Bajaj Pulsar 220 F Marketing strategy and analysis for the year 2012-13

1. Aditya Shetti

3. ABOUT BAJAJ
The Company
 The Bajaj Group is amongst the top 10 business
houses in India.
 Its footprint stretches over a wide range of
industries, spanning automobiles (two-wheelers
and three-wheelers), home appliances, lighting, iron
and steel, insurance, travel and finance.
 The group's flagship company, Bajaj Auto, is ranked
as the world's fourth largest two- and three- wheeler
manufacturer and the Bajaj brand is well-known
across several countries in Latin
America, Africa, Middle East, South and South East
Asia.
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4. RAHUL BAJAJ
The present Chairman of the group,
Rahul Bajaj, took charge of the business in 1965.
 Under his leadership, the turnover of
the Bajaj Auto the flagship company
has gone up from INR.72 million to INR. 120
billion, its product portfolio has expanded and the
brand has found a global market.
 He is one of India’s most distinguished business
leaders and internationally respected for his
business acumen and entrepreneurial spirit.
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5. INTRODUCTION OF BAJAJ PULSAR IN THE
INDIAN MARKET
Developed by Bajaj Auto in association with
designer Glynn Kerr Tokyo R&D, Pulsar was first
launched on November 24, 2001.
 At that time, the Indian two-wheeler industry was
populated by 80-100cc bikes with less power
capacity.
 Bajaj had expected Pulsar to attract young power
biking lovers of the country. The whole project cost
Rs 100 crores (Rs 1 billion).
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7. FEATURES & TECHNOLOGY
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COMFORT
The Pulsar 220F has a telescopic front and a 5 step
adjustable, nitrox rear suspension that provides great handling
and comfort. The aggressive seating posture gives a racer feel
while still being comfortable for city as well as highway riding.
SAFETY
To handle the power and performance that the Pulsar 220F is
capable of delivering, certain elements like front and rear disc
brakes, broad rear tyre - 120/80 X 17", front and rear tubeless
tyres and strengthened 5 spoke alloy wheels are standard fit. The
Pulsar 220F also boasts of a projector headlamp that provides a
wider beam for better low light visibility.
STYLING
The Pulsar 220F has a stylish semi-fairing that is both good
looking and aerodynamic, ultra-stylish LED tail lamp, sporty split
seats and split rear grab rails. Standard fitments on the bike
include the clip-on handle bar complete with pass switch, electric
start, engine kill switch and self-cancelling indicators.

9. ANNUAL REPORT 2012-13
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Despite a difficult market, net sales and other
operating income grew by 2.8% to an all-time high
of Rs 20,351 crores.
Sales in volume terms reduced marginally by 2.6%.
Bajaj Auto sold 4.24 million units versus 4.35 million
units in the previous year. This consisted of 3.76
million motorcycles and more than 480,000 threewheelers.
Profit before tax (PBT) grew by 6% to Rs 4,266
crores.
Profit after tax (PAT) was at Rs 3,044 crores —
marginally higher than the previous year.

10. PERFORMANCE HIGHLIGHTS FOR FY
2013
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Recorded its highest ever net sales and operating income.
In an extremely challenging year for the industry as a
whole, total revenue grew by 3.3% to Rs 20,793 crores.
Exports over 1.5 million units. The value of exports was the
highest ever at Rs 6,713 crores.
Profit after tax (PAT) was at Rs 3,044 crores – at an all-time
high.
Surplus cash and cash equivalents, as on 31 March
2013, was Rs 5,706 crores.

14. PRODUCT
 Born
as the Fastest Indian, the Pulsar 220F is a
performance machine for the true enthusiast.
Its powerful 4 stroke, 220 cc DTS-i engine
delivers 21Ps power and a healthy 19 Nm
torque, making it the most powerful bike in its
category. Designed for speed and
performance, the Pulsar 220 is perfect for
dragging in a straight dash or handling corners
with panache.
 It is a great bike for people looking for power
and a comfortable ride on the Indian roads. It
provides an easy top gear riding experience
with less gear changes and instant pick up in
any gear.

15. PLACE
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For Bajaj Auto, the supply chain encompasses the
process from vendors to the final customers via
manufacturing. Therefore, the company’s supply
chain involves as much the vendors and the
procurement – to – payment logistics, as it does the
manufacturing to selling processes, or the order to
cash system.

16. PRICE
The price of Bajaj Pulsar 220F depends on the city.
For Goa, Ex – Showroom price is 83, 450 whereas
the On Road price is 90,000 (Approx.)
 Bajaj Pulsar is one of the premier 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.
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17. PROMOTION
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Bajaj’s dealers had been selling scooters; they had little idea
how to sell motorcycles. So the entire dealership network was
trained to sell motorcycles.
The introduction of Pulsar was executed with a completely
different approach and a ―Definitely Male‖ positioning. Bajaj kept
coming up with better products like the Pulsar 180cc, then the
Pulsar DTSi followed by the 200cc and 220cc Pulsars.
The concept of ―Definitely Male‖ was well accepted by the people
and Bajaj came out with some astonishing ads. Though the DTSi
technology was new, people accepted it very well. It easily
conveyed the message it wanted to. In 2004, Bajaj completely
revamped its identity, gave up the ―Humara Bajaj‖ umbrella and
came up with a completely new enhanced positioning focusing
more on the technology and experience.
With a new, sharp brand logo, Bajaj pressed itself as ―Digital
Biking‖ and ―Distinctly Ahead‖.
The company has been regularly making alterations to it to make
the motorbike look fresh at all times.

18. OTHER PROMOTIONS
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Pulsar Mania - An advertisement showing some bikers
performing various stunts on their Pulsar. An attempt to
position itself as India’s true sports bike.
MTV Stunt Mania – After the success of Pulsar amongst stunt
bikers, Bajaj decided to take a step forward by creating a new
show called ―Stunt Mania‖ on MTV. Stunt bikers from all
across India compete to prove heir mettle.
GhostRyderz – A group of stunt bikers that emerged as the
winners of ―MTV Stunt Mania‖ (Bajaj’s own show) are
sponsored by Bajaj for various stunt tournaments.
Pulsar Licence – A ―licence‖ issued by Pulsar to people in
order to prove their Pulsar Mania. The licence carries details
like the Highest Speed, Favourite Stunt, Outstation trips etc.
apart from the basic personal details.

20. STRENGTHS
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Excellent brand name
High product quality
High performance, speed and pickup
Specially compounded high strength polymers for all body
panels
Focus on customer delight besides customer satisfaction
Latest Hi-Tech core concepts of production and quality
Passion for quality and safety built in to every bike
Hydraulic disk brakes front and rear for maximum safety.
Disks are high quality, stress relieved steel
High quality switches for long life
Custom cast aluminium alloy wheels
Tires are designed for optimum performance on wet and dry
road traction

21. WEAKNESSES
The recent trend of volume driven growth is likely to
get pronounced. The growing competitive pressure
in the 2 wheeler market can limit the scope for
expansion in profitability.
 The degree of success enjoyed by model
introductions would be critical performance
determinant.
 Mileage on a lower side due to focus on power.
 High cost in various variants.
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22. OPPORTUNITIES
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Bajaj, which uses Kawasaki Heavy Industries Ltd.
Technology for some models, faces growing
competitions from Honda motorcycles, Yamaha and
Suzuki Motors, besides local players Hero Motor
Corp., TVS and Kinetic Motors.
Bajaj, overtaken as India’s top 2 wheeler maker in 2002
by Hero Honda Motors Ltd. (Now Hero Motor
Corp.), has benefited from rising incomes in Asia’s third
largest economy, besides cheaper loans and a shift in
preference to high value motorbikes from scooters.
Expansion in rural and tier-2 cities .
Cost management thus reducing the price of the bike.
Developmental changes thus reducing bike's weight.
Untapped market above 200 cc in India.
Growing world demand for entry level motorcycles.

23. THREATS
New entrants in the market such as Honda and
Yamaha have been eating up the market share of
Pulsar by launching new models and variants.
 Low mileage is another problem of Pulsar. Fuel
prices have increased dramatically over the last few
years in India which has customers thinking twice
whether to opt for a high performance bike or a 2
wheeler which offers good mileage.
 Low-cost bikes still seem to be the crowd favourite
in rural markets.
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