A decade of Pulsar proves Bajaj?s point

Launch of a new motorcycle brand Pulsar by Bajaj Auto in 2001 marked the beginning of a change of guard at the helm of India’s second largest two wheeler maker, as it left behind its 40-year Chetak brand of scooters. Rajiv Bajaj, who was to take over as the managing director four years hence in 2005, saw in Pulsar a brand that would replace Chetak as Bajaj?s flagship brand.

A decade of the Pulsar proved Bajaj’s point. While customers waited for months to buy a Chetak for its 40 year life, Pulsar has successfully launched four variants in a decade and can be bought over a maximum waiting period of 15 days.

On Monday, the company launched another variant of the Pulsar, a brand which is ingrained in the company?s core strategy over the course of the last decade, replacing Chetak launched by Bajaj Auto chairman Rahul Bajaj.

?For us the Puslar is a three-layered animal,? says Rajiv Bajaj, the managing director of Bajaj Auto. ?First of all it is a product, second it is a profitable brand with operating margins of 20%. Third and most important, it is the core strategy for our company.?

?Pulsar aligns us perfectly with what the customers want and what we can offer,? says Bajaj, a mechanical engineer. ?For almost 40 years before the Pulsar was launched, our strategy was with the Chetak. The products that came out of our stable were centered on Chetak, but that time has passed and now, our centre of gravity is the Pulsar, ? he added.

Pulsar transformed the Pune-based two wheeler maker in both profits and exports. Since 2001, Bajaj Auto’s profits grew five fold to R3,340 crore in 10 years from 2001. Revenues have more than doubled and now the company exports to many of the South East Asian countries with roughly 35% revenues of R6,600 crore from exports.

The engine technology of Pulsar developed by Bajaj has also undergone changes. The team, headed by chief technology officer Abraham Joseph, handpicked by Rajiv Bajaj in 1998, have Triple Spark engine which delivers more power, better mileage and better top speed than the predecessor. Bajaj said that the new technology will be integrated into future motorcycles coming out of the Bajaj stable, similar to DTS-i engine which was integrated into Discover brand of motorcycles. He added that the company will launch many more bikes this year with the Triple Spark engine.

?The focus is not on making millions and millions of Pulsars but rather on making better and better Pulsars,? said Bajaj. ?Through the Pulsar comes the Discover, a cheaper more commuter friendly bike. The KTM Duke also comes from the learnings of the Pulsar. For us, the Pulsar is more than just a product.? The cover pictures of the company’s annual reports sport Pulsar replacing Chetak.

Brand consultants agree that the Pulsar brand has become iconic and has helped change the company’s image. ?This has become a signature brand of the company and helped it shift its image from being a scooter to a motorcycle maker,? said Harish Bijoor, founder and chief executive officer of Harish Bijoor Consults. ?The brand has actually made the entire company look younger.”

“So, I think they were successful in being able to resonate better with the youth of the country, ? he added. The Pulsar was launched as a product which made sports bikes affordable and it is set to continue with the new generation of the bike. ?In my view, the competition for this is the KTM Duke, Honda CBR, Yamaha R15 and all are priced between R1-1.5 lakhs,? said Bajaj. ?Since our strategy with the Pulsar is to make it affordable, it will be priced under R1 lakh.”

The company plans to continue production of the current model of the Pulsar. ?Over a million Pulsars are produced per year and as manufacturers we have no intention of phasing out any model of the Pulsar,? said Bajaj. ?We can offer new products, it depends when the customers phase out the old Pulsars in favour of the new one.? The new generation of the Pulsar will also bring with it an upgradation of the 600-odd Bajaj dealerships across the country. ?The Pulsars will now be available at all the Bajaj dealerships, so the level of the dealerships will be improved,? said Bajaj. ?The process will take a few months to complete.? Pulsar has been successful for Bajaj its market share still languishes at 26%. However, with the new launch Rajiv Bajaj expects market share to grow to 28-32%.