Bajaj Pulsar 220 F

Aditya Shetti

ABOUT BAJAJ The Company The Bajaj Group is amongst the top 10 business

houses in India. Its footprint stretches over a wide range of

industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance.

The group's flagship company, Bajaj Auto, is ranked as the world's fourth largest two- and three- wheeler manufacturer and the Bajaj brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia. 

RAHUL BAJAJ The present Chairman of the group,

Rahul Bajaj, took charge of the business in 1965.

Under his leadership, the turnover ofthe Bajaj Auto the flagship companyhas gone up from INR.72 million to INR. 120 billion, its product portfolio has expanded and the brand has found a global market.

He is one of India’s most distinguished business leaders and internationally respected for his business acumen and entrepreneurial spirit.

INTRODUCTION OF BAJAJ PULSAR IN THE INDIAN MARKET

Developed by Bajaj Auto in association with designer Glynn Kerr Tokyo R&D, Pulsar was first launched on November 24, 2001.

At that time, the Indian two-wheeler industry was populated by 80-100cc bikes with less power capacity.

Bajaj had expected Pulsar to attract young power biking lovers of the country. The whole project cost Rs 100 crores (Rs 1 billion).

FEATURES & TECHNOLOGY

COMFORT The Pulsar 220F has a telescopic front and a 5 step adjustable,

nitrox rear suspension that provides great handling and comfort. The aggressive seating posture gives a racer feel while still being comfortable for city as well as highway riding.

SAFETY To handle the power and performance that the Pulsar 220F is

capable of delivering, certain elements like front and rear disc brakes, broad rear tyre - 120/80 X 17", front and rear tubeless tyres and strengthened 5 spoke alloy wheels are standard fit. The Pulsar 220F also boasts of a projector headlamp that provides a wider beam for better low light visibility.

STYLING The Pulsar 220F has a stylish semi-fairing that is both good

looking and aerodynamic, ultra-stylish LED tail lamp, sporty split seats and split rear grab rails. Standard fitments on the bike include the clip-on handle bar complete with pass switch, electric start, engine kill switch and self-cancelling indicators.

ANNUAL REPORT 2012-13 o Despite a difficult market, net sales and

other operating income grew by 2.8% to an all-time high of Rs 20,351 crores.

o Sales in volume terms reduced marginally by 2.6%. Bajaj Auto sold 4.24 million units versus 4.35 million units in the previous year. This consisted of 3.76 million motorcycles and more than 480,000 three-wheelers.

o Profit before tax (PBT) grew by 6% to Rs 4,266 crores.

o Profit after tax (PAT) was at Rs 3,044 crores — marginally higher than the previous year.

PERFORMANCE HIGHLIGHTS FOR FY 2013o Recorded its highest ever net sales and operating

income.o In an extremely challenging year for the industry as a

whole, total revenue grew by 3.3% to Rs 20,793 crores.

o Exports over 1.5 million units. The value of exports was the highest ever at Rs 6,713 crores.

o Profit after tax (PAT) was at Rs 3,044 crores – at an all-time high.

o Surplus cash and cash equivalents, as on 31 March 2013, was Rs 5,706 crores.

PRODUCT Born as the Fastest Indian, the Pulsar 220F is a

performance machine for the true enthusiast. Its powerful 4 stroke, 220 cc DTS-i engine delivers 21Ps power and a healthy 19 Nm torque, making it the most powerful bike in its category. Designed for speed and performance, the Pulsar 220 is perfect for dragging in a straight dash or handling corners with panache.

It is a great bike for people looking for power and a comfortable ride on the Indian roads. It provides an easy top gear riding experience with less gear changes and instant pick up in any gear.

PLACE For Bajaj Auto, the supply chain

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

PRICE The price of Bajaj Pulsar 220F depends on

the city. For Goa, Ex – Showroom price is 83, 450 whereas the On Road price is 90,000 (Approx.)

Bajaj Pulsar is one of the premier segment bikes which is reflected by its pricing. In the near future the price of Pulsar is bound to increase because of the pressure on profit margin of the company.

PROMOTION Bajaj’s dealers had been selling scooters; they had little idea

how to sell motorcycles. So the entire dealership network was trained to sell motorcycles.

The introduction of Pulsar was executed with a completely different approach and a “Definitely Male” positioning. Bajaj kept coming up with better products like the Pulsar 180cc, then the Pulsar DTSi followed by the 200cc and 220cc Pulsars.

The concept of “Definitely Male” was well accepted by the people and Bajaj came out with some astonishing ads. Though the DTSi technology was new, people accepted it very well. It easily conveyed the message it wanted to. In 2004, Bajaj completely revamped its identity, gave up the “Humara Bajaj” umbrella and came up with a completely new enhanced positioning focusing more on the technology and experience.

With a new, sharp brand logo, Bajaj pressed itself as “Digital Biking” and “Distinctly Ahead”.

The company has been regularly making alterations to it to make the motorbike look fresh at all times.

OTHER PROMOTIONS Pulsar Mania - An advertisement showing some bikers

performing various stunts on their Pulsar. An attempt to position itself as India’s true sports bike.

MTV Stunt Mania – After the success of Pulsar amongst stunt bikers, Bajaj decided to take a step forward by creating a new show called “Stunt Mania” on MTV. Stunt bikers from all across India compete to prove heir mettle.

GhostRyderz – A group of stunt bikers that emerged as the winners of “MTV Stunt Mania” (Bajaj’s own show) are sponsored by Bajaj for various stunt tournaments.

Pulsar Licence – A “licence” issued by Pulsar to people in order to prove their Pulsar Mania. The licence carries details like the Highest Speed, Favourite Stunt, Outstation trips etc. apart from the basic personal details.

STRENGTHS Excellent brand name High product quality  High performance, speed and pickup Specially compounded high strength polymers for all

body panels Focus on customer delight besides customer

satisfaction Latest Hi-Tech core concepts of production and quality Passion for quality and safety built in to every bike Hydraulic disk brakes front and rear for maximum

safety. Disks are high quality, stress relieved steel High quality switches for long life Custom cast aluminium alloy wheels Tires are designed for optimum performance on wet

and dry road traction

WEAKNESSES The recent trend of volume driven growth is

likely to get pronounced. The growing competitive pressure in the 2 wheeler market can limit the scope for expansion in profitability.

The degree of success enjoyed by model introductions would be critical performance determinant.

Mileage on a lower side due to focus on power.

High cost in various variants.

OPPORTUNITIES Bajaj, which uses Kawasaki Heavy Industries Ltd.

Technology for some models, faces growing competitions from Honda motorcycles, Yamaha and Suzuki Motors, besides local players Hero Motor Corp., TVS and Kinetic Motors.

Bajaj, overtaken as India’s top 2 wheeler maker in 2002 by Hero Honda Motors Ltd. (Now Hero Motor Corp.), has benefited from rising incomes in Asia’s third largest economy, besides cheaper loans and a shift in preference to high value motorbikes from scooters.

Expansion in rural and tier-2 cities . Cost management thus reducing the price of the bike.  Developmental changes thus reducing bike's weight. Untapped market above 200 cc in India. Growing world demand for entry level motorcycles.

THREATS New entrants in the market such as Honda

and Yamaha have been eating up the market share of Pulsar by launching new models and variants.

Low mileage is another problem of Pulsar. Fuel prices have increased dramatically over the last few years in India which has customers thinking twice whether to opt for a high performance bike or a 2 wheeler which offers good mileage.

Low-cost bikes still seem to be the crowd favourite in rural markets.