A STUDY ON

PRODUCT MODIFICATION A PROJECT REPORT SUBMITTED IN PARTIAL FULFILMENT OF REQUIREMENT FOR THE AWARD OF DEGREE OF BACHILOR IN MANAGEMENT STUDIES TO UNIVERSITY OF MUMBAI

SUBMITTED BY AMIT SHAH T.Y.B.M.S SEMESTER V, ROLLNO:36

UNDER GUIDANCE OF MRS.IPSHITA DAS

SUBMITTED TO:THE COORDINATOR STERLING COLLEGE OF ARTS, COMMERCE AND SCIENCE NERUL 2011
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Declaration

I, AMIT SHAH student of STERLING College, NERUL TYBMS SEMESTER V hereby declare that I have completed the project on

PRODUCT MODIFICATION
in the academic year 2011.The information submitted is true and original to the best of my knowledge.

AMIT SHAH
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STERLING COLLEGE (ARTS, COMMERCE & SCIENCE) NERUL NEW MUMBAI- 400706

CERTIFICATE

I, Prof. IPSHITA DAS Project Guide hereby certify that Mr. AMIT SHAH of T.Y.B.M.S, Semester V of STERLING COLLEGE,NERUL has completed the project in

PRODUCT MODIFICATION
in the academic year 2011 .The information submitted is true and original to the best of my knowledge.

Project Coordinator

College seal

Principal

ACKNOWLEDGEMENT
I take this opportunity to express my deepest gratitude & thanks to my project guide Prof: IPSHITA DAS for giving her valuable & precious suggestions & guidelines to me in the successful completion of this project.

I would also like to thank the library, computer lab, bank staff for extending the help in issuing me the very best of the books & articles from which I was able to gather the significant data which is put in together to make this project.

Submitted by: AMIT SHAH T. Y. B. M. S.

CONTENTS
1. INTRODUCTION 2. OBJECTIVE 3. PRODUCT MODIFICATION ,CONTROL & MANAGEMENT 4. PRODUCT LIFE CYCLE 5. PRODUCT & PRODUCT MIX 6. PRODUCT DEVELOPMENT PROCESS 7. BAJAJ : HISTORY OUTLOOK SALES PERFORMANCES & MARKET SHARES PRINCIPLES OF MARKETING TECHNOLOGY TECHNICAL SPECIFICATION OF BAJAJ 220cc 8. QUESTIONNAIRE 9. SUGGESTION 10.CONCLUSION 11.BILBOGRAPHY

1. INTRODUCTION
The two-wheeler makes up the largest segment of the Indian Automobile industry. Product modification is, as it name suggests an alteration of some kind to the product in order to remove the risk of choking. That is usually done after the product introduction to the consumer market, when a certain risk has been identified in the product. It is a modification and improvement to existing product. Product life-cycle in the two wheeler market has declined in the recent past and manufacturers needs to replace older models with a span of two to three years. Whenever there is a decline in product then modification is needed to satisfy the consumer for further comparison I have selected Bajaj group. I have compared two bikes those are Bajaj Pulsar and Bajaj Pulsar DTS-i. The company modified the engines of bike. The production process for Pulsar has been restricted and so the supply. The most popular bikes are Bajaj Discover DTS-I, Platina, Pulsar DTS-i 180cc, 200cc, 220cc. Bajaj has a reputation of being the most stylish, fuel-efficient and the largest selling Indian motorcycle. The two wheelers have played a pivotal role in the surging growth of the Indian automobile industry. Over the years the domestic sale of various brand of two wheelers have grown in large numbers. Even in the sphere of exports, the two wheelers have been able to maximize the profit margin of various two wheeler manufacturers. There are mainly three Models of two wheelers, which are classified as scooters, motorcycles and mopeds. In the recent years the two wheeler industry has witnessed sea change. During the yesteryears the scooters used to have about 50% of the market share and the rest were divided between the motorcycles and mopeds. But now the trend indicates that people are preferring motorcycles more than that of the scooters. At present there is a huge demand for the motorcycles in India .There are a number of two wheeler companies in India that produce vehicles of extremely high standard.

Some of the leading two wheeler manufacturers in India are Bajaj Auto., TVS Motor, Kinetic Motor, Suzuki Motor Corporation, Royal Enfield Motors India, Hero Honda Motors, Yamaha Motor India, LML India and Monto Motors. Many of two wheelers manufactured by these companies are exported to countries in South East Asia, Africa and South America. Motorcycles are usually priced higher than that of the scooters and mopeds. They are even equipped with more features for faster travel. Based upon the engine displacements and power capacity motorcycles are further classified as: road bikes, trail bikes, racing bikes and touring bike. Most of the motorcycles in India come with engine capacity of about 100 cc to 250 cc. The engine capacity of scooters usually vary between 100 cc to 150 cc. Mopeds have small engine capacity ranging between 50cc to 100 cc. Most of the automobile companies in this segment are always coming up with newer variants of different models of two wheelers. To be in the long run these companies are even adding more number of features to these vehicles.

2. OBJECTIVE
In today global world marketing places an important role. As I am interested in marketing field I have selected this topic. For every product at regular interval of time improvement and modification is needed. Every product has to go through introduction stage, growth, maturity and decline stage. After decline stage to satisfy customer product modification is needed. I want to know about marketing so better option is project related to marketing so I have selected this topic.

3. PRODUCT MODIFICATION
Phrases such as continuous quality improvement, redesign and updated styling all point towards modifying the product, Such modification can be of three types: clearly better (for example; an upgrade), different (example: a styling or ingredient change that is likely to appeal to some customers and less to others), and inferior (example: the substitution of less expenses ingredient or aspects of the offering). In assessing the desirability of the product change, the reactions of three groups are crucial, loyal customers, occasional customer and current non customers. Obviously the ideal situation is for all three groups to try the new version, prefer it, and buy it more often. Because this almost never occurs, however, results involve the changes in behavior in the different groups. Based on this plus cost considerations, a decision can be made. The basic dilemma can be considered by using the typology in the table below. 1. Idea generation 2. Concept development 3. Feasibility screening 4. Concept testing 5. Product development 6. Product testing 7. Market testing 8. Go-on-go decision The task begins by assessing the number of loyal customers, occasional customers, & non-customers who might consider trying a new version of a product. Next the trial rates for each group must be assessed. Consider now new Pepsi introduction. One unforeseen problem with the introduction was that loyal Pepsi buyers would not even try the new version: Pepsi was a prisoner of its past success & brand equity to the point where many Pepsi loyal drinkers viewed any change as undesirable. Thus an interesting trade-off but cast you loyal customers; small changes may remain loyal but not attract new customers. Consequently, we could expect dramatic change from 9

smaller share product that risk losing fewer loyal customers. After trial, reactions can (somewhat arbitrarily) be divided into three categories: those who prefer the new version about the same as the old or those who do not like the new version. The final information needed is the profit implications of each combination of customer type, decision to try or not to try, & reaction to trial.. Some profit implications are relatively clear: non-trial by loyal or occasional customers means the loss of these customers & hence whatever lifetime value they represent. Similarly, if loyal or occasional customers try the new product & are indifferent between the new & old version, there is no profit implications other than the change in margin resulting from price & cost indifferences between the new & old formulation. Triers among either occasional customer or non-occasional customers who find the product Good but not great essentially contribute whatever profit or losses result from that trial sale & then return to their traditional buying patterns. In considering the new variants, then the new impact of customers can be structured via, a decision tree, which shows that the big plus is occasional users or non-users who increase their usages & the big minus is loyal customers who decrease or cease usage. Of course, non-customers considerations are also relevant. The most obvious is cost. This includes both the raw material cost & any other considerations include the impact on the employees & the overall image of the company.

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4. PRODUCTION CONTROL
The Surest Foundation of the manufacturing concern is Quality. After that and a long way after, comes Cost. Production control is the lengthy process of guiding and directing the flow of production so as to have production in the best and cheapest methods. It is concerned with smooth, efficient and economical working of the whole factory or plant. Production control chalks out what kind of parts to make, How many and When. It also decides what assembled products to make, when and out of what parts. Production plans are not capable of self-actuating and do not lead to automatic accomplishment. In order to achieve organizational objectives and to complete production plans, production managers have to regulate work assignment, to review the work progress and check operations falling within their jurisdiction. In the case of factories, the transformation of inputs into outputs is the production function. Where the output has known relationship to the inputs could be shown as: INPUTS Production Function OUTPUT

What is Production Control?

According to Spriegel and Lansburgh, Production Control is the process of planning production in advance of operations, establishing the exact route of each individual item, part of assembly, setting, starting and finishing date for each important item, assembly and the finished products, and releasing the necessary orders as well as initiating the required follow-up to effectuate the smooth functioning of the enterprise. In the words of Broom, Production Control is facilitating service functions in a manufacturing plant. It is concerned with planning and time scheduling production and with efficient coordinating of manufacturing activities, so the product flows through the plant on schedule. The procedure of planning, routing, scheduling, dispatching, and expediting the flow of materials, parts, subassemblies, and assemblies within the plant from the start to the finished product in an orderly and efficient manner. 11

NEED FOR PRODUCT MODIFICATION

A companys positioning & differentiation strategy must change as the product, market, & competitors change overtime. Here, we will describe the concept of the product Life Cycle (PLC) & the normal changes as the product passes through each life cycle stages. To say that a product has a life, cycle is to assort four things: 1. Product have a limited life 2. Product sale pass through distinct stage, each posing different challenges, opportunities, & problems to the seller. 3. Profits rise & fall at different stages of the product life cycle. 4. Product requires different marketing, financial, manufacturing, purchasing & human resource strategies in life cycle stage.

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5. PRODUCT MANAGEMENT
Product development: means offering new or improved products for present market. By knowing the present markets needs, a firm may see ways to add or modify product features, create several quality levels, or add more types or sizes to better satisfy customers. New Product Development Every company must develop new products. New products development shapes the companys future. A company can add new products through acquisition or development. The acquisition route can take three forms:

the company can buy other companies it can acquire patents from other companies it can buy a license or franchise from another company

The development route can take two forms:

the company can develop new products in its own laboratories; or It can contract with independent researchers or new-product development firms to develop specific new products.

Competition is strong and dynamic in most markets. So it essential for a firm to keep developing new products-as well as modifying its current products-to meet changing customer needs and competitors actions. Booz, Allen and Hamilton have identified six categories of new products: 1. New-to-the world products 2. New-product lines. New products that allow a company to enter an establishment market for the first time.

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3. Additional to existing product lines: New products that supplement a companys established product lines (package sizes, flavor and so on.)

4. Improvements and revisions of existing products: New products that provide improved performance or greater perceived value and replace existing products. 5. Repositioning existing products that are targeted to new markets or market segmentation. 6. Cost reduction: new products that provide similar performance at lower cost

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PRODUCT LIFE CYCLE

1. Product development phase Product development phase begins when a company finds and develops a new product idea. This involves translating various pieces of information and incorporating them into a new product. A product is usually undergoing several changes involving a lot of money and time during development, before it is exposed to target customers via test markets. Those products that survive the test market are then introduced into a real marketplace and the introduction phase of the product begins. During the product development phase, sales are zero and revenues are negative. It is the time of spending with absolute no return. 2. Introduction phase The introduction phase of a product includes the product launch with its requirements to getting it launch in such a way so that it will have maximum impact at the moment of sale. A good example of such a launch is the launch of Windows XP by Microsoft Corporation. This period can be described as a money sinkhole compared to the maturity phase of a product. Large expenditure on promotion and advertising is common, and quick but costly service requirements are introduced. A company must be prepared to spend a lot of money and get only a small proportion of that back. In this phase distribution arrangements are introduced. Having the product in every counter is very important and is regarded as an impossible challenge. Some companies avoid this stress by hiring external contractors or outsourcing the entire distribution arrangement. This has the benefit of testing an important marketing tool such as outsourcing. Pricing is something else for a company to consider during this phase. Product pricing usually follows one or two well structured strategies. Early customers will pay a lot for something new and this will help a bit to minimize that sinkhole that was mentioned earlier. Later the pricing policy should be more aggressive so that the product can become competitive.

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A successful product introduction phase may also result from actions taken by the company prior to the introduction of the product to the market. These actions are included in the formulation of the marketing strategy. This is accomplished during product development by the use of market research. Customer requirements on design, pricing, servicing and packaging are invaluable to the formation of a product design. A customer can tell a company what features of the product is appealing and what are the characteristics that should not appear on the product. He will describe the ways of how the product will become handy and useful. So in this way a company will know before its product is introduced to a market what to expect from the customers and competitors. A marketing mix may also help in terms of defining the targeted audience during promotion and advertising of the product in the introduction phase.

3. Growth phase
The growth phase offers the satisfaction of seeing the product take-off in the marketplace. This is the appropriate timing to focus on increasing the market share. If the product has been introduced first into the market, (introduction into a virgin1 market or into an existing market) then it is in a position to gain market share relatively easily. A new growing market alerts the competitions attention. The company must show all the products offerings and try to differentiate them from the competitors ones. A frequent modification process of the product is an effective policy to discourage competitors from gaining market share by copying or offering similar products. Other barriers are licenses and copyrights, product complexity and low availability of product components. Promotion and advertising continues, but not in the extent that was in the introductory phase and it is oriented to the task of market leadership and not in raising product awareness. A good practice is the use of external promotional contractors. This period is the time to develop efficiencies and improve product availability and service. Cost efficiency and time-to-market and pricing and discount policy are major factors in gaining customer confidence. Good coverage in all marketplaces is worthwhile goal throughout the growth phase. 16

Managing the growth stage is essential. Companies sometimes are consuming much more effort into the production process, overestimating their market position. Accurate estimations in forecasting customer needs will provide essential input into 1 A good example of a virgin market can be considered the market of China. This market was closed to most western companies and their products and is slowly opening up to new products and services production planning process. It is pointless to increase customer expectations and product demand without having arranged for relative production capacity. A company must not make the mistake of over committing. This will result into losing customers not finding the product on the self. Multi distribution channel is one that offers back up distribution ways. A good example is the use of retail stores and the use of Internet. The former requires a completely different distribution channel than the latter and a product usually is distributed through the former first. The decision for withdrawing a product seems to be a complex task and there a lot of issues to be resolved before with decide to move it out of the market. Dilemmas such as maintenance, spare part availability, service competitions reaction in filling the market gap are some issues that increase the complexity of the decision process to withdraw a product from the market. Often companies retain a high price policy for the declining products that increase the profit margin and gradually discourage the few loyal remaining customers from buying it. Such an example is telegraph submission over facsimile or email. Dr. M. Avlonitis from the Economic University of Athens has developed a methodology, rather complex one that takes under consideration all the attributes and the subsequences of product withdrawal process. Sometimes it is difficult for a company to conceptualize the decline signals of a product. Usually a product decline is accompanied with a decline of market sales. Its recognition is sometimes hard to be realized, since marketing departments are usually too optimistic due to big product success coming from the maturity phase.

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This is the time to start withdrawing variations of the product from the market that are weak in their market position. This must be done carefully since it is not often apparent which product variation brings in the revenues. The prices must be kept competitive and promotion should be pulled back at a level that will make the product presence visible and at the same time retain the loyal customer. Distribution is narrowed. The basic channel is should be kept efficient but alternative channels should be abandoned. For an example, a 0800 telephone line with shipment by a reliable delivery company, paid by the customer is worth keeping

4. DECLINE PHASE

The decision for withdrawing a product seems to be a complex task and there a lot of issues to be resolved before with decide to move it out of the market. Dilemmas such as maintenance, spare part availability, service competitions reaction in filling the market gap are some issues that increase the complexity of the decision process to withdraw a product from the market. Often companies retain a high price policy for the declining products that increase the profit margin and gradually discourage the few loyal remaining customers from buying it. Such an example is telegraph submission over facsimile or email. Dr. M. Avlonitis from the Economic University of Athens has

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developed a methodology, rather complex one that takes under consideration all the attributes and the subsequences of product withdrawal process. Sometimes it is difficult for a company to conceptualize the decline signals of a product. Usually a product decline is accompanied with a decline of market sales. Its recognition is sometimes hard to be realized, since marketing departments are usually too optimistic due to big product success coming from the maturity phase. This is the time to start withdrawing variations of the product from the market that are weak in their market position. This must be done carefully since it is not often apparent which product variation brings in the revenues. The prices must be kept competitive and promotion should be pulled back at a level that will make the product presence visible and at the same time retain the loyal customer. Distribution is narrowed. The basic channel is should be kept efficient but alternative channels should be abandoned. For an example, a 0800 telephone line with shipment by a reliable delivery company, paid by the customer is worth keeping.

PART 2: ANALYSIS OF PRODUCT LIFE CYCLE MODEL

There are some major product life cycle management techniques that can be used to optimize a products revenues in respect to its position into a market and its life cycle. These techniques are mainly marketing or management strategies that are used by most companies worldwide and include the know-how of product upgrade, replacement and termination. To comprehend these strategies one must first make a theoretical analysis of the model of product life cycle. In the mid 70s the model of product life cycle described in Part 1, was under heavy criticism by numerous authors. The reasons behind this criticism are described bellow: a. The shift changes in the demand of a product along a period of time makes the distinction of the product life cycle phase very difficult, the duration of those almost

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impossible to predict and the level of sales of the product somewhat in the realm of the imagination. b. There are many products that do not follow the usual shape of the product life cycle c. The product life cycle does not entirely depend on time as shown in fig. 1. It also depends on other parameters such as management policy, company strategic decisions and market trends. These parameters are difficult to be pinpointed and so are not included in the product life cycle as described in Part 1. The model of product life cycle also depends on the particular product. There would be different models and so different marketing approaches. There are basically three different types of products: a product class (such as cars), a product form (such as a station wagon, coupe, family car etc of a particular industry) and a product brand of that particular industry (such as Ford Escort). In the other hand the life cycle of a product form or brand reflects the competitiveness of a company (i.e. sales, profits) and therefore follows more closely the product life cycle model. Nevertheless, a product manager must know how to recognize which phase of its life cycle is a product, regardless of the problems in the model discussed above. To do that a good method is the one, suggested by Donald Clifford in 1965, which follows. Collection of information about the products behavior over at least a period of 3 5 years (information will include price, units sold, profit margins, return of investment ROI, market share and value). Analysis of competitor short-term strategies (analysis of new products emerging into the market and competitor announced plans about production increase, plant upgrade and product promotion). Analysis of number of competitors in respect of market share. Collection of information of the life cycle of similar products that will help to estimate the life cycle of a new product. Estimation of sales volume for 3 5 years from product launch.

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PRODUCTS

BAJAJ PULSAR 220 DTSI-FI

BAJAJ PULSAR 200 DTSI

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BAJAJ PULSAR 180 DTSI

BAJAJ PULSAR 150 DTSI

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PRODUCT AND PRODUCT MIX

Product Planning refers to the systematic decision making related to all aspects of the development and management of a firms products including branding and packaging. A product is anything that can be offered to a market to satisfy a want or need. Each product includes a bundle of attributes capable of exchange and use. Products that are marketed include physical goods, services, experiences, events, persons, places, organizations, properties, information, and ideas. The marketing manager needs to understand how markets develop overtime, in order better to plan and manage products, their life-cycles and their marketing strategies. Differences between Goods and Services Goods are tangible. You can see them, feel them, touch them etc. Services are intangible. The result of human or mechanical efforts to people Sales of goods and services are frequently connected, i.e. a product will usually

incorporate a tangible component (good) and an intangible component.

Product Levels
A product has five levels. Core benefits- the essential service or benefit that the buyer is buying. E.g. getting clean, rest and sleep Basic (generic) products - the basic product recognized as such. E.g. soap; room components bed, bathroom Expected products - the set of attributes and conditions that the buyer normally expects in buying the product. E.g. smell, shape; clean bed, towel, quietness, etc Augmented products - additional services and benefits that the seller adds to distinguish the offer from competitors. E.g. anti-bacterial, moisturizing; fresh flowers, rapid services, etc Potential product- the set of possible new features and service that might eventually be added to the offer. That exceeds customer expectations. E.g. Vitamins, candy on the pillow. 23

Product Classifications
1. Durability and Tangibility a) Non-durable goods b) Durable goods c) Service 2. Consumer goods Classification: a) Convenience goods b) Shopping goods c) Specialty goods d) Unsought goods 3. Industrial Goods Classification 1) Material and parts- raw material, manufactured materials and parts 2) Capital items- installations and equipment 3) Supplies and business services

Managing the Product Mix

If an organization is marketing more than one product it has a product mix. o Product item a single product o Product line all items of the same type o Product mix--total group of products that an organization markets In a dynamic marketing environment, the product mix is not static. The effects of changing technology, evolving competition and changes in customer needs mean that is most important for an organization to find ways of keeping its product ranges fresh and interesting. This opens up a number of management problems, requiring planned procedures and strategies in order to: o retain and maintain existing products so that they continue to meet their objectives o modify and adapt existing products to take advantage of new technology, emerging opportunities or changing market conditions. delete old products that are close to the end of their working lives and no longer serve their purpose Introduce a flow of new products to maintain or improve sales and profit levels and to form a firm foundation for tomorrows market. Too many products could put an organization at risk, as product launch is resource intensive with no guarantee of 24

success. At the other extreme, too many declining products could threaten the future of the business as sales and profits start to fall. An element of a Product Mix Depth measures of products that are offered within each product line. Width measures the of product lines a company offers. Product decisions Marketers make product decisions at three levels: individual product decisions product line decisions product mix decisions

1. Individual product decisions are focused around the development and marketing of: o Product attributes o Branding o Packaging o labeling o Product support services. 2. The product line is comprised of a group of products that are closely related because: o they function in a similar manner o are sold to the same groups o are marketed through the same types of outlet o fall within given price ranges The product line length involves the number of items in the product line. It is greatly influenced by the company objectives and the resources. Product line growth needs to be planned carefully and is extended in two ways: stretching and filling. Product line stretching Downward stretch: Company initially located at the top end of the market and then stretches downwards to pre-empt a competitor or respond to an attack. Launch of C-Class by Mercedes-Benz, Upward stretch: Companies stretching upwards to add prestige to their existing range of products. Toyota with the Lexus can be risky due to customer perception and inability of sales people to trade up and negotiate to the new level. Two-way stretch: Extending product lines upwards and downwards to address different segments of the market. Product line filling: Increasing the product line by adding more items within -Extra profits the present range of the line. -Reasons for product filling: Being the leading fullline company using excess capacity -Satisfying dealers plugging holes to keep out the opposition Care needs to be taken that the line- filling does not lead to cannibalization and customer confusion.

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3. Product mix decisions Product mix or product assortment consists of all the product lines and items that a particular seller offers for sale to buyers. Dimensions of the product mix Breadth or width - Wide product mix containing many different product lines. E.g.

Unilever producing cooking oil, toilet soap, cosmetics etc. Length - Total number of products in the product lines Depth - Different versions, such as size of packaging and different formulations. Consistency - How closely related the various product lines are in end use, production requirements, distribution channels etc

Product mix strategies

Company can add new product lines, thus widening the product mix. Company can lengthen the existing product lines to become a more full line company. It can add more product versions of each product and deepen its product mix. The company can pursue more product line consistency, or less, depending upon whether it wants to have a strong reputation in a single field or in several fields.

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BRANDING
Branding is an important element of the tangible product and, particularly in consumer markets. Is a means of linking items within a product line or emphasizing the new individuality of product items? Branding can also help in the development of a new product by facilitating the extension of a product line or mix, trough building on the consumers perceptions of the values and character represented by the brand name. The common definition of brand, accepted by most marketers is that it consists of any name, term, design, style, words, symbols or any other feature that identifies the goods, and services of one seller from those of other sellers or that distinguish one product from another in the eyes of the customer. Branding involves researching, developing and implementing brand names, brand marks, trade characters and trademarks. Branding is the art and cornerstone of marketing. A successful brand is one which creates and sustains a strong, positive and lasting impression in the mind of a buyer. An organizations approach to branding depends on its overall product mix and individual line strategy. A brand is a complex symbol that can convey up to 6 levels of meaning

Attributes e.g. Mercedes suggests expensive, well-built, well-engineered, durable, high-prestige automobiles.

Benefits attributes must be translated into functional and emotional benefits. The attribute "durable" could translate into the functional benefit.

Values producers values e.g. Mercedes stands for high performance, safety and prestige

Culture certain culture e.g. Mercedes represents German culture, organized, efficient, high quality

Personality project a certain personality User the brand suggests the kind of consumer who buys a uses the product

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Brand name:
Brand name is any word or illustration that clearly distinguishes one sellers goods from another. It can take the form of words or initials. Trade name: is the legal name of an organization, which may or may not relate directly to the branding of its products e.g. Procter and Gamble-do not display the company name, although it is shown on the back or side of the pack-Persil, Surf. Trade mark: is a brand, name, symbol or logo, which is registered and protected for the owners role use. Trademarks are valuable properties, as organizations invest much time and money in creating them and educating consumers about what they stand for e.g. coca-cola. Brand mark: is specifically the element of the visual brand identity that does not consist of words, but of design and symbols e.g., McDonalds symbol (M) The benefits of branding to 1. The consumer 1. Easier product identification 2. Communicates features and benefits 3. Helps products evaluation 4. Establishes products position in the market 5. Reduces risk in purchasing 2. The manufacturer 1. Helps creates loyalty 2. Defends against competition 3. Creates differential advantage 4. Allows premium pricing 5. Helps targeting/positioning 6. Increases power over retailer

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3. The retailer 1. Benefits from brand marketing support 2. Attracts customer 3. Helps differentiate the product from competitors Types of brands: There are many forms of branding but primarily there are manufacturer, distributor, price and generic brands Brand Equity: - a) is an asset b) A degree of brand-name recognition perceived brand quality, strong mental and emotional associations, and other assets such as patents, trademarks a channel relationship. c) is a measure of a number of different components, including the beliefs, images and core associations consumers have about particular brand. Brand equity is the positive differential effect that knowing the brand by the buyer has on the seller.

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THE ORIGIN OF THE NEW PRODUCT

Entrepreneurs frequently from new businesses on the basis of a unique product idea or needed service, as competitors infringe on the market, replicating products & services or the useful product life diminishes, firms ordinarily prepare to bring out new products or services. These new product & service ideas come from various sources, including customer, top management, & staff from marketing, research & development, production, & engineering. Once launched, even good products have limited lives &, to remain viable, the organization seeks to flow of new product possibilities.

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COMPONENTS OF INNOVATION
There are 4 generic components of technological innovations. They are as follows: 1. Basic Research: It is research for the advancement of scientific knowledge that has no specific commercial uses. Basic research may, however, be in the field of present or potential interest to the company. 2. Applied Research: It is research for the advancement of scientific knowledge that has specific potential commercial uses. 3. Development: It is a technical activity concerned with translating basic or applied research result into product or processes. 4. Implementation: It is a activity concerned with designing & building pilot model, equipment, & facilities, & initiating the marketing channels for products or services emerging from research & development.

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THE PRODUCT DEVELOPMENT PROCESS

Developing a new product is a major undertaking that has identifiable stages. As development progress through each phase, its risk & potential are scrutinized, both technically & business wise, so that any new-product proposal may die or be delayed at any stage in the process. Operations Management Highlight exposures the nature of this risk for a multibillion-dollar product from general electric. Need Identification Once a product idea surfaces, it must be demonstrated that the product fulfills some consumer need, & that existing products do not already fulfill the need. Advance Product Planning (Feasibility Study) It includes preliminary market analysis; creating alternative concepts of the product; clarifying operational requirements, establishing design criteria & their priorities; & estimating logistics requirements for producing, distributing, & maintaining the product in the market. An improvement result from this stage of development is the conceptual design of the product. The conceptual design for a new kind of fishing rod, for example, would articulate its weight, strength, shape, bending characteristics, retail price, & so on. These basic properties are also called the product concept or design concept. Many industries have learned that production & operations personnel should be involved in concept design. By doing so, new production processes can be designed & tested early in the development process. Advance planning posses a point of friction between business & technical personnel when solid technical ideas are adjudged to have insufficient business merits & hence, fall by the wayside. Preliminary market analysis including sales projections & economic analysis including estimates of production operating costs, overhead, & profitability, may suggest abandoning a technically attractive new idea.

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Advance Design Basic & applied researchers investigate technical feasibility & identify in greater the detail the tradeoff in the product design. Promising design alternatives are evaluated according to critical parameters to determine whether design support such as analytical testing, experimentation, physical modeling, & prototype testing will be required. Detailed Engineering Design This stage is a series of engineering activities to develop a detailed definition of the product, including its subsystems & components, materials, size, shapes, & so on. The engineering process typically involves analysis, experimentation, & data collection to find designs that meet several design objectives: 1. Design for function so the product will perform as intended 2. Design for reliability so the product will perform consistently 3. Design for maintainability so the product can be economically maintenance 4. Design for safety so the product with minimal hazard to the user & the environment 5. Design for productivity so the product can be produced at the intended cost & volumes. Computer analysis, simulation, & physical prototype allow for testing various design alternatives, & validate that the final design meets the design objectives. Since objectives can conflict with each other, tradeoffs are inevitably in the optimal design. Typically, the final design includes drawings seven other documentations as well as a working prototype of the product.

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Production Process Design & Development

Working with the detail product design, engineers & manufacturing specialists prepare plans for materials acquisitions, production, transportation, warehousing & distribution. Activities here, however, go beyond just hardware considerations: This stage involves planning, too, for production & control systems, computer information systems, & human resources systems.

Product Evaluation & implementation

Most products are continually reevaluated for improvement possibilities throughout their lives. Field performance & failure data, technical breakthroughs in material & equipment, & formal research all are used to monitor, analyze, & redesign the product.

Product Use & Support

An important stage of product development considers support for the consumers who use the product. Support systems might 1. Educate users on specific application of the product 2. Provide warranty & repair service 3. Distribute replacement parts or 4. Upgrade the product with the design improvements.

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MODULAR DESIGN & STANDARDIZATION

Modular design & component standardization are two aspect of product design with special significance to the operations management because they directly affect the complexity & cost of the conversion process.

Modular Design
It is the creation of the product from some combination of basic, preexisting subsystems. In selecting a personal computer system, for example, you may have your choice of three video monitor two keyboards, two computers, & three printers, all of which compatible. All possible combination make total of 36 (3*2*2*3) different computer systems from which to choose. The modular design concept gives consumer a range of product option &, at the same time, offers considerable advantages in manufacturing & product design. Stabilizing the designs of the module they make them easier to build. Problems are easier to diagnose, & the modules are easy to service. Production proficiency increases as personnel make refinements to & gains experience with the manufacturing processes for standardized sets of module. Similarly, materials planning & inventory control can be simplified especially in finished goods inventories. Now, rather than storing inventories of all 36 finished computer systems, only some of which will be needed, we instead store just the subsystems or modules.

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STANDARDIZATION
Product standardization offers benefits to consumer & producers alike. Customers can count on simplicity & convenience in purchasing standardized products like household doors, screws & other fasteners, spark plugs, & so on. Similarly, uniform pricing code labels has meant greater efficiency for the retailer. In designing new product, standardization can bolster productivity by 1. Avoiding unnecessary engineering design when a suitable component already exists 2. Simplifying material planning & control during production because fewer components are in the system 3. Reducing component production or reducing purchasing requirements & limiting the number of vendors The risky side of standardization is that competitor may upstage with a new product feature that cannot match because design capabilities have become stagnant.

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MANUFACTURING PROCESS TECHNOLOGY

New products are not physical realities until they are manufactured. Process technology refers to the equipment, people, & systems used to produce a firms products & services. Key process technology decisions relate to organizing the process flows, choosing the appropriate product-process mix, adapting the process to meet strategic requirements, & evaluating automation & high-technology processes. There are five types of process technology. They are as follows:

1. Project: Project technology deals with one-of-a-kind products that are tailored
to the unique requirements of each customer. A general construction company, with its many kinds & sizes of the projects, is an example. Since the products cannot be standardized, the conversion process must be flexible in its equipment capabilities, human skills, &procedures. The conversion process features problem solving, teamwork, & coordinated design & production of unique products.

2. Job Shop: Job Shop technology is appropriate of manufacturers of small

batches of many different products, each of which is custom designed &, consequently, requires its own unique set of processing steps, or routing, through the production process. Consider, for example, the jobs done by a printing shop. Each product uses only a small portion of the shops human resources 7 general purpose equipment. With large number of diverse jobs, elaborate job-tracking & control system are used. Much time is spent waiting for access to equipment; some equipment is overloaded while other equipment is ideal, depending upon the mix of jobs at hand.

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3. Batch: Batch technology is a step up from the job shop technology in terms of
product standardization, but it is not as standardized as assembly line technology. Within the wide range of the products in the batch facility, several are demanded repeatedly & in large volumes. These few dominant products differentiate batch facility from job shops; however, no product is sufficiently dominant to warrant dedicated equipment & processes. Consequently, like job shops, batch facility produces a wide variety of products in a wide variety of volumes. The system must be flexible for the low-volume/high-variety products, but the higher volume products can be processed differently- for example, by producing some batches for stoking rather than for customer order.

4. Assembly Line: Assembly line technology is for facilities that produce a

narrow range of standardized products. Laundry appliances are a representative example. Since the product designs are relatively stable, specialized equipment, human skills, & management systems can be developed & dedicated to the limited range of products & volumes. Beyond this range, the system is inflexible.

5. Continuous: chemical plants & oil refineries exemplify Users of continuous

flow of technology. Material & products are produced in continuous, endless flow, rather than in batches or discrete units. The product is highly standardized, as are all of the manufacturing procedures, the sequence of product buildup, materials, & equipment. Continuous flow technology affords high-volume, around-the-clock operation with capital-incentive, specialized automation.

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FLEXIBLE MANUFACTURING SYSTEMS (FMS)

FMS is a computer-controlled system. It contains several wok-stations, each geared to different operations. Work Station machines are automated & programmable. Automated materials handling equipment move components to the appropriate work station, then onto the preprogrammed machines that select, position, & activated the specific tools for each job. Hundreds of toll options are available. Once the machine has finished one batch, the computer signals the next quantity or components, & the machine automatically repositions & retools accordingly. Meanwhile, the just-finished batch is automatically transferred to the next work station in its routing.

Characteristics of an FMS
An FMS is a process technology that can produce a moderate variety of products in modest volumes, & can do so quickly & with high quality. Operating costs, too, can be reduced with an FMS; lower direct labor costs lead to lower manufacturing costs. These benefits, however, are not free; an FMS requires very large capital investments in equipment, planning & control systems, & human resources. An FMS is generic appropriate when: 1. All products are variations of a stable basic design. 2. All products utilize the same family of components is only moderate (10 to 50) 3. The volume of each component is moderate (1000 to 30000) units, annually), but in lot sizes as small as one unit.

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Goals of an FMS
An FMS is most often used in manufacturing components that require several machining operations. A workstation consists of a machine or a robot that performs a particular class of tasks such as drilling holes, bending metal in various directions, & so on. Specialized tools are continuously available for one-at-a-time use, & changed automatically by computers according to the unique requirements for each component as it progresses through the system. Because the investment in machines & tools is great, one can easily understand why the product design must be stable & why products must use the same family of components. Otherwise, even greater investments would be needed for new equipment & computers. The costs would be prohibitive. The goal is to produce a moderate variety of products in moderate, flexible quantities. Clearly, an FMS is more flexible than conventional high-volume production systems. It is less flexible than a job shop that specializes in one-of-a-kind products. An FMS is a mid-range system appropriate for moderate variety/moderate volume markets.

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THE GROWTH OF COMPUTER INTEGRATED MANUFACTURING (CIM)

Although the technology of the FMS is an impressive advancement, it is merely the beginning of anticipated changes in technology & automation known as the factory of the future. The driving force behind this factory will be a series of digital computers. Some manufacturing specialists refer to this futuristic manufacturing concept as Computer integrated manufacturing (CIM). CIM centers on a shared database for 4 primary manufacturing functions: engineering design, manufacturing engineering, factory production, & information management. The shared database is the glue that synchronizes the 4 functions, thereby yielding gains in productivity. The database stores all products & process related information required to produce a component or product. It contains information about machines, tools, materials, manufacturing steps, quantities demanded, due dates, & vendors. Computer integrated manufacturing is not yet a reality but a vision of things to come. Some elements of CIM are operational in many companies today, & the impetus is towards a computer-based system that more fully integrated the entire product development process from the concept to market. In a sense, then, the manufacturing in computer integrated manufacturing is a misnomer, because the system involves engineering as well as production.

Computer aided design (CAD)

The design process for new products & Components traditionally has been an interactive one in which product specifications are refined in successive stages based upon the designers experience, computations, sketches, & drawings. CAD uses computational & graphics software & has substantially enhanced design productivity. The geometry of the component can be graphically displayed & manipulated easily on video monitors. Alternative designs can be posed 7 evaluated more quickly, & some of the time & expense of physical mock-ups, models, & prototypes are eliminated.

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Furthermore, by accessing the database, an already existing design may be found, thereby eliminating duplicated design efforts. Computer aided manufacturing systems control the machine tools on the shop floor. The machines typically perform a variety of operations, not just one, & the machine receives instructions from a computer on the sequence & specifications of its operations. The computer program can be stored in the manufacturing database; retrieved, updated, & revised as components are added or redesigned; & transmitted electronically in-house or externally by satellite to other divisions & facilities. CAM offers several production benefits: instructions from a computer are usually more reliable than those from a skilled operator; product quality is more consistent from unit to unit; closer tolerances can be obtained; & labor costs are lower because less operator time is needed. These benefits, of course, dont come cost-free. Engineers must create the equipment & software that govern machine operation. Further, a major aerospace manufacturer advises that too much CAM can be costly. Errors in a computer program can result in a great many erroneous parts being produced, even though they are produced quite efficiently. Under the watchful eye of a machine operator, such mistakes can be minimized. Thus human involvement is not being eliminated by the CAD/CAM technology; rather, it is being deployed in new ways.

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History
Before the introduction of the Pulsar, the Indian motorcycle market trend was towards fuel efficient, small capacity motorcycles (that formed the 80-125 cc class). Bigger motorcycles with higher capacity virtually did not exist (except for Enfield Bullet). The launch and success of Hero Honda CBZ in 1999 showed that there was demand for performance bikes. Bajaj took the cue from there on and launched the Pulsar twins in India on November 24, 2001. The Pulsars excited segments of Indian youth, mainly due to a muscular shape and stylish designer as well as its powerful engine (in Indian context) at reasonable fuel efficiency and affordable cost. The Pulsars are believed to be greatly successful in redefining the market trend. Since the introduction and success of Pulsar, the Indian youth began expecting high power and other features from affordable motorcycles.

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Outlook
Since 1986, there is a technical tie-up of Bajaj Auto Ltd. with Kawasaki Heavy Industries of Japan to manufacture state-of-art range of latest two-wheelers in India. The JV has already given the Indian market the KB series, 4S and 4S Champion, Boxer, the Caliber series, and Wind125. Kawasaki Heavy Industries is a Fortune 500 company with a turnover of USD 10 billion (Rs. 45,840 crore). It has crafted new technologies for more than hundred years. The technologies of KHI have redefined space systems, aircrafts, jet engines, ships, locomotive, energy plants, automation system, construction machinery, and of course high reliability two-wheelers. KHI has given the world its legendary series of 600-1200cc Ninja and 1600 Vulcan bikes. Straight from its design boards, the Kawasaki Bajaj Eliminator, India's first real cruiser bike, redefines the pleasure of "biking" in looks as well as performance.

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Company Flashback
'Inspiring Confidence,' the tagline, has build up confidence, through excitement engineering, not only to domestic consumers but also internationally. Established just eight decades back in 1926 by Jamnalal Bajaj, the company has been vested with India's largest exporter of two and three wheelers, 196,710 units in 2004-05, a great 26 per cent jump over the previous year. Bajaj Auto Ltd. sales have increased by approximately 21 per cent in the year 2004-05, which exceeds Rs 65.4 billion, a record in the history of the company. The gross operating profit stands at Rs. 9.3 billion, again a record. The profits after tax of the BAL are close to Rs. 7.7 billion, and the pre-tax return on operating capital is at an impressive 80 per cent. The strength of the company is its quality products, excellence in engineering and design, and its ability to delight the customers. The Pulsar, introduced in November 2004, is continually dominating the premium segment of the motorcycle market, helping to maintain the market superiority. Discover DTSi, one more successful bike on Indian roads, is in the 'value' segment of the motorcycle market. It incorporates a high degree of power with fuel efficiency of a 100 cc motorcycle. BAL is committed to prevention of pollution, continual improvement of environment performance and compliance with all environmental legislation and regulations. They always believe in providing the customer 'value for money' and keep a special eye upon quality, safety, productivity, cost and delivery.

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Bajaj Product exported in the past

In countries where we perceive a good market potential, we seek a tie up with one of the major industrial establishments, which would be in a position to invest in the project and which would also entail manufacturing activities apart from marketing, distribution and after sales services through a well-established nation-wide network. We offer a full range of services to such business partners: Training in sales, service and spare parts management based on the Bajaj distribution system. Active support for setting up manufacturing facilities overseas including transfer of technical know how. Assistance in setting up an assembly plant for assembly of vehicles from complete knocked down (CKD) kits. Select machinery and equipment, training of technical personnel, all in a phased manner as required by the regulations

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MARKET POSITION
As of 2006, the Bajaj Pulsars arguably form the most popular motorbike product in the newly emerging 150+ cc class of Indian two wheeler markets. Bajaj have been regularly making alterations to it to make the motorbike look fresh at all times.

Versions 2001
The earliest Pulsar implemented an air-cooled, single cylinder, petrol powered, sparkignited four-stroke engine. The early product offerings under the Pulsar brand name featured a single spark plug to ignite the air-fuel mixture fed from a carburetor, simple spring shock absorbers, round headlamp dome and a short wheelbase of 1235 mm. Both 150 and 180 featured disc brakes as standard equipment - something that was a novelty in Indian motorcycles of early 2000s. On the list of standard features were parking lights and an aircraft-type fuel-filler. The 180 cc Pulsar came with built-in Electric Start (ES) feature and twin tone horns while these two features were optional equipment on the 150 cc.

2003
The second generation Pulsars featured Bajaj Auto's newly developed DTSi technology. The technology resulted in increased power rating of both the Pulsars by 1 bhp each and a simultaneous increase in the fuel economy as well. This version also sported a new headlamp assembly apart from the usual round headlamp, and the wheelbase also increased by 55mm to make it 1320 mm. The longer wheelbase made the stability of the bike better than its predecessor. Other standard features to be added were twinhorn and a trip-gauge.

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2005
In 2005, Bajaj launched another upgrade of the Pulsar. The bike was offered with 17 inch alloy wheels as standard option, and the stance was also lowered by about 12 mm to make it look meaner. It was the first time any bike maker in India had offered 17 inch profile wheels at the rear. The fuel tank now had a capacity of only 15 litres. The power output was now further increased to 13.5 bhp @ 8500 rpm. The rear shock absorbers were now gas-filled Nitrox absorbers.

2006
In December 2006, Bajaj introduced another version of Pulsar, this time even more features were added to offer the customers. The list of new features include: headlamp changed to separate the pilot lamps from the main headlamp; turn indicators feature clear lens glass with amber bulb; new self-canceling turn indicator switch; a flush, lightweight, LCD screen, which offers a digital read-out of the key vehicle data; noncontact type speed sensor that feeds the wheel's speed data on to the display; noncontact type, backlit switches; a twin-stripe tail light unit that houses an array of lightemitting diodes; the body side panels altered to give a new, sharp, tapering-towardsthe-rear look; the old engine's performance has been bettered with increased torque availability, reduced vibration and improved shift feel to the gearbox.

2007
Main article: Bajaj Pulsar 220 DTS-Fi In July 2007, Bajaj began selling the Pulsar 220 DTS-Fi, featuring fuel injection, a digital dash, and modern styling.

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SALES PERFORMANCE
Sales Motorcycle Other two-wheelers Total two wheelers Three wheeler Total two & three wheeler Of the above, exports were:Two wheelers Three wheelers Total Exports 130,945 65,765 196, 710 90,210 65,797 156,007 2007-08 (Nos.) 1,449,710 152,936 1,602,646 222,053 1,824,699 2006-07 (Nos.) 1,023,551 265,398 1,288,949 229,182 1,518,131

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MARKET SHARE
Year ended 31 March 2005 2004 2003 2002 2001 Market (nos.) 5,217,996 4,316,777 3,757,125 2,861,375 2.033,196 Market growth 20.9% 14.9% 31.3% 40.7% BAL (nos.) BAL's growth BAL's market share 27.8% 23.7% 23.1% 22.9% 20.8%

1,449,710 41.6% 1.023,551 17.9% 868,138 656,018 422,016 32.3% 55.4% -

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MARKETING MANAGEMENT PROCESS

This consists of:

analyzing market opportunities, selecting target markets, designing marketing strategies, planning marketing programs, Organizing, implementing and controlling the marketing effort.

1. Analyzing marketing opportunities

o o o o o

Defining the market Consumer assessment Environmental assessment Company resource assessment Demand analysis and sales forecast

2. Identifying Market Segments and Selecting Target Markets

o

Marketers set priorities for business opportunities, concentrating on market segments within which they expect to achieve the best overall economic return from their product or service. Market segmentation and target marketing are the processes used to isolate these opportunities. Market segmentation is the process of grouping customers based on their similarities

Market segmentation allows a company to:

Understand the different behavioral patterns and decision-making processes of different group of consumers

Select the most attractive segments or customers the company should target

Develop a strategy to target the selected segments based on their behavior 51

3. Developing marketing strategies

o o o o o

Positioning Develop new product, test and launch Modification in the stages of product life cycle Strategy choice depends on the strategy pursued by the firm Consider changing global opportunities and challenges

4. Planning marketing programs

o o o o o o o o o

Transforming strategy into programs Managing Product Lines, Brands, and Packaging Managing Service Businesses and Ancillary Services Designing Pricing Strategies and Programs Selecting and Managing Marketing Channels Managing Retailing, Wholesaling, and Physical-Distribution Systems Designing Communication and Promotion Mix Strategies Designing Effective Advertising Programs Designing Programs Direct-Marketing, Sales-Promotion, and Public-Relations

Managing the Sales force

5. Managing marketing efforts

o o o

Organizing resources Implementation Control - Annual control, Profitability control, Strategic control

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PRINCIPLES OF MARKETING
Marketing is defined as "the total of activities involved in the transfer of goods from the producer or seller to the consumer or buyer, including advertising, shipping, storing, and selling." Thus Marketing can be categorized as a branch of business as well as a social science. We buy goods (thus becoming the buyer/consumer) from a vendor (or producer/seller), creating a transaction. In the past, marketing involved traveling salesmen, while in modern times, marketing is more likely to involve television, the internet, and other forms of media bombardment. As we progress in this age of technology it is vital for us to understand marketing and it's place in the world. Understanding and applying the principles will be beneficial to the businessperson and the layperson.

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MARKET EVOLUTION
Market Evolution is a process that parallels the product life cycle. As a product category matures, the industry goes through stages that mirror the five stages of a product life cycle: 1. Market Crystallization - latent demand for a product category is awakened with the introduction of the new product 2. Market Expansion - additional companies enter the market and more consumers become aware of the product category 3. Market Fragmentation - the industry is subdivided into numerous well populated competitive groupings as too many firms enter 4. Market Consolidation - firms start to leave the industry due to stiff competition, falling prices, and falling profits 5. Market Termination - consumers no longer demand the product and companies stop producing it 1. Market introduction stage

cost high sales volume low no/little competition - competitive manufacturers watch for acceptance/segment growth losses

demand has to be created customers have to be prompted to try the product

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2. Growth stage

costs reduced due to economies of scale sales volume increases significantly profitability public awareness competition begins to increase with a few new players in establishing market prices to maximize market share

3. Mature stage

Costs are very low as you are well established in market & no need for publicity. sales volume peaks increase in competitive offerings prices tend to drop due to the proliferation of competing products brand differentiation, feature diversification, as each player seeks to differentiate from competition with "how much product" is offered

very profitable

4. Decline or Stability stage

costs become counter-optimal sales volume decline or stabilize prices, profitability diminish profit becomes more a challenge of production/distribution efficiency than increased sales

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TECHNOLOGY
DTSi DTSi stands for Digital Twin Spark Ignition, a Bajaj Auto trademark. The DTSi idea is a simple one to understand - it involved usage of two spark plugs (instead of the usual choice of one) per engine cylinder. Bajaj Auto holds an Indian patent for the DTSi technology. The Alfa Romeo Twin-Spark engines, the Rotax motorcycle engines and the more recent Honda iDSI engines use a similar arrangement of two spark-plugs. However very few small capacity engines did eventually implement such a scheme in their production prototypes. This may be the case because the idea was perhaps not observed to yield any significant or noticeable performance benefit that could be justified against the additional investment of an extra spark plug. This may well be the reason behind very few Indian motorcycles offering products based on the multiple-spark-plugs technology. In India, it has often been a subject of debate and curiosity if the multiple-spark-plug idea is of any noticeable utility or not.

Patent Infringement Allegations

Recently, Bajaj Auto was in the news for accusing TVS Motors, long-standing rivals of patent infringement on the DTSi technology. TVS countered by threatening to sue Bajaj Auto for libel. However, the launch of the controversial product has been set back by a few months, even though it had been earlier proclaimed as being 'ready to roll out' by the company representatives. TVS has also been trying to get the Bajaj patent revoked. Bajaj Auto Managing Director Rajeev Bajaj said the company would wait for TVS's Flame to be out in the market to decide on future course of action regarding the patent infringement suit. "We have no overwhelming desire or fondness to go to the court," Bajaj said.

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Bajaj Auto mentions on their website that the usage of the twin spark plugs ensures a cleaner burn and less unburnt fuel in the exhaust as well as a higher thermodynamic efficiency. The supporters of this idea also claim that usage of an additional spark plug enables the engine to run a leaner air-fuel mixture leading to improved fuel efficiency. The performance of the DTSi equipped engines at high engine speeds has often been claimed to be on par with, and at times better than their Indian counterparts, despite having lower engine capacities. This claim might have substance, because, at high speeds, when the stroke-time available for combustion is already very low, an additional spark plug could possibly help in realizing more complete combustion and therefore more torque. However, it should be noted that this particular benefit would be truly realized only at very high engine speeds (well over the typical on-street range of 1000-6000 RPM). In the typical speed range, the time available for combustion happens to be quite sufficient and it may not matter whether the combustion is fired using a single spark plug or two of them. However, the technology is interesting enough to have inspired competitors to have invested USD 2 million to come out with their own version. Bajaj Auto introduced the DTSi scheme first in their Pulsar engines (with engine cylinder capacities of 150 cc and 180 cc) and then followed up with the Discover engines (with engine cylinder capacities of 125 cc and 135 cc). Bajaj knows that if it goes to court, it will loose and that is the reason they backed down.

ExhausTEC
ExhausTEC stands for Exhaust Torque Expansion Chamber, a Bajaj Auto trademark. The technology involves use of a small chamber connected to the exhaust pipe of the engine to modify the back-pressure and the swirl characteristics, with an aim to improve the low-end performance of the bikes. This was attempted in response to the issue of a reported lack of low-end response in Bajaj's single-cylinder four-stroke engines. The ExhausTEC technology is claimed to be highly effective in improving the overall engine response, especially the low-end torque characteristics. 57

Fuel injection Fuel injection technology worldwide

As opposed to the carburetor, the fuel injection mechanism usually improves the engine startability, offers a brisker torque response to throttle changes and diagnostics features. It is possible to establish accurate closed-loop control of air-fuel ratio by using the fuel injection mechanism (as an actuator) and utilizing feedback information from an exhaust oxygen sensor (as a sensor). These two components require sophisticated manufacturing practices and therefore a closed-loop fuel injection system forms a costly proposition. It was discovered in late 1970s that accurate closed-loop control of air-fuel mixture encourages efficient destruction of exhaust pollutants in a three-way catalytic converters thereby enabling a gasoline engine to produce substantially low exhaust emission quantities as demanded by the emission standards worldwide. It is for this reason that microprocessor based fuel injection technology has been implemented widely in gasoline powered four-wheelers since early 1980s. In early 1990s, several global two-wheeler OEMs also began downsizing and adapting the fuel injection technology for use in two-wheelers; the most notable efforts have perhaps been those from Honda.

Fuel injection technology in India

In India, all four wheelers since late 1990s feature microprocessor based closed-loop fuel injection technology in place of traditional carburetor to meet the Bharat emission standards imposed by the Government of India. Indian two-wheeler companies have been little sluggish in comparison; however since early 2000s, they too have initiated developing the fuel injection technology to meet the emission standards of the future (early 2010s) and for customer appeal of a high-end technology. The relatively late entry of fuel injection technology in Indian two-wheelers is mainly attributed to the higher cost sensitiveness of the Indian two-wheeler market in comparison with the Indian four-wheeler market.

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It is for these reasons, introductions of fuel-injected motorcycles such as Glamour FI, Pulsar 220 into Indian market are often considered as bold, aggressive moves. The often prohibitively higher cost that fuel-injection warrants limits the application to the 'premium' segment of the motorcycle market, as is exemplified by the rather slow sales of the Glamour FI. However, the early fuel injected two-wheelers in India are not expected to implement the aforesaid closed-loop control of air-fuel ratio in view of the consequent cost implications. Rather they are likely to implement the less costly option of "open-loop" or feed-forward regulation of air-fuel ratio thereby avoiding usage of (costly) exhaust oxygen sensor. Automotive experts argue that such a scheme, in comparison with the aforesaid closed-loop scheme, is often significantly less effective in reducing exhaust pollutants (see Catalytic converter Rich Burn Spark Ignition Engines). As a result, the early fuel injected Indian two-wheelers are not likely to be significantly more environment-friendly than their carburetted counterparts. However, these fuel-injected two-wheelers are expected to outdo their carburetted counterparts in the areas of pickup, mileage, durability, dashboard diagnostics and the customer appeal of a highend technology.

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BAJAJ PULSAR 220CC DTSI-FI

Clever strategy Its a clever strategy followed by the manufacturers/film makers to familiarize their experiments (except the core) among common man before their big release. The interesting gain in this strategy is it also fetches the much needed hype. Bajaj has done the same for the pulsar 220cc DTSi FI except the fuel injection and the rear disc brake other features such as tubeless tyres, oil cooled engine, digital console with amber back light, self canceling indicators, twin seats, split grab rail, exposed drive chain and no kick lever have become familiar through pulsar 200cc, discover 135cc also through media. Nearly after a year from the test run, Bajaj decides to launch the pulsar 220cc DTS-FI nation wide. Earlier, Bajaj periodically opened limited bookings in pune and tested the bike. It is believed that Bajaj has sorted out some issues associated with fuel injection, rear disc brake and front forks from the customers feedback and now the bike is dispatched to the dealers for nation wide sale. Bajaj expects to sell 2000 units a month of pulsar 220cc DTS-FI and it has reworked the famous hamara bajaj campaign with this bike. The hype has made pulsar 220cc already a hit among bike enthusiast but can it maintain the momentum after the launch. Lets drive the powerful machine and find it!

Engine and powertrain:

The 220cc oil cooled, Digital Twin Spark Fuel Injection (DTS FI) engine produces an awesome power of 20PS at 8500rpm (though not comparable, pulsar 220cc is more powerful than thunderbird) and an incredible torque of 19.12Nm at 6500rpm. . Bajajs well proven exhausTEC (to beef up low-down power) features in pulsar 220cc too. Pulsar 220cc features the standard five speed gearbox with one down and four up pattern. Oil cooler placed just below the fuel tank helps in further cooling of engine lubricant and keep this high performance engine cool. A six speed gearbox like other international bikes could have been better. Thanks to the fuel injection for the gentle release of power which enables smoother acceleration also minimal power loss while shifting gears. 60

Pulsar DTS-Fi can reach 60kph in 4.4 seconds and can past 110kph in 18.8sec. Pulsar 220cc can reach a top speed of 131kph. But not alone this top speed is impressive; you can easily maintain the pulsar 220cc in 100 -115kph. Though the fuel efficiency/mileage depends on riding behavior you can expect anything more than 35kpl from pulsar 220cc DTS FI. Bajaj is offering impeccable warranty for its pulsar 220cc - the DTS FI engine has been given 5yrs warranty in addition to the 2yrs or 30000km vehicle warranty.

Styling and Engineering:

Pulsar 220cc is the most stylish bike available in India. Though it resembles its siblings in most sense the voluminous front fairing and the fairing mounted mirrors distinct the pulsar 220cc from others. Surely another eye catcher from bajaj through pulsar 220cc with six spoke alloy wheels, stylish body panels, clear lens indicators, exposed chain and the diff. Like its family members, pulsar 220cc is equipped with highly digitized Except for the tachometer, everything else including fuel gauge, speedometer, odo and two trip meters finds place in the orange glow of the digital read. Pulsar 220ccDTS FI features health indicators - a choked air fuel indicator, high oil temperature indicator, low battery voltage indicator, low engine oil level indicator and engine malfunction indicator. The pulsar 220cc DTS-Fi features car-like self-canceling turn-signals and backlit switches. Similar to its sibling just launched Pulsar 200cc, the pulsar 220cc DTS FI bike throws away the kick lever and makes you to crank the engine only with your thumb. Pulsar 220cc DTS FI also features a low maintenance battery i.e. battery level top up/voltage check requires once in a year only. Pulsar 220cc employs twin 55W headlamp high beam is a parabolic lamp and low beam is an ellipsoidal projector lamp. Additional advantage as it is powered by direct current there is no fluctuation and thus constant illumination at all conditions. The stepped seat is adequately padded for both rider and pillion and ends in a smart two-piece grab bar. Pulsar 220cc DTS FI offers a little under-seat storage cubby that can be unlocked via a cable release located under its lockable side panel. A massive stainless steel and alloy silencer adds a zing to the pulsar 220 along with the generous use of alloy for its rims, steering head, footrestmounts and fuel-filler lid.

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Ride and handling:

The wheelbase has been lengthened to 1,350 mm from 1,330 of the older Pulsar, along with a new swing arm. Pulsar 220cc DTS-Fi uses telescopic forks at the front and Gascharged twin shocks are used at the rear. A twin-member tubular frame and an elliptical swing arm mounted on needle roller bearings. This combination gives a good blend of stiffness and flick ability for the bike though pulsar 220 weighs 150kg. MRF tubeless tyres 90/90 x 17 inches at the front and 120/80 x 17 inches at the rear provide good support and traction control for pulsar 220cc DTS Fi. This high performance bike is the Indias first bike to have a rear disc brake although this will help for the effective control; safety in Indian conditions is yet to be seemed.

Price and colors:

Pulsar 220cc DTS FI is offered in silver, blue and red. Pulsar 220cc DTS FI is priced differently for each of its limited bookings. Finally it is priced Rs81,280 (ex-showroom price) in Delhi. I believe Bajaj plans to sell 2000 units a month and if pulsar 220cc goes well as bajaj expects it will increase the price by few thousands. So if you planned one its the right time to get one. Pulsar 220cc is better priced, highly featured, superbly powered and controlled excellently. Pulsar 220cc DTS FI doesnt have any serious competitor actually. It is damn sure that Bajajs pulsar 220cc DTS FI will set a new tone to Indian motorcycle industry. Although pulsar 220 will satisfy the long lasting hard core enthusiasts aspiration it is to be seen whether this kind of bike is suitable for India conditions. When queried about Yamahas performance bikes in India YMI CEO replied performance bike can build the brand only the commuter bike can bring volume. But Bajaj continues to work on performance bikes whereas its arch rival Hero Honda is following a complete different strategy it continues to offer commuter bikes. Who has the better understanding of the Indian customers? Whether Bajaj can fool everyones suspicion? For answers we should wait!

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Technical Specification
Model: Year: Category: Rating: Bajaj Pulsar 220 DTS-FI 2008 Sport 51.9 out of 100. Show full rating and compare with other bikes Engine and transmission Displacement: Engine type: Power: Torque: Fuel system: Ignition: Gearbox: Clutch: 220.00 cc (13.42 cubic inches) Single cylinder, four-stroke 19.79 HP (14.4 kW)) @ 8500 RPM 19.12 Nm (1.9 kg-m or 14.1 ft.lbs) @ 6500 RPM Carburetor CDI 5-speed Wet multidisc Chassis, suspension, brakes and wheels Front suspension: Rear suspension: Front tyre dimensions: Rear tyre dimensions: Front brakes: Front brakes diameter: Rear brakes: Rear brakes diameter: Telescopic Forks 130 mm Stroke Triple Rate Spring, 5-way adjustable, gas assisted Nitro Shock Absorbers with vertical travel of 100 mm 90/90-17 120/80-17 Single disc. Twin Calipers 260 mm (10.2 inches) Single disc. Single Caliper 230 mm (9.1 inches) Physical measures and capacities Overall height: Overall length: Overall width: Ground clearance: Wheelbase: Fuel capacity: 1,165 mm (45.9 inches) 2,035 mm (80.1 inches) 750 mm (29.5 inches) 165 mm (6.5 inches) 1,350 mm (53.1 inches) 15.00 litres (3.96 gallons)

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COMPARISON BETWEEN 180 & 150CC PULSAR

Parameter Pulsar 180 DTS-i Pulsar 150 DTS-i 10.37 Kw (14.09 ps) Max Power 16.5 bhp (12.28 kW) @8000 rpm @8500 rpm Max Torque 15.22 Nm @ 6000rpm 12.76 Nm @ 6500rpm

New silencer with ExhausTEC technology now ensures Engine Response Improved engine torque even at varying load conditions Wheel Base Suspension-F 1320 mm Telescopic Forks 135 mm Stroke with anti-stiction bushes Triple Rate Spring, 5-way adjustable, gas assisted Nitrox Suspension-R Shock absorbers and vertical travel of 100 mm Wheels tyres High Performance light yet stronger 17 alloy wheels Broader 100/90 rear tyres as standard on both variants

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CRITICISM
Due to the shape of the fuel tank, youngsters often refer the Bajaj Pulsar as "The Nut Crusher". Unfortunately, even in the upcoming model, the Pulsar DTS-Fi 220 cc, the manufacturers have not changed the design of the tank. It is to be noted, however, that the problem occurs mainly due to new riders not being accustomed to the increased stopping power of the disc-brakes, as well as the higher speeds involved while 'upgrading' from lower-capacity (100cc) 'commuter' motorcycles. Taller riders often find it difficult to 'tuck in', due to the lack of knee recesses. The infamous front fork failure in some of the later Pulsar 200 models raise concerns over component quality, though the faulty forks were later called back and replaced inconspicuously by the manufacturer. Pulsar gearboxes on older models were notorious for false neutrals. The earliest models suffered from oil starvation problems with the clutch plates, which were rectified in later models. The gearbox problems, however, persisted until the 2007 models were introduced. The earlier models also had a non-progressive clutch, which required some fine control on the user's part for a 'clean' take-off. While it made the Pulsar the 'Wheelie King' of the segment, on-track performance suffered. It was also rather jerky in bumper-tobumper traffic as a result. 2006 Model The new design Pulsar also faces numerous defects. The LED Tail Lights, Electronic Fuel gauge and Auto Start malfunctions frequently. However Bajaj seems to be quick in removing the defects and most of the sensor related issues are being sorted out by simply providing free replacements of those sensors. Also the faulty forks on first batch of Pulsar 200 were instantly replaced with newly designed forks.

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Problem
Product modification is always not acceptable by consumers. Modification may increase the cost of production so the price of the product increases. Bajaj has been victim of its own market leadership position. There is greater competition & also face loss in market share. The website i.e. Bajaj.com its focus on brand & also it is a time consuming. The home page is nothing to make one want to click the rest of the site. Each page is packed with information but does not inspire interest to buy the product.

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QUESTIONNAIRE
1. Why product modification is needed? 2. What is production process for bike? 3. Demand for the product i.e. bike? 4. Ranges available for different classes of people? 5. Product life cycle of bike? 6. Most demanded & popular bike? 7. Customer taste & preference? 8. What type of modification has been made?

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SUGGESTION
A survey should be conducted to now the taste & preference of the customers so in future it is not rejected. The manufacturing process should plan in such a way that it improves the quality & also the cost of production should be minimized. The company should increase different ranges of the product for lower middle class & middleclass. They should also increase the advertisement with relevant information. The company website focused on brand. It should include more product information.

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CONCLUSION
In the overall study of the project it is found that, The customer tastes & preference changes at regular interval of time. Individuals want to see new things after decline stages, so product modification I needed. Product modification helps to increase the sale of the product. The product modification increases the price of the product.

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BIBLIOGRAPHY

Production & Operations Management By: Everett E. Adam, Jr. Ronald J. Ebert. Production control &management By: K. Ashwathapa WEBLIOGRAPHY www.bajajauto.Com www.google.Com

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