1.

Brief Introduction to the Company: Bajaj Auto Limited Background: Bajaj Auto was incorporated in 1945 as Bachraj Trading Corporation Ltd to import scooters and motorised three-wheelers from Piaggio & Company. The entitys name was changed to Bajaj Auto Pvt Ltd in June 1960, and then to its current one in August 1960, after it was reconstituted as a public limited company. Currently, Bajaj Auto Limited (BAL) is the second largest player in the domestic two-wheeler industry of India in 2011-12, and the largest Indian exporter of two and threewheelers. The company has two plants in Maharashtra at Chakan and Waluj - as well as one in Pantnagar, Uttarakhand. Models contributing more than 10 per cent of sales volumes in the domestic or exports market for BAL are: Domestic Market: Platina, Discover 125, Pulsar Export Market: CT100, Pulsar

Balance Sheet The Major Players in the two-wheeler industry are: 1. Hero Motocorp 2. Bajaj Auto Ltd 3. TVS 4. Honda 5. Suzuki 6. Yamaha

Market Share

7. Mahindra and Mahindra

Market Share 3.1 Product:

Volumes Sold

Core Product: The core product that the customer is looking for is (in order of importance): Convenience of travel: The user is looking for a mode of transport which makes it easier to navigate through traffic. This narrows the search to two-wheelers. Speed: The user is looking at a two-wheeler that would help in making the time of commutation lower. Looks: The customer of this product is looks savvy and prefers to purchase a two-wheeler that looks stylish. Performance: The customer is looking for a mode of transport that provides value for money in terms of the product as well as the mileage. The core product features remains the same for the products, viz. Bajaj Pulsar 150 cc and Hero Honda CBZ 150 cc. Actual Product: Source of the following Table: http://auto.indiamart.com/bike-comparison/pulsar-150cc-vs-cbzxtreme.html Specification Starting Bajaj Pulsar 150 cc Self Start/ Kick Start Hero Honda CBZ 150 cc Self Start Preferred Bajaj Pulsar- 150 as it has an additional option of Kick Start. Wheel Base Wheel Type 1320 mm Alloy 1325 mm Alloy No preference. The values are comparable No preference. The values are comparable

Tyre Size

Front: 90/90 X 17- Tube Rear: 100/90 X 17- Tube

Front: 80/100 X 18- 47p Rear: 100/90 X 18- 56p Fuel Efficiency

Bajaj Pulsar 150 cc as Smaller wheel size provides higher acceleration.

Fuel Economy

48.4 kmpl

50 kmpl

Hero Honda CBZ 150 cc as it has higher mileage.

Fuel Capacity

15 L

12.3 L

Bajaj Pulsar 150 cc as it has higher capacity

Fuel Reserve

2L

1.5 L

Bajaj Pulsar 150 cc as it has higher capacity Dimensions

Length Height Width Ground Clearance

1990 mm 1035 mm 750 mm 165 mm

2080 mm 1145 mm 765 mm 145 mm

Bajaj Pulsar 150 cc as Smaller bikes are lighter, stiffer, more maneuverable, and more efficient Bajaj Pulsar 150 cc as More ground clearance enables easier clearance of speed breaks.

Curb Weight

130 Kg

141 Kg

Bajaj Pulsar 150 cc as Lesser Weight makes it easier to handle.

Engine Specifications Engine Type Displacement Maximum Power Maximum Torque Ignition CDI, DTSi Technology AMI Advance Microprocessing Bajaj Pulsar 150 cc as DTSi provides dual benefit of good fuel coupled with good power. 12.76@6500 Nm@RPM 12.80@6500 Nm@RPM No preference. The values are comparable 4 Stroke Single Cylinder 150 cc 14.09@8500BHP@RPM 4 Stroke Single Cylinder 149.2 cc 14.4@8500BHP@RPM No preference. The values are comparable No preference. The values are comparable No preference. The values are comparable

Safety Features Brakes Front Disc- 240 mm Disk Rear Disc- 130 mm Disk Front Disc- 240 mm Dia Disk Rear Disc- 220 mm Dia Disk Suspension Front- Telescopic, 130 mm Stroke Front- Telescopic, Hydraulic Shock Hero Honda CBZ 150 cc as the 5 step Adjustable iGRS System provides better Hero Honda CBZ 150 cc as larger dic provides higher leverage on the wheel and leads to a faster stop.

Rear- Nitrox, Rear Wheel Travel 105 mm

Absorber Rear- 5 Step Adjustable iGRS System

shock absorption and reduces the sudden impact of the applying the brakes.

Clutch

Multi Plate Wet

Hero Honda CBZ 150 cc as the multi plate wet has lubrication that leads to higher life and smoother usage.

Gear Box

5 Speed

5 Speed

No preference. The values are comparable

Augmented Product: Specification Headlamps Bajaj Pulsar 150 cc 35/35 W with 2 Pilot Lamps Top Speed 118 kmph Hero Honda CBZ 150 cc 12 V- 35 W- Halogen Bulb- Trapezoidal 110 kmph Preferred Bajaj Pulsar 150 cc as it has an aggressive mask fairing with wolf eyed headlamp. Bajaj Pulsar 150 cc as it has higher top speed. Digital Display Yes No Bajaj Pulsar 150 cc as it has a Black lit LCD digital speedometer. Number of Dealers Number of Service Stations Warranty 2 Year/30,000 Kms 5 Year/70000 Kms 1500 3515 485 3000 Hero Honda CBZ 150 cc due to its large dealer network. Hero Honda CBZ 150 cc due to the large number of service stations. Hero Honda CBZ 150 cc due to the longer tenure of warranty. Free Services Three Eight Hero Honda CBZ 150 cc due to the higher number of free services. Marketing Campaigns Online Service Booking Pro-Biking e-Biking No Yes Har Gaon Har Aangan Bajaj Pulsar 150 cc as it Allows booking of bikes online. Hero Honda CBZ 150 cc as it allows the customers to book services online.

How Strong is the Product-Brand Relationship? Pulsar 150 cc is the most important product in the portfolio of Bajaj Auto. The product is of utmost importance to both brand Bajaj and brand Pulsar. The importance accorded to the product Pulsar 150 cc is so high that Bajaj decided to change the tagline of Pulsar 150 cc from the largely successful Definitely Male to the tagline of the company (Distinctly Ahead). This signifies the importance

accorded to the product. This reliance on Pulsar 150 cc is justified as it is the current market leader in the 150 cc segments with a share of 43%. It has won multiple awards such as "Bike of the Year" by CNBC-TV18 Autocar in 2007, "Viewers' Choice Two Wheeler of Year" by BBC World Wheels Award in 2003 and "Most Exciting Bike of the Year" by Overdrive magazine in 2002. Compared to the relationship of Pulsar 150 cc to Bajaj, we find that the relationship of CBZ to Hero Honda is weaker than its other products such as splendor, Karizma etc. Splendor is the highest selling bike of Hero Honda and considerable resources are spent by Hero Honda to promote sales of Splendor. Suggestions for improving the product/brand penetration in market? Reassociate with the extremely successful tagline of Definitely Male: This tagline initially used by Bajaj in the nascent years of the Pulsar was extremely successful and Bajaj erred by changing the tagline to Distinctly ahead. Reassociation would lead to better Product/Brand Penetration in the market. Increase the number of service centres and dealers Offer extended warranties for additional prices Increase the number of free services Open Option for Online Service Booking Engage more proactively in Rural Marketing: According to the World Bank Report of 2012, 69.9% of the population of India is in the rural areas. This market has been targeted by Hero Honda through its Har Gaon Har Aangan Campaign in which its salesmen do door to door sales of vehicles. Also, the Tie Up with PNB in 2003 has boosted sales as the rural youth is purchasing more and more Honda Bikes. But Bajaj has been relatively dormant in this market and has huge opportunity in this area. Bibliography: http://auto.indiamart.com/bike-comparison/pulsar-150cc-vs-cbz-xtreme.html http://www.heromotocorp.com/en-in/ http://www.bajajauto.com

http://www.icra.in/Files/ticker/SH-2013-Q2-1-ICRA-Two-Wheeler.pdf https://www.crisilresearch.com/industryasync.jspx?serviceId=5&State=null#storyId#25318#s ectionId#2683#newsFeedId#undefined