Competitive analyses of Bajaj Pulsar

INTRODUCTION TO AUTOMOBILE INDUSTRYIn recent years the automobile industry in India has grown by leaps and bounds. This phenomenal growth rate is owing to two factors mainly, which are better standard of living of the Indian middle class and a subsequent rise in their disposable income which in turn increases the purchasing power adding to the growth of the automobile industry as a whole and the automobile companies in particular. According to a market survey results the sale of passenger cars have increased by three folds than what it used to be five years down the line. Apparently there are 1 million passenger cars already on the Indian roads and the figure only promises to increase as the days go by. Be it small cars, medium cars or luxury cars all have their target customers and all do well in the market so much so that global giants from USA and Japan are entering the Indian automobile sector and working in collaboration with the Indian automobile majors. Tata Motors : Tata Motors in one of the major players of the automobile manufacturing companies in India. It has three different manufacturing units in India they are, Jamshedpur in the East, Pune in the West and Lucknow in the North and all three manufacturing units specialize in the manufacturing of different automobile like Jamshedpur unit produces trucks, engines and axles, the Pune unit caters to the production of Medium Heavy Commercial vehicles and Heavy Commercial Vehicles, utility vehicles and passenger cars and the Lucknow unit produces MCVs, Tata Sumos along with a number of spare parts. Some of the well known cars manufactured by Tata Motors are: Tata Indica, Tata Indigo, Tata Indigo Marina, Tata Sumo and Tata safari. Hindustan Motors Limited: Hindustan Motors Limited is one of India's pioneering companies in manufacturing passenger cars Ambassador, Multi Utility Vehicles (Trekker, Porter, and Pushpak) and the mid segment premium car Mitsubishi lancer. It is because of Hindustan Motors that we see the Mitsubishi Pajero a great sports car on the Indian roads. Ashoke Leyland: Ashoke Leyland is famous for its world class passenger buses, along with that it manufactures transport trucks and imported military vehicles. Ashoke Leyland has definitely left no stone unturned to make its presence felt in the Indian automobile industry by some of its exquisite Engines with power ranging from 40 PS to 200 PS, productions like: Cheetah Bus-III, Panther BS-II Lynx BS-II, Muti-axle Vehicles, Tractors and Ecomet, Diesel and Natural Gas 1 gensets from 15KVA to 250KVA. Ashoke Leyland also holds to its credit of providing the largest logistics vehicles to the Indian army. Maruti Udyog Limited: By far the most trusted and best known car manufacturer in India. Maruti Udyog manufactures a host of SUVs, Sedans and passenger cars. Some of Maruti's most popular cars are: Maruti 800, Alto, Omni, Gypsy, Zen, Wagon R, Versa, Esteem, Baleno and Swift. Bajaj Auto: The Bajaj Group is amongst the top 10 business houses in India and its automobile segment known as Bajaj Auto is the largest two wheeler and 3 wheeler manufacturers in India and one of the biggest in the globe. Some of its popular two wheelers which took the youth completely by surprise are: Pulsar 220DTS and Kawasaki Ninja 250R. INDIAN TWO WHEELER INDUSTRY 2 Indian two -wheeler contributes the largest volumes amongst all the segments in automobile industry.This segment can be broadly categorized into 3 sub-segments viz.; scooters, motorcycles and mopeds. In the last four to five years, the two-wheeler market has witnessed a marked shift towards motorcycles at the expense of scooters. In the rural areas, consumers have come to prefer sturdier bikes to withstand the bad road conditions. In the process the share of motorcycle segment has grown from 48% to 58%, the share of scooters declined drastically from 33% to 25%, while that of mopeds declined by 2% from 19% to 17% during the year . The Euro emission norms effective from April 2000 led to the existing players in the two- stroke segment to install catalytic converters. All the new models are now being replaced by 4-stroke motorcycles. Excise duty on motorcycles has been reduced from 32% to 24%, resulting in price reduction, which has aided in propelling the demand for motorcycles. Within the two-wheeler industry, motorcycle segment grew at a phenomenally high rate of 35% as against a deceleration of 3% for scooters and 27% for mopeds. In fact, motorcycle has been taking away the share of scooters and mopeds in a 4.3 million two-wheeler market and surging ahead with its market share of 68%. The increasing demand from semi-urban and rural segments may have caused this positive shift towards motorcycles. Also, easy credit coupled with low interest rate regime, constrained personal transport, increasing income levels in middle class and higher aspirations of young people all seem to be the factors responsible for such high growth in two-wheelers. The growth in two-wheelers has been robust enough to counter the slowdown and other factors constraining the overall business activity in the country. Also, rationalization of excise duty in the Union Budget 2002-03 had a positive impact on the demand for motorcycles. We also expect the motorcycles to continue to lead the two-wheeler segment like in all other Asian countries. The TCS study rankings are conducted at the motorcycle segment-level to provide comparisons among similar groups of motorcycles. Motorcycles ranking highest in their respective segments for TCS are: Hero Honda CD100 SS (best standard motorcycle segment); Hero Honda Splendor (best executive motorcycle segment); Bajaj Pulsar (best premium motorcycle segment); and Royal Enfield Bullet Electra (best cruiser motorcycle segment). 3 Indian streets are full of people of all age groups riding a two wheeler. Motorized two wheelers are seen as a symbol of status by the populace. Two wheelers in India are the second largest producer and manufacturer of two-wheelers in the world. It stands next only to Japan and China in terms of the number of two-wheelers produced and domestic sales respectively. Indian twowheeler industry has got spectacular growth in the last few years. Indian two-wheeler industry had a small beginning in the early 50's. The Automobile Products of India (API) started manufacturing scooters in the country. Bikes are a major segment of Indian two wheeler industry, the other two being scooters and mopeds. Indian companies are among the largest two-wheeler manufacturers in the world. In the initial stages, the scooter segment was dominated by API; it was later overtaken by Bajaj Auto. Although various government and private enterprises entered the fray for scooters, the only new player that has lasted till today is LML. The motorcycle segment was initially dominated by Enfield 350cc bikes and Escorts 175cc bike. The two-wheeler market was opened to foreign competition in the mid-80s. And the then market leaders - Escorts and Enfield - were caught unaware by the onslaught of the 100cc bikes of the four Indo-Japanese joint ventures. With the availability of fuel efficient low power bikes, demand swelled, resulting in Hero Honda - then the only producer of four stroke bikes (100cc category), gaining a top slot. The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and Hero Honda brought in the first two-stroke and four-stroke engine motorcycles respectively. These two players initially started with assembly of CKD kits, and later on progressed to indigenous manufacturing. In the 90s the major growth for motorcycle segment was brought in by Japanese motorcycles, which grew at a rate of nearly 25% CAGR in the last five years. The industry had a smooth ride in the 50s, 60s and 70s when the Government prohibited new entries and strictly controlled capacity expansion. The industry saw a sudden growth in the 80s. The industry witnessed a steady growth of 14% leading to a peak volume of 1.9mn vehicles in 1990. 4 India, is the second largest producer of two-wheelers in the world. In the last few years, the Indian two-wheeler industry has seen spectacular growth. The country stands next to China and Japan in terms of production and sales respectively. Majority of Indians, especially the youngsters prefer motorbikes rather than cars. Capturing a large share in the two-wheeler industry, bikes and scooters cover a major segment. Bikes are considered to be the favorite among the youth generation, as they help in easy commutation. Large variety of two wheelers are available in the market, known for their latest technology and enhanced mileage. Indian bikes, scooters and mopeds represent style and class for both men and women in India. However, few Indian bike enthusiasts prefer high performance imported bikes. Some of the most popular high-speed bikes are Suzuki Hayabusa, Kawasaki Ninja, Suzuki Zeus, Hero Honda Karizma, Bajaj Pulsar and Honda Unicorn. These super bikes are specially designed for those who have a zeal for speedy drive. The two wheeler industry has been in the country since 1955. It generally consists of three segments Mopeds, Motorcycles and Scooters. Two wheelers have played a pivotal role in the rising growth of the Indian automobile industry. Over the years the domestics sales of two wheelers have grown by huge margins. The two wheeler market has witnessed a sea change over the years. In the past Indians preferred scooters and mopeds but with the rising income levels and standard of living there is a remarkable rise in the demand for motorcycles which along with serving the purpose of a vehicle has become a style statement for the youth of the country. INDIAN MOTORCYCLE INDUSTRY (DOMESTIC+EXPORTS) YEAR YR2006 YR2007 MOTORCYCLES SALES VOLUMES 6201389 7091545 5 YR2008 YR2009 YR2010 6544649 6805366 8446591 9 0 0 00 00 8 0 0 00 00 7 0 0 00 00 6 0 0 00 00 5 0 0 00 00 4 0 0 00 00 3 0 0 00 00 2 0 0 00 00 1 0 0 00 00 0 yr20 06 yr2 07 yr20 0 08 yr20 9 yr20 0 10 m otorcycles volum es 6 Demand Drivers The demand for two-wheelers has been influenced by a number of factors over the past five years. The key demand drivers for the growth of the two-wheeler industry are as follows: ▪ Inadequate public transportation system, especially in the semi-urban and rural areas; ▪ Increased availability of cheap consumer financing in the past 3-4 years; ▪ Increasing availability of fuel-efficient and low-maintenance models; ▪ Increasing urbanisation, which creates a need for personal transportation; ▪ Changes in the demographic profile; ▪ Difference between two-wheeler and passenger car prices, which makes two-wheelers the entry level vehicle; ▪ Steady increase in per capita income over the past five years; and ▪ Increasing number of models with different features to satisfy diverse consumer needs. TWO WHEELER MANUFACTURERS IN INDIA HERO HONDA MOTORS LTD (HHML ) Hero Honda Motors Limited was established in 1984, as a joint venture between India's Hero Group (world's largest bicycle manufacturers) and Japan's Honda Motor Company. And created the world's single largest two wheeler company and also one of the most successful joint ventures worldwide. During the 80s, Hero Honda became the first company in India. Over 19 million Hero Honda two wheelers running on Indian roads today. Hero Honda CD Dawn Hero Honda CD Deluxe Hero Honda Glamour 7 Hero Honda Glamour-Fi Hero Honda Karizma Hero Honda Passion Plus Hero Honda Super Splendor Hero Honda Splendor NXG Hero Honda CBZ X-Treme BAJAJ AUTO LTD COMPANY : Bajaj is the first Indian two wheeler automobile company in the market since 1945 with the name M/s Bacharj trading corporation private limited. In 1959 M/s Bacharj trading corporation private limited change its name as Bajaj Auto Ltd. Bajaj Auto obtains license from the Government of India to manufacture two- and three-wheelers vehicles in 1959. Bajaj Avenger Bajaj CT 100 Bajaj Platina Bajaj Discover DTSi Bajaj Pulsar DTSi Bajaj Wave Bajaj Wind 125 Sonic DTSi 8 TVS MOTOR COMPANY : TVS Motors is the third largest company in the two-wheeler industry with a market share of 16%. Infect, it is the only Indian company without a foreign collaboration in the two-wheeler industry. When the company opted out of the collaboration with Suzuki in 2002, many believed that TVS was headed towards extinction. But the company proved the doomsayers wrong and came out with a very successful `TVS Victor'. TVS Motors Ltd. originally incorporated in 1982 to manufacture two-wheelers in collaboration with Suzuki Motors of Japan, TVS was one of the leaders in two-wheeler industry. TVS Apache TVS Centra TVS Fiero TVS Star TVS Victor Yamaha Motor India: Yamaha Motor Corporation is the auto mobile company of Japan (1953) which works in India since 1955 and providing latest technology in India from last two decades. Yamaha Motor India was incorporated in august 2001 as a 100% subsidiary of Yamaha motor corporation, Japan Yamaha CruxS Yamaha G5 9 Yamaha Gladiator Yamaha FZ 16 Yamaha R15 Yamaha Fazer HONDA MOTOR: Honda motors of Japan is not a new name in the two wheeler scenario in the country, they were in a tie up with the Firodias owned Kinetic group. However in the late 90s they parted ways after problems arose over issues like introduction of new models, advertising expenditure, marketing strategies and other related issues. In the mid 80 Honda motors of Japan joined hands with the largest bicycle maker of India the Hero cycles to create Hero Honda which in a couple of decades or so have gone on to become the single largest motorcycle company in the world. Though Honda has come on its own on the Indian market yet it will be providing technological support to Hero Honda for the next ten years. Thus presenting a unique situation in which the company will be in direct competition with the company which it has been associated for nearly two decades. Honda Motorcycles and Scooters India limited, a 100% subsidiary of Honda motor company Japan eventually entered the Indian market with Honda Unicorn in 2004. Honda Unicorn Honda shine Honda activa MARKET SHARE OF TWO WHEELER AUTOMOBILE INDUSTRY IN 2010-11 10 Market share of tw o w heeler automobile sector Hero Honda 35.60% 27.50% Bajaj M otors T VS M otors Yam aha M otors Honda M otors O thers 9.50% 4% 7% 16% 11 INTRODUCTION TO BAJAJ GROUP The Bajaj Group is one of the leading business houses of India. Its business interests span host of industries such as automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance. The Bajaj brand is well-known in over a dozen countries in Europe, South America, the US and Asia. The Bajaj Group comprises 27 companies and its flagship company Bajaj Auto is ranked as the world's fourth largest twoand threewheeler manufacturer. Bajaj Group was founded in 1926, at the height of India's movement for independence from the British. Jamnalal Bajaj, founder of the group, was a close associate of Mahatma Gandhi. Jamnalal Bajaj's close involvement in the freedom movement did not leave him with much time for his business. In 1942, his son Kamalnayan Bajaj took charge of the business. He consolidated the group and diversified into various manufacturing activities. Rahul Bajaj, the present Chairman and Managing Director of the group took reins of the business in 1965. Under his leadership the group has achieved new heights and ranks among the top 10 business houses in India. BAJAJ GROUP COMPANIES AND THEIR BUSINESS INTERESTS: • • • • • • Bajaj Auto Ltd: Manufacturers of Scooters, Motorcycles and Three-wheeler vehicles and spare parts thereof. Bajaj Electricals Ltd.: Manufacturers of electric fans, highmasts, lattice closed towers and poles, etc. and marketing of electrical goods such as general lighting service lamps, special lamps, compact fluorescent lamps, fluorescent tubes, luminaries, fans and electrical & non-electrical appliances. Mukand Ltd.: Manufacturers of stainless, alloy and special steels including carbon and alloy steels, free cutting steels, semi-free cutting steels, leaded free cutting steels, cold heading quality steels, spring steels including vanadium steels, high carbon steels; electrode quality steels, boiler quality steels; wire rods,wires, castings, machine tools; E.O.T. and other cranes; bulk material handling equipment for steel and other industries; specialist in major turnkey projects,highway construction and international trading; real estate development. Bajaj Hindusthan Ltd.: Manufacturers of white crystal sugar and industrial alcohol. Maharashtra Scooters Ltd.: Manufactures of scooters. Bajaj Auto Finance Ltd.: Deals in financial services including hire purchase financing & leasing. 12 • • • • • • • • • • • • • • • • • • • • • Hercules Hoists Ltd.: Manufacturers of 'INDEF' brand materials handling equipments such as triple spur gear chain pulley blocks, chain electric hoists, wire rope, electric hoists, travelling trolleys, EOT / HOT / stores stacker cranes, roll-out racks. Bajaj Sevashram Pvt Ltd.: Involved in investment activities. Hind Lamps Ltd.: Manufacturers of GLS, fluorescent, miniature lamps and major components such as glass shells, miniature and aluminium caps, lead glass, etc. Bajaj Ventures Ltd.: Involved in manufacturing and trading of power tools and manufacturing of houseware and parts thereof. Bajaj International Pvt. Ltd.: Exporters of electrical fans, GLS lamps, fluorescent tubes, lighting fittings, luminaries, household appliances and hoists. Hind Musafir Agency Pvt. Ltd.: Travel Agency. Mukand International Ltd.: Involved in trading of metals, steels and ferro alloys. Mukand Engineers Ltd.: Construction, fabrication and erection of industrial and infrastructural projects and infotech business. Mukand Global Finance Ltd.: Financial services: fund based activities - loans and investments, consumer finance, corporate finance. Fee based activities - investment banking, corporate advisory services. Bachhraj Factories Pvt. Ltd.: Ginning and pressing of cotton bales at Wardha. Bajaj Consumer Care Ltd.: Manufacturing and trading of ayurvedic medicines, hair oil, tooth powder, Shampoos, Pure coconut oil. Bajaj Auto Holdings Ltd.: Investment company. Jamnalal Sons Pvt. Ltd.: Investment and finance company. Bachhraj & Company Pvt. Ltd.: Investment company. Jeewan Ltd.: Investment company. The Hindustan Housing Co. Ltd.: Services company Baroda Industries Pvt Ltd.: Investment company Stainless India Ltd.: Manufacturers of stainless steel billets and flats etc. Bombay Forging Ltd.: Manufacturers of carbon, alloy and stainless steel closed die forgings for automobile and general engineering applications. Bajaj Allianz General Insurance Company Ltd.: General Insurance Business. Bajaj Allianz Life Insurance Company Ltd.: Life Insurance Business. 13 BAJAJ AUTO LTD. Bajaj Auto is a major Indian vehicle manufacturer started by a Rajasthani merchant. It is based in Pune, Maharashtra, with plants in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttaranchal. The oldest plant at Akurdi (Pune) now houses the R&D centre Ahead. Bajaj Auto makes and exports automobilesscooters, motorcycles and the auto rickshaw. Over the last decade, the company has successfully changed its image from a scooter manufacturer to a two wheeler manufacturer. Its product range encompasses scooterettes, scooters and motorcycles. Its real growth in numbers has come in the last four years after successful introduction of a few models in the motorcycle segment. The company is headed by Rahul Bajaj who is worth more than US$1.5 billion. Bajaj Auto came into existence on 29 November 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 near Aurangabad. In 1986, it managed to produce and sell 500,000 vehicles in a single financial year. PRODUCTS OF BAJAJ AUTO LTD. Scooters • • Bajaj Kristal DTSi Bajaj activa Motorcycles • • • • • • Bajaj Platina 100cc Bajaj Platina 125 DTS-Si Bajaj Discover 135 DTS-i Bajaj XCD 125 DTS-Si Bajaj XCD 135 DTS-Si Bajaj Pulsar 135 DTSi 14 • • • • • • Bajaj Pulsar 150 DTSi Bajaj Pulsar 180 DTSi Bajaj Pulsar 200 DTSi Bajaj Pulsar 220 DTS-Fi Bajaj Pulsar 220 DTSi Bajaj Avenger 220 DTS-i Spinoffs and acquisitions The demerger of Bajaj Auto Ltd into three separate corporate entities—Bajaj Finserv Ltd (BFL), Bajaj Auto Ltd (BAL), and Bajaj Holdings and Investment Ltd (BHIL)—was completed with the shares listing on 26 May 2008. In November 2007, Bajaj Auto acquired 14.5% stake in KTM Power Sports AG (holding company of KTM Sportmotocycles AG). The two companies have signed a cooperation deal, by which KTM will provide the know-how for joint development of the water-cooled four-stroke 125 and 250 cc engines, and Bajaj will take over the distribution of KTM products in India and some other Southeast Asian nations. Bajaj said it is open to taking a majority stake in KTM and is also looking at other takeover opportunities. On 8 January 2008, Managing Director Rajiv Bajaj confirmed the collaboration and announced his intention to gradually increase Bajaj's stake in KTM to 25%. 15 SALES PERFORMANCE AND MARKET GROWTH OF BAJAJ AUTO LTD. According to the company report.the two wheeler segment was led by the sportier models of motorcycles like the pulsar and discover with a 35% increase seen in their sales figure. March 2011 alone showed a market jump in sales of about 12% likely caused bi the usual speculation of increasing prices at the close of the fiscal month. 2010-11 sales figures for the motorcycle segment were dominated by the more popular models mentioned. A clear sign that ‘the fastest Indian’ is getting faster. 2010-11 (or FY2011) has been an excellent year for the company, witnessing new highs in sales (numbers), exports, operating income and profits - surpassing all earlier set records. Table : Bajaj Auto’s Sales of Motorcycles (Domestic+Exports) Year BAL’s market share 2006 6,200,749 18.8% 20,29176 31.9% 30.8% 2007 7,099,551 14.5% 23,99966 24.4% 33.5% 2008 6,544,482 -7.8% 21,61095 -10.1% 32.7% 2009 6,806,114 4.0% 19,19825 -10.8% 28.0% 2010 8,444,243 24.1% 25,11643 31.4% 29.7% 2011 10,500,073 24.3% 33,87070 35.1% 32.3% Here ‘Market’ refers to domestic plus export sale of motorcycles of all manufacturers in India. 40.00% 30.00% 20.00% 10.00% 0.00% -10.00% -20.00% Ma et g rk rowth B AL’sg rowth yr2006 yr2007 yr2008 yr2009 yr2010 yr2011 Market(nos.) Market growth BAL(nos.) BAL’s growth The Company sold almost 3.39 million motorcycles in India and elsewhere. In the process, Bajaj Auto grew its sales by 35.1% – or 10.8 percentage points above the market as a whole. The reason why Bajaj Auto has grown faster than the market has much to do with its brands and products getting in close synch with the preference of consumers, both in India and the global markets where it operates. 16 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 yr 20 06 yr 20 07 yr 20 08 yr 20 09 yr 20 10 yr 20 11 Ma rket(nos.) B AL(nos .) Chart A. sales (in units) FY Fy2006 fy2007 fy2008 fy2009 fy2010 fy2011 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Motorcycles sales 20,29176 23,99966 21,61095 19,19825 25,11643 33,87070 Total sales 22,81230 27,21824 24,51407 21,94154 28,52580 38,23954 Motorcycles s ales Total s ales F y2006 fy2007 fy2008 fy2009 fy2010 fy2011 As in the previous year, Bajaj Auto Limited did much better than the industry as a whole. In FY2011, it sold over 3.38 million motorcycles; grew volumes by more than 35%; increased market shares. 17 Chart B. Net Sales and Operating Income, Net Operating Profit and Profit after tax(Rs. In crore) FY fy2006 fy2007 fy2008 fy2009 fy2010 fy2011 Net sales and operating income 7668 952o 9048 8810 11921 16609 Net operating profit 1207 1284 1114 1052 2451 3340 PAT 1102 1238 750 650 1704 3200 18 THE KEY SPORTS BIKE OF BAJAJ AUTO Bajaj Pulsar DTS-I Manufacturer Bajaj Auto Production 2001-present standard Class 135/150/180/220 cc Air-cooled, Oil Cooled, four-stroke cycle,2Engine 4valve,SOHC, single piston, kick start / electric start 21.04 hp (15.69 kW) @ 8,500 rpm Power (220 cc version) Torque 19.16 N·m (14.13 lb·ft) @ 6,500 rpm Transmission 5-Gear Front: Telescopic fork, 135 mm travel Suspension Rear: Nitrox gas assisted shock Absorbers, 90-115mm travel. Front: 240/260 mm (disc) Brakes Rear: 130/230 mm (Drum/Disc) Tires 17" tube/tubeless Wheelbase 1320-1345 mm 120-149 kg (dry) Weight 122-152 kg (wet) Fuel capacity 8-15 lt. Bajaj Pulsar is a motorcycle brand owned by Bajaj Auto in India. The two wheeler was developed by the product engineering division of Bajaj Auto in association with motorcycle designer Glynn Kerr Tokyo R&D. 19 Currently there are four variants available -with engine capacities of 135 cc, 150 cc, 180 cc and 220 cc. Previously it was also offered with a 200cc DTS-i oil cooled engine, which now has been discontinued. Pulsar is the leader in the 150 cc segment in India with a market share of 43%. Evolution of the pulsar year by year: When Bajaj Pulsar made its debut in the Indian market in the year 2001, two variations of the bike, in the form of 150 cc and 180 cc engines, were offered to the potential customers. The bike offered 12 bhp of maximum power. Disc brakes as a feature in Pulsar were offered for the first time in the Indian motorcycle market. The second generation of Pulsar was launched in the Indian market in the year 2003. The latest version of Pulsar incorporated the DTSi technology. DTSi stands for Digital Twin Spark Ignition. This technology was developed by Bajaj Auto and it holds an Indian patent for the same. With the integration of DTSi technology into the Pulsar, the power rating was improved by 1 bhp and also the fuel efficiency of bike was enhanced. In 2005, Bajaj Auto launched yet another upgraded version of Pulsar. This version of bike was offered with a 17 inch alloy wheels as a standard option for the first time. Also, the power rating in both the 150 cc as well as 180 cc versions of the bike was improved. In 2007, Bajaj launched the Pulsar 220 DTS-Fi and 220 DTS-I versions of bikes. The 220 DTSFi model comprises of features such as the former featuring fuel injection and oil cooled engines, a digital dash, and modern styling. Features like fuel injections, rear disc brake and clip on handle bars were introduced for the first time in the Indian market. In 2009, a carbureted version of Pulsar 220 and the fourth upgraded versions of Pulsar 150 and Pulsar 180 were launched in market. 2001 The original Pulsar came with a 150 cc air-cooled, single-cylinder, petrol, spark-ignited fourstroke engine which made 12 bhp of maximum power. They featured a single spark plug to ignite the air-fuel mixture fed from a carburetor, simple spring shock absorbers, round headlamp dome and 1,265&mm wheelbase. Disc brakes as standard equipment was a novelty in Indian motorcycles of the early 2000s. Other standard features were parking lights and an aircraft-type fuel tank lid. The 180 cc version made 15 bhp of maximum power and came with a twin-tone horn, which was optional equipment on the 150 cc version. Electric Start (ES) was offered as standard feature in 180cc model and optional on 150cc model. 2003 20 2003 Model Bajaj pulsar 150cc The second generation Pulsars featured Bajaj Auto's newly developed DTSi technology, which increased the power rating of both versions by 1 bhp (0.75 kW) each and also increased fuel economy. This model also introduce a new headlamp assembly, 1,320 mm wheelbase,and standard twin-tone horn and trip meter. 2005 In 2005, Bajaj launched another upgrade of the Pulsar. The bike was offered with 17-inch (430 mm) alloy wheels as standard option, and the stance was also lowered by about 12 mm. It was the first time any bike maker in India had offered 17-inch (430 mm) profile wheels at the rear. The fuel tank now had a capacity of only 15 litres. The power output was now further increased to 13.5 bhp (10.1 kW) @ 8500 rpm for the 150 while it increased to 16.5 bhp (12.3 kW) @ 8500 rpm for the 180.The rear shock absorbers were now gas-filled Nitrox absorbers. The LCD screen introduced with the UG-3 version of the Pulsar 2006 Bajaj introduced another version of Pulsar. New features included: pilot lamps separated from the main headlamp, turn indicators with clear lenses and amber bulb, self-cancelling turn indicator switch, flush LCD screen with digital read-out of key vehicle data, non-contact speed sensor, non-contact backlit switches, twin-stripe LED tail-light assembly and side panels altered 21 for a sharp, tapering-towards-the-rear look. The engine had increased torque availability, reduced vibration and improved gear shift feel. They also introduced the 1 down 4 up variant of the gear box for the first time on sub-150 cc variants. The new headlamp design introduced for the entire Pulsar series in 2006 2007 In July 2007, Bajaj began selling the Bajaj Pulsar 220 DTS-Fi and Pulsar 200 DTS-i, the former featuring fuel injection and oil cooled engines, a digital dash, and modern styling. This bike has some features which are totally new to the Indian market, like the fuel injection itself, rear disc brake and clip-on handlebars (the first two only available in the 220 model). 2008 The new Pulsar has many firsts to its credit. It comes equipped with an Oil cooler, which helps control engine oil temperatures at sustained high speeds and rpms, thus ensuring more stable engine oil viscosity. The 200cc DTS-I engine generates 18 Ps of raw pulsating power to provide riding excitement to performance hungry bikers. This makes the Pulsar 200 the most sporty and stylish powerhouse on two wheels to pace the Indian roads. It’s also the first bike in India to feature both front and rear tubeless tires, which besides offering superior stability are safer than conventional tube types and in sync with the offerings abroad for similar applications. The rear tire is the broadest in its category to ensure better road grip and stability. The new digital console is an advanced version of the latest Pulsar family. Apart from the Digital Odometer, Digital Speedo Meter, Digital Fuel Gauge and two Digital Trip Meters, the console on the 200 cc Pulsar DTS-I has indicators for Air filter condition, Engine temperature, Battery voltage and Oil level, all of which contribute to enhancing rider info for trouble-free riding. 22 2009 Bajaj released the UG IV (fourth upgrade) versions of the Pulsar 150 and Pulsar 180 in April 2009. The upgrades for the Pulsar 150 included an all-black theme, tank scoops similar to those on the Pulsar 200, a 3D Pulsar logo, and a changed electrical system (full DC). Power also increased from 13.5 bhp to 14.09 bhp (at 8,500 rpm). The Pulsar 180 received upgrades like wider tyres, split seat, tank scoops, clip-on handlebars, 3D Pulsar logo, swing arm suspension borrowed from Pulsar 200, and thicker forks. The power was increased to 17 PS.Bajaj launched a carbureted version of Pulsar 220 on June 2009, tagging it as "the fastest bike in India". It also discontinued the production of Pulsar 200 on July 2009. 2010 Bajaj released the UG 4.5 (fifth upgrade) versions of the Pulsar 150. The upgrades for the Pulsar 150 included an clip-on handlebars like those in Pulsar 135LS. Power also increased from 14.09 bhp to 15.06 bhp (at 9,000 rpm). A naked version of Pulsar 220 is also launched, named as Pulsar 220S(Street Fighter) which retains everything from Pulsar 220 except the front fairing. Front fairing is similar to Pulsar 180/150. Old Pulsar 220 is now named as Pulsar 220F. 23 PULSAR SALES VOLUME FROM APRIL 10 TO APRIL 11(IN UNITS) Month Apr 10 May 10 Jun 10 July 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 Pulsar sales volume (in units) 24233 35328 41663 38194 39214 52022 49437 44349 38013 65002 55022 63353 61687 70000 60000 50000 40000 30000 20000 10000 0 P ulsar sales volum e 10-Apr 10-May 10-Jun 10-Jul 10-Aug 10-S ep 10-O ct 10-Nov 10-Dec 11-Jan 11-F eb 11-Mar 11-Apr 24 AWARDS ACHIEVED BY PULSAR The different variants of Pulsar have won the following awards. 2008 Bike India awards—Bike of the year (up to 250 cc) Indian Motorcycle of the Year 2007 CNBC-TV18 Autocar Auto Awards—Bike of the Year 2003  BBC World Wheels Award—Viewers' Choice Two Wheeler of Year     2002 BBC World Wheels Award—Best Two Wheeler between Rs 55,000 to Rs 70,000 BBC World Wheels Award—Best Two Wheeler between Rs 45,000 to Rs 50,000 NFO Automotive—Motorcycle Total Customer Satisfaction Study ICICI Bank OVERDRIVE Awards—Bike of the Year  OVERDRIVE Awards—Most Exciting Bike of the Year 25 PROS AND CONS OF BAJAJ PULSAR’S VARIANTS BAJAJ PULSAR 135CC PROS & CONS Pros:The look of the bike is sharp and sleek muscular body with adequate weight of 122 kg. The bike has excellent handling and stability and is also very fuel efficient. Cons:The rear tyre of the bike is generally not liked by everybody, but you have the option to remove it. The bike is only available in two shades. BAJAJ PULSAR 150CC DTSI PROS & CONS Pros:Stylish look and aerodynamic body graphics, Fuel efficiency, great performer, etc 26 Cons:Silencer performance is very poor, Maintenance problem persists, rusting of body parts, etc. BAJAJ PULSAR 180CC DTSI PROS & CONS PROS:Enhanced features, beautiful and stylish cockpit and electric items, good mileage and feel of sports bike, etc. Cons:Shifting of gears, same design as that of the base version, main stand is placed very low which creates problems, its too heavy. BAJAJ PULSAR 220 DTSI PROS & CONS Pros Robust and aggressive looks, pick up and mileage, etc Cons Engine sound is not very pleasant, after sales service, unreliability, etc. SWOT MATRIX OF BAJAJ PULSAR 27 STRENGTHS: • • • • • Very popular brand positioning (DEFINITELY MALE) which helped quite a lot in popularizing the brand The styling of the bike was a novelty and was in line with its macho image. Performance – wise, it was much better than other bikes in the same segment. It had an impressive mileage for a 150 cc bike, about 45 plus, which was much more than other bikes of the segment like CBZ etc. Since Bajaj was already in the scooter market beforehand, it could use those same resources for the distribution, sales and service for Bajaj pulsar bikes. Bajaj made after sales a priority in marketing. • • • From 150cc it has diversified into varied categories like 180cc, 200cc, 220cc, air-cooled and water-cooled. Thus it has a wide range to fit every pocket. Bajaj has constantly worked on the mileage taking it as an important part and has improved it in the latest bikes. There is a constant up gradation of the model going on every time. New features like Digital speedometer, LED tail lights etc were introduced by Bajaj pulsar first of all in the Indian market. WEAKNESS: • One of the major weaknesses of Bajaj pulsar was that it was an untested product. Before this Bajaj had never come out with a product in this segment and so there was a lot of customer apprehension about the product initially. • • There are still some technical problems in the model, which are not solved like the Gear Box etc. There is not much of a product differentiation among the various models of bajaj pulsar as they have similar styling. OPPORTUNITIES: 28 • There was a major opportunity of export for Bajaj pulsar, since that was the time when the export markets were quite open and there was a large demand for Indian products in the foreign markets. • To enter the higher end bike market, which is a high margin business. It is a very underdeveloped market in India; surely there would be a demand for Bajaj Pulsar products there. • • Though Bajaj is the largest bike exporter in India, it has to still enter many untested markets. Bajaj has an auto-financing arm of its own, which it can use to leverage its bike sales. E.g. by providing easy installments and other schemes. THREATS: • • The major threat for Bajaj Pulsar in the product category was CBZ, a product from the Hero-Honda stable, which was an already established brand in itself. Bajaj as a brand had an image of producing rustic, Indian, old scooters. This brand image could work against it when it was venturing into selling bikes which were more internationally styled. • Yamaha and Honda were also planning to come up with similar products very soon. Cheap Chinese imports and other copycats in foreign markets trying to make a dent on its market. • There is much more competition in the market for every segment that Pulsar is in, than it was in 2001. Other Bike manufacturers have also come up with very good products. COMPETITOR ANALYSIS, THEIR ACTIVITIES, STATUS AND STRATEGIES Pulsar has been in the market for about 7 years now. It has revolutionized the Indian bike market with its innovative offerings both in terms of product quality as well as style. Consumers now have the choice of bikes which are high both on quality i.e. mileage and performance as well as style. Pulsar commands about 50% of the market share in the 150cc plus category. This figure 29 was higher initially, but with increased competition from other bike manufacturers in the same category; its market share has decreased. Here on we will try to identify and analyze the status, strategies and activities of major competitors of Pulsar to understand its competitive scenario. Some of the major competitors of Bajaj with bikes in the 150cc + category which are a competition to Pulsar are  Hero Honda  TVS  Yamaha  Foreign Competitors HERO HONDA & HONDA MOTORS Hero Honda is the largest Bike manufacturer in the world. In India also, it leads in the overall bike market, but in the 150cc plus category its models are lagging Bajaj Pulsar in the overall market share. Bajaj Pulsar’s main competitors from the Hero Honda stable are CBZ, Achiever, Hunk and Karizma. Hunk was an established and famous brand when Pulsar made its entry into the market. Though hunk had a better engine; Pulsar forged ahead with its styling, performance and innovative features. Demand for hunk began to gradually decrease as it was mainly positioned as a sports bike whereas Pulsar was not enclos. ed in any such bracket. It was positioned as a bike for Extreme adventure lovers with advertisements on the similar lines. Though this bike helped in improving sales, but it was not as well received as the original one, with complaints about its looks. 30 HERO-HONDA KARIZMA KARIZMA has been a major competitor for Pulsar in the 180cc, 200cc category. It is a sports bike with a niche market. Hero Honda has adopted a different marketing strategy to promote it. Since it is a bike primarily targeted for the youth, they used mediums, which were frequented by youth. They have Hrithik Roshan as their brand ambassador. Hero Honda constantly sponsors adventure rallies through Karizma brand name. The popular TV show MTV Roadies sponsored by Karizma has elevated its status as a brand and increased its popularity. A separate site for the Bike with forums for consumers to discuss the bike has been an innovative marketing strategy. Hero Honda has recently come up with another bike Hero Honda Hunk in the 150cc category. It is being positioned as a bike with macho looks and for the hunks. Honda through its separate venture has come up with many bikes. It has Unicorn in its stable, which is a significant competitor of Pulsar. It has found many supporters due to its better handling and gearshifts than Pulsar. Honda has always positioned it as its main bike. Other Bikes from the Hero Honda stable have not been able to create a sufficient impact on the market. The major advantage with Hero Honda is its wide service and dealership network of about 3000 outlets throughout the country, which is larger than all its competitors. Hero Honda also has a CRM initiative called “Passport” which is a major success having a membership of about 3 million customers. Through it the customers get a series of discounts and benefits for a period of 3 years. Hero Honda lately has been on a massive drive of penetrating the rural market 31 through its “Har Gaon Har Aangan” initiative. Thus Bajaj has to take note of this fact and try to expand more into the rural market to counter the competition from Hero – Honda. TVS MOTORS The Indian automotive industry is increasingly getting competitive and the two-wheeler segment within it is also facing its own share of challenges. As part of the industry, TVS Motors, the country’s third largest manufacturer of two-wheelers, is also giving a stiff competition to Bajaj products. TVS Group of companies engaged in the manufacturing of almost all kinds of automotive components, two wheelers and a few other industrial products. They are also into the financial services sector. The turnover of the entire group was close to $2 billion in 2003. The company has launched its latest bike Flame and has got some big plans up its sleeves. The year 2007-08 was a milestone for TVS Motor as it is likely to achieve sales one million motorcycles. Last year, the company sold a little over 800,000 motorcycles. There was a Digital Twin Spark Plug Ignition [DTS-i] technology debate between the twowheeler manufacturing giants Bajaj Auto and TVS Motors. The patent war reached the Supreme Court with Bajaj seeking a restrain on the manufacturing and selling of TVS’ two-wheeler ‘Flame’. Bajaj has sought a revocation of the Madras High Court order allowing TVS to go ahead with receiving bookings for and selling its new motorcycle. TVS motorcycles product segment includes: • • • • • • • • • TVS MAX 100 TVS Suzuki Samurai TVS Fiero TVS Star TVS Star City TVS Star Sport TVS Centra TVS Apache TVS Flame 32 Strategies to stay competitive: 1. Constant Quality Improvement : Significant efforts have gone silently into quality improvement. Today, Star has the best warranty record in the Indian two-wheeler industry. It took at least two products worth of efforts to get TVS quality up to that standard, where it is equal or better than the best. The new offerings are targeted at different segments of the two- and three-wheeler customers with emphasis on superior technology, styling and engine capabilities 2. Thrust on Research and development: TVS Motor Company has decided to double its R&D (research and development) spending this year. Over 300 personnel are deployed for product development. The company will strive to set out a new benchmark in this area. There was a discontinuity and break in cadence of its products. After Victor it came with Scooty Pep which has done well; Apache which has got a good record in the market; and then Star. Now, it has got Flame, which will be a worthy rival to Pulsar. 3. Product for every pocket : TVS Motors has just launched seven products in a first-of-its-kind rollout in the Indian automobile industry. The seven products include a completely new 125 cc motorcycle FLAME, an all new 110 cc Star City, an Apache variant with fuel injection technology and the electric variant of a Scooty. The new offerings are targeted at different segments of the two- and three-wheeler customers with emphasis on superior technology, styling and engine capabilities. YAMAHA MOTORS Yamaha was one of the first foreign companies to enter into India. It began operations with a JV with Escorts India. By the turn of the century, the JV between Escorts and Yamaha broke off. With the relaxation of FDI norms to 100%, Yamaha was in Indian markets as a fully owned subsidiary of Yamaha Motors, Japan. This was advantageous in many ways. Firstly Yamaha had 33 now full control of its operations, it could decide the strategies. Secondly it could bring worldclass technologies from Japan to India, which could act as its competitive advantage. From 2002 onwards Yamaha started a process of rebuilding by concentrating more on 100cc plus deluxe category of motorcycles with bikes like Libero. These set of two wheelers come with international style, cutting edge technology, fuel efficiency, power delivery, and stylized graphics. The present stable of Yamaha includes bikes like Crux (100cc), Alba (106cc) and Gladiator (125cc). As far as the 150 cc segment is concerned, Yamaha was not much of a competitor for Bajaj Pulsar until now. It has some bikes in the premium category above 500cc but then they too have their niche customers, which would not clash with those of pulsar. Gladiator though not in the same category as Pulsar, has been a competitor for Pulsar. The main factors that work in favor of Gladiator is the huge price difference of about 12,000 between Gladiator and Pulsar, the higher mileage of Gladiator and durability. The company is riding on the popularity of Bollywood heartthrob John Abraham for marketing its two wheelers. These campaigns focus on Yamaha as a brand for the youth with emphasis on style, performance and technology. These campaigns have been successful in denting the share of Pulsar a little. But the year 2008 appears to be a bright one for Yamaha. It is coming out with two bikes in the 150cc plus category, which have been very popular abroad. They are Yamaha R15 (150cc, water cooled) and FZ (150cc, air cooled). R15 has technology from R1 bikes and has six-speed transmission and has received excellent initial reviews. FZ is a toned down version of the original FZ 1000cc bikes. Both these bikes have been predicted by Industry experts to be a rage in their initial period and may eat into the share of Pulsar in the market. Yamaha is planning to improve on its weak-point – no. of service centers. It is going to increase it to 500 from its present 350. It also plans to open about 10 direct shops in main metros for its new offerings and is coming out with aggressive marketing strategies for their launch. 34 FOREIGN COMPETITORS Foreign players have been an integral part of the Indian auto market since long. It was the foreign players’ expertise that brought cutting edge technology into motorbikes and scooters went out for a toss. Post liberalization some of them have come out with bikes form their own stables. Also we have bike manufacturers in china who are a major threat to Indian bike makers. Chinese manufacturers produce at very cost and sell the products at low margins. They concentrate on production rather than marketing their products. It is very evident from their strategy that they target markets like India, Africa and Latin America and not developed markets like US or Europe. With increasing globalization and reduction of trade barriers they will be a major threat. Also there have been incidents when the Chinese have been found not to be very keen on conforming to IPRs or patents etc., a blatant case being a Chinese duplicate of Bajaj pulsar, called GULSAR and sold in the South American market. It may well very easily gnaw into Indian bike producers’ share. Also with the Indian economy growing at a much bigger rate then the developed countries markets and with a sixth of world population, which is growing richer by the day, it is evident that the market of the future is here. As a result all big bike manufacturers will make for the Indian market in the near future. CHINA MADE GULSAR One point of note is that there is no minimum investment limit for foreign companies in India and as a result the threat from the Chinese producers all but intensifies. Japanese producers like KTM and Kawasaki (which has prior experience of the Indian motorcycle market) are coming out with their higher end products once again. Also it is rumored that Harley Davidson and BMW intend to start exporting bikes to India. This is possibly an attempt to gauge the size of the market given that the import duty on bikes is a staggering 60%. The major threats posed are from 35 the high cost-high performance bikes and the low cost-low mileage bikes (from china etc.). Let’s see how Bajaj might be planning to counter the twin threats. Threat 1- High cost-performance segment: This segment can be expected to be a niche segment in the near future. However Bajaj is already doing R&D on coming out with 350cc and 500cc pulsars. Also with local manufacturing capability and given the time frame Bajaj pulsar should be able to compete against them successfully given they come out with consistent products. One more thing we need to keep in mind is that business India is not without its quirks, Yamaha when it was expanding worldwide suffered losses in the Indian market and now was on the verge of closing operations few months back. Threat 2 - Low cost-low mileage-non-performance segment: With increasing fuel costs the consumers are getting more and more mileage conscious, also initial cost and maintenance cost are major factors that influence buyer’s choice in India. We can safely assume that Bajaj Pulsar is going to find it hard to ward off competition from this sector in near future. As such Bajaj needs to constantly innovate on its lower end product 150cc pulsar, Increase its mileage and probably try to cut costs by introducing economies of scale. COMPARATIVE ANALYSIS OF BAJAJ PULSAR WITH ITS COMPETITORS Item by item comparison of two or more comparable alternatives, processes, products, qualifications, sets of data, systems, etc. In accounting, for example, changes in a financial statement's items over several accounting periods may be presented together to detect the emerging trends in the firm's operations and results. 36 COMPARATIVE ANALYSIS OF BAJAJ PULSAR WITH HERO HONDA HUNK (Based on features, performance, specifications and on marketing strategies adopted by the company) Bajaj Pulsar v/s Hero Honda Hunk Bajaj Pulsar Pulsar has been a major hit in the market; it comes in fourvariants: Pulsar 150 DTSi, Pulsar 180 DTSi, Pulsar 200 DTSi & Pulsar 220 DTSi. Bajaj Pulsar DTSi comes with a throttle actuated ignition control system that works in conjunction with a chip-controlled digital capacitor discharge ignition (CDI) system for accurate ignition timing under all conditions. The dual spark design accelerates and evens out flame propagation, which results in more efficient combustion and hence leads to better performance. Pulsar's 150cc engine delivers a power output of 13.5bhp at 8000 rpm. It has wonderful pickup with 0-60kmph in 5.66 seconds. It develops a maximum torque of 12.28 Nm @ 6500 rpm. It looks great with its mean muscular aerodynamic shape. Apart from the smashing look, Pulsar has lighter yet stronger alloy wheels, which when coupled with the longest wheelbase (1330mm) enhance the stability of the bike. VEHICLE SUMMARY Name: Pulsar 150 cc 37 Type: Top Speed: ENGINE SPECIFICATIONS Displacement: Engine: Maximum power: Maximum Torque: Gears: Clutch: Stroke: No. of Cylinders: Cylinder Configuration: Engine Block Material: Chassis Type: Cooling Type: Carburetor: Commuter 113kph 149.01cc 4 Stroke, Single Cylinder, Air Cooled, 2 Plug 13.50ps@8500rpm 13.90nm@6500rpm 5 Speed NA 1 NA NA NA Air cooling NA 38 OTHER SPECIFICATIONS Weight: Ground Clearance: Fuel Tank: Wheelbase: Wheel Type: Wheel Size: Colors: ACTIVE AND PASSIVE SAFETY Suspension(Front): Suspension(Rear): Brakes: Brakes(Rear): Telescopic Triple rate springs 240mm Disc 130mm Drum 137.00 kg 155.00 mm 12.00ltrs 1330.00 mm 17″ Alloy wheels 2.75 X 18 Rear 100/90 X 18 mm Black, Silver,Blue & Red Hero Honda Hunk Because Muscles Matter Hero Honda Motors Ltd. (HHML), India's leading two wheeler manufacturer, has launched its new offering as Hunk in the 150 cc segment. This new bike is the fourth launch in the premium segment after 156 cc CBZ Xtreme, 150 cc Achiever and 225 cc Karizma. Hero Honda Hunk carries robust looks and muscular styling with big tank shrouds, 5 spoke black alloy wheels, telescopic fork suspension and new GRS (Gas Reservoir Suspension) at rear. Hunk is powered with 150cc engine that generates 14.4Ps at 8500rpm of power and 12.8Nm of Torque. Hero Honda has launched the 150 cc Hunk in two variants of kick start and self start with the price tag of Rs. 55,000 and 57,000 respectively. The all new Hunk is available in four colours - black, blue, red and silver. With the launch of Hunk Hero Honda aims to make its premium position in this segment. On the launch of Hunk, Pawan Munjal, Managing Director and CEO, HHML, said "The 'Hunk' is our tribute to the Youth of India today - confident and ready to take on the world. It personifies the very fighting spirit and resilience of our youngsters, who are making a mark for 39 themselves in their chosen fields of vocation. Some of the key findings of our extensive research amongst the youth have been incorporated into the 'Hunk' to make it a complete package of world class technology, unprecedented features and stunning looks. Manufacturer Production Class Engine Top speed Power Torque Transmission Suspension Brakes Wheelbase Fuel capacity Oil capacity Fuel Consumption Related Hero Honda Motors India Ltd October 2007 150 cc 149.2 cc 119 km/h 14.4 12.8 5 speed manual gas charged bi shock front single disk & rear drum 1340 mm 12.2 litres 1litres 55 km/l cbz xtreme & achiever Technical Specifications of Hero Honda Hunk Dimensions & Weight 40 Length (mm) Width (mm) Height (mm) Wheelbase (mm) Kerb Weight (kgs) Ground Clearance(mm) Engine Model Designation Starting Displacement (cc) Ignition Bore & Stroke Suspension Front Rear Brakes Type Rear 2080 765 1095 1325 145 145 Air Cooled, 4 - Stroke Single Cylinder OHC Self Start/Kick Start 149.2 Advanced Microprocessor Ignition System (AMI) 57.3 X 57.8 mm Telescopic Hydraulic Shock Absorbers 5 Step Adjustable Gas Reservoir Suspension – GRS Disc: 240 mm Dias Disc - Non Asbestos Type Internal Expanding Shoe Type (130 mm), Non Asbestos Type. Tyres Front Rear Performance Max. Horsepower (ps/rpm) Fuel Tank 2.75 X 18 42P 100/90 X 18 - 56P (With Tuff-up Tube) 10.6 Kw (14.4 Ps ) @ 8500 rpm 12.4 Litre 41 COMPARISION OF FEATURES Bajaj Pulsar  Pulsar 150 cc comes with digital speedo meter.  Neutral and turning indicator and with side stand indicator.  New razor sharp tail light.  The head light is with a city light gives better look.  Front disc. Hero Honda hunk :  Advanced microprocessor ignition system  5 step adjustable nitrox GRS shoks.  Tuff tubes for puncher resisitance.  Anti kick back mechanism COMPARISION OF PERFORMANCES: Bajaj pulsar : · The new Pulsar 149.01 cc with a 14.09 bhp delivers good power · Gives good pick up gives more speed. · Very good throttle response. · Good breaking but sensitive. · Digital twin spark ignition(DTSi) provides efficient combustion and better performance under all condition. · Great performance at lower rpm through advanced ExhausTEC Technology. Hero Honda hunk : · Very good in throttle response. · Good initial pick up. · Smoother engine performance but gear shifting slightly hard. · Very good and comfortable riding. · Even though very good for penion and for long ride. · Excellent breaking with both disc and drum. · New muscle type body gives head turning looks for HUNK 42 COMPARISION OF ADVANTAGES / MERITS: BAJAJ PULSAR: · Its looks good. · Excellent power with 14.09 bhp. · Smooth engine. · Excellent breaking. · Digital speedometer. · The new city light (wolf eye) gives new stylish looks. · Digital twin spark ignition Engine (DTSi). · New razor sharp tail light. HERO HONDA HUNK: · Comes with muscle body with sporty look. · Tuff up tube for puncher resistance. · Very good breaking · Comfortable for both rider and penion. COMPARISION OF DISADVANTAGES / DEMERITS : BAJAJ PULSAR:  The bike heavy feels insecurity.  Uncomfortable handling.  After 50000 kms pulsar asks for more maintenance.  Sensitive disc breaking. HERO HONDA HUNK:  This bike also lags in mileage compared to other 150cc.  Gear shifting is slightly hard. 43 Marketing mix of Bajaj Pulsar Bajaj Pulsar- The product When Bajaj Pulsar made its debut in the Indian market in the year 2001, two variations of the bike, in the form of 150 cc and 180 cc engines, were offered to the potential customers. The bike offered 12 bhp of maximum power. Disc brakes as a feature in Pulsar were offered for the first time in the Indian motorcycle market. The second generation of Pulsar was launched in the Indian market in the year 2003. The latest version of Pulsar incorporated the DTSi technology. DTSi stands for Digital Twin Spark Ignition. This technology was developed by Bajaj Auto and it holds an Indian patent for the same. With the integration of DTSi technology into the Pulsar, the power rating was improved by 1 bhp and also the fuel efficiency of bike was enhanced. In 2005, Bajaj Auto launched yet another upgraded version of Pulsar. This version of bike was offered with a 17 inch alloy wheels as a standard option for the first time. Also, the power rating in both the 150 cc as well as 180 cc versions of the bike was improved. In 2007, Bajaj launched the Pulsar 220 DTS-Fi and 220 DTS-I versions of bikes. The 220 DTSFi model comprises of features such as the former featuring fuel injection and oil cooled engines, a digital dash, and modern styling. Features like fuel injections, rear disc brake and clip on handle bars were introduced for the first time in the Indian market. In 2009, a carbureted version of Pulsar 220 and the fourth upgraded versions of Pulsar 150 and Pulsar 180 were launched in market. Bajaj Pulsar- The Price The following table shows the average price of a Bajaj Pulsar bike (according to the bike variations) in cities belonging to both metro as well as non-metro category. Bike Version Bajaj Pulsar 150 CC Bajaj Pulsar 180 CC Bajaj Pulsar 200 CC Bajaj Pulsar 220 CC DTS Fi Bajaj Pulsar 220 DTSi Average price in Rs. in metros 64375/66625/76125/91875/70000/- (ExShowroom) Average price in Rs. in non-metros 63666/65666/75000/91000/93000/- 44 Also, many Bajaj Auto authorized dealerships offer the following financial schemes in order to attract the potential customer: 0 % Scheme: Under this scheme, a customer has to pay only nominal processing fees. Low Down Payment: In this scheme, the monthly EMI payment could be as low as Rs. 900/-. This scheme helps the customers in planning their monthly budget more efficiently. Normal Channel: Customers can take 80% as loan with normal eligible documents, and obtain approval within 24 hours. Exchange Scheme: Any model and any brand of existing bike of the customer could be exchanged for a brand new Bajaj. After the exchange, the price realized for the older bike is treated as a down payment and the balance is adjusted into any of the available finance schemes. Bajaj Pulsar- Promotion Pulsar was the bike that was launched by Bajaj Auto without the collaboration of the Kawasaki Company. Also, this bike was a technological and a designing marvel. The creative promotion campaign for Bajaj Pulsar was handled by the renowned advertising agency Ogilvy and Mather. The creative team decided to endow the bike with a gender. Taking this idea into consideration, the campaign with a tagline called “Definitely Male” was launched. The promotion campaign, coupled with the design and the performance of the bike, helped the company in achieving excellent sales numbers for the Pulsar bike. When Bajaj Auto launched the Pulsar 200 version, the promotion campaign was focused on the concept of “free biking”. According to the definition of brand Pulsar, free biking is all about tackling obstacles. The expensive ad for this campaign was shot in Havana, Cuba. The underlying theme of the ad is to how two Pulsar riders discover a new route when the main road is blocked by a traffic jam. Bajaj Pulsar is also associated with a reality show called StuntMania that is aired on MTV channel. This show targets the audience in the age group of 18 and above. This show also mentions about bike maintenance and rider safety. 45 Bajaj Pulsar- Place Dealership system of Bajaj Auto: The company has a network of 498 dealers and over 1,500 authorized service centers across the country. Around 1,400 rural outlets have been created in towns with population of 25,000 and below. Following are the various types of showrooms implemented by Bajaj Auto: • • COCO: These are Company Owned & Company Operated showrooms. These concepts exist only for Pro-Biking showrooms. CODO: These are Company Owned & Dealer Operated showrooms. In this case, showrooms are owned by the company but the operations in the showroom are managed by the dealer. This model is followed when Bajaj wants to provide the dealer financial benefits. Setting up of depots: Setting up depots is a geographical strategy adopted by Bajaj Auto. But this does not mean that the company has gone all out to open a large number of depots. It has chosen strategic locations. The key role played by depots is that they are meant to cater to any sudden rise in demand of vehicles, and to cover the existing geographic span of India. A dealer needs to consider his order requirements and then come up with an order to place to the regional office. If the demand is immediate, he may approach a depot for the load. Else, he has to try to stick to factory load. Both of these loads have their own sets of pros and cons. Diagram showing the supply chain process at Bajaj Auto: 46 Marketing mix of Hero Honda Hunk 47 Hero Honda HUNK is positioned in premium market segment. So the marketing mix of product, price, place and promotion are done according to premium market segment. Product The product name: Hero Honda HUNK (Tagline- Because muscle matter) The Brand name: Hero Honda Product Strategies Core benefit: good mileage, less fuel consumption, self start, and good looking. Product line: The product line for Hero Honda is motor bike is very simple. It has only one product line which is Hero Honda HUNK 150cc. so it is very clear that the HUNK has no choice in its product line. Since HUNK is in premium bike segment, customers of this segment will look for many advantages and its utilities. Price Hero Honda HUNK listed its price @ 55,000. It is considered as the cheapest price quote for a premium bike in India. For instance, HUNK self starter and kick starter will cost @ 57,000 & 55,000 respectively. And also other options like alloy wheel, passenger footrest, pass-light, low fuel indicator and colors. So choosing each one of these options will increase the total cost of the show room price. Apart from show room cost, extra costs are road tax, insurance cost, Discounts are provided during many occasions like Indian festival days, government celebration days and season celebration. Place Distribution for HUNK: 48 Promotion Hero Honda HUNK will convey “Because MUSCLE matter” as their message. This caption says that HUNK can provide a muscular look to you and your bike. Basically it says that it provide style. Hero Honda HUNK will be promoted directly by company through online promotions, exhibitions, television ads, printed ads, and event sponsoring. 49 Online promotion: Hero Honda promoted its product through internet on their official website: http://www.herohonda.com Exhibition and trade fair: They participate in trade fair, established exhibition for example they participated in trade fair November, 2008 which held every year in Delhi. Television ads – Playing HUNK visuals between programs break. This visual playing will give bike’s image with sound. Customers can have a detailed look of the product from his/her home only. Print ads – Displaying image on newspapers, magazines, pamphlets. This type of ads will give overall look of the bike and also written details about bike features and function. Customer can read and get the information about the bike. Sponsor ads – Displaying the name Hero Honda HUNK on every possible place. This display will create an opinion about the company and its product. It is the expensive way to advertise but have the maximum impact on sales because nowadays events are happened not only in venue but also telecasted over television. Apart from company, dealers also provide their advertisement through mobile showroom, stall at exhibitions, hoardings besides the road, wall paintings, etc. COMPARISON OF PULSAR WITH HERO HONDA KARIZMA ZMR (Based on features, performance, specifications and on marketing strategies adopted by the company) Bajaj Pulsar v/s Hero Honda Karizma ZMR Hero Honda karizma ZMR 50 The PGM-Fi system of 2011 model of Karizma ZMR is equipped with a 12 hole fuel injector, 16 bit ECU and 6 high-tech sensors to scan the engine operating parameters like air pressure, air temperature, and engine temperature to ensure the optimum air / fuel ratio under dynamic conditions. An advanced vertical oil cooler provides efficient cooling to the high performance engine and the IACV (Idle air control valve) ensures idle stability and smoothens response to throttle changes. MAIN TECHNICAL FEATURES OF 2011 NEW HERO HONDA KARIZMA ZMR: 1. PGM-Fi: Programmable Fuel Injection 2. 16 Bit ECU Processor For Rapid Digital Fuel Injection Mapping 3. Oil Cooled Engine 4. 12 Hole Fuel Injector For Better Atomization Of Fuel 5. Engine Oil Temperature Sensor Which Provides Different Fuel Mixtures At Different Temperatures 6. Intake Air Temperature Sensor Which Senses The Intake Air Temp To Determine & Supply The Optimum Air To Fuel Ratio 7. Throttle Position Sensor Which Detects Throttle Opening & Provides Input To The ECU 8. Crank Position Sensor Which Senses The Position & Time At Which Fuel Needs To Be Injected In Relation To Crank Angle 9. Oxygen Sensor Ensures Correct Air Fuel Ratio For The Catalytic Convertor 10. Manifold Absolute Pressure Sensor 11. Idle Air Control Valve 12. Gas Charged Shock Absorbers 13. Rear Disc Brake Shades Available in 2011 New Hero Honda Karizma ZMR 2011 model of Hero Honda Karizma ZMR is available in following four shades: - Spot Light White - Panther Black Metallic - Candy Blazing Red - Vibrant Orange (New Shade) The 2011 model of Karizma is available in four shades: Spot Light White, Panther Black Metallic, Candy Blazing Red and Vibrant Orange (New Shade). The company has discontinued Yellow and Blue shade which were available in 2010 model. Technical specification of New Hero Honda Karizma ZMR Vehicle summary Name Type Top speed New karizma ZMR Sports 126 kph 51 Engine Specifications Displacement Engine Max.power Max.torque Gear Clutch Bore Stroke No. of cylinders Cylinder configuration Engine block material Chessis type Cooling type Carburetor Motor power Motor range Paddling arrangement 0 to 60 Dimensions Length Width Height Comfort and convenience Fuel gage Self start Tacho meter Trip meter Warranty Speedometer Other specifications Weight Ground clearance Fuel tank Wheel base Turn circle Electrical system Headlamp 223cc 4 stroke,fuel injection,OHC 17.6bhp@7000rpm 18.35nm@6000rpm 5 speed Multiple wet 65.5 66.2 1 NA NA Turbular single cradle,diamond type Liquid cooling NA NA NA NA 3.70sec. 2110mm 805mm 1175mm Digital Digital Digital Digital 3 years Digital 159.00kg 159.00mm 16.0ltr 13350.00mm 2.50mtrs 12v-7ah-232w alternator 12v-35w halogen 52 Battery type Battery voltage Battery capacity Battery charger Wheel type Wheel size Tubeless Colours Maintenance free 6v 6ah NA Die cast black alloys Front-80/100*1847p mm Rear-100/90*1856p mm  Spotlight white,vibrant orange,panther black metallic,candy blazing red Comparison Of Pulsar with Yamaha R15 & Apache RTR 180 (Based on features, performance, specifications and on marketing strategies adopted by the company) The two biggies of the auto market and Bajaj and TVS are head-to-head to strengthen their position in the two-wheeler market and so do the two models; Bajaj Pulsar 180 DTSi and TVS Apache RTR 180, seem to go neck to neck when it comes market share and they seem to be going in the right direction of changing the perspective of bike riding. In terms of sales Pulsar 180 DTSI is much ahead of the Apache RTR 180 but TVS has left no stone unturned and has been a strong competitor to Bajaj. A neutral comparative analysis will always help the buyer to pick the right bike, because he not only gets a clear picture of various technicalities such as engine performance, mileage and of course the price differences that will make a huge difference while deciding on which bike to go for.Most of the times the chances are that the consumer will go by the brand name and ignore the actual facts of the bike or based on some biased opinions he/she would to prefer to buy a particular bike. 53 Buying a bike is an investment in itself; it is not only about the monetary investment but it is also about time and effort. Looks wise When it comes to looks, the style and designing of both Apache RTR 180 and Yamaha R15 will steal onlooker’s hearts. Yes, when the TVS Apache RTR 180 arrived in the markets it truly lived by its name ‘Menace’. Although it followed the lines of its predecessors the hi-tech features and super-cool body graphics gives the bike a far superior look. Yamaha R15 on the other hand has a sporty-model look that is actually a reminiscent of YZF-R series, and the bike was rolled out in all-new colors that set the bike from the usual run of the mill types. Furthermore, the Yamaha R15 scores better in the graphics department as well. The Yamaha R15 also follows the series’ philosophy of highlighting visual performance and the bike truly echoes this visual representation. If one has a keen eye for detail, one can see that if glanced from side the panels and the top surface of the tank will give the looker an idea that the gravity is kind of shifting to the front tyre. TVS Apache RTR although has good looks, poor baby she lags a lot behind in comparison to the Yamaha R15. Handling and Performance:- The TVS Apache 180 RTR boasts of reaching a speed of 60 kmph from standstill in just about 4.15 seconds. It hits a top speed of 125 kmph. There is no doubt that the engine capacity of the RTR 180 is greater and it generates power of 17.3 bhp, and it is a major plus for the bike. Despite being low powered bike the Yamaha R15 still has an upper hand because the top speed recorded by the bike is 135kmph, a 149.8cc engine hitting that speed is commendable. As coming to the handling of the bike, the Yamaha R15 is adorned with a Deltabox frame and come with monocross suspension which enables the rider great comfort while riding, as well as smooth handling and being easy while turning the vehicle. Whereas, the TVS Apache RTR 180 Menace has a longer wheelbase and the bike will be quite stable on straight roads as well as curvy ones. The aerodynamic design, the forward riding position and the pillion comfortable 54 seating position makes a lot of difference to the riding quality of the bike. In the comfort and handling department the two bikes have their own unique features to give the rider a smooth ride. Talking about performance Pulsar DTSi 180 is a heavier machine when compared to the previous version and that affects quite a lot to the performance of the vehicle. The heavy tyres at the rear and the decrease of torque by 1 Nm has certainly brought down the performance level. Despite these drawbacks Pulsar 180 is still ranked as one of the top performing bikes; it can touch up to 123 kmph speed, which is quite a feat by the manufacturers. Mileage The Yamaha R15 is a performance bike with a 150cc engine, the mileage obviously will be less so one expect around 35kmpl-45kmpl. The TVS Apache RTR 180 gives a mileage of around 3944kmpl in the city and highway you could expect 43-48kmpl. In this regard the two bikes are almost close and there is obviously nothing much to smile about. TVS Apache RTR 180 gives a mileage of 39-44 Kmpl for that city riding and a little higher around 43-48 kmpl on the long drive or highway ride. Pulsar on the other hand, consumes less fuel; it gives around 41-46 kmpl mileage in the city and up to 46-51 kmpl on the highway riding. Data Engine Displacement New Karizma ZMR 4 Stroke 223cc 17.6 Bhp-7000 rpm 18.5 Nm-6000 rpm 5 Speed Liquid Cooled Bajaj Pulsar 220 4 Stroke 220cc Yamaha R15 4 Stroke 149.8cc Apache 180 4 Stroke 177.4cc 17.3 Bhp-8500 rpm 15.5 Nm-6500 rpm 5 Speed Air Cooled 55 Max Power 21 Bhp-8500 rpm 17 Bhp-8500 rpm Max Torque Gears Cooling Type 19 Nm-7000 rpm 5 Speed Air Cooled 15 Nm-7500 rpm 6 Speed Liquid Cooled Top Speed 0-60 kmph 126 kmph 3.70 secs 144 kmph NA 135 kmph 3.20 secs 125 kmph 4.35 secs Brakes Discs Discs Discs Discs Marketing mix of TVS apache product The company has tried to register its presence in the mind of the customers of every segment ranging from 60cc to 180cc but still has failed to capitalize because unlike its competitors it does not offer many options to its customers in most of the segment. When in 150+cc segment Hero Honda and Bajaj offer 4 and 6 products respectively, TVS has only two products in its stores. In this project we are dealing with one of the best selling existing products of TVS i.e. TVS Apache. TVS Apache was launched in 2006. It has 4 variants and comes with 160cc and 180cc engine. The RTR and RTR FI version of the 160cc bike was launched in 2007 and it was the first twowheeler in its segment in India to have racing inspired engine and features. In 2008 a variant of this bike was launched as ‘Hyper Edge’ which is considered as a cosmetic face of Apache RTR 160 FI by the experts (Topgear & Bike India). The 180cc variant of the bike was launched in 2009. TVS targets these group of people for Apache• • • Pricing… • College going students Youth between 18-30 age People wanting to upgrade to 150+cc People looking for a sporty & stylish bike TVS has priced Apache very competitively as there is intense competition in 150+ cc segment and Indian customers are more price sensitive. The company offers Apache RTR 180, which comes with unique safety feature i.e. ABS and generates 17.3 bhp, for around Rs.65,000 (ex56 showroom, Bangalore) while Bajaj’s Pulsar 180DTSi cost Rs.60,000 (ex-showroom, Bangalore) without such feature and generates 17 bhp. Price of RTR 160 FI is definitely high but the product provides more value than its competitors. Place… TVS has a strong distribution channel having dealers in almost every part of India and other countries where it operates. The company has more than 750 dealers across the country. Its service centres are located across the country facilitating continuous access of Apache to the market. TVS Logistics Service Ltd. is a subsidiary of TVS Motor which provides logistics solutions to TVS Motor. TVS Logistics Service Ltd. provides logistics solutions also to Mahindra & Mahindra, Ford, Ashok Leyland, Royal Enfield, Tata Motors, etc. Promotions… Apache RTR 180 uses the tagline ‘Racing DNA Unleashed’ defining the racing features of the bike. The company organizes road-shows and exhibition of Apache. Hoardings of Apache bulleting the features and the tagline can be seen at youth oriented public places. TVS also promotes Apache through TVS Racing. The company organizes rally in different parts of the world. Brochures and pamphlets speak more about the mileage and power of Apache. Positioning… TVS has very cleverly positioned Apache as a racing oriented bike. It uses the RTR (Racing Throttle Response) sticker boldly on the body of Apache. In every advertisement TVS has been focusing on the racing aspect of its products by showing a guy riding Apache and leaving every other behind. Apart from racing features TVS talks about the power of the bike which is directly related to the performance of the bike on road. TVS also organizes road-shows and rallies to promote its product through TVS Racing. It runs a special Apache racing club. TVS Apache 180 RTR is accompanied by the tagline that says- ‘Racing DNA Unleashed’. The advertisement highlights the text ‘Racing DNA Unleashed’ and ’17.3 bhp’ to strengthen its position as a premium segment racing bike. 57 Apache has also established itself as a trustworthy brand by continuously performing well at different auto award functions like NDTV Car & Bike Awards, Overdrive Awards, etc. Marketing mix of Yamaha R15 Product Yamaha YZF R15 is the first model for the Indian marketdesigned in the true super sport image and featuring a high-level balance of enjoyable running performance on winding roads. The YZF R15 is most preferred by teenagers and secondlargest selling bike by Yamaha Motors. The bike R15 waslaunched into the market at end of the year 2008.After R15was introduced, Yamaha gained back the market share. The customers of R15 are mostly teenagers, attracted because of the sportive style, new technology engine and royal-look. The dealers are 430 in number including ORPI, CAG out of which around 100 dealers were added in the year 2008. The employees are around 25000 in India working in various branches across the country. Even though the sales of the company were affected during the recession, the company did not lay-off any of its employees in 2008.The competitors of the product are Pulsar 150, Karizma and TVS Apache in India. Product R15 is in level 3, namely expected product. In the product life cycle, it is in growth stage. • Product length Rx100, Gladiator, Alba, Fz, Fazer, Crux, Enticer, Gladiator ss, • Product depth: R15 and R1 • Product width: Pulsar150, Unicorn, Apache RTR160, Karizma. PRICE R15 follows high pricing and high promotion strategy and it comes under Rapid skimming pricing strategy. PLACE Transportation is by trucks and cargo for the showrooms spread around the country. The showrooms are spread throughout the country. 58 PROMOTION Promotion done by R 15 Championship: Concept of Racing Championship, an effort to promote and strengthen safe biking culture and motor sports in India. Segmentation  Segmenting by location The design of Yamaha-R15 varies from country to country. The manufacturing units in each country produce a design and include features according to the needs of local customers.  Segmenting by gender R15 is designed for use only by male customers.  Segmenting by age R15 is focusing on teenagers 20-30.  Segmenting by income R15 is affordable only for customers having an annual income of above 4lakh rupees. Targeting The Yamaha’s product R15 is targeting on teenagers and customers having for racing. positioning The celebrities are used to communicate the product. The brand ambassador is John Abraham, Bollywood actor.They position the bike as it is for young stylish people . COMPARISON OF BAJAJ PULSAR WITH HONDA UNICORN (BASED ON FEATURES, PERFORMANCE, SPECIFICATIONS AND MARKETING STRATEGIES ADOPTED BY THE COMPANY) Honda unicorn Honda Motorcycle & Scooter India (HMSI)’s Unicorn could not perfectly fulfill the expectations of the bike boys. On the launch, it did not come with the electric start but it was equipped with 59 the self starter later. It is a competent motorcycle in the 150cc segment. Its striking feature is the adoption of monoshock which is liked by many riders. Unicorn is regarded as one of the most reliable bikes in the country along with the great mileage and adequate performance after the successful launch of 102cc Activa and Dio by HMSI. It is a hassle free bike and performs everything adequately. It has a decent mileage of 53-58kmpl on actual road conditions and a high comfort level to drive smooth on the tough Indian roads. Its voluminous fuel tank makes sure of abundant petrol even at the longest distance. It holds its place and sells pretty well in the market despite the launch of new contestants from other companies. In comparison to the Apache RTR and Pulsar, it lacks in pickup. The bike does not give a sudden jolt of acceleration, but very efficiently increases the speed in a smooth fashion. The same acceleration power is retained as you go to higher speeds. Unlike other bikes which give a sudden jolt of inertia initially but sucks at higher speeds, Unicorn does a good job of constant acceleration for a long time with its 150cc engine. Design And Comfort Unicorn is a good blend of sporty and conventional style and the bike comes in different fabulous paints. The clear lens halogen works perfectly and looks like as that of Karizma. The Unicorn's three-pod dials is voted for the best set in the country so far. A massive speedometer is fixed at the center and a sporty tachometer on the left. But it does not own a trip gauge. The squat fuel tank feels flatter and looks smart with a rounded chrome cap. It's one of the few bikes in the country with knee recesses which fit all leg shapes. The well shaped lockable seat offers adequate room both for the rider and the pillion. The aluminium footrests are buffed to a satin finish and a cut above the rest. The silencer adds further glint value to the Unicorn, with its large chrome shroud. Unicorn is designed and engineered to quench the thirst of style-hungry young bikers. It has a distinctive sporty and macho design with a racy front face, masculine fuel tank with knee grip and a sleek rear cowl. Ride And Handling Unicorn is a good blend of sporty and conventional style and the bike comes in different fabulous paints. The clear lens halogen works perfectly and looks like as that of Karizma. The 60 Unicorn's three-pod dials is voted for the best set in the country so far. A massive speedometer is fixed at the center and a sporty tachometer on the left. But it does not own a trip gauge. The squat fuel tank feels flatter and looks smart with a rounded chrome cap. It's one of the few bikes in the country with knee recesses which fit all leg shapes. The well shaped lockable seat offers adequate room both for the rider and the pillion. The aluminium footrests are buffed to a satin finish and a cut above the rest. The silencer adds further glint value to the Unicorn, with its large chrome shroud. Unicorn is designed and engineered to quench the thirst of style-hungry young bikers. It has a distinctive sporty and macho design with a racy front face, masculine fuel tank with knee grip and a sleek rear cowl. Variants, Price And Color Honda Unicorn is available in 4 colors: Pearl Igneous Black, Space Silver Metallic, Black with Red Graphics and Red with Black Graphics. 61 TECHNICAL SPECIFICATIONS OF HONDA UNICORN Weight / Measurements Specifications Dry Weight (Kg) Kick Start / Self Start 126 (Kick) 130 (Self) 139 (Kick) 142 (Self) 2090 750 1095 1340 790 168 13 1.3 Kerb Weight (Kg) Length (mm) Width (mm) Height (mm) Wheelbase (mm) Seat Height (mm) Ground Clearance (mm) Fuel Tank Capacity (Full ) – (Lt) Reserve Tank Capacity – (Lt) Performance Specifications Max Speed – (Kmph) Acceleration (0-200m) – (Sec) Overtaking Acceleration for 200 m (at 40kmph) – (Sec) Acceleration (0-60 kmph) – (Sec) Mileage (in Indian Mode) – (Kmpl) Kick Start / Self Start 101 12.1 12.1 5 60 62 Body Specifications Frame Kick Start / Self Start Advanced Design Diamond Frame Telescopic Advance Technology Monosuspension 2.75 x 18″ 3.00 X 18″ 240 mm Disc 130 mm Drum Front Suspension Rear Suspension Front Tyre Rear Tyre Front Brake Type Rear Brake Type Engine & Transmission Specifications Engine Type Kick Start / Self Start 4 St, Air Cooled OHC Single Cylinder 149.1 13.3 bhp @ 8000 rpm (9.9 kW) 1.3 Kg-m @ 5500 rpm (12.8 Nm) Paper Type CV Type 125 Displacement – (cc) Net Power Torque Air Filter Carburettor ACG Power Generating Capacity – (Watt) Oil Capacity – (Lt) 1.2 63 Transmission Constant Mesh, 5 Speed gear (1 down – 4 up) 1 Down – 4 Up Gear Shift Pattern Electricals Specifications Ignition Battery Kick Start / Self Start Digital CDI (Multi Mapping) 12V – 2.5 Ah(Kick) 12V – 7 Ah(Self) Halogen (12V/35W) 12V – 21W(5W) Headlamp Tail / Stop lamp Unicorn vs pulsar 150 cc SpecificationsUnicorn 150 CC MFC: Honda CC: 149.1cc Torque: 1.3KGM @ 6500rpm Bhp: 13.3 @8000rpm Pulsar 150 DTSi Bajaj 149.01cc 13.90NM @ 6500rpm 14.09 @ 8000rpm 64 Gear: 5 speed Starter: Electric and kick Wheel base: 1340mm Milege: 60-65kmpl Price: 67000 5 speed ELECTRIC AND KICK 1320mm 55-60kmpl 67000 65 FEATURES OF HONDA UNICORN 150CC WHEN COMPARED TO BAJAJ PULSAR 150CC: • • • • Smoother engine compared to pulsar 150 cc. Gives more mileage than pulsar 150cc. More comfortable than pulsar 150cc. good quality. BAJAJ PULSAR 150CC DTS-I WHEN COMPARED TO HONDA UNICORN 150CC • • • • Very good pick up compare to unicorn. Looks good compare unicorn. Comes with digital speedometer. Lacks in mileage compare to unicorn. Comparison between Yamaha FZ16 vs Honda Unicorn Features of Yamaha FZ 16 153ccc 66 • • • • • • • LCD meter with crystal display tachometer,sppedometer,trip meter, fuelguage, New indicator for ingine starter. Fuel tank with a styled plastic resin cover. Large 267 mm front disc 140/60-17″rear radial tyre Both tubeless tyre. New designed multireflecter head light with new look. Performance: • • • • • The engine with 153 cc delivers a power of 14 bhp @ 7500 rpm.and maximum torque of 14n-m@6000rpm. Oil cooled 4 stroke SOHC single cylinder 2 valve engine. very good in pick reaches 0-60 just in 5 sec A 3-position which is TPS throttlr position sensor on the carb works the ignition systemefficiently. The engine is tuned for low and mid range torque. Mileage : The FZ 16 gives a mileage of 45-50in city and 50-52 in highway with out disturbing the power Merits : • • • New diifrent and sporty look. LCD crstaly display for speedometer,odometer etc. New two layer exhaust muffler to reduce the heat. 67 • • • 267 mm disc for good breaking handling and comfortable. First time in india with a radial tyre and it has tubeless tyre for both front and rear. it comes with only electrick start . Demerits: • • • FZ 16 lags in mileage. IT introduced only in three colour. They would have introduced with rear dis. WHEN COMPARED TO UNICORN: • • • • • Lags in Mileage loooooks diffrent new LCD display large disc with 267 mm dia both rear and front are tubeless tyre HONDA UNICORN 150 CC : When compared to Yamaha fz16• • • • • Smoother engine compared yamaha FZ 16. Gives more mileage than yamaha FZ 16. More comfortable. doesnt come with tubeless tyre. comes with both self and kick starter. Marketing mix of Honda Unicorn (a)product68 Product name- Honda Unicorn Brand name-Honda (b)pricePrice of honda unicorn is approximate 67000 Rs. Pricing strategies are used to increase its profit. it gives certain basic features with a list price and each extra unit of features will add up the total cost of the vehicle. Honda unicorn used this pricing strategy. (c )placeHonda unicorn will be sold in all Honda exclusive show rooms only and each showroom will be owned by different individual entrepreneur called dealer or agent. Honda showrooms will be situated in prime locations all over India to providing there is good access for customers. Showrooms are located in Metros, city and also in towns.. The stock will be sent directly to each dealer direct from the manufacturing units. The goods will be transported through the dealer’s lorry or truck. (d)promotionHonda promotes it’s product by advertising in newspaper,radio and in tv.prroduct is also promoted by hoardings in urban areas. RESEARCH METHODOLOGY 69 “Systemized Method is necessary to gain knowledge”. The technique deployed to analyze and interpret the data for the purpose of hitting the target objective plays a crucial role. The effective research technique has a significant contribution for effective objective achievement. OBJECTIVES OF STUDY The main objective is to gain everything about bajaj pulsar and it’s competitors. Following are the objectives of analysis: • • • • • • • • • • To analyze the customer preference. To know which manufacturer is providing better services. To analyze after sales services of pulsar. To study the behavioral factors of consumers in motor bikes. To suggest various factors to improve sales. To know how the cost is reduced. To gain knowledge of Promotion and Marketing Tactics for a new product. To understand the marketing mix used by bajaj to promote pulsar. To find out the acceptance level of people. To know practical aspect of how to win over competition. RESEARCH DESIGN Research design facilitates that smooth sailing of various research operations thereby making research as efficient as possible, yielding maximal information with minimal expenditure of effort, time and money. Research Design is the arrangement for conditioned for data collection & analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure. A research design is a master plan or model for the conduct of formal investigation. It is blue print that is followed in completing study. 70 In contrast to exploratory studies descriptive studies are typically structured with clearly stated hypothesis. Descriptive studies are those studies, which are concerned with describing the characteristics of particularly individual or group. These studies are concerned with specific predictions, with narration of facts & characteristics concerning individuals, groups, or situations. The design in such a study must be rigid & not flexible and must focus attention on the following:o Formulating the objective of study. o Designing the method of data collection. o Collection of data. o Processing & analyzing the data. o Reporting the findings. Techniques used o Collection, Classification, Compilation, Tabulation, Analysis and Interpretation of information facts and figures relevant to the company. o Consultation and personal observations. o Drawing conclusion through analysis of information collected and interpreted. DATA SOURCE Research included gathering both Primary and Secondary data. o Primary data is the first hand data, which are selected a fresh and thus happen to be original in character. Primary Data was crucial to know various customers and past consumer views about bikes and to calculate the market share of this brand in regards to other brands. o Secondary data are those which has been collected by some one else and which already have been passed through statistical process. Secondary data has been taken from internet, newspaper, magazines and companies web sites Scope of the study 71 • Finding out the strength and weakness of the Bajaj Pulsar (DTS-i), where it can correct its faulty Finding the market potential and awareness of this vehicle. Finding the position of the vehicle among the competitors. Finding the perception of consumers about the vehicle. This study would be useful to know about pulsar and its competitors. This study would be useful to students to understand importance and practical aspect of marketing and promotional strategies. This study would be useful to other new products to form strategies. • • • • • • LIMITATIONS OF THE PROJECT No proper assurance of right information: The main data sources are questionnaire, websites, newspapers and magazines. o The data on websites might be possible, not get updated. o I will have to rely upon the information given by respondents, which may not be fully true o It is only for short period of time. o Lack of professional approach since researcher is a student. 72 FINDINGS AND INTERPRETATION After the data has been collected, it was tabulated and findings of the project were presented followed by analysis and interpretation to reach certain conclusions. Data has been interpreted based on 60 respondent’s views and opinions. Q1) Which Bike do you have? Company Hero Honda Bajaj TVS Any other Respondents 15 15 15 15 1 5 1 0 5 0 R espondents T VS B ja a j H honda ero Anyother H honda ero B ja a j T VS Anyother Interpretation-- Out of the sample size of 60 customers, 73     15 customers are of Hero Honda, 15 are of Bajaj 15 are of TVS and 15 are of any other bikes are taken into consideration. Q2) Which Model do you have? (a)HERO HONDA: Splendor 5 5 4 3 2 1 0 splendor passion karizm a O ther Passion 4 Karizma 2 Other 4 (b)BAJAJ: Discover 6 Pulsar 4 Platina 3 Other 2 74 6 4 2 0 D iscover pulsa r pla tina Other © TVS:Flame 3 Apache 3 Star city 5 Other 4 6 4 2 0 F e lam apache S city tar Other 75 INTERPRETATION In Hero Honda mostly the customers are having splendor and passion while the ratio of the customers using , Karizma and other bikes are comparatively low.  In Bajaj the customers are giving more preference to Discover and Pulsar models.  In TVS Bikes the customers are givig more preference to the apache and star models. Q3) In which Family Income do you Fall? Family income 100000-200000 200000-300000 300000-400000 Above 400000 Respondents out of 60 12 21 19 08 76 2 5 21 2 0 1 5 1 0 5 0 R pondents out of 6 es 0 19 1 00 0 00-200 000 1 2 8 2 00 0 00-300 000 3 00 0 00-400 000 Above 4 00 000 INTERPRETATION The maximum numbers of customers that are using these bikes fall in the income group of 200000-300000.  While this ratio is minimum in case of customers whose income level fall between 300000-400000. Q4) For how long do you own a Bike? Year 1yr. 2yr. 3yr. Above 3yr. Customers 25 15 12 8 77 2 5 2 0 1 5 1 0 5 0 2 5 1 5 1 2 8 1 yr. 2 yr. 3 yr. Above 3 yr. custom ers INTERPRETATION It is observed that mostly the customers are having new bikes. Q5) For what purpose do you use your Motor Bike? Purpose of bike Office Personal Entertainment Other Hero Honda bike 6 4 3 2 Bajaj bike 3 4 7 1 Tvs bike 3 2 4 5 78 7 6 5 4 3 2 1 0 H H ero onda bike Bajaj bike Tvs bike Office Pers onal Entertainm ent Other INTERPRETATION-.  In Hero Honda customers use their bikes mostly for office and personal purpose because of its fuel efficiency and low maintenance.  In Bajaj,customers use their bikes mostly for entertainment because of the power in bikes like pulsar and discover and other bikes used for personal and official purpose. Q6) How did you come to know about this bike? Source of info. Newspaper Television Magazines Hunk/karizma 20% 20% 10% Pulsar 25% 40% 15% 20% Apache 20% 35% 25% 20% Friends/relatives 50% 79 50% 40% 30% 20% 10% 0% H /ka m unk riz a Puls r a Apa che News per pa T elevis ion Ma a ines gz F riends /rela tives INTERPRETATION It is observed that the awareness of Hero Honda bikes like  hunk/karizma mostly comes from friends/relatives while of Bajaj(pulsar) and TVS(apache) the awareness comes from other sources of information like advertising in TV, newspapers. Q7) Are you satisfied with the performance of the bike that you are currently having? (a)Yes ………..35 (b) No ……….20 (c)Can’t say ….05 INTERPRETATION- Out of the sample size of 60 customers  35 customers says that they are satisfied with the performance of their bikes. 80  On the other hand 20 customers are not satisfied with the performance of the bikes that they are having.  While the remaining 05 customers are unable to say anything. Q8) Does Advertisement Influence your decision in choosing a Motor Bike? (a)Yes ……….30 (b)No ………..20 (c) Can’t say….10 INTERPRETATION-Out of the sample size of 60 customers  30 customers agrees with the fact that advertisements play a very significant role in influencing their behavior to choose the bike.  On the other hand 20customers do not agree to this fact.  While remaining 10customers are not sure about it Q9) Did you had full knowledge about Bike before buying? Awareness Yes No Can’t say Hero Honda 9 5 1 Bajaj 10 3 2 TVS 8 5 2 81 10 8 6 4 2 0 yes no C an’t s ay H H ero onda B ajaj TV S INTERPRETATION It is observed that most of the customers are awared about bike before purchasing. Q10). Which factor below influence your decision? Factor influencing buying decision Price Mileage Resale value Status symbol Hero Honda Bajaj TVS 3 6 4 2 2 3 4 6 6 3 2 4 82 7 6 5 4 3 2 1 0 H H ero onda Bajaj TV S Price Mileag e R ale value es S tatus s bol ym INTERPRETATION In Hero Honda bikes the mileage of the bike and the value that it adds to the status symbol of the customers influences the decision criteria of most of the customers.  In Bajaj bikes customers gets more influenced by the price and quality of the bike and also they think that it adds value to their prestige.  In TVS and any other bikes the economic price of the bikes influences the buying behavior of the customers. Q11) How would you rate the following factors of bikes with respect to different companies?(in percentage) Factors Mileage Price Pick up Maintenance Look/shape Brand image Hero Honda 50 35 30 45 35 50 Bajaj 30 30 45 30 35 30 TVS 20 35 25 25 30 20 83 60 50 40 30 20 10 0 Hero Honda Bajaj TV S Mileag e Price Pick up Maintenance L ook/s hape Brand im e ag INTERPRETATION It is observed that in rating of different features of different bikes people give maximum rating to the brand image and mileage in hero Honda bikes.  In bajaj bikes they give top rating to the pick up and look/shape of the bike.  In TVS bikes they rate price and mileage to the top.  Mostly people consider brand image ,mileage and price in purchase decision. Q12) If you have your own bike and new bike comes in market with some good features then would you like to change your bike? Change factor Yes No Can’t say Hero Honda 3 10 2 Bajaj 5 8 2 TVS 6 5 4 84 12 10 8 6 4 2 0 Y es No C an’t s ay H H ero onda Bajaj TV S INTERPRETATION It is observed that the customers of Hero Honda bikes are not ready to change their bikes even if a new bike comes in with good features.  While majority of the customers of Bajaj and TVS are ready to change their bikes if new bike provides some good features to them. Conclusion 1.Major competitior of Bajaj Pulsar is Hero Honda’s products like Hero Honda Hunk,Karizma ZMR and TVS apache RTR. 2.Bajaj pulsar comes in many variants like 150cc,180cc and 220cc and in different colours like black,red and blue. 3.Bajaj pulsdar 220cc with some additional features yet out of reach to middle class due to tts high price.In this segment Hero Honda’s Karizma also available with it’s dazzling look to attract the customers. 4.Hero Honda Hunk lags in mileage compared to other 150cc. 5.pulsar 220cc is 20,000 Rs.cheaper and more powerful in comparison to Karizma ZMR but Karizma is liquid cooled and technically more sound and advanced in comparison to pulsar220cc. 85 6.Indian bike market has many buyers and each consumer has different requirement and accordingly the sale of new entrant will either go up or go down. 7.Most of the time the chances are that consumer will go by the brand name and ignore the actual facts of the bike on some biased opinion,he/she would to prefer to buy a particular bike. 8.Most of the Flame, Apache, Pulsar, CBZ & Karizma are purchased by young generation 18 to 30 years because they prefer stylish looks and rest of the models of Hero Honda, TVS and Bajaj are purchased more by daily users who needs more average of bikes than looks. 9. Hero Honda is considered to be most fuel-efficient bike on Indian roads. 10. Service & Spare parts are available throughout India in local markets also. 11.While buying a motorcycle, economy is the main consideration in form of maintenance cost, fuel efficiency. 12. In the 150cc segment on the marketing front Pulsar 150 DTSi kicked off Hero Honda Hunk, but in core biking (bywhich mean quality, handling and reliability) Hunk kicked off Pulsar. 13. The respondents find the mileage, technology and engineering themost satisfying attributes in BAJAJ PULSAR dtsi. These two are themain reasons for the consumers to opt for BAJAJ PULSAR dtsi. Thesurvey also reveals that BAJAJ PULSAR dtsi is one of the most preferred twowheeler among the various brands mentioned in the questionnaire. 14. The main reasons for purchasing BAJAJ PULSAR dtsi is its better mileage, good aesthetics, technology and engineering. 86 Suggestions Based on the major findings as observed during collection of data through the distribution of customer questionnaires, an attempt has been made to offer recommendations for the further improvement of sales as well as customer satisfaction in the following paragraphs: • The bike has a four – stroke engine it expected to give good mileage.The bike should give at least 55 – 50 kilometers per litre under cityriding conditions as against 60 kms declared by the company. • Brakes and road grip of the bike need to be improved. • The vehicles are expected to have lower maintenance cost which makes the customers feel happy. • Seating arrangement of the vehicles should be changed. • Bajaj pulsar dtsi should be released with new attractive colours. • Structure of petrol tank should be changed. • The high price is one of the major barriers. The bike should be priced low which will increase the sales. 87 • Pulsar should advertise their models in T.V. media to create awareness and attract some more consumers and also company should give more and more advertisements about the product in different medias like print media, electronic media so that it will reach everyone. Young people prefer two wheelers (especially students) than others.So, the advertisement and sales promotion should be aimed towards them. The waiting period for the delivery of the vehicles should be reduced. More authorized service stations should be opened within city limits. Vehicle loan should be extended to meet the middle class customers by reducing monthly slap rate and interest rate. Number of free services to vehicle should be increased. Various kinds of discounts should be allowed on purchase of vehicles occasionally. Credit period must be increased which helps high rate of sales. Bajaj should introduce some more models having more engine power. More service centers should be opened. Maintenance cost and the availability of the spare parts should also be given due importance. They also introduce some good finance/discount schemes for students. • • • • • • • • • • • 88 Bibliography 1.websites  www.pulsarclub.com  www.mypulsar.com  www.bajajauto.com  www.mouthshut.com  www.bikez.com  www.quiker.com  www.moneycontrol.com 2. C.R.Kothari, Research methodology methods and techniques 89 90 QUESTIONNAIRE Name: ……………………… Age………………………. Occupation: …………………Ph.No./Mob. No……………. Address…………………….. Q1) Which Bike do you have? (a) Hero Honda (b) Bajaj (c) TVS (d)other Q2) Which Model do you have? (a)Hero Honda: - 1.Splendor 2. Passion 3. Karizma 4.Other (b)Bajaj: © TVS:1. Platina 1. Flame 2. Discover 3. Pulsar 4.Other 2. Apache 3.Star city 4.Other Q3) In which Family Income do you Fall? (a) 100000-200000 ©300000-400000 (b) 200000-300000 (d)Above 400000 Q4) For how long do you own a Bike? (a)0-1 year ©2-3 year (b)1-2 year (d)above 3 years Q5) For what purpose do you use your Motor Bike? 91 (a)Office Purpose ©Entertain (b) Personal Purpose (d) Other Q6) How did you come to know about this Motor Bike ? (a)Newspaper ©Magazines (b) Television (d) Friends/Relatives Q7) Are you satisfied with the performance of the bike that you are currently having? (a)Yes (b) No (c)Can’t say Q8) Does Advertisement Influence your decision in choosing a Motor Bike? (a)Yes (b)No (c) Can’t say Q9) Did you had full knowledge about Bikes before buying? (a)Yes (b)No (c)Can’t say Q10). Which factor below influence your decision? (a)Price ©Resale Value (b) Mileage Quality (d) Status Symbol 92 Q11) How would you rate the following factors of bikes with respect to different companies? (a)Hero Honda (b)Bajaj (c)TVS Mileage………………………….. Price……………………………… Pick up…………………………… Maintenance……………………... Look/Shape………………………. Brand Image……………………… Q12) If you have the bike Pulsar and new bike comes in market with some good features then would you like to change your bike? (a)Yes (b)No (c)Can’t say Q13) Any Suggestions for Company ………………………………………………………………………………………………… ………………………………………………………………………………………………… Date: Place: signature 93