Bajaj catches the executive pulse

MARKETING: Finally, Bajaj Auto finds success in the executive segment, thanks to a new variant drawn from consumer research.

It's where the action is. The executive segment of the motorcycle market accounts for more than 50 per cent of the 5.2 lakh motorbikes sold in India every month.

But despite several attempts, Bajaj Auto had never been a significant part of it. Even till a year back, its share of this segment was a paltry 10 per cent, the lion's share being with its rival Hero Honda.

But the success of the Discover has shaken up the marketplace, taking Bajaj Auto's share in the executive space to 25 per cent. What's more, Bajaj now claims to command 33 per cent of the overall Indian motorcycle market, another new high.

Last month, Bajaj Discover 125-cc, fitted with its DTSI (Digital Twin Spark Ignition) engine, together with its 112-cc variant, clocked volumes of 58,760.

The smaller variant, launched in December 2005, accounted for nearly half that figure. This model looks similar to the original, but is fitted with an engine that offers better mileage (partly on account of its lower engine displacement capacity).

Besides, it's priced a tad lower at Rs 39,000 compared with Rs 42,000 and Rs 44,500 for the two 125-cc models (kick-start and electric start respectively). Yet, pricing was not the challenge, says an industry consultant.

This is a segment that displays high sensitivity to several parameters other than price. "If Discover is selling," says the consultant, "it's because of the product "" the R&D team seems to have cracked it."

According to S Sridhar, VP, marketing and sales, Bajaj Auto, the idea for Discover came from consumer research which showed that the executive buyer wanted higher levels of power and performance.

This prompted Bajaj to borrow some elements from its very own 150-cc performance bike, Pulsar, which was being sold as an overtly masculine vroom machine. And so, it created a high performance bike using the same DTSI engine.

"The idea was to cater to a 37-40-year-old who wants the thrill of riding a powerful bike, but can't quite imagine himself on a Pulsar," explains Sridhar.

The strategy worked. And now Discover is often referred to as a "Mini Pulsar".

An ad campaign featuring Jackie Chan was a help in taking numbers within months to a monthly 25,000 "" but sales began to dip below the 20,000 mark after a point.

"We felt the demand in the 125 cc segment had some limits and decided we needed another product," recalls Sridhar. And though Discover bounced back to 40,000 units in October, Bajaj's R&D team came up with a smaller version offering 70 km to the litre instead of 60 km.

"We were targeting a buyer obsessed with fuel and running costs, but who would not mind upgrading to the executive segment if he had a financing option," explains Sridhar. It clicked. And thanks to the numbers just in, the executive segment now contributes approximately 32 per cent to the Bajaj's volumes, up from 10 per cent a year back, and even less before that.

The company can swell its chest in pride all the more because success in this vital (from a prestige perspective) segment has eluded it all these years, with Hero Honda's Passion and Splendour being the bikes for the young executive to be seen on.

Despite heavy-budget advertising, Bajaj Caliber and Wind 125-cc had failed to get very far in this segment. This, even while Bajaj managed to outplay Hero Honda in the vast entry-bike segment, taking on the rival's 100-cc CD Dawn with its own CT 100.

The good news for Bajaj Auto doesn't end there. At the premium end too, its

150-cc Pulsar has got a sudden dose of adrenalin, as sales rev up.

But it's the fastidious executive segment consumer who Bajaj is suddenly all excited about, and a new variant is on its way too "" in just a month or so.

"We're looking at a target of 90,000 units in the executive space month by May," says a confident Sridhar. Hero Honda, surely, must be watching very closely.