From Rajiv Bajaj’s point of view, differentiation comes from displacement. In turn, there is no replacement for displacement.
Simply put, the Managing Director of Bajaj Auto firmly believes that if a challenger motorcycle brand’s engine capacity (or cc) is not different, it will not succeed in the market and will only make marginal gains.
It is this thought process that forms the core of ‘V’, the first 150cc motorcycle launched in the value segment dominated by Hero MotoCorp’s Splendor and Passion brands.
Almost all offerings here are in the 100-110cc range which includes a host of models from Honda Motorcycle & Scooter India and, more recently, TVS Motor which launched the Victor.
Making a mark “We believe in the strategy of differentiation and this is where the product story unfolds,” says Bajaj. It is something that he has constantly maintained over the years going back to 2004 when the Discover was the first 125cc option in the value space.
Over the years, the landscape for this product category has also changed considerably and it is in a far more competitive arena that the ‘V’ will strive to make a mark. The Splendor has been the leader of the value segment for years now and attempts by Honda to upset the Hero applecart with rival motorcycle models have not really worked.
Neither has Bajaj Auto been particularly successful with the Discover which had phases of high growth before losing its momentum. This time around, the challenge for the company was to offer a commuter option that had the potential to dominate the value segment.
According to Rajiv Bajaj, the answer starts with engine displacement and not other features like valves or tubeless tyres “which are all secondary”. By the end of the day, tackling the elusive value segment means creating a good product that is delivered with a good story.
Bajaj believes that for some companies, ‘good’ is defined as following something familiar. Hence, in the 100-110cc space, there are similar products which pretty much “tell the same story in a nice way” where mileage, comfort etc are woven in as part of a script. “Despite this, it has been clearly proven that this does not work and the leader is still the leader,” he reiterates.
Different strokes Prior to the 'V', the company had first tested this theory out with the Pulsar launched 15 years ago in the premium space. There were 150cc sports bikes already present then but Bajaj believes Pulsar redefined the premium segment because it was a differentiated product.
At that point in time, the 180cc was launched in tandem with its 150cc sibling. The company, however, never advertised the 150cc but started by telling the 180cc story. Over the years, the 200cc and 220cc options have entered the arena and, yet, most of the sales still come from the 150cc Pulsar.
As Bajaj explains, this is the underlying difference between marketing and sales where positioning as a differentiator is the key.
The Pulsar succeeded because it had something different to offer in the form of the 180cc version. Had this not been the case, its sales script may well have turned out differently. “Sales without marketing is like a ship on dry land which will never get anywhere,” says Bajaj.
Banking on the V Will the 'V' therefore do the trick in a segment where the Splendor has virtually been the monarch of all it surveys? These are early days yet especially with the official launch still some weeks away. It will be competitively priced for sure and the million dollar question is if the overall package will weave magic with its targeted user.
The project, which kicked off in January 2014, was codenamed MCBC (Mother of Commuter Bikes is Coming). One of its biggest draws is, of course, the INS Vikrant DNA which will part be of its fuel tank. The Bajaj Auto R&D team worked to purify the metal and make it suitable for use. The engineering department then took the purified ingot, which is now part of the supply chain for the V.
“The fuel tank is the signature of the motorcycle and contains the metal of INS Vikrant,” says Bajaj. Clearly, its supply will not be infinite and this by itself could be a trigger for interested buyers to queue up for the 'V'. Beyond this, the company will be hoping that the other critical differentiators will do the trick in its growth story subsequently.
Bajaj, however, is reasonably confident about this strategy being the best bet for the value segment which has continued to elude his company despite the Discover’s early promise.
He bases his faith on the success of the CT100 and Platina which are bringing in the numbers in the entry segment. Likewise, the Pulsar and its rejuvenated ally, Avenger, have strengthened the hold at the premium end.
In each of these cases, it is the differentiator principle that has led the way and Bajaj maintains that there is really no other better option in taking on the market leader. Finally, it is up to the customer to decide if the 'V' will do the trick.