

Bajaj Auto Limited (BAL) is currently running a two horse race in the Indian two-wheeler market, with its Discover and Pulsar bringing in the bulk of the sales for the company. The company recently posted its highest ever yearly sales last year, with its Discover and Pulsar brands bringing in 70% of total sales.
The Discover brand has been clearly positioned as a commuter segment offering and the Pulsar is an option for those seeking attitude, sportiness and performance. The Discover and the Pulsar have stood their ground over these years and even though there has been stiff competition offered to both the brands, they have still managed to come out unscathed.
Rajiv Bajaj, Managing Director, Bajaj Auto Limited -
Brands can be created easily by the R&D people. We have to figure out if there is a third category of buyers out there. A Pulsar buyer is sporty, young, and wants to have some fun with the bike. The Discover buyer is more sober and an economy- conscious person who wants to take a safe decision and higher mileage. If we create a brand in the absence of a target category, it could be like putting up a restaurant which serves food nobody wants to eat. I could put up a Lebanese restaurant in Pune and go bankrupt
Creation of brands is in the hands of the manufacturer but the creation of a category is in the hands of the consumer. So unless we are sure that there is a third category there, we would be making a mistake by creating that third brand
One may recall that a few years back, Bajaj was a company focusing merely on having many different products such as the XCD and the Kristal. But now it has completely changed its focus and is concentrating only on its Pulsar and Discover brands, transforming it from a company led by its products to a company led by its brands. This has resulted in a positive rub-off on the company’s sales figures, with the company registering its highest ever monthly sales figures in the month of April. The company’s market share has also risen from 19.05 % in the month of April to 20.47 % in the month of May.
The company also has plans to add another product under the Pulsar brand name in the next few months and will continue its focus in the Indian two-wheeler space with its two current brands until it feels that the market is craving for another separate brand of products.
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Entry posted on June 25th, 2010 and filed under
Bajaj