Advertising and Promotion ManagementTerm Paper

Anujay Mathur 2010SMF6576

Lokesh Bahety 2010SMF6555

Under the guidance of:Prof. Harish Chaudhary

• Came into existence in 1945 as M/s Bachraj Trading Corporation Private Limited• In 1959, it obtained license from the Government of India to manufacture two- and three-

wheelers and it went public in 1960• In 1986, it managed to produce and sell 500,000 vehicles in a single financial year. • In 1995, it rolled out its ten millionth vehicle and produced and sold one million vehicles in a year.• Changed image from scooter maker to a two-wheeler manufacturer

• BAL sold 3.82 million units – consisting of 3,387,043 motorcycles and 436,884 three-wheelers.• Exports were at an all-time high: rose by 35% to 1,203,718 units.• The Company’s operating EBITDA for FY2011 grew by 30.6%• In 2010-11, net sales and other operating income grew by over 39% to Rs.16,609 crore over the

previous year to Rs.3,385 crore.• Profit after tax and exceptional items increased from Rs.1,704 crore to Rs.3,340 crore.

Introduction

• Part of the Bajaj Group • Amongst the top 10 groups in India• Other business include automobiles, home appliances, lighting, iron and rods, insurance et al.

History

Financial Metrics

Bajaj Auto Limited: An Overview

* `Product discontinued** Distributor for Kawasaki

Automobiles

2 wheelers 3 wheelers (Commercial Vehicles)Car

Commuter Standard (Entry level)

Commuter Deluxe (Mid Level)

Sports (Performance)

Scooters Scooterette Motorbikes

Platina Discover Avenger Pulsar

*Chetak *Wave

Goods Carrier Passenger Carrier

RE 60

Product Portfolio: BAL

**Ninja*XCD

Rapidly growing with the purchasing power of the middle classBajaj Auto’s Pulsar; Hero Honda’s CBZ, Hunk and Karizma;HMSI’s Unicorn and Stunner;TVS’s Apache; Yamaha’s R15 ,FZ16

Product Category: 2 Wheelers - Motorbike

Commuter Standard (STD)

Low pricing power, Low margin, Low profit products Bajaj Auto’s Platina, Hero Honda’s CD series, TVS’ Star.

Commuter Deluxe (DLX)

Placed between sports and Commuter standardBajaj Auto’s Discover; Hero Honda’s Splendor, Passion and Glamour; TVS’ FieroHonda Motorcycle & Scooters India’s (HMSI’s) Shine;

Sports

Source: BAL Annual Report 2009-10

Changing scenario of the Indian 2 wheeler market

• Higher purchasing power with the youth• Campaigns focusing on the entire riding experience rather than just commuting• Bombardment of new products in this category

Pulsar NS, Karizma ZMR, Honda CBR, Kawasaki Ninja

• Bajaj’s market has moved in the same direction• Sports markets share increased from 21% to 33% • Expected to be the biggest contributor by 2020

Triggers

• Commuter STD market share consistently falling down• Sports segment slowly rising• Deluxe holds more than half the overall marketshare

Scenario

Bajaj follows

CHANGING PRODUCT MIX

Source: BAL Annual Report 2009-10

Bajaj Positioning

An evolution from ‘Humara Bajaj’ to ‘Distinctly Ahead’

Humara Bajaj

Reliability & Trustworthiness

Value for Money products

Chetak

Distinctly Ahead

Innovation, Speed & Perfection

Styling and Technology

Pulsar

Brand Tagline

Core Values

Campaign based on

Flagship product

• Transformed its image from a scooter maker to a 2 wheeler maker• Based on high technology and precision engineering• Positioned as pioneer and not a follower• Also had an ‘Inspiring Confidence’ campaign before ‘Distinctly Ahead’• Has tried to portray an international image with the ‘globalize india’ campaign

Design company for the Flying B logo: Elephant Design

• 2001 – Bajaj Pulsar 150cc & 180cc launched

₋ Product: First bike under the Bajaj portfolio to focus on performance₋ The performance bike trend was started by CBZ in the Indian industry₋Target Group: Youths (18-24 yrs) wanting powerful, stylish bikes which would suit their pockets₋ Advertising Idea: “Definitely Male”. Associating a motorbike with gender drew a connect between the male youth and the product₋Outcome: Pulsar got positioned as the “He-Bike of India”

• 2003 – DTS-I Technology launched

₋ Product: Bajaj became the inventors of a performance technology – DTS-i (digital twin spark ignition)₋ The technology improved the performance as well as mileage of the bike₋Advertising: The advertising campaign was still handled by O&M with the same tagline “Definitely Male”. The DTS-i technology was portrayed as an addition to the masculinity of the bike.

“The nineties witnessed the birth of the 'AND' generation. Work hard and party hard, Western influences and Indian values. This young Indian was cool, masculine, stylish and deserved to be different.”- Press Release, O&M

“Not just mileage, the new technology (DTS-i) was the focus of all marketing campaigns.”

Integrated Marketing Campaign

₋ Product: Digital features like LCD display, non contact speed sensor, self cancelling indicators and many more were added.₋ With such a technological advancement, the bike had become fully digital₋Advertising Idea: “Digital Biking“. Leo Burnett tried to put forward the digital advancement as the USP of the bike₋Outcome: The message of digital advancement was conveyed but the image of the classic “He-Bike” was lost. Took time to build new image.

• 2005 – New features were added

“We had to promote the Bajaj DTSi range of bikes and there were a lot of features to communicate. But if we had spoken about the details in the communication, it would have been extremely boring as people don’t buy logical arguments. So, we went ahead with the idea of exciting bikes-exciting technology in the campaign. We wanted people to sit and take notice.” – KB Vinod, Exec. Director, Leo Burnett

₋ Product: the 200cc variant of the DTS-i bike is launched. Bajaj introduced the DTS-Fi technology. The new technology improved the acceleration of the bike.₋Advertising Idea: “The Fastest Indian“. The campaign was handled by O&M, featuring a bike getting vanished in the wind.₋Outcome: The speed quotient was seen as red flag in the Indian families and the DTS-Fi variant was soon discontinued.

• 2007 – Bajaj Pulsar 200 DTS-i & 220 DTS-Fi launched

"We had to position the Bajaj Pulsar 220 as the fastest product bike. We had to convey this thought to the audience in a very "Pulsar" manner, with a lot of attitude to go with it.” – Abhijit Avasthi, Exec. Creative Director, Ogilvy & Mather

Integrated Marketing Campaign (cont.)

₋ Product: The oil cooled engines helped control engine oil temperature, thus ensuring more stable engine oil viscosity. Led to a better control.₋Advertising Idea: “Free Biking”. The campaign was initiated by O&M and shot in busy streets of Cuba. Bajaj tried to communicate that it does not matter where you are biking but how you are biking when you are atop a Pulsar 200cc₋Outcome: Message might have been a bit complex for the typical Indian Motorcycle owner, the freshness of the ad really popularized the bikes.

₋Other Promotions: Pulsar Mania – An advertisement showing some bikers performing

various stunts on their Pulsar. An attempt to position itself as the 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 their mettle.

GhostRyderz – A group of stunt bikers that emerged as the winner of MTV StuntMania (Bajaj Pulsar’s own show) are sponsored by Bajaj for various stunt tournaments

Pulsar License – A “license” issued by Pulsar to people in order to prove their Pulsar Mania. The license carries details like Highest Speed, Favorite Stunt, Outstation Trips etc. apart from the basic personal details.

• 2008 – Oil Cooled Engines were introduced

“Pulsar 200 Free Biking concept is a hyperbole and look like scenes out of some action Hollywood Movie.” - Critic

Integrated Marketing Campaign (cont.)

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AdvertisingChange in revenue

Growth in revenue vs Advertising Expenditure

Campaign Objective Campaign Outcome Gap

Campaign: Definitely Male (O&M)

Connect between the male youths and the product by putting “Gender” as the common connect.

Pulsar was successfully positioned as the “He-Bike of India”. The first ever bike to have achieved such an image.

O&M was able to accomplish the objective of the campaign to almost 100% level.Gap: None.

Campaign: Digital Biking (Leo Burnett)

Put forward the fully digital functional features of the bike as its USP. Best way to describe all the features of the bike in one word.

The style component failed to connect with the customers at a deeper level, unlike the previous campaign.

This change of tagline is accounted as the biggest mistake in the evolution of Bajaj Pulsar.Gap: The classic He-Bike image of Pulsar was lost for a common image of advanced technology.

Campaign: The Fastest Indian (O&M)

The unbeatable speed and acceleration because of the recent engine up gradation was the most attractive point in Pulsar.

The campaign lacked persistence and died out before could be noticed. Also, the Indian families look at Speed Quotient as a negative while making decision.

The campaign was specially for DTS-Fi technology, which failed to take off as expected. The line of production was discontinued eventually.Gap: The campaign did lure the users but not the decision makers.

Campaign: Free Biking (O&M)

The control over the RPM and other Engine performances allows you to ride through any possible obstacles.

The control over bike message was well conveyed and well utilized for stunt purposes. Bajaj Pulsar decided to take forward this image by starting other promotional campaigns

The message was complex but conveyed. The response to the campaign was quickly accommodated in the future promotional planning of Bajaj Pulsar.Gap: The campaign was dynamic and constantly tried to bring the gap to current under control level