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http://www.xbhp.com/talkies/news/172...tml#post590842
Source: Wheelsunplugged (originally quoted from Hindu BusinessLine)
http://www.xbhp.com/talkies/news/172...tml#post590842
Source: Wheelsunplugged (originally quoted from Hindu BusinessLine)
According to a report in the business daily The Business Line, it has been reported that Bajaj Auto will launch the new Discover 125 next month as part of a brand strategy to grow sales from the present 1.25 lakh motorcycles each month.
It was reported that of these, the Discover 100 accounts for 85,000 units with its 150 sibling taking up the balance 40,000 units. With the 125, Bajaj Auto is hopeful that monthly numbers could touch 1.65 lakh units halfway through 2011-12.
This will translate into two million units annually, implying that Brand Discover's value in just two years, since the journey began with the 100cc bike, would be at least $1.5 billion (around Rs 7,000 crore). According to the report, the new bike is part of a carefully drawn-out strategy conceived by Bajaj Auto nearly three years ago.
The report quoted a source as saying “The idea was to first cover both extremes of the commuter market. The Discover 100 fulfilled the aspiration of owning the brand and getting the mileage. The 150 had the power and awe-inspiring features at a killer price.’’
It was mentioned that the Discover 125 is meant to meet the needs of buyers who would not opt for a Bajaj in the 100cc space and would much rather settle for a Hero Honda bike. “And as incredulous as it may sound, a significant section of customers are actually intimidated by the more powerful Discover 150. To them, powerful bikes mean low mileage and high maintenance costs,” the source said, according to the report.
The report stated that the 125cc option is, therefore, intended to give these buyers the best of both worlds. It will have two versions priced at around Rs 44,000 (drum brakes) and Rs 47,000 (with disc brakes) each.
Interestingly, the Discover 150 with disc brakes is marginally dearer at Rs 48,000 but Bajaj Auto's market feedback shows that even this would not tempt the 125cc customer. It was reported that according to the experts, the Discover brand strategy could catapult Bajaj to a similar position in the 125cc space where there is no big brand right now.
According to the report, from Bajaj Auto's point of view, the success of the Discover vindicates it brand strategy where the Pulsar is the other important player. Since the time the Discover 100 was launched in July 2009, followed by the 150 in April the following year, numbers have been growing by the month. And also an official explained “More importantly, this has been a profitable strategy which explains why Bajaj has constantly posted EBITDA of over 20 per cent every quarter.”
It was reported that of these, the Discover 100 accounts for 85,000 units with its 150 sibling taking up the balance 40,000 units. With the 125, Bajaj Auto is hopeful that monthly numbers could touch 1.65 lakh units halfway through 2011-12.
This will translate into two million units annually, implying that Brand Discover's value in just two years, since the journey began with the 100cc bike, would be at least $1.5 billion (around Rs 7,000 crore). According to the report, the new bike is part of a carefully drawn-out strategy conceived by Bajaj Auto nearly three years ago.
The report quoted a source as saying “The idea was to first cover both extremes of the commuter market. The Discover 100 fulfilled the aspiration of owning the brand and getting the mileage. The 150 had the power and awe-inspiring features at a killer price.’’
It was mentioned that the Discover 125 is meant to meet the needs of buyers who would not opt for a Bajaj in the 100cc space and would much rather settle for a Hero Honda bike. “And as incredulous as it may sound, a significant section of customers are actually intimidated by the more powerful Discover 150. To them, powerful bikes mean low mileage and high maintenance costs,” the source said, according to the report.
The report stated that the 125cc option is, therefore, intended to give these buyers the best of both worlds. It will have two versions priced at around Rs 44,000 (drum brakes) and Rs 47,000 (with disc brakes) each.
Interestingly, the Discover 150 with disc brakes is marginally dearer at Rs 48,000 but Bajaj Auto's market feedback shows that even this would not tempt the 125cc customer. It was reported that according to the experts, the Discover brand strategy could catapult Bajaj to a similar position in the 125cc space where there is no big brand right now.
According to the report, from Bajaj Auto's point of view, the success of the Discover vindicates it brand strategy where the Pulsar is the other important player. Since the time the Discover 100 was launched in July 2009, followed by the 150 in April the following year, numbers have been growing by the month. And also an official explained “More importantly, this has been a profitable strategy which explains why Bajaj has constantly posted EBITDA of over 20 per cent every quarter.”
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