Monday, January 11, 2010

Not cheap! It’s economical…

Bajaj Auto’s over reliance on brand ‘Pulsar’ and increasing focus on the 125cc-plus motorcycle market garnered it a heavy loss in not only its market share in the two-wheeler segment, but also in its bottomlines. However, Bajaj Auto is revisiting its strategies and is now all set to make a comeback into the 100cc segment with its Discover DTS-Si, which will hit the showrooms from July 27 onwards. Interestingly, Bajaj Auto’s plan to reign in more market share in the 100cc segment is a bit different from the strategy formulated by the company in the first place. But will the discovery of Bajaj Discover be able to create the desired position in the executive segment for Bajaj Auto?

There is no denying that Bajaj Auto’s strategy riding on the superior technology and advanced designing fronts has been very successful to tap the consumer in the premium segment. The company is banking on the same pillars to replicate its success in the executive segment. If the words of Rajiv Bajaj, Managing Director, Bajaj Auto are to be believed, “In terms of sales and profits, this fiscal will be the best ever for Bajaj Auto.” Introduced as a 125cc model and presently selling in a 135cc version, Discover has been operating in the Indian market for over five years now and is well poised to take on Hero Honda’s executive model – Splendor and Passion by which the company plans to take the sales figure to around the 2,00,000-units mark. And if Bajaj is able to create a new category in the executive segment, the company may garner a healthy share of the entry level segment.

Pawan Chabra

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Source : IIPM Editorial, 2010

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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