TERM

OF
Fundamentals of Promotions Management

TOPIC: TWO WHEELER INDUSTRY

(BAJAJ PULSAR)

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Mankirtan singh Kuljeet K.
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BBA(HONS)MBA

INTRODUCTION OF “BAJAJ AUTO LTD.”

Bajaj Auto Limited are a leading manufacturer of 2 wheelers in India. Bajaj have plant
located at Akurdi near Pune and Waluj near Aurangabad. bajaj are planning to increase
our market share in the 2-wheeler segment. Bajaj have the required resources and
technical expertise along with goodwill they have built over the years among the Indian
consumer.

In the recent past, a manufacturers’ ability at product innovation and opening new market
niches have also been crucial for the growth. Bajaj technical collaboration with Kawasaki
of Japan has helped us to design a new moped for the semi urban and rural Indian
consumer. Improvement in product range, access to vehicle financing schemes and
deficiencies in rural personal transport will aid market expansion.

Mission:

• Focus on value based manufacturing

• Fostering team work & enhancing the capability of the team
• Continual Improvement
• Total Elimination of wastes
• Pollution Free & Safe Environment

VISION :

• To attain World Class Excellency by demonstrating Value Added products to

customers.

OBJECTIVE

Bajaj Limited are to cater the market needs of transportation by providing 2

wheeler and 3 wheeler vehicles. BAL has been producing thecatalogue products
to cater to the changing market requirements. Based on thecustomer feedback,
improvements are being made continuously in the existingproducts. In the
process of introducing new products, emission requirementsare being taken into
consideration and products manufactured are meeting the regulatory
requirements.
GOAL

• To make Bajaj Auto as the country's largest automobile company.

Swot of bajaj Automobiles

strengths

• Highly experienced management.

• Product design and development capabilities.
• Extensive R & D focus.
• Widespread distribution network.
• High performance products across all categories.
• High export to domestic sales ratio.
• Great financial support network (For financing the automobile)
• High economies of scale.
• High economies of scope.

Weaknesses:
• Hasn't employed the excess cash for long.
• Still has no established brand to match Hero Honda's Splendor in
commuter segment.
• Not a global player in spite of huge volumes.
• Not a globally recognizable brand (unlike the JV partner Kawasaki)

Opportunities:

• Double-digit growth in two-wheeler market.

• Untapped market above 180 cc in motorcycles.
• More maturity and movement towards higher-end motorcycles.
• The growing gearless trendy scooters and scooterette market.
• Growing world demand for entry-level motorcycles especially in emerging
markets.
Threats:

• The competition catches-up any new innovation in no time.

• Threat of cheap imported motorcycles from China.
• Margins getting squeezed from both the directions (Price as well as Cost)
 Corporate plan

(corporate objectives and

strategies)

Marketing Plan

(marketing objective and

strategies)

Steps involved in the marketing plan-

Situational analysis set marketing objective devise marketing objective

frame implementation tactics monitor and evaluate performance

IMC plan

(IMC objectives and strategies)

Steps involved in the IMC plan

Situational analysis Determine a problem and opportunity Determine

the communication objective Determine the budget Develop IMC
strategies Implement it and monitor activities Evaluate the planning
process
 IMC PLAN OF BAJAJ PULSAR

SWOT Analysis of bajaj pulser:

STRENGTHS

• Pulsar 200cc features India’s First Oil Cooled Engine which delivers maximum
power making it most powerful engine offered by Bajaj.

• New Pulsar also provides Digital Speedometer, Self Canceling Indicators which is
for the First time in this segment in India.

• Fuel efficiency: Pulsar 200cc delivers an impressive mileage of 38.2 kmpl in city as
compared to Karizma which delivers 30 kmpl in city.

• Customer Base: In past decade Bajaj has established a strong base amongst its
customers.

WEAKNESS

• Style and Design: PULSAR 200cc and 220cc derives their styling from there
previous version Pulsar 150 Dts-i and 180 Dts-i.
 • Pricing ; Bajaj 220cc(Rs 82449 basic price) is costlier than karizma(Rs 78000 basic
price)

OPPORTUNITIES

• If they derive new styling, shape, design for pulsar 200cc and 220cc then they can
attract more customers.

• Taking into consideration the reviews of the customers regarding the “fairing” of
220cc and making the needful changes will be an opportunity to capture an even
larger share of the 200cc+ segment.

THREATS:

• The biggest threat is faced from the goodwill of Karizma in this segment who is the
“Four-Stroke Two wheeler Ruler” of the Indian bike market.

• Certain technical faults in the bike design which are potentially dangerous to the
rider’s safety can be disastrous to the image of the bike.

 Problem/Opportunity Determination:
Problem:

The environment changed in the mid-1980, when the japanese manufacturers started
looking for possible indian partner in two wheeler segment.the Honda motor company set
up kinetic Honda with the firodias to manufacture scooters and hero Honda with the
munjal family to manufacture motorcycles.around the same time Suzuki partnered with
the TVS group to set up TVS Suzuki,yamha with Escorts to make motorcycle and
piaggio with the singhanias in LML to make scooters.

So at that time bajaj had limited R&D and no partners to access for new models or
technologies.on the other hand the other competiators launch new models of bikes but
bajaj justb focusing to reduction their production cost for this the market share of bajaj
should decline.

Opportunity:
So the opportunity for bajaj is to tie-up with international two wheeler company and they
can do this by tie-up with Tokyo based two wheeler company and first time in indian
automobile two wheeler history launching DTS-I technology through this they can
introduce sports bike like pulser in range of different cc’s through this they can grab the
market those customers who are high spender.

 Communication Objectives:
• The communication objective of bajaj pulsar is “Definitely Male" positioning
Pulsar to be a masculine-looking model with an appeal to the performance
sensitive customers.

• The bike take the position of Macho bikes it was more oriented towards being
"sexy".

• The position of the bike as World's first bike endowed with a Sex
(Gender).

• Bajaj Limited cater the market needs of transportation by providing 2 wheeler

vehicles in all segment like average income, middle income people and high
income people through segmentation.

• It has been producing the catalogue products to cater to the changing market
requirements.

• Based on the customer feedback, improvements are being made continuously in

the existing products.(Exp. Firstly they launch 150cc pulsar then 180cc then
200cc then 220cc.)

• In the process of introducing new products, requirements are being taken into
consideration and products manufactured are meeting the regulatory requirements.

 Budget Determination:
Budget for the implementation of IMC plan will be based on our competitors budget,
pulsar will allocate 20% more than its nearest competitor on implementation of IMC
plan. Because the pulsar is being as a men’s bike so there is so many stunts are involved
in their advertisement. The advertisement has done through different campaning like
organise sports event, the budget for this is 4 crore in comparison of Hero Honda 2 crore.

 IMC Strategies:
Target Audience
Bajaj target customer is in the income group of Rs. 25,001 to Rs. 50,000 (Low Middle
income group), and Rs. 51,000 to Rs. 77,000 (Middle income group).

The age of the target customer is from 21 years to 35 years.

Pulsar DTS-I are entry-level vehicles. The demand for Pulsar is predominantly from
middle to high income families and also among college students, who graduate from
bicycles to motorized vehicles.

Why should people go for pulser?

• A pulsar is much average as compared to (Hero Honda) bikes, which range

between Rs 70,000 – Rs 90,000. A Pulsar is only Rs 50,000 – Rs 800,000 and
hence will be a more affordable solution to the young customers’ needs.

• Pulsar, which we offer, will run on Petrol with DTS-I and hence it would be a
more feasible option than other petrol-run this segment of bikes.

• Pulsar give more status for money to the middle-income people who wants an up-
gradation for a low standard bikes but can’t afford a bike.

 Communication Mix

Advertisement

Television:
Bajaj plan to screen our advertisements on channels like Doordarshan, which is the most
common channel in India and is present an all the TV sets irrespective of the presence of
any other satellite channels. Apart from Doordarshan, Bajaj also plan to show our
advertisements on regional language channels like the Zee Alfa Marathi, DD Marathi etc.

The timings will be thoroughly studied and selected. Since it is a male usage product, the
product will be screened on programs with majority of male viewers. Apart from that
family dramas/programs will also have the commercials of our moped.
Sample the commercial: A slow, casual bank robbery. A slow, casual walk to the bike,
even as the cops close in. One second the robber is about to get caught; the next, he's long
gone.

Add to this the fact that the Pulsar 220 is the fastest production bike in the country with a
top speed in excess of 140 kmph. The fastest Indian? You got it!

Print Ads:
Will be published in youth’s magazines such as sports stars and other popular magazines;
print ad will carry full details of fast track watches launched and store details.

This is the print advertisement of

new DTSI technology launching in bajaj pulsar

News paper:

Like Times of India and The Hindu will carry paper bleeding ads of full size paper for
the launch of new range and opening of new pulsar or xcd bikes.
Hoardings:
Bajaj will also put up hoardings carrying messages issued in public interest near accident-
prone zones, railway crossings, and town/village entrance (gate).
Sales promotion

Sales promotion will be used at the time of festivals such as Diwali, Dushera and
Christmas to boost the sales and increase footfalls in the stores, following sales
promotion technique can be used to boost the sales:

Discounts-Time to time we will use sales promotion to boost sales, during festive
season such as Diwali and Dasheraa we can provide discounts on a certain amount of
purchases. Like if customer purchase 150 cc pulsar bike they get discount of
Rs.2000/- and when customer purchase 200 cc bike they will get free insurance or
bike covers etc.

In sale promotion like their should be a camp on main road or popular street like for
offering that there should be exchange offer give your old bike or scooter and take a new
bajaj bike the amount of old exchange bike or scooter will be deducted from the new one
bajaj bike. this will be implemented in their agencies also.

Its After Sales Service will include a 1-year warranty on spare parts and free servicing for
the first 3 times (not including cost of parts).

 Events
National Sports Authority of India. Out door Basket ball & Volley ball courts in
addition to Hockey & Football playgrounds are already being utilized by the local
population.
Raman Munjal Memorial Hospital : A multi specialty 30 bed hospital, to be upgraded
to 100 bed unit having state of the art equipment providing quality health care to the rural
population of the catchment area of 20 KM around Dharuhera, apart from providing
immediate life saving medical aid to the Accident & Trauma victims of National highway
No-8 .

Drinking Water: Southern Haryana being water scarce area, the Company has installed
75 deep bore hand pumps in the adjoining villages to provide clean drinking water.

Public relations

Public relation campaign will start with preparing database of our existing customer and
preparing database of our potential customers so that future offers can be send to them,
database of customers will be collected by filling form online and on our

Message Strategies:

• Definitely male
• Digital Biking
• Free biking
• Distinctly Ahead (Which also happens to be corporate tagline)

It was not only the bike's performance that triggered the brand becoming an icon, bike
take the persona of Macho bikes it was more oriented towards being "sexy". The Big
Idea was to position the bike as World's first bike endowed with a Sex (Gender).Thus
born the classic campaign of all times "Definitely Male". The design and performance
of the brand increase sales level.

 Medium:

• Medium used were all.

• They used all – print, TV, ads, sponsorships, events, associations etc.
• TV: mostly shown its abilities, more visual appeal
• Print: gave the specifications etc. (Information)
• Other media: stayed in the minds of consumers.
• Auto magazines: Reviews from the experts, experts and critic reviews.
  Implementation and monitoring of strategy:
we expect to sell 2800 units in Year I with a Profit of Rs.4 crore in Year I. its fixed
expenses for the purpose of this project would be around Rs.14crores. Its Break-Even
Sales is 12,00 units approx. and it plans to achieve it by the end of Year III.
After being successful in these areas, it plans to expand further in the region, launch a
new variant, and also expand to other high-density states.
Annual Projections

– Total Sales in Year I – 2800 units (monthly distribution as above)

– Total Sales in Year II – 4800 units (after expanding to other areas)
– Total Sales in Year III – 7800 units (extensive market penetration)

 Evaluating the planning process:

Evaluation of an IMC plan is not an easy task but we will evaluate our planning process
in certain parameters such as-

• Profit increasing after sales per year as mentioned above..

• Increase in monthly sales

• Brand awareness among the customers

• Response to the sales offer.

 Conclusion:
Bajaj Auto has been at the forefront of bringing about major changes in its
technologies and processes to create more exciting and distinctive offerings for its
customers. In the process, it has gone through two overlapping processes of
transformation. The first was creating, communicating and executing basic processes
of change - of the way it looked at products and design, at markets, at engineering and
manufacturing, and at the organizational structure for delivering mind-set change. Its
use of new technologies gave consumers greater power and more riding comfort
without sacrificing economy; in its high quality engineering and R&D; and in its
speed and transparency.

The Pulsar was the first “definitely male” bicycle that was the first one to be
positioned as the “male” amongst bikes. Thanks to this single place the Pulsar 150cc
has been the greatest prosperous 150 cc till date.
 It needs to target the young age group more effectively as this group is extremely
trend savvy. The advertising should have a fresh look and the product should live up
to the Gen-X's expectations.

 References

http://www.marketing91.com/swot-bajaj pulsar/

http://strategicbrand.blogspot.com/2007/06/ bajaj pulsar.html

http://www.marketing91.com/marketing-mix- bajaj pulsar /

http://www.slideshare.net/sk_prince/sales-promotion- bajaj pulsar

5688049
http://bms.co.in/advertising-/
http://www.advertolog.com/marico-industries/print-outdoor/ bajaj
pulsar -4851455/