Bajaj Pulsar - Bajaj Pulsar: Related Diversification: Bike...

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Bajaj Pulsar: Related Diversification : Bike segment wasn’t new to Bajaj as it had already launched some bikes but were of low capacity. Bajaj started to produce bikes once they realized that demand of their flagship product scooter was rapidly going down and post liberalization consumers had lot of choice to choose from. Consumer preferences and tastes were changing. This is when Bajaj adopted related diversification strategy. Bajaj was a little late into the bike segment and to be in competition it had collaboration with Kawasaki as it did with piaggio (license) for scooters in the initial years. Bikes like Bajaj 4s, Boxer and Kawasaki were performing below average. They wanted to make it big in the market. Product Development: Reasons for developing a product like pulsar was that it knew market potential was high and consumers were ready to experiment. Bajaj was performing poorly in commuter bikes like discover which were competing with bikes like Splendor, CD100 etc. So it though portfolio had to be expanded and sports bike was the best way to do that. So Bajaj developed this product: Pulsar. It was introduced in the year 2001 once the market responded positively for high performance bikes. Projections looked quite supportive for Bajaj to invest. It was a new product category to enter and was very much unexplored by any existing company. Though there were apprehensions about company like Bajaj entering into high powered bikes. It took the company almost 36 months to develop this and had invested close to Rs 1 bn. Once this product was released it became a huge success and from there on Bajaj has been releasing various variants in this brand. Bajaj won lot of awards for this product and is one of their best selling models. Right from the beginning Pulsar was positioned very well. They had primarily targeted the youth segment (mainly urban and one who values style, features and status) who wanted faster, powerful bikes. Their advertisements also depicted the same with ads having a tagline “definitely male” for the bike. Then they later changed it to digital biking. Defensive strategy : Bajaj had adopted a defensive strategy as they were constantly modifying existing products, changing market segments, changing target markets, repositioning products and change promotional focus. Pulsar had taken cue from the success of then Hero Honda Karizma. It had to differentiate from this bike. Hero by time had very good image, brand equity. Naturally their bike was priced a bit higher but product features as in mileage was low. This can be called as one factor that scores high on any Indians priority list. So Pulsar priced its product low comparatively and was a little better on the mileage part. This combined with a brilliant advertising strategy helped Pulsar to become such a big hit. Also they started clubs like Stuntmania, Pulsarmania for the consumers of
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Bajaj Pulsar - Bajaj Pulsar: Related Diversification: Bike...

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