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Babasaheb Gawde
Institute of Management
Studies
Mumbai Central
2009
Nilesh Maurya
MMS II A
Roll No 34
Marketing Analysis of
Bajaj Pulsar 220 CC
Marketing analysis of Bajaj Pulsar 220CC
2 | P a g e
Marketing Application And
Practices
Index
Marketing analysis of Bajaj Pulsar 220CC
3 | P a g e
Particulars Pg No.
Executive summary 3
Introduction 4
Situational Analysis 5
Steeple Analysis 7
SWOT Analysis 10
Tows Matrix 12
MichaelPorter’s Analysis 13
BCG Matrix 15
GE Matrix Analysis 17
Product Life Cycle (PLC) 19
Marketing Mix 21
Customer Analysis 23
Value Chain Analysis. 24
Segmentation, Target Market, Positioning And
Differentiation.
28
5 FinancialPlan 30
Marketing analysis of Bajaj Pulsar 220CC
4 | P a g e
Executive Summary
This reporton Bajaj Pulsar 220CC isdone to find out certain aspects related to
marketing adopted by Bajaj Auto India to stand strongly in the competitive 2
wheeler’s automobile market. Bajaj’s marketing strategies are analyses using
variousmodelslike SWOT analysis, BCG Matrix, GE matrix, porter’s five forces
etc.
The outcomes of these models are properly analyzed to find out the various
aspects like companies position and competitors position in the market.
This report on Bajaj not just give description about the company but it also
talks about the various marketing strategy adopted by the company.
SWOT analysis of Bajaj helps to find out the weak points of the company and
to find out the way to overcome this problem.
Bajaj is the India'sleadingmanufacturer of 2-wheelers. Recently they
have launched bikes keepingthe youthcustomer in the view. Here we have
analysed Pulsar 220 CC. Wehaveseen that however the market for this type
of bikes is not so big at presentbut it will grow in the coming future.
Marketing analysis of Bajaj Pulsar 220CC
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Introduction
Bajaj Auto Ltd. (BAL) is one of the oldest and the largest manufacturer of
automobiles in India and has been the market leader in scooters. In 1990s, the
near monopolistic market structure, perhaps, lulled the company into being
complacent and they gave way to the competitors like Hero Honda and TVS.
Bajaj Auto is the flagship of the Bajaj Group of Companies. Bajaj is currently
India's largest two- and three-wheeler manufacturer and one of the biggest in the
world. Bajaj has long left behind its annual turnover of Rs. 72 million (1968), to
currently register an impressive figure of Rs. 81.06 billion.
Marketing analysis of Bajaj Pulsar 220CC
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Situational Analysis
We will do the situational analysis of the situational analysis of Bajaj Pulsar
220 CC on the basis of 4-C’s.
Customer Analysis:
We have seen a dramatic change in the behaviour of the Indian bike
consumer. We have seen the change in customer’s preference towards fuel-
efficient and aesthetically appealing models, which scooter manufacturers
failed to provide. Now the customer wants more and more power and style.
Keeping the situation in the view Bajaj launched bikes Pulsar 150cc, 180cc,
200cc and 220cc. The company is very optimistic about the bright future of
these high power bikes.
Competitor Analysis:
Since the launch of Karizma in June 2003 Hero Honda has been the only bike
manufacturer in the 200-250 cc segment enjoying the monopoly of this space.
But Bajaj launched the Bajaj Pulsar 220cc to break the monopoly of Hero
Honda.
Hero Honda,
45%
Bajaj, 23%
TVS, 19%
yamaha, 4%
Others,
10%
Marketing analysis of Bajaj Pulsar 220CC
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The major bike companies in the competition of Bajaj are:
 Hero Honda
 TVS
 Yamaha
Above is the market share of various 2-wheeler manufactures, whereas Hero
Honda’s Karizma is the only competitor of Bajaj’s 220cc as other players don’t
have a bike in this segment.
Company Analysis:
Principal activity of the company is to manufacture two and three wheeler
vehicles. It operates in three segments, which are Automotive, Insurance and
Investment. It has a network of 498 dealers and over 1,500 service dealers
and 162 exclusive three-wheeler dealers spread across the country. Bajaj
Auto, make and exports motor scooters, motorcycles and the auto rickshaw.
Context Analysis:
Bajaj Pulsar 220 cc with DTS-Fi (Digital Twin Spark-Fuel injected) is the first
bike from Bajaj Auto with the powerful combination of twin spark plugs and
fuel-injection technology and is an ultimate machine for the performance
motorcycle enthusiast. The latest offering has set new benchmarks in
technology, performance, and styling to address the needs of a growing
segment of pro-bikers.
Marketing analysis of Bajaj Pulsar 220CC
8 | P a g e
STEEPLE Analysis
Social:
The two wheeler industry has revolutionised in the past few years. We
have seen how the bikes have over taken to the scooters. Also the
demand and desires of the peoples of the India has changed
tremendously. Earlier the mileage of the bikes was the biggest point of
concern for the Indians, but now the scenario has changed now. People
wantmore power and resultant is tan now bike companies are targeting
more towards the high speed bike segment. All the big players such as
Bajaj, Hero Honda, TVS and Yamaha have launched bikes in the range of
150 CC to 300 CC.
Bajaj has launched Avenger (180CC), Pulsar (150CC, 180CC, 200CC,
220CC)
Technological:
The new Pulsar DTS-Fi (Digital Twin Spark-Fuel injected) is the first
bike from Bajaj Auto with the powerfulcombination of twin spark plugs
and fuel-injection technology and is an ultimate machine for the
performance motorcycle enthusiast. The latest offering has set new
benchmarks in technology, performance, and styling to address the
needs of a growing segment of pro-bikers. The biggest feature is the fuel
injection, which gives the bike that linear power curve, crisp feel and
instant throttle response so essential for a power bike. Besides the
mesmerizing looks, the motorcycle boasts a highly refined low noise, no
vibes 220cc motor that gives a ready 20 BHP & 1.95 kgm of torque. The
bike also comes equipped with an Oil cooler, which helps maintain Lube
oil viscosity under extreme conditions of stress and ambient
temperatures. It helps in cooling the engine internals.
Economical:
Economicalfactors contributeto whole country’speople. Currently,
there is a recession going on. It affects in savingthe money of people.
This affects in less buying. Dueto recession every automobile company
is facing the problem of stock not movingout/ customersare not buying
Marketing analysis of Bajaj Pulsar 220CC
9 | P a g e
the products. Also, inflation is another factor which affects. Dueto this
process of vehicles are increasing dueto increase in the prices of
complimentary products.
The bike is already highly priced with the price of around Rs92,000 (On
road) so any increase in the prices of the raw materials will increase the
cost of the bike and it would be difficult for the company to maintain the
current market share.
Environmental:
Increasing global warming is the threat for all of us. The increase in the
numbers of the bikes will increase the pollution. Ecological factors
implies to our surroundings and environment. The pollution is affecting
badly to our environment. The carbon mono-oxide coming out from the
vehicles affects to the health of people. As previously mention that Bajaj
is producing the vehicles at 100% non-polluting vehicles. So it is not
affecting the ecology much more.
Political and Legal:
Any increase in the road taxes or any related taxes by the governmentwill
increase the cost of the bike and it would be difficultfor the company to
maintain the currentmarket share. In Indiapolitical environmentisnotso
good. Political parties are looking for there own welfareinstead of helping
to the society. Dueto this Indiais lagging behind in developmentaswell.
There are certain political factors which affects the workingof the
company. The company hasto fulfillcertain rulesand regulations which
have to be adopted by the company.
Ethical:
Ethics relates to “what is right and what is wrong”. Various kinds of
frauds are increasing at a corporate level. The new high power and high
Marketing analysis of Bajaj Pulsar 220CC
10 | P a g e
speed bikes will increase the number of road accidents and causalities.
So it is necessary to limit the speed and power of the bikes according to
the roads of the country. The Satyam case is the example of unethical
practice. Due to this people have lost their jobs. But as far as Bajaj is
concern the company not involve in this unethical factors.
Marketing analysis of Bajaj Pulsar 220CC
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S.W.O.T. ANALYSIS
S.W.O.T. ANALYSIS OF BAJAJ PULSAR 220cc
STRENGTHS:
 Pulsar 220cc features India’s FirstOilCooled Engine which offers a cool
20bhp to delivers maximum power making it mostpowerfulengine offered
by Bajaj.
 New Pulsar also provides Digital Speedometer, Self Cancelling Indicators
which is for the firsttime in this segmentin India.
 Fuel efficiency: Pulsar 220cc delivers an impressivemileage of 35.2 kmplin
city as compared to Karizma which delivers 30 kmpl in city.
 Customer Base: In pastdecade Bajaj has established a strong baseamongst
its customers.
WEAKNESS:
 Style and Design: PULSAR200cc and 220cc derives their styling fromtheir
previous version Pulsar 150 Dts-iand 180 Dts-i.
 Pricing ; Bajaj 220cc(Rs 82449 basic price) is costlier than karizma(Rs 78000
basic price)
OPPORTUNITIES:
 If they derive new styling, shape, design for pulsar 200cc and 220cc then
they can attract more customers.
 Taking into consideration the reviews of the customers regarding the
“fairing” of 300cc and making the needful changes will be an opportunity to
capture an even larger shareof the 220cc segment.
 Increasein the demand fromoverseas.
THREATS:
 The biggest threat is faced fromthe goodwill of Karizma in this segment
who is the “Four-StrokeTwo Wheeler Ruler” of the Indian bike market.
Marketing analysis of Bajaj Pulsar 220CC
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 Certain technical faults in the bike design which are potentially dangerous
to the rider’s safety can be disastrous to the image of the bike.
 Tata’s NANO, the smallest and the cheapest car of the world, is a great
threat because the price of both are near to Rs 1 lakh.
Marketing analysis of Bajaj Pulsar 220CC
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Tows Matrix for Bajaj Pulsar 220CC
External Factors
Internal Factors
Strengths
 Pulsar 220cc features
India’s First Oil Cooled
Engine which offers a cool
20bhp to delivers
maximum power
 New Pulsar also provides
Digital Speedometer, Self
Cancelling Indicators
which is for the first time in
this segment in India.
 Fuel efficiency: Pulsar
220cc delivers an
impressive mileage of 35.2
kmpl in city
 Customer Base: In past
decade Bajaj has
established a strong base
amongst its customers.
Weaknesses
 Style and Design: PULSAR
200cc and 220cc derives
their styling from their
previous version Pulsar 150
Dts-i and 180 Dts-i.
 Pricing ; Bajaj 220cc(Rs
82449 basic price) is
costlier than karizma(Rs
78000 basic price)
Opportunities
 New styling, shape, design
for pulsar 200cc and 220cc
then they can attract more
customers.
 Customer’s good reviews
about “fairing” of 300cc
 Demand from overseas
 By making the needful
changes Bajaj Pulsar 220
cc can capture an even
larger share of the
segment.
 New technology can help
the company to increase
the demand from overseas
 Good customer base in India
and demand from abroad con
help the company to go ahead
with the existing prices.
Threats
 The biggest threat is faced
from the goodwill of Karizma
in this segment
 Certain technical faults in
the bike design which are
potentially dangerous to the
rider’s safety
 Tata’s NANO, the smallest
and the cheapest car of the
world, is a great threat
because the price of both
are near to Rs 1 lakh.
 Huge customer base can help
the Pulsar to face the
competition of Karizma.
 Good R&D can help the
company to remove the
faults.
 Nano will adversely affect the
target market of the Pulsar
220cc
 Any improvement in the looks
of Karizma can snatch the
market share.
Marketing analysis of Bajaj Pulsar 220CC
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Michael Porter’s Five Forces Analysis
1. Entry Barriers:
a. Entry barriers are high.
b. The market runs on high economies of scale and on high economies
of scope.
c. The need for technical expertise is high.
Owning a strong distribution network is important and is very costly.
All these make the barrier high enough to be a deterrent for new
entrants.
2. Supplier Bargaining Power:
Suppliers of auto components are fragmented and are extremely critical for
this industry sincemost of the component work is outsourced. Proper
supply chain management is a costly yet critical need.
Marketing analysis of Bajaj Pulsar 220CC
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3. Buyer's Bargaining Power:
Buyers in automobile markethave more choice to choose fromand the
increasing competition is driving the bargaining power of customers uphill.
With more models to choosefrom in almost all categories, the market
forces haveempowered the buyers to a large extent.
4. Industry Rivalry:
The industry rivalry is extremely high with any productbeing matched in a
few months by competitor. This instinct of the industry is primarily driven
by the technical capabilities acquired over years of gestation under the
technical collaboration with international players.
5. Substitutes:
There is no perfect substitute to this industry. Also, if there is any substitute
to a two-wheeler, Bajaj has presence in it. Cars, which again are a mode of
transport, do never directly compete or come in consideration while
selecting a two-wheeler, cycles do never even compete with the low entry
level moped for even this choice comes at a comparatively higher economic
potential.
Summarizing the industry analysis, it can be said that the two-wheeler
market is attractive as it scores well on three out of five categories.
Marketing analysis of Bajaj Pulsar 220CC
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The BCG Matrix for BAJAJ AUTO
BCG was develop by bruce hendersen in1970 to help the organization and with
analyzing their business unit or product line.BCG develop the simple conceptual
framework named the growth share matrix to help the corporate manger
determine the position of the business.
The BCG Matrix for BAJAJ AUTO
Stars
 Pulsar150cc & 180cc
Question mark
 XCD 125cc
 Discover 135cc
 Pulsar 200cc & 220cc
Cows
 Discover 125cc
 CT100
Dogs
 Platina
 Avenger
 Kristal
Stars:
They have high relative market share and high growth rate. Bajaj pulsar
150&180cc require large investment to finance growth they provide good returns
to the company strategies adopted obtaining the large share and involving CRM
activities. Thus they are the market leader to the company.
Question mark:
There are also called as wild cats that are new product with potential (or success
but there cash needs are high and cash generation is low pulsar200&220cc and
XCD have lot of potential in the market but there is poor profit margin.
Strategies adopted are harvest divest and Drop.
Cash Cow:
Marketing analysis of Bajaj Pulsar 220CC
17 | P a g e
It has high relative market share but compete in low growth rate as they generate
cash in excess of their needs. Discover125cc & CT 100 are the profitable products
and generate more cash strategies adopted are Ihey provide best price and use
excess cash to develop a new product in the market.
Dogs:
Dogs have no market share and do not have potential lo bring in much cash.
Platina, Avenger & Kristal are not able to generate profit thus giving some new
feature and try to sale the product the strategies adopted should be reduction in
product cost.
Marketing analysis of Bajaj Pulsar 220CC
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BusinessstrengthGE Matrix Analysis
Market attractiveness
Strong Medium Weak
High
Pulsar 150
180cc (invest
to grow)
CT100
(reinforce
vulnerable
areas)
Pulsar
200&220CC
(seek ways to
overcome
weakness)
Medium
Discover
125cc
(invest
heavily)
Discover
135cc (Manage
per earning)
Avenger
(look ways for
expansion)
Low
XCD
(Manage f or
current
earning)
Platina
(upgrade
product line)
Kristal
(cut f ixed cost)
The nine cells GE Matrix are groome grouped on the basis of Low-High industry
attractiveness and weak to strong business or competitive position. Zones are
made each indicating different combinations that are as follows
1. The upper left corner indicate strong SBU's i.e pulsar 150&180cc. discover
125cc. discover in which the company should invest or grow with strategic
decisions such as market development or expansion.
2. The diagonals cells stretching from lower left to upper-right indicate SBU's
that are XCD. CT100. Pulsar 200&220cc Medium in overall attractiveness
indicating hold and maintain current strategies.
Marketing analysis of Bajaj Pulsar 220CC
19 | P a g e
3. The 3 cells in the lower right corner indicate SBU's that are low in overall
attractiveness that are avenger, krislal. platina. indicating retrenchment
strategies of divestment and closure adopting turnaround strategies.
Marketing analysis of Bajaj Pulsar 220CC
20 | P a g e
Product Life Cycle
A new product progress through a sequence of stages from introduction to growth,
maturity and decline. This sequence is known as the product life cycle and is associated
with changes Inthe marketing situation, thus impacting the marketing strategy.
The different stages in a product life cycle of BAJAJ AUTO areasfollows
Introduction Stage:
In the introduction stage, the firm seeks to build product awareness and develop a
market for the product. The product of Baja auto in this stage is pulsar 200 & 220cc, XCD
& Discover 135cc these products are introduce newly to the market and have a potential
for cashgeneration.
Growth Stage:
In the growth stage, the firm seeks to build brand preference and increase the market
share. Bajaj auto products in this stage are Bajaj pulsar 150&180CC. they have high
demand in market and they provide good return to the company.
Maturity Stage:
At maturity, the strong growth in sale diminishes. Competition may appear with similar
product. The primary objective at this point is to defend market share while maximizing
the profit. Bajaj auto product in this stage is CT100 & Bajaj discover 125cc there is low
Marketing analysis of Bajaj Pulsar 220CC
21 | P a g e
growth of this product due to low level of innovation. There is a price reduction due to
increase in competition thus profit isdecline
DeclineStage:
Avenger platina market get new substitute product and new technologies thus the
demand goes down in these stage thus the company can plan following strategies such as
turnaround divest etc. here areprofit very low.
Marketing analysis of Bajaj Pulsar 220CC
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Marketing Mix
1. Product:
The new Pulsar DTS-Fi (Digital Twin Spark-Fuel injected) is the first bike
from Bajaj Auto with the powerful combination of twin spark plugs and
fuel-injection technology and is an ultimate machine for the performance
motorcycle enthusiast. The latest offering has set new benchmarks in
technology, performance, and styling to address the needs of a growing
segment of pro-bikers. The biggest feature is the fuel Injection, which gives
the bike that linear power curve, crisp feel and instant throttle response so
essential for a power bike. Besides the mesmerizing looks, the motorcycle
boasts a highly refined low noise, no vibes 220cc motor that gives a ready
20 BHP & 1.95 kgm of torque. The bike also comes equipped with an Oil
cooler, which helps maintain Lube oil viscosity under extreme conditions of
stress and ambient temperatures. It helps in cooling the engine internals.
The bike will only be available in first-of-its-kind chain of 'Probiking'
showrooms. Designed for biking enthusiasts, the showroom offers
prospective "probikers" a chance to test-ride the bikes on a specially
designed Indoor dynamometer It's also features both front and rear
tubeless tyres, which besides offering superior stability are safer than
conventional tube types and in sync with the offerings abroad for similar
applications. The rear tyre 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 220 cc Pulsar DTS-Fi 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. Another is the use of split seats for styling and comfort. The split
grab rail perfectly compliments the new rear chiseled looks. It is equipped
with an electric start as the sole means of engine cranking, dispensing with
the kick lever.
Marketing analysis of Bajaj Pulsar 220CC
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MMooddeell:: BBAAJJAAJJ PPuullssaarr 222200 HHeerroo HHoonnddaa
KKaarriizzmmaa
DDiissppllaacceemmeenntt:: 222200..0000 cccc 222233..0000 cccc
PPoowweerr:: 2200 HHPP 1177..0000 HHPP
TToorrqquuee:: 1199..1122 NNmm 1188..4400 NNmm
EEnnggiinnee ttyyppee:: SSiinnggllee CCyylliinnddeerr ((AAiirr aanndd
OOiill ccoooolleedd))
SSiinnggllee CCyylliinnddeerr ((AAiirr
ccoooolleedd))
FFrroonntt BBrraakkee:: DDiisscc TTyyppee DDiisscc TTyyppee
RReeaarr BBrraakkee:: DDiisscc TTyyppee DDrruumm TTyyppee
TToopp ssppeeeedd:: 113355..00 kkmm//hh 112255..00 kkmm//hh
TTyyrree TTyyppee:: TTuubbeelleessss WWiitthh TTuubbee
2. Price:
Bajaj Auto Ltd has judiciously used its resources and all the components of
this bike are manufactured and produced in India. To lower the price of the
bike most of the parts used in pulsar 220-dts fi will be identical to those of
its siblings (150, 180, and 200) and therefore raw material can be ordered
in bulk. Pulsar 220cc DTS FI is offered in silver, blue and red. Pulsar 220cc
DTS FI is priced differently for each of its limited bookings. Finally it is priced
Rs87,125(ex-showroom price) in Delhi
3. Promotion:
Bajaj Auto Ltd will not be using any celebrity or stars as Bajaj understands
that it’s the people of India and specifically the youth who will be using this
bike and therefore the advertisements are made keeping the youth in
mind. All the advertisements campaigns are youth oriented. Bajaj will also
promote its pro-biking concept by providing high quality services to its
premium bike owners.
Marketing analysis of Bajaj Pulsar 220CC
24 | P a g e
4. Place (distribution):
These bikes will be sold only through Probiking showrooms
Customer Analysis
The new Bajaj Pulsar 220 cc is attracting the customer very much. The
advanced technology such as Digital Twin Spark-Fuel injected, front and
rear tubeless tyres, and new oil cooling system.
But according to the customer the price of the bike is more. The price of Rs
92,000 on road is near to psychological barrier of Rs 1 lakh.
There are some technological problems in the bike which are disappointing
to the customers. The company has improved the latest bikes and the
problems are being solved.
Marketing analysis of Bajaj Pulsar 220CC
25 | P a g e
Value Chain Analysis
Value Chain Analysis describes the activities that take place in a business and
relates them to an analysis of the competitive strength of the business. Influential
work by Michael Porter suggested that the activities of a business could be
grouped under two headings:
(1) Primary Activities - those that are directly concerned with creating and
delivering a product (e.g. component assembly); and
(2) Support Activities, which whilst they are not directly involved in production,
may increase effectiveness or efficiency (e.g. human resource management). It is
rare for a business to undertake all primary and support activities.
Value Chain Analysis is one way of identifying which activities are best undertaken
by a business and which are best provided by others ("out sourced").
Linking Value Chain Analysis to Competitive Advantage
What activities a business undertakes is directly linked to achieving competitive
advantage. For example, a business which wishes to outperform its competitors
through differentiating itself through higher quality will have to perform its value
chain activities better than the opposition. By contrast, a strategy based on
seeking cost leadership will require a reduction in the costs associated with the
value chain activities, or a reduction in the total amount of resources used.
Marketing analysis of Bajaj Pulsar 220CC
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Primary Activities
Primary value chain activities of Bajaj Pulsar include:
Primary
Activity
Description
Inbound
logistics
All those activities concerned with receiving and storing externally
sourced materials
Operations The manufacture of bikes - the way in which resource inputs (e.g.
materials) are converted to outputs (e.g. products)
Outbound
logistics
All those activities associated with getting a bikes and services to
buyers
Marketing
and sales
Essentially an information activity - informing buyers and
consumers about products and services (benefits, use, price etc.)
Service All those activities associated with maintaining bikes performance
after the product has been sold
Support Activities
Support activities of Bajaj Pulsar include:
Secondary
Activity
Description
Procurement This concerns how resources are acquired for a business.
Human
Resource
Management
Those activities concerned with recruiting, developing, motivating
and rewarding the workforce of a business which includes the
sales of the bikes
Technology
Development
Activities concerned with looking in to technological assistance of
the machine of the bikes
Infrastructure Concerned with a wide range of support systems and functions
such as maintaining the quality of bikes, etc.
Marketing analysis of Bajaj Pulsar 220CC
27 | P a g e
Primary Activities.
Inbound Logistics.
Here goods are received from a company's suppliers. They are stored until they
are needed on the production/assembly line. Goods are moved around the
organisation.
Operations.
This is where goods are manufactured or assembled. Individual operations could
include room service in an hotel, packing of books/videos/games by an online
retailer, or the final tune for a new bike’s engine.
Outbound Logistics.
The goods are now finished, and they need to be sent along the supply chain to
wholesalers, retailers or the final consumer.
Marketing and Sales.
In true customer orientated fashion, at this stage the organisation prepares the
offering to meet the needs of targeted customers. This area focuses strongly upon
marketing communications and the promotions mix.
Service.
This includes all areas of service such as installation, after-sales service,
complaints handling, training and so on.
Support Activities.
Procurement.
This function is responsible for all purchasing of goods, services and materials.
The aim is to secure the lowest possible price for purchases of the highest
possible quality. They will be responsible for outsourcing (components or
operations that would normally be done in-house are done by other
organisations), and ePurchasing (using IT and web-based technologies to achieve
procurement aims).
Marketing analysis of Bajaj Pulsar 220CC
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Technology Development.
Technology is an important source of competitive advantage. Companies need to
innovate to reduce costs and to protect and sustain competitive advantage. This
could include production technology, Internet marketing activities, lean
manufacturing, Customer Relationship Management (CRM), and many other
technological developments.
Human Resource Management (HRM).
Employees are an expensive and vital resource. An organisation would manage
recruitment and s election, training and development, and rewards and
remuneration. The mission and objectives of the organisation would be driving
force behind the HRM strategy.
Firm Infrastructure.
This activity includes and is driven by corporate or strategic planning. It includes
the Management Information System (MIS), and other mechanisms for planning
and control such as the accounting department.
Marketing analysis of Bajaj Pulsar 220CC
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Segmentation:
Market segmentation will be done considering that this bike will be for
premium buyers who pay more emphasis to performance. Secondly this
bike will be higher on the price range in the lights of karizma and will only
be available through pro- biking showrooms which will be company owned
initially. These pro-biking showrooms will only be opened in cities like Pune
, Mumbai , Delhi , Banglore , Jaipur ,Chennai
New pro-biking showrooms will be opened by the coming in various other
cities as per the demand from the cities.
Positioning:
Brand Name: The name of a company will also help to differentiate itself
and build image in the long run. It will try to use its brand name to pierce
the Indian market and revolutionize the two wheeler market
Promotion Based Marketing Strategy: Promotions will be done through
youth- based advertisements and Bajaj won’t be using any celebrities as it is
not the stars who will be using the bikes.
Pro-biking concept: One of the most important marketing strategies will be
the launch of pro-biking concept in which professional biking showrooms
will be opened, providing not only premium bikes but value added services
like dynamo test, online booking, performance parts for premium bikes,
bike apparels and accessories. This biking concept will be the first of its
kind, revolutionalising the complete biking scene in India
Target Market:
PULSAR 220cc targeted at the youth segment, the Bajaj Pulsar has been
designed and styled as a mean masculine robust machine with dazzling
looks and technically advanced mechanism that offers great performance.
The target market of Bajaj Pulsar 220 CC is the young generation people
who want speed, action and power. In the recent past there is a high
growth in the demand for high speed and power bikes. Honda pioneered
the segment but Bajaj Pulsar has beaten them.
Marketing analysis of Bajaj Pulsar 220CC
30 | P a g e
Differentiation:
On the basis of design:
The new Pulsar DTS-Fi (Digital Twin Spark-Fuel injected) is the first bike
from Bajaj Auto with the powerful combination of twin spark plugs and
fuel-injection technology and is an ultimate machine for the performance
motorcycle enthusiast. The latest offering has set new benchmarks in
technology, performance, and styling to address the needs of a growing
segment of pro-bikers. The bike produces 20 bhp peak power, with 1.95
Kgm of torque. The bike can go to the top speed of 135.0 km/h
Marketing analysis of Bajaj Pulsar 220CC
31 | P a g e
Five Year Plan
The above graph shows thatBajaj Pulsar is doing very nicely in the market. Also
fromthe BCG and GE Matrices we can conclude that for Bajaj Pulsar 220 cc the
company should try to increasethe market shareand should try to overcome the
weaknesses.
In the next five year company should try to
 Increasethe marketshare
 Increasethe export
 Exploit the good customer base so that it could become the star productfor
the company.
In the coming year the prices of raw materials are also going to riseso it’s very
much necessary to adopt the pricing strategy according to the future prices.
Marketing analysis of Bajaj Pulsar 220CC
32 | P a g e
Bibliography
http://autos.maxabout.com/twid0000353/bajaj-new-pulsar-220-dts-fi.aspx
http://123fungama.blogspot.com/2007/02/bajajs-pulsar-dts-fi-220cc-
motorcycle.html
http://www.coolavenues.com
http://blog.neo999.com
http://business.techwhack.com/category/automobiles-and-sport
http://bajajpulsar.com
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91009887 pulsar220 cc

  • 1. Homework Help https://www.homeworkping.com/ Research Paper help https://www.homeworkping.com/ Online Tutoring https://www.homeworkping.com/ click here for freelancing tutoring sites Babasaheb Gawde Institute of Management Studies Mumbai Central 2009 Nilesh Maurya MMS II A Roll No 34 Marketing Analysis of Bajaj Pulsar 220 CC
  • 2. Marketing analysis of Bajaj Pulsar 220CC 2 | P a g e Marketing Application And Practices Index
  • 3. Marketing analysis of Bajaj Pulsar 220CC 3 | P a g e Particulars Pg No. Executive summary 3 Introduction 4 Situational Analysis 5 Steeple Analysis 7 SWOT Analysis 10 Tows Matrix 12 MichaelPorter’s Analysis 13 BCG Matrix 15 GE Matrix Analysis 17 Product Life Cycle (PLC) 19 Marketing Mix 21 Customer Analysis 23 Value Chain Analysis. 24 Segmentation, Target Market, Positioning And Differentiation. 28 5 FinancialPlan 30
  • 4. Marketing analysis of Bajaj Pulsar 220CC 4 | P a g e Executive Summary This reporton Bajaj Pulsar 220CC isdone to find out certain aspects related to marketing adopted by Bajaj Auto India to stand strongly in the competitive 2 wheeler’s automobile market. Bajaj’s marketing strategies are analyses using variousmodelslike SWOT analysis, BCG Matrix, GE matrix, porter’s five forces etc. The outcomes of these models are properly analyzed to find out the various aspects like companies position and competitors position in the market. This report on Bajaj not just give description about the company but it also talks about the various marketing strategy adopted by the company. SWOT analysis of Bajaj helps to find out the weak points of the company and to find out the way to overcome this problem. Bajaj is the India'sleadingmanufacturer of 2-wheelers. Recently they have launched bikes keepingthe youthcustomer in the view. Here we have analysed Pulsar 220 CC. Wehaveseen that however the market for this type of bikes is not so big at presentbut it will grow in the coming future.
  • 5. Marketing analysis of Bajaj Pulsar 220CC 5 | P a g e Introduction Bajaj Auto Ltd. (BAL) is one of the oldest and the largest manufacturer of automobiles in India and has been the market leader in scooters. In 1990s, the near monopolistic market structure, perhaps, lulled the company into being complacent and they gave way to the competitors like Hero Honda and TVS. Bajaj Auto is the flagship of the Bajaj Group of Companies. Bajaj is currently India's largest two- and three-wheeler manufacturer and one of the biggest in the world. Bajaj has long left behind its annual turnover of Rs. 72 million (1968), to currently register an impressive figure of Rs. 81.06 billion.
  • 6. Marketing analysis of Bajaj Pulsar 220CC 6 | P a g e Situational Analysis We will do the situational analysis of the situational analysis of Bajaj Pulsar 220 CC on the basis of 4-C’s. Customer Analysis: We have seen a dramatic change in the behaviour of the Indian bike consumer. We have seen the change in customer’s preference towards fuel- efficient and aesthetically appealing models, which scooter manufacturers failed to provide. Now the customer wants more and more power and style. Keeping the situation in the view Bajaj launched bikes Pulsar 150cc, 180cc, 200cc and 220cc. The company is very optimistic about the bright future of these high power bikes. Competitor Analysis: Since the launch of Karizma in June 2003 Hero Honda has been the only bike manufacturer in the 200-250 cc segment enjoying the monopoly of this space. But Bajaj launched the Bajaj Pulsar 220cc to break the monopoly of Hero Honda. Hero Honda, 45% Bajaj, 23% TVS, 19% yamaha, 4% Others, 10%
  • 7. Marketing analysis of Bajaj Pulsar 220CC 7 | P a g e The major bike companies in the competition of Bajaj are:  Hero Honda  TVS  Yamaha Above is the market share of various 2-wheeler manufactures, whereas Hero Honda’s Karizma is the only competitor of Bajaj’s 220cc as other players don’t have a bike in this segment. Company Analysis: Principal activity of the company is to manufacture two and three wheeler vehicles. It operates in three segments, which are Automotive, Insurance and Investment. It has a network of 498 dealers and over 1,500 service dealers and 162 exclusive three-wheeler dealers spread across the country. Bajaj Auto, make and exports motor scooters, motorcycles and the auto rickshaw. Context Analysis: Bajaj Pulsar 220 cc with DTS-Fi (Digital Twin Spark-Fuel injected) is the first bike from Bajaj Auto with the powerful combination of twin spark plugs and fuel-injection technology and is an ultimate machine for the performance motorcycle enthusiast. The latest offering has set new benchmarks in technology, performance, and styling to address the needs of a growing segment of pro-bikers.
  • 8. Marketing analysis of Bajaj Pulsar 220CC 8 | P a g e STEEPLE Analysis Social: The two wheeler industry has revolutionised in the past few years. We have seen how the bikes have over taken to the scooters. Also the demand and desires of the peoples of the India has changed tremendously. Earlier the mileage of the bikes was the biggest point of concern for the Indians, but now the scenario has changed now. People wantmore power and resultant is tan now bike companies are targeting more towards the high speed bike segment. All the big players such as Bajaj, Hero Honda, TVS and Yamaha have launched bikes in the range of 150 CC to 300 CC. Bajaj has launched Avenger (180CC), Pulsar (150CC, 180CC, 200CC, 220CC) Technological: The new Pulsar DTS-Fi (Digital Twin Spark-Fuel injected) is the first bike from Bajaj Auto with the powerfulcombination of twin spark plugs and fuel-injection technology and is an ultimate machine for the performance motorcycle enthusiast. The latest offering has set new benchmarks in technology, performance, and styling to address the needs of a growing segment of pro-bikers. The biggest feature is the fuel injection, which gives the bike that linear power curve, crisp feel and instant throttle response so essential for a power bike. Besides the mesmerizing looks, the motorcycle boasts a highly refined low noise, no vibes 220cc motor that gives a ready 20 BHP & 1.95 kgm of torque. The bike also comes equipped with an Oil cooler, which helps maintain Lube oil viscosity under extreme conditions of stress and ambient temperatures. It helps in cooling the engine internals. Economical: Economicalfactors contributeto whole country’speople. Currently, there is a recession going on. It affects in savingthe money of people. This affects in less buying. Dueto recession every automobile company is facing the problem of stock not movingout/ customersare not buying
  • 9. Marketing analysis of Bajaj Pulsar 220CC 9 | P a g e the products. Also, inflation is another factor which affects. Dueto this process of vehicles are increasing dueto increase in the prices of complimentary products. The bike is already highly priced with the price of around Rs92,000 (On road) so any increase in the prices of the raw materials will increase the cost of the bike and it would be difficult for the company to maintain the current market share. Environmental: Increasing global warming is the threat for all of us. The increase in the numbers of the bikes will increase the pollution. Ecological factors implies to our surroundings and environment. The pollution is affecting badly to our environment. The carbon mono-oxide coming out from the vehicles affects to the health of people. As previously mention that Bajaj is producing the vehicles at 100% non-polluting vehicles. So it is not affecting the ecology much more. Political and Legal: Any increase in the road taxes or any related taxes by the governmentwill increase the cost of the bike and it would be difficultfor the company to maintain the currentmarket share. In Indiapolitical environmentisnotso good. Political parties are looking for there own welfareinstead of helping to the society. Dueto this Indiais lagging behind in developmentaswell. There are certain political factors which affects the workingof the company. The company hasto fulfillcertain rulesand regulations which have to be adopted by the company. Ethical: Ethics relates to “what is right and what is wrong”. Various kinds of frauds are increasing at a corporate level. The new high power and high
  • 10. Marketing analysis of Bajaj Pulsar 220CC 10 | P a g e speed bikes will increase the number of road accidents and causalities. So it is necessary to limit the speed and power of the bikes according to the roads of the country. The Satyam case is the example of unethical practice. Due to this people have lost their jobs. But as far as Bajaj is concern the company not involve in this unethical factors.
  • 11. Marketing analysis of Bajaj Pulsar 220CC 11 | P a g e S.W.O.T. ANALYSIS S.W.O.T. ANALYSIS OF BAJAJ PULSAR 220cc STRENGTHS:  Pulsar 220cc features India’s FirstOilCooled Engine which offers a cool 20bhp to delivers maximum power making it mostpowerfulengine offered by Bajaj.  New Pulsar also provides Digital Speedometer, Self Cancelling Indicators which is for the firsttime in this segmentin India.  Fuel efficiency: Pulsar 220cc delivers an impressivemileage of 35.2 kmplin city as compared to Karizma which delivers 30 kmpl in city.  Customer Base: In pastdecade Bajaj has established a strong baseamongst its customers. WEAKNESS:  Style and Design: PULSAR200cc and 220cc derives their styling fromtheir previous version Pulsar 150 Dts-iand 180 Dts-i.  Pricing ; Bajaj 220cc(Rs 82449 basic price) is costlier than karizma(Rs 78000 basic price) OPPORTUNITIES:  If they derive new styling, shape, design for pulsar 200cc and 220cc then they can attract more customers.  Taking into consideration the reviews of the customers regarding the “fairing” of 300cc and making the needful changes will be an opportunity to capture an even larger shareof the 220cc segment.  Increasein the demand fromoverseas. THREATS:  The biggest threat is faced fromthe goodwill of Karizma in this segment who is the “Four-StrokeTwo Wheeler Ruler” of the Indian bike market.
  • 12. Marketing analysis of Bajaj Pulsar 220CC 12 | P a g e  Certain technical faults in the bike design which are potentially dangerous to the rider’s safety can be disastrous to the image of the bike.  Tata’s NANO, the smallest and the cheapest car of the world, is a great threat because the price of both are near to Rs 1 lakh.
  • 13. Marketing analysis of Bajaj Pulsar 220CC 13 | P a g e Tows Matrix for Bajaj Pulsar 220CC External Factors Internal Factors Strengths  Pulsar 220cc features India’s First Oil Cooled Engine which offers a cool 20bhp to delivers maximum power  New Pulsar also provides Digital Speedometer, Self Cancelling Indicators which is for the first time in this segment in India.  Fuel efficiency: Pulsar 220cc delivers an impressive mileage of 35.2 kmpl in city  Customer Base: In past decade Bajaj has established a strong base amongst its customers. Weaknesses  Style and Design: PULSAR 200cc and 220cc derives their styling from their previous version Pulsar 150 Dts-i and 180 Dts-i.  Pricing ; Bajaj 220cc(Rs 82449 basic price) is costlier than karizma(Rs 78000 basic price) Opportunities  New styling, shape, design for pulsar 200cc and 220cc then they can attract more customers.  Customer’s good reviews about “fairing” of 300cc  Demand from overseas  By making the needful changes Bajaj Pulsar 220 cc can capture an even larger share of the segment.  New technology can help the company to increase the demand from overseas  Good customer base in India and demand from abroad con help the company to go ahead with the existing prices. Threats  The biggest threat is faced from the goodwill of Karizma in this segment  Certain technical faults in the bike design which are potentially dangerous to the rider’s safety  Tata’s NANO, the smallest and the cheapest car of the world, is a great threat because the price of both are near to Rs 1 lakh.  Huge customer base can help the Pulsar to face the competition of Karizma.  Good R&D can help the company to remove the faults.  Nano will adversely affect the target market of the Pulsar 220cc  Any improvement in the looks of Karizma can snatch the market share.
  • 14. Marketing analysis of Bajaj Pulsar 220CC 14 | P a g e Michael Porter’s Five Forces Analysis 1. Entry Barriers: a. Entry barriers are high. b. The market runs on high economies of scale and on high economies of scope. c. The need for technical expertise is high. Owning a strong distribution network is important and is very costly. All these make the barrier high enough to be a deterrent for new entrants. 2. Supplier Bargaining Power: Suppliers of auto components are fragmented and are extremely critical for this industry sincemost of the component work is outsourced. Proper supply chain management is a costly yet critical need.
  • 15. Marketing analysis of Bajaj Pulsar 220CC 15 | P a g e 3. Buyer's Bargaining Power: Buyers in automobile markethave more choice to choose fromand the increasing competition is driving the bargaining power of customers uphill. With more models to choosefrom in almost all categories, the market forces haveempowered the buyers to a large extent. 4. Industry Rivalry: The industry rivalry is extremely high with any productbeing matched in a few months by competitor. This instinct of the industry is primarily driven by the technical capabilities acquired over years of gestation under the technical collaboration with international players. 5. Substitutes: There is no perfect substitute to this industry. Also, if there is any substitute to a two-wheeler, Bajaj has presence in it. Cars, which again are a mode of transport, do never directly compete or come in consideration while selecting a two-wheeler, cycles do never even compete with the low entry level moped for even this choice comes at a comparatively higher economic potential. Summarizing the industry analysis, it can be said that the two-wheeler market is attractive as it scores well on three out of five categories.
  • 16. Marketing analysis of Bajaj Pulsar 220CC 16 | P a g e The BCG Matrix for BAJAJ AUTO BCG was develop by bruce hendersen in1970 to help the organization and with analyzing their business unit or product line.BCG develop the simple conceptual framework named the growth share matrix to help the corporate manger determine the position of the business. The BCG Matrix for BAJAJ AUTO Stars  Pulsar150cc & 180cc Question mark  XCD 125cc  Discover 135cc  Pulsar 200cc & 220cc Cows  Discover 125cc  CT100 Dogs  Platina  Avenger  Kristal Stars: They have high relative market share and high growth rate. Bajaj pulsar 150&180cc require large investment to finance growth they provide good returns to the company strategies adopted obtaining the large share and involving CRM activities. Thus they are the market leader to the company. Question mark: There are also called as wild cats that are new product with potential (or success but there cash needs are high and cash generation is low pulsar200&220cc and XCD have lot of potential in the market but there is poor profit margin. Strategies adopted are harvest divest and Drop. Cash Cow:
  • 17. Marketing analysis of Bajaj Pulsar 220CC 17 | P a g e It has high relative market share but compete in low growth rate as they generate cash in excess of their needs. Discover125cc & CT 100 are the profitable products and generate more cash strategies adopted are Ihey provide best price and use excess cash to develop a new product in the market. Dogs: Dogs have no market share and do not have potential lo bring in much cash. Platina, Avenger & Kristal are not able to generate profit thus giving some new feature and try to sale the product the strategies adopted should be reduction in product cost.
  • 18. Marketing analysis of Bajaj Pulsar 220CC 18 | P a g e BusinessstrengthGE Matrix Analysis Market attractiveness Strong Medium Weak High Pulsar 150 180cc (invest to grow) CT100 (reinforce vulnerable areas) Pulsar 200&220CC (seek ways to overcome weakness) Medium Discover 125cc (invest heavily) Discover 135cc (Manage per earning) Avenger (look ways for expansion) Low XCD (Manage f or current earning) Platina (upgrade product line) Kristal (cut f ixed cost) The nine cells GE Matrix are groome grouped on the basis of Low-High industry attractiveness and weak to strong business or competitive position. Zones are made each indicating different combinations that are as follows 1. The upper left corner indicate strong SBU's i.e pulsar 150&180cc. discover 125cc. discover in which the company should invest or grow with strategic decisions such as market development or expansion. 2. The diagonals cells stretching from lower left to upper-right indicate SBU's that are XCD. CT100. Pulsar 200&220cc Medium in overall attractiveness indicating hold and maintain current strategies.
  • 19. Marketing analysis of Bajaj Pulsar 220CC 19 | P a g e 3. The 3 cells in the lower right corner indicate SBU's that are low in overall attractiveness that are avenger, krislal. platina. indicating retrenchment strategies of divestment and closure adopting turnaround strategies.
  • 20. Marketing analysis of Bajaj Pulsar 220CC 20 | P a g e Product Life Cycle A new product progress through a sequence of stages from introduction to growth, maturity and decline. This sequence is known as the product life cycle and is associated with changes Inthe marketing situation, thus impacting the marketing strategy. The different stages in a product life cycle of BAJAJ AUTO areasfollows Introduction Stage: In the introduction stage, the firm seeks to build product awareness and develop a market for the product. The product of Baja auto in this stage is pulsar 200 & 220cc, XCD & Discover 135cc these products are introduce newly to the market and have a potential for cashgeneration. Growth Stage: In the growth stage, the firm seeks to build brand preference and increase the market share. Bajaj auto products in this stage are Bajaj pulsar 150&180CC. they have high demand in market and they provide good return to the company. Maturity Stage: At maturity, the strong growth in sale diminishes. Competition may appear with similar product. The primary objective at this point is to defend market share while maximizing the profit. Bajaj auto product in this stage is CT100 & Bajaj discover 125cc there is low
  • 21. Marketing analysis of Bajaj Pulsar 220CC 21 | P a g e growth of this product due to low level of innovation. There is a price reduction due to increase in competition thus profit isdecline DeclineStage: Avenger platina market get new substitute product and new technologies thus the demand goes down in these stage thus the company can plan following strategies such as turnaround divest etc. here areprofit very low.
  • 22. Marketing analysis of Bajaj Pulsar 220CC 22 | P a g e Marketing Mix 1. Product: The new Pulsar DTS-Fi (Digital Twin Spark-Fuel injected) is the first bike from Bajaj Auto with the powerful combination of twin spark plugs and fuel-injection technology and is an ultimate machine for the performance motorcycle enthusiast. The latest offering has set new benchmarks in technology, performance, and styling to address the needs of a growing segment of pro-bikers. The biggest feature is the fuel Injection, which gives the bike that linear power curve, crisp feel and instant throttle response so essential for a power bike. Besides the mesmerizing looks, the motorcycle boasts a highly refined low noise, no vibes 220cc motor that gives a ready 20 BHP & 1.95 kgm of torque. The bike also comes equipped with an Oil cooler, which helps maintain Lube oil viscosity under extreme conditions of stress and ambient temperatures. It helps in cooling the engine internals. The bike will only be available in first-of-its-kind chain of 'Probiking' showrooms. Designed for biking enthusiasts, the showroom offers prospective "probikers" a chance to test-ride the bikes on a specially designed Indoor dynamometer It's also features both front and rear tubeless tyres, which besides offering superior stability are safer than conventional tube types and in sync with the offerings abroad for similar applications. The rear tyre 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 220 cc Pulsar DTS-Fi 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. Another is the use of split seats for styling and comfort. The split grab rail perfectly compliments the new rear chiseled looks. It is equipped with an electric start as the sole means of engine cranking, dispensing with the kick lever.
  • 23. Marketing analysis of Bajaj Pulsar 220CC 23 | P a g e MMooddeell:: BBAAJJAAJJ PPuullssaarr 222200 HHeerroo HHoonnddaa KKaarriizzmmaa DDiissppllaacceemmeenntt:: 222200..0000 cccc 222233..0000 cccc PPoowweerr:: 2200 HHPP 1177..0000 HHPP TToorrqquuee:: 1199..1122 NNmm 1188..4400 NNmm EEnnggiinnee ttyyppee:: SSiinnggllee CCyylliinnddeerr ((AAiirr aanndd OOiill ccoooolleedd)) SSiinnggllee CCyylliinnddeerr ((AAiirr ccoooolleedd)) FFrroonntt BBrraakkee:: DDiisscc TTyyppee DDiisscc TTyyppee RReeaarr BBrraakkee:: DDiisscc TTyyppee DDrruumm TTyyppee TToopp ssppeeeedd:: 113355..00 kkmm//hh 112255..00 kkmm//hh TTyyrree TTyyppee:: TTuubbeelleessss WWiitthh TTuubbee 2. Price: Bajaj Auto Ltd has judiciously used its resources and all the components of this bike are manufactured and produced in India. To lower the price of the bike most of the parts used in pulsar 220-dts fi will be identical to those of its siblings (150, 180, and 200) and therefore raw material can be ordered in bulk. Pulsar 220cc DTS FI is offered in silver, blue and red. Pulsar 220cc DTS FI is priced differently for each of its limited bookings. Finally it is priced Rs87,125(ex-showroom price) in Delhi 3. Promotion: Bajaj Auto Ltd will not be using any celebrity or stars as Bajaj understands that it’s the people of India and specifically the youth who will be using this bike and therefore the advertisements are made keeping the youth in mind. All the advertisements campaigns are youth oriented. Bajaj will also promote its pro-biking concept by providing high quality services to its premium bike owners.
  • 24. Marketing analysis of Bajaj Pulsar 220CC 24 | P a g e 4. Place (distribution): These bikes will be sold only through Probiking showrooms Customer Analysis The new Bajaj Pulsar 220 cc is attracting the customer very much. The advanced technology such as Digital Twin Spark-Fuel injected, front and rear tubeless tyres, and new oil cooling system. But according to the customer the price of the bike is more. The price of Rs 92,000 on road is near to psychological barrier of Rs 1 lakh. There are some technological problems in the bike which are disappointing to the customers. The company has improved the latest bikes and the problems are being solved.
  • 25. Marketing analysis of Bajaj Pulsar 220CC 25 | P a g e Value Chain Analysis Value Chain Analysis describes the activities that take place in a business and relates them to an analysis of the competitive strength of the business. Influential work by Michael Porter suggested that the activities of a business could be grouped under two headings: (1) Primary Activities - those that are directly concerned with creating and delivering a product (e.g. component assembly); and (2) Support Activities, which whilst they are not directly involved in production, may increase effectiveness or efficiency (e.g. human resource management). It is rare for a business to undertake all primary and support activities. Value Chain Analysis is one way of identifying which activities are best undertaken by a business and which are best provided by others ("out sourced"). Linking Value Chain Analysis to Competitive Advantage What activities a business undertakes is directly linked to achieving competitive advantage. For example, a business which wishes to outperform its competitors through differentiating itself through higher quality will have to perform its value chain activities better than the opposition. By contrast, a strategy based on seeking cost leadership will require a reduction in the costs associated with the value chain activities, or a reduction in the total amount of resources used.
  • 26. Marketing analysis of Bajaj Pulsar 220CC 26 | P a g e Primary Activities Primary value chain activities of Bajaj Pulsar include: Primary Activity Description Inbound logistics All those activities concerned with receiving and storing externally sourced materials Operations The manufacture of bikes - the way in which resource inputs (e.g. materials) are converted to outputs (e.g. products) Outbound logistics All those activities associated with getting a bikes and services to buyers Marketing and sales Essentially an information activity - informing buyers and consumers about products and services (benefits, use, price etc.) Service All those activities associated with maintaining bikes performance after the product has been sold Support Activities Support activities of Bajaj Pulsar include: Secondary Activity Description Procurement This concerns how resources are acquired for a business. Human Resource Management Those activities concerned with recruiting, developing, motivating and rewarding the workforce of a business which includes the sales of the bikes Technology Development Activities concerned with looking in to technological assistance of the machine of the bikes Infrastructure Concerned with a wide range of support systems and functions such as maintaining the quality of bikes, etc.
  • 27. Marketing analysis of Bajaj Pulsar 220CC 27 | P a g e Primary Activities. Inbound Logistics. Here goods are received from a company's suppliers. They are stored until they are needed on the production/assembly line. Goods are moved around the organisation. Operations. This is where goods are manufactured or assembled. Individual operations could include room service in an hotel, packing of books/videos/games by an online retailer, or the final tune for a new bike’s engine. Outbound Logistics. The goods are now finished, and they need to be sent along the supply chain to wholesalers, retailers or the final consumer. Marketing and Sales. In true customer orientated fashion, at this stage the organisation prepares the offering to meet the needs of targeted customers. This area focuses strongly upon marketing communications and the promotions mix. Service. This includes all areas of service such as installation, after-sales service, complaints handling, training and so on. Support Activities. Procurement. This function is responsible for all purchasing of goods, services and materials. The aim is to secure the lowest possible price for purchases of the highest possible quality. They will be responsible for outsourcing (components or operations that would normally be done in-house are done by other organisations), and ePurchasing (using IT and web-based technologies to achieve procurement aims).
  • 28. Marketing analysis of Bajaj Pulsar 220CC 28 | P a g e Technology Development. Technology is an important source of competitive advantage. Companies need to innovate to reduce costs and to protect and sustain competitive advantage. This could include production technology, Internet marketing activities, lean manufacturing, Customer Relationship Management (CRM), and many other technological developments. Human Resource Management (HRM). Employees are an expensive and vital resource. An organisation would manage recruitment and s election, training and development, and rewards and remuneration. The mission and objectives of the organisation would be driving force behind the HRM strategy. Firm Infrastructure. This activity includes and is driven by corporate or strategic planning. It includes the Management Information System (MIS), and other mechanisms for planning and control such as the accounting department.
  • 29. Marketing analysis of Bajaj Pulsar 220CC 29 | P a g e Segmentation: Market segmentation will be done considering that this bike will be for premium buyers who pay more emphasis to performance. Secondly this bike will be higher on the price range in the lights of karizma and will only be available through pro- biking showrooms which will be company owned initially. These pro-biking showrooms will only be opened in cities like Pune , Mumbai , Delhi , Banglore , Jaipur ,Chennai New pro-biking showrooms will be opened by the coming in various other cities as per the demand from the cities. Positioning: Brand Name: The name of a company will also help to differentiate itself and build image in the long run. It will try to use its brand name to pierce the Indian market and revolutionize the two wheeler market Promotion Based Marketing Strategy: Promotions will be done through youth- based advertisements and Bajaj won’t be using any celebrities as it is not the stars who will be using the bikes. Pro-biking concept: One of the most important marketing strategies will be the launch of pro-biking concept in which professional biking showrooms will be opened, providing not only premium bikes but value added services like dynamo test, online booking, performance parts for premium bikes, bike apparels and accessories. This biking concept will be the first of its kind, revolutionalising the complete biking scene in India Target Market: PULSAR 220cc targeted at the youth segment, the Bajaj Pulsar has been designed and styled as a mean masculine robust machine with dazzling looks and technically advanced mechanism that offers great performance. The target market of Bajaj Pulsar 220 CC is the young generation people who want speed, action and power. In the recent past there is a high growth in the demand for high speed and power bikes. Honda pioneered the segment but Bajaj Pulsar has beaten them.
  • 30. Marketing analysis of Bajaj Pulsar 220CC 30 | P a g e Differentiation: On the basis of design: The new Pulsar DTS-Fi (Digital Twin Spark-Fuel injected) is the first bike from Bajaj Auto with the powerful combination of twin spark plugs and fuel-injection technology and is an ultimate machine for the performance motorcycle enthusiast. The latest offering has set new benchmarks in technology, performance, and styling to address the needs of a growing segment of pro-bikers. The bike produces 20 bhp peak power, with 1.95 Kgm of torque. The bike can go to the top speed of 135.0 km/h
  • 31. Marketing analysis of Bajaj Pulsar 220CC 31 | P a g e Five Year Plan The above graph shows thatBajaj Pulsar is doing very nicely in the market. Also fromthe BCG and GE Matrices we can conclude that for Bajaj Pulsar 220 cc the company should try to increasethe market shareand should try to overcome the weaknesses. In the next five year company should try to  Increasethe marketshare  Increasethe export  Exploit the good customer base so that it could become the star productfor the company. In the coming year the prices of raw materials are also going to riseso it’s very much necessary to adopt the pricing strategy according to the future prices.
  • 32. Marketing analysis of Bajaj Pulsar 220CC 32 | P a g e Bibliography http://autos.maxabout.com/twid0000353/bajaj-new-pulsar-220-dts-fi.aspx http://123fungama.blogspot.com/2007/02/bajajs-pulsar-dts-fi-220cc- motorcycle.html http://www.coolavenues.com http://blog.neo999.com http://business.techwhack.com/category/automobiles-and-sport http://bajajpulsar.com Homework Help https://www.homeworkping.com/ Math homework help https://www.homeworkping.com/ Research Paper help https://www.homeworkping.com/ Algebra Help https://www.homeworkping.com/ Calculus Help https://www.homeworkping.com/ Accounting help https://www.homeworkping.com/ Paper Help https://www.homeworkping.com/ Writing Help https://www.homeworkping.com/ Online Tutor https://www.homeworkping.com/ Online Tutoring https://www.homeworkping.com/