It is less than a month since Bajaj Auto launched its new Avenger series comprising the Street 150, Street 220 and Cruise 220 avatars.
Indications are that the brand is poised to wrap up November with sales of 20,000 units, a huge jump from the 4,000-odd units it was averaging in its original standalone 220cc version. If the Avenger sustains this momentum in the coming months, it will mark the success of a carefully thought out strategy based on hardcore sales numbers and customer preferences.
In the process, Bajaj Auto will have sewn up the premium end in motorcycles from the viewpoint of volumes and market leadership. It has already addressed the entry segment with the CT 100 and Platina which are averaging combined monthly numbers of over 85,000 units.
According to Rajiv Bajaj, Managing Director of Bajaj Auto, the Avenger revival strategy focused on motorcycle sales trends in the premium segment. In the 150cc space, monthly numbers are in the region of one lakh units of which the Pulsar is the leader with around 35,000 units. Yamaha’s FZ, TVS Apache and Honda Unicorn are the other key participants in this product category.
However, going to the next level of 150cc plus (priced under ₹1-lakh), the findings showed something quite different. The Pulsar 180 and 220 account for 11,000 units while the Avenger remained at its steadfast level of 4,000 units. The Bajaj Auto offerings pretty much dominate this 150cc plus space where products priced over ₹1-lakh like Royal Enfield, KTM and the Yamaha R15 were not factored in.
What was intriguing was the Avenger at ₹86,000 was almost at par with the Pulsar 220 on pricing and yet doing lower sales numbers. “The learning here was that the Avenger at 4,000 units a month comes only with a 220cc engine,” says Bajaj. It was a critical gap that clearly needed to be filled as part of the revival plan.
The feedback also indicated that parents were worried about the safety of their children operating such a powerful motorcycle. In their turn, these youngsters had their own anxieties about mileage and the likelihood of incurring higher costs as a result. There was some rebooting required for the brand to become more accessible.
The study of both user segments also showed that while Bajaj Auto had a one-third share of the 150cc space, it was the clear winner in the next level (150cc plus) with 15,000 of the 16,000 units sold each month. The team then identified two levers to boost Avenger sales: new styling and launch a 150cc option. In the process, along with the well established Pulsar, it would grow the company’s share in the 150cc space and hopefully give it an unassailable lead over competition.
Pitching it rightThe underlying principle in this revival strategy was that the Avenger was the direct opposite of the Pulsar which goes in line with Rajiv Bajaj’s thinking on the subject. It was this thought process which also charted a new course for the entry segment where the CT 100 and Platina are direct contrasts to each other.
As Bajaj says, mankind resides in the world of opposites where contrarian products make the most sense in terms of relevance and success in an essentially two-horse race arena. He quotes Niels Bohr’s “The opposite of the profound truth may well be another profound truth” to drive the point home.
In this case, the sober and subtle Avenger is in sharp contrast to the stylish and sporty Pulsar. Likewise, in the entry space, the Platina is the direct opposite of the CT 100 which is perhaps more understated and yet relevant to its targeted user.
“From our point of view, there are two strong brands with the Pulsar and Platina at one end while the CT 100 and Avenger double up as the sober and docile alternatives. These in turn operate within the principles that every market is a two horse ,” says Bajaj.
Having fixed the two-brand strategy for two diverse ends of the motorcycle segment, the company is now gearing up for its next big thing in the executive commuter space. Hero MotoCorp’s Splendor and Passion brands have been the clear leaders here for years now and Bajaj Auto’s answer to this was the Discover.
Yet, the Discover has just not done the trick though it remained true to the principle of being different at the time of its launch way back in 2004. Since then, it has been a rollercoaster ride for the brand which has taken a backseat in this tug-of-war.
In this context, it will be interesting to see what Bajaj Auto has in place as a ‘contrarian strategy’ for the commuter segment. How will the new product be different from the Discover in design and what will it be called? What are its price and engine specifications likely to be? Will the Discover brand continue to coexist or shown the door gradually? The answers will be known in the coming months when the motorcycle debuts towards the end of this fiscal.