Is it time for Hero MotoCorp's underperformance to end?
Bajaj Auto said in an interview. His point stemmed from the fact, that when a customer goes to the Bajaj Auto showroom, it is the salesman and only the salesman who is the face of the company. It is his job to convince and not confuse the customer.
That can only happen if the salesman is clear about the product and has confidence in it. Why would a salesman confuse the customer? Let me take you to 2015. The 100-cc segment accounted for 60% of all motorcycles sales in India back then.
That was probably the reason why Hero MotoCorp during those days sold way more 100 cc bikes than Bajaj Autos total domestic sales. If the commuter 100 cc bike was what sold, why did Bajaj Auto not capitalise on it. After all, it had everything, right from the brand to distribution prowess.
The problem was in its strategy and that's how Bajaj Auto failed. The problem was never with the product but the positioning. Below, I've highlighted the 10 year history of Bajaj Auto's flagship brand 'Discover'.
2004 -Bajaj launched the Discover with a 125cc engine. 2005 -Bajaj launched the Discover with a 112cc engine, discontinuing the Discover 125. 2006 -Bajaj pulled out from the 100cc segment, stating it wasn't as profitable as higher capacity bikes.
It also marketed its 125cc bikes as a bike with the mileage of a 100cc and performance of a 125cc. At this time, Bajaj was the number two in the 100cc segment. 2007 -Bajaj launched the Discover with a 135cc engine.
2009 -Bajaj launched the Discover 100 DTS-Si, coming back to the 100cc segment after having failed to convince consumers about buying a higher cc bike with similar efficiency. The 112cc Discover was discontinued. 2010 -Bajaj introduced the Discover 150, discontinuing the Discover 135.
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