MM Presentation1

8/8/2019 MM Presentation1

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Sebastian Lee


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Industrial products are those purchased for further

processing or for use in conducting a business.

The distinction between a consumer product and

an industrial product is based on the purpose for

which the product is bought.


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1. Idea Generation

2. Idea Screening

3. Concept Development

4. Marketing Strategy5. Business analysis

6. Product development

7. Test marketing

8. Commercialization


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` The new product development process starts with

the search for ideas.

` It is also called Brainstorming of new product.

` New product ideas can be derived from many

sources :

Customers, Scientists, Competitors, Companysales people, dealers and top management.


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` 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 completionand costed Bajaj Rs.1 billion.


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` The second stage is reducing by screening. In this

stage, the company must spot and drop poor

ideas as early as possible.

` In this stage the Company must avoid permitting a

poor idea to move into development and

commercialization, or dropping a good idea.


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` There would be a revolution in the modern

motorcycling era in the country and that Bajaj

would be the first to offer it to consumers.

` A technology that would offer phenomenal

performance augmentation and would be

introduced for the first time.


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` Surviving ideas must now be developed into

product concepts.

` A Product idea is an idea for a possible productthat the company can see itself offering to the

market. A Product concept is an elaborate

version of the idea expressed in meaningful

consumer terms.


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Producing an engine to add to a Pulsar to

increase its power and also increase fuel

economy.

` Who is to use the end product?

` What primary benefit can be built in the existing

product?


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` By asking such questions, the company formed a product

concept :

Twin Sparkplug

` For faster and better combustion. One spark plug

at one end of the combustion chamber is the conventional

practice. The flame front created by the spark takes some

time to reach the farthest portion of the combustion

chamber.

` This leads to slower burning of the air-fuel mixture and

creates limitations in optimizing the combustion chamber

characteristics. Two spark plugs at either ends of the

combustion chamber help in faster and better combustion.


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` The management of Bajaj developed a

preliminary marketing strategy statement for

including the new technology into the market. This

was refined into subsequent stages.

` The stages consisted of Size, structure and

behavior of the target market, the planned product

positioning, the sales, market share and profitgoals sought in the first few years.


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Estimate likely selling price based upon

competition and customer feedback.

Estimate sales volume based upon size ofmarket.

Estimate profitability and breakeven point.


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` Bajaj had reviewed the sales, cost and profit projections to

determine whether they satisfy the companys objectives.

` The management of Bajaj estimated whether sales would be

high enough to return a satisfactory profit to the firm.

` This was done by estimating first time sales, replacements sales

and repeat sales.

` After preparing the sales forecast, the management of Bajaj hadestimated the cost and profits of this venture. This was done by

the R&D, manufacturing, marketing and finance departments.


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` If the product concept passes the business test, it

moves to the R&D department and engineering

department to be developed into a physical

product.

` This stage answers whether the product idea can

be transalated into a technically and commercially

feasible product. The R&D department willdevelop a physical version of the product concept.


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4-Valve Engine


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` A typical 2valveenginehas one inlet and one

outlet valve. This limits the amount of air-fuel

mixture and exhaust gases that are dispensed

with each other.

` This 4 valveenginehas 2 intake and 2 exhaust

valves that ensures faster, cleaner & more efficient

combustion by improving breathing, i.e. the intakeand exhaust process of engine.


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Edge over the rest

` Better engine performance and low emissions.

` Better power and pick up while not sacrificing on

fuel efficiency.

` Lightweight & compact engine.


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DTS-i Technology


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` A single spark plug placed at one end of the

combustion chamber has the disadvantage that

the flame front created by the spark takes time to

reach the farthest portion of the combustionchamber. This leads to slower & incomplete

burning of air-fuel mixture.

` Incase of DTS-i, two spark- plugs fire at the sametime, controlled digitally for optimum combustion

of air-fuel mixture.


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Edge over the rest

` Near complete combustion of even lean air-fuel

mixture.

` Helps to reduce exhaust pollutants like

hydrocarbons.


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` 2001

` The original Pulsar was introduced with a spark-ignited fourstroke engine which made 12bhp ofmaximum power.

` 2003

` The second generation Pulsars featured newlydeveloped DTSi technology, which increased the

power rating of both versions by 1 bhp (0.75 kW)each and also increased fuel economy.


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` In launching a new product, the company must makefour decisions :

` When: 2003.

` Where: National market.

` To whom: Innovators, Early Adopters & Early Majority.

` How : Bajaj allocated the marketing budget amongthe marketing mix elements and sequenced thevarious activities.


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` The diffusion process is concerned with how

innovations spread, i.e. how they are assimilated

in the market.

` It is the process by which the acceptance of an

innovation (a new product, new service, or new

idea) is spread by communication to members of a

social system (target market) over a period oftime.


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` Bajaj PULSAR is the most bought 2 wheeler in

India. So what was the secret behind the ever

surviving sturdy performance of Bajaj ?

` The answer is the revolutionary technology called

the DTS-i. with a normal engine type as that of

any 2 wheeler, a small adaptation has been done

with auto-controlled mechanism of a cutting edgemicrocontroller to achieve the best performance.


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