in India on November 24, 2001. The Pulsars excited
segments of Indian youth, mainly due to muscular shape, stylish design and powerful
engine (in Indian context) at reasonable fuel efficiency and affordable cost. The
Pulsars are believed to be greatly successful in redefining the market trend. Since the
Page 6 of 41

7. introduction and success of Pulsar, the Indian youth began expecting high power and
other features from affordable motorcycles.
As of 2006, the Bajaj Pulsars arguably form the most popular motorbike product in the
newly emerging 150+ cc class of Indian two wheeler market. Bajaj Pulsar directly
competes with several other Indian motorbikes in this class, such as, CBZ from
Hero Honda, Apache and Fiero Fx from TVS, Unicorn from Honda and a few
models from Yamaha and Suzuki. To retain Pulsar's position of leadership in its class,
Bajaj Auto has been regularly making alterations to it to make the motorbike look
afresh at all times.
Due to the shape of the fuel tank, many Sri Lankan youngsters refer the Bajaj Pulsar
as "The Nut Crusher". Unfortunately, even in the upcoming model, the Pulsar DTS-Fi
220cc, the manufacturers have failed to change the way the fuel tank is constructed,
leaving the problem un-rectified. Newly released 200cc pulsar has colored plastic
coverings of oil cooler to change the shape of the tank. Bajaj Pulsar DTS-Fi has got the
“Bike of the Year 2007” by CNBC-TV18 Autocar and Auto Awards.
Camparison of different models in premium segment bikes
3.0 MARKET ENVIRONMENT:
Idia is the second largest manufacturer and producer of two-wheelers in the
world. It stands next only to Japan and China in terms of the number of two-
wheelers produced and domestic sales respectively. The Indian two-wheeler
industry made a small beginning in the early 50s when M/s Automobile Products of
India (API) started manufacturing scooters in the country. Until 1958, M/s API
and M/s Enfield were the sole producers of two wheeler.
In 1948, Bajaj Auto began trading in imported Vespa scooters and three-wheelers, and
in 1960, it set up a shop to manufacture them in technical collaboration with M/s M/s
Page 7 of 41
Company TVS Hero Honda Bajaj Honda Kinetic
Specs. Apache Fiero Fx CBZ
EXTREME
Achiever Pulser
150
Pulser
180
Avenger Uni Corn GF 170
Type 4 Stroke,
air cooled
4 Stroke, Air
Cooled
Air Cooled,
4 Stroke,
4 Stroke,
Air
Cooled,
4 Stroke,
Air
Cooled
4 Stroke,
Air
Cooled
4-Stroke,
DTS-I
4 Stroke,
Air
Cooled
4 Stroke, 4
Valve engine
Displacement 147.5cc 147.5 cc 149.2 c.c. 149.1cc 143.9cc 178.61cc 180 cc 149.1 cc 165.12 cc
Maximum
Power
9.95kw /
(13.5 bhp)
@8500
rpm
Maximum
Power 12
bhp (8.95
kW) @ 7000
rpm
10.6 KW
(14.4 Ps)
@ 8500
rpm
10 KW
(13.4
Bhp)
12 BHP
@
8500rpm
15 BHP
@
8000rpm
16.5
bhp/12.15
Kw
@8000
rpm
13.3 bhp
@ 8000
rpm (9.9
KW)
14.8bhp@80
00rpm
No of gears 5 Speed 4 Speed 5 Speed 5 Speed 5 Speed 5 Speed 5 Spped 5 Speed 5 Speed

8. Piaggio of Italy. Under the regulated regime, foreign companies were not allowed to
operate in India. It was a complete sellers’ 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 M/s
Enfield, M/s Ideal Jawa and M/s Escorts. The two-wheeler market was opened to
foreign competition in the mid-80s. The industry witnessed a steady growth of 14%
leading to a peak volume of 1.9mn vehicles in 1990. With the availability fuel efficient
low power bikes, demand swelled.
There has been a steady growth in the demand for motorcycles in India. Earlier, it was
seen more in rural areas for its ease in maneuverability and wider wheel base leading to
greater stability. Later, it became popular among all sections of the society,
particularly the urban youth who liked the speed and style it imparted (to their
personality).
The motorcycles overtook scooters’ market in 1998-99 and have not looked back. It is
noteworthy to look at the sales of FY2006-07 is 7.78 mn as compared to 6.87mn of
previous FY year.
Motor cycles' Market share In India
46, 46%
23, 23%
16, 16%
6, 6% 5, 5% 4, 4%
Hero Honda
Bajaj Auto
TVS Motors
Yamaha
Motor
LML
Others
Two Wheeler's market in India
66, 66%
22, 22%
11, 11% 1, 1%
Motorcycles
Scooters
Mopeds
Others
Page 8 of 41

9. 4.0 SWOT ANALYSIS FOR PULSAR
STRENGTHS:
• Bajaj Brand Image since 1950 .
• Network of 498 dealers and over 1,500 authorised service centers across
the country. Around 1,400 rural outlets have been created in towns with
population of 25,000 and below. Overseas distribution network covers 50
countries world wide to cater export market.
• Indigeniously developed bike in premium segment .
• Digital technology for ignition ( DTS-i) to improve performance of the
bike.
• Sturdy and most suitable for Indian roads.
• Stylish muscular Body shape attracted Indian Youth.
• Introduced Digital display for the first time in premium segment.
• Highest fuel economy in it’s class.
• Different variants are available.
• Undisputed market leader in premium segment .
• “Value for money and Value for customer”.
• Pulsar is being customised as per constantly changing customer needs.
• Strategically located manufacturing facilities to reach nook & corner of
India.
Overseas distribution net work world wide
WEAKNESSES:
• Unable to tap 100 & 125cc market segment customers due to little higher
price.
• Many customers calling this as "The Nut Crusher" bike due to its fuel
tank shape.
• Body shape has been the same in other variants also.
Page 9 of 41

10. OPPORTUNITIES:
• In 50 countries world wide, where M/s Bajaj Auto perceives a good
market potential. It’s in a position to invest in manufacturing activities
apart from marketing, distribution and after sales & services through a
well-established global network.
• Exports contributes only 11% in it’s volume, hence there is a scope for
improvement.
• High potential to tap rural market in India.Bajaj Auto has already defined
specialist dealerships for rural markets, called 'Rural Dealerships'.
• Opportunity to tap higher-end customer (Probikers), who are
knowledgeable, appreciative of contemporary technology, they are
trendsetters and very choosy about what they ride. Bajaj Auto is in the
process of setting up a chain of retail stores across the country
exclusively for high-end, performance bikes.
THREATS:
• Highly stiff competition in it’s class in the recent past by many leading
players of two wheeler manufacturers.
• Threat from low cost ( A-segment) and secondhand cars.
5.0 CONSUMERS OF BAJAJ PULSAR
Motorcycles have been witnessing an upward sales trend due to changing
consumer preference fuelled by new launches. Rising income levels of Indian
middle class consumer were moved from scooters to motorcycles. Currently
approximately 80 % of the market demand of two wheelers consists of
motorcycles.
Page 10 of 41

11. (Source: WAY2WEALTH, Industry update for 2 two wheelers dated 13-04-05
for Financial year 2004-05)
Also initially there was demand for low power motorcycles in the engine capacity
of 100 cc. But now, more and more demand for higher power engines (Premier
segment) is being created. The below tables indicates the percentage of
motorcycles in total two wheelers segment.
Also initially the market for motorcycle had a rural bias. But the trend has
changed towards a more balanced rural and urban segment. Further, export is
also an area of growth of motorbikes increasing steadily year on year. With the
booming exports, Bajaj Auto Limited (BAL) is partly insulated from the slowdown
in domestic markets as exports form 16% of total sales.
Bajaj Auto Ltd. has to keep their thrust on export market and exploit the
opportunity more aggressively than its peers.
(Source: 2 wheeler sector update dated 11-04-2007, Indsec Securities and
Finance Ltd.)
Market Segmentation
Segment Share(%)
North 26
East 12
West 32
South 30
Demand : Past & Future
Year mn no.
1990-91 0.47
1991-92 0.43
1992-93 0.38
1993-94 0.46
1994-95 0.65
1995-96 0.86
1996-97 1.03
1997-98 1.18
1998-99 1.44
1999-00 1.79
2000-01 2.18
Page 11 of 41
Market Growth Rates
1990-91 - 1996-97 13.9%
1996-97 - 2001-02 23.4%
2001-02 - 2006-07 18.2%
2004-05 - 2009-10 11.7%
2009-10 - 2014-15 9.0%

12. 2001-02 2.95
2002-03 3.84
2003-04 4.6
2004-05 5.3
2005-06 6
2006-07 6.8
2007-08 7.55
2008-09 8.4
2009-10 9.2
2014-15 14.15
(Source: Market forecast for automobiles two/ three wheeler industry
available at http://www.indiastat.com)
5.1 CONSUMER BEHAVIOUR
The salient features of consumer behaviour with respect to the product Bajaj Pulsar
bike are given below:
Income Factor: The occupation types and the income pattern of the consumers play a
very vital role in the buying behaviour of motor bike or any other two wheeler. It can
be seen that the choice of the product largely depends upon the kind of budget a
consumer is able to allocate. This certainly depends on the individual requirements too.
Due to growth of economy, the per capita income in India is increasing significantly
which has resulted in increase in disposable income. The rise in disposable income
coupled with easy availability of finance by various banks at reasonable interest rates
is the major driving force which has greatly influenced the consumers for owning bikes
of their choices.
Personal Factor: Consumer’s opinion about a product is influenced by his own
experiences, his choices and his beliefs he has developed. Any consumer personally
develops his choices due to his age, his stage in the life cycle, his psychological needs,
his status in the society, his lifestyle, his personality, his self-concepts etc. His beliefs
are influenced by the circumstances he faces in his life. The young generation male
population has aspirations for more stylish and powerful bikes having latest technology
Page 12 of 41
Leading Players
Company Share (%)
Hero Honda 46
Bajaj Auto 23
TVS Motors 16
Yamaha Motor 6
LML 5

13. and the features rather than the old and staid looking scooter of yesteryears or even
bikes of smaller capacity and power. The educational level of the consumer effects his
decision to go for newer designs which are more in tune with the modern times.
Social Factor: Consumer’s buying pattern is also influenced by his immediate associates
such as his family members, his friends, his co-workers his neighbors and his
acquaintances. They all have influence on his buying behavior. Any consumer while
buying a particular product is also mainly influenced by his immediate family. Now-a-
days, people are becoming more outwardly oriented. Also people are becoming more
consumption oriented. Further, there is shift from joint family to nuclear family which
has resulted in more aspirations for the individuals. Effect of the peer group is also
becoming more pronounced in shaping the consumer behavior.
Psychological factors: Psychological factors play a very important role in the buying
decisions of a consumer. Many needs, arising out of the psychological states of mind
which the consumer undergoes while making a decision to buy, play important role.
These needs are vital in influencing the motive of buying.
5.2 INTERVIEW OF RECENT BUYERS OF BAJAJ PULSAR
As a part of this project work, twelve recent buyers of Bajaj pulsar motor bike were
interviewed through ‘questionnaire’ method and interaction with them by the group
members. A copy of questionnaire is enclosed at Annexure-1. Questionnaire included
questions regarding age profile, income levels, occupation types, factors affecting
buying behaviour, feedback of the customers on performance of the bike. A brief
analysis of interview is presented below:
Age Group
0
10
20
30
40
50
60
18-25 26-35 36-45 45+
Years
%
Profession
0
10
20
30
40
50
60
70
Student Business Employed Unemployed
%
Out of twelve respondents, ten belonged to less than 35 years age group, where as only
two were over the age of 35. Among the respondents below 35 years of age, 40% were
below 25 years while the remaining 60% were in the age bracket of 25-35 years. As
Page 13 of 41

14. regards the profession of the respondents, four were students, two business people
and six were salaried people. This shows a bias toward young college going people and
those people who are in the early stages of the careers.
Annual Income
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
Upto 1
Lac
1 to 3 lacs 3 to 5 lacs above 5
lacs
Income
%
Primary Use
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
Work Place Market/ outing Passion/
Adventure
Purpose
%
Annual house hold income of most of the respondents fell into one lac to 3 lacs
category. Three respondents had an annual house hold income of less than one lacs
where as two respondents also had annual income of more than five lacs. Most of the
respondents used the bike for commuting to their work places. This also indicates that
the respondents were in the early stage of their work careers or college going
students. One respondent each suggested that their prime usage was for market outing
or passion/ adventure.
Average Monthly run (kms.)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
Upto 700 700 to
1000
1000 to
1500
1500 to
2000
Above
2000
%
Parameters influenced buying
decision
0.00
1.00
2.00
3.00
4.00
5.00
6.00
ComptetivepriceRuggednessBrandimage
Mileage
Style/lookDrivingcomfort
Rating
Most of the respondents, i.e. approximately 75% had a monthly running of their bikes
of less than 1000 km. However, some respondents also had high running of more than
Page 14 of 41

15. 2000 kms. As regards the parameters which affected their decision to buy the bike,
all parameters like were pricing, ruggedness, mileage, driving comfort, style/ look &
brand image more or less equally important. However, style/ look scored the highest
among the influencing parameters. Ruggedness and driving comfort were the other
more important parameters.
Advertising Media
0
1
2
3
4
5
TV/ Radio Newspaper/
Magazine
Hoardings Critic report
Communication Channel
0
1
2
3
4
5
6
O
w
n
experience
Fam
ily
advice
Advertisem
entFriends/relatives
Brand
Rating
Of the various channels
communication channels which
affected the decisions of the
consumer to buy the product, majority
of the respondents indicated advice
from friends, relatives or their own
experience. Only three respondents
indicated brand image and advertising.
Of the three alternative channels of
advertising, i.e. TV/radio,
newspaper/magazine and hoardings,
respondents were equally divided.
Respondents considered various other brands available in the market before buying
Bajaj pulsar. Among these Suzuki Fiero and hero Honda CBZ were considered by five
each of the correspondents. Two of the respondents considered TVS apache before
buying the Bajaj Pulsar.
Page 15 of 41
Alternate Choice
0
1
2
3
4
5
6
TVS
Apache
Suzuki
Fiero
Hero
Honda
CBZ
Hero
Honda
Achiever
Honda
Unicorn
Kinetic
GF-170

16. Overall Performance
0
1
2
3
4
5
6
7
8
Excellent
Verygood
Good
Satisfactory
Unsatisfactory
After Sales Service
0
1
2
3
4
5
6
7
8
9
Very
satisfied
Neither
satisfied
nor
dissatisfied
Very
dissatisfied
Most of the respondents were
satisfied but not very satisfied.
This is also reflected in their
ratings of very good and good but
not excellent. Of the parameters on
which respondents were most
satisfied was style. So customer
expectations are very high. It is
clear form data that no one very
unsatisfied with performance.
5.3 SUGGESTIONS/
RECOMMENDATIONS FOR
ENSURING CUSTOMER SATISFACTION
During survey, the respondents suggested the following scope for improvement. Some
of the suggestions relate to the design of the product, whereas some are related with
service centres.
Suggested improvements at manufacturing stage:
• Improvement in quality of body paint (UV radiation protection) to prevent
early fading of colour
• Introduction of tubeless tyres in all variants/ models in order to enhance
grip on the road and avoidance of immediate deflation on puncture
• Price reduction
• Apex features (digital panels, LED tail lamp, oiled cooled engine) in all
variants
• Better look of body
• Additional new features like digital panels should be cost free
Suggested improvements at Service centre:
Page 16 of 41
Performance feedback
3.40
3.60
3.80
4.00
4.20
4.40
4.60
Com
ptetive
priceRuggednessBrand
im
age
M
ileage
Style/look
Rating

17. • Crowd management at service centers like effective utilization/ capacity
enhancement at service facilities and improvement in amenities.
• Establishment of telephonic assistance for technical and maintenance
information.
• Creation of database of customers to facilitate reminding next service
dates.
The most important finding from the interview of the customers is that M/s Bajaj
Auto Ltd. has to thrust upon the improvement in After sales service facilities to
achieve higher level of customer satisfaction
6.0 COMPETITOR ANALYSIS
Competitors of a product are not only the direct competitors competing in that
particular segment, but all direct, indirect and potential solutions which satisfy the
same need of the consumer are considered as competitors. In fact this concept is to
be taken further to include all products or services which are competing for the
consumer’s budget. Hence the competitors of “Bajaj pulsar” Motorcycles have been
identified on different levels of product form, product category, generic need level
and the consumer budget level. Competitors in the product form level are those brands
which are directly competing with “BAJAJ PULSAR” in the premium motorcycles
segment, i.e. Hero Honda Achiever, Hero Honda CBZ, Honda Unicorn, TVS Apache,
Yamaha Gladiator and LML Graptor.
In the product category of two wheelers are all those players which are in the
products like scooters, mopeds, scooterettes, motoscooterettes and motorcycles of all
segments, i.e. entry level, premium and sports bikes.
The third level of competitors are those who are satisfying the generic need of
transportation and includes various forms of public transport like buses or suburban
rail system, auto/taxis, second hand cars and segment A cars.
The fourth levels of competitors are those who are vying for the consumer’s budget.
These have been illustrated in the diagram shown below.
Page 17 of 41

18. LEVELS OF COMPETITION FOR BAJAJ PULSAR
6.1 Overview of Competitors:
Page 18 of 41
Scooters
PULSAR
CBZ, Achiever,
Unicorn,
Apache
Fiero
PRODUCT FORM
PREMIUM
SEGMENTMOTORCYCLE
SS
Bicycle
Entry level bikes
Sports
Bikes
Mopeds
Motoscooterettes
PRODUCT CATEGORY: TWO WHEELERS
Scooterettes
Auto/Taxi
Small
Car
Second hand
car
Public transport
(Buses/Metro/Suburban)
GENERIC NEED: TRANSPORTATION
Vacation/Holiday
package
White goods CONSUMER BUDGET
Invest
ment
Laptop/PCs

19. India is the second largest market for two wheelers in the world and the motorcycles
command 82% of the total no. of two wheelers sold in India. Competition in two wheeler
space has been heating up with new launches happening consistently across segments.
An overview of competitors with their relative strengths, weaknesses, size,
profitability, growth and strategies etc. is presented here.
6.1.1 Hero Honda Motors Limited:
Hero Honda is currently the world’s largest motorcycle manufacturer thanks to its fuel
efficient, high quality products made in collaboration with Honda motorcycles,
Japan.The range of Hero Honda motorcycles include the Hero Honda Dawn, Hero
Honda Splendor, Hero Honda Passion, Hero Honda Glamour, Hero Honda CBZ and Hero
Honda Karizma.
When Hero Cycles and Honda Motor Company of Japan inked their joint venture in
India in April 1984, few could have imagined that the two would go on to create history.
In a little over two decades, the world's largest manufacturer of bicycles and the
global leader in motorcycles have created the world's single largest motorcycle
company. The company has sold over 15 million motorcycles and has consistently grown
at double digits since its inception and today, every second motorcycle sold in the
country today is a Hero Honda. The current sales and financial highlights of the
company are given in the table below.
Page 19 of 41

20. SORCE: http://www.herohonda.com/investors_pdf/financials_at_glance.pdf
Hero Honda has built two world-class manufacturing facilities at Dharuhera and
Gurgaon in Haryana that now churn out over 3 million bikes per year. During the year
substantive expansion have taken place in both the plants raising the capacity to
manufacture close to four million bikes per year. Third Greenfield project at Haridwar
is under progress which will initially augment the capacity by 0.5 millions bikes by mid
2007 and eventually increase the capacity to 1.5 million bikes per year by 2010.
Hero Honda has got a very strong dealer network and customer relationship program.
Hero Honda has set up over 2400 customer touch points, comprising a mix of dealers,
service centres and stockists across rural and urban India. Hero Honda has built and
cultivated a strong network and relationship with internal and external stakeholders,
Page 20 of 41

21. including Investors, Dealers, Vendors and Employees. These relationships have helped
the company hold on to the mantle of World No.1 for years in succession.
The main strength of Hero Honda is synergy. The two partners, leaders in their
respective domains, have been able to consistently draw on each other's strengths.
The Hero Group's deep domain knowledge of the Indian market and its supplier
network has meshed with Honda's mastery over four-stroke engine technology to
create modern and fuel-efficient machines at affordable prices for India’s 250-300
million strong middle class.
Progressively through the 1980s, the 1990s and now in the 2000s, Hero Honda has
relied on 3 R's-- Reach, Research and Reliability as its basic building blocks. Using
feedback from the market, a fully-equipped R&D center has consistently created best
practices in designing, testing and harmonization, besides placing strong emphasis on
road safety and ride quality. This emphasis has helped Hero Honda build products that
are ahead of their time.
In the 1980s, for example, Hero Honda became the first company in India to prove
that it was possible to drive a vehicle without polluting the roads. The company
introduced new generation motorcycles that set industry benchmarks for fuel thrift
and low emission. A legendary 'Fill it - Shut it - Forget it' campaign captured the
imagination of commuters across India, and Hero Honda sold millions of bikes purely on
the commitment of increased mileage.
Hero Honda was also one of India’s first automotive companies to get close to the
customer. Over the years, feedback has flowed back and forth seamlessly through a
unique CRM program - the Hero Honda Passport Program which now has over 2.5 million
members on its roster. The program has not only helped Hero Honda understand its
customers and deliver value at different price points, but has also created a loyal
community of brand ambassadors. HHML introduced cutting edge fuel injection
technology in its GLAMOUR Model and it is the first company to do so. The company
further wants to introduce this technology in other models also progressively.
Company is committed to maintain its leading position in the ever growing Indian
market. As Brijmohan Lal Munjal, the Chairman, Hero Honda Motors succinctly puts it,
"We pioneered India's motorcycle industry, and it's our responsibility now to take the
industry to the next level. We'll do all it takes to reach there”.
6.1.2 TVS Motor Ltd:
TVS group was formed as a transport company in 1911 as a leading producer of
automotive components. It entered two wheeler industry in the 1980s. TVS Motor was
originally incorporated in 1982 as Indian Motorcycles Pvt. Ltd to produce motorcycles
in collaboration with Suzuki, Japan, the company later went public under the banner
Page 21 of 41

22. Ind-Suzuki Motorcycles Limited, which was later renamed TVS-Suzuki Limited. The
perfect blend between the best design engineers and the latest technology made TVS-
Suzuki one of the leading (Third largest) two-wheeler manufacturers in the country
and has reached tenth position among the world listing. TVS Apache has already
become the number 2 brand in the premium segment of the motorcycle market and is
expected to gain a sizeable share in the segment during the current financial year.
It has two state of the art manufacturing plants with total capacity 2 mn vehicles, out
of which motorcycles capacity is 1.3 mn vehicles. All India reach through excellent
sales and service network. It’s dealer and customer network is widely spreaded in India
which includes over 500 dealers and 2500 customer touch points. Globally, TVS Motor
Company is the first two-wheeler manufacturer to be honoured with the hallmark of
Japanese Quality - The Deming Prize for Total Quality Management.
TVS Motor Company recorded a growth of 26% per cent in turnover to Rs. 939.62
Crores, growth of 32% in units of motorcycles sold to 233,506 units for the first
quarter ended June 2006. Profit Before Tax (PBT) was at Rs. 30.14 crores and Profit
After Tax (PAT) stood at Rs. 21.26 crores.
Source: http://www.tvsmotor.in/pdf/analystmeet2005.pdf
6.1.3 Honda Motorcycles & Scooters India pvt. Ltd.:
Established in 1999, the Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) is a
wholly owned subsidiary of Honda Motor Company Ltd., Japan and is located at
Manesar, Haryana. Honda's dream for India is to not only manufacture 2-wheelers of
global quality, but also meet and exceed the expectations of Indian customers with
outstanding after sales support.
Page 22 of 41

23. The initial installed capacity of Honda plant was 100,000 scooters per year, which has
reached 6,00,000 scooters by the year by 2007 and motorcycle capacity shall be
4,00,000 per annum. The total investment outlay for the initial capacity was Rs. 215
crores and now the accumulated investment is 800 crores.
Honda launched Unicorn, its first motorcycle in the Indian market in 2004. Powered by
a newly developed Honda 4-stroke, 150cc engine and incorporating cutting-edge
technologies developed by Honda's global R&D team. Unicorn is an engineering
masterpiece with international design appeal.
Honda has tried to replicate its unique dealership and customer servicing centres in
India in the same line as done across the globe. Wherever you travel across the globe,
Honda dealerships stand out with their unique identity. The design of the dealership in
India has also been done with the same purpose in mind. Every Honda dealership is
known as a H.E.A.D. - Honda Exclusive Authorized Dealer. Each H.E.A.D. exclusively
handles Honda 2-wheelers and promotes business activities based on policies that
focus on customer satisfaction. They are the representatives of HMSI in their
respective markets and provide 4S facilities under one roof as per Honda's worldwide
standards. These include sales, service, spare parts and safety in riding.
6.1.4 Kinetic India Ltd.:
The Kinetic Group of companies is a leading player in the automotive industry in India.
Kinetic Group, founded in 1974, has sold over 6 million vehicles in India. It has a history
of innovation and pioneering and has introduced several new concepts that have
revolutionized the two wheeler industry. Kinetic brought the concept of personalized
transport to India with the launch of the moped Luna in 1974. In 1984, it brought to
the Indian customers the first-ever gearless scooter which has come to symbolize
comfort, convenience and universal appeal. It has also brought to India new
technologies such as four valve engines, electric start on scooters and motorcycles, v-
twin engines, USD forks etc. It is the only company to offer top-end world class bikes
Comet and Aquila to Indian bike enthusiasts.
The group has an international technical collaboration with Hyosung Motors of Korea.
It has three state of the art manufacturing facilities at Koregaon Bhima, Ahmednagar
and Pithampur; and a nationwide network of nearly 450 dealers and over 1,000 service
centers. The company exports vehicles to developed countries like USA, Canada, Latin
America, Europe, Africa, Middle East and South Asia and has won several excellence
awards for exports on state and national level.
The company is preparing to launch some very exciting Italian designs over the next
two years. The GF 170 Laser bike is another product of the Kinetic-Hyosung
collaboration and is positioned in the premium segment of the two-wheeler market. The
Page 23 of 41

24. GF 170 Laser sports a hip, sporty look thanks to its unique design elements that include
twin headlamp, half-fairing, curvaceous rear-view mirrors, and a chunky masculine fuel
tank.
6.1.5 Yamah Motor India Ltd.:
Yamaha Motor India Sales Pvt Ltd is a wholly owned subsidiary of Yamaha Motor Co,
Ltd, Japan. Its product range includes Gladiator, G5 in the standard segment and Crux
and Libero in the basic segment.
Having operated in India as technology provider for almost two decades, YMI was
incorporated in August 2001 as 100'% subsidiary of YMC, Japan after severing its ties
with Escorts. Since then Yamaha India has launched several models, however, their
success rate in the market has been poor. At one time Yamaha was a leading player in
the two stroke bikes, but after phasing out of two stroke technology due to stringent
pollution norms, it has not been very successful in adapting to four stroke technology.
As a result company market share has declined to 4%. However, the company is gearing
for regaining its market share and has targeted to sell 1 million units per year by 2010.
After the subdued response to the Fazer, Yamaha Motor India has made another foray
into the executive bike segment with the Gladiator.
6.2 Strengths & Weaknesses of Competitors:
COMPETITOR STRENGTHS WEAKNESSES
Hero Honda • Market leader
• Best dealer & service
network
• Good resale value
• Fuel efficiency
• Large number of
variants at each price
point
• Good quality
• Not so successful in
premium segment
TVS Motors • Indigenous design
• Third largest market
share
• Comparatively good
dealer and service
network
• Less fuel efficient
• Poor resale value
• Less no. of variants
Yamaha Motor
India
• Robustness
• Durable spare parts
• Poor fuel efficiency
• Poor dealer & service
network
Page 24 of 41

25. • Poor availability of spare
parts
• No major technology
innovation
• Poor resale value
• Poor aesthetics
Honda (HMSIL) • Sporty look
• Good design
• Dealership network not
fully developed
• Poor availability of spare
parts
• Only two variants
Kinetic Motor • Good dealer network
• Brand image
• Relatively new entrant in
motor cycles
Comparitive features of different models:
Competing
Bikes
Particular
s
LML Graptor
LML
Graptor
Bajaj
Avenger
Bajaj
Avenger
Bajaj Pulsar
Bajaj
Pulsar 180
(DTS-i)
Hero Honda
Achiever
Hero
Honda
Achiever
Hero Honda
CBZ(Disc Brake)
Hero Honda
CBZ(Disc
Brake)
Honda Unicorn 150
cc
Honda Unicorn
(Electric Start)
MouthShut
Product Rating:
Product
Recommendation
: 75% 83% 83% 93% 84% 94%
Fuel
Consumption
(kms/litre):
Comfort:
Reliability:
Handling and
Control:
Looks:
Page 25 of 41

26. Price (Rs)* 50,900 63,000 58,875 NA 54,100 54,000
Engine
Engine
Displacement (cc)
150.8 178.6 178.6 149.1 156.6 149.1
Maximum Speed
(kmph)
NA 109 127 101 100 NA
Engine Type 4-stroke 4-stroke 4-stroke 4 4-stroke 4-stroke
Start Type Kick Electric Electric Kick/Electric Kick Electric
Fuel Capacity
(litres)
17 14 18 12.5 12.5 13
Maximum Power
(bhp)
13.45 16.5 16 13.4 12.6 12V DC
Mileage (kmpl) NA 45 78 NA 45 NA
No. of Cylinders 1 1 1 NA 1 1
Other Features
No. of Gears
/Variator
5 5 5 5 5 5
Electrics (AC/DC) 12V DC 12V DC 12V DC NA 12V DC 12V DC
Overall Length
(mm)
1980 2185 2000 2040 2090 2090
Height (mm) 1150 1060 1065 800 1115 1095
Wheelbase (mm) 1280 1475 1320 1290 1330 1340
Ground Clearance
(mm)
170 162 155 160 150 168
Kerb Weight (kg) 136 155 139 134 130 139
Competin
g Bikes:
Particular
s
Kinetic GF170
Laser
Kinetic Motors
GF-170 Laser
LML Beamer
LML Beamer
(Electric Start)
TVS Apache
TVS Apache
TVS Fiero FX
TVS Fiero FX
Disc
Yamaha Gladiator
Yamaha
Gladiator
MouthShut
Product Rating:
Product
Recommendatio
n: 85% 100% 88% 69% 94%
Fuel
Consumption
(kms/litre):
Comfort:
Reliability:
Handling and
Control:
Looks:
Page 26 of 41

27. Price (Rs)* 49,100 54,000 NA 52,900 NA
Engine
Engine
Displacement (cc)
166 151 147.5 147.5 123.7
Maximum Speed
(kmph)
115 NA NA NA NA
Engine Type 4-stroke 4-stroke 4 stroke 4-stroke 4
Start Type Electric Electric Kick Kick Kick/Electric
Fuel Capacity
(litres)
13.7 NA 16 NA 13
Maximum Power
(bhp)
14.6 13.45 13.5 12 NA
Mileage (kmpl) 50 NA NA NA 67
No. of Cylinders 1 1 1 1 1
Other Features
No. of Gears
/Variator
4 5 5 4 5
Electrics (AC/DC) 12V DC 12V DC NA 12V DC NA
Overall Length
(mm)
1968 1980 NA 2020 2065
Height (mm) 1073 1150 NA 1067 1100
Wheelbase (mm) 1292 1280 NA 1270 1300
Ground Clearance
(mm)
195 170 1260 155 160
Kerb Weight (kg) 134 136 136 126 123
Source: Mouthshut.com
7.0 MARKET SEGMENTATION
Segmentation of any consumer market is carried out in order to target, adjust and fine
tune the marketing program profitably by recognizing the differences in consumer
preferences. The major segmentation variables used are: geographic, demographic,
psychographic and behavioural. Impact of these factors and their relevance with
respect to two wheeler industry in general and motorcycles in particular are outline
briefly here.
Geographic Factors:
Main geographic factor in segmentation of two wheeler or motorcycle markets are
rural versus urban markets. Preference of urban markets is mainly for executive and
premium segments. Rise in income level of rural areas and the rising preference for
motorcycles as a means of transport due to its sturdiness and high mileage is going to
accelerate the motor cycle demand in rural areas. As high mileage along with
satisfactory looks is important for rural consumers, demand will be mainly for the
economy/entry segment and lower executive segment. Demand growth in rural areas
will be more than urban areas in future, as shown in the graph below.
Page 27 of 41

28. Demand projection in urban and rural areas for motorcycles
Another basis for segmentation can be domestic versus exports market and further
segmentation of domestic market into four regions.
Market Segmentation
Segment Share(%)
North 26
East 12
West 32
South 30
Region wise market share of motorcycles; source: indiastat.com
Although, exports in two wheelers are growing significantly (36% in 2005-06) mainly
due rising demand for Indian motorcycles from Sri Lanka, Colombia, Iran and
Philippines, its percentage to total sales is small at 6.8%.
Two-wheeler demand forecast (Urban, rural, domestic and
Exports up to 2010-11)
Page 28 of 41

29. Demographic Factors:
Major demographic factors which affect the consumer preferences with regard to
motorcycles or any two wheelers are age, stage in life cycle, gender, education level
and income levels. Increasing proportion of the Indian population in the age group of
18-24 years is leading to the preference of consumers to mainly motorcycles and to
some extent ungeared light scooters. Increase in education level of women is leading to
demand for light ungeared scooters. Motorcycles are mainly used by young population
who is unmarried or are married but at early stage of their life cycle with no or very
young children. Profession wise, they are mainly students or young professionals.
Psychographic Factors:
Psychographic factors consist of life style, values and personality traits. According to
SRIC-BI VALSTM
classifications, consumers of motorcycles can be thought to either
belong to achievers or experiencers, more likely the later type. Experiencers are
young, enthusiastic, impulsive people who seek variety, and excitement. They spend a
comparatively high proportion of income on fashion, entertainment and socializing.
Achievers are successful goal oriented people who focus on career and family and buy
premium products and demonstrate success to their peers. Both these groups have
enough resources. Consumers of motorcycle are outdoor loving, adventurous sports
oriented people who exhibit trendy life style.
Behavioral Factors:
Behavioral factors consist of mainly benefits sought by consumers, user status and
loyalty status. Consumers of motorcycles may be seeking one or more of following
benefits : fuel economy, style, sturdiness and riding comfort. First time users are
mainly going for motorcycles or ungeared scooters. Many second time users are
upgrading from existing geared scooters to motorcycles or going for higher capacity
premium segment. Motorcycle consumer may not exhibit brand loyalty in case of going
for up gradation and may opt for best value in the segment.
Page 29 of 41

30. 7.1 BROAD SEGMENTATION IN TWO WHEELER INDUSTRY:
Two wheeler industry is broadly segmented into following categories:
• Mopeds
• geared scooters
• gearless scooters
• motorcycles
However, sales wise motorcycle segment has grown to almost 82% of the total two
wheeler market. This has happened because of shifting preference of young Indians
for stylish and powerful motor cycles instead of traditional scooters, rise in income
levels, increase in rural demand due to rising income levels in rural areas. The turn
around came in 1998, when motor cycles overtook scooters and it has not looked back
since then. This is illustrated from the following graph.
Motorcycle sales overtake Scooters in 1998
Changing sales patterns with respect to different two wheeler segments is also
illustrated from following graphs.
Page 30 of 41

31. Source: TVS analyst meet 2005 (official TVS web site)
7.2 SUB SEGMENTATION OF MOTORCYCLE SEGMENT:
The motorcycle segment can be further subdivided into economy, executive and
premium segments.
Comparison of economy, executive and premium motorcycles
Each segment has been further subdivided like Economy standard and economy deluxe,
lower executive and upper executive, premium (mileage sensitive) and premium
customer segments. can be further subdivided into economy, executive and premium
segments.
Page 31 of 41

32. Motorycles: Segment-wise share for Industry
(source: CRIS-INFAC)
7.2.1 PROFILE OF VARIOUS SEGMENTS AND PRICE RANGE:
Market Segment: Products, Characteristics and Price Range
Segment Price
Rang
e
Major characteristics of the consumer
Economy 30,000-
35,000
1. Looking for good utility vehicle at low
cost
2. Caters largely to low-income urban
customers (largely small shop owners and
traders, junior officers, salesmen and
supervisor level officers), and low-income
buyers from rural areas, who are highly
dependent on monsoons and the overall
economic performance
Executive 36,000-
45,000
1. The lower band of this segment is more
conscious of economy, durability and style.
2. The upper band is more feature and
style-conscious
Premium 46,000-
55,000
Highly status/style/feature/power
conscious; nouveau riche. Preferred by
Page 32 of 41

33. rising income urban youth, BPO and
software sector executives
Upper Premium 55,000
and
above
Identified by either Engine Power and/or
ultra premium features. This segment will
not settle for less than the best.
Of late the the demarcation has been diminishing between various segments like
economy and executive segments and competitors are launching products at various
price points trying to fill the existing gaps. Also customer preferences are moving
towards more pricey, powerful and stylish motorcycles.
Changing customer preferences within motorcycle segment
Further, there has been a trend to consider the segmentation in terms of engine
capacity and the motorcycle market is divided in three segments: (i) entry or the price
category, (ii) value or the executive category, and (iii) premium or the performance
category. With rapid growth of the motorcycle market, the consumer segments have
been changing and newer niches have come into play.
From late 2004-05, Bajaj Auto has been considering a new segmentation which, is as
follows:
1. The 150cc+ segment, where Bajaj Auto's Pulsar twins and the Bajaj Avenger compete
in this segment.
Page 33 of 41

34. 2. The 125cc segment, where Bajaj Auto competes with its Discover DTS-i.
3. The upto 110cc segment in which Bajaj Auto has its CT 100, Discover 110cc and more
recently, the Platina.
Market share as per this segmentation is as follows.
Segment wise Market share according to Engine capacity
source: Bajaj Auto web site
7.3 MARKET TARGETTING BY BAJAJ AUTO & ITS COMPETITORS:
In motorcycle segment, the top three major players, i.e Hero Honda, Bajaj Auto and
TVS motor are following a differentiated marketing approach and targeting all the
three segments by various offerings. However, they have dominance in different
segments.
Entry or economy segment is very price sensitive. However, the profitability is the
lowest as the competition is very intense. In this segment Bajaj Auto has the maximum
market share.
Page 34 of 41

35. Market share in Economy segment, FY 07 (4 months); source: Bajaj web site
Executive or the value segment is mainly driven by product features and technology.
Hero Honda is the leading player in this segment but, Bajaj Auto has been giving stiff
competition in this segment and increased its market share to 21% in 2006-07.
FY 05 FY 07 (4 months)
Market share in Executive segment; source: Bajaj web site
In the premium segment, Bajaj Auto has the market leader position. The main drivers
in this segment are technology and performance. This segment has the highest
profitability and relatively low competition. This segment constitutes 10 per cent of
the market. The driving force in the segment has been the Pulsar 150 DTS-i. After the
introduction of a feature-upgraded model in October 2004, sales grew by 37 per cent
during the year. In the higher end of this segment, Bajaj Auto is present with Pulsar
180 DTS-i and the Avenger DTS-i, which was launched during the year 2004. Initially,
the Pulsar 180 was not differentiated from the Pulsar 150 in terms of looks. This was
carried out in 2005-06, and resulted in a 64 per cent surge in sales of the Pulsar 180.
Bajaj Auto continues its leadership position in this segment. During the year 2005-06,
Bajaj Auto opened a new Probiking showroom in Pune exclusively for the high-end bikes
- Pulsar 180 DTS-i and Avenger DTS-i. In February 2007, Bajaj Auto has launched its
new Pulsar 200 model in this segment.
FY 05 FY 07 (4 months)
Market share in Premium segment; source: Bajaj web site
Page 35 of 41

36. 7.4 MARKET POSITIONING OF BAJAJ PULSAR:
Bajaj Pulsar is positioned as a performance bike in the upper premium segment. Major
value propositions for the positioning and differentiation of the brand in this segment
was technology, design, styling and performance, which includes mileage, power and
other things like reliability and comfort. Bajaj is rolling all of these into a product for
its consumers. It's the combination of all of these five factors, which makes for a
unique product and that's why we it is a great success.
“Bajaj pulsar” 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.
Apart from the performance, a major part of the success in creating the brand was
the classic advertising campaign "Definitely Male ". The creative people 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. The creative team knew that the communication of this brand
should also be different. They stuck upon the Big Idea of India's He-Bike. Although lot
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 Gender.
This led to 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.
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 comes 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.
Page 36 of 41

37. In order to cater to different segments, Bajaj has carved out its traditional dealership
network into four distinct channels. For the first time in the industry, Bajaj Auto
started its new chain of showrooms for performance biking under a new brand, Bajaj
Probiking. It’s targeted at offering the high-end customer a different pre- and post-
sales experience. In future all the bigger and more powerful bikes will be launched
from the Probiking showrooms. Though dedicated showrooms for high-end products are
a global phenomenon in the automobile industry, this is the first time it’s being tried
out in India. Bajaj Auto, has tried to create a niche by concentrating on the biking
community and creating Probiking showrooms.
Bajaj Auto has further extended the portfolio with the launch of the new 200 cc
‘Pulsar’ DTS-i recently. 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 like an Oil cooler, both front and rear tubeless
tyres, new digital console, use of split seats for styling and comfort and electric start
as the sole means of engine cranking, dispensing with the kick lever. Pulsar 200 is being
launched with a new campaign revolving round the concept of Free Biking.
Launch of Pulsar 200 DTS-i would further reinforce its position in this segment. The
bike joins the 150 cc and the 180cc Pulsar DTS-i to extend the Pulsar DTS-i range
across a range of price and performance points.
8.0 CONCLUSIONS:
• Demand is continuously increasing for two wheelers bikes due burgeoning
economy.
• Frequent introduction of newer trendy models by players and the increasing
aggressiveness of key players will fuel two-wheeler growth in the long term.
• Rural demand will play a key role in steering motorcycle demand
• Easily availability of finance/loans and increasing disposable income of Indian
middle class is a thrust to two wheeler industry.
• Major players Hero Honda, Bajaj Auto and TVS motors controlling about 95%
market share.
• Technology and R&D will be the key feature in driving the consumer up the value
chain.
• Vendor’s consolidation is taking place in the industry to maintain quality and
competitive price.
• Dealer’s segmentation is taking place to serve effectively all targeted market
segments.
Page 37 of 41

38. References:
1. Industry update on 2 wheelers dated 13 April’ 2005 from
http://way2wealth.com
2. Related information from Indiastat.com and indsecurities.com
3. Official web site of Bajaj Auto Ltd.
4. Official web site of TVS Motors
5. Official web site of Hero Honda
6. Official web site of Kinetic motors
7. CRIS INFC two wheeler annual report
Annexure-1
FORMAT OF QUESTIONNAIRE GIVEN TO RESPONDENTS
Dear Sir / Madam,
We are the students of Post Graduate Diploma in Business Management (PGDBM) Program at
Management Development Institute, Gurgaon (Session 2007-08). We are carrying out a survey on Motor
bike industry in India.
In above regard, you are kindly requested to spare some time to attend to this questionnaire for your
opinion. This study is solely for the academic purpose and forms part of the aforesaid PGDBM Program.
QUESTIONNAIRE
1. What is your age group
a) 18 – 25 years
b) 26 – 35 years
c) 36 – 45 years
d) Above 45 years
2. What is your profession?
a) Student
b) Business
c) Employed
d) Unemployed
e) Any other (please specify) ____________________________________
3. What is your annual house hold income
a) Below Rs. 1 Lakh
b) Between Rs. 1 Lakhs – Rs. 3 Lakhs
c) Between Rs. 3 Lakhs – Rs. 5 Lakhs
d) More than Rs. 5 Lakhs
Page 38 of 41

39. 4. Prime use of motor bike for you is:
a) Reaching your work place
b) Going to market/ outing
c) Passion / adventures
d) Any other (please specify) ____________________________________
5. What is the average monthly running of your motor bike:
a) Less than 700 km
b) 700 km – 1000 km
c) 1000 km – 1500 km
d) 1500 km – 2000 km
e) Above 2000 km
6. Please rank the following factors in order of preference* for your decision in buying BAJAJ
PULSAR (*Order of preference should be given on a scale of 1-6; 1 = no preference, 2 = very little
preference, 3 = little preference, 4 = moderate preference, 5 = high preference, and 6 = very high
preference. For example, you give very high preference to ‘price’, please write ‘6’ against option (a)
price.):
a) Competitive Price ______
b) Ruggedness ______
c) brand image ______
d) Mileage ______
e) Style/look ______
f) Driving comfort level ______
g) any other (Please specify) _____________
7. What influenced your decision to buy Bajaj Pulsar ?
a) Own experience
b) Advice from family
c) Advertising
d) Advice from friends/ relatives
e) Any other source (please specify) ____________________________
8. Which advertising media has maximum influence on you:
a) Television / Radio
b) Newspaper/ magazines
c) Hoardings on public places
d) Article by critic or industry reports
e) Any other source (please specify) ____________________________
9. Which other models/ make of motor bike did you consider before purchasing Bajaj Pulsar?
a) TVS Apache
b) Suzuki Fiero
c) Hero Honda CBZ
d) Hero Honda Achiever
e) Honda Unicorn
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40. f) Kinetic GF-170
g) Any other source (please specify) ____________________________
10. How do you rate the performance of Bajaj Pulsar on overall basis ?
a) Excellent
b) Very Good
c) Good
d) Satisfactory
e) Unsatisfactory
11. How do you rate* the following factors of Bajaj Pulsar’s performance? (*Please rate on a scale
of 1-5; 1 = unsatisfactory, 2 = satisfactory, 3 = good, 4 = very good, and 5 = excellent. For example,
you give ranking as ‘Excellent’ to ‘price’, please write ‘5’ against option (a) price.):
a) Competitive Price ______
b) Ruggedness ______
c) brand image ______
d) Mileage ______
e) Style/look ______
f) any other (Please specify) _____________
12. How satisfied you are with after sales service provided by the company/ dealer?
a) Very satisfied
b) Somewhat satisfied
c) Neither satisfied nor dissatisfied
d) Somewhat dissatisfied
e) Very dissatisfied
13. If you are not fully satisfied with ‘Bajaj Pulsar, please give reasons for dissatisfaction in brief:
a) ____________________________________________________________
b) ____________________________________________________________
c) ____________________________________________________________
14. Any suggestion(s) to Baja Auto Ltd. for improving your satisfaction level:
___________________________________________________________________
___________________________________________________________________
T H A N K Y O U
Name of the Respondent : ___________________
Contact No.: ___________________
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41. Rajeev Kumar (Mobile: 9873549095) / A. N. Singh (Mobile: 9871795212)
e-mail : nmp20rajiv_k@mdi.ac.in / nmp20abhya_s@mdi.ac.in
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