Bajaj Auto is upbeat on the next round of its Discover bike launches which will coincide with the festive season momentum of October and November.

Rajiv Bajaj, Managing Director, believes that the new, rejuvenated corporate image also will play a big role in boosting Discover sales.

“The underlying message is that the (Discover) bike is coming from a company that is far stronger today than it was in 2009. I would think this presents us an opportunity to grow even further,” he told Business Line.

It was the launch of the 100cc Discover in 2009 which paved the way for a successful brand strategy in the commuter segment. In the process, it helped Bajaj Auto finally establish itself as a serious contender to market leader, Hero Honda. Till then, it just could not make much headway with its products to take on the Splendor and Passion.

According to Bajaj, the last four years have been equally significant from the viewpoint of the company’s rapidly evolving image. “The image of Bajaj Auto has changed so dramatically that it is in a very powerful space today,” he says.

Diverse product range

Its diverse product kitty starts with the sporty Pulsar motorcycle which is the market leader and growing from strength to strength. The other brands include bikes from KTM (the Austrian bike brand in which Bajaj Auto has a 47 per cent stake), and Kawasaki of Japan, its ally of nearly three decades.

As Bajaj adds, the company is also India’s largest exporter of two- and three-wheelers. The upcoming RE60 quadricycle will become part of the image build-up for customers thronging dealerships. All these attributes are expected to play a big role for the new Discover launches through the remaining of this fiscal.

The growth of this bike brand is important to Bajaj Auto as 70 per cent of its revenues come from the Pulsar, three-wheelers, exports (two and three-wheelers) and spare parts.

These four operating revenue streams contribute to the EBITDA (earnings before interest, tax, depreciation and amortisation) of 20 per cent plus each quarter. It is the balance 30 per cent from the Discover which is, therefore, the challenge both from revenue and sales.

Marketing holds the key

“The key is to ensure that we do a good marketing job,” says Bajaj. With technology, product and positioning in place, it is the sales effort that will be all-critical with the all-new Discover family.

“We are part of a marketing industry where technology is important. To be at the finishing line, you need good marketing,” he adds. It is here that Bajaj dwells on the world’s leading marketing strategist, Jack Trout’s quote: “You cannot sell; you have to supply a reason to buy.”

The Discover platform was first launched in 2004 (with the 125cc version) and has played an important part in the company’s revival strategy for the commuter segment. Last year saw the launch of the first bike, Discover 125 ST, from the new platform which was quickly followed by the 100 T and, more recently the 125 T.

These new Discovers are clocking up monthly sales of around 45,000 bikes. In tandem with their older siblings, they make up a total number of over one lakh units each month.

The December sales numbers will show the “impact factor” of the to-be-launched Discover. By this time, the company will have moved to the last quarter to gear up for the final phase of the brand’s launch blitzkrieg this fiscal.

>murali.gopalan@thehindu.co.in

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