Brand Management Assignment

P13185 PGDM-B Parent Brand - BAJAJ

‘Hamara Naya Bajaj’

Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading Corporation Private Limited. It started off by selling imported two- and three-wheelers in India. In 1959, it obtained license from the Government of India to manufacture two- and three-wheelers and it went public in 1960. In 1970, it rolled out its 100,000th vehicle. In 1977, it managed to produce and sell 100,000 vehicles in a single financial year. In 1985, it started producing at Waluj in Aurangabad. In 1986, it managed to produce and sell 500,000 vehicles in a single financial year. In 1995, it rolled out its ten millionth vehicle and produced and sold 1 million vehicles in a year.

Bajaj Auto is a major Indian automobile manufacturer. It is India's largest and the world's 4th largest two- and three- wheeler maker. It is based in Pune, Maharashtra, with plants in Waluj near Aurangabad, Akurdi and Chakan, near Pune. Bajaj Auto makes and exports motorscooters, and the auto rickshaw. It is widely believed that Bajaj is headed for a de-merger into 2 separate companies: Bajaj Auto and Bajaj Finance.

The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946.

Key Highlights

 The total sales in 2003-04 crossed the "1 million" mark registering a growth of 18% v/s 2002-03 - higher than the industry growth rate of 15%.  To increase its volumes in the entry level segment of the motorcycle market, the Company has launched a new model CT-100 in May 2004. This bike with its class leading performance and phenomenal fuel efficiency is expected to redefine the entry level segment.  To garner a substantial share in the executive segment of the motorcycle market a technologically superior bike, internally code named K 60, will be launched in second quarter of 2004-05.  The Pulsar continues to be a market leader in the premium end of the motorcycle market with a sale of over 297,000 numbers in 2003-04. The cumulative sale of Pulsar's to date has crossed the 500,000 mark within a short span of 29 months.  In the ungeared scooter segment an upgrade of Spirit with a 70cc engine and a new ungeared scooter "Wave" will be launched in the second quarter of 2004-05.

PRODUCTS OF BAJAJ AUTO LIMITED Motorcycles

o Kawasaki Eliminator

o Bajaj Pulsar

o Bajaj Kawasaki Wind 125

o Bajaj Boxer

o Bajaj CT 100

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o Bajaj Caliber

o

o

Upcoming Models

 Bajaj Krystal

 Bajaj Blade

 Bajaj Sonic Brand Timeline – Pulsar Evolution

PULSAR CLASSIC 2000 - 2001 Release - October 2001 At the time when India was riding on 100 cc bikes, Pulsar was launched with two variants; 150 cc and 180 cc, stirring the entire two wheeler market. And with that, India's first Sports Bike was born. Fuel Tank Pulsar was the first bike on Indian roads to flaunt a stylish, muscular fuel tank.

Disc Brake was made a standard feature in Pulsar, which provided superior braking performance as compared to drums brakes. Disc Brake bestowed far greater safety to the rider by shortening the stopping distance.

PULSAR UG 1 2002 - 2003 Release - October 2003 By now, Pulsar was already ruling the roads. It dominated the two wheeler market with 71% market share. Pulsar was selling almost two times more than the competitor bikes put together (which included CBZ, Karizma, Hunk, Fiero and Apache.)

DTS-i Engine The revolutionary new DTS-i engine was introduced in both Pulsar variants. Patented by Bajaj, this technology helped in near complete combustion of air-fuel mixture, resulting in increased torque and better fuel economy. DTS-i has dominated the segment even today. Bikini Headlamp & Twin Pilot Lamps Stylish new bikini headlamps with twin pilot lamps made way into the Pulsar 180, ensuring safe riding even at low-light conditions.

Broader Wheelbase The wheelbase of Pulsar 180 was increased from 1278 mm to 1320 mm, which provided better road grip.

PULSAR UG 2 2004 - 2005 Release - November 2004 In the wake of rising competition, Pulsar was still the best seller with 21,311 bikes, when seven competing brands collectively sold 16701 bikes. Pulsar was still a rage. ExhausTEC ExhausTEC (Torque Expansion Chamber), yet another patented technology from Bajaj made its way into the Pulsar twins. The technology helped the bikes gain more pickup at lower rpm, thereby dramatically improving the performance of the machines. The rider no longer needed to shift gears frequently in traffic, as the bike now had the ability to pull in higher gears at lower speeds. The bikes were already pushing the needle with peak power outputs of 13.5 and 16.5 Ps for Pulsar 150 and 180 respectively. Nitrox Shock Absorbers Gas charged rear shock absorbers called Nitrox, were introduced which helped greatly in absorbing bumps off the road. When compared with the traditional hydraulic shock absorbers, Nitrox offered a much smoother ride even for the pillion, regardless of the type of terrain. 17 inch Alloy Wheels The Pulsar now flaunted the new 17 inch alloy wheels, which were made standard. The rust- resistant alloy wheels now added more strength to the bike while making it more visually appealing. As opposed to the 18" wheels in other bikes, the 17" wheels in Pulsar facilitated longer suspension travel, providing plush riding comfort.

August 2005 All Black Styling Come August and Pulsar received an 'All Black styling', which added to its mean and aggressive looks, making the bike even more sporty & stylish.

PULSAR UG 3 2006 Release October 2006 In October '06, the Pulsar 150 and 180 went through another round of stylish and technological overhaul. The sales of Pulsar saw a new high with 40,574 bikes sold, which was almost double the competitor bikes put together. Digital Speedometer The analog speedometer gave way to the new Digital Speedometer which was made a standard feature among all Pulsar models.The large digital speed read-out was much easy to read and understand, thereby requiring less distraction while touching new speeds.

LED Tail Light Aesthetically appealing, new, compact and stylish LED tail lamps were introduced in the twin Pulsar models. LED lamps consumed far lesser power than the traditional filament bulbs and emitted little heat.Pulsar was the first bike to start the trend of LEDs, which soon forced other bike makers to switch over from incandescent bulbs to LEDs. Wolf Eyed Headlamp Pulsar 150 and 180 got the new wolf eyed headlamps with aggressive masked fairings, which added to the mean look of the beasts .

Self-Cancelling Turn Indicators Pulsar became the first vehicle in the world to employ non-contact type 'Intelligent' Self- cancelling Turn signals. The car-like self-cancelling feature turns off the indicator under 2 conditions: When the turn has been completed and the handlebar comes to a straight ahead position, When the rider has selected right or left turn but hasn't taken the turn, then the timer function switches off the indicators after a pre-set time. This feature set a new benchmark in the motorcycle industry.

PULSAR 200 DTS-I & PULSAR 220 DTS-FI 2007 - 2008 February 2007 The higher order was created and the first Indian bikes to break the 200 cc barrier had hit the road - The Pulsar 200 and 220. Biking in India was set to change and Pulsar was again leading the revolution.

Split Seat & Split Grab Rail Sporty split seats and split rear grab rails enhanced the sporty look of the bikes.

Tubeless Tyres The new Pulsar 200 and 220 now sported tubeless tyres. Tubeless tyres don't burst or deflate rapidly and hence minimize chances of accident. Being lighter, less rolling resistance in tubeless tyres meant less heat build-up, ensuring less chances of failure. The tubeless tyres made the Pulsar twins much safer on road than any other bike in its class.

June 2007 With the advent of technological advancements, Pulsar was ruling the Indian roads with its breakthrough patented technologies, which offered better safety, comfort and fuel efficiency.

Half Fairing The Pulsar 220 DTS-Fi boasted a stylish new aerodynamic half fairing, which gave the bike a unique identity on the road. Projector Headlamp Pulsar 220 came with high wattage (55 watts) ellipsoidal projector headlamp for low beam which provided sharp, scatter-free, white focussed beam. The projector headlamp provided far greater illumination, compared to conventional headlamps of other bikes, for safe and confident riding.

DTS-Fi Engine DTS-Fi (Digital Twin Spark ) is another patented technology where the conventional carburettor has been replaced by injector which injects fuel into the engine in a spray form.

The main advantages of Fuel Injection are: * Increased power output for same cc. * Better low end torque. * Lower fuel delivery & optimization of spark timing. * Improved cold start, quick warm-up and excellent response to sudden acceleration. Rear Disc Brakes Most bikes in India came equipped with a drum brake on the rear wheel. The Pulsar 220 came with a rear disc brake as standard. Disc brakes provide far better braking power and are relatively maintenance - free.

PULSAR UG 4 2009 Release - May 2009 By May '09, Pulsar was competing with no less than 11 different brands in the market. Despite the tough competition, Pulsar sold 65,928 bikes, which were numbers till date. Riders were not ready to part with Pulsar which was evolving at a stupendous rate. Tank Flap A new tank flap was added which gave the bike an aerodynamic look.

Split Seat & Split Grab Rail Split Seat was added for better style and sitting comfort. The Split Seat has been incorporated keeping with the essence of international sports bikes. The Split grab rail perfectly integrated with the Split Seat styling. Clip on Handle Bar

Pulsar 180 got new Clip on Handlebars, making the bike look sportier than ever before.

Self-Start For the first time, Pulsar 180 said goodbye to kick start. The bike now boasted a modern self- start only feature. DC Lighting Unlike conventional AC (Alternate Current) circuit in bikes, where intensity of voltage fluctuates with engine rpm, Pulsar came with a DC (Direct Current) circuit providing constant intensity voltage. A 12 V full DC headlamp was introduced in the Pulsar, which projected a constant light beam at all speeds, thus ensuring clear visibility even at low speeds.

LED Tail Light Aesthetically appealing, new, compact and stylish LED tail lamps were introduced in the twin Pulsar models. LED lamps consumed far lesser power than the traditional filament bulbs and emitted little heat.Pulsar was the first bike to start the trend of LEDs, which soon forced other bike makers to switch over from incandescent bulbs to LEDs. Back Lit Switches For the first time, Pulsar featured a new set of Back Lit Switches, the operation of which is based on non-contact i.e. switching was made possible without physical contact. Due to which, there is no wear and tear and hence its life would be equal to that of the bike itself.

PULSAR 220F DTS-I 2009 June 2009 By 2009-10, when the competitors were still coping to keep up with the speedy evolution of Pulsar, the Pulsar was enjoying a record high sale of over 65,000 bikes. The competitors had understood it wasn't going to be easy. Soft Compound Tubeless Tyres Pulsar 220F got the fatter 120/80 X 17" soft compound, tubeless tyres and strengthened 5 spoke alloy wheels for stunning looks, easy maintenance and better road grip.

Semi Fairing The ultra stylish aerodynamic Semi Fairing was fitted into the Pulsar 220F for added sporty appeal. DTS-i Engine In June '09, the Pulsar 220F was reintroduced with the patented DTS-i engine, making the bike a complete sporting legend.

PULSAR 135 LS 2009 - 2010 December 2009 The Pulsar 135 LS was introduced, which was lighter, compact and flaunted a leaner and sportier look. Pulsar 135 is the most awarded bike ever. World's First 4 Valve DTS-i Engine Pulsar 135 LS comes with world's first and only 4 Valve DTS-i engine that provides greater power of 13.5 Ps coupled with higher fuel efficiency, making the bike light and compact.

Split Seat & Split Grab Rail Pulsar 135 LS sports Split Seat for better style and sitting comfort. The Split Seat has been incorporated keeping with the essence of international sports bikes. The Split grab rail perfectly integrates with the Split Seat styling. Front Disc Brake The bike comes with a 240 mm ventilated front disc brake, for quicker and safer braking each time. Clip on Handle Bar Pulsar 135 LS flaunts the Clip on Handlebars, making the bike a true 'Light Sport' . July 2010 Split Rear Tyre Hugger Split rear tyre hugger was introduced into the bike, which prevented internal parts from mud, while the curved outer unit prohibited water to spill over to the vehicle behind. Highest Power to Weight Ratio The Pulsar 135 LS boasts of a higher power to weight ratio of 110.7 Ps/Ton, which is the highest in its category, beating many of the 150 cc bikes. Just one of the reasons why it touches 0 to 60kmph in 5.1 seconds flat.

PULSAR 220 GETS A NEW VARIANT 2010 January 2010 A new variant of Pulsar was launched - Pulsar 220 Street Fighter. The bike carried forward the look of the legendary Pulsar 200. And with the launch, Pulsar broke all previous records and sold 76,023 units. Street Fighter With Bikini Fairing The Pulsar 220 Street Fighter was made lighter and now sported a bikini fairing.

February 2010 Clip on Handle Bar Just like its predecessor, Pulsar 220 Street Fighter got new Clip on Handlebars, making the bike look sportier than before.

Pulsar 200 NS 2012 marked the entry of Bajaj's latest design, the Pulsar 200NS (NS standing for Naked-Sport). The bike has a revised 200 cc liquid cooled engine, which produces 23.17 bhp (17.28 kW) at 9,500 rpm and 18.3 N·m (13.5 lbf·ft) at 8,000 rpm. It has a new triple-spark design, along-with a new four-valve SOHC. The company claims a top speed of 136 km/h (85 mph). It does not have fuel injection like its predecessor, the Pulsar 220Fi. It has a petal disc brake on the front, a disc brake on the rear wheel, and a gas-charged monoshock. It was launched in April 2012. Claimed fuel economy is 58 kilometres per litre (140 mpg-US) when ridden under 60 kilometres per hour (37 mph). Design of the 200NS was by Bajaj lead designer Edgar Heinrich, who left Bajaj to become head of BMW Motorrad design in mid-2012.

Up Coming Release

At the February 2014 , Bajaj announced two new 375 cc Pulsar variants: the CS400, an unfaired "street-naked" compared stylistically to the Ducati Diavel and the SS400, with a full fairing. Models shown were described by press as "near-production prototypes

Bajaj Logo, Slogan Ad campaigns

 Bajaj Auto unveiled the new corporate identity on the 15th of January at the Auto Expo 2004, New Delhi. The white and blue reverse hexagonal symbol with Bajaj Auto in small lettering, which stood in good stead for Bajaj Auto for many decades, finally paved way for a refreshing new look symbol with the Bajaj logotype in capital letters. The new identity arrives at a time when Bajaj Auto has successfully changed into a major motorcycle manufacturer with proven credentials in award winning Pulsar twins and also proved its technological capability with the introduction the revolutionary Digital Twin Spark Ignition (DTSi) technology.  The new visual identity of Bajaj Auto emanates from the confirmation of core values, which Bajaj has identified as its brand values. The Brand essence for the new Bajaj has been defined as "Excitement". Excitement engineering will deliver and inspire confidence in to various stakeholders like Bajaj has traditionally done. Bajaj promises to live its essence through a set of five Brand Values of Learning, Innovation, Perfection, Speed and Transparency.

 The change in Identity is a part of the ongoing changes happening at Bajaj. At a time when Bajaj has state of the art manufacturing infrastructure, has an enviable distribution and service network, has created a benchmark R&D facility and at a time when the customer has changed in terms of its exposure to quality and style, the change in Identity will help invite a paradigm shift in consumer perception of the company.

 The traditional hexagonal symbol has been replaced by an open abstract form of stylized B, the "flying B" as it has been named represents style and technology. It also has a strong association with the heritage of Bajaj since the external form has a hint of hexagon. "Flying B" form denotes speed and open form denotes the transparency.

 Bajaj has adopted a new brandline of "Inspiring Confidence". In whatever the company does it seeks to inspire confidence in its audience. Bajaj has traditionally enjoyed tremendous consumer support and plans to consolidate and move ahead on this. The Brandline appears below the Logotype in a script font. This font is to represent learning values at Bajaj and that Bajaj as a brand moves closer to customer.

 The Identity has a fresh new Blue colour. This Blue represents stability and strength of Bajaj. Blue also represents high technology and precision engineering. The new Identity presents a futuristic face of the new global Bajaj. Elephant Design has been working with Bajaj on creating and implementing the new Bajaj identity. The new brand will manifest in all consumer and employee interfaces.

ADVERTISING STRATEGY and SLOGAN  Bajaj is always known for its outstanding ads over the period of time. Since its inception, Bajaj has come out with variety of ads and were always successful in their advertisements. Scooters were well known by the brand name of Bajaj. Be it any scooter, one used to recognize it by the brand name Bajaj. This was the identity a decade ago which the Bajaj has still maintained. Bajaj is always known for its ads without well-known brand ambassadors which is again a plus point to its cart as it saves a huge cost in terms of brand ambassadors unlike Hero Honda and TVS. Prior, Bajaj used to convey the feeling of ‘Indianness’ in its ads. With a punch line ‘Hamara Bajaj’ Bajaj drove into everybody’s hearts and the title song of ‘Naye Bharat Ki Naye Tasveer’ added a great value to its mobikes and scooters.  But recently, Bajaj had changed its brand logo alongwith its punch line i.e. ‘Hamara Bajaj’ got converted to ‘Inspiring Confidence’. The reason for this change as told by the company officials was to keep pace with the new technologies in the fast moving world. Even though it had changed its punch line, it didn’t have much effect on its brand image.  A year back, Bajaj introduced DTSi technology upgrading its always successful PULSAR 150cc and 180cc. Though Bajaj had changed its identity it still dominates for its creativity in ads.

PULSAR 150cc/180cc & DTSi (Definitely Male)  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. The following picture strips conveys the advertisement:

Getting on to his bike, a man gets all While the biker cruises through the set to make a move. As he puts his city, some army men are out for their helmet on, a message appears on the jog. Just before they cross a road, a windshield, 'Partially sunny from zebra crossing forms ahead them and 16:37 hrs.' disappears after them, while the biker waits patiently.

A young lady talks to her beau on the Riding on, he spots a child playing phone, while an image of his forms with a remote controlled toy. In the before her. She switches the phone off next shot the toy turns out to be a and the image disappears, in time for roller coaster, with children inside her to catch a glimpse of the bike. enjoying the ride.

On arriving home, the biker is greeted As he takes off his helmet everything by a robotic dog. turns back to it's usual self. MVO: "Imagine a world as advanced as the new Pulsar DTS-I”

Market Segmentation, Targeting and Positioning Segmentation  Before Pulsar Bajaj was just known for its scooter as its various attempts failed to pose a threat to the Hero Honda’s supremacy.  But Bajaj strategically placed Pulsar in the market against the CBZ in the 150cc segment.  Pulsar proved to be a land mark in reviving the fate and position of Bajaj thereby posing a threat to Hero Honda’s rule in Indian market.  USP of Pulsar wasn’t its performance but its advertising, targeting & positioning. Targeting  Bajaj did all the right moves by targeting the youth and “He-bike”, and making Pulsar an inseparable attribute to Males.  Pulsar was Bajaj’s firstbike without Kawasaki label on it.  The bike’s orientation was towards being a macho and manly bike.

Positioning  Bajaj has positioned Pulsar in the “High Style High Price” segment along with Hero Honda Karizma, Hero Honda CBZ, Bullet.

Current Market Position Currently Bajaj sells around 60,000 units per month. Overwhelmed by the demand Bajaj is now planning to increase the production capacity of its Chakan plant to 90,000 units. The bike is the market leader in the 150 cc segment with a market share of 43 per cent. Expecting a surge in demand, Bajaj has set up sales target of one million units of Pulsar. Most young bikers prefer this because of its sporty looks and technology. The versions of the model currently available in the Indian market include Pulsar 135 LS, Pulsar 150 TDS-i, Pulsar 180 TDS-i and Pulsar 220 TDS- i.& Pulsar 200 NS.

Brand Architecture of Bajaj Pulsar Bajaj Pulsar follows an endorsed branding Strategy. Pulsar still utilizes the brand equity of Bajaj hence the name Bajaj Pulsar. Pulsar comes in 8 different variants which are 135LS, 150, 180, 200, 220, 200F, 220S, 200NS. The Details are given below. Pulsar has now become an umbrella brand for performance bikes produced by Bajaj. Higher and more powerful versions of Pulsar might soon be released in next year probably under the same brand name.

Pulsar Pulsar Pulsar Pulsar Pulsar Pulsar Pulsar Pulsar 135LS 150 180 200 220 DTS- 220F 220S 200NS DTS-i DTS-i DTS-i DTS-i Fi DTS-i DTS-i

Wheelbase 1325 1320 1350 1345 1350 1350 1350 1363 (mm)

Power (PS) 13.5 14.2 17.02 18.00 20.00 21.04 21.04 23.5 Torque (NM) 11.4 12.76 14.22 17.68 19.12 19.12 19.12 18.3

Top Speed 111 150 141 155 (km/h)

My strategy to improve the brand  Introduction of new sub brand for higher power bikes from 300cc-500cc named Pulsar Enigma with the old tagline of Definitely Male  Creating a User group similar to the HOG for the brand Pulsar Enigma  Reintroduction of Pulsar Classic with lesser powerful variants and round headlight with the latest technology at a competitive price range of 50,000-60,000 to please the commuters.

Bibliography

1. www.indiaprwire.com/pressrelease/auto 2. www.2wheelsindia.com/2006/11/new-bajaj-pulsar-200-cc- picsimages 3. www.2wheelsindia.com/2006/12/bajaj-pulsar-200-cc-dtsi 4. www.scribd.com/doc/12751786/Bajaj-Hard-Copy 5. www.indiaprwire.com/pressrelease/auto 6. www.2wheelsindia.com/2006/11/new-bajaj-pulsar-200-cc- picsimages 7. www.2wheelsindia.com/2006/12/bajaj-pulsar-200-cc-dtsi 8. www.scribd.com/doc/12751786/Bajaj-Hard-Copy 9. www.vicky.in/straightfrmtheheart/pulsar-200cc-versus-new- karizma 10. http://marketingpractice.blogspot.in/2009/07/brand- update-pulsar.html 11. http://articles.economictimes.indiatimes.com/2012-07- 04/news/32537392_1_ktm-bajaj-auto-scooter-sales 12. http://articles.economictimes.indiatimes.com/2012-07- 04/news/32537392_1_ktm-bajaj-auto-scooter-sales