Example & analysis of new

product planning and

diffusion for an industrial
product.

Sebastian Lee
 Industrial Products
Industrial products are those purchased for
further processing or for use in conducting a
business.

The distinction between a consumer product

and an industrial product is based on the
purpose for which the product is bought.
Bajaj DTS-i technology
The Product Development Process
1. Idea Generation
2. Idea Screening
3. Concept Development
4. Marketing Strategy
5. Business analysis
6. Product development
7. Test marketing
8. Commercialization
 Idea Generation
 The new product development process starts
with the search for ideas.

 It is also called Brainstorming of new product.

 New product ideas can be derived from many

sources :
Customers, Scientists, Competitors, Company
sales people, dealers and top management.
 Idea Generation
 The project was faced with internal
resistance, reservations by Mckinsey and
doubts on its effects on Bajaj's relation with
Kawasaki. The project required approximately
36 months for completion and costed Bajaj
Rs.1 billion.
 Idea Screening
 The second stage is reducing by screening. In
this stage, the company must spot and drop
poor ideas as early as possible.

 In this stage the Company must avoid

permitting a poor idea to move into
development and commercialization, or
dropping a good idea.
 Idea Screening
 There would be a revolution in the modern
motorcycling era in the country and that Bajaj
would be the first to offer it to consumers.

 A technology that would offer phenomenal

performance augmentation and would be
introduced for the first time.
Concept Development and Testing
 Surviving ideas must now be developed into
product concepts.

 A ‘Product idea’ is an idea for a possible

product that the company can see itself
offering to the market. A ‘Product concept’ is
an elaborate version of the idea expressed in
meaningful consumer terms.
Concept Development and Testing
Producing an engine to add to a Pulsar to
increase it’s power and also increase fuel
economy.

 Who is to use the end product?

 What primary benefit can be built in the

existing product?
Concept Development and Testing
 By asking such questions, the company formed a product
concept :
Twin Sparkplug
 For faster and better combustion. One spark plug

at one end of the combustion chamber is the conventional

practice. The flame front created by the spark takes some
time to reach the farthest portion of the combustion
chamber.

 This leads to slower burning of the air-fuel mixture and

creates limitations in optimizing the combustion chamber
characteristics. Two spark plugs at either ends of the
combustion chamber help in faster and better combustion.
Conventional 4 Stroke Engine
vs
DTS- i Engine
 Marketing Strategy Development
 The management of “Bajaj” developed a
preliminary marketing strategy statement for
including the new technology into the
market. This was refined into subsequent
stages.

 The stages consisted of Size, structure and

behavior of the target market, the planned
product positioning, the sales, market share
and profit goals sought in the first few years.
 Business Analysis
◦ Estimate likely selling price based upon
competition and customer feedback.

◦ Estimate sales volume based upon size of

market.

◦ Estimate profitability and breakeven

point.
 Business Analysis
 Bajaj had reviewed the sales, cost and profit projections to
determine whether they satisfy the company’s objectives.

 The management of Bajaj estimated whether sales would

be high enough to return a satisfactory profit to the firm.

 This was done by estimating first time sales, replacements

sales and repeat sales.

 After preparing the sales forecast, the management of

Bajaj had estimated the cost and profits of this venture.
This was done by the R&D, manufacturing, marketing and
finance departments.
 Product Development
 If the product concept passes the business
test, it moves to the R&D department and
engineering department to be developed into
a physical product.

 This stage answers whether the product idea

can be transalated into a technically and
commercially feasible product. The R&D
department will develop a physical version of
the product concept.
Product Development

4-Valve Engine
 Product Development
 A typical 2 valve engine has one inlet and one
outlet valve. This limits the amount of air-
fuel mixture and exhaust gases that are
dispensed with each other.

 This 4 valve engine has 2 intake and 2

exhaust valves that ensures faster, cleaner &
more efficient combustion by improving
breathing, i.e. the intake and exhaust process
of engine.
 Product Development
Edge over the rest

 Better engine performance and low

emissions.

 Better power and pick up while not sacrificing

on fuel efficiency.

 Lightweight & compact engine.

Product Development

DTS-i Technology
 Product Development
 A single spark plug placed at one end of the
combustion chamber has the disadvantage
that the flame front created by the spark
takes time to reach the farthest portion of the
combustion chamber. This leads to slower &
incomplete burning of air-fuel mixture.

 Incase of DTS-i, two spark- plugs fire at the

same time, controlled digitally for optimum
combustion of air-fuel mixture.
 Product Development
Edge over the rest

 Near complete combustion of even lean air-

fuel mixture.

 Helps to reduce exhaust pollutants like

hydrocarbons.
 Test Marketing
 2001
 The original Pulsar was introduced with a

spark-ignited four–stroke engine which made

12bhp of maximum power.

 2003
 The second generation Pulsars featured newly

developed DTSi technology, which increased the

power rating of both versions by 1 bhp (0.75
kW) each and also increased fuel economy.
 Commercialization
 In launching a new product, the company must make
four decisions :

 When: 2003.

 Where: National market.

 To whom: Innovators, Early Adopters & Early Majority.

 How : Bajaj allocated the marketing budget among the

marketing mix elements and sequenced the various
activities.
Product diffusion Curve
The Diffusion Process
 The diffusion process is concerned with how
innovations spread, i.e. how they are
assimilated in the market.

 It is the process by which the acceptance of

an innovation (a new product, new service, or
new idea) is spread by communication to
members of a social system (target market)
over a period of time.
 The Diffusion Process
 “Bajaj PULSAR” is the most bought 2 wheeler
in India. So what was the secret behind the
ever surviving sturdy performance of Bajaj ?

 The answer is the revolutionary technology

called the DTS-i. with a normal engine type
as that of any 2 wheeler, a small adaptation
has been done with auto-controlled
mechanism of a cutting edge microcontroller
to achieve the best performance.