Product plan
Download 280.69 Kb.
|
- Navigate this page:
- Product Strategy
CUSTOMER ANALYSIS At less than 31 two-wheelers per 1,000 citizens in 2004, India is a poorly penetrated market for motorcycles - even after accounting for a relatively low per capita income of around US$3,100 per year on purchasing power parity (PPP) basis. (Chart 5) Chart 6 
The customers can be segmented into three price points based on the basis of annual income: Price, Deluxe and Premium. The price segment consists of price sensitive rural customers and urban middle class customers who find it difficult to afford a car. This segment seeks reliable and fuel efficient bikes (economic value). The purchasing power of the urban middle class is increasing (average annual income: Rs1, 50,000) and thus price and deluxe segment, which retail at sixth price of cars in India, are considered extremely affordable. Over the past few years, the customer habits and needs are very gradually shifting from a basic transportation necessity to fun and fashion orientation. This is evident from the growth of the deluxe and premium segments in the past few years. Product Strategy Production The Bajaj Pulsar DTS-fi will rollout from Bajaj’s sate of the art plant at Chakan, Pune. The plant currently manufactures LCVs. The total investments in terms of machinery etc are assumed to be Rs 50 Crores. The R&D cost is also assumed to be Rs 50 Crores. In the first year, 60000 units are proposed to roll out from the plant. Product Marketing Programs Product
Performance Max.Power: 20 bhp Max.Torque: 1.95kgm Max Speed: 135 kmph
Promotion The machine will be promoted as a sporting machine for the performance seeking bikers. If its predecessor was called ‘Definitely Male’, this one is ‘Excitingly Male’. The promotion will be mainly through TV and print media. The ‘Probiking’ showroom is a new concept where Bajaj decides to showcase its premium segment bikes. Placement and Distribution strategies Probiking Bajaj Auto is in the process of setting up a chain of retail stores across the country exclusively for high-end, performance bikes. These stores are called "Bajaj Probiking". During the year, one such store has been opened in Pune. Probikers are very different from the average motorcycle user. They are knowledgeable, appreciative of contemporary technology, are trendsetters and very choosy about what they ride. Hence, Probikers need to be addressed in a meaningful way that goes beyond the product. Every element of the sales and post-sales process needs to talk a language that is relevant to them. Hence, Probiking is not just a swanky showroom, but it is the expression of our desire to provide an excellent retail and post sales experience to the Probikers. The Probiking experience will also enable the customers to test the bikes at top speed and check out the parameters of acceleration time, torque, maximum power, etc. on a dynamometer, within the comfort of the showroom - things that are not possible on a normal road test-ride. The entire process of customer buying is through state-of-the-art interactive computer terminals that are looped back to the Company's SAP system. The customer response to this channel has been excellent, and Bajaj Auto intends to take this experience forward to other cities in the coming year. The company proposes to own all these showrooms. Pricing and Positioning The Pulsar DTS-Fi is expected to have a price tag of Rs. 92,000 on road. Of course, the figure will change a bit when it hits the road. However, a fully loaded bike for an average bike enthusiast this is an approachable price. FINANCIALS Assumptions The two wheeler industry to grow at 9-10% from 2006-012 The share of 150cc+ segment to grow from 10% to 12% from 2006-12 The product assumes to target 7% of this segment in the first year(2006-07) The sales growth assumed to be 12%. Fixed costs ( R&D and Machinery) assumed to be Rs 150 Crores Excise duty assumed to be 12.5% of sales Operating Expenses to increase at 11% Refer Financials.xls for detailed financial projections. Download 280.69 Kb. Share with your friends:
|