Brand profile bajaj pulsar ximb

Brand Profile: Bajaj Pulsar
Prepared By:
Abhishek Kumar (UEMF17001)
Rahul Singh (UEMF17018)
Santosh Kr Mishra (UEMF17025)

Sr. No Content Page. No.
1 Executive summary 3
2 Introduction: Bajaj Auto 4
3 Bajaj Milestone 5
4 Shift in Two Wheeler Market 1995-2001 6
5 Two-wheeler Industry Scenario 1993-2016 7
6 Bajaj Pulsar 8
7 BCG Analysis 9
8 GE Matrix 12
9 SWOT Analysis 13
10 Market Segmentation & Positioning 15
11 Environmental Analysis 18
12 Competitive Forces Analysis 19
13 Bajaj Auto’s response to the competitive forces 19
14 Competitor Analysis 22
15 Life cycle 25
16 Factors Influencing Consumer Behavior 26
17 Consumer Buying Process 27
18 Customer Survey Analysis 28
19 Conclusion 32
20 References 33

1. Executive Summary
Indian two-wheeler markets have been very vibrant since 1984, when the Government of
India permitted the formation of joint venture companies in the two-wheeler sector with
minority foreign participation. This led to launching of Japanese designed bikes by three
major players Hero Honda (Splendor), Bajaj Kawasaki (KB-100), TVS Suzuki (Shogun).
Bajaj auto which was the market leader in two wheelers segment, with scooters as its
main product, started losing its trough to Hero Honda, who eventually became the market
leader in 2001. The changing demography, the booming rural market along with shift of
market preference for bikes led Bajaj auto to rethink and reformulate their strategy to go
aggressively for design, introduction and launch a performance bike with fuel efficiency
and the Pulsar was born.
Pulsar since its launch in Nov 2001 has been a market leader and a trend setter for the
value it has been delivering to its customers in terms of performance, efficiency, styling
and above all the Macho feeling, the unsuppressed desire associated with all male bikers
leading to a huge success of the Pulsar as brand.
This deliberation captures and analyses the competitive forces affecting the Pulsar as a
brand at the time of launch.
Bajaj Auto group was founded in the year 1945 and has been among the front-runners in
the motorcycle industry ever since. This very fact talks volumes about the company since
only the best if firms survive such a long time at the top. During the 60s, 70s and 80s
there was a 10-year waiting period for its products. The company only had to produce its
quota. Marketing or sales was not too much of an issue for them. Also the company‟s
owner was infamous for being part of the anti-liberalization lobby called Bombay Club.
However, the firm faced a major crisis in the 90s and the early years of the new century
due to increased competition from both foreign and domestic markets. However, Bajaj
came out only stronger with the competition and hardly depended on foreign help on this
account. And the product, which did this turnaround possible, was Pulsar. Pulsar is
exemplifying the fighting spirit of Bajaj. It is a classic example of an Indian company of
the pre-liberalization era, adapting itself to the changing scenario and coming out on tops.
Another interesting fact is how liberalization and embracing the change can work
wonders for a firm, which was one of the most skeptical of liberalization policies of the
Indian government.
The following project is a detailed marketing analysis of the product Bajaj Pulsar and its
variants in two-wheeler market. The project focuses first of all on the BRAND PROFILE
and environmental factors affecting Bajaj Pulsar and its SWOT analysis. Then we go on
to analyze the consumer behavior for Pulsar regarding purchase, decision making and
buying roles. The third section focuses on the competitor analysis of Bajaj Pulsar, their
various strategies and the market segmentation of the market.

2. Introduction: Bajaj Auto
Bajaj Group is one of the oldest & largest conglomerates based in Mumbai, Maharashtra. The
group comprises 34 companies & its flagship company Bajaj Auto is ranked as the world's
fourth largest two- and three-wheeler manufacturer. Bajaj Auto produces and exports
automobiles, scooters, motorcycles and auto rickshaws. The company has changed its image
from a scooter manufacturer to a two-wheeler manufacturer. Its product range encompasses
scooterettes, scooters and motorcycles. Its growth has come in the last four years after
successful introduction of models in the motorcycle segment. Earlier years ago the Indian
market loved small capacity, fuel efficient motorcycles (that formed 80-125 cc) and the
countrymen were quite satisfied with that trend. However, the market saw for the first time
that there was a demand for performance bikes with the launch of HERO HONDA CBZ in
1999.Bajaj Auto smelled money and opportunity and launched the PULSAR twins on
November 24 ,2001
 Bajaj entered the Indian Automobile market in 1948 and began selling imported two
and three wheelers.
 In 1970 Bajaj came up with an indigenous version of the scooter called Chetek and
followed it up in 1976 with Super.
 These two variants helped Bajaj capture the major share of the market leading up to
1991
 Post liberalization in 1991, however new players entered the marked armed with their
Joint Ventures with the foreign subsidiaries and offered fuel efficient, easy to ride and
elegantly built motorcycles. These were
 Ind-Suzuki Ltd. (TVS Group and Suzuki MotoCorp.)
 Hero Honda Motors Ltd. (Hero Group and Honda Motor Corp.)
 Escorts-Yamaha Motors Ltd. (Escorts Ltd. And Yamaha Motor Corp.)
Bajaj Auto 1995-2000
 Bajaj had a minor presence in the motorcycle segment with its Bajaj Kawasaki
KB100-100 CC and KB125-125 CC (launched 1986)
 Kawasaki Bajaj 4S Champion-100 CC, 1991
 Bajaj Caliber-115 CC launched in 1998
 Bajaj‟s main motorcycle brands were not doing well and Bajaj was facing technical
issues in implementing the motorcycle technology of Kawasaki.

 Other competitors such as Hero Honda and TVS were gaining market share in the 100
CC-125 CC motorcycle segment with Splendor and Shogun respectively.
 The existing Kawasaki model was unable to sustain the stiff condition due to design
and production issues
 Market preference was moving from Scooters to Motorcycles
3. Bajaj Milestone
2009
•Bajaj Pulsar 150 & Pulsar 180 upgrade launched
2008
•Bajaj Platina 125 DTS-Si launched
2007
•RE GDi autorickshaw launched
2006
•Bajaj Platina launched
2005
•Bajaj Discover launched
2004
•Bajaj Discover DTS-i launched
2003
•Bajaj Pulsar DTS-i is launched.
2001
• Bajaj Auto launches its latest offering in the premium bike segment 'Pulsar'.
2000
•The Bajaj Saffire is introduced
1999
•Caliber motorcycle notches up 100,000 sales in record time of 12 months
1998
•Production commences at Chakan plant.

4. Shift in Two-Wheeler Market 1995-2001
Shift from scooter to motorcycles-Factors
 Fuel efficiency
 Four stroke technologies
 Youth preference for bikes increased with increase in the number of young buyers
 Motorcycles accepted in rural areas – rugged vehicle
 Central Mounted Engine provided more stability as compared to the side mounted
engine of scooters
Table 1: Shift in India’s Two-Wheeler Market from Scooters to
Motorcycles (1994-95 to 1999-2000)
Year Motorcycles Scooters
Moped and Step-
Thru
Total Two
Wheelers
1994-95 528043 1130248 549940 2208231
1995-96 660672 1321217 678116 2660005
1996-97 802266 1400758 762450 2965474
1997-98 913956 1344186 784205 3042347
1998-99 1176779 1396759 829993 3403531
1999-00 1612895 1357483 806341 3776719
Figure 1: Society of Indian Automobile Manufacturer’s Data
0
0.5
1
1.5
2
2.5
3
3.5
4
1994-95 1995-96 1996-97 1997-98 1998-99 1999-00
SalesinMillions
Year
Two Wheeler Market Sales Figures 1994-2000
Moped and Step-Thru Motorcycles Scooters
Figure 2: Two Wheeler Market Sales Figures 1994 - 2000

Figure 3: Comparison of Sales Figures of Scooter vs Motor Cycle
Comparison of Scooter Vs. Motorcycle Sales
 Between 1994-1999 the two-wheeler market grew at CAGR of 22.4 %
 The Scooter segment growth was stagnant
 The Motorcycle segment grew at CAGR 32.2 %
 The launch of Hero Honda-Splendor in 1995 led the growth of the Motorcycle
segment in India
5. Two-Wheeler Industry Scenario 1993-2016
The two-wheeler market was on the rise since 1993. Key drivers for this growth were:
 Growth of Economy – GDP
 Increased availability of cheap consumer financing
 Increasing availability of fuel-efficient and low-maintenance models
 Increasing urbanization, which creates a need for personal transportation;
 Changes in the demographic profile
 Changing demographic characteristics
 Difference between two-wheeler and passenger car prices, which makes two-
wheelers the entry-level vehicle
 Steady increase in per capita income over the past five years
 Increasing number of models with different features to satisfy diverse consumer
needs.
 Inadequate public transportation system, especially in the semi-urban and rural
areas.
0
5
10
15
20
1994-95 1995-96 1996-97 1997-98 1998-99 1999-00
SalesinMillion
Comparison of Scooter Vs. Motorcycle Sales 1994-2000 (in Million)

6. Bajaj Pulsar
The Bajaj Pulsar is a motorcycle brand owned by Bajaj Auto in India. The two-wheeler
was developed by the product engineering division of Bajaj Auto in association with
Tokyo R&D, and later with motorcycle designer Glynn Kerr. Currently there are five
variants available, with engine capacities of 135 cc, 150 cc, 180 cc, 200 cc, 220 cc and
400 cc (Renamed Dominar before release) Previously it was also offered with a 200 cc
DTSi oil cooled engine, which now has been discontinued. Instead a new version Pulsar
200NS was launched in 2012. But then Pulsar 200NS production was discontinued in
August 2015 (to be reintroduced in early 2017 with BS IV Emission compliance). With
an average monthly sale of around 86,000 units in 2011, Pulsar claimed a 2011 market
share of 47% in its segment. By April 2012, more than five million units of Pulsar were
sold
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 with
350cc and 500cc variants). The launch and success of Hero Honda CBZ in 1999 showed
that there was demand for performance bikes. Bajaj took the cue from there on and
launched the Pulsar twins in India on 24 November 2001. Since the introduction and
success of Bajaj Pulsar, Indian youth began expecting high power and other features from
affordable motorcycles.
The Pulsar was one of the first affordable performance bikes in the country. The Pulsar
brand received various updates and additions to the portfolio to make it even more
accessible to enthusiasts. . Prices start from INR 58,002 for the 135 LS to INR 1,32,499
for the RS 200, (all prices, ex-showroom, New Delhi). Mileage figure is around 60 kmpl
for the 135 LS.
Specifications
Pulsar
135LS
DTS-i
Pulsar
150
DTS-i
Pulsar
180
DTS-i
Pulsar
200
DTS-i
Pulsar
220
DTS-Fi
Pulsar
220F
DTS-i
Pulsar
220S
DTS-i
Pulsar
200NS
Wheelbase
(mm) 1325 1320 1350 1345 1350 1350 1350 1363
Power
(PS) 13.5 14.09 17.02 18.5 20.8 21 21.04 23.5
Torque
(NM) 11.4 12.76 14.22 17 19.12 19.15 19.12 18.3
Top Speed
(km/h) 115 115 120 122 138 148 142 136
Figure 4: Specifications

Figure 5: Models of Pulsar
7. BCG Analysis
The products manufactured by an organization can be placed into different categories on
the basis of their financial performance, chances of future growth and market share. BCG
Matrix has been developed as a framework to help identify the products of a business
entity into different categories in accordance to their market share and industry maturity
level.

Figure 6: BCG Matrix Analysis
Cash Cows
The quadrant of cash cow is for those products which bring in high revenues for an
organization without having the need to invest a great deal to manage their operations
and marketing. These brands or business units have a well-established market
presence, a high demand among the consumers and high degree of acceptance in the
target market. In addition to this, the industry in which cash cows are operating is at
the mature stage. Cash cows have a significant amount of market share as well, due to
which the managers try to gain as much financial gain out of these products as
possible. There are two products which have been a rich source of income for Bajaj
autos, including, Bajaj 3 wheelers and Platina. Mohile (2013) has discussed the
prominent position of the three wheelers for the company by indicating that around
30% of the profits of Bajaj auto generate from the sale of its three wheelers. In this
category, the company has launched a more fuel-efficient model, expecting it to
further gain benefit from this cash cow. In addition, within the category of two
wheelers, Platina brand has gained positive response in the market, as evident through
its higher market share. Apart from these brands, the CT 100 has gained the position
of top selling item by the company (Gopalan, 2016), therefore it can also be identified
as a cash cow.

Stars
The second quadrant in the BCG Matrix is for those products that are not giving as
much financial return as the cash cows, nevertheless, they are a lucrative segment for
the business. These products have optimistic future prospects as their industry is still
growing and their market share can further increase with the passage of time through
continuous investment and development. The stars can later on become a cash cow for
the company once they attain maturity and require little investment to maintain the
steady earning potential. Similar to cash cows, the stars support the company in future
growth and financial development. In the quadrant of Stars, the relevant products are
Discover 135cc, Pulsar 150 cc and Pulsar 180 cc. These products have a high market
share and the consumer demand is expected to grow in future, which would
eventually create a higher market share for this business segment. Discover 135cc is a
growing business unit for the company as the demand for this two-wheeler has been
significant. The company had some issues in maintaining high sales; however the
management has made efforts to retain a profitable position of its two-wheeler
(Baggonkar, 2014). Pulsar is another renowned brand from Bajaj autos that has made
a strong position in the Indian two-wheeler industry. As observed by Chatterjee
(2016), Pulsar has been included in the top 10 leading brands of motorcycles in the
country, while V15 is also a rising star for Bajaj auto.
Question Marks
Some products need time to mature and develop enough market share to be regarded
as a success for the company. The present performance of these products shows that
there is some risk of product failure. On the other hand, there is also a possibility of
the product becoming a successful item, helping the company to add another star to its
product line. These items which have a high degree of uncertainty for their future are
termed as question marks. The industry has the potential to grow; therefore the
management is hopeful that the product may gain a better position with investment
and effort. The market share of the question marks can also increase when the product
receives a better reception among the target market. The ninja brand has not been able
to perform as well as the other two wheelers manufactured by Bajaj auto; therefore it
has been placed in the category of question mark. Its sports oriented motorcycles have
the growth potential however there is also uncertainty with respect to the degree of
success these products will achieve in the Indian market. Another product that is a
question mark for Bajaj Auto is Blade which is also underperforming.
Dogs
Not all products of an organization provide the results expected by the management.
Some products fail to move beyond the breakeven phase, while others become a
continued source of loss for the business entity. These products have been termed as
dogs in the BCG Matrix. The fourth quadrant represents the products which have low
market share and their growth chances are further limited due to the slow
development of the industry, along with low chances of industry recovery. Since these
business units are underperforming, it makes them a suitable option for liquidation,

encouraging the management to stop investing resources in these unprofitable units.
Bajaj Splash and Bajaj Chetak, both brands of scooters have not been able to perform
well in the Indian market. Despite the intensive marketing campaign, the company
was not able to sell the units as per their expectations, suggesting that the scooter is
likely to be a failed investment. Due to this reason, the company has stopped further
investment in these domains as they were not expected to give any positive return to
the firm.
8. GE Matrix
Figure 7: GE Matrix
The nine cells GE Matrix are groomed grouped on the basis of Low-High industry
attractiveness and weak to strong business or competitive position. Zones are made each
indicating different combinations that are as follows:
1. The upper left corner indicate strong SBU‟s i.e. pulsar 150& 180cc,discover
125cc. Discover in which the company should invest or grow with strategic
decisions such as market development or expansion.

2. The diagonal cells stretching from lower left to upper –right indicate SBU‟s that
are XCD. Ct100.Pulsar 200&220cc Medium in overall attractiveness indicating
hold and maintain current strategies.
3. The 3 cells in lower right corner indicate SBU‟s that are low in overall
attractiveness that are Avenger, Kristal, platina indicating retrenchment strategies
of divestment and closure adopting turnaround strategies.
9. SWOT Analysis
Figure 8: SWOT Analysis
Strengths
 Excellent brand name: Crowned as the "Most popular sports bike, adorned with
47% market share in 2011. Changed preference of Indians from 100cc bikes to
larger ones, strong base with customers, single handedly managed to keep
Japanese on their toes
 Extensive R&D focus: According to Bajaj the 135cc DTS-i engine in Pulsar 135
LS is the world's first DTSi engine to feature 4 valves, has been designed for
better performance than regular a 2-Valve engine. Combined with the DTS-i
(Digital Twin Spark-ignition) technology which maximizes combustion to deliver
STRENGTHS
1. Excellent brand name
2. Extensive R&D focus
3. High performance products across all categories
4. Product design and development capabilities
5. Wide Spread Distribution network
WEAKNESS
1. Mileage on a lower side due to focus on Power
2. High cost in various variants
3. Styles and Design
4. Pricing
5. The fuel tank capacity
OPPORTUNITIES
1. Expansion to rural sector
2. Competing in the international market
3. Developmental changes
4. Bajaj as a true MNC
THREATS
1. New Entrants
2. Competitors
3. Low Priced Bikes
SWOT

enhanced power and superior mileage with low emissions, the Pulsar 135 LS has
one of the most efficient production engines ever.
 High performance products across all categories: Pulsar 200cc features India‟s
First Oil Cooled Engine which delivers maximum power making it most powerful
engine offered by Bajaj. It also delivers an impressive mileage of 38.2 kmpl in
city as compared to Karizma which delivers 30 kmpl in city.
 Product design and development capabilities: Bajaj Pulsar includes safety
features like twin pilot lamps powered on a DC circuit that ensures a constant and
powerful beam of light at all speeds of travel. Looking at the levels of equipment,
design sophistication and sheer performance of the new Pulsar 200NS, is the best
value-for-money (VFM) package available in the country as of date.
 Widespread distribution network : Planned massive distribution network
expansion to meet robust growth targets in 2010, added 130 new dealerships and
upgraded 1,100 service centers by 2011.
Weakness
 Mileage on a lower side due to focus on Power: The mileage of Bajaj pulsar
comes out to be between 45-60 km/l, which is very low for a two-wheeler. The
mileage is compromised for high power.
 High cost in various variants: The pricing of Bajaj pulsar is on the higher side
for the Indian market. It targets the upper middle class and hence becomes
inaccessible to the lower middle classes.
 Styles and Design: Pulsar 200cc and 220cc derives their styling from their
previous version Pulsar 150 Dts-i and 180 Dts-i. All the four models look very
similar. Only the power distinguishes them from each other.
 Pricing; Bajaj 220cc (Rs 82449 basic price) is costlier than karizma (Rs 78000
basic price)
 The fuel tank capacity: The fuel tank capacity is 12 liters, which is not very
touring friendly and hence we have to constantly keep a check on the fuel meter
while traveling.
Opportunities
 Expansion to rural sector: Should target the semi-urban and rural sector by
introducing variants with limited features and affordable process i.e. P135.
 Competing in the international market: With the onslaught of foreign
automakers, restricted to multi-polar sector. Can introduce new models with better
combination of technology and features to make a worldwide impact.
 Developmental changes: Bike weight and silencer corrosion issues, engine over
heating problems. Can work on structure to produce world class functionality.
 Bajaj as a true MNC: Hamara Bajaj a strong player in terms of volumes but
needs to put its best foot forward. The P375 model can take it to next level
currently occupied by likes of Kawasaki, Honda, BMW.

Threats
 New Entrants: The new bikes launched by the competitor companies like Hero
Moto Corp., TVS, Kawasaki, Yamaha can act as a potential threat.
 Competitors: Enhanced focus on R&D has led to optimization of the rival models
incessantly. Plus, the reduction in cost of cars in lower segment is acting as a
potential threat.
 Low Priced Bikes: With the increasing fuel prices, the market segment of the
low-priced bikes is eating away the share of Pulsar. Optimization in the fuel
efficiency department can be a possible solution.
10. Market Segmentation & Positioning
Companies cannot connect with all the customers in large, broad or diverse markets.
But they can divide such markets into groups of consumers or segments with
distinct needs and wants. Market segmentation mainly means slicing the market
into such groups in order to cater well to the needs of the customers belonging to a
segment. A company then needs to identify which market segments it can serve
effectively. This requires a keen understanding of consumer behavior and careful
strategic thinking.
Segments in a market may be defined by as age, family size, family life cycle,
gender, income, occupation, education, religion, looking at the descriptive
characteristics- geographic, demographic and psychographic.
Geographic Segmentation divides the market into geographical units such as
nations, states, regions, countries, cities or neighborhoods. There is a need to
prioritize geographical markets to focus marketing efforts as a lower proportion of
geographical markets accounts for a larger proportion of consumption potential.
In demographic segmentation, we divide the market on variables such race,
generation, nationality, and social class. This type of segmentation is important
because it is often associated with consumer needs and wants. Even when the market
segments are defined in non-demographic terms, we need to link them to the
demographic characteristics to estimate the size of the market.
In psychographic segmentation, buyers are divided into different groups on the basis
of psychological/personality traits, lifestyle, or values. People within the same
demographic segment can belong to different psychographic segments.
Segments in a market can also be defined by looking at the behavioral characteristics-
needs and benefits, decision roles, and user and usage related variables. The

consumers are divided into groups on the basis of their knowledge of, attitude toward,
use of or response to a product.
Needs-based or benefits-based segmentation is a widely used approach as it
identifies distinct segments with clear market implications. This type of segmentation
is useful for identifying market opportunities and developing relevant value
propositions for the customers.
People generally play five roles in the buying process- initiator, influencer, decider,
buyer, and user. Recognizing the different buying roles and identifying those who
play these roles for a given product or service are vital in effective marketing. This is
very useful in designing the communication strategy. While developing the marketing
plans and communication strategies, companies need to identify and specify the role
players in the consumption system and the means and modalities of reaching out to
them.
User and usage related variables are also used to segment the market. This includes
the occasion, user status, usage rate, buyer-readiness stage and loyalty status.
The complete bike market of India is segmented on basis of two factors which are
Age and Life-cycle stage of the consumer
 Based on this demographic factor the market is segmented into youth-centric
bikes and the bikes preferred by middle aged consumer
 The features of the bikes are designed according to the market segment
targeted e.g. Youth-centric bikes are high on power and acceleration whereas
the middle-aged consumer prefer low maintenance and better fuel efficiency in
a bike
 The buying roles also differ in the purchase of the bikes of these two segments
The market is divided in to sub – segments based
Usage rate of the bike
 In India with the varying quality of roads available in the rural and urban areas
there exists segments based on the usage of the bike
 The rural and suburban users prefer to have a bike having considerable
mileage and lower maintenance cost
 Often the consumers of rural and suburban areas have to use the bike for
comparatively longer journeys so comfortable drive also becomes a major
feature in the design
 Whereas the urban market has a larger need for better styled and high-power
bikes
The market segmentation of Bajaj Pulsar is done based on the demographic
characteristic of age and life-cycle stage the consumer is in. It is available in 5

variants in the market with different features and mainly differing in the engine
capacity. Each model has a different customer base but the primary factor taken into
consideration for segmentation is the age and life-cycle stage of the consumer. The
age group targeted ranges from 20 to 35 plus its target base is also the college going
kids and young office going people. The sub segmentation based on the model variant
is
1. Pulsar 135 cc
 Pulsar 135cc approximately costs INR 59000 and offers a better mileage
(approx. 65 kmpl) than the other variants of Pulsar due to its lower engine
capacity
 This model is relatively new as compared to the other models of Pulsar and
has been introduced mainly to cater to the growing demand of a fuel-
efficient sports bike
 Target market: The young college going students and working professionals
who need a fuel efficient bike along with a sporty macho image
2. Pulsar 150 cc & Pulsar 180 cc
 Pulsar 150 cc is the flagship model of the Pulsar and the first model of Pulsar
to be introduced in the market
 The approximate price of the 150 cc and 180 cc model are INR 69000 and
INR 73000 respectively showing insignificant variation in the cost
 The main difference in these two models is in the terms of the fuel economy
where 150 cc engine offers 50-55 kmpl and the 180-cc engine offers 40-45
kmpl
 Target markets: People a little higher in income levels e.g. Managers
executives, college students belonging to families belonging to above average
income strata
3. Pulsar 200 ns & Pulsar 220 cc
 These are the high-end models of the brand “Pulsar” in terms of features,
power and cost
 They are available at an approximate price of INR 90000 and are significantly
different visually and qualitatively from the other Pulsar models
 Target market: biking enthusiasts and for the consumers who can‟t afford
high power costly imported bike

Figure 9: Market Share 2016
11. Environmental Analysis
The Indian two wheelers market has been a competitive one right from its
inception. Initially the market included two segments, first segment consisting of the 2
stroke scooters and the other segment comprising of the bullet motorcycles and its
variants.
Till the late 1990s the two wheelers market was dominated by Bajaj scooters almost
establishing a monopoly in the market. But the rapidly expanding market of
motorcycles in India presented a headache for the Bajaj scooters but also provided an
opportunity for Bajaj to diversify its range of products. As a result, Bajaj entered the
motorcycle market in a joint venture with Kawasaki. Initially their focus was on low
priced fuel-efficient bikes only. The initial models launched saw lukewarm response
across the nation.
Sports bike segment of Indian automotive sector was left untouched till 1999 when
Hero Honda launched CBZ model and it turned out to be a success in the urban
areas. Bajaj following a split with Kawasaki launched its first bike, a highly fuel-
efficient model but it failed to generate the necessary ripples in its segment. As a
result, the company was in throes of a slump.
In these rough times Rahul Bajaj, the chairman of Bajaj group, decided to launch
a dedicated sports bike, Pulsar, for the Indian consumers which played to Bajaj‟s
strengths of fuel efficient machines specially designed for Indian roads and also shed
the image of the company‟s inferiorly styled models. At the time when India was
riding on 100cc bikes, Pulsar was launched with two variants; 150cc and 180cc,
stirring the entire two-wheeler market and the rest is history.
Hero
Motocorp
38%
Bajaj Auto
12%
TVS
13%
Honda
27%
Others
10%
Market Share 2016
Hero Motocorp Bajaj Auto TVS Honda Others

12. Competitive Forces Analysis
Potential Entrants
1) TVS –Apache
2) Honda- CB Unicorn
150 Plus
3) Yamaha FZ
4) Suzuki Gixxer
5) Hero –CBZ extreme
Supplier Power
1) Multiple Vendors
Industry Competition
1) Honda
2) TVS
3) Suzuki
4) Yamaha
5) Hero
Buyer Power
1) Younger
Generation
2) Increased Buying
Capacity
3) Multiple two-
wheeler options
Substitutes
1) Moped
2) E Bikes
3) Geared Scooters
4) Gearless Scooters
5) Step-Thrus
6) Scooterettes
13. Bajaj Auto’s response to the competitive forces
 During 1999-2000 Bajaj Boxer was launched in the 100 CC segment to:
 Cater to the rural market
 Test the performance of Bajaj Auto‟s indigenously built engine

 With Boxer‟s success Bajaj Auto wanted to leverage its capacity to build higher
performance engines.
 CBZ‟s drawbacks and the potential market were conducive to launch a premium
segment bike at a price lower than CBZ
 To provide a distinctive edge to the Bike, they launched the “Definitely Male”
Campaign
 The number of Vendors was rationalized and was brought down to 285.
And thus, the Bajaj Pulsar was born.
The Aftermath
 Bajaj Pulsar was launched in November 2001 in twin variants of 150 CC and 180
CC
 First bike by Bajaj without the Kawasaki label
 It had a 12 BHP engine with a first time offering of disc breaks to the Indian
consumer
 The “Definitely Male” campaign by “Ogilvy and Mather” was an instant hit and
helped Pulsar cultivate the image of a powerful “Male Bike”
 Pulsar was launched for the 20-25 year youth segment but also found appeal in the
older audience and thus found its target audience in the 21-35 year segment
Table 1:Bajaj Auto and Hero Honda's Share of the Indian Two-Wheeler Industry
(1998-99 to 2009-10)
Year Bajaj
Hero
Honda Industry
Bajaj Auto %
Share
Hero Honda %
Share
1998-99 1.24 0.53 3.4 36% 16%
1999-00 1.24 0.76 3.8 33% 20%
2000-01 1.05 1.03 3.7 28% 28%
2001-02 1.11 1.43 4.3 26% 33%
2002-03 1.25 1.68 5.1 25% 33%
2003-04 1.02 2.07 4.3 24% 48%
2004-05 1.44 2.62 5.2 28% 50%
2005-06 1.91 2.62 7.6 25% 34%
2006-07 2.37 2.91 8.5 28% 34%
2007-08 2.13 3.33 8.0 27% 42%
2008-09 1.91 3.72 8.4 23% 44%
2009-10 2.51 4.60 10.5 24% 44%

Figure 10: Market Share by volume -Bajaj Vs. Hero Honda(in Millions)
Figure 11: Market Share Comparison
Figure 12: Market Share by volume -Bajaj Vs. Hero Moto Corp (in Millions)
36%
33%
28%
26% 25% 24%
28%
25%
28% 27%
23% 24%
16%
20%
28%
33% 33%
48%
50%
34% 34%
42%
44% 44%
1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
PercentageShare
Year
Market Share Bajaj Vs Hero Honda 1998-2010
Bajaj Auto % Share Hero Honda % Share

Figure 13: Market Share Comparison 2015-16
14. Competitor Analysis
To be a long-term market leader is the goal of any marketer. In today‟s challenging
marketing circumstances, the companies have to reformulate their marketing
strategies and offerings several times. Economic conditions change, competitors
launch new assaults, and the buyer interests and requirements evolve. Competition
plays a key role in how the marketers can best manage their brands depending on the
market position and stage of the product life cycle.
In order to remain the market leader, the firm must find ways to expand the total
market demand by finding new customers and increasing the usage of the product. It
25% 25% 24% 20% 18% 18%
40% 40%
24%
37% 36% 35%
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
PercentageShare
Year
Market Share Bajaj Vs Hero Moto Corp 2010-
2015-16
Bajaj Auto % Share Hero Moto Corp %
Share
Table 2:Bajaj Auto and Hero Moto Corp Share of the Indian Two-Wheeler Industry
(2010-11 to 2015-16)
Year Bajaj
Hero Moto
Corp Industry
Bajaj Auto %
Share
Hero Moto Corp %
Share
2010-11 3.38 5.40 13.4 25% 40%
2011-12 3.83 6.23 15.4 25% 40%
2012-13 3.75 6.07 15.7 24% 24%
2013-14 3.42 6.24 16.9 20% 37%
2014-15 3.29 6.63 18.5 18% 36%
2015-16 3.35 6.63 18.8 18% 35%

can also protect the market share it has by following proactive marketing (responsive,
anticipative or creative marketing) or by following a strategy of defensive marketing
for its product.
The firms that are not the market leaders but aim to become the leaders can attack the
leader and other competitors in an aggressive bid to increase its market share, as a
market challenger. It can define its strategic objectives and the opponents i.e. choose
to attack the market leader, firms of a similar size that are not doing their job or the
small and local firms. The firm may choose a general attack strategy- by a frontal,
flank, encirclement, bypass or guerrilla attack strategy.
Some of the major competitors of Bajaj with bikes in 150cc+ category which are a
competition to Pulsar are
Hero MotoCorp
Hero MotoCorp is the largest producer of two-wheeler motorcycle in the world. It is
the current market leader in the overall bike market with a market share of 56%.
Pulsar‟s main competitors from Hero are CBZ xtreme, Karizma ZMR and Hunk
 CBZ xtreme & Hunk
 Target Segment : Age group 18-35
College going students or young professionals
 Product Strategy : Acceptable performance with low maintenance
 Pricing Strategy : Going rate pricing
 Promotion Strategy : High Spending
 Positioning Strategy : Powerful bike for daily usage
 Karizma ZMR
Rich college going students or biking enthusiasts
 Product Strategy : Visually appealing low power sports bike
 Pricing Strategy : Premium pricing
 Positioning Strategy : Biking enthusiasts
Making a style statement
Honda
 Unicorn

College going students or young and middle-aged
consumer
 Product Strategy : Stable performance with better handling
 Promotion Strategy : Moderate Spending
 Positioning Strategy : Hassel-free bike for daily usage
Yamaha
 FZ-S, Fazer & R-15
 Product Strategy : Technologically advanced
Scaled down version of their internationally
successful bikes
 Pricing Strategy : Premium pricing
 Positioning Strategy : Youth-centric and style with technology
TVS
 Apache-RTR
 Product Strategy : Replicating every successful feature of bikes available
in segment
 Promotion Strategy : Moderate Spending
 Positioning Strategy : Youth-centric and high acceleration bike

15. Life Cycle
Figure 14: Product Life Cycle
A new product progress through a sequence of stages from introduction to growth
maturity & decline. This sequence is known as the product life cycle and is associated
with changes In the marketing situation, thus impacting the marketing strategy.
The different stages in a product life cycle of Brand Auto are as follows
Introduction Stage: In the introduction stage, the firm seeks to build product
awareness and develop a market for the product. The product of Bajaj auto in this
stage is pulsar 200 & 220cc, XCD & Discover 135cc these products are introduced
newly to the market & have a potential for cash generation.
Growth Stage: In the growth stage, the firms seek to build brand preference &
increase the market share. Bajaj auto products in this stage are Bajaj Pulsar 150 &
180cc. they have high demand in market & they provide good return to the company.
Maturity Stage: At maturity, the strong growth in the sale diminishes. Competition
may appear with similar product. The primary objective at this point is to defend
market share while maximizing the profit. Bajaj auto product in this stage is CT100 &
Bajaj discover 125cc there is low growth of this product due to low level of
innovation. There is a price reduction due to increase in competition thus profit is
decline.

Decline Stage: Avenger platina market get new substitute product & new
technologies thus the demand goes down in these stages thus the company can plan
following strategies such as turnaround divest etc. here are profit very low
16. Factors Influencing Consumers Behavior
Consumer behavior is the study of how individuals, groups and organizations select,
buy, use and dispose of goods, services, ideas or experiences to satisfy the needs and
wants. It is important for the marketers to fully understand the theory and reality of
consumer behavior. There are many factors that influence consumer‟s buying
behavior namely cultural, social and personal.
Cultural Factors: - Cultural values determine a consumer‟s wants and behavior. The
kind of values one is exposed to determines the inclination for purchase. There is
always a social stratification in the society and it is most often referred to as the
„Socio-Economic Classification‟.
In India, the recent evolving culture has led to consumer behavior where the consumer
buys a motorbike while pursuing his graduation mainly for commuting purposes. This
behavior is most often seen in the majority of the urban social economic classes
coming under the above average purchasing potential due to its relatively high pricing
as compared to few other bikes available in the market. Thus, the target market is
influenced via a wide variety of mediums namely advertisements in automobile
magazines, peripherals and television.
Social factors: - Social factors such as the reference groups, family, roles and status
affect the purchasing behavior of the customer. The interaction within the groups
influence a consumer‟s thought process. Family influences the customer‟s decision to
buy a product.
The primary group influencing the sale of Bajaj Pulsar consists of family, friends and
colleagues. As the target market consists of students, as the initiator, the maximum
influence in selecting a bike is exerted by friends and social circle and they act as the
influencers in the buying process. Plus, the brand name of Bajaj evokes a sense of
assurance in the minds of parents, the buyers. The youth centric looks at the
performance relates more to the status of a student.
Personal factors: -Personal factors such as age, stage in the life cycle, lifestyle,
occupation and economic circumstances, personality and self-concept affect a
consumer‟s decision. The brand personality traits relating to Bajaj Pulsar are
excitement, sophistication and ruggedness. The consumers choose Bajaj Pulsar over
the other variants as this brand is consistent with their actual self-concept. In addition,
the transformation of psychological life-cycle from an adolescent to a teenager plays
an important role in the process of buying.

17. Consumer Buying Process
Problem recognition: - In this case the major impetus to the need is
provided by an external stimulus. All the factors reported in the customer‟s
Characteristics contribute to the basic needs that a consumer identifies.
This is the first stage of the five stages for buying decision process. The
need is aroused usually while admiring a friend‟s new bike and the urge to
replicate or go one step further is generated.
Information search: - Before purchasing the person enters an active
information search and goes through all the major information sources.
While making the choice to buy a product, a consumer searches the
information and thus constitutes the „total set‟. It is from this total set that
he narrows down to make a decision, going through the awareness,
consideration and the choice sets.
The automobile segment is much more influenced by the commercial and
experiential sources of information. Based on this total set is condensed
down to the choice set. Majority of buyers are type dominant buyer for
Bajaj pulsar as they first decide on the sports bike segment of the market
and then analyze the options.
Evaluation of alternatives: - The consumer evaluation process has three
parts. Firstly, the consumer tries to satisfy the need, followed by looking
for a benefit and then lastly, the consumers see each product as a bundle of
attributes like good quality, superior design, reliable, innovative features,
etc.
Bajaj Pulsar fits into the typical existing consumer attitude for this segment of bikes and
the belief in the Indian market of brand „Bajaj‟ being a trusted brand helps in the
decision-making process for the consumers. Post this consumer evaluates Pulsar by
comparing the features and attributes offered individually by each alternative.
Purchase decision: - Using the elimination-by-aspects heuristic the consumer compares
brands on the attribute selected probabilistically and eliminates brands which do not meet
minimum acceptable cut-offs. Even if consumers form brand perceptions, two factors can
intervene between the purchase intention and purchase decision. First is the attitude of
others. The closer the other person is to the buyer, the more it influences the decision to
buy. The second factor is unanticipated situational factors that may erupt to change the
purchase intention.
Post purchase evaluation: -According to Kotler, “the marketer‟s job doesn‟t end with
the purchase”. Marketers must monitor the post purchase satisfaction, post purchase
actions and post purchase product uses and disposal. Customers are dissatisfied if their

expectations are not met, satisfied when their expectations are met and delighted when the
product exceeds their expectations.
Most of the users of Pulsar are satisfied after the purchase. As the survey also shows that
most of the consumers are more likely to purchase the product again and also speak well
about the product to other. The disposal of pulsar is also very valuable and its resale value
is very high.
18. Customer Survey Analysis
An analysis of the responses to the question regarding the „range of the age group of
customers‟ who are the buyers of the Bajaj Pulsar, we see that most of the target
customers lie in the age group of 20-25 years, followed by the 25-30 years age group.
None of the responders lies in the >35 years age group while just one of the
responders lies in the 30-35 years age group. Thus, we can see that the customers of
Pulsar are more often the youth of the country.
The analysis of the responses to the question about the influence on the customers to
buy a pulsar, shows that it is the brand power of Bajaj that has contributed
significantly, half of the total responses, towards the sales of the Bajaj Pulsar and
helping it become one of the most competitive bikes in the given price range. The
friends had the second highest influence on the customers to purchase the Bajaj
Pulsar. From the survey, we can also interpret that although the marketing strategy in
terms of advertisements is triggering sales, it can be improved to affect a wider

market sales response. However, it is surprising that the promotional events did not
influence any of the respondents to go in for a Bajaj Pulsar.
The analysis of the responses to the question regarding the other options that one
considered before buying the Bajaj Pulsar, we can see that the Hero Honda Karizma is
the strongest competitor, with half of the respondents considering it before they
decided to buy the Pulsar. The bike scores only in terms of its full fairing looks with
its split rear handle grips as body colored as opposed to black in Bajaj Pulsar. The fuel
delivery is smoother in ZMR across all ranges. For a longer sustainability, it is
considered a better option at the cost of a higher price. The Yamaha R15 can be seen
to be the second-best competitor for the Bajaj Pulsar while TVS Apache is also a
potential competitor, but only a far-fetched one.
4.
The analysis of the responses to the question regarding the usage of the bike, we find
that most of the customers use it on an average for about 40-70 km in a week. Thus,
the users of the bike would demand a high mileage and a comfortable ride. Thus in
order to improve consumer satisfaction Bajaj should try to concentrate on these
factors. Also, the 20-40 km average usage range scores the second highest while just 1
respondent uses the Pulsar for about 70-100 km in a week, the highest in this survey
that we obtained. Also, there are no respondents who use the Pulsar for more than 100
km in a week, again pointing to the fact that Bajaj needs to concentrate on improved
mileage and comfort for increasing the customer satisfaction.
5.

The analysis of the responses to the question regarding the waiting period, if the
customers had any, shows that 3 out of the 10 respondents had to wait to get their
Bajaj Pulsar. Bajaj should make sure that 100 % of its customers have 0 waiting
period by ensuring sufficient inventory in the showrooms. Companies tend to lose
customers after a specific period. Also, in order to get new customers to join the Bajaj
family, reduction of the waiting period to 0 is quintessential.
6. What is the best feature of the bike?
The analysis of the question in the survey about the best feature in the bike, 22% of
the respondents appreciate the design and the mileage of the bike, another 39%
appreciate the stability of the bike, the most appreciated feature of the Bajaj Pulsar
and another 17% of the respondents appreciate the power of the engine of the bike.
More than 50% of the respondents say that they appreciate the general design of the
bike more than the engine performance of the bike. The power of the engine does not
seem to be the strength of the bike that the customers look for when they go in to
purchase the Bajaj Pulsar.
7. What is the feature that you would like to change in the bike?

The analysis of the question where the customers were asked about the changes they
would like to be incorporated in the bike, 19% of the respondents said that they don‟t
appreciate the available colors and would like to include more colors in which the
bike is available. Another 31% of the respondents don‟t appreciate the seat of the
bike, another 13% of the respondents don‟t appreciate the gearbox and the maximum,
38% of the respondents, would like to change the weight of the bike. Analyzing the
responses- about the weight and the seat of the bike, the customers don‟t seem to be
satisfied with the comfort that the bike offers. However, none of the respondents want
to change the power of the bike and this is a good point for Bajaj as the bike was
designed to be a powerful one in its category.
8. What major problems did you face at after-sales service of the bike?
The analysis of the question in the survey regarding the after-sales service of the
bike, majority of the respondents, 40%, faced the problem of waiting for long
times at the service centre. Another 20 % of the respondents didn‟t appreciate the
staff having less knowledge and 10% faced the problem of less interest shown by
sales representatives. Another 20% of the respondents were not satisfied with the
after-sales service they got. 10% of the respondents had no issues with this aspect.
Thus, Bajaj has some serious issues to address regarding the after-sales servicing
of the Pulsar.
9. Are you satisfied with the warranty period given by Bajaj Pulsar?

The analysis of the question in the survey regarding the satisfaction of the
customers with the warranty period offered by Bajaj for Pulsar, it can be seen that
a majority of the respondents are not satisfied with the current warranty period
and didn‟t appreciate it. As compared to its competitors, the warranty offered
seems to be too short. For example Hero offers a 5-year warranty.
10. Rate the bike in a scale of 1 to 5 with 1 being the best and 5 the least
The analysis of the question in the survey about the overall rating of the Bajaj
Pulsar shows that most of respondents appreciate the bike, with 50% of them
rating the bike as 2, 30% rated the bike as 3 while just 10% of the respondents
rated the bike as 5. From the survey, we can interpret that the customers have an
overall high level of satisfaction with the bike.
11. If given a choice to change the bike,will you change the bike?
The analysis of the question in the survey that asked the customers about changing
their bike, if they were given a chance, shows that more than half, 60%, of the
respondents will not change their bike i.e. switch from the Bajaj Pulsar to another
bike in the same category. Thus, Bajaj has a healthy percentage of its customers
who are satisfied with their bike and hence loyal.

19. Conclusion
Clubbing the sections of analysis of Bajaj Pulsar has given us many insights into the
two-wheeler market as a whole and especially into the dynamics of Bajaj Pulsar.
Through the environmental and SWOT analysis of Bajaj Pulsar, we analyzed the
external and internal factors shaping the growth and sales of Pulsar and the various
opportunities and threats it faces for its future. Various marketing strategies adopted
by Bajaj for Pulsar over the years and their role in building the brand Pulsar were
studied.
In the second section, analysis of the consumer behavior for purchase of bikes, buying
roles and decision-making process was done. The segmentation of Pulsar brand
according to the engine capacity was done and consumer behavior for each was
analyzed. It was supported by the various customer surveys conducted by us. This
section helped us understand how bike makers cater to various segments through
various offerings.
Third section talked about the competitor analysis of Pulsar from various companies
among various categories. The strategies taken by these companies for their product,
promotion and positioning was studied.
Thus overall, this project was an experiential way to learn the concepts of marketing
discussed in class and how they are applied in a real case scenario.
20. References
1) Bajaj Auto – Annual Reports
http://www.bajajauto.com/bajaj_investor_annual_report.asp
2) Hero Honda- Annual Reports
http://www.herohonda.com/invest_annual_reports.htm
3) EBESCO - Bajaj Auto: From Chetak to Pulsar and Beyond
http://web.ebscohost.com
4) SIAM- Society of Indian Automobile Manufacturers
http://www.siamindia.com/
5) FADAWEB- Federation of Automobile Dealers Associations
http://www.fadaweb.com/two_wheeler_industry.htm
6) The Bike Chronicles of India
http://www.2wheelsindia.com/2007/08/inspiring-story-of-birth-of-bajaj.html
7) Bike Advice
http://bikeadvice.in/story-pulsar-discover-part-1/

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