Project Report On Comparative study Of Hero Honda Motorcycles and Bajaj Motorcycles
UNDER GUIDANCE Mr. (Submitted in partial fulfillment of the requirement for the degree) MASTER OF BUSINESS ADMINISTRATION (MARKETING) 2008-2011 Jyoti Parkash SUBMITTED BY BBA- 6th SEM. Roll No.-80907320015
Dr. I.T. BUSINESS SCHOOL
BANUR CERTIFICATE
It is certified that the project work entitled “Comparative Study Of Hero Honda Motorcycles & Bajaj Motorcycles” done by Jyoti Parkash to be submitted to Dr. I.T. BUSINESS SCHOOL in Partial fulfillment of the requirement of the reward of the degree of MASTER OF BUSINESS ADMINISTRATION (Marketing) has been carried out under my guidance and supervision.
PROJECT GUIDE: Mr. Bhart Bhushan Lecturer,
Dr. I.T. Business School ACKNOWLEDGEMENT
With deep sense of gratitude I would like to take this opportunity to thank my honorable project guide Mr.Bhart Bhushan (Lect), Dr.I.T. Business School, who has always been a sincere advisor and inspiring force behind this report. He has been extremely generous with his time and rendered me all possible help to seek this work complete. I could not have asked for more co-operative guide, his invaluable support has always given me the confidence to do hard work. Without his guidance this project report would not have been light of the day. I would also like to thank my friends who were of immense help to me. I would thank all the respondents who gave their invaluable time during the survey. Last but not least I would like to thank my parents, their support throughout the making of this report.
(Jyoti Parkash)
CONTENTS
1. Indian Motorcycle Industry
2. Hero Honda Motor Limited. 2.1 Introduction. 2.2 History. 2.3 Company Profile 2.4 Hero Honda’s Mandate 2.5 Group Companies. 2.6 Products. 2.7 Social Responsibility. 2.8 Key Milestone of Hero Honda.
3. Bajaj Auto Limited. 3.1 Introduction. 3.2 History. 3.3 Company Profile. 3.4 Bajaj Mandate. 3.5 Group Companies. 3.6 Products. 3.7 Social Responsibility. 3.8 Key Milestone of Bajaj Auto Limited.
4. Consumer Behavior. 4.1 Introduction. 4.2 Consumer Decision Making Process. 4.3 Factors Affecting the Motorcycle Purchase.
5. Objective of Study.
6. Research Methodology.
7. Finding.
8. Conclusion.
9. Suggestions.
10. Bibliography.
11. Questionnaire. 1. INDIAN MOTORCYCLE
INDUSTRY
1. INDIAN MOTORCYCLES INDUSTRY
Motorcycles have come a long way since they were first introduced in the country way back in the 1950s. The Indian government had got the first set of these mean machines from the Royal Enfield Company of UK for its' Army and Police to patrol the border highways on the rough and tough terrain of the West. Today these sets of two wheelers not Only cater to the men in uniform, but also common people who have different needs and expectations from their motorcycles. Today motorcycle companies are taking special care to make their products more user friendly comfortable, safe, and ergonomic without compromising on the fun and thrills of riding. Some bikes like the hero Honda Karizma can touch speeds up to 125kmph thus truly satisfying the riders need for speed. motorcycles have also invaded the Hindi film industry where Bollywood heart throbs like John Abraham, Hrithik Roshan , Uday Chopra and Fardeen Khan are seen setting the roads on fire with their set of two wheels. Thus the trend of motorcycles have caught up with the average Indian and there a bike to suit everyone's needs and usage. Premium Segment bikes like the hero Honda Karizma and Bajaj Pulsar provides the Generation a chance to emulate their idols on screen. These motorcycles come with 5 speed gear box and disc brakes to provide one the extra throttle with the adequate safety measure. These motorcycles also come with factory fitted allow wheels to provide the extra strength and stability. India has a burgeoning middle class, which means that value for money bikes like the hero Honda splendor, Bajaj “Discover” have retained their importance with every passing day. These bikes are a hit among the office goers and small time business men who demand maximum output from their two wheelers. Motorcycles like the hero Honda splendor come in a wide range of colors and give an average mileage of 70 km per liter. The entry level segment of motorcycles also has a cut throat competition with the two wheeler manufacturers trying to outdo each other by providing that extra edge in economy biking. Some of the bikes which are available at the entry level include the Hero Honda CD Dawn, and Bajaj CT 100. If you are planning to buy a motorcycle, now is the right time. You couldn’t have bargained for better deals as a new price war has been unleashed in the market by the leading motorcycle manufacturers and the prices have hit an all time low. Walk into any bike showroom, not only you will get a red carpet welcome but you will be surprised by the offers: huge discounts, zero per cent finance, free insurance, free accessories, etc, etc. As the bike makers are offering a variety of stylish and technologically advanced vehicles.
The motorcycle is being increasingly used by youngsters/bachelors in urban areas and by rural folk as a sturdy means of personal transportation. Bigger wheels, better road grip, higher ground clearance, power, fuel efficiency, low maintenance cost are the major attraction of this segment. In the last two years, the motorcycle segment has witnessed the launch of several new models from existing players. Majority of these have been in the four-stroke engine category for which the technology has come from Japanese parents. Increasing product differentiation and competition has resulted in new sub-segments emerging. The efficiency segment is currently the fastest growing and constitutes four- stroke motorcycles. This has caused a dent in the demand for two-stroke motorcycles, which is expected to further drop in the future. Taking in to consideration the limited availability of mass transportation in rural and semi-urban areas and suitability of motorcycles to these conditions, there are better chances of growing the Motorcycle segment in the future.
The major growth in motorcycle segment will be coming from Japanese segment and in particular four-stroke motorcycles, leading to marginalization of Indian motorcycles. The Japanese motorcycles will continue to improve penetration in the rural areas by providing additional features like luggage carrying provision etc. The rush of new models in the small car market combined with up gradation of small car users to new mid-size cars has lead to sharp drop in prices of second hand cars. In some cases the price of a second hand car is just twice the price of a brand new motorcycle. This will accelerate shift of two-wheeler users to cars and hence affect the demand for high-end motorcycles. Therefore, in the coming years the high end motorcycle manufacturers will have to take into consideration prices of second hand cars, while positioning the vehicle. Nearly 80% of the motorcycle sales are of Japanese motorcycles with the rest coming from Indian motorcycles. Eight major players Hero Honda Motors Ltd, Bajaj Auto Ltd, LML, Kinetic Motors Limited, Escorts Yamaha Motors Ltd, TVS LTD, Suzuki Motors and Royal Enfield control the Indian Motorcycle industry. Among this Hero Honda is the market leader in the Motorcycle segment with healthy market share of 48%, followed by the Bajaj Auto with market share of around 29%. There is a full dominance of two players Hero Honda and Bajaj Auto at present in the Indian Motorcycle industry The manufacturers of Motorcycle manufacturer distinguish there products based on power, fuel efficiency, maintenance requirement, Looks, style, Comfort, price etc
The Indo-Japanese segment is catered by three to five models from each of the players viz Bajaj Auto Ltd., Hero Honda, TVS, and Escorts Yamaha. But majority of the sales is of 100cc-125cc vehicles. The motorcycle segment will be broadened on the high price front by introducing high powered bikes priced above Rs55000. These bikes have been targeted at college going students who have a flavor for high-powered rides. To cater to this segment, Hero Honda launched CBZ, a 156cc four-stroke motorcycle, in March 1999.
It is priced around Rs 49000. 'Fiero' from TVS has been the one addition in this list. Bajaj Auto is with its 220cc d pulsar, competition will hot up in the Japanese motorcycle segment with players like LML and Kinetic Motors standing ready with their offerings. THE fiscal year ended March 2007. May have been particularly good for the stock market, also for two-wheeler stocks. The market's affinity for two-wheeler stocks - Bajaj Auto, Hero Honda and TVS Motor is explained by the robust demand for motorcycles.
More players are jostling for space in the market. Global majors — Honda and Kawasaki already have a presence in the Indian market through their local technological partners, while Yamaha has a full-fledged production base in India.Suzuki, the other global major, which recently severed its ties with TVS Motor Company, has now decided to set-up manufacturing facilities in the country. Apart from international companies, there is growing competitive pressure from existing domestic producers as well.
2. HERO HONDA MOTORS LIMITED
2. Hero Honda Motors Limited
2.1 Introduction
Hero Honda has a reputation of being the most fuel-efficient and the largest selling Indian motorcycle. Its commitment of providing the customer with excellence is self-evident. A rich background of producing high value products at a reasonable price led the world's largest manufacturer of motorcycles to collaborate with the world's largest bicycle manufacturer.
It was this affinity in working cultures of Honda Motor Company of Japan and the Hero Group that resulted in the setting up of Hero Honda Motors Ltd. A relationship so harmonious that Hero Honda has managed to achieve indigenization of over 95 percent, a Honda record worldwide. Tactical promotions and excellent marketing helped Hero Honda establish itself as an intelligent purchase. Its unique features like fuel conservation, safety riding courses and mobile workshops helped the group reach in the interiors of the country. Finance services helped facilitate purchase, as did an efficient dealer network across the country.
Well-entrenched in the domestic market, Hero Honda Motors Ltd. turned its attention overseas, and exports have been steadily on the rise. Over the years, the Company has received its share of accolades, including the National Productivity Council's Award (1990- 91), and the Economic Times - Harvard Business School Association of India Award. Hero Honda Motors Ltd is the World's largest manufacturer of motorcycles (by quantity). Hero Honda is a 50:50 joint venture that began in 1984 between the Hero group of India and Honda from Japan. It has been the world's biggest manufacturer of 2-wheeled motorized vehicles since 2001, when it produced 1.3 million motorbikes in a single year. Hero Honda's Splendor is the world's largest selling motorcycle. Its 2 plants are in
Dharuhera and Gurgaon, both in India. Third plant at Haridwar, Uttranchal is also under commissioning stage & will start production by April, 2008. It will have world class production facilities like Lean Manufacturing concept, more flexible lines & Stream line material flow, within & proximity (Planning to set vendors in nearby location constituting HHML Park). It specializes in dual use motorcycles that are low powered but very fuel efficient.
2.2 History
The success of the Hero Group lies in the determination and foresight of the Munjal brothers, who shared their vision with their workers and led the Group to a position where its name has become synonymous with top-quality two wheelers. The flame kindled by the Munjal brothers in 1956 with the flagship company Hero Cycles; Mr. Satyanand Munjal, Mr. Brijmohan Lall Munjal and Mr. O. P. Munjal continue to carry the torch and are actively involved in the day-to-day operations of the Hero Group.
The saga is being continued with the same zeal by the second and third generations of the family and by the large working force of the Hero Group.
The spirit of enterprise which dominates the progress of the Group is characteristic of the land where it all began - the City of Ludhiana, in Punjab - home to some of lndia's finest workers and entrepreneurs. The Hero Group is a thriving example of three generations of a family working and striving together to ensure quality, satisfaction and extensive growth. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108.
Growth
Hero Honda experienced great growth throughout its early days. The Munjal family started a modest business of bicycle components. By 2002 Hero Group had sold 86 million bicycles producing 16000 bicycles a day. Today Hero Honda has an assembly line of nine different models of motorcycles available. It holds the record for most popular bike in the world by sales for Its Splendor model. Hero Honda Motors Limited was established in joint venture with Honda Motors of Japan in 1984, to manufacture motorcycles. It is currently the largest producer of Two Wheelers in the world. It sold 3 million bikes in the year 2005- 2006. Recently it has also entered in scooter manufacturing, with its model PLEASURE mainly aimed at girls.
The growth of the Group through the years has been influenced by a number of factors discussed below.
Just-in-Time Manufacturing
The Hero Group through the Hero Cycles Division was the first to introduce the concept of just-in-time manufacturing. The Group boasts of superb operational efficiencies. Every assembly line worker operates two machines simultaneously to save time and improve productivity. The fact that most of the machines are either developed or fabricated in- house, has resulted in low inventory levels. In Hero Cycles Limited, the just-in-time inventory principle has been working since the beginning of production in the unit. This is the Japanese style of production. In India, Hero is probably the only company to have mastered the art of the just-in-time inventory principle.
Ancillarisation
An integral part of the Group strategy of doing business differently was providing support to ancillary units. There are over 300 ancillary units today, whose production is dedicated to Hero's requirements and also a large number of other vendors, which include some of the better known companies in the automotive segment.
Labor relations
In Hero Group there is no organized labor union and family members of employees find ready employment within Hero. The philosophy with regard to labor management is "Hero is growing, grow with Hero." Hero workers receive a uniform allowance, as well as House Rent Allowance (HRA) and Leave Travel Allowance (LTA).
Extra benefits include medical check-ups not just for workers, but also for the immediate family members. For the majority of the production workers, who are hired through contractors, these benefits are out of reach. This and other problems lead to a strike and factory occupation by 4,000 temp workers in the Gurgaon plant in spring 2006.
Diversification
Throughout the years of enormous growth, the Group Chairman, Mr. Lall has actively looked at diversification. A considerable level of vertical integration in its manufacturing activities has been ample in the Group's growth and led to the establishment of the Hero Cycles Cold Rolling Division, Munjal and Sunbeam Castings, Munjal Auto Components and Munjal Showa Limited amongst other component-manufacturing units.
Then there were the expansion into the automotive segment with the setting up of Majestic Auto Limited, where the first indigenously designed moped, Hero Majestic, went into commercial production in 1978. Then came Hero Motors which introduced Hero Puch, in
collaboration with global technology leader Steyr Daimler Puch of Austria. Hero Honda Motors was established in 1984 to manufacture 100 cc motorcycles.
The Hero Group also took a venture into other segments like exports, financial services, information technology, which includes customer response services and software development. Further expansion is expected in the areas of Insurance and Telecommunication.
The Hero Group's phenomenal growth is the result of constant innovations, a close watch on costs and the dynamic leadership of the Group Chairman, characterized by a culture of entrepreneurship, of right attitudes and building stronger relationships with investors, partners, vendors and dealers and customers.
2.3 Company profile
Founder Munjal Brothers: Mr. Satyanand Munjal, Mr. Brijmohan Lall Munjal and Mr. O. P. Munjal. Year of 1984 (The Hero Group was established in 1956) Establishment Mission "Its our mission to strive for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of our customers. While doing so, we maintain the highest standards of ethics and societal responsibilities." - Mr. Brijmohan Lall Munjal, Chairman & MD Foundational Work Before the establishment of the Hero Group in 1956, Munjal Brothers use to manufacture bicycle components in the early 1940's. Industry Automotive - Two Wheelers Business Group The Hero Group Capitalization Hero Group - 26% Ratio Honda Motor Co., Ltd. - 26% Others - 48% (listing) Listings & its BSE - Code: 500182 codes NSE - Code: HERO HONDA Bloomberg - Code: HH@IN No. of Sales 1500+ Outlets Joint Venture The Hero Group (India) with Honda Motor Co., Ltd. (Japan) Registered & 34, Community Centre Corporate Office Basant Lok, Vasant Vihar New Delhi - 110057 Tel.: +(91)-(11)-26142451 - 59 Fax: +(91)-(11)-26143321 / 3198 / 1830; 26152453 / 2132 Work Station 69 Km Stone New Delhi-Jaipur Highway Daruhera - 121106, Haryana Website www.herohonda.com www.herogroup.com
2.4 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.
BOARD OF DIRECTORS
No Name of the Category of Directors Directorship 1 Mr. Brijmohan Lal Munjal Chairman & Whole- time Director 2 Mr. Pawan Munjal Managing Director 3 Mr. Toshiaki Nakagawa Joint Managing Director 4 Mr. Yutaka Kudo Whole time Director 5 Mr. Om Prakash Munjal Non-executive Director 6 Mr. Sunil Kant Munjal Non-executive Director 7 Mr. Tatsuhiro Oyama Non-executive Director 8 Mr. Masahiro Takedagawa Non-executive Director
9 Mr. Takashi Nagai Director Non-executive & Independent Director 10 Mr. Narinder Nath Vohra Non-executive & Independent Director 11 Mr. Pradeep Dinodia Non-executive & Independent Director 12 Gen.(Retd.) Ved Prakash Non-executive & Malik Independent Director 13 Mr. Analjit Singh Non-executive & Independent Director 14 Dr. Pritam Singh Non-executive & Independent Director 15 Ms. Shobhana Bhartia Non-executive & Independent Director 16 Dr. Vijay Laxman Kelkar Non-executive & Independent Director
BRIEF PROFILE OF DIRECTOR: MR. BRIJMOHAN LALL MUNJAL
Mr. Brijmohan Lall Munjal is the founder Director and Chairman of the Company and the $ 2.8 billion Hero Group. He is the Past President of Confederation of Indian Industry (CII), Society of Indian Automobile Manufacturers (SIAM) and was a Member of the Board of the Country's Central Bank (Reserve Bank of India). In recognition of his country.
Mr. Brijmohan Lall Munjal is currently on the board of the following companies Mr. Lall was conferred the Padma Bhushan Award by the Union Government.
1923 Born Kamalia, Pakistan
Occupatio Chairman n
Salary INR 11.71 crore
Net worth $ 1.2 Billion
Children 4
Website www.herogroup.com
Dr. Brijmohan Lall Munjal is founder of The Hero Group which owns Hero Honda Motors 2.5 Group Companies
No. Name of Company 1 Hero Honda Motors Limited 2 Hero Cycles Limited 3 Hero Honda Finlease Limited 4 Munjal Showa Limited 5 Sunbeam Auto Limited 6 Easy Bill Limited 7 Hero Financial Services Limited 8 Munjal Auto Industries Limited 9 Shivam Autotech Limited
CHANGES IN BOARD OF DIRECTORS DURING 2008-09
No. Name Designation Date Status
1 Mr. Takao Eguchi Whole-time Director 01-April-07 Resigned
2 Mr. Yutaka Kudo Whole-time Director 01-April-07 Appointed
3 Mr. Tatsuhiro Oyama Non-executive Director 11-May-07 Resigned
4 Mr. Takashi Nagai Non-executive Director 11-May-07 Appointed 2.6 Products
Hero Honda Motors Limited is currently manufacturing the following models of two wheelers:
Bikes
• Hero Honda CD Super Dawn
• Hero Honda CD Deluxe
• Hero Honda Splendor
• Hero Honda Splendor+
• Hero Honda Passion
• Hero Honda Passion Plus
• Hero Honda Glamour
• Hero Honda Glamour-FI
• Hero Honda Achiever
• Hero Honda Karizma
• Hero Honda CBZ
• Hero Honda CBZ* (pronounced CBZ-Star)
• Hero Honda CBZ X-Treme • Hero Honda Karizma R
Scooters
• Hero Honda Pleasure
2.7 Social Responsibility:
Hero Group's humane approach is manifest in all aspects of commercial production. The Group undertakes various projects and activities of socio-humanitarian nature to contribute to the National Mainstream. Group Companies, Hero Cycles Limited and Hero Honda Motors Limited has been pioneers within the Group, in undertaking socially productive-work-of-myriad.
Healthcare:
Raman Munjal Memorial Hospital is a 100-bed hospital with a well-equipped laboratory, a fully functional operation theatre, an out patient department as well as a casualty section. A fully equipped mobile clinic provides comprehensive health care to the rural masses. The medical centre on the factory premises of the Group Companies is open for the sub- urban and rural communities of the surrounding areas. The medical centre is also equipped to provide First Aid and ambulance facility for road accident victims.
Other efforts, under the auspices of Hero Honda Motors Limited include:
Eye Camps: With over 15,000 patients examined and about 1700 cataract operations performed so far, these Eye Camps have also aided patients with free accommodation, food and medicines. Family Planning Camps: Held since 1993 at the Civil Hospital, Rewari and Bawal, these camps offer monetary incentives to the masses to adopt family planning measures. Blood Donations Camps: These camps are being organised on a regular basis since 1992. 464 units have been donated to Indian Red Cross Society in the last camps.
ENT Check up Camps: Conducted by specialists from AIIMS, these camps have been organized-since-November-1997. Heart Check-up Camps: Since July 1988, free camps are being organized in collaboration with Escorts Heart Institute and Research Centre, where specialized diagnosis methods like Echocardiography and ECG are used.
Rehabilitation Camps: Conducted with the assistance of the District Rehabilitation Centre, Red Cross Society, Rewari, these camps help physically challenged villagers to rehabilitate and re-employ themselves. Many patients have found a new lease of life on account of the physical-aids-given-to-them. Dermatology Camps: Held for the first time in October 1999, the camp saw around 460 patients, where 365 patients underwent treatment for various skin ailments. Furthermore, three Acupressure camps were also held in January 2000 where 450 persons were offered treatment-and-advice. School Health Programmes: The Raman Munjal Vidya Mandir was the first school to participate in this programme. Students underwent annual medical check up to detect nutritional deficiencies and were advised on improving and monitoring personal hygiene, immunisation as well as prevention & control of communicable diseases. Immunisation Programmes: All Hero Honda employees and their families benefit from immunisation programmes for Hepatitis and Typhoid fever. More than 6,000 people have been immunised so far. The company is also an active participant in the National Pulse Polio-immunisation-programmes. In-house Health Activities: The company takes a keen interest in the welfare of its employees with the dissemination of health information among them by means of lectures, group sessions, printed material, audio visual aids, display boards, etc. AIDS Awareness Programmes: In association with CIL Hero Honda has done immense work to promote awareness about AIDS. Education:
The Raman Kant Munjal Trust fund, instituted in 1992, has helped set up a primary school in Dharuhera. Today the Raman Kant Munjal Vidya Mandir has grown into one of the best senior secondary schools in Daruhera. The school is affiliated to the Central Board of Secondary Education.
Engineering:
Innovative engineering for Hero Honda means using the right and specifically designed technology that meets the Indian consumer's requirements as well as testing road conditions. This is exemplified by Honda's reliable 4 stroke engines and their amazing fuel efficiency. No wonder then, that Hero Honda has manufactured 4-stroke engines ever since its inception in 1985. Hero Honda has received ISO 14001 certification for Environmental Conservation.
Environment:
Hero Group Companies have strived to provide environmental friendly products as well as manufacturing units. Hero Honda's "We Care" programme was initiated with a focus on environmental conservation and awareness, and now extends its influence to multi- dimensional activities, for the socio-economic betterment of society. The 4-stroke Hero Honda motorcycles undergo a high technology process to meet the most demanding of pollution norms at every level. Hero mopeds and motorcycles having the lowest pollution emission levels in their categories on Indian roads Year Event
1983 Joint Collaboration Agreement with Honda Motor Co., Ltd., Japan signed. 2.8 KEY Shareholders Agreement signed MILESTONES OF HERO HONDA 1984 Hero Honda Motors Ltd. Incorporated
Hero Honda success 1985 First motorcycle "CD 100" rolled out saga contains an element of spirit and 1987 100,000th motorcycle produced enterprise; of achievement through 1989 New motorcycle model - "Sleek" introduced grit and determination, coupled with vision and 1991 New motorcycle model - "CD 100 SS" meticulous planning. introduced 500,000th motorcycle produced
1992 Raman Munjal Vidya Mandir inaugurated - A School in the memory of founder Managing Director, Mr. Raman Kant Munjal
1994 New motorcycle model - "Splendor" introduced
1,000,000th motorcycle produced
1995 Hero Corporate Services Limited as the service segment for the Hero Group Companies, ancillaries, suppliers, dealers and other associates 3. 1996 Hero Winner, a large-wheeled scooter was introduced by Hero Motors Limited with a choice BAJAJ of 50 cc and 75 cc engines. AUTOS 1997 New motorcycle model - "Street" introduced Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated
1998 2,000,000th motorcycle produced LIMITED
3. BAJAJ AUTO LIMITED
3.1 Introduction
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 in Pune, Maharashtra, with plants in Waluj near Aurangabad, Akurdi and Chakan, near Pune. Bajaj Auto makes and exports motorscooters, motorcycles and the auto rickshaw.
The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946. Over the last decade, the company has successfully changed its image from a scooter manufacturer to a two wheeler manufacturer. Its product range encompasses Scooterettes, Scooters and Motorcycles. Its real growth in numbers has come in the last four years after successful introduction of a few models in the motorcycle segment.
The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.
3.2 Company's history
Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading Corporation Private Limited. 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. In 1970, it rolled out its 100,000th vehicle. In 1977, it managed to produce and sell 100,000 vehicles in a single financial year. In 1985, it started producing at Waluj in Aurangabad. In 1986, it managed to produce and sell 500,000 vehicles in a single financial year. In 1995, it rolled out its ten millionth vehicle and produced and sold 1 million vehicles in a year.
3.3 Company Profile
Founder Jamnalal Bajaj Year of 1926 Establishment Industry Automotive - Two & Three Wheelers Business Group The Bajaj Group Listings & its BSE - Code: 500490; NSE - Code: BAJAJAUTO codes Presence Distribution network covers 50 countries. Dominant presence in Sri Lanka, Bangladesh, Columbia, Guatemala, Peru, Egypt, Iran and Indonesia. Joint Venture Kawasaki Heavy Industries of Japan Registered & Head Akurdi Office Pune - 411035 India Tel.: +(91)-(20)-27472851 Fax: +(91)-(20)-27473398 Works • Akurdi, Pune 411035 • Bajaj Nagar, Waluj Aurangabad 431136
Chakan Industrial Area, Chakan, Pune 411501 E-mail [email protected] Website www.bajajauto.com
3.4 BAJAJ`S MANDATE
ABOUT BOARD OF DIRECTORS Name Designation Rahul Bajaj Chairman Madhur Bajaj Vice Chairman & Whole-Time Director
Rajiv Bajaj Managing Director 3.5 Sanjiv Bajaj Executive Director Group D.S. Mehta Whole-Time Director Companies Kantikumar R. Director Podar
Bajaj Auto is Shekhar Bajaj Director the flagship of the Bajaj D.J.Balaji Rao Director group of companies. J.N. Godrej Director The group S.H. Khan Director comprises of Mrs. Suman Director Kirloskar 26 companies and was Naresh Director Chandra founded in the year 1926. Nanoo Director Pamnani The companies in Manish Director Kejriwal the group are: P Murari Director Niraj Bajaj Director Bajaj Auto Ltd. Mukand International Ltd. Mukand Ltd. Mukand Engineers Ltd. Bajaj Electricals Ltd. Mukand Global Finance Ltd
Bajaj Hindustan Ltd Bachhraj Factories Pvt. Ltd Maharashtra Scooters Ltd. Bajaj Consumer Care Ltd. Bajaj Auto Finance Ltd. Bajaj Auto Holdings Ltd. Hercules Hoists Ltd. Jamnalal Sons Pvt. Ltd. Bajaj Sevashram Pvt Ltd. Bachhraj & Company Pvt. Ltd.
Hind Lamps Ltd. Jeevan Ltd. Bajaj Ventures Ltd. The Hindustan Housing Co Ltd.
Bajaj International Pvt Ltd. Stainless India Ltd. Hind Musafir Agency Pvt Ltd. Bombay Forgings Ltd.
Bajaj Allianz General Insurance Bajaj Allianz Life Insurance Company Ltd. Company Ltd.
3.6 Products
Some of the models that Bajaj makes (or has made) are: Scooters Bajaj Kristal DTSi
Motorcycle (Presently available in market) Bajaj Avenger Bajaj CT 100 Bajaj Discover Bajaj Discover DTSi Bajaj Platina Pulsar: Pulsar 180 DTS-i UG Pulsar 150 DTS-i UG Pulsar 200 Cc Pulsar 220 DTS-Fi
Upcoming Models Bajaj Blade Bajaj Sonic Pulser135Cc Discontinued Models
Bajaj Sunny
Bajaj Chetak
Bajaj Cub
Bajaj Super
Bajaj Wave
Bajaj Legend
Bajaj Bravo
Kawasaki Eliminator
Bajaj Kawasaki Wind 125
Bajaj Kawasaki 4s Champion
Bajaj Kawasaki KB 100 RTZ
Bajaj Boxer
Bajaj Caliber
3.7 SOCIAL RESPONSIBILY Bajaj in the community: Bajaj Auto is committed to nation-building and contributing to the uplift and development of the weaker sections of society. This is a legacy of our founders, Jamnalal and Kamalnayan Bajaj. Because of their close links with Mahatma Gandhi and the freedom struggle, they sincerely believed that as businessmen they were trustees of the community and the profits they earned must be ploughed back for the development of the community.
• Jankidevi Bajaj Gram Vikas Sanstha (JBGVS)
• Samaj Seva Kendra
• Kamalnayan Bajaj Hospital
Jankidevi-Bajaj-gram-Vikas-Sanstha-(JBGVS): Bajaj Auto’s philanthropic activities among the rural poor are carried out by a trust, the Jankidevi Bajaj Gram Vikas Sanstha (JBGVS). This trust was formed 15 years ago by Ramakrishna Bajaj in memory of his mother, Jankidevi Bajaj. JBGVS acts as a catalyst to development at the grass root level in 32 villages around Bajaj Auto’s Pune and Aurangabad plants.
Vision-Statement-of-JBGVS: JBGVS is a non-political and secular organization, which strives to improve the quality of life of the rural poor by creating self employment opportunities at the grass-root level, through the use of appropriate technologies, in harmony with nature. Samaj-Seva-Kendrass: Social activities in semi urban areas on the outskirts of Pune are undertaken by the Samaj Seva Kendra (SSK), set up by Bajaj Auto in 1975. SSK provides local industrial workers with opportunities for self development, education, healthcare, sports and recreation. It involves local institutions and municipal bodies, local Rotary Clubs and NGOs in its activities. SSK has helped empower wives of factory workers by providing them earning opportunities. Last year, its Laxmi Mahila Cooperative Credit Society (started in 1990) earned Rs 1 Lakh by supplying chapattis, prepared by its members, to industrial canteens. SSK also organises weekly medical consultation and health awareness programmes, child and adult education, vocational training and personality development programmes, leisure and recreational facilities for women.
Kamalnayan Bajaj Hospital: A modern, 135-bed hospital at Aurangabad in Western Maharashtra, the Kamalnayan Bajaj Hospital provides high-quality secondary and tertiary healthcare and specialist facilities under one roof.
Its panel of renowned full-time consultants provides comprehensive multi-specialty care and advanced surgical procedures such as coronary artery bypass, beating heart graft surgeries, joint replacements, complex neurosurgical procedures, kidney transplants. The hospital's well-designed suite of five operation theatres is equipped to cater to complex surgical procedures.
The hospital has state-of-the-art facilities like a cardiac catheterisation lab, advanced spiral computer topography (CT) scanner, a colour Doppler — all from GE Medical Systems — a Mac 5000-series stress test machine, a holter monitor from GE-Marquette, ultra-touch dialysis equipment from Baxter and an advanced reverse osmosis plant.
A well-equipped, 26-bed multi-specialty intensive care unit (ICU) provides emergency and post-operative care that is on par with the best in the country. The hospital has a critical-care ambulance (a hospital on wheels) with a defibrillator, portable ventilator, pulse oximeter, ECG machine and Glucometer. The ambulance is attended round the clock by a physician, a nurse and support team of qualified paramedics.
The hospital’s facilities range from spacious and hygienically maintained general wards with all essential amenities to large deluxe rooms furnished with sofas, telephones, refrigerator, television and a small kitchenette. For relatives of patients, the hospital provides guesthouse-facilities-and-a-professionally-managed-cafeteria. . The large hospital campus with its wide open spaces, pleasing landscape, ample parking are meticulously maintained. The hospital offers a specially designed health insurance and annual medical check-up plan in association with Bajaj Allianz General Insurance, which provides cash-less hospitalization and treatment.
3.8 KEY MILESTONES OF BAJAJ AUTO LIMITED Year Milestones 2007 April Bajaj Auto Commissions New Plant at Pantnagar, Uttarakhand February 200 cc Pulsar DTS-i launched January Bajaj Kristal DTS-i launched 20066 April Bajaj Platina launched 2005 December Bajaj Discover launched June Bajaj Avenger DTS-i launched February Bajaj Wave DTS-i launched 42004 October Bajaj Discover DTS-i launched August New Bajaj Chetak 4 stroke with Wonder Gear launched May Bajaj CT100 Launched January Bajaj unveils new brand identity, dons new symbol, logo and brandline 32003 October Pulsar DTS-i is launched July Bajaj Wind 125,The World Bike, is launched in India. February Bajaj Auto launched its Caliber115 "Hoodibabaa!" in the executive motorcycle segment. 12001 November Bajaj Auto launches its latest offering in the premium bike segment ‘Pulsar’ January The Eliminator is launched 02000 The Bajaj Saffire is introduced. 1999 Caliber motorcycle notches up 100,000 sales in record time of 12 months Production commences at Chakan plant. 81998 June 7th Kawasaki Bajaj Caliber rolls out of Waluj. July 25th Legend, India’s first four-stroke scooter rolls out of Akurdi. October Spirit launched 1997 The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw are introduced 1995 November Bajaj Auto is 50. 29 Agreements signed with Kubota of Japan for the development of diesel engines for three-wheelers and with Tokyo R&D for ungeared Scooter and moped development The Bajaj Super Excel is introduced while Bajaj celebrates its ten millionth vehicle One million vehicles were produced and sold in this financial year. 1994 The Bajaj Classic is introduced. 1991 1991 The Kawasaki Bajaj 4S Champion is introduced 11990 The Bajaj Sunny is introduced. 1986 1986 The Bajaj M-80 and the Kawasaki Bajaj KB100 motorcycles are introduced 500,000 vehicles produced and sold in a single financial year. 61985 November The Waluj plant inaugurated by the erstwhile President of 5 India, Shri Giani Zail Singh Production commences at Waluj, Aurangabad in a record time of 16 months 1984 1984 January Foundation stone laid for the new Plant at Waluj, Aurangabad 19 1981 1981 The Bajaj M-50 is introduced. 71977 The Rear Engine Autorickshaw is introduced Bajaj Auto achieves production and sales of 100,000 vehicles in a single financial year 61976 The Bajaj Super is introduced 1975 BAL & Maharashtra Scooters Ltd. joint venture
71972 The Bajaj Chetak is introduced. 11971 The three-wheeler goods carrier is introduced 1970 Bajaj Auto rolls out its 100,000th vehicle 11960 Bajaj Auto becomes a public limited company. Bhoomi Poojan of Akurdi Plant 41959 Bajaj Auto obtains licence from the Government of India to manufacture two- and three-wheelers 41948 Sales in India commence by importing two- and three- wheelers. 4. CONSUMER BEHAVIOUR
4. CONSUMER BEHAVIOR 4.1 Introduction
The actions a person takes in purchasing and using products and services, including the mental and social processes that precede and follow these actions. The behavioral sciences help answer questions such as:
Why people choose one product or brand over another, how they make these choices, and how companies use this knowledge to provide value to consumers.
Psychology + Marketing = Consumer Behavior
Consumer Behavior is defined as "the dynamic interaction of affect and cognition, behavior, and environmental events by which human beings conduct the exchange aspects of their lives." More generally, Consumer Behavior is the psychology behind Marketing and the behavior of consumers in the Marketing environment. Two major psychological disciplines come into play when observing and trying to explain Consumer Behavior. The first is Cognitive Psychology. Cognitive Psychology is the study of all knowledge related (mental) behaviors. The Attention, Perception ,Memory/Comprehension, and Decision Making links on this website are the various aspects of cognitive psychology that play an important role in Consumer Behavior. The second psychological discipline that has theories to explain certain phenomenon of Consumer Behavior is Social Psychology. Social Psychology is "the study o the manner in which the personality, attitudes, motivations, and behaviors of the individual influence and are influences by social groups. The Affect and Social Influence and Reference Groups links are two important topics studied in social psychology that have an important impact on Consumer Behavior.
A consumer is a living bundle or needs and to a great extent he dictates the nature of products to be made, distribution channels to be used and prices. It is paramount for the marketers to know the consumer needs and wants and what he is ready to pay for them. This helps in deciding about the marketing mix i.e. product, price, place and promotion. The study of consumer behaviour offers the marketers an insight into the purchase decision-making process. Accordingly, he can chalk out a strategy so as to reap maximum benefit from it.
4.2 CONSUMER DECISION-MAKING PROCESS
Problem Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post Purchase Behaviour
Five stage model of Consumer Buying Process
Problem Recognition: -
The starting point of consumer buying process is the Problem recognition. Problem recognition is the awareness of the want or a desire or a consumption problem without whose satisfaction the consumer feels restless and tension charged i.e. he or she feels that a desire or want has arisen, which has to be satisfied.
Information Search: - A need aroused and recognized can be satisfied only when the product or service is available. Consumer interest is indicated in the consumer’s willingness to seek further information about product or service. Since there are varieties of products and he seeks to have maximum satisfaction, he searches relevant information. Consumers have many alternative sources of information to tap such as friends, relatives, neighbors, salesman, dealers, advertisements etc.
Evaluation of Alternatives: -
Its consumer’s deep interest in the product or service that paves the way for evaluation. The evaluation is the stage of the mental trial of the product. Once he evaluates, he develop the intention to accept or reject a given product or service. The final purchase depends on the relative strength of the positive intention to buy. In evaluation of alternatives many values are taken into consideration like product characteristics, brand image etc.
Purchase Decision: -
It’s the positive intention of the consumer that leads to a purchase decision. Decision to purchase implies consumer commitment for a product or a service. Practically it is the stage in which consumer is taken into a purchase of the product which is selected by the consumer in the earlier stages.
Post Purchase Behavior: -
Post purchase behaviour reaction stands for the behaviour of a consumer after a commitment to product has made. This post purchase behaviour may be a set of positive or negative feelings. Positive feelings go toward satisfaction and negative feelings go for dissatisfaction
4.3 FACTORS AFFECTING THE MOTORCYCLE PURCHASE The motorcycle purchase decision is affected by the personality and life style of an individual as well as the product features. On the basis of this they can be divided personal into personal and product factors. o Personal Factors: -Personal factors are related to individual traits and personality characteristics. They differ form person to person and affect the consumer perception, motivation and attitude formation. o Product Factors:-Product characteristics affect the final purchase decision of the consumer / buyer. Before purchasing any buyer or customer gives due consideration to its physical characteristics and the services provided.
1. Availability of Finances: -This factor has a strong bearing on the purchase decision. An individual will first of all analyze the available resources including his income and saving. If these fall short of the required amount, he will have to ascertain the sources of finance open to him (example installment payment; zero% loans by various banks and companies etc.)
2. Product Features: A consumer is affected by the product characteristics its, Looks. Pick Up, Fuel Efficiency etc. this known as “effective appeal” There can be emotional for a particular purchase decision. An individual may opt for a particular brand if he thinks it adds to his prestige. This is known as “symbolic appeals”
3. Brand Image: There is cut throat competition in the motor cycle market. The leaders in this arena are Hero Honda and Bajaj. Brand preference and consumer regarding quality; looks distribution networks, after sale services and supporting network.
5. OBJECTIVE OF STUDY.
5. OBJECTIVE OF STUDY
To know the Factors which affect the consumer behavior regarding the motor-cycle purchase.
To know the Advertisement source which more attracts the consumer.
To know the Purpose of consumer behind the purchase of motorcycle.
To know the level of Satisfaction with their present motorcycle.
6. LIMITATIONS
Limitation of the Study
1 Research work is carried out in the local area of Banur , Distt.Patiala only, so the findings may not applicable to the different other parts of the Country because of Social and Cultural differences.
2 Sample size is very small as compared to the population.
3 Personal biasness of consumer also affected the survey.
4 Time and Money constraints were also there.
7. RESEARCH METHODOLOGY 7. RESEARCH METHODOLOGY Each and every project requires good research study. Success of the project and getting genuine results, all depends upon the research method used by a researcher.
Secondary Data:
I have also collected the secondary data for research work, which I have taken from Bajaj and Hero Honda’s internal records, trade and business publications, and various sites related to Bajaj and Hero Honda.
SAMPLE DESIGN:
Sample design is that part of universe, which we select for the purpose of investigation. A sample should exhibit characteristics of the universe. The researcher must decide the way of selecting sample. Sample can be either probability samples or non- probability samples. So here in this project I have taken the non- probability samples of the research works.
SAMPLE FRAME
It is also known as “Source of list” from which sample is to be drawn. The sample frame is as following: Chandigarh,Banur.
SAMPLE SIZE (100)
. An optimum sample is one, which fulfills the requirement of efficiency, representative, reliability, and flexibility. So my sample size for this study is 100.
SAMPLE PROCEDURE The sampling design, I have chosen to decide the sample for study is based on convenient sampling.
DATA COLLECTION
Primary Data:
Whatever the data I have collected, it is primary data which was collected with help of a questionnaire by asking directly to the consumers.
a) Questionnaire:
For the above purpose and to get a better insight I needed to conduct a consumer survey. I gave questionnaire to respondent so that they can fill it and return to me. I preferred questionnaire method because it does not pressurize the consumer and in this way he gives correct information about the questions, which are asked to him in the questionnaire.
b) Secondary Data:
I have also collected the secondary data for research work, which I have taken from Bajaj and Hero Honda’s internal records, trade and business publications, and various sites related to Bajaj and Hero Honda
8. FINDINGS
8. Findings 1. Income Group (Monthly In Rupees)
Income Group(Monthly 0-10,000 10,000-15,000 15,000-20,000 20,000 or More in Rupees) Number of 49 21 22 8 Respondents
60 49 s t
n 50 e
d 40 n o
p 30 21 22 S eries 1 s e 20 R
8 f
o 10
r
e 0 b m
u 0-10,000 10,000- 15,000- 20,000 N 15,000 20,000 or M ore Income Group(Monthly in Rupees)
From the above chart it is clear that majority of respondents i.e. 49 have motorcycle whose monthly income lies between 0- 10,000 Rupees. 21 respondents lies between Rs.10,000- 15,000 income groups, 22 respondents lies between income group 15,000-20,000 Rupees and very small group of respondents who have motorcycle i.e. 8 lies between income group more than Rupees 20,000.
2. What your profession? Category Professional Student Serviceman Businessman Number of 16 22 44 18 Respondents
5 0 44
s 4 0 t
n 3 0 22 e 1 6 1 8 S e ries 1 d 2 0 n
o 1 0 p s
e 0 R
f o t r al n n e n de a an b io u m s t ce sm m es S vi s u f r e o e in
N r P S us B Category of Society
In the above chart it shows the categories of society that include 16 respondents are professional (include Teachers, Lawyers, Doctors, CA`s etc.), 22 respondents are students, 44 respondents are serviceman and 18 respondents are those who run their own business..
3. Among these two which company’s motorcycle you have? Company’s Hero Honda Bajaj Name Number of 59 41 Respondents s
t 70
n 59 e 60 d n
o 50 41 p
s 40 e Series1 R
30 f o
r 20 e
b 10 m
u 0 N hero Honda Bajaj Response
Out of 100 respondents, 59 have Hero Honda motorcycles and rest of them i.e. 41 respondents has Bajaj motorcycles. It shows that majority of respondents like Hero Honda Company motorcycles. 4. Which of the following motorcycle you have?
Motorcycle CBZ Passion Splendor Discover Pulsor Platina others Name Plus Number of 5 14 37 19 11 6 8 Respondent s s t 37 n 40 e
d 30 n 19 o 14 p 20 11 8 Series1 s 5 6 e 10 R
f 0 o
r Z s r r r a s e o e o r B lu d v s in e b l t C P n o u a h le c l t m n is P P O io p d u S ss N a P Motorcycle`s Name
Out of Hero Honda motorcycles 37 respondents have Splendor which is leader in Hero Honda motorcycles then 14 respondents have Passion Plus ,5 respondents have CBZ and in case of Bajaj 19 respondents have Discover ,11 respondents have Pulsor , 6 respondents have Platina and 8 respondents have other motorcycle( it include 2 Hero Honda CD 100,2 Hero Honda Dawn,2Bajaj Caliber ,2 Bajaj CT 100) 5. How long you have been driving your motorcycle?
Years 0-1 year 1-3 Year 3-5 year More than 5 Year Number of 21 45 25 9 Respondents
5 0 4 5
s 4 0 t
n 2 5 e 3 0 2 1 d S e ries 1 n
o 2 0 9 p s
e 1 0 R
f 0 o
r
e 0 -1 Y e ar 1 -3 3 -5 Y e a r M o re b
m Y e a rs th a n 5 u N Y e a rs Ye a rs
Out of the 100 respondents 45 respondents are those who have been driving their motorcycle for last 3 years , 21 respondents are those who recently bought the motorcycle,, 25 respondents are those who have been driving their motorcycle for last 5 years and only 9 respondents are those who have been driving their motorcycle for more than last 5 years. 6. Which factor influences you to buy this motorcycle?
Brand Image Functional Performanc Price e, 8 Brand Image, 25 Status Comfort, 13
Product Design Resale Value, 19 Price, 16 Resale Value
Product Status, 8 Comfort Design, 11
Functional Performance
In the above chart 19 respondents are those who get influenced by good resale value in the market, 11 respondents get influenced by product design, 8 respondents bought motorcycle due to the status symbol, 16 respondents bought due to the price factor, majority of respondents i.e. 25 bought due to the brand image and only 8 respondents consider functional performance while buying the motorcycle and 13 respondents bought motorcycle due to the conformability of motorcycle. 7. For what purpose you have taken motorcycle?
Purpose Business Joy Riding College Going Office Going Number of 24 18 20 38 Respondents
38 40
s 24 t 30 20
n 18 e
d 20 S eries 1 n
o 10 p s
e 0 R
f o
r ss ng g g e e di in in b in i o o s R G G
m u B oy e e u g ic J le ff N ol O C P urp o se
Out of 100 respondents, 24 respondents buy motor-cycle for business purpose, 18 for joy riding, 20 for college going, and 38 respondents for office going. 8. Are you aware of all the models of motorcycles made available to people by these two company’s (Hero Honda and Bajaj)?
Response Yes No Number of Respondents 92 8
s 92
t 100 n e
d 80 n o
p 60 s
e Series1 R
40 f o
r 20 8 e b
m 0 u
N Yes No Response
Above chat shows that 92 respondents are those who are fully aware of all the models of Hero Honda and Bajaj company’s motorcycles. Only 8 respondents are those who are not fully aware about all the models available by these two companies. 9. What is source of information that made you opt for this motorcycle?
Source of TV Ads Newspaper Magazines Friends and Bike Dealers Information Ads Relatives Suggestions Number of 32 8 10 33 17 Respondent s s t 32 33 n 35 e 30 d
n 25 17
o 20 10 Series1 p 15 8 s 10 e 5 R
0 f s o r s s s d
r d e s n e n r l e e o n a e A a i i p
v t b i e s z a s t V s d a D p d a m e T l g s n A g u e e a e w g i k N i r R e u M F B N S Source of Information
The above chart shows that sources of information from where the respondents get information before the purchase of motorcycle. 32 respondents said that they get information from TV Ads, 8 respondents get information from Newspaper, 10 respondents get information from Magazines, 33 respondents get information from Friends and Relatives, 17 respondents get information from Bike Dealers. 10. How much are you satisfied with your present motorcycle?
Response Very Much Satisfied Average Dissatisfied Very Much Satisfied Dissatisfied Number of 43 40 16 1 0 Respondent s s t
n 50 43 40 e
d 40 n
o 30 16
p Series1
s 20 e 10 0 1 R
f 0 o e d d d h h r g d e e e c i c i i e a e f f f u i r u b f s s s e i i i M s M t t i m v a
t a a y s u y A r a s r S s N e i s e S i V D V D Level of Satisfaction
The above chart shows the level of satisfaction of respondents. 43 respondents said that they are very much satisfied with their present motorcycle, 40 respondents are only satisfied, 16 respondents are those whose level of satisfaction regarding their present motorcycle is average and there is no respondent who is very much dissatisfied with their present motorcycle and one respondent is there who is dissatisfied with their present motorcycle. 11. Do you find finance schemes offered by motorcycle companies worthwhile? If yes please specify the name of the company?
Response HeroHonda Bajaj No Number of 37 32 31 Respondents
3 8 3 7
s 3 6 t n e
d 3 4 n
o 3 2 S e rie s 1 p
s 3 1
e 3 2 R
f o
3 0 r e b
m 2 8 u N H e ro H o n d a B a ja j N o R e sp o n se
Out of 100 respondents, 69 respondents said that company’s financial schemes are worthwhile and 31 respondents said that financial schemes offered by the company were not worthwhile. Out of 69 respondents who are satisfied with financial schemes of company’s it include 37 consumer of Hero Honda and 32 consumers of Bajaj. 12. Which factor do you suggest the company should lay emphasis to enhance its sales?
Factors Quality Product Design Advertisement After Sale Improvement Campaign Services Number of 30 19 20 31 Respondents s t 31 n 35 30 e 30 d 19 20
n 25
o 20 Series1
p 15
s 10 e 5 R
0 f t t e e o n n l s n
c g e r a e g i m u i e y c a e d S m i t s
i b s p o e l r v e i r r t v e a d m r m t e P u o f e o u r S v Q A p C N
d t m A I n Factor
In the above chart 30 respondents gave suggestions to company regarding quality Improvement, 19 respondents gave suggestion regarding improvement of their current product design of motorcycle ,20 gave suggestions regarding improvement in their advertisement campaign and 31 respondents suggested that company should improve their after sale services. 9. CONCLUSION CONCLUSION
At the end we can say that India have very good position in two-wheeler industry. Bajaj and Hero Honda are the two major player of two wheeler industry. But the Hero Honda’ volume is more from Bajaj. In Hero Honda motorcycle’s “Splendor” is the most saleable motorcycle. According to the research in local areas the Brand Image of the motorcycle more influences the consumer behavior. Consumer mostly gets information for buying the motorcycle from T.V ads, friends and relatives .Consumers are very much satisfied with their current motorcycle. They have no planning to change their present motorcycle. HERO HONDA more satisfies the customer with comparison to BAJAJ motorcycles. Because Bajaj have less resale value than Hero Honda. And its pick up is not good. At the end we can say that the consumer wants that both companies should improve their present Quality of motorcycle and after sale services. 10. SUGGESTION Suggestions
• Both the companies should build-up their services centers in small towns as well as distant areas for the better of their services.
• Bajaj should launch one bike which could be considered as durable for e.g. as in case of Hero Honda, Splendor is one model which is durable and has been selling for long time.
• Both companies should work on the concept of most economical bike for lower- income group. It is concluded from the survey, such people wants a bike which costs up to Rs 25,000-30,000 approximate.
• Both companies should provide consumer with all the financial resources they need (Include low interest loan schemes, exchange offers, installment system etc) under one roof i.e. authorized dealer center.
• There should be original spare parts available at the authorized services centers.
• Well qualified and experienced staff should be recruited for better services to the customers.
11. ANNEXURE
BIBLIOGRAPHY
Web Sites
1 www.Indiainfoline.com
2 http://www.herohonda.com
3 http://www.bajajauto.com
4 http://www.answers.com/topic/hero-honda
Book Kotler Philip,” Buying Behavior Process”, Marketing Management, Pearson Education, Eleventh Edition, QUESTIONNAIRE QUESTIONNAIRE
Dear Respondent, This survey will help us understand consumer behaviour for motorcycles. Please note that there is no right or wrong answers to this questionnaire. It will only take 10 minutes of your time.
Name ______Age ______
Q 1: Income Group (Monthly in Rupees)? (a) 0-10,000 (b) 10,000-15,000 (c) 15,000-20,000 (d) 20,000 or above Q2: What your profession? (a) Professional (b) Student (c) Serviceman (d) Businessman Q3: Among these two which company’s motorcycle you have? (a)Hero Honda (b) Bajaj Q4: Which of the following motorcycle you have? (a)CBZ (b) Discover (c) Passion Plus (d) Pulsor (e) Splendor (f) Platina If any other please specify______Q5: How long you have been driving your motorcycle? (a) 0-1 year (b) 1-3 year (c) 3-5 year (d) More than 5 year Q6: What influence you to buy this motorcycle? (a)Brand Image (b) Price (c)Status (d) Product Design (e) Resale value (f) Comfort (g) Functional Performance Q7: For what purpose you have taken motorcycle? (a) Business (b) Joy Riding (c) College Going (d) Office Going If any other purpose please specify ______
Q8: Are you aware of all the models of motorcycles made available to people by these two company’s (Bajaj and Hero Honda)? (a) Yes (b) No
Q9: Which are the sources of information that made you opt for this bike? (a) TV Ads (b) Newspaper Ads (c) Magazines (d) Friends and Relatives (e) Bike Dealers Suggestions
Q10: How much are you satisfied with your present motorcycle? (a) Very Much Satisfied (b) Satisfied (c) Average (d) Dissatisfied (e) Very Much Dissatisfied
Q11: Do you find finance schemes offered by motorcycle companies worthwhile? (a) Yes (b) No If yes please specify the name of the company______
Q12: which factor do you suggest the company should lay emphasis to enhance its sales? (a) Quality Improvement (b) Product design (c) Advertisement Campaign (d) After Sale Services