A COMPARISON STUDY ON THE TOP ‘THREE’ TWO WHEELER COMPANIES IN INDIA

DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT FOR THE

AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION

BY

PRASANTH ALOYSIUS

(08PG0329)

UNDER THE GUIDANCE OF

PROF. VEDA BALAJI

FACULTY GUIDE- CUIM

CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT

BANGALORE-560029

pg. 1 DECLARATION This is to certify that this research project titled “A COMPARISON STUDY ON THE TOP ‘THREE’ TWO WHEELER COMPANIES IN INDIA” is an original work carried out in the 5th and 6th trimester of my MBA(2008-2010) under the guidance of Prof. Veda Balaji. This project is made exclusively as a part of my curriculum and will not be submitted in future to any other university or institution.

PRASANTH ALOYSIUS

08PG0329

Date :

pg. 2 CERTIFICATE This is to certify that Prasanth Aloysius, student of Christ University of Management, Bangalore, has completed this research project titled “A COMPARISON STUDY ON THE TOP ‘THREE’ TWO WHEELER COMPANIES IN INDIA” under my guidance from in partial fulfillment of the Masters of Business Administration degree.

PROF. VEDA BALAJI PROFESSOR ,MARKETING DEPT. CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT BANGALORE

ACKNOWLEDGEMENT It is with immense satisfaction and pride that, I am completing my Dissertation Project report. I therefore, would like to stop for a few moments and thank Christ University Institute of

pg. 3 Management, Bangalore and Prof. Veda Balaji for allowing me to take up my Dissertation Project on comparison study of two wheeler companies in India . I am also very thankful for his extensive support, timely guidance and regular monitoring our progress and providing valuable inputs from time to time.

A sincere thanks to all the respondents, for parting their valuable time and being so patient in sharing the relevant information. I also express my overriding debts and thanks to my friends, without whose help it would have been impossible to complete my project.

Last but not the least, I would like to thank all those concerned people who have directly or indirectly contributed in the completion of this entire dissertation report.

PRASANTH ALOYSIUS

Contents DECLARATION...... 2

CERTIFICATE...... 3

ACKNOWLEDGEMENT...... 4

1.1 Introduction to Indian Two-wheeler Sector:...... 6

1.2 Evolution of Two-wheeler Industry in India:...... 7

1.3 Profile Change in Indian Two-Wheeler Industry...... 10

1.4 Key Earnings Drivers...... 11 pg. 4 2.1 COMPANY PROFILE...... 14

2.2 Hero Honda Motors Limited...... 14

2.3 Corporate Profile:...... 15

2.4 Mission statement:...... 16

2.5 HERO HONDA'S MANDATE:...... 17

2.6 S.W.O.T ANALYSIS:...... 17

STRENGTHS:...... 17

WEAKNESS:...... 17

2.7 HERO HONDA’S CORE VALUES...... 19

2.8 Product range of HERO HONDA...... 20

2.9 BAJAJ auto ltd...... 24

2.11 BAJAJ AUTO’S MISSION:...... 25

2.12 SWOT Analysis...... 26

2.13 The Inevitable Change...... 27

2.14 Product range of Bajaj...... 29

2.15 Current Situation...... 32

Current Performance...... 32

2.16 The Industry Analysis - Five Forces Analysis-BAL...... 32

External Environment...... 32

2.17 Product & Advertising Strategies OF BAL...... 34

2.18 Strategies & Implementation...... 35

FMCG Business Model...... 35

2.19 Other Strategic Issues...... 36

2.20 Strategies for the Overseas Markets...... 37

2.21 R&D...... 38

2.22 The Future...... 39

2.23 New Strategies adopted by Bajaj...... 40

2.24 HONDA MOTORCYCLE & SCOOTER INDIA (Pvt.) Ltd.(HMSI)...... 41

pg. 5 2.25 About Honda Motorcycle & Scooter India Pvt. Ltd...... 41

2.26 CORPORATE PROFILE...... 42

2.27 Mission Statement...... 43

2.28 SWOT Analysis...... 43

2.29 PRODUCT RANGE:...... 44

2.30 Market growth and market size (HMSI)...... 47

2.31 Strategy of rivals Vs HMSI...... 48

2.32 Strategy of HMSI...... 50

2.34 Strategy adopted by TVS & Bajaj for increasing sales and countering growth of HMSI...... 50

2.35 Review of strategies adopted by Honda...... 51

3.1 RESEARCH DESIGN...... 54

3.2 STATEMENT OF PROBLEM...... 54

3.3 HYPOTHESIS...... 55

3.4 AIMS AND OBJECTIVES...... 55

3.5 SAMPLING TECHNIQUE...... 55

3.6 SAMPLE UNIT...... 55

3.7 SAMPLE SIZE...... 56

3.8 STATISTICAL DESIGN...... 56

3.9 PRIMARY DATA...... 56

3.10 SECONDARY DATA...... 56

3.11 LIMITATIONS OF STUDY...... 57

4.1 RESPONDENT’S PROFILE...... 59

4.2 SEX...... 59

4.3 MARITAL STATUS...... 60

4.4 OCCUPATION...... 61

4.5 AGE...... 62

4.6 INCOME...... 63

pg. 6 5.1 DATA ANALYSIS...... 65

5.2 OWNERSHIP OF TWO WHEELER...... 65

5.3 MOST VIEWED ADS...... 66

5.4 MOST INFLUENTIAL ADS...... 67

5.5 BEST RECALLED ADS...... 68

5.6 MOST COMMON SOURCE OF ADS...... 69

5.7 SOURCE OF RELIABLE INFORMATION FOR PURCHASE DECISIONS...... 70

5.8 FACTORS WHICH MOTIVATE PURCHASING DECISION...... 72

5.9 PREFERRED PRICE RANGE(in 000’s)...... 73

5.10 RATING FOR VARIOUS FACTORS(1 LEAST PREFERRED AND 7 MOST PREFERRED)...... 75

5.11 IS CROSSCHECKING DONE?...... 77

6.1 DEMAND AND GROWTH DRIVERS...... 79

Personal Income...... 79

Demography and Inspiration...... 79

Penetration Level...... 79

Other Factors...... 79

7.1 FINDINGS...... 81

8.1 HYPOTHESIS TESTING...... 83

9.1 RECOMMENDATIONS...... 85

 Scaling Up Service Centers...... 85

 Focus on Easy Credit Lending...... 85

 Investment in Research and Development...... 85

 Focus on Exports and Global Market...... 85

10.1 LEARNINGS...... 87

11.1 BIBLIOGRAPHY...... 89

12.1 QUESTIONNAIRE...... 91

pg. 7 pg. 8 1.1 Introduction to Indian Two-wheeler Sector:

The Indian automotive industry consists of five segments: commercial vehicles; multi-utility vehicles & passenger cars; two-wheelers; three-wheelers; and tractors. With 7,822,963 units sold in the domestic market and 753,591 units exported during the first nine months of FY2007, the industry (excluding tractors) marked a growth of 43% over the corresponding previous. The two-wheeler sales have witnessed a spectacular growth trend since the mid nineties.

India is the second largest producer and manufacturer of two-wheelers in the world. Indian two-wheeler industry has got spectacular growth in the last few years. Indian two-wheeler industry had a small beginning in the early 50's. The Automobile Products of India (API) started manufacturing scooters in the country.

pg. 9 Bikes are a major segment of Indian two wheeler industry, the other two being scooters and mopeds. Indian companies are among the largest two-wheeler manufacturers in the world. Hero Honda and Bajaj Auto are two of the Indian companies that top the list of world companies manufacturing two-wheelers.

The two-wheeler market was opened to foreign companies in the mid 1980s. The openness of Indian market to foreign companies lead to the arrival of new models of two-wheelers into India. Easy availability of loans from the banks, relatively low rate of interest and the discount of prices offered by the dealers and manufacturers lead to the increasing demand for two-wheeler vehicles in India. This lead to the strong growth of Indian automobile industry.

1.2 Evolution of Two-wheeler Industry in India:

Two-wheeler segment is one of the most important components of the automobile sector that has undergone significant changes due to shift in policy environment. The two- wheeler industry has been in existence in the country since 1955. It consists of three segments viz. scooters, motorcycles and mopeds. In India there are some MNC’s and Indian company dealing in automobile sector. The main key players who are dealing in this sector are Hero Honda, Bajaj, Yamaha, Honda, and TVS. Hero Honda is the biggest player in this sector in India as well as in the world and playing a very important role in two wheeler automobile sector. Hero Honda, Bajaj and TVS are the Indian companies and Yamaha & Honda are international automobile brand.

pg. 10 Bajaj is the first Indian two wheeler automobile company in the market since 1945 with the name M/s Bacharj trading corporation private limited. In 1959 M/s Bacharj trading corporation private limited change its name as Bajaj Auto Ltd. Bajaj Auto obtains license from the Government of India to manufacture two- and three-wheelers vehicles in 1959.

Hero Honda Motors Limited was established in 1984, as a joint venture between India's Hero Group (world's largest bicycle manufacturers) and Japan's Honda Motor Company. And created the world's single largest two wheeler company and also one of the most successful joint ventures worldwide. During the 80s, Hero Honda became the first company in India. Over 19 million Hero Honda two wheelers running on Indian roads today.

TVS Motors is the third largest company in the two-wheeler industry with a market share of 16%. Infect, it is the only Indian company without a foreign collaboration in the two-wheeler industry. When the company opted out of the collaboration with Suzuki in 2002, many believed that TVS was headed towards extinction. But the company proved the doomsayers wrong and came out with a very successful `TVS Victor'. TVS Motors Ltd. originally incorporated in 1982 to manufacture two-wheelers in collaboration with Suzuki Motors of Japan, TVS was one of the leaders in two-wheeler industry.

Yamaha Motor Corporation is the auto mobile company of Japan (1953) which works in India since 1955 and providing latest technology in India from last two decades. Yamaha Motor India was incorporated in august 2001 as a 100% subsidiary of Yamaha motor corporation, Japan

pg. 11 Honda motors of Japan is not a new name in the two wheeler scenario in the country, they were in a tie up with the Firodias owned Kinetic group. However in the late 90s they parted ways after problems arose over issues like introduction of new models, advertising expenditure, marketing strategies and other related issues. In the mid 80 Honda motors of Japan joined hands with the largest bicycle maker of India the Hero cycles to create Hero Honda which in a couple of decades or so have gone on to become the single largest motorcycle company in the world. Though Honda has come on its own on the Indian market yet it will be providing technological support to Hero Honda for the next ten years. Thus presenting a unique situation in which the company will be in direct competition with the company which it has been associated for nearly two decades. Honda Motorcycles and Scooters India limited, a 100% subsidiary of Honda motor company Japan eventually entered the Indian market with Honda Unicorn in 2004.

pg. 12 1.3 Profile Change in Indian Two-Wheeler Industry

The demand shift from scooters to motorcycles in the 1990s was without parallel in any comparable product category in India. This was mainly attributed to the change in customers' preference towards fuel-efficient and aesthetically appealing models, which scooter manufacturers failed to provide. The delayed launch of new, advanced scooter models, fear of four-stroke scooters being prone to increased skidding risks and vibrations, and the difficulty of maintenance also contributed to this shift.

Interestingly, the growth in the motorcycle segment was mainly driven by the demand from rural and semi-urban consumers. An estimated 60% of the demand for motorcycles came from rural and semi-urban customers. The rise in their disposable incomes on account of good monsoons in the 1990s provided the normally conservative rural and semi-urban customers with extra money that induced them to experiment with new, innovative products.

pg. 13 Shift from Scooter to Motorcycle

Scooter Motorcycle Moped Year Total In '000 Overall Growth No. % No. % No. % 1993 1,503.36 -6.40 709.73 47.2 379.06 25.2 414.57 27.6 1994 1,770.22 17.75 840.17 47.5 472.58 26.7 457.47 25.8 1995 2,209.23 24.80 1,033.52 46.8 652.01 29.5 523.70 23.7 1996 2,660.04 20.41 1,223.43 46.0 809.53 30.4 627.08 23.6 1997 2,963.49 11.41 1,301.05 43.9 978.68 33.0 683.76 23.1 1998 3,042.85 2.68 1,262.70 41.5 1,131.31 37.2 648.84 21.3 1999 3,403.43 11.85 1,325.87 39.0 1,395.66 41.0 681.90 20.0 2000 3,745.55 -0.80 901.88 24.0 2,156.03 58.0 687.64 18.0

Source: (SIAM). No. Number of Units (in '000)

Advanced technology, larger wheelbase, higher ground clearance and the ability to ride on bad roads with less effort and less danger of skidding and decreased maintenance cost were the other factors that encouraged customers to choose motorbikes over other two-wheelers.

1.4 Key Earnings Drivers

Below are the key factors, which strongly affect the auto industry: -

Government policy impact on petrol prices: Petrol prices determine the running cost of two/three wheelers expressed in Rupees per kilometer.

Petrol prices are the highest in India as GOI subsidizes kerosene and diesel. But with the recent change in GOI policy to reduce the subsidy, the prices of petrol will remain constant at the current prices. This will have a positive effect on purchases of two/three wheelers.

Improvement in disposable income: With the increase in salary levels, due to entry of multinationals following liberalization process and fifth pay commission, the disposable income has improved exponentially over the years. This will have multiplier effect on demand for consumer durables including two-wheelers.

Changes in prices of second-hand cars: The second hand car prices of small cars have come down sharply in the recent past. This will shift the demand from higher-end two- wheelers to cars and affect the demand for two-wheelers negatively. A further drop in second-

pg. 14 hand car prices will lead to pressure on the two-wheeler majors who plan to release higher- end scooters and motorcycles.

Implementation of mass transport system: Many states have planned to implement mass transport systems in state capitals in the future. This will have negative impact on demand for two-wheelers in the long run. But taking into account the delays involved in implementation of such large infrastructure projects the demand to be affected only five to seven years down the line.

Availability of credit for vehicle purchase: The availability and cost of finance affects the demand for two- and three-wheelers as the trend for increased credit purchases for consumer durables have increased over the years. Therefore, any change with respect to any of these two parameters as a result of change in RBI policy has to be closely watched to assess the demand for two- and three-wheelers.

pg. 15 2.1 COMPANY PROFILE

pg. 16 Company profile

“Hero” is the brand name used by the Munjal brothers for their flagship company Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda Motors Limited At Dharuhera India. Munjal family and Honda group both own 26% stake in the Company. In 2010, it was reported that Honda planned to sell its stake in the venture to the Munjal family.

During the 1980s, the company introduced motorcycles that were popular in India for their fuel economy and low cost. A popular advertising campaign based on the slogan 'Fill it - Shut it - Forget it' that emphasised the motorcycle's fuel efficiency helped the company grow at a double-digit pace since inception. The technology in the bikes of Hero Honda for almost 26 years (1984–2010) has come from the Japanese counterpart Honda [10]

Hero MotoCorp has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together are capable of churning out 3 million bikes per year.[11] Hero MotoCorp has a large sales and service network with over 3,000 dealerships and service points across India. Hero Honda has a customer loyalty program since 2000,[12] called the Hero Honda Passport Program.

The company has a stated aim of achieving revenues of $10 billion and volumes of 10 million two-wheelers by 2016-17. This in conjunction with new countries where they can now market their two-wheelers following the disengagement from Honda, Hero MotoCorp hopes to achieve 10 per cent of their revenues from international markets, and they expected to launch sales in Nigeria by end-2011 or early-2012. In addition, to cope with the new demand over the coming half decade, the company was going to build their fourth factory in South India and their fifth factory in Western India. There is no confirmation where the factories would be built. [13]

[edit] History

Hero MotoCorp was started in 1984 as Hero Honda Motors Ltd.[4]

 1956 -- Formation of Hero Cycles in Ludhiana(majestic auto limited)  1975 -- Hero Cycles becomes largest bicycle manufacturer in India.

 1983 -- Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed Shareholders Agreement signed

 1984 -- Hero Honda Motors Ltd. incorporated

 1985 -- Hero Honda motorcycle CD 100 launched.

 1989 -- Hero Honda motorcycle Sleek launched.

 1991 -- Hero Honda motorcycle CD 100 SS launched.

 1994 -- Hero Honda motorcycle Splendor launched.

 1997 -- Hero Honda motorcycle Street launched.

 1999 -- Hero Honda motorcycle CBZ launched.

pg. 17  2001 -- Hero Honda motorcycle Passion and Hero Honda Joy launched.

 2002 -- Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition launched.

 2003 -- Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor, Hero Honda motorcycle Passion Plus and Hero Honda motorcycle Karizma launched.

 2004 -- Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle CBZ* launched.

 2005 -- Hero Honda motorcycle Super Splendor, Hero Honda motorcycle CD Deluxe, Hero Honda motorcycle Glamour, Hero Honda motorcycle Achiever and Hero Honda Scooter Pleasure.

 2007 -- New Models of Hero Honda motorcycle Splendor NXG, New Models of Hero Honda motorcycle CD Deluxe, New Models of Hero Honda motorcycle Passion Plus and Hero Honda motorcycle Hunk launched.

 2008 -- New Models of Hero Honda motorcycles Pleasure, CBZ Xtreme, Glamour, Glamour Fi and Hero Honda motorcycle Passion Pro launched.

 2009 -- New Models of Hero Honda motorcycle Karizma:Karizma - ZMR and limited edition of Hero Honda motorcycle Hunk launched

 2010 -- New Models of Hero Honda motorcycle Splendor Pro and New Hero Honda motorcycle Hunk and New Hero Honda Motorcycle Super Splendor launched.

 2011 -- New Models of Hero Honda motorcycles Glamour, Glamour FI, CBZ Xtreme, Karizma launched. New licensing arrangement signed between Hero and Honda.

August-- Hero and Honda part company, thus forming Hero MotoCorp and Honda moving out of the Hero Honda joint venture. November-- Hero launched its first ever Off Road Bike Named Hero "Impulse".

[edit] Termination of Honda joint venture Main article: Hero Honda split

In December 2010, the Board of Directors of the Hero Honda Group have decided to terminate the joint venture between Hero Group of India and Honda of Japan in a phased manner. The Hero Group would buy out the 26% stake of the Honda in JV Hero Honda.[14] Under the joint venture Hero Group could not export to international markets (except Sri Lanka) and the termination would mean that Hero Group can now export. Since the beginning, the Hero Group relied on their Japanese partner Honda for the technology in their bikes. So there are concerns that the Hero Group might not be able to sustain the performance of the Joint Venture alone.[15]

pg. 18 [edit] Hero MotoCorp

The new brand identity and logo, Hero MotoCorp, was developed by the London firm Wolff Olins.[16] The logo was revealed on 9 August 2011 in London, the day before the third test match between England and India.[16]

Hero MotoCorp can now export to Latin America, Africa and West Asia.[16] Hero is free to use any vendors for its components instead of just Honda-approved vendors.[16]

[edit] Company performance

During the fiscal year 2008-09, the company sold 3.7 million bikes, a growth of 12% over last year. In the same year, the company had a market share of 57% in the Indian market.[17] Hero Honda sells more two wheelers than the second, third and fourth placed two-wheeler companies put together.[10] Hero Honda's bike Hero Honda Splendor sells more than one million units per year.[18]

As early as in 1960’s very few Indian bicycle manufacturers were interested in exports. However, the hero groups foray into the overseas markets in 1963 pioneered Indian exports in the bicycle segment. It was more prompted essentially by the need to remain attuned to the global marketplace. While initial exports were restricted to Africa and the middle east, today more than 50% of the exports from Hero Cycles Ltd. Meet the demands of sophisticated markets in Europe and America. This is primarily because of appropriate product development and excellent quality that hero offers..

Hero Honda has grown like no other company in the auto business. Several times in the path, savvy observers have insisted that it has grown just too big and that no company its size can continue to show growth rates. But Hero Honda has ignored that opinion and continued growing at the place it has set many years ago.

Hero Honda today faces more competitor than it has ever in the history. Now that is the undisputed two wheeler Numero Uno in the country. Every single two wheeler manufacturer in India if looking market share away from it. More over for the first time there are so many four- stroke challengers in the market. And Hero Hondas best selling products are ageing.

2.3 Corporate Profile:

pg. 19 The joint venture between India's Hero Group and Honda Motor Company, Japan has not only created the world's single largest two wheeler company but also one of the most successful joint ventures worldwide.

During the 80s, Hero Honda became the first company in India to prove that it was possible to drive a vehicle without polluting the roads. The company introduced new generation motorcycles that set industry benchmarks for fuel thrift and low emission. A legendary 'Fill it - Shut it - Forget it' campaign captured the imagination of commuters across India, and Hero Honda sold millions of bikes purely on the commitment of increased mileage

Over 19 million Hero Honda two wheelers tread Indian roads today. These are almost as many as the number of people in Finland, Ireland and Sweden put together!

Hero Honda has consistently grown at double digits since inception; and today, every second motorcycle sold in the country is a Hero Honda. Every 30 seconds, someone in India buys Hero Honda's top -selling motorcycle – Splendor. This festive season, the company sold half a million two wheelers in a single month—a feat unparalleled in global automotive history.

Hero Honda bikes currently roll out from two globally benchmarked manufacturing facilities based at Dharuhera and Gurgaon in Haryana. These plants together are capable of churning out 3.9 million bikes per year. A third state of the art manufacturing facility at Hardwar in Uttranchal will soon be commissioned to cope with sustained customer demand.

Hero Honda's extensive sales and service network now spans over 3000 customer touch points. These comprise a mix of dealerships, service and spare points, spare parts stockiest and authorized representatives of dealers located across different geographies.

pg. 20 Hero Honda values its relationship with customers. Its unique CRM initiative - Hero Honda Passport Program, one of the largest programs of this kind in the world, has over 3 million members on its roster. The program has not only helped Hero Honda understand its customers and deliver value at different price points, but has also created a loyal community of brand ambassadors.

Having reached an unassailable pole position in the Indian two wheeler market, Hero Honda is constantly working towards consolidating its position in the market place. The company believes that changing demographic profile of India, increasing urbanization and the empowerment of rural India will add millions of new families to the economic mainstream. This would provide the growth ballast that would sustain Hero Honda in the years to come. As Brijmohan Lall Munjal, the Chairman, Hero Honda Motors succinctly points out, "We pioneered India’s motorcycle industry, and it's our responsibility now to take the industry to the next level. We'll do all it takes to reach there.''

2.4 Mission statement:

Hero Honda’s mission is to strive for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers. At the same time maintain the highest standards of ethics and social responsibilities.

This mission is what drives Hero Honda to new heights in excellence and helps the organization forge a unique and mutually beneficial relationship with all its stake holders.

pg. 21 2.5 HERO HONDA'S MANDATE:

Hero Honda is a world leader because of its excellent manpower, proven management, extensive dealer network, efficient supply chain and world-class products with cutting edge technology from Honda Motor Company, Japan. The teamwork and commitment are manifested in the highest level of customer satisfaction, and this goes a long way towards reinforcing its leadership status

2.6 S.W.O.T ANALYSIS:

STRENGTHS:

 Hero Honda introduced First stroke bike in the Indian market.  Hero Honda gives 80 Km/Liter Avg.  Huge sale network (3500 Dealers).  Better sale service.  It has the highest share in automobile sector.  It has a good brand image.  It gives better service for customers.  Best customer preference.  Debt equity ratio is only 0.1.  The company has clarified about its intention of setting a third plant in addition to its existing two plants. The company has embarked upon a green field expansion plan and has earmarked Rs 2 bn for the same. It should be noted that the company has a strong cash flow position; it generated Rs 9 bn from operation in FY04 and is virtually a debt free company.

WEEKNESS:

 Suppose to be very sophisticated.  Not fit for ruler India.  They have big gap between cubic capacities of its products.  Its market share is reducing from last few years.

pg. 22  Spare parts are too costly.

OPPOURTUNITIES:

 Hero Hondas the first manufacture to launch eco friendly bikes with 4-stroke engines. They have attained a stronger good will and popularity in the industry and the consumers.  They should go in new segments of bikes.  There is large no. of young consumers in the market. Company has to focus on them.  They have big opportunities in heavy bike segments.  As government polices are amended against pollution in metro cities, Hero Honda being 4 stroke bike manufacture have great opportunities to explore its new innovations and technologies.

THREATS:

 Main threats to Hero Honda are their competitors like:- o Bajaj Auto Ltd. o TVS motors Ltd. o Yamaha Motors India. o Honda motorcycle and scooter India.  The cost of the product is very high in comparison to other companies.  Decreasing market share.

pg. 23 2.7 HERO HONDA’S CORE VALUES

 Respect for Human Beings.  Is a responsive organization?  Is a boundary less organization?  Is striving for excellence.  Provide fearless, enjoyable working environment.  Is self-reliant.  Providing learning environment.  Is a caring organization?  Enables relationship buildings.  Prompts transparency & trust.  Is creativity promoting.  Is performance oriented?

pg. 24 2.8 Product range of HERO MOTO CORP

Scooters

 HeroHonda Pleasure Hero Honda Pleasure

Manufacturer Hero Honda motorcycle Ltd.

Production 2005 -present

Price Rs. 37990

Engine 102 cc, 7bhp@ 7000 rpm, torque 0.78 kg- m @5000 rpm

Motorcycles

 CD Dawn

 CD Deluxe

 Splendour +

 Splendour NXG

 Passion pro

 Passion plus

pg. 25  Super Splendour

 Glamour

 Glamour PGM F1

 Achiever CD Dawn  CBZ XTREME

 HUNK

 Karizma

 Karizma ZMR

Features of a few bikes from above mentioned list from HERO HONDA are as follows.. Manufacturer Hero Honda motorcycle Ltd. CD Dawn Production 2003-present

Price Rs. 37990

Engine 97.2 cc, 7.7 ps@ 7500 rpm, torque0.77 kg -m @6000 rpm

CD Deluxe

CD Deluxe

Manufacturer Hero Honda motorcycle Ltd.

Production 2007-present pg. 26 Price Rs. 40,000

Engine 97.2 cc, 7.7 ps@ 7500 rpm, torque0.77 kg -m @6000 rpm Splendor +

Splendor +

Manufacturer Hero Honda motorcycle Ltd.

Production 2003-present

Price Rs. 40,400

Engine 97.2 cc, 7.7 ps@ 8000 rpm, torque7.95 N-m @5000 rpm Hunk

Hunk

Manufacturer Hero Honda motorcycle Ltd.

Production 2007-present

Price Rs. 63,000 pg. 27 Engine 150 cc, 14.4 ps@ 8500 rpm, torque12.8 N-m @6500 rpm Karizma ZMR

Manufacturer Hero Honda motorcycle Ltd.  Karizma Production 2009-present ZMR Price Rs. 91,000

Engine 223 cc, 17.6bhp@ 7000 rpm,

torque18.35 N-m @6000 rpm

2.9 BAJAJ auto ltd

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 pg. 28 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.

2.10 Corporate Profile

'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.

pg. 29 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 an special eye upon quality, safety, productivity, cost and delivery.

2.11 BAJAJ AUTO’S MISSION:

We at Bajaj Auto continue to firmly believe in providing the customer Value for money, for years through our products and services. This we shall maintain and improve,

In our decision making, quality, safety and service will be given as much consideration as productivity, cost and delivery.

Quality shall be built into every aspect of our work life and business operations. Quality improvements and customer satisfaction shall be the responsibility of every employee.

2.12 SWOT Analysis

Let's analyze the position of Bajaj in the current market set-up, evaluating its strengths, weaknesses, threats and opportunities available.

Strengths

 Highly experienced management.

pg. 30  Product design and development capabilities.  Extensive R & D focus.  Widespread distribution network.  High performance products across all categories.  High export to domestic sales ratio.  Great financial support network (For financing the automobile)  High economies of scale.  High economies of scope.

Weaknesses

 Hasn't employed the excess cash for long.  Still has no established brand to match Hero Honda's Splendor in commuter segment.  Not a global player in spite of huge volumes.  Not a globally recognizable brand (unlike the JV partner Kawasaki)

Opportunities

 Double-digit growth in two-wheeler market.  Untapped market above 180 cc in motorcycles.  More maturity and movement towards higher-end motorcycles.  The growing gearless trendy scooters and scooterette market.  Growing world demand for entry-level motorcycles especially in emerging markets

pg. 31 Threats

 The competition catches-up any new innovation in no time.  Threat of cheap imported motorcycles from China.  Margins getting squeezed from both the directions (Price as well as Cost)

2.13 The Inevitable Change

Bajaj on internal analysis found that it lacked –

1. The technical expertise to deliver competitive goods.

2. The design know-how.

3. And the immediate inability to support the onslaught of competitors.

All these forced Bajaj to look for an international partner who could bring in technology and also offer some basic platforms to be manufactured and marketed in India. Kawasaki of Japan is a world-renowned manufacturer of high performance bikes. Bajaj entered into a strategic tie-up with Kawasaki in late 1990s to enhance its product line and knowledge up-gradation to support long-term strategies.

This served the purpose of sustaining the market competition for a while. From 1996 to 2000, Bajaj invested hugely in infrastructure while simultaneously developing product design and innovation capabilities, which is the prime reason behind the energetic Bajaj of

pg. 32 21st century. Bajaj introduced a slew of products right from entry-level motorcycle to the high premium segment right from 2001 onwards, and since then its raining success all the way for Bajaj.

Last quarter, Bajaj had impressive performance growing at a rate of 20%+ when the largest manufacturer grew at just 6%. This stands a testimony to the various important strategic decisions over the past decade.

2.14 Product range of Bajaj

Motorcycles:

 PULSAR 135 LS

 PULSAR 150 DTS-i pg. 33  PULSAR 180 DTS-i

 PULSAR 220 DTS-i

 DISCOVER 135 DTS-i

 DISCOVER DTS-i

 PLATINA 125

 PLATINA 100

 AVENGER 200 DTS-i

 KAWAZAKI NINJA 250R

Features of a few bikes from above mentioned list from BAJAJ are as follows..

PULSAR Bajaj Pulsar 220 DTS-i

220 DTS-i

Manufacturer Bajaj Auto

Production 2008-present

Price Rs. 78,200 pg. 34 Engine 220 cc ,21.04 @ 8500 (Ps @ RPM) 19.12 @ 7000 (Nm @ RPM) Bajaj Discover DTS-i

DISCOVER

135 DTS-i

Manufacturer Bajaj Auto

Production 2005-present

Price Rs.47000-49200

Engine 135 CC ,9.64kw (13.10 ps) @ 8500rpm,11.88 nm @ 6500 rpm / 1.21 kgm

Bajaj Platina

Bajaj Avenger DTS-i PLATINA

125 cc

Manufacturer Bajaj Auto

Production 2006-present Manufactur Bajaj Auto Price Rs. 38621 er Engine 125CC,8.5PS Production 2005-present @7000rpm,10NM@4000rpm. Price Rs. 64,524

Engine 200cc, 17.51 PS @ 8000 rpm pg. 35 16.78 Nm @ 6000 rpm AVENGER 200 DTS-i

2.15 Current Situation

Current Performance.

 BAL is currently outperforming the industry growth rate in two-wheeler segment with 32% growth in year 2004-05 v/s industry growth of 19%.

 Market share in Motorcycles is improving with every passing year. It has also increased from 28% in 2004-05 to 31% in 2005-06.

 Annual turnover for the year 2005-06 is Rs. 81.06 billion v/s Rs. 63.23 billion a year before - an increase of 28% which is very healthy.

pg. 36  BAL has significant presence in all the three basic segments - Price Segment, Value Segment and Performance Segment - and has been showing increased sales in all the segments over years.

Besides this, BAL is a market leader in two-wheeler exports and it consists a great chunk of there overall revenues. Currently, BAL is selling over 1 lac motorcycles annually in Sri Lanka, further, they are commanding 50% market share in Central America.

2.16 The Industry Analysis - Five Forces Analysis-BAL

External Environment

Industry: Automobiles: Two Wheelers

Segments: Presence in all segments

Entry Barriers: Entry barriers are high.

 The market runs on high economies of scale and on high economies of scope.

 The need for technical expertise is high.

 Owning a strong distribution network is important and is very costly. All these make the barrier high enough to be a deterrent for new entrants.

Supplier Bargaining Power: Suppliers of auto components are fragmented and are extremely critical for this industry since most of the component work is outsourced. Proper supply chain management is a costly yet critical need.

Buyer's Bargaining Power: Buyers in automobile market have more choice to choose from and the increasing competition is driving the bargaining power of customers uphill. With more models to choose from in almost all categories, the market forces have empowered the buyers to a large extent.

pg. 37 Industry Rivalry: The industry rivalry is extremely high with any product being matched in a few months by competitor. This instinct of the industry is primarily driven by the technical capabilities acquired over years of gestation under the technical collaboration with international players.

Substitutes: There is no perfect substitute to this industry. Also, if there is any substitute to a two-wheeler, Bajaj has presence in it. Cars, which again are a mode of transport, do never directly compete or come in consideration while selecting a two-wheeler, cycles do never even compete with the low entry level moped for even this choice comes at a comparatively higher economic potential.

Summarizing the industry analysis, it can be said that the two-wheeler market is attractive as it scores well on three out of five categories

2.17 Product & Advertising Strategies OF BAL

The focus of BAL off late has been on providing the best of the class models at competitive prices. Most of the Bajaj models come loaded with the latest features within the price band acceptable by the market. BAL has been the pioneer in stretching competition into providing latest features in the price segment by updating the low price bikes with the latest features like disk-brakes, anti-skid technology and dual suspension, etc.

BAL adopted different marketing strategies for different models, few of them are discussed below: -

Kawasaki 4S - First attempt by bajaj to make a mark in the motorcycle segment. The target customer was the father in the family but the target audience of the commercial was the son

pg. 38 in the family. The time at which Kawasaki 4S was launched Hero Honda was the market leader in fuel-efficient bikes and Yamaha in the performance bikes.

The commercial of Kawasaki 4S had the punch line "Kyun Hero" means "now what hero" which reflected the aggressiveness in the marketing front by the company.

Boxer - It took the reins from where the Kawasaki 4S left. Target was the rural population and the price sensitive customer. Boxer marketed as a value for money bike with great mileage. Larger wheelbase, high ground clearance and high mileage were the selling factors and it was in direct competition to Hero Honda Dawn and Suzuki MX100.

Caliber - The focus for the Caliber 115 was youth. And though Bajaj made the bike look bigger and feel more powerful than its predecessor (characteristics that will attract the average, 25-plus, executive segment bike buyer), its approach towards advertising is even more radically different this time around. Bajaj gave the mandate for the ad campaign to Lowe, picking them from the clique of three agencies that do promos for the company (the other two being Leo Burnett and O&M). Going by the initial market response, the campaign was clearly a hit in the 5-10 years age bracket. So, the teaser campaign and the emphasis on the Caliber 115 being a `Hoodibabaa' bike placed it as a trendy motorcycle for the college- goers and the 25 plus executives both at the same time.

Pulsar - Pulsar was launched in direct competition to the Hero Honda's 'CBZ' model in 150 cc plus segment. The campaign beared innovative punch line of "Definitely Male" positioning Pulsar to be a masculine-looking model with an appeal to the performance sensitive customers. The Pulsar went one step ahead of Hero Honda's 'CBZ' and launched a twin variant of Pulsar with the 180 cc model. The model was a great success and has already crossed 1 million mark in sales.

Discover - The same DTSI technology of Pulsar extended to 125 cc Discover was a great success. With this, Bajaj could realize its success riding on the back of technological innovation rather than the joint venture way followed by competitors to gain market share.

pg. 39 2.18 Strategies & Implementation

FMCG Business Model

BAL now is taking a leaf out of the FMCG business model to take the company to greater heights. Bajaj has kicked off a project to completely restructure the company's retail network and create multiple sales channels.

Over the next few months, the company will set-up separate sales channels for every segment of its business and consumers. Bajaj Auto's entire product portfolio, from the entry-level to the premium, is being sold by the same dealers. The restructuring will involve separate dealer networks catering to the urban and rural markets as well as its three-wheeler and premium bikes segments.

Bajaj Auto also plans to set-up an independent network of dealers for the rural areas. The needs of financing, selling, distribution and even after-sales service are completely different in the rural areas and do not makes sense for city dealers to control this. The company also plans to set-up exclusive dealerships for its three-wheeler products instead of having them sold through an estimated 300 of its existing dealers.

2.19 Other Strategic Issues

Cash is strength: Bajaj Auto has been sitting on a cash pile for over five years now. Over the next couple of years, competition in the two-wheeler market is set to intensify. TVS Motors and Hero Honda are on a product expansion binge. To fight this battle and retain its hard- earned market share in the motorcycle segment, Bajaj Auto will need its cash muscle. A look at its own story over the past five years provides valuable insight.

Delisting worry: What is worrying is that there is an idea to delist the investment company (also an indirect indication that it would be listed initially). This would be closing the valve of equitable ownership distribution.

There is a hint of a buyback of shares of the investment company as this is the only way it can be delisted. The company would not be short of cash to put through such a buyback.

pg. 40 Factors such as low valuation, low trading interest and the need to provide shareholders may be cited as plausible reasons for the buyback.

Stake for Kawasaki: Bajaj Auto's attempt to vest the surplus cash in a separate company may be a prelude to offering a stake to Kawasaki of Japan in the equity of the automobile company. The latter has been playing an increasingly active role in Bajaj's recent models, and its brand name is also more visible in Bajaj bikes than in the past.

Better value proposition: Shareholder interests may be better served if the cash is retained to pursue growth in a tough market. This would also obviate the need to fork-out fancy sums as stamp duty to the government for the de-merger. A combination of a large one-time dividend and a regular buyback program through the tender route may offer better value. A strategic stake for Kawasaki would only positively influence the stock's valuation.

2.20 Strategies for the Overseas Markets

Bajaj Auto looks at external markets primarily with three strategies: - 1) A market where all BAL need to do is distribute through CKD or CBU routes. 2) Markets where BAL need to create new products. 3) Markets where BAL need to enter with existing products and probably with a good distributor or a production facility or a joint venture.

Earlier, most of the products that Bajaj exported were scooters and some motorcycles. However, in its target markets, like in India, the shift was towards motorcycles. With the expansion in Bajaj's own range to almost five-six platforms of motorcycles, it had a better offering to export, also the reason for its stronger showing. For the last fiscal, 60 per cent of its exports were two-wheelers and the rest three-wheelers. Of the two-wheeler exports, close to 90 per cent were motorcycles.

pg. 41 Bajaj has identified certain key markets, which hold potential. Its first overseas office established at the Jebel Ali free trade zone has been the focal point for exports to middle Africa and the Saharan nations. Egypt and Iran also continue to be strong markets for Bajaj.

The other market, which would be a focus area, is South America, where the company feels it is fairly well represented in most countries, except in Brazil, the largest market. The company recently participated in a large auto exhibition in Brazil and found good consumer acceptance to products like Pulsar and Wind 125.

The other focus area is the ASEAN nations, which constitute the third biggest consumer of two-wheelers. The biggest among them is Indonesia, where Bajaj distributors are looking to introduce eco-friendly four-stroke auto rickshaws. But two-wheeler market requires great deal of effort from BAL. Everybody is there with Honda leading the show. There's Suzuki, Kawasaki and some Korean and Chinese models. BAL should look at the right product mix for two-wheelers. Bajaj's Pulsar model has taken off well there. It also wants to develop a new step-through model for the Indonesian market, but for now it will create a base there with its motorcycle models.

Bajaj has also made a beginning by selling bikes in the Philippines branded in the name of its technical partner, Kawasaki. The two signed an MoU in February. Kawasaki, a large multi- product conglomerate, only makes high-end bikes and does not have sub-200cc models. Kawasaki is marketing the new model, Wind 125, developed by both companies, in the Philippines. The Bajaj-developed models, Caliber and Byk, which is a fuel-efficient bike, are also being distributed by Kawasaki. This is a good beginning strategically for Kawasaki to evince interest in Bajaj products for markets which can still buy less than 150 cc.

2.21 R&D

Bajaj Auto has a huge, extensive and very well-equipped Research and Development wing geared to meet two critical organizational goals: development of exciting new products that anticipate and meet emerging customer needs in India and abroad, and development of eco- friendly automobile technologies.

pg. 42 While the manpower strength of the R&D represents a cross-section of in-depth design and engineering expertise, the company has also been investing heavily in the latest, sophisticated technologies to scale down product development lifecycles and enhance testing capabilities

Bajaj Auto R&D also enjoys access to the specialized expertise of leading international design and automobile engineering companies working in specific areas.

Based on their own brand of globalization, they have built their distribution network over 60 countries worldwide and multiplied the exports from 1% of total turnover in Fiscal 1989-90 to over 5% in Fiscal 1996-97.

The countries where their products have a large market are USA, Argentina, Colombia, Peru, Bangladesh, Sri Lanka, Italy, Sweden, Germany, Iran and Egypt. Bajaj leads Colombia with 65% of the scooter market, in Uruguay with 30% of the motorcycle market and in Bangladesh with 95% of the three-wheeler market.

Several new models are being developed specifically for global markets and with these the company will progressively endeavor to establish its presence in Europe too.

2.22 The Future

Although the avalanche of motorcycles offered Indian consumers a wide variety of models to choose from, it also resulted in increased pressure on the companies to concentrate on cost- cuts, technology enhancements and up-gradations and styling. Their margins came under pressure as marketing costs escalated.

The companies were forced to reduce prices and offer discounts to survive the competition. Moreover, analysts were skeptical about the segment's ability to maintain the growth rate in the years to come. One of the major assumptions underlying the motorcycles rush was that if the market was considerably large and was growing at a constant pace, there was room for a profitable existence for all brands. pg. 43 In 2001, there were over 30 motorcycle brands in the market. However, with the top five brands accounting for more than 60% of the market, only 40% of the market was available for all other new brands put together. Despite the launch of more vehicles, the survival prospects of many of the individual brands were deemed to be rather bleak.

Further, the growth in the motorcycle segment was dependant on continuing favorable market conditions. Analysts claimed that to sustain this growth rate, the segment would have to completely cannibalize the market for scooters and a considerable part of the market for scooters and mopeds.

Considering the fast growing scooter segment, with high demand from female customers, followed by the moderately growing moped segment and the restructuring in the scooter segment with major national and foreign players reinforcing their presence, it was unlikely that the entire growth in the two-wheeler sector would be due to motorcycles.

Analysts also commented that as the two-wheeler industry had grown steadily for eight years, stages in the product life cycle would apply to the field sooner, rather than later and the decline stage would invariably come some day. There was little differentiation between the brands being launched apart from styling as most companies had introduced their four-stroke vehicles.

With the failure of the joint ventures, the expected introduction of cheaper Chinese brands, stringent emission norms and threat from major international players, the survival of indigenous brands looked uncertain. Constrained with the ruling price levels in the market place, limited infrastructure and lack of technological innovations when compared to their foreign counterparts, whether the Indian companies would succeed in generating the kind of volumes needed to sustain in the competitive motorcycle market, remains to be seen.

2.23 New Strategies adopted by Bajaj

Major emphasis to be on new product launches.

Have a new scooter market under development – will be launched early 2010.

Plan to launch a three-wheeled motorcycle, to cater to a niche segment.

pg. 44 Bajaj expects stronger growth in the first quarter of FY'10 powered by the continuing success of the XCD 135 DTS-Si as also the launch of product upgrades off the Pulsar platform

As a result of the recent stake hike by Bajaj Auto, KTM now has Rajiv Bajaj on its board and the cooperation agreement between the two companies covers product development, technology, vendor sourcing and distribution.

Existing Products New Launch's in 2009 Bajaj Bajaj Kristal DTSi XCD 135 DTSi Pulsar XCD Sprint Discover 135 DTSi Discover 100 DTS-Si Platina 100, 125 DTSi Kawasaki Ninja 250R

2.24 HONDA MOTORCYCLE & SCOOTER INDIA (Pvt.) Ltd.(HMSI)

Honda is the world's largest manufacturer of 2-wheelers. Its symbol, the Wings, represents the company's unwavering dedication in achieving goals that are unique and above all, conforming to international norms. These wings are now in India as Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI), a wholly owned subsidiary of Honda Motor Company Ltd., Japan. These wings are here to initiate a change and make a difference in the Indian 2- wheeler industry. Honda's dream for India is to not only manufacture 2-wheelers of global quality, but also meet and exceed the expectations of Indian customers with outstanding after sales support.

pg. 45 2.25 About Honda Motorcycle & Scooter India Pvt. Ltd.

Official Name Honda Motorcycle & Scooter India Pvt. Ltd.

Established 20th Aug, 1999

Place Manesar, District Gurgaon, Haryana, India

Investment Rs. 300 Crore

Representative Mr. Shinji Aoyama, President & CEO

Factory Location Manesar, District Gurgaon, Haryana, India

Production Capacity 10,000,00 Units per Year

Honda's dream for India is to not only manufacture 2-wheelers of global quality; but also meet and exceed the expectations of Indian customers with outstanding after sales support. They aim to produce technologically superior, efficient and reasonably priced 2- wheelers, with Honda tested technology, backed up with after sales service of Honda's global standard.

2.26 CORPORATE PROFILE

Honda Motor Co., Ltd., operates under the basic principles of "Respect for the Individual" and "The Three Joys"-commonly expressed as The Joy of Buying, The Joy of Selling and The Joy of Creating. Respect for the Individual" reflects our desire to respect the unique character and ability of each individual person, trusting each other as equal partners in order to do our best in every situation. Based on this foundation of Respect for the Individual, "The Three Joys" expresses our belief and desire that each person working in, or coming into

pg. 46 contact with our company, directly or through our products, should share a sense of joy through that experience.

In line with these basic principles, since its establishment in 1948, Honda Motor Co., Ltd., has remained on the leading edge by creating new value by providing products of the highest quality at a reasonable price, for worldwide customer satisfaction. In addition, the Company has conducted its activities with a commitment to protecting the environment and enhancing safety in a mobile society.

The Company has grown to become the world's largest motorcycle manufacturer and one of the leading automakers. With a global network of 454* subsidiaries and affiliates accounted for under the equity method, Honda develops, manufactures and markets a wide variety of products ranging from small general-purpose engines and scooters to specialty sports cars, to earn the Company an outstanding reputation from customers worldwide.

2.27 Mission Statement

Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality at a reasonable price for worldwide customer satisfaction.

2.28 SWOT Analysis

Strength

 Reliable brand name  Affordable price  Honda have a big share of market in scootreats segment

pg. 47  Honda is the first company who introduced the technology of central shock absorption in India  Honda having high tech engines  HMSI is the subsidiary company of Honda Motors Ltd. Which is the largest company in the proposed sector

Weakness

 Less number of service center  Market share very less as compare to there competitor  Spares parts are not easily available  Low product range  Maintenance cost is very high

Opportunity

 Increase in product range  Untapped market above 180 cc in motorcycles.  More maturity and movement towards higher-end motorcycles  Honda can be use brand image of Hero Honda

Threats

 There is high competition in the market  Threat of cheap imported motorcycles and components from China

pg. 48 2.29 PRODUCT RANGE:

SCOOTERS:

 DIO

 ACTIVA

 AVIATOR

MOTORCYCLES:

 CB TWISTER

 SHINE

 CBF STUNNER

 UNICORN

 CBF STUNNER PGM FI

 CB1000R

 CBR1000RR

Activa

Features of a few bikes from above mentioned list from HONDA are as follows..

ACTIVA Manufacturer Honda Motors Ltd.

Production 2004-present pg. 49 Price Rs. 40661

Engine 4-stroke, air cooled,7 bhp @ 7000 rpm,102 cc

CB Twister CB TWISTER

Manufacturer Honda Motors Ltd.

Production 2010 ONWARDS

Price Rs 48,000

Engine 110cc,9bhp@8000 rpm,9Nm@6000rpm

pg. 50 CBF STUNNER PGM FI

CBF

STUNNER

PGM FI Manufacturer Honda Motors Ltd.

Production 2010 ONWARDS

Price Rs 48,000

Engine 125cc,11.6bhp@8000 rpm,11.2Nm@6250rpm

UNICORN

UNICORN

Manufacturer Honda Motors Ltd.

Production 2005-present

Price Rs 63,000

Engine 150cc,13.3bhp@8000 rpm,12.8N- pg. 51 m@5500rpm. 2.30 Market growth and market size (HMSI)

The automobile industry has seen an overwhelming growth in liberal India. Almost every big manufacturer has made its presence felt in the country. After the foreign direct investment regulations were removed, many manufacturers saw India as a potential market. Most of the auto manufacturers were in collaboration with the Indian companies after ’91 till ’99, when the rules were changed; some of them still enjoy that. With many foreign manufacturers eyeing India as the market, the giants were no exception and most of them are already having their manufacturing or assembling facilities in India. Honda was into the Indian two-wheeler industry from 1983, when it joined hands with Hero to start Hero Honda and with Kinetic to start Kinetic Honda. Honda broke the ties with Kinetic in ’99 and set up its own 100% subsidiary called Honda Motorcycle and Scooter India (HMSI) Pvt. Ltd.

HMSI laid its foundation stone in Manesar, Haryana in the same year and also signed an agreement with Hero that it won’t manufacture motorcycles for the next five years i.e. till 2004 as Hero Honda was not into the scooter segment at that time. This gave Honda a license to manufacture scooters at will and it did that by rolling out its first scooter, Activa in 2001 and followed it with Dio in the same year. Honda now enjoys a large chunk of market share in the scooter segment with Activa, Dio and now Aviator as its products. Honda introduced its first motorcycle, Unicorn in 2004 in the 150cc segment which was followed by Shine in the 125cc segment in 2006 followed by Stunner in the same segment in 2008. All these motorcycles were highly appreciated and instant hits in the growing Indian market which over these years was mainly dominated by Hero Honda and Bajaj Auto Ltd.

The main rivals HMSI is countering are BAL, Hero Honda and TVS in the motorcycle segment and TVS, Hero Honda and Mahindra Kinetic in the scooter segment. HMSI is the pg. 52 market leader in the scooter segment and is yet to have a major share in the motorcycle segment even though it is growing at 32.24% on a monthly basis.

The bike segment has a market growth rate of 43% with HMSI having a share of 18% The biggest rival in this segment is HMSI’s sister concern Hero Honda with a share of 55%. The scooter segment is having a growth rate of 32.24% and HMSI having a market share of 57.7%. The nearest rival in this segment is TVS motors with a share of 18.7%.

2.31 Strategy of rivals Vs HMSI

In 2007, out of every 100 two-wheelers sold in the country - only 12 were scooters. That number went up to 16 in the past financial year and is projected to zoom to almost 20 this year. There’s more: the scooter market grew in double digits last fiscal, outperforming the two-wheeler market, which grew 2.6 per cent in the same period. The golden days of the early 80s, when scooters had a 64 per cent market share, are still far away. But the revival signals are strong.

Scooter manufacturers said the 1.14 million-strong domestic market was expected to cross 2 million units in the next four years. That explains the entry of a host of newer players in the segment, such as Mahindra-Kinetic and Yamaha. Sensing competition, the established players — Honda, TVS Motors, Bajaj Auto, Hero Honda and Suzuki — have hit the drawing board once again, to pull out flashy, high-powered and un-geared scooters.

Scooter production stands at roughly 20% of the overall two-wheeler production

Year Two Wheelers Production (Bikes + scooters) 2002-03 5,076,221 2003-04 5,622,741 2004-05 6,529,829 2005-06 7,608,697 2006-07 8,466,666 2007-08 8,026,681 2008-09 8,418,626 (http://www.siamindia.com/scripts/production-trend.aspx)

pg. 53 HMSI has 55 per cent market share, followed by TVS Motors with 19 per cent and Hero Honda with 14.5 per cent and Bajaj managing a 11% market share.

Sales Growth / Decline % Projected Market share % * Growth% HMSI 55 32.24% 18% TVS 19 14% 7 Bajaj 11 -12% NA * based on year on year comparison with sales in July 2008 * Comparison of scooter sales.

2.32 Strategy of HMSI

 Honda to exit geared scooter segment in India, the Japanese two-wheeler major Honda will exit the geared scooter market in India and phase out its 150 cc model — Eterno — as the company plans to focus on the gearless segment.  The company would focus on gearless scooters in the future and with the launch of the new Activa, HMSI is looking at a total of 18% growth in its two-wheeler sales in the next fiscal, 2009-10.  The Company has entered the bikes market since 2004. This has led to a certain degree of cannibalism between Hero Honda & HMSI. However, Honda motor company stands to gain out of either company’s success.  HMSI has a one-month waiting period for its new Activa (110 cc); six months before, it was just 10 days. Encouraged, it is ramping up its monthly production to 60,000 from 40,000 earlier.  Honda remains committed to its promise to deliver superior technology and performance, even though HMSI products are priced relatively higher than other companies in the market.

2.34 Strategy adopted by TVS & Bajaj for increasing sales and countering growth of HMSI

pg. 54 Most companies currently produce scooters in the 100-125cc range that are targeted at customers who want higher mileage and are ready to compromise on power. Generally, an entry-level bike (100cc) is more powerful and economical than a gearless scooter.

To counter this, companies are working on scooter models that generate higher power without undermining the fuel economy. The result will be a product that matches the performance of motorcycles while being more comfortable, agile and easy on the pocket.

They also aim at developing E- scooters

 Chennai-based TVS Motors, makers of Scooty, are developing a premium un-geared scooter that will be more powerful and superior on design and styling. The company is learnt to have developed a new platform, much more powerful than the 90cc Scooty.  The country’s second largest bike maker, Bajaj Auto, is also developing a completely new, un-geared, scooter. To be launched in 2011, it is aimed at taking on the products of HMSI. This product will be high on power output, like the company’s current bike range, but will not sacrifice on fuel economy.

2.35 Review of strategies adopted by Honda

The first bike launched by Honda, Unicorn was launched in the existing 150cc segment which was mainly dominated by Pulsar series and later TVS Apache also chipped in within the competition. Same was the case with Shine, its second bike in the 125cc segment. After this, Honda slightly moved away from convention by adopting a new strategy of segmentation by creating a segment within two existing segments. In 2008, Honda launched a 125cc Stunner CBF intended for not the conventional 125cc segment but just between 125cc and 150cc segment. Honda did not compromise on the feature rich and technologically sound product and not on the price either. The price of this bike was 50-60 thousand, thus overcoming the price void between the 150cc and 125cc bikes. The competitors sell their 125cc bikes at 40-50 thousand while the price of 150cc segment starts somewhere around 60 thousand. This pricing strategy of Honda has paid well and now they are planning to pg. 55 penetrate the gap between the existing 100cc and 125cc segments by launching a new feature laden and technologically sound 100cc bike. Again Honda has clearly announced that the price of this bike won’t be in the conventional 100cc range but slightly more than that.

SBU Market Market Share Market Share Relative Quadrant Growth Rate Of Nearest Market Share Rival

Bikes 43 18 55 0.33 Question Mark

Scooters 32.24 57.7 18.7 3.08 Star

pg. 56 RELATIVE MARKET SHARE

STAR Question Mark

(Scooters) (Bikes)

M A 10 R K E T

G CASH COW DOG R O W T H

0

pg. 57 pg. 58 3.1 RESEARCH DESIGN

3.2 STATEMENT OF PROBLEM

One of the major problem is the negative growth being faced by companies in the two wheeler industry. The two wheeler industry has been shrinking continuously. From a peak of over 40% growth in 2002 it is currently facing a growth of -12% in the second quarter of 2008. Exhibit shows the recent trends.

The above exhibit shows the De-growth in the industry.

3.3 HYPOTHESIS

pg. 59 Null Hypothesis, H0 : There is a negative growth in the two wheeler industry

Alternative Hypothesis, H1: There is no negative growth in the two wheeler industry.

3.4 AIMS AND OBJECTIVES

 To study and compare the top three companies HERO HONDA,BAJAJ,& HMSI

 To compare and analyze the product strategies of these three companies.

 To find out the reasons for change in growth of two wheeler industry.

3.5 SAMPLING TECHNIQUE

Non-probability sampling technique Convenience Sampling was used for collecting data from the consumers for the survey.

3.6 SAMPLE UNIT

Sample units are nothing but the respondents covered during the process of collecting data for the purpose of research. The sampling units consisted of people who own a two wheeler.

3.7 SAMPLE SIZE

The sample size is the total number count of the number of total respondents covered for the research purposes. Total sample size =100 Male – 88 pg. 60 Female- 12

3.8 STATISTICAL DESIGN

The data was collected and complied in Microsoft Excel and is analyzed using graphs and pie charts.

3.9 PRIMARY DATA

Primary data was collected through the administration of questionnaires to the sample units and conducting a pilot study to ascertain the worth of the questionnaire.

 Questionnaire Design  Questionnaire Administration  Scoring Procedure  Pilot study

3.10 SECONDARY DATA

Secondary data would be collected from internet, industry journals and magazines. This information and the previous research papers will help in designing the questionnaires and various attributes on which the companies are to be assessed. The company dealers also provided valuable information.

3.11 LIMITATIONS OF STUDY

 Owing to the huge population size (sampling universe) spanning throughout the country, it becomes almost impossible to cover all the places in the given scope of study.  The results thus obtained are just an overview of the areas and companies covered.  The data gathered and the results interpreted are what was done in a time frame of 6 months and hence may not reveal the depth of the situation. pg. 61  For the ease of analysis, percentage of respondents using the products was considered as the market share of the particular product in that category.  This dissertation is confined on the basis of more secondary data collected only hence it is not very much a reliable data for the study.

pg. 62 4.1 RESPONDENT’S PROFILE

4.2 SEX

TABLE 3: SEX OF RESPONDENTS

SEX NUMBER OF PERCENTAGE OF RESPONDENTS RESPONDENTS(%)

Male 88 88

Female 12 12

pg. 63 88 males and 12 females were covered during the survey.Hence 88% of the respondents were males and the rest 12% were females.

4.3 MARITAL STATUS

MARITAL STATUS OF RESPONDENTS

MARITAL STATUS NUMBER OF PERCENTAGE OF RESPONDENTS RESPONDENTS(%)

Unmarried 70 70

Married 30 30

pg. 64 Out of the total respondents ,70% were single,30% were married and separated factor was not taken into account.

4.4 OCCUPATION

OCCUPATION OF RESPONDENTS

OCCUPATION NUMBER OF PERCENTAGE OF RESPONDENTS RESPONDENTS

STUDENTS 68 68

SELF EMPLOYED 20 20

WORKING 12 12

pg. 65 Among the 100 people surveyed ,68% were students,20% were self-employed and remaining 12% belonged to working class like office goers, clerks etc.

4.5 AGE

pg. 66 AGE GROUP NUMBER OF PERCENTAGE OF RESPONDENTS RESPONDENTS 18-22 10 10% 22-25 60 60% 25-30 20 20% >30 10 10%

pg. 67 Of the 100 respondents, 60% belonged to 22-25 age group,20% to 25 -30 group,10% to18-22 group and the remaining 10% to more than 30 age group.

4.6 INCOME

MONTHLY NUMBER OF PERCENTAGE OF INCOME(IN RESPONDENTS RESPONDENTS 000’S)RS. <20 30 30% 20-30 55 55% 30-40 10 10% >40 5 5%

30% of the total respondents earn less than Rs. 20,000 per month,55% of the respondents earn Rs. 20,000-30,000 per month,10% of the respondents earn Rs .30,000-40,000 per month and 5% of respondents earn more than Rs. 40,000 per month.

pg. 68 5.1 DATA ANALYSIS

5.2 OWNERSHIP OF TWO WHEELER

YES 80%

pg. 69 NO 20%

ANALYSIS:

80% of the respondents own a two wheeler and 20 % of them do not have one.

INTERPRETATION:

Since majority of my respondents are students from colleges, they own two wheelers for daily commutation. Each one of them own different brands according to the taste and preferences of the two wheelers available in the market. The most common brands are Hero Honda, Bajaj, Honda.TVS etc.

5.3 MOST VIEWED ADS

HERO HONDA 50%

BAJAJ 40%

HMSI 10%

pg. 70 ANALYSIS:

The viewership rate of ads among respondents is highest for Hero Honda with 50%,then comes Bajaj with 40% and Honda with 10%.

INTERPRETATION:

Hero Honda and Bajaj being the long term rivals compete each other to capture the market share. Hence if one of them comes with an effective ad, the other will surely try to better it. In case of Honda it’s a late entry into the Indian market and it’s growing.

5.4 MOST INFLUENTIAL ADS

HERO HONDA 35%

BAJAJ 55%

HMSI 10%

pg. 71 ANALYSIS:

In terms of influence of ads on the respondents, Bajaj comes with 55% , then Hero Honda with 35% and Honda 10%.

INTERPRETATION:

Bajaj comes with ads that has more adrenalin rush specially targeting the youth and majority of them get inspired by the same. Hero Honda mainly depends on celebrities to influence the viewers. Honda mainly focuses on the international reputation of brand name they have built for themselves.

5.5 BEST RECALLED ADS

pg. 72 ANALYSIS:

In terms of recall ,50% of respondents were for Bajaj stunt ad, then 35% were for Hero Honda KARIZMA ad with Hrithik roshan as brand ambassador.

INTERPRETATION:

Bajaj came with stunt ads so that it may attract the youth,and they positions their bike mainly high performing, aggressive, reliable. Hero Honda comes with the fan base of its brand ambassador who very well connects with the features of the bike .Very few recalled Honda bike ads as they were very stereotyped ads.

5.6 MOST COMMON SOURCE OF ADS

TV 18%

NEWSPAPER/MAGAZINES 70%

pg. 73 BILLBOARDS 5%

INTERNET 7%

ANALYSIS:

Among the common source of ads, newspaper and magazines are marked by 70% of respondents, TV by 18% ,Internet by 7% and Billboards by 5%.

INTERPERTATION:

Newspaper and magazines comes with a lot of information related to bikes and it is a major source. Latest trend of internet penetration also brings in ads on bikes ,mainly through social networking sites, during online matches, events etc.

5.7 SOURCE OF RELIABLE INFORMATION FOR PURCHASE DECISIONS

FRIENDS 5%

pg. 74 INTERNET 65%

AUTOMOTIVE 10% MAGAZINES

COMPANY 20% DEALERS

ANALYSIS:

Out of 100 respondents ,65% found internet as a good source of reliable information,then with company dealers 20%,automotive magazines 10%,friends 5%.

INTERPRETATION:

The various web sites on the net provide valuable information regarding the bikes. With the availability of net, people can browse about any information about any pg. 75 model before going to any dealer. Company dealers provide specific information and in depth about a particular model. The rest is from friends and auto magazines.

5.8 FACTORS WHICH MOTIVATE PURCHASING DECISION.

DISCOUNT RATE 30%

EMI 45%

RESALE VALUE 12%

ALLOWANCES 8%

OTHERS 3%

pg. 76 ANALYSIS:

EMI is one of the major motivating factor with 45% liking it,then comes discount rate 30%,resale value 12%,allowances 8%,and others 3%

INTERPRETATION:

EMI comes with a great motivational factor in purchasing a bike. It is less risky ,and affordable way of purchasing. Discount rate normally comes during festival seasons where maximum sales happen. Resale value has few effects on certain branded bike purchases.

5.9 PREFERRED PRICE RANGE(in 000’s)

30-40 5%

40-50 5%

50-60 13%

60-70 65%

pg. 77 70-80 10%

>80 2%

ANALYSIS:

The most preferred price range is 60-70 with 65% going for this option.13% for 50- 60, 10%for 70 to 80, 5% each for 30-40 & 40-50.and 2% for more than Rs.80,000.

INTERPRETATION:

Most of the performance, value segment bikes falls in the 60-70 price category, and there is huge competition among the major players. Then the preferred ones are high performance bikes in the >Rs. 70,000 and medium performance and high efficient ones in the

pg. 78 5.10 RATING FOR VARIOUS FACTORS(1 LEAST PREFERRED AND 7 MOST PREFERRED)

pg. 79 ANALYSIS:

In this the most preferred factor is performance with 75% going for it. Then comes service and support and fuel efficiency with 90% and 70% in terms of preferences. This is followed by price and brand value of the bike.

INTERPRETATION:

Performance is one factor which most of the people specially youth look upon in a two wheeler. Also the companies have come upon with a segment of this category and pg. 80 have developed bikes based on this. The customers also look into the after sales and support the company offer when going for a two wheeler. Hence the service offered is of prime importance. The price is an important factor for medium segment people that is below Rs.60,000 as they try to balance price as well as efficiency of two-wheeler. Brand value plays a major role for loyal customers for eg. A person buys only HONDA, because its one of the internationally trusted brands.

5.11 IS CROSSCHECKING DONE?

YES 20%

pg. 81 NO 80%

ANALYSIS:

Only 20% say that they do cross checking of what they see in the commercial,80% do not do it

INTERPRETATION:

Most of the viewers see the ads and get some information regarding it with very few doing crosschecking about what really is behind the scenes.

pg. 82 6.1 DEMAND AND GROWTH DRIVERS

pg. 83 The following factors play a major role in increasing the demand for two wheelers in India.

Personal Income, demography and penetration level are key growth drivers in the two wheeler industry.

Personal Income

Demand increases as the income increases, only to be substituted later by the demand for four wheelers. Income has been steadily growing in India and is projected to stabilise at a growth rate of 9-12 percent range by 2012.

Demography and Inspiration

The bigger the young and working population, the greater is its need for commutation. The IT and BPO revolution has influenced this movement. This is a favourable factor since Indian workforce is young.

Penetration Level

The lower the penetration levels in the market, the better the scope for future demand. As the penetration of the rural market is significantly low, it is going to be a significant long term growth driver.

Other Factors

Improvement in infrastructure increases competition, while simultaneously improving the public transport. The average time period taken to replace an existing bike with a newer model has decreased from 7 years to 5 years, resulting in replacement demand growth.

pg. 84 7.1 FINDINGS

pg. 85 The major findings during the data collection and analysis time can be summed up as follows:

 Interest rates are one of the prime reasons for the sharp fall in demand. Many banks have increased interest rates which make two wheelers costlier.  Difficulty in availing loans, rising defaults, tightening of loan recovery laws and various other factors have dissuaded consumers from availing loans and led to further problems in credit lending.

 Increasing oil prices have deterred many lower middle class families from buying two wheelers.

 Introduction of low priced cars will directly affect the market. The family segment would want to gradually move from two wheelers to four wheelers. The major impact of this phenomenon would be experienced in the 100-125 cc two wheelers whereas the performance segment i.e. > 125cc will continue to grow strongly.

 With the introduction of the Bharat-4 norms, it will be more challenging to meet these stringent norms whilst simultaneously offering competitive prices.

In spite of these factors, demand drivers are present for the foreseeable future and are favourable for the two wheeler industry. However, to capture this growth, any player will have to correctly position itself to appeal to the consumer.

pg. 86 pg. 87 8.1 HYPOTHESIS TESTING

Null Hypothesis, H0 : There is a negative growth in the two wheeler industry

Alternative Hypothesis, H1: There is no negative growth in the two wheeler industry.

PARAMETERS TO TEST HYPOTHESIS

Since the hypothesis is stated in absolute subjective terms, there was a requirement to convert this subjectivity into objectivity to arrive at a stage for testing the hypothesis. For performing this task, 7 product categories were selected and the companies were tried on the grounds of:

 Availability of product  Number of customer complaints  Dealers satisfaction level  Areas of operation and design of distribution channels  Hold on the market share

Hence the companies were tested on these basis and hence the results were compiled according to the respective product categories itself.

RESULT OF HYPOTHESIS TESTING

The overall research and analysis of the two wheeler companies across these 7 categories led to the following result:

 Null hypothesis is accepted for the product categories of 100cc and 125cc segment as there is intense competition from fuel efficient small cars in India.

 Null hypothesis does not hold true for product categories like 135cc,150cc,180cc,220cc.

Since the null hypothesis does not hold true in majority of the product categories and hence the null hypothesis is not valid and hence, NULL HYPOTHESIS IS NOT PROVED. In Indian markets for majority of the two wheeler product categories, Foreign companies have streamlined their operations and distribution channels in a much more effective way ensuring higher availability of their goods in the market in pan-India.

pg. 88 9.1 RECOMMENDATIONS

The following recommendations are:

pg. 89  The two wheeler companies should focus on gearless scooters. The market share of gearless scooters is increasing at a healthy rate. Bajaj is virtually absent in this range that caters to the needs of women and families. Presently Honda, Hero Honda and TVS are big players in this segment.

 Entry into four wheeler segment

Bajaj has entered into a joint venture with Renault-Nissan in the development of a small car priced at $3000. This is a significant move because it directly competes with Tata NANO. Bajaj has also displayed its small car prototype in the recently held auto expo. It promises double the mileage as compared to any car in the economy segment and is also considering the option of introducing Diesel and LPG variants. The four wheeler segment will also be able to hedge any risk that might arise because of the two wheeler industry and would profit from retaining consumers switching from two wheelers.

 Scaling Up Service Centers

Companies need to scale up its service centers both in numbers and in capacity. Keeping in line with its growth target for the next 5 years, the service centers should not only cater to two wheelers but should also be upgraded to cater to the needs of four wheelers that companies plans to launch.

 Focus on Easy Credit Lending

 Investment in Research and Development

 Focus on Exports and Global Market

pg. 90 10.1 LEARNINGS

I had some major learnings while working on this research project which can be summarized as follows:

pg. 91  Dream High because that will help you to Achieve Big.  Systematic Planning is the essence for the project.  Making realistic time frame and following them is mandatory.  Data Collection requires a lot of patience and follow up. It requires meticulous research to select the right sample for research.  Secondary data collection is also an important task and one must be aware which source is completely authentic and reliable.  SMART goals must be set(S-specific, M-measurable, A-authentic, R-realistic and T- time specific).

pg. 92 11.1 BIBLIOGRAPHY

 www.google.co.in  www.wikipedia.com  www.slideshare.com  www.economywatch.com  London Business School-digital library pg. 93  AUTO MAGAZINES  Hero Honda ,Bajaj, Honda dealers

pg. 94 12.1 QUESTIONNAIRE

Hi, I am conducting a research on the comparative study of ‘three’ two wheeler companies based on its product strategy and advertising strategy. Please take a

pg. 95 few minutes of your time to fill the questionnaire. Information provided by you will be kept confidential.

1. Do you own a two wheeler? Yes No If yes, then specify______

2. Which of the three companies’ ads you have viewed the most? HERO HONDA HMSI BAJAJ

3. Among these ads which ad has influenced you the most? HERO HONDA HMSI BAJAJ

4. Name any two bike ads that you can recall the best. a.______b.______

5. Where do you come across these ads quite often ? TV Newspaper/Magazines Billboards Internet

6. Where do you gather the reliable information for purchasing a two wheeler quite often? Friends Internet Automotive magazines Company dealers

pg. 96 7. What are the factors which motivate you most while purchasing a two wheeler? Discount rate EMI Resale value Allowances Others

8. Which price range do you prefer most? 30-40 40-50 50-60 60-70 70-80 >90

9. Rate the following factors in a bike on the scale 1-7, based on your preference? (Where 1 is least preferred and 7 most preferred.)tick mark.

Sn. Factor 1 2 3 4 5 6 7 1. Price 2. Fuel efficiency 3. Performance 4. Safety and comfort 5. Design and style 6. Brand value 7. After sales service and support 10.Do you verify or crosscheck the information provided in the commercials of two wheelers ? Yes No

PERSONAL INFORMATION

Name Gender

pg. 97 Age Occupation Income Marital status Qualification Contact number

pg. 98 pg. 99