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A
REPORT
ON
BRAND STUDY
OF
BAJAJ PULSAR
Submitted to: Dr. Monika Khanna Submitted by:
1. Divye Sood(14)2. Henry Rawal(15)3. Ishan Singh(17)4. Jagat Chokshi(20)5. Kritika Goyal(22)6. Shilpa Jain(45)
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TABLE OF CONTENTS
Page Nos.
1. Executive Summary 12. Current Marketing Situations 2-53. Objectives, Opportunities and Issue Analysis 6-74. Marketing Strategies :
I. STP 8II. Product Mix 9
III. Advertising Strategies 10-115. Action Program :Expansion Plan 126. Facts and Figures: Profit or loss 13
7. Bibliography 14
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EXECUTIVE SUMMARY
Bajaj Auto came into existence on November 29,1945as M/s Bachraj Trading Corporation PrivateLimited. It started off by selling imported two- and three-wheelers in India. In 1959, it obtained
license from the Government of India to manufacture two- and three-wheelers and it went public in
1960
Bajaj Auto is a major Indian automobile manufacturer. It is India's largest and the world's 4th
largest two- and three-wheeler maker. It is based inPune,Maharashtra, with plants in Waluj near
Aurangabad, Akurdi and Chakan, near Pune. Bajaj Auto makes and exports motor scooters,
motorcyclesand theauto rickshaw. .
Bajaj Pulsar is a motorcycle brand owned by Bajaj Auto in India. The two wheeler was developed bythe product engineering division of Bajaj Auto in association with motorcycle designer Glynn Kerr
Tokyo R&D. Currently there are four variants available -with engine capacities of 135 cc, 150 cc,
180 cc and 220 cc. previously it was also offered with 200 cc DTS-i oil cooled engine, which now has
been discontinued. More than a million units of Pulsar were sold by November 2005. With monthly
sales of more than 48,000 units in June 2009, Pulsar is the leader in the 150 cc segment in India with
a market share of 43%.
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 ofHero Honda CBZin 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.[3]Since the introduction and success of
Bajaj Pulsar, Indian youth began expecting high power and other features from affordable
motorcycles.
The project was faced with internal resistance, reservations by McKinsey and doubts on its effects on
Bajaj's relation with Kawasaki. The project required approximately 36 months for completion and
cost Bajaj Rs. 1 billion.
The Indian biking scene and with desi manufacturers started with the Bajaj Pulsar twins. Beforethat all India did was bring in 100 cc economy commuters and some two strokes. After their split
with Kawasaki, Bajaj soldiered on with the Pulsar twins and then the Discover in 2003. In between,
they had many 100 cc bikes in their portfolio, however, Rajiv Bajaj recently in an interview, said that
the company was getting stagnated and would have fallen prey to Hondas high quality bikes. It was
when he actually sat down in a conference with the boffins in the Bajaj Company and discussed with
them the reason, as to why the company was still afloat, whereas the others like LML had died. That
is when the company realized that the Pulsar brand was one which was keeping them afloat.
http://en.wikipedia.org/wiki/1945http://en.wikipedia.org/wiki/1945http://en.wikipedia.org/wiki/1945http://en.wikipedia.org/wiki/1959http://en.wikipedia.org/wiki/1959http://en.wikipedia.org/wiki/1960http://en.wikipedia.org/wiki/1960http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Motorscootershttp://en.wikipedia.org/wiki/Motorscootershttp://en.wikipedia.org/wiki/Motorcycleshttp://en.wikipedia.org/wiki/Motorcycleshttp://en.wikipedia.org/wiki/Auto_rickshawhttp://en.wikipedia.org/wiki/Auto_rickshawhttp://en.wikipedia.org/wiki/Auto_rickshawhttp://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/Bajaj_Autohttp://en.wikipedia.org/wiki/Royal_Enfieldhttp://en.wikipedia.org/wiki/Hero_Honda_CBZhttp://en.wikipedia.org/wiki/Bajaj_Pulsar#cite_note-2http://en.wikipedia.org/wiki/Bajaj_Pulsar#cite_note-2http://en.wikipedia.org/wiki/Bajaj_Pulsar#cite_note-2http://en.wikipedia.org/wiki/Mckinseyhttp://en.wikipedia.org/wiki/Kawasaki_Heavy_Industrieshttp://en.wikipedia.org/wiki/Kawasaki_Heavy_Industrieshttp://en.wikipedia.org/wiki/Mckinseyhttp://en.wikipedia.org/wiki/Bajaj_Pulsar#cite_note-2http://en.wikipedia.org/wiki/Hero_Honda_CBZhttp://en.wikipedia.org/wiki/Royal_Enfieldhttp://en.wikipedia.org/wiki/Bajaj_Autohttp://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/Auto_rickshawhttp://en.wikipedia.org/wiki/Motorcycleshttp://en.wikipedia.org/wiki/Motorscootershttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/1960http://en.wikipedia.org/wiki/1959http://en.wikipedia.org/wiki/1945 -
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CURRENT MARKETING SITUATIONS
The Pulsar continues to be a market leader in the premium end of the motorcyclemarket with a sale of over 297,000 numbers in 2003-04. The cumulative sale of Pulsar's
to date has crossed the 500,000 markwithin a short span of 29 months.
A year back, Bajaj introduced DTSi technology upgrading its always successful PULSAR150cc and 180cc. Though Bajaj had changed its identity it still dominates for its creativity
in ads.
Pulsar has been the best selling price in its segment since its launched. Bajaj has beencontinuously able to position pulsar very effectively targeting it in the market has the
youth sports bike
Bajaj also introduced the concept of pro-biking to market Pulsar. Pulsar has been arefeature laden from the very start. It was the first Indian bike to come with innovations
like the alloy wheels, digital speedometer, and DTS-i and exhaustec technologies. Bajaj
even holds patents for the DTS-i and exhaustec
Bajaj targeted the 18-24 with Pulsar but later found that the brand appealed to a mucholder audience. This helped Bajaj to change its target audience to 21-35 years. Unlike its
old ways of doing things, Bajaj did not rest with the laurels. It knew that Pulsar is the
golden key to control the entire bike market. Hence Pulsar got undivided attention from
the company.
After ruling the premium bike segment, Bajaj is taking their brand to another level. Bajajrecently launched Bajaj Pulsar 200 DTS-i to take on the competition from Hero Honda
and the like. The new Pulsar boasts of spruced up engine, new digital console and new
style. Pulsar is definitely getting better. Pulsar 200 is being launched with a new
campaign revolving round the concept of Free Biking.
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In FY 2010,company domestically sold over 5,59,000 bikes in their sports category, thishas grown by 42% to almost 7,96,000 units in FY 2011-of which Pulsars alone accounted
for over 7,71,000 units.
Through Pulsar, Bajaj auto has successfully transited from the low profit commuter STDsegment in favor of a better brand position and higher profit segment-sports.
In addition to products, branding and the back end, the company has significantlystrengthened its dealer network. In FY 2011, Bajaj Auto increased its dealership by 159
to raise the total number of dealers to 589, all in favor of Pulsar.
Bajajs Autos Changing Mix: Motorcycles
GEOGRAPHICAL SPREAD OF PULSAR
Africa remains a key focus area, with increased presence in Nigeria, Uganda, Kenya andAngola.
Sales in South Asia touched a new high. Peace-time Sri Lanka clocked growth of 76% whileBangladesh grew at 34%.
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South East Asia was another bright spot. The Companys subsidiary in Indonesia, PT BAI,grew volumes by 81% with sales of 21,586 units, largely the Pulsar range.
Bajaj auto has shown phenomenal growth, owing to Pulsar, the growth has been witnessedevery year (barring the years of recession). The table below shows the growth in sales from
2004 to 2010.
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PRODUCT LIFE CYCLE
The product life cycle curve of the Bajaj Pulsar has passed the stage of introduction between years
2003 to 2007,wherein it saw maximum sales(refer to the above table).
Though the year 2008-09 saw a fall in sales, owing to recession, the He-Bike bounced back in late
2009 and registered sales worth 31.4 % in year 2010, especially with the 200 and 220 cc variants.
Summary of Product Life Cycle Characteristics
Characteristics Introduction Growth(FY 2011)
Sales Low- 9% Rapidly rising- 18%
Costs Rs. 49,966 crores (FY 2004) Rs.13,224 crores (FY2011)
Profits(PAT) Rs 7,668 (FY 2004) Rs3,340 crores (FY2011)
Competitors Honda Unicorn and TVS
Victor.
Honda Karizma and
Apache, CBZ, FZ.
0
1
2
3
4
5
6
7
8
9
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
sa
les(million)
Sales-Time
INTRODUCTION GROWTH
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OBJECTIVES, OPPORTUNITIES AND ISSUE ANALYSIS
PULSAR 135 CC
Objectives:
To offer good value for money. Being the first from the Pulsar family, the major objective was to establish
the brand.
Make it a tough competition for the established 150 cc bikes.
SWOT:
STRENGTHS Fuel efficient light sports name Delivers a light feel Well priced Huge variety of colors
WEAKNESSES Limited speedOPPORTUNITIES Economically priced
Huge export market (esp. Asia) Comfortable riding as compared to
competitors
THREATS TVS Victor No prominent Brand ambassador Weak advertising.
PULSAR 150-180 CC DTS-i
Objectives:
To establish them as a ride for people who look for more power than a 150 cc engineand dont want to loose fuel efficiency like on the 200 cc engine.
For those who are not much concerned about rising fuel prices.SWOT:
STRENGTHS Good performance and handling Power Packed Machine Sporty look
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Better ride quality Newly discovered DTS-I engine Strong and highlighted advertising Huge variety of colors
WEAKNESSES Poor economy Heavy added 4 more kgs Pulled down the kmpl figure
OPPORTUNITIES Huge export market (esp. Asia) Comfortable riding as compared to
competitors
Added features without incrementin price
THREATS Hero Honda Apache
No prominent Brand ambassador
PULSAR 220 CC DTS-i
Objectives: Pulsar 220 is the high end Bike in whole Pulsar family and promoting it is
very difficult because we need to differentiate it from other pulsar bike and whole Bajaj
family like what Hero Honda did in case of Karizma ZMR.
To differentiate Pulsar 220 from its Pulsar family To increase the customer base with choices like speed, safety, luxury.
STRENGTHS Fuel efficient The Street Fighter Well priced Powerfully driven Advertisements Huge variety of colors
WEAKNESSES Lacks Long term comfort ability Lacks Comfortable riding as
compared to competitors
Front seats have limited stuffing Not for long distance rides.
OPPORTUNITIES Priced below Karizma Huge export market (esp. Asia) MTV Stunt Mania
THREATS HERO Karizma, TVS Apache, YamahaR15 and FZ
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MARKETING STRATEGIES: SEGMENTATION,TARGETTING AND
POSITIONING
MAJOR SEGMENTATION VARIABLES FOR BAJAJ PULSAR
Geographic
Rural and Urban Segment:Targeted towards urban youth1.Demographic
Age : targeted towards youth Gender: Got a macho look and is definitely for male3. Income: Positioned in the premium segment of bikes. It is targeted to the
higher and upper middle class of society.
Psychographic
Lifestyle: Fastest bike in India, it is targeted towards the people who love speed andadventure.
Personality: - Bajaj has teamed with Fast with Furious (movie) for promotion andMTV Stunt Mania. This clearly shows that Pulsar is targeted to aggressive people,
banking on its The fastest Indian tag.7
Behavioral Benefits: Leader among the performance bikes. It has got features which
no other bike provides in India
User Status: Pulsar has created a big hype among Indian youth. There are a lot ofpeople who are willing to buy the product
Readiness Stage: This bike has got lot of attention among Indian youth10. Attitude toward Product: Very popular among bike enthusiasts
DIFFERENTIATION STRATEGIES:
Product Differentiation:
1) Form:
a) Color: Plasma Blue, Cocktail Wine, Red Midnight, Black Misty, Grey Silver
b) Pulsar 150cc, Pulsar 180cc, Pulsar 200cc and Pulsar 220cc with and without Fuel
injection.
2) Design:
a) Digital odometer, Digital speedometer, Digital fuel gauge and two digital trip meters
b) First bike in India with 33 mm front fork for better shock absorbing facility.c) Split seat for better riding and sitting comfort.
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d) New petrol tank flaps give petrol tank an aerodynamic looks.
3) Features:
a) All Black styling
b) 3D chiselled logo
c) Vertical stack twin projector headlamps
d) Auto choke
e) Clip-on handle bar
f) Split seats
g) Digital Twin Spark Ignition
h) Engine oil cooler
i) Fuel and battery charge indicators
4) Durability:
The muscular aerodynamic shape of Pulsar DTS-i and its 1350 mm of wheel base with17" large alloy wheels give this Bajaj bike a robust presence on the road.
5) Performance quality:
a) Digital Twin spark Ignition (DTS-i) technology provides efficient fuel combustion
and better performance.
b) Larger resonator and catalytic convertor improves the performance.
c) Largest venturi carburetor provides high performance.
d) Exhaust technology improves scavenging process and hence the performance of the
vehicle.
6)Service differentiation:
a)2 years /10,000 km warranty.
b) Bajaj Finance for finance support
7) Channel differentiation: Exclusive Pro- biking showrooms16.
8) Personal differentiation: Customer Care (Toll free number)17.
9) Image differentiation: Change in logo
PRODUCT LINE STRATEGY : -
Line stretching :
Bajaj launched Pulsar 150 and Pulsar 180 models in the year of 2001, and subsequently they
introduced DTSi (Digital Twin Spark Ignition) models of both earlier models, Pulsar 150 DTS-I
and Pulsar 180 DTS-i. By 2007 they introduced Pulsar 200 DTS-I model (which was drawn
back by Oct 2008). Thereafter, they introduced Pulsar 220 DTS-Fi and Pulsar DTS-i models.
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Sensing the room in 180 cc and 200 cc range, for new entrant and growing interest of youth,
Bajaj Auto introduced these new variants, i.e. Pulsar 200 DTS-i and Pulsar 220 DTS-i. This
shows Up-Stretching of the existing product line.
Line filling :-
When Bajaj Auto introduced Pulsar 150, there was no other automobile company in Indian
market that was offering any bike of more than 150 cc engine capacity, except Royal Enfield
thatwas of 225 cc. So, subsequently introduction of Pulsar 180, Pulsar 180 DTS-I were the
efforts ofthe company towards filling the gap in the Product Line between the 150 cc
engine bikes and225 cc engine bikes.
Line Modernization, Featuring and Pruning :
Line Modernization :
1. Bajaj Auto Introduced Pulsar 150 and Pulsar 180 models in 2001.2. Bajaj (JV with Tokyo R & D25) devised Digital Twin Spark ignition (DTS-i) Technology
by 2002 and introduced this in their then existing variants of Pulsar 150 and Pulsar
180
3. This technology improved engine power by 1 bhp (Brake Horse Power).4. The 2005 series of the Pulsar featured 17" alloy wheels, lower stance, 15 litre fuel
tank capacity and Nitrox filled gas shock absorbers.
5. The 2006 series included key changes in the looks and styling, which includes a rangeof features like self-cancelling turn indicator switch, flush LCD screen with digital
read out of important vehicular data, pilot lamps, new design turn indicators, new
LED tail light assembly, better engine torque, reduced engine and body vibrations,and improved gear shift
Line featuring :
Advertisement of Bajaj Pulsar: Bajaj always features their latest Pulsar Model exhaustively
and put lesser efforts on the other Pulsar variants and other bikes29. This is the case of
LineFeaturing.Line Pruning :
1. Bajaj Auto withdrew their model Pulsar 200 DTS-i within a very short span of itslaunch.
PRODUCT MIX PRICING STRATEGIES:-
Product line pricing:
Bajaj has four variants under its product line of Bajaj Pulsar, as follows:
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Optional feature pricing:
The Bajaj Pulsar DTSi-220 does not have any optional feature in it. It comes in four colors
having same price33.
Captive pricing:In a Bajaj Pulsar bike if any part(s) (certain special parts like engines, piston,
silencer, accessories, fuel injector, etc.) is not functioning properly, due to any reason(s),
customer requires to buy that particular part from the parent company only35.
Two part pricing: There is no two-part pricing.
By product pricing: It has no by-product pricing.
Product bundling: Company offers no product bundling for Pulsar brand.
ADVERTISING STRATEGIES:
Campaign: Pulsar & Stunting - Creating Indias bestselling sports bike
Agency:Ogilvy & Mather Mumbai
Client:Bajaj Auto
Brand:Pulsar
Objectives: Indias home-grown Bajaj Pulsar sports motorcycle was in 2004 facing seriouscompetition from Japans Honda, which controlled 60 percent of the market, and Yamaha,
both of which were ramping up their presences with new sports bikes. The Japanese brands
had superior racing credentials and Honda by the end of 2004 claimed 30 percent of the
performance segment, which until then was dominated by Pulsar. The Indian brand set two
big goals to combat the competition: grow faster than the Japanese by outselling Honda and
Yamaha combined annually; and make Pulsar a US$1 billion brand by 2010.
PULSAR MODEL PRICE
Bajaj Pulsar 150 ES DTS-i UG Rs. 62,000
Bajaj Pulsar 180 DTS-i UG Rs. 66,000
Bajaj Pulsar 220 DTS-i Rs. 89,265
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Strategy: Realizing the brand had a technology disadvantage against Honda and Yamaha,
and that those brands were synonymous with racing, Pulsar decided to create a measure for
performance that was beyond racing and that connoted performance. By focusing on its
uniquely strong attribute of handling, Pulsar turned to bike stunting to prove the bikes
taut handling, quick throttle response, rugged build, and maneuverability. Through its
advertising from 2005 to 2010, the brand used stunting to show its superiority over its
Japanese competitors, including a famous 2008 TVC that featured a ballet of bikes. In 2009,
Pulsar created Pulsar MTV Stunt Mania, Indias first bike stunt reality show, which ultimately
replaced conventional advertising in Bajaj Autos marketing plan. In 2011, Pulsar becamethe official sponsor of Indias first professional stunt riding team, Ghost Ryderz.
Results:Despite facing nine brands between Honda and Yamaha, Pulsar managed to outsell
its Japanese competitors combined. Over five years, sales increased seven fold. In 2010,
Pulsar became a US$1.4 billion brand.
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ACTION PROGRAM:EXPANSION PLANS
Bajaj Auto Ltd. is planning to add Pulsar 250 to its existing portfolio in the financialyear 2012 as a part of its expansion strategy.
Recent developments from Bajaj Auto, shows that the company is in expansionmode of adding dealerships across country.The company has announced that they
would add 130 new dealers, in small towns like Chalisgaon,Sangamner, Hingoli,
Ichalkaranji, Bhandara, Akluj, Phaltan, Usamanabad, Buldhana, Pandharpur and
Karad taking total number of dealerships to 630. This will create approx. 7000 new
jobs.
Company expects in 2011-2012 to export over 1 million two and three wheelers.Also the management expects 20% - 25% growth in FY2012.
Capacity enhancements: Bajaj Auto, will increase its overall production capacity to50 lakh units a year by the end of this fiscal. The company has three manufacturing
plants at Waluj and Chakan in Maharashtra and Pantnagar in Uttrakhand, and
produces total of 46 lakh units.The plant II at Pantnagar, has already the increased
the capacity to 15 lakh units of motorcycles per year from 12 lakh.
By March end, total capacity at a plant, will reach 18 lakh units per annum. Thecompany will be increasing production capacity of 3 wheeler at its Waluj plant to 5
lakh units annually from the current 4.2 lakh units.
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FACTS AND FIGURES: PROJECTED PROFIT/ LOSS
FINANCIAL FIGURES: PROJECTED PROFIT AND LOSS (FY 2012)
According to Rajiv BajajMD,Bajaj Auto, EBITDA should be somewhere around 6 or 7percent points higher than the industry average. Typically EBITDA is at 13 percent.
The band is 10-15 percent typically. And as opposed to 13 he expects it to be at 20.
Bajaj Auto Ltd, reported third-quarter profit of 667 crore,while revenue grew 27percent to 4028 crore. The company's domestic sales in the quarter rose 22.6% to
872,682 units. The companys revenue for next fiscal is expected to grow at 25-30%.
Despite rising commodity prices, company was able to maintain its margins due tolow employee cost, and low operational cost, which in turn led to increase its market
share to 35% from 26%.
According to Maximum Securities Research, the expected net profit would beRs.3438 crore and Earning per share(EPS) would increase from Rs.105 to Rs. 119.
Precisely, industry is expected to grow at 11 to 15 percent and Pulsar market sharewill continue to be 50 % plus. Pulsar proportion will continue to grow in Bajajs
portfolio.
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BIBLIOGRAPHY
1. http://www.infibeam.com/static/bajajpulsar.html2. http://www.moreforsmallbusiness.com/productlinepricing.html3. http://www.naaptol.com/buyonline/WOshoppingbestdeals137O/automobiles/motor_bi
kes.html
4. http://www.naaptol.com/buyonline/WOshoppingbestdealsW137O/automobiles/motor_bikes.html
5. http://www.p220thefastestindian.com/index01.phphttp://marketingteacher.com/Lessons/lesson_pricing.htm
6. http://en.wikipedia.org/wiki/Touring_motorcycle7. http://www.p220thefastestindian.com/index01.php8. http://www.financialexpress.com/old/fe/daily/20000115/fco15050.html9. http://www.infibeam.com/static/bajajpulsar.html10.http://www.ehow.com/about_5145373_bajaj pulsarhistory.html11.http://www.infibeam.com/static/bajajpulsar.html12.http://www.exchange4media.com/e4m/izone1/izone_fullstory.asp?section_id=4&news_id=
35536&tag=31258
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ulsating
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35536&tag=31258
21.http://www.bikes4sale.in/wp/page/2/
http://marketingteacher.com/Lessons/lesson_pricing.htmhttp://marketingteacher.com/Lessons/lesson_pricing.htmhttp://www.ehow.com/about_5145373_bajajhttp://www.ehow.com/about_5145373_bajajhttp://www.ehow.com/about_5145373_bajajhttp://www.infibeam.com/static/bajaj%E2%80%90pulsar.htmlhttp://www.infibeam.com/static/bajaj%E2%80%90pulsar.htmlhttp://www.infibeam.com/static/bajaj%E2%80%90pulsar.htmlhttp://www.infibeam.com/static/bajaj%E2%80%90pulsar.htmlhttp://www.ehow.com/about_5145373_bajajhttp://marketingteacher.com/Lessons/lesson_pricing.htm
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