Report On Customer based Brand Equity in Motor Bike Sector (Focusing on Bajaj Pulsar)

Report On Customer based Brand Equity in Motor Bike Sector (Focusing on Bajaj Pulsar) SUBMITTED TO Abdullah Mohammed Ibrahim Assistant Professor Department of Business administration Northern Bangladesh University SUBMITTED BY Name ID Section Subrata Karmakar Nazmul Hasan Zubran Kaniz Fatema Sharmin Tanvir Ahmed Masud Saifur Rahman Abir Semester BBA 080202759 BBA 060101625 BBA 080160685 BBA 110104010 BBA 110104013 B B B B B Spring Spring Spring Spring Spring 2011 2011 2011 2011 2011

Date of submission: 07th April, 2011

Acknowledgement This report is prepared on the basis of the assignment given by Abdullah Mohamme d Ibrahim assistant professor of Northern University Bangladesh. It was a wonder ful experience while working on the Customer based Brand Equity in Motor Bike Se ctor. At first my thanks go to the almighty God and than to my lecturer. A great number of people have made significant contributions in preparing this paper. I am heavily indebted to all of them. I am expressing my immense gratitude to all of them who have extended enormous support, guidance and speared their valuable time in preparing this paper.

This paper perhaps couldnt have been completed without the continues help and gen erous assistance that has been rendered by Abdullah Mohammed Ibrahim a special d ebt goes to him for being so generous. It would unjust if I do not make a mentio n of and all those people helped with the survey who despite of their busy sched ule speared sometime to answer my quarries. My heartiest gratitude and sincere t hanks for all of them. Most importantly I am thankful to all those members of my group who after assigning the subject constantly worked with me for preparing t his paper.

Executive Summery This report mainly covers three stages. At the first stage we discussed the Bran d, its elements. Then we gave a short brief regarding the six brand of motor bik e we selected. After that we discussed about Brand positioning and the six steps of brand building. In the second chapter, Findings, we discussed about our survey method and its de tail. We discussed the questions related with the six stages with the help of gr aph and explained. That was how the second chapter was completed. And in the final chapter, we had conclusive words regarding the report findings. We suggested some recommendation for Bajaj Pulsar for their betterment.

TABLE OF CONTENT Chapter 1. Brand and its elements Brand Positioning Positioning of Bajaj Auto in two wheeler industry The brands of motor bike Steps of Brand Building Particulars

2.

Findings:

Nature of questionnaire Graphs based on the questions from questionnaire with explanation

3. Conclusion Recommendation Bibliography Appendix

Brand and Brand Elements: Basically the word Brand is derived from the Old Norse word brand, which means to b urn, as brands were and still are the means by which owners of livestock mark the ir animals to identify them. According to American Marketing Association (AMA) , a brand is a name, term, sign, symbol or design, or a combination of them, inten ded to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition. Whenever a marketer creates a new name, logo, or symbol for a new product, he or she has created a brand. It shoul d be recognized that many practicing managers, however refer to a brand as more than that-defining a brand in terms of having actually created a certain amount of awareness, reputation, prominence, and so on in the marketplace. In some sens e, a distinction can thus be made between the AMA definition of a small-b-brand an d the industry practice of a big-b-brand-that is a brand versus a brand. It is importa nt to recognize the distinction because disagreements about branding principles or guidelines often revolve around the definition of what is meant by a brand. The different components of a brand that identify and differentiate it can be ca lled Brand Element. Like the names given to product comes in different forms. Th ere are brand names based on people, places, animals or birds, or other things o r objects. In sum, in creating a brand, marketers have many choices over the num ber and nature of the brand elements they choose to identify their products.

Brand Positioning: Usually the customer-based brand equity (CBBE) model describes the process in ge neral, by which brand knowledge structure should be built to create brand equity . Critical to this view is the creation of strong, favorable, and unique brand a ssociations as part of the brand meaning. This section considers in greater deta il how marketers might determine desired brand meaning or positioning i.e. what they would like consumers to know about the brand as opposed to what they might currently know. Determining the desired brand knowledge structures involves posi tioning a brand. Brand positioning is at the heart of marketing strategy. Brand positioning is th e act of designing the companys offer and image so that it occupies a distinct an d valued place in the target customers mind. Thus positioning, as the name implie s, involves finding the proper location in the minds of a group of consumers or ma rket segment so that they think about a product or service in the right or desired way. Positioning is all about identifying the optimal location of a brand and i ts competitors in the minds of consumers to maximize potential benefit to the fi rm. A good brand positioning helps to guide marketing strategy by clarifying wha t a brand is all about, how it is unique and how it is similar to competitive br ands and why consumers should purchase and use the brand. It is necessary to dec ide 1-who the target consumer is 2-who the main competitors are 3-how the brand is similar to those competitors 4-how the brand is different from those competit ors.

Positioning of Bajaj Auto in the Two Wheeler Industry Bajaj Auto is the flagship company of the Bajaj Group of Companies. Bajaj Auto L imited (BAL) is currently India s second largest two wheeler and three wheeler m anufacturer. The core competency of Bajaj Auto Ltd is its technology and innovat ion. Both DTS-i (Digital Twin Spark Ignition) and DTS-Fi (Digital Twin Spark Fue l Ignition) are technological breakthroughs by Bajaj. BAL is also a pioneer in p roduct innovation having introduced technologies such as ExhausTEC (Exhaust Torq

ue Expansion Chamber), LED Tail Lamps, LCD Display, SNS, Spare parts (Tubeless t ires, rear disc brakes), Black color scheme etc. Thus we observe that BAL which used to be a Defender in 1970-1990 through Bajaj Chetak radically moved towards becoming an Analyzer (1990-1997) by focusing on b ike segments and has now become a Prospector (1997-date) with several patents in its kitty and new bike launches every year. Therefore, for a follower to move o n and become a market leader it is essential that it focus on innovation and con sumer demand.

The Brands of Motor Bike, we studied on: Bajaj Pulsar Bajaj Pulsar DTS-i Manufacturer Production Class standard Bajaj Auto 2001-present

Engine 135/150/180/200/220 cc Air-cooled, Oil Cooled, four-stroke cycle,2-4valve,SOHC, single piston, kick start / electric start Power 21.04 hp (15.69 kW) @ 8,500 rpm (220 cc version) Torque 19.16 Nm (14.13 lbft) @ 6,500 rpm Transmission 5-Gear Suspension Front: Telescopic fork, 135 mm travel Rear: Nitrox gas assisted shock Absorbers, 90-115mm travel. Brakes Front: 240/260 mm (disc) Rear: 130/230 mm (Drum/Disc) Tires 17" tube/tubeless Wheelbase 1320-1345 mm Weight 120-149 kg (dry) 122-152 kg (wet) Fuel capacity Yamaha FZ6 Yamaha FZ6 8-15 lt.

Manufacturer Also called Production Predecessor Successor Class Naked bike

Yamaha Motor Company FZ6 Fazer S2 ABS since 2004 Yamaha FZS600 Fazer FZ8 and FAZER8

Engine 600 cc, liquid-cooled, DOHC, inline 4-cylinder, 16 valves Transmission 6-speed w/multi-plate clutch Wheelbase 56.7 in (1440.2 mm) Dimensions L 82.5 in (2095.5 mm) W 29.5 in (749.3 mm) Seat height 31.1 in (789.9 mm) Weight 2006: 423 lb (192 kg) 2007: 410 lb (190 kg) (dry) Fuel capacity 19.4 l (4.3 imp gal; 5.1 US gal) Related Yamaha FZ1

Hero Honda CBZ Hero Honda CBZ Manufacturer Parent company Honda Production Successor 19992005 CBZ xtreme Hero Honda Motors

Engine 156.8 cc 4-stroke single Transmission 5 speed Weight 141 kg (310 lb) (dry) Related CBZ xtreme Engine: 4-stroke, single cylinder, air - cooled, SOHC Displacement: 156.8 cc Clutch Type: Manual Clutch Primary: Clutch Secondary: Multi-plate wet Transmission: 5-speed:1-down,4-up Carburetor: Keihin slide type with accelerator pump (Transient Power Fuel Contro l System) Final Drive: Roller chain

 Ignition: Electronic CDI Starting: Kick starter/ Electric starter(Optional) Frame: Tubular single semi-cradle with engine as stressed member Suspension: (Front )Telescopic hydraulic fork Suspension: (Rear ) Swing arm with dual hydraulic damper- 5-step adjustment Dimensions: (L*W*H) 2100*755*1130 mm Wheel Base: 1335 mm Braking: (Front) 240mm Disc from NISSIN Braking: (Rear) 130mm Drum Ground Clearance: 160 mm Kerb Weight: 138 kg/ 141 kg Tyres:Front/Rear: 2.75*18-42P/100/90*18-56P Max. Power: 12.8 bhp@8000 rpm Max. Torque: 12.7Nm @6500 rpm Max speed: 113 km/h (speedo reading:120 km/h) Fuel tank: 12.5 1tr (2.5 ltr reserve) Fuel efficiency: 35-40 km/l in City Riding

Bajaj Discover Bajaj Discover DTS-i Manufacturer Bajaj Auto Production 2003Engine 144.8 cc Air-cooled, four-stroke cycle, single piston, Self start, kick start 13 bhp (9.63 kW) max Brakes Disk Brakes Tires 17" Weight 121 kg (wet) Technical specifications Specifications Discover DTS-Si [6] Discover 150 [7] Displacement (cc) Power (bhp) 7.7 Torque(Nm) 7.85 Engine Type DTS-Si Wheelbase (mm) 1305 Kerb Weight (kg) TVS Apache 94.38 13 12.75 DTS-i 1305 115 144.8

121

TVS Apache RTR fi 160 Manufacturer TVS Motors Production 2007-present Class 150 cc Engine 159.7 cc Air-cooled, four-stroke cycle, single piston, kick start / electric sta rt Fuel injection Power 15.7 hp (11.7 kW) @ 8500 rpm Torque 13.1 Nm (9.7 lbfft) @ 6500 rpm Transmission 5-gear constant mesh Suspension Front: Telescopic fork Rear:gas assisted dual shock absorber Brakes Front: 276 mm (disc) Rear: 200 mm (disc) Wheelbase 1300 mm Dimensions W 730 mm H 1100 mm

L 2020 mm

Weight 136 kg (300 lb) (wet) Fuel capacity 16 litres TVS Apache is a motorcycle launched by TVS Motors. TVS Apache is currently avail able in four variants: Apache 150, Apache RTR FI 160, Apache RTR 160 and Apache 180. In each model, RTR stands for "Racing Throttle Response." The RTR FI 160 re tails at around Rs 70,000 (on road, Delhi). Currently more than 250,000 Apaches are on road.

Hero Honda Hunk

Hunk Manufacturer Hero Honda Motors India Ltd Production October 2007 Engine 149.2 cc Top speed 112 km/h Transmission 5-speed manual Suspension gas charged bi shock Brakes Front single disk and rear drum Wheelbase 1,340 mm Fuel capacity 12.2 litres Oil capacity 1 litre Fuel consumption 58 km/l Related cbz xtreme & achiever Hero Honda Hunk is a 150 cc motorcycle launched by Hero Honda Motors India Ltd i n October 2007. It is offered in two variants, kick-start and self-start.

Steps of Brand Building:

Salience: Brand Salience measures awareness of the brand. The depth of brand awareness mea sures how likely it is for a brand element to come to mind, and the ease with wh ich it does so. The breadth of brand awareness measures the range of purchases a nd usage situations in which the brand element comes to mind and depends to a la rge extent on the organization of brand and product knowledge in memory. Performance: Performance is the combination of some specific attributes like: Primary characteristics and secondary features Product reliability Durability and serviceability Service effectiveness Efficiency and empathy Style and design This makes the product specific. Imagery: Brand Imagery deals with the extrinsic properties of the product or service, inc luding the ways in which the brand attempts to meet customers psychological or s ocial needs. Brand Imagery is how people think about a brand abstractly. Four ca tegories can be highlighted as intangibles that can be linked to a brand imagery , are: User Profiles : age, gender, religion Purchase & usage situation: Developing a brand depends on purchase abd usage sit uations. Personalities and values: include attributes like:(Sincerity, excitement, compet

ence, sophistication and ruggedness) History, heritage and experiences Judgments: Brand judgments focus on customers personal opinions and evaluations with regard to the brand. Brand judgments involve how customers put together all of the diff erent kinds of opinions. Customers may take all types of judgments with respect to a brand in terms of creating a strong brand. Feelings: Brand feelings are customers emotional responses and reactions with the respect t o the brand. Brand feelings also relate to the social currency evoked by the bra nd. The emotions evoked by a brand can become so strongly associated that they a re accessible during product consumptions or use. Resonance: The final step of the model focuses on the ultimate relationship and level of id entification that the customer has with the brand. Brand resonance refers to the nature of this relationship and the extent to which customers feel that they ar e in sync with the brand. It includes: Behavioral loyalty Attachment Sense of community Active Engagement

NATURE OF QUESTIONNAIRE: The questionnaire has been sorted into three parts. The first part was designed to collect the demographic information of the customers. The second part is asso ciated with the types of services taken by the customers and reason to switch th

e previous brand of bike. Last part of the questionnaire included questions spec ific to dimensions of the service quality of the brand. A sample questionnaire i s attached in the Appendix part. SCALING TECHNIQUE: The four point scaling method (4 for strongly agree to 1 for strongly disagree) has been used to measure the customer perceptions regarding the Brand Positionin g. SAMPLE PLAN: The sample plan covers target population, sampling technique and sample size. Th ese are the followings. TARGET POPULATION: The target population was the all level of students. SAMPLING TECHNIQUE: The Convenience sampling technique was used to collect the desired data for the research. SAMPLE SIZE: The sample size of the research was 50.

Salience: 1. Matching Slogan from different brand Name. Here 35% could match Bajaj, 33% could match Hero Honda, 20% could match Yamaha, 6% could match TVS, 6% could match Honda, which denoted from question no. 7 (App endix-II)

Performance: 1. Preference of brand under speed, mileage, suspension and weight Here we see, for speed 25% gave pulsar, 23% gave Apache RTR, 20% gave Yamaha FZ , 15% gave Hunk, 13% gave CBZ and 4% gave Discover preference, which denotes the question no. 6 (Appendix-II) Here we see, 25% gave Discover, 21% gave CBZ, 18% gave Pulsar, 16% gave Apache RTR, 10% gave Hunk and 10% gave Yamaha FZ preference, which denotes question no. 6 Here, for suspension, 26% gave pulsar, 24% gave CBZ, 20% gave Apache RTR, 16% ga ve Yamaha FZ, 8% gave Hunk and 6% gave Discover preference, which denotes questi on no.6 Here, 20% gave pulsar, 12% gave Apache, 26% gave Yamaha FZ, 8% gave discover, 16 %gave hunk and 18% gave CBZ preference.

Imagery: 1. Yamaha FZ got the roughest sound of silencer. Here. We see 35% were strongly agree with the statement, 55% were agree with th e statement, 10%were disagree with the statement, which denotes question no 8(F) 2. Yamaha R-15 holds a stronger social status than Bajaj Pulsar. So here we see 45% were strongly agree, 30% were agree, and 25% were disagree w ith the statement, which denotes question no.8(G)

3. A real racing approach is found in TVS Apache RTR than other bikes. here we see that, 30% were strongly agree, 40% were agree, 25% were disagree an d 5% were strongly disagree with the statement, which denotes question no 8(H) 4. Bajaj Pulsar makes them most clear than other brands through their slogan-Defi nitely male. Here we see, 45% were strongly agree, 35% were agree and 20% were disagree wit h the statement, which denotes question no.8(I) (Appendix-II)

Judgments: 1. Bajaj Pulsar is the best bike as a whole. Here, we see that 30% were strongly agree, 40% were agree, 20% were disagree an d 10% were strongly disagree with the statement which denotes the question no. 8 (K) 2. TVS Apache RTR has the strongest promotional activities. Here we see that, 15% were strongly agree, 25% were agree, 355 were disagree an d 25% were strongly disagree with the statement which denotes the question no. 8 (M) 3. Yamaha FZ has come with the entire feature I wanted. Here we see, 30% were strongly agree, 35% were agree, 25% were disagree and 10% were strongly disagree with the statement, which denotes the question no 8(L)

Feelings: 1. Bajaj Pulsar provides a feeling of fun. Here, 45% were strongly agree, 40% were agree and 15% were disagree with the st atement, which denotes the question no. 8(N)

2. Yamaha FZ is the brand, which is all about excitement. Here, 30% were strongly agree, 40% were agree, 25% were disagree and 5% were str ongly disagree with the statement, which denotes the question no. 8(O) Resonance: 1. Bajaj Pulsar is the only brand of Bajaj, I need Here we see that, 35% were s trongly agree, 45%were agree and 20% were disagree with the statement, which den otes question no. 8(R) 2. I feel a deep connection to those people who use Bajaj Pulsar Here, 50% were strongly agree, 40% were agree and 10% were disagree with the st atement, which denotes the question no. 8(P)

Conclusion: From the findings, we find that in each stage of Brand Building, Bajaj Pulsar is more preferable than other existing competitors. So, we can conclude that, Baja j Pulsar holds a top Brand Positioning in perspective of Bangladesh. Most of the respondent preferred Bajaj Pulsar as their first choice. Bajaj Pulsar has positioned itself as a brand catering to the needs of all segme nts especially Socio-Economic Classes. Majority of the customers feel that they look for features in a motorbike and with Bajaj Pulsar; price is a minor barrie r because customers have a perception that Bajaj Pulsar could tinker around with the price but not quality as it is their USP to deliver quality motorbikes. Loy al customers think their brand is superior for some reason, and this superiority has the effect of minimizing their price sensitivity. Non-loyal or occasional u sers have differing quality perceptions that result in greater price sensitivity . According to the survey conducted, Bajaj Pulsar offers superior products at si milar price levels, and their common operating system on the motorbike convinces you instantly that you want nothing but just another Bajaj Pulsar. The last mod els launched are quite stylish in the same sense and the combination of high and friendly technology with fashion at affordable prices offer superior value.

Recommendation: 1. Graduating Customers from the 100cc to Higher Segments 2. Focus on Gearless Scooters 3. Entry into Four Wheeler Segment 4. Scaling Up Service Centers 5. Focus on Easy Credit Lending 6. Investment in Research and Development 7. Focus on Exports and Global Market 8. Disbanding of Dedicated Sales Force for each Product Bajaj has shown the willingness to change and thus has been able to achieve stro ng sales growth. To further consolidate its position and gain market share in th e industry, Bajaj needs to do strategic rethinking and assess its product focus.

The new strategy should also be backed by efficient on the ground customer supp ort and continuous research for product innovation. Bibliography: 1. Keller lane Kevin, customer based brand equity in mobile handset sector; t he journal of strategic Brand management, 3rd edition (2011), 75. 2. 3. 4. 5. 6. 7. http://en.wikipedia.org/wiki/Bajaj_Pulsar http://en.wikipedia.org/wiki/Yamaha_FZ http://en.wikipedia.org/wiki/HeroHonda_Hunk http://en.wikipedia.org/wiki/Bajaj_Discover http://en.wikipedia.org/wiki/TVS_ApacheRTR http://en.wikipedia.org/wiki/HeroHonda_CBZ

Appendix-I Dear Respondent, I am a student of Business Administration of Northern University Bangladesh, I a m going to conduct a research entitled Brand positioning of Motor Bike. For this r egard your kind cooperation is highly appreciated. Please read the following question carefully and answer it. 1. Name: . Contact: 2. Age: 3. Education: a) SSC b) HSC c) Graduate d) Post Graduate e) Other s 4. Profession: a) Private Service b) Govt. Service c) Business d) Student e) Others. 5. How many names from the following motor bike brands do you know? a. b. c. d. e. f. g. Bajaj Pulsar TVS Apache RTR Yamaha FZ Bajaj Discover Hero Honda Hunk Hero Honda CBZ Other (please mention the name)

6. Which motor bike brand might you be likely to prefer under the following situ ation? Company Speed Mileage Suspension Bajaj Pulsar TVS Apache Yamaha FZ Bajaj Discover Hero Honda Hunk Hero Honda CBZ Weight

7. Match the following slogan from the given Brand of Motor Bike.

Slogan Brand Dhak Dhak Go Yamaha Yes we are different Bajaj You meet the nicest people on a honda Definitely Male TVS A bike for anyone Honda Suzuki 8.

Hero Honda

No Particulars Strong Agree Agree Disagree Strong Disagree A Bajaj Discover has a smooth control. 4 3 2 1 B Hero Honda Hunk is a comfortable bike. 4 3 2 1 C The upright sitting position of Yamaha FZ makes it more attractive. 4 3 2 1 D Pulsar is the most stylish bike of Bajaj series. 4 3 2 1 E Bajaj Pulsar is the most easily serviced brand. 4 3 2 1 F Yamaha FZ got the roughest sound of silencer. 4 3 2 1 G Yamaha R-15 holds a stronger social status than Bajaj Pulsar. 4 3 2 1 H A real racing approach is found in TVS Apache RTR than other bikes. 4 3 2 1 I Bajaj Pulsar makes themselves most clear than other brands through their slogan-Definitely Male. 4 3 2 1 J Pulsar is the most stylish bike of Bajaj series. 4 3 2 1 K Bajaj Pulsar is the best bike as a whole. 4 3 2 1 L Yamaha FZ has come with the entire feature I wanted. 4 3 2 1 M TVS Apache RTR has the strongest promotional activities. 4 3 2 1 N Bajaj Pulsar provides a feeling of fun. 4 3 2 1 O Yamaha FZ is the brand, which is all about excitement. 4 3 2 1 P I feel a deep connection to those people who use Bajaj Pulsar. 4 3 2 1 Q If there is any brand, I like to talk about to others that is Bajaj Puls ar. 4 3 2 1 R Bajaj Pulsar is the only brand of Bajaj, I need 9. What do you think the most unique part of Bajaj Pulsar? ____________________ ________________________________________________________________________________ ______________________________________ 10. Do you have any suggestion regarding the Bajaj Brand Development? ________________________________________________________________________________ __________________________________________________________

Thanks for your kind co-operation Appendix-II Salience: No. Number of respondents Bajaj Yamaha Hero Honda Honda TVS Result Q - 01 50 18 16 10 wareness here.

So, Bajaj got the high a

Performance (Speed); Number of respondents Bajaj Pulsar Yamaha FZ Hero Honda Hunk Hero Honda CBZ TVS Apache RTR Bajaj Discover Result Q - 01 50 13 10 8 6 got the most response here.

11

So, Bajaj Pulsar

Imagery (Bajaj Pulsar makes they most clear than other brands through their slog an-Definitely Male: No. Number of respondents Strongly Agree Agree Disagree Strongly Disagree Result Q - 04 50 23 17 10 0 So Bajaj Pulsar had a positive i magery stage.

That was the sample of the given explanation of graph in Findings.