Bajaj Pulsar 150cc

Marketing Appraisal

We would like to express our sincere gratitude to those who gave us the opportunity to undertake this project and to everyone without whom the completion of the project would not have been possible. We want to thank Prof. (Dr.) Avinash Kapoor, our project guide and faculty, for helping us do the necessary research work and guiding us throughout the project. We would also like to acknowledge all the Bajaj Pulsar users and survey respondents who provided us with their valuable inputs. We are bound to thank them all for their help, support, interest and valuable hints.

EXECUTIVE SUMMARY
The project is on the Marketing appraisal of the Bajaj Pulsar (150cc variant). In first part, a thorough and comprehensive analysis of Bajaj Pulsar (150cc variant) as a premium bike was done with respect to the marketing mix, SWOT and competitor analysis of the product. The marketing mix primarily consists of Product, Place, Price and Promotion. A detailed SWOT analysis was done and the corresponding metrics were developed. A competitive study of the various competitors in the market has also been done. In second part, a study has been conducted to know the consumer behavior of people buying and using Bajaj Pulsar as a product. This study has been undertaken to know the extent of influence while making a choice for a particular two-wheeler based on different prevalent factors. The reason underlying the need to assess and evaluate the various factors which play a prominent role in helping a customer to make a choice for a particular two wheeler from the various available alternatives to him. Some of these factors are predominant in decision making where as some others are not very significant but have still found a place in the research work owing to their contribution although marginal. This study was conducted to have an insight on several fronts such as decision making process, purchase behavior etc. The study has been conducted by understanding the need and various requirements for study. Then the factors which influence the decision 3

making process for a particular two-wheeler were decided. Responses from prospective two wheeler buyers were collected by means of a comprehensive questionnaire. Based on these responses the analysis has been done and inferences have been drawn. The consumer behavior analysis will help to understand the decision making process of the buyer and will aid Bajaj to align its marketing mix in that manner to ensure maximum customer satisfaction. Based on the various analysis namely marketing mix and SWOT of Bajaj Pulsar, competitor analysis and consumer behavior of prospective buyers, different strategies have been proposed that need to be adopted by Bajaj Pulsar to remain the market leader in near future.

Contents
INTRODUCTION.................................................................................................6 Objective............................................................................................................6 Why Bajaj Pulsar 150cc???................................................................................6 Flow of the Study...............................................................................................8 About Bajaj Pulsar.............................................................................................8 LITERATURE REVIEW....................................................................................11 Marketing Terms..............................................................................................11 SWOT Analysis ..........................................................................................11 Marketing Mix.............................................................................................13 Competitor Analysis ...................................................................................13 Consumer Behavior......................................................................................14 INTERNAL/EXTERNAL FACTORS................................................................16 Marketing Mix.................................................................................................16 Product.........................................................................................................16 Place.............................................................................................................17 Promotion.....................................................................................................17 Pricing..........................................................................................................17 SWOT Analysis...............................................................................................18 Strengths......................................................................................................18 Weaknesses..................................................................................................21 Opportunities................................................................................................22 Threats..........................................................................................................23 Competitor Analysis......................................................................................24 Yamaha FZ 16..............................................................................................25 TVS Apache RTR Fi 160.............................................................................26 Hero Honda..................................................................................................28 Honda Unicorn.............................................................................................30 Comparison vis-a-vis other bikes.................................................................31 CONSUMER BEHAVIOR..................................................................................32 Objective..........................................................................................................32 Survey..............................................................................................................32 Buying Roles....................................................................................................33 Purchase Behavior............................................................................................35 Buying Decision Process.................................................................................36 CONCLUSION....................................................................................................44 Future Insights.................................................................................................44 Suggestions......................................................................................................44 Conclusion.......................................................................................................46 References............................................................................................................48 Appendix A..........................................................................................................49

INTRODUCTION
Objective

The objective of the project is two fold: To understand the basic concepts of marketing, such as marketing mix, SWOT, competitor analysis, buying role, purchase behaviour, buying decision process. To do the marketing appraisal of Bajaj Pulsar, so as to understand the successful marketing strategies employed by the Bajaj, and to the identify competition being faced by Bajaj Pulsar. Based on above study, recommendations to be identified for Bajaj Pulsar.

Why Bajaj Pulsar 150cc???

Prior to 2001, bike industry in India was synonymous with name HeroHonda, and Bajaj was only a small player in this industry. In 2001, Bajaj decided to launch a bike in not so popular and newly created performance bikes section. This project was faced with internal resistance, reservations by McKinsey and doubts on its effects on Bajaj's relation with Kawasaki. But Bajaj successfully launched Pulsar, and was successful in creating a new segment in the Indian motorcycle market catering to the younger generation that demands more powerful bikes at affordable prices. It also caused a heavy damp in Hero-Honda pockets with Pulsar launch. Not only this, Pulsar has been able to maintain the lead, re-engineered itself time-and-again to meet customer demands and successfully warding off challenges from various competitors successfully for the last 7-8 years.

So, to study the reasons of Bajaj Pulsars astonishing success from marketing perspective, we decided to go for marketing project on Bajaj Pulsar 150cc.

Flow of the Study

The flow to be followed for marketing appraisal of Bajaj Pulsar in the report shall be: Analysis of internal and external factors oMarketing Mix - Study the marketing mix of Bajaj for Pulsar 150cc. oSWOT analysis SWOT analysis using the internal and external environment factors study oCompetitor analysis Study the major competitor and their strategies Consumer Behavior To understand the decision making process of the consumer, which will aid Bajaj to align its marketing strategy to ensure maximum customer satisfaction Summing up oFuture Insights o Suggestions Suggestions to Bajaj on basis on SWOT, competitor and consumer behaviour study oConclusion

About Bajaj Pulsar

A two wheeler making its way through the rain carrying the Indian National Flag, a family legacy being passed from Father to Son It was this Hamara Bajaj positioning of Bajaj scooters that made Bajaj Auto the leading two-wheeler manufacturer in the country during 1970s and 80s. The secret was beautiful integration of 4 Ps for a middle class Indian consumer.

During the 1990s Indian bike market was divided broadly into Economy, Executive and Premium Bikes. In 1999 Hero Honda, dominating the two wheeler industry, created a new segment of 150 cc performance segment with its CBZ. In 2001 Bajaj for the first time launched a bike, without a Kawasaki label and gave a new life to the Performance segment. Although not a pioneer, Bajaj made the performance segment one of the fastest growing segment in the two wheeler market with its Definitely Male Bajaj Pulsar. Engine specifications: Displacement: Engine type: Stroke: Power: Torque: RPM Fuel system: Valves per cylinder: Starter: Injection 1 Electric & kick 149.00 cc(9.09 cubic inches) Single cylinder 4 14.09 HP (10.3 kW)) @ 8500 RPM 12.76 Nm (1.3 kgf-m or 9.4 ft.lbs) @ 6500

Transmission type final drive: Chain Various developments in 150cc version[1]: 2001 - The original Pulsar was launched with a 150 cc air-cooled, singlecylinder, petrol, spark-ignited four-stroke engine. Electric Start (ES) was optional. 2003 - The second generation Pulsars launched in 2003 featured Bajaj Auto's newly developed DTSi technology, which increased the power rating and also fuel economy.

2005 - In 2005, Bajaj launched another upgrade of the Pulsar. The power output was further increased to 13.5 bhp (10.1 kW) @ 8500 rpm for the 150. Now, the rear shock absorbers were gas-filled Nitrox absorbers. 2006 - Bajaj introduced yet another version of Pulsar. The new bike had improved style as well as new set of features. The engine had reduced vibration, increased torque availability and improved gear shift feel. They also introduced 1 Down 4 Up variant of the Gear box for the first time in sub 150 cc variants. 2009 - Bajaj released the UG IV versions of the Pulsar 150. The upgrades included an all-black theme, tank scoops similar to those on the Pulsar 200, a 3D Pulsar logo, and a changed electrical system.

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LITERATURE REVIEW
Marketing Terms

SWOT Analysis
SWOT Analysis[1] is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a projector in a business venture. It involves specifying the objective of the project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. An example of a strategic planning technique that incorporates an objective-driven SWOT analysis is Strategic Creative Analysis. Strategic Planning, including SWOT and SCAN analysis, has been the subject of much research.

Strengths: attributes of the person or company that Weaknesses: attributes of the person or company Opportunities: external conditions that are helpful to Threats: external conditions which could do damage

are helpful to achieving the objective.

that are harmful to achieving the objective.

achieving the objective.

to the objective. Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs.

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[1] http://en.wikipedia.org/wiki/SWOT_analysis

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Marketing Mix
The set of product, place, promotion, price and packaging variables, which a marketing manager controls and orchestrates to bring a product or service into the marketplace. It is used to describe the different kinds of choices organizations have to make in the whole process of bringing a product or service to market.

Competitor Analysis
Competitor analysis[1] in marketing and strategic management is

assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context through which to identify opportunities and threats. Competitor profiling coalesces all of the relevant sources of competitor analysis into one framework in the support of efficient and effective strategy formulation, implementation, monitoring and adjustment. Competitor analysis is the assessment of the strengths and weaknesses of current and potential competitors operating in the market and having products that directly compete for market share and consumer base with your own product. This analysis gives us relevant information from all the appropriate sources of competitor analysis and puts them into one framework coupled with other management tasks like strategy formulation; implementation, monitoring and adjustment which help an organization identify the underlying opportunities and threats. Competitor analysis is important and is reflected by the fact that it helps in gaining superior knowledge of rivals, their offerings and strategies, thus becomes a source of competitive advantage. Competitive advantage consists of offering superior customer value in the firms chosen market. Customer value is defined relative to rival offerings making competitor knowledge an 13

[1]

Craig Fleisher and Babette Bensoussan: "Strategic and Competitive Analysis: Methods and Techniques for Analyzing Business Competition." Prentice Hall, 2003.

intrinsic component of corporate strategy. Profiling facilitates this strategic objective in three important ways 1. Profiling can reveal strategic weaknesses in rivals that the firm may exploit, 2. The proactive stance of competitor profiling will allow the firm to anticipate the strategic response of their rivals to the firms planned strategies, the strategies of other competing firms, and changes in the environment, 3. This proactive knowledge will give the firms strategic agility. Offensive strategy can be implemented more quickly in order to exploit opportunities and capitalize on strengths. Similarly, defensive strategy can be employed more deftly in order to counter the threat of rival firms from exploiting the firms own weaknesses. Those firms practicing systematic and advanced competitor profiling have a significant advantage. As such, a comprehensive profiling capability is rapidly becoming a core competence required for successful competition. An appropriate analogy is to consider this advantage as akin to having a good idea of the next move that your opponent in a chess match will make. By staying one move ahead, checkmate is one step closer. Indeed, as in chess, a good offense is the best defense in the game of business as well. A common technique is to create detailed profiles on each of your major competitors. These profiles give an in-depth description of the competitor's background, finances, products, markets, facilities, personnel, and strategies.

Consumer Behavior
Consumer behavior analysis can be defined as the process and activities people engage in when searching for, selecting, purchasing, 14

using, evaluating, and disposing of products and services so as to satisfy their needs and desires. Consumer behavior analysis helps marketers, firms and organizations improve their marketing strategies by understanding issues such as mentioned below:

The psychology of how consumers reason, think, feel, and select between different alternatives such as brands, products etc. The psychology of how the consumers are influenced by their environment (e.g., culture, family, media). The behavior of consumers in market or taking other marketing decisions.

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INTERNAL/EXTERNAL FACTORS
Marketing Mix

Here we take a look at the Marketing Mix or the 4 Ps of Bajaj Pulsar which made it the most popular bike among the Indian consumer.

Product
A combination of technology and engineering, Bajaj Pulsar 150 cc offers a great combination of technology, style, comfort and safety. Along with smashing looks the bike has great technology working inside. It provides for a true digital experience. With the Digital Twin Spark Ignition Technology (DTS-i) patented by Bajaj Auto the bike provides a consistent output any time any place. The Digital CDI making up the DTSi allows the rider to reach pole position whenever he desires. The engine allows carrying heavy loads and ensures improved engine torque which optimizes engine performance. TRICS III and Constant Velocity Carburettor are some other features that provide high performance and less hassles[2]. It is a great bike for people looking for power and efficiency for a comfortable ride on the Indian roads. It provides for easy top gear driving with less gear changes and instant pickup in any gear. NitroX-Nitrogen assisted rear gas shockers give a cushion feel and ExhausTEC technology allows easy drivability in Indian city traffic conditions. The bikes low speed & high gear combination offers phenomenal ride. The bike provides rip roaring power without compromise on mileage with an average of 50-55 Kmpl in city conditions and 62 Kmpl on Highways. In sync with its Definitely Male look the bike is a robust one with stronger alloy steel wheel base and smaller wheel radius (17").

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Place
For Bajaj Auto, the supply chain encompasses the process from vendors to the final customers via manufacturing. Therefore, the Companys supply chain involves as much the vendors and the procurement-topayment logistics, as it does the manufacturing to selling process, or the order to cash system.

Promotion
It was not only the bike's performance that triggered the brand becoming an icon, a major part of the success was due to the classic advertising campaign by O&M. O&M used the Big Idea of India's He-Bike for the promotional campaign. The Big Idea was to position the bike as World's first bike endowed with a Gender. The classic campaign of all times Definitely Male" together with the design and performance catapulted the brand into stratospheric sales level. Bajaj targeted the 18-24 age group with Pulsar but later found that the brand appealed to a much older audience. This led Bajaj to change its target audience to 21-35 years. With the launch of DTSi model the company went on to promote the product as a technologically superior one using the Digital Biking concept. The latest promotions of Bajaj have been more about brand building with good videography stunts and choreography and concepts matching upto the international standards.

Pricing
The price of Bajaj pulsar depends on the city. For Delhi: Base Price: On Road Price: Rs 57,300 Rs 63,000 approx 17

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

SWOT Analysis

Strengths
1. Excellent Product Features in accordance with Indian

environment. a) Pulsar comes with DTS-I or Digital Twin Spark Ignition technology , which is a revolution in modern motorcycling era and no competitor can copy as it is patented by Bajaj Auto Ltd b) With lower front end and smashing new panels, it has been retained as the Best Looking Indian Bike for the several years. c) Rip-Roaring Power provided by bike with no compromise in mileage whether on city roads or Highways. d) Technologically a marvellous product with new age digital gauges as a digital speedometer, Fuel Meter, Twin Trip Facilities, Side stand warning lamp, odometer for efficient performance and safety. e) Features suited for the Indian roads as rear gas shockers and ExhausTEC technology allowing easy drivability in 18

Indian city traffic conditions. Also low speed high gear provides for a phenomenal biking on Indian roads. 2. High Brand Equity and Goodwill among the Indian consumers carried forward from its scooter business. 3. Distinctive cost and margin advantage: The Company has improved a lot on manpower productivity and it has been doubled in past several years. The companys new plant at Pantnagar has helped company to cut down on its tax expenses being located in Uttaranchal. Also having vendor operations within Uttaranchal ensured that the maximum possible value addition is done within Uttaranchal, so as to maximise the tax advantage and make Bajaj Autos motorcycles even more cost competitive. 4. Range of features available with the product in terms of colour and variations as little lag analogue speedometer or the digital speedometer. 5. Bajaj Pulsar offers the highest mileage in its category. 6. Multiple variants of product available with differentiated pricing help compete effectively with competitors with just one good product. 7. Already existing distribution network of Bajaj in almost every urban and sub urban areas in India with numerous outlets and dealers. 8. The company has one of the most creative R & D departments in the country.

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9. With average age below 30 years it helps the company in catering to the demand of its target market - young India. 10. Redefining the new age biking for the urban youth people by an initiative of Probiking. 11. Creative Advertisements and Eye Catching Tag Lines: - Definitely Male, Distinctly Ahead which attracted not only males but females as well. 12. Presence of Own credit agency, Bajaj auto finance, for financing two wheeler purchases which has lower rates of interest as compared to market. 13. TPM Policy (Total Productive Maintenance) that strives to excel and places most emphasis on Greater Customer Satisfaction, and guiding principles of Innovation, Speed & Perfection has helped Bajaj create a strong customer base. 14. Long term Orientation in terms of capacity utilization at Pantnagar and Chakan plant i.e. they can increase the production of Bajaj Pulsar to meet the growing need of markets in near future. 15. Key supply chain initiatives by Bajaj Auto have helped it capture huge market. Bajaj Auto has adopted a channel policy approach which is unique in the automobile industry. This policy and its linked initiatives are guided by the requirements of specific sets of the Companys final customers. a. The Primary Channel: This comprises 408 exclusive twowheeler dealers, 75 exclusive three-wheeler dealers, and 98 dealers who deal in both product categories. Bajaj Auto has followed a policy of systematic network consolidation, 20

in which the primary dealerships have been given a larger scale and scope to operate based on their strengths. b. The Secondary Channel: Much of Bajaj Autos recent success can be attributed to policy of rapidly adding to the number of secondary outlets, which provide sales, service and spares support in the vast hinterland of India. These are in the form of 1,500 Authorised Service Centres (ASC), 4,500 Rural Service Outlets (RSO), and 750 Young Engineer Service (YES) centres in the towns and cities. c. The Rural India Foray: The Company has been

aggressively pursuing initiatives to increase two-wheeler penetration in rural India. A large number of rural outlets were added to the network during the year, which not only increased hinterland sales but also gave additional employment in the rural sector. d. Pro-biking: This initiative sits far away from the rural India play but is no less important. Bajaj Auto believes that young India doesnt pay to buy motorcycles; it pays to buy excitement and exhilaration. The Pro-biking initiative, which was kicked off with the inauguration of first store in Pune in August 2005, aims precisely at creating this thrill. Owned and operated by Bajaj Auto, Pro-biking showrooms are now operational in Mumbai, Kolkata, Chennai, Hyderabad and Ahmedabad.

Weaknesses

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1. High Maintenance cost in the long run associated with the bike. The maintenance cost increases after 50,000 KM run which puts it at a disadvantage with respect to the competitors. 2. Technical issues with performance of Gear Box, Piston etc. 3. Tilted seating position more suited for people of a certain height range. 4. Complete disappearance of Definitely Male concept after initial years. Also the inability of later campaigns to communicate and position the product well. Bajaj has not endorsed a celebrity for its advertisements. 5. Bike is not suited for driving in Indian rural roads. Thus the main concentration is on the urban consumer with no special designing / technology for the rural consumer.

Opportunities
1. Largely untapped rural market of India, so they should capitalize by adapting the bike to rural environment. 2. Scope of increasing customer base in foreign countries with the 125+ cc segment expected to rise significantly. 3. Largely untapped market of powerful performance bikes in the range of 150+ cc in India. 4. Rising income levels in India leading to an increase in the no of people in the target segment.

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5. The company could promote the bikes to be used by Traffic Police and Military purposes as is evident in selection of Bajaj Pulsar for Traffic patrolling by Goa and Maharashtra Police. 6. Bajaj could explore the used bikes market on the lines of Maruti True Value as this market is a nascent, unexplored and unorganized market.

Figure 1: Opportunity Matrix

Threats
1. Tough competition with products as Yamaha FZ 16, Unicorn, Hunk, Apache RTR FI, CBZ- xtreme. 2. Increase in interest rates resulting in financing becoming dearer. Ceasing of 0% finance schemes. 3. Rising crude oil prices resulting in decreasing demand of petrol bikes like pulsars and increased demand for economy/electronic bikes.

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4. High Inflation resulting in decreased demand for 2 wheelers. High cost pulling away customers. 5. More of electronic and pollution free bikes are entering the market which may affect sales of Pulsar negatively. 6. Increase in input cost due to international price rise in steel, etc resulting in squeezing EBITDA margin. 7. Cheep Chinese duplicate bikes available in Latin America and Middle East. 8. Fluctuation in rupee vis--vis dollar, impacting exports. 9. Launch of Tata Nano and Bajajs planned own low cost car.

Figure 2:Threat Matrix

Competitor Analysis

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Bajaj Pulsar 150 cc has the following as its close competitors: 1) Yamaha FZ 16 2) Hero Honda Hunk 3) TVS Apache RTR Fi 160 4) Hero Honda CBZ X-TREME 5) Honda Unicorn. We will now look at these one by one.

Yamaha FZ 16
Yamaha is promoting the FZ 16 as the Macho Street Fighter. This in essence captures the companys philosophy about the FZ 16. With Yamaha planning to take India's premium biking segment by storm, a lot depends on FZ 16 model, and going by the initial reactions to the cool looks and cutting edge features, this is already proving to be a success.

Features:

Air-cooled, 4-stroke, single-cylinder 153cc engine featured by its heart stirring pick up and featuring an electric starter. Mono-cross rear suspension unit that assures fast running performance and handling. Indias first radial tyre with a 60% aspect ratio Good shock absorption and damping characteristics Multi-reflector headlight Steel fuel tank having capacity of 12 liter with uniquely styled plastic resin cover Full Liquid Crystal Display (LCD) meter

Strategy: 1. The bike is positioned so as to eat into the 150 cc bike market currently held by Pulsar, Apache and Hunk, and position Yamaha 25

as the leader in this segment. The focus is clearly the on youth, both the college going as well as the young executives. 2. There are a lot of new models lined up for roll out by next year. 3. Yamaha plans to open up its own showrooms in India, calling them bike stations. Biking enthusiasts can have a look at the latest Yamaha models, and in addition can get merchandise including biking accessories like biking jackets, T-shirts and pants. This would help to create excitement among the prospective buyers, in addition to adding to its dealers tally. 4. Another 80 new dealerships are being planned to add up to the already existing network of 430 dealers. Nearly Rs 240 crores are being spent on increasing the dealership network to 600 by the year 2010. 5. Yamaha India is also pursuing a focused effort in the after-sales service department too in India. It will be making available spare parts even for their older bikes, like RX 100 and RD 350, as part of this thrust. It is said that the company has already initiated parleys with vendors to supply spare parts for RX100 and RD350. 6. Another idea that the company is mulling over is the concept of Concept Stores, where biking enthusiasts can catch hold of racing bikes. 7. Yamaha has also taken a conscious decision not to enter the 100 cc segment in India, though its the largest segment in the country. Instead it plans to build customer confidence through models in the 150 cc and above categories.

TVS Apache RTR Fi 160

TVS Apache RTR FI 160 is a very stylish and eye catching bike. Its smooth and flawless finish makes this bike desirable to the market. Real supportive and safety features are provided for better control and excellent riding of this two wheeler.

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Styling features: Split grab rails Ensures optimum blend of design and functionality Silencer Designed with details and sound engineering Rearset foot pegs Light weighted, sporty and assure every riding experience like a track riding experience Racing GT stripe Epitomize the RTR FI 160 racing pedigree Forged brake lever Lighter in construction and deliver great looks Aerodynamic air scoops Assure that the air is directed towards the engine unit to help better cooling efficiency Engine fairing This feature basically function to save the RTR engine from elements and harsh riding conditions Black alloys Light weight and can cope up with the toughest of surfaces and reduced weight Salient features: 1. Roto Petal Disc 2. Digital Speedo console 3. Over square engine 4. Poly shocks 5. Clip on handle bars Strategy: Apache RTR Fi 160 has been a star performer for TVS, in their BCG matrix. Apache has been brought into the market by TVS to cater to the increasing demand for more power, features, functions and styles. Some of the salient features of TVS's market outlook are: 1. Well thought out market segmentation and targeting, this bike is primarily targeted at urban commuters between 18-30 years, people who want to upgrade from their 125 cc bikes and people who want a bike with sporty looks. 27

2. The Company is focusing on R&D activities which are reflected by over 200 patents that it has applied for. 3. The Company is also working on development of fuel-efficient technologies and alternate fuel technologies to take care of emerging needs of the consumers and environment which shows a thrust towards product enhancement and brand building. 4. The Company has a widespread network over 600 exclusive dealers and over 2,500 authorized sub dealers and service centers.

Hero Honda
Hero Honda the leader in two wheeler sales has 2 prime offerings in the 150 cc segment, Hunk and CBZ X-TREME in addition to Achiever. Hunk is a completely new design aimed at the youth of today, as well as young executives, whereas CBZ X-TREME is a refined version of the earlier star from the Hero Honda stables, CBZ, Hero Honda Hunk. Hunk's salient Features: 1. Broad muscular Fuel Tank with capacity of 12.4 litres minimum. 2. Engine 4 stroke single cylinder OHC 3. Glaring headlight with aggressive vision 4. Powerful Disk brakes 5. Telescopic hydraulic shock absorber 6. Fiery ringed chrome speedometer 7. Puncture resistant tubes 8. Revolutionary inert suspension 9. Sporty saddle

CBZ X-TREME
CBZ X -TREME has many advantageous attributes which makes it different from its older version. Some of these are listed below: 28

1. Powerful windscreen 2. Maximum power is 10.6 KW @ 8500 rpm 3. Maximum torque id of 12.80 N-m @ 6500 rpm Strategy: 1. Hero Honda is tapping into the rural market with its rural initiative. Compared to a market penetration of 25% in the urban segment, only 10% market penetration is there in the rural market. And the initiative showed results immediately with marked increase in sales, after a flat 2007-08. 2. Hero Honda has always had a very visible media presence with the iconic ad Hero Honda Dhak Dhak Go still fresh in the mind of people and ropes in big names for promotion like Hrithik Roshan and Saurav Ganguly, and also sponsors such mega hit programs like MTV Roadies, and Sa Re Ga Ma on Zee television. 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. 3. Its unique CRM initiative - Hero Honda Passport Program, one of the largest programs of this kind in the world, has over 3 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. 4. PLM software Product Life cycle Management software, which will help reduce costs and time for the development of new models, and 5. Dealer Management System software which will help it connect to its entire dealer network, and enable better co-ordination and tighter coupling with dealers.

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6. A whopping Rs 19.42 crores were spent on R & D in the year 2008 compared to Rs 8.11 in the year 2007, showing an inclination towards new and better products and offerings.

Honda Unicorn
Unicorn is engineered and styled for the taste of the younger generation. With the 4-stroke, 150cc engine delivering a whooping 13.3 bhp, Unicorn is the fastest motorcycle in India racing from 0 to 60 kms per hour in a mere 5 seconds. It has a distinctive sporty and macho design with a racy front face, masculine fuel tank with knee grip and a sleek rear cowl. Some of the salient features of this bike are: 1. Best pick up in its class. 2. It delivers an incredible 60 kms to a litre. 3. It is a perfect fusion of sporty & macho design. 4. With Mono Suspension & Diamond frame, it takes all kinds of road shocks with absolute ease. 5. It is the only motorcycle equipped with a puncture resistant Tupp up Tube. 6. It is one of the swiftest, smoothest and noise-free bikes in India. Strategy: 1. Honda Motorcycle and Scooter India Ltd (HMSI) will invest Rs 400 crore in India by 2010 to double its production capacity of motorcycles and scooters to two million units. 2. Honda seems to be concentrating a lot more on the 100 cc, and lower segments, and not on the 150 cc segment. That is reflected in lack of new models in this segment, and even lack of new variants for Unicorn. 3. Honda came up with the popular Be a Wing Rider campaign which was in line with the product to promote Unicorn. Unicorn though initially enjoyed a great presence in market after its launch but a lack of interest shown in this segment by Honda Motorcycle 30

and Scooters India (HMSI) coupled with a weak promotion strategy and lack of product diversification has resulted in Honda losing out on the market share in the 150 CC segment despite having the backing of a superior product and technological expertise coming from being the leaders in the worldwide motorcycle market.

Comparison vis-a-vis other bikes

Its very difficult to choose between the bikes chosen above in terms of price or technological features. The differentiation comes in terms of the marketing and introduction of new variants, or at least changing looks as this particular segment demands this. Bajaj Pulsar hasnt come out with a new variant in a considerable time and the interest is waning as shown by the decreasing sales.

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CONSUMER BEHAVIOR
Objective

Objective of the report is to study and analysis of consumer behavior for Bajaj Pulsar 150cc. Consumer behavior study for Bajaj Pulsar150cc bike has been done using the primary research method by carrying out a questionnaire based survey. On basis of survey findings, consumer behavior analysis has been done and has been divided into three sections: Buying Roles Purchase Behavior Buying Decision Process o Identifying the problem o Information Search o Evaluation of Alternatives o Purchase Decision o Post Purchase Behavior

Survey

A comprehensive survey (Primary research method tool) was conducted over 117 people to study the Consumer behavior of Bajaj Pulsar150cc. The mode of the survey was questionnaire based. Based on the responses of the people surveyed the findings have been proposed and various figures have been used wherever deemed necessary along with proper explanation. As we can see from the demographics of the respondents we can very well say our survey is

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biased towards the younger section of the society as 82% respondents are from the age group 18-24 years. Limitations of survey conducted: Due to constraint of resources, sample size of survey is only 117. Due to accessibility constraints, the maximum proportion of the sample of the survey is correspondents from age group 18-24. Questionnaire type limited to closed ended questions.

Buying Roles

Question: You bought/feel like buying a bike due to Friends/Peers Family Articles/ Blogs Just for having a conveyance Other than these

Objective: To understand the basic need for the purchase of the consumer i.e. as to what induces him to buy the bike which will help in identifying different buying roles The Initiator - who decides to start the buying process The Influencer - who tries to convince others for the need of the product The Decider - who makes the final decision to purchase The Buyer - who is going to write pay for the product The User who ends up using the product

Note: Since our survey biased towards younger generation i.e. between the age group 18-24, as a result there is high probability that 33

they wont be earning therefore they cant be buyer rather their parents will act as buyers Inference: From the data we can very well see that 43.59% of the times the customer buys the bike for the sake of conveyance. Therefore it means that in this case, customer first acts as the initiator, then moves to the decider role, then buyer and in the end user. In this case nobody is the influencer as customer is not being influenced by his peers, relatives, articles, blogs etc. Initiator Influencer Decider Buyer User Customer No One Customer Parents/ Customer Customer

When a person buys due to SNOB effect i.e. he buys because his peers and friends are buying then his friends and peers act as initiators, they may influence the brand as well so act as influences, person himself acts as the decision maker, buyer and user. Initiator Influencer well Decider Buyer User Customer Parents/ Customer Customer Peers and Friends Peers and Friends may act as Influencer as

When the person is motivated by articles and blogs to buy a bike then articles and blogs act as initiators, influencer and decider because based on articles and blogs itself person makes up his mind which bike to buy. He just acts as buyer and user. Initiator Articles and Blogs 34

Influencer Decider Buyer User

Articles and Blogs Articles and Blogs Parents/ Customer Customer

When a person is buying because of family then initiator can be anyone from the family, he himself as well, then anybody from the family can act as influencer like younger brothers liking of a bike having great looks, younger sisters liking of some specific colour then they become influencers, most of the times it will be the person only who will act as decider but may be someone else can also act as decider but the person will definitely be the buyer and there can be many users. Initiator Influencer Decider Buyer User Family Member or Customer Family Members Family Member or Customer Parents/ Customer Customer

Purchase Behavior

High Involvement Significant Differences In Brands Non-Significant Differences In Brands

Complex Buying Behavior Dissonance Reducing Buying Behavior

Low Involvement
Variety Seeking Buying Behavior Habitual Buying Behavior

The buying behavior is Dissonance Reducing Behavior because buying a bike requires high involvement and overall all the bikes have similar 35

features except one or two add on features which do not much weight age in decision process. Basic features of almost all the bikes are similar like:1. Mileage 50 +- 10% 2. Power 12 +- 5% 3. Cost 60000 +- 10% 4. Engine Type 4 Stroke 5. No. of cylinder 1 6. Overall Length 2075 +- 5% 7. Overall Height 1070 +- 2% 8. Wheel Base 1340 +- 2% 9. Ground Clearance 155 +- 5% 10. Kerb Weight 145 +- 5% 11. No of Gears / Variators 5 12. Fuel Capacity 15+-2 litres 13. Maximum Speed 100 +- 25 km/hour As we see almost all the parameters are in a range of +-5% though there are add-ons in each brand which are not of much importance therefore it becomes difficult for the customer to decide which bike to buy and as a result he takes quite a long time to make a decision for buying a particular brand.

Buying Decision Process

1) Identifying the problem Question: Which mode of Transport do you prefer? Public Transport Pooled Car Cabs Self Owned Four Wheeler Two Wheeler 36

Objective: To know the preferred mode of transport used by the target audience, in order to have an approximate idea of two wheelers as a percentage of overall commuting options available of which bikes is a small part. Analysis: Herein as per the results of the survey we have found out that majority of the people buy bike to satisfy their internal stimulus needs, i.e., of daily commuting. Due to problems of conveyance the prospective consumer decides to buy the bike which additionally satisfies his needs of status and style.

The above fact could be substantiated by 72% of the surveyed people preferring to travel by 2 wheelers. 2) Information Search Question: From where did you come to know about Bajaj Pulsar? TV/ Radio Advertisement Newspaper/ Magazine Advertisement Peers/ Friends Family 37

Road Shows

Objective: To understand the relevant sources of information that help seek the alternatives available to the prospective consumer. We asked the consumer about Public sources of Information, Commercial sources of Information, Personal sources of Information. Analysis: As per the survey results, majority of the people came to know about Bajaj Pulsar through commercial sources, i.e., TV/Radio Advertisement. This speaks about the impact of the advertisement campaigns such as Definitely Male, Distinctively Ahead etc have over increasing the brand recall of Bajaj Pulsar. Market Partitioning over here would be based on price and performance. The information search in case of Bajaj Pulsar was primarily TV( 46 %) followed by Peer Group (25%) and Newspapers(20%).

3) Evaluation of Alternatives Question: Most important factor according to you while buying a bike Mileage 38

Looks Cost Maintenance After sales service

Question: Which price range bike would you like to buy Rs 30,000 40,000 Rs 40,001 50,000 Rs 50,001 - 60,000 Rs 60,001 70,000 Rs 70,001 and above

Objective: To understand the factors that go in deciding on the alternatives available we ask the consumer about his priority for looks, mileage and additionally about the price range which he is comfortable with. Analysis: Here the consumer will evaluate the various factors as looks, mileage and price. The consideration segment for the consumer would consist of product from players within the performance segment Honda Unicorn, TVS Apache, Hero Honda Hunk, Yamaha FZ 16. The consumer will evaluate these bikes on the expectancy model deciding the weights to be allocated to various factors. As per the survey the most of the consumer allocate the maximum weight-age to looks and style. This factor suitably satisfies his need of status and style-oriented lifestyle. The consumer during evaluation of alternatives pays prime heave to the looks of the two wheeler followed by the mileage parameter as is evident from the finding of the survey.

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4) Purchase Decision Question: Rank Bajaj Pulsar on the following parameters Brand Bajaj Mileage Looks Power Worth the money Maintenance Financing option available Re-Sale Value Price of Bikes Behavior of Staff

Objective: To identify the importance of various factors influencing the choice of a consumer from pool of various alternative available, and consumer product preference based on these factors. Analysis: Based on the evaluation criteria decided during the Evaluation of Alternatives the consumers will evaluate as to which bike to choose. The methodology applied would be heuristics. 40

Here one of the key advantage that pulsar has over other brands is that people have got positive attitude towards the bike and also there is a motivation to comply with other persons wishes. The intense positive attitude of the other person leads others to go for social conformity and therefore they buy those bikes which are common.

As per the finding of the survey Bajaj Pulsar scored on an average Very Good or Good rating which ensures that Bajaj Pulsar emerged as the best alternative after evaluation. Hence Bajaj Pulsar emerged as the product which most of the people would prefer to buy. Question: Which bike do you find most appealing Bajaj Pulsar 150cc Honda Unicorn Hero Honda Hunk TVS Apache Yamaha FZ 16

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In the survey around 52% people mentioned that they would prefer buying a pulsar over other alternatives.

Key Intervening Factors These days the decision of consumers to buy Bajaj pulsar is prolonged due to the international rising crude oil prices and also future expectation of such price rise, rising cost of the bike. Thus the consumer anticipates a Financial Risk which is currently prolonging the decision of the prospective consumer. Then with a new innovation and new product every now and then the consumer is not sure of buying the best product and thus anticipates time risk.

5) Post Purchase Behavior This is one key area where Bajaj has a done a good job and is the primary reason for their success. The Consumers have shown high level of satisfaction and therefore have even recommended others to buy the

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bike (word of mouth publicity). The post purchase behavior has been between delighted and satisfied. They have been able to build long term relationships with their prospective customers. Also customers seem to be happy with the after sales services provided by them. Due to its popularity the bike attracts a good re-sale value.

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CONCLUSION
Future Insights

The sales pattern for Bajaj Pulsar has been showing a descending trend because of introduction of products with features that leave it with no differentiation at all. Moreover these products have added advantages which help them gain an edge. The various modifications that have been introduced in the product are cosmetic except a few. There has not been much attempt in terms of enhancing the consumer base too. Also the promotions tend to be less effective than the Definitely Male Campaign which won it immense popularity. The problems associated with the Product since inception still persist. The Brand will have to suffer stagnated sales with no appreciable growth pattern if it continues similarly. It needs to come up with more innovations as the DTSi and enhancement of performance and parts for better Customer Experience. Being a product in the Dissonance Reducing segment of Consumer Buying Behaviour a sustained differentiation and Cost Leadership is highly important. Also it needs to expand its consumer base to newer segments of the market to ensure not only are its Hardcore Loyal customers retained but also larger number of customers are acquired and retained by the Product.

Suggestions

The following can be steps taken by Bajaj Pulsar to ensure better growth prospects in future: 1. Introduction of electronic eco-friendly machines could be alternative to rising oil prices and low cost car models. 44

2. Improving gearbox, led tail lamps which have been problem areas since inception and also the mudguard which shakes. Also modifications to ensure improved handling of the product. 3. Adapting the bike for rural conditions thus ensuring tapping the rural consumer segment. This would increase the consumer base of the product. Also since all the performers in the two wheeler industry have equally low rural market share it would act as a flanking strategy against the competitors. 4. To cater to consumers with different priorities Bajaj could release two versions of the product - One targeting the low end economy and performance conscious consumer. The other one targeting the high end consumer segment ready to shelve out more money for innovative technology, added features and looks along with the Hygiene factors. This helps in ensuring winning the prospective customers credits on the Expectance Model. Also with specific categorisation it avoids the Cannibalisation problem. 5. Given the fact that biking is a passion among the young consumer and there is a large segment that wants bikes because of passion and fun than regular benefits and affordability the Pro Biking concept should be taken up on a larger scale with more value addition. 6. After sales service improvising is one area where all players of two wheeler market lag and thus sincere efforts should be made to enhance the post purchase experience of consumer from satisfied to Delighted. 7. Expanding into the Foreign Markets and patenting the products and technologies to ensure no duplication of products as the Chinese Models of Pulsar.

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8. Penetrating Niche segments as for Traffic Purposes. However this must be done with care as this directly affects the perception of the product in the minds of the consumer.

Conclusion

Understanding Marketing concepts Understanding the basic marketing concepts was one of the main objective of the project. We, as a team, feel that this whole exercise was really helpful in complementing the theoretical understanding of the concepts with a practical approach. Key Learnings: o Various sections of the project helped us get in hand with various marketing concepts like SWOT analysis, marketing mix, competitor analysis, consumer behaviour, marketing research methodologies, o Implementation of the learned concepts.

Marketing Appraisal of Bajaj Pulsar Leader in its segment of performance bikes above 150 cc. Bajaj has been able to capture the heart and the mind share of its consumers along with the market share for a long time. It is one of the best products available in the market in terms of the balance of economy, performance and looks. As per the understanding from the consumer behaviour survey it is the top choice for basic benefits as conveyance and also status needs associated with stylish looks. Because of these features it is currently the cash cow for the Bajaj Group. Pulsar however needs to continuously innovate in terms of technology and design to maintain its market share against competitors as Hero Honda AND Yamaha. Hero Honda has been continuously launching new products in premium segments 46

and Yamaha is launching cost effective versions of its world renowned bikes, which is hitting the market, share of Bajaj Pulsar. Bajaj hence needs to develop marketing strategies to fight the external environment in terms of competitors and macroeconomic factors such as oil prices and inflation. From the understanding of the SWOT analysis the group can leverage upon its entrenched brand loyalty coupled with improvements in products to maintain its position.

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References

www.bajajauto.com www.en.wikipedia.org/wiki/Bajaj_Pulsar www.en.wikipedia.org/wiki/SWOT_analysis www.scribd.com/doc/12579190/Statistics-of-Bajaj

www.bikanerrockers.blogspot.com/2007/11/bajaj-pulsar-story-ofindias-most.html

www.consumerpsychologist.com www.openlearningworld.com

www.dancewithshadows.com/.../yamaha-fz-16-motorcycle-amacho-street-fighter-from-yamaha/

www.herohonda.com/co_corporate_profile.htm

Behavior and Social Issues, Spring 2006 by Foxall, Gordon R, Oliveira-Castro, Jorge M, James, Victoria K, Yani-de-Soriano, M Mirella, Sigurdsson, Valdimar, Keegan et al. (1992, p. 193) Craig Fleisher and Babette Bensoussan: "Strategic and Competitive Analysis: Methods and Techniques for Analyzing Business Competition." Prentice Hall, 2003

Tools used
www.surveymonkey.com For conducting Online survey

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Appendix A
Consumer Behavior Survey Questionnaire with results: Which mode of Transport do you prefer Public Transport Pooled Car Cabs Self Owned Four Wheeler Two Wheeler Which age group do you belong 18-24 25-40 40 and above Which price range bike would you like to buy Rs 30,000 40,000 Rs 40,001 50,000 Rs 50,001 - 60,000 Rs 60,001 70,000 Rs 70,001 and above You bought/feel like buying a bike due to Friends/Peers Articles/ Blogs Family Just for having a conveyance Other than these Most important factor while buying a bike Mileage Looks Cost Maintenance After sales service Which bike do you find most appealing Bajaj Pulsar 150cc Honda Unicorn Hero Honda Hunk TVS Apache % of Respondents 10.26% 5.13% 0.00% 12.82% 71.79%

82.05% 17.95% 0.00%

2.56% 20.51% 15.38% 35.64% 25.90%

17.95% 10.26% 7.69% 43.59% 20.51%

20.51% 56.41% 0.00% 17.95% 5.13%

51.28% 9.4% 2.54% 9.4% 49

Yamaha FZ 16 From where did you come to know about Bajaj Pulsar TV/ Radio Advertisement Newspaper/ Magazine Advertisement Peers/ Friends Family Road Shows Rank Bajaj Pulsar on the following parameters Brand Bajaj Mileage Looks Power Worth the money Maintenance Financing option available Re-Sale Value Price of Bikes Behavior of Staff Very Good 23% 12% 25% 23% 10% 20% 20% 28% 17% 35% Good 41% 48% 46% 48% 53% 51% 35% 28% 35% 38% OK 21% 23% 21% 15% 27% 19% 26% 27% 33% 20% Poor 10% 10% 2% 7% 5% 5% 12% 10% 10% 5%

27.38%

46.15% 20.51% 25.64% 2.56% 5.13%

Very Poor 5% 7% 7% 7% 5% 5% 7% 7% 5% 2%

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