A Research Project Report Comparative Study of Hero

A RESEARCH PROJECT REPORT

ON COMPARATIVE STUDY OF HERO HONDA V/S BAJAJ BIKES & CONSUMER BUYING BEHAVIOUR AT TIME TO PURCHASE HERO HONDA AND BAJAJ BIKE

SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION Of Punjab Technical University By Mr. Mahesh Kumar Gupta University Roll. No. 90172232910 MBA 4th SEMESTER UNDER THE SUPERVISION OF Ms. Deepali Singla

Chandigarh Business School, Landran, Mohali (2009-2011)

CERTIFICATE OF SUPERVISOR

This is to certify that Mr. Mahesh Kumar Gupta, Roll No. 90172232910 has completed the research project titled “ COMPARATIVE STUDY OF HERO HONDA V/S BAJAJ BIKES & CONSUMER BUYING BEHAVIOUR AT TIME TO PURCHASE HERO HONDA AND BAJAJ BIKE” under my supervision in partial fulfillment of the Master Of Business Administration degree of MBA under Punjab Technical University , Jalandhar.

Supervisor’s signature:……………………...

Supervisor’s name: Ms. Deepali Singla Date:

Place: LANDRAN (MOHALI)

2 Forwarded for evaluation by the Dean: (Dean’s Signature)

Seal of the Dean

DECLARATION

I, hereby declare that the research project report titled “ COMPARATIVE STUDY OF HERO HONDA V/S BAJAJ BIKES & CONSUMER BUYING BEHAVIOUR AT TIME TO PURCHASE HERO HONDA AND BAJAJ BIKE” is my own original research work and this report has not been submitted to any University/Institute for the award of any professional degree or diploma.

Date: Mahesh Kumar Gupta Place: LANDRAN (MOHALI) M.B.A (4th SEM)

3 Chandigarh Business School

ACKNOWLEDGEMENT

I feel great pleasure to submit this project as the culmination of my Guide efforts. This project required hard work; sincerity and devotion that i tried best to put in this project and i in turn gained a lot of knowledge and confidence from this project.

My sincere thanks to faculty guide, Ms. Deepali Singla who served as our supervisor and guided and facilitated me. She was always available when i needed her personal and academic advice during my project. She cheered me up and lightened my wearisome tasks with laughing and fun throughout this project.

I would like to extend my sincere thanks to my College for providing me with the necessary guidelines for carrying out the project. Further, without the cooperation and support of my friends and colleagues this Project would have not been completed.

4 5 PREFACE

In order to make the students competent, all students are required to take a real time

Project Work. The exposure to real life situation gives an insight the students about what problem she can expect to face during her carrier.

Practical Training is an important part of the Management

Courses. The theoretical studies are not sufficient to get into the corporate world

.Theoretical are not sufficient to understand the complexities of large scale organization & whenever we have to solve any problem the practical study assist with the theoretical aspect in order to solve that problem so if we have practical than only that problem can be solved .

Studying books and merely passing exams, is not worth, the education knowledge and in fact experience is incomplete without being exposed to what is happening in real.

6 TABLE OF CONTENTS

S.NO TOPIC PAGE NO. 1 INTRODUCTION 7-9 2 OVERVIEW OF TOPIC 10-14,16-29,31-41 3 COMPANY PROFILE 15&30 4 OBJECTIVE OF THE STUDY 46 5 RESEARCH METHODOLOGY 47-49 Research Design ➢ Sample size ➢ Sample Units ➢ Types of sampling Source(s) of Data ➢ Primary data ➢ Secondary data Tools used for Data collection Techniques used for Data analysis 6 DATA ANALYSIS 50-61 7 LIMITATIONS OF THE STUDY 62 8 FINDINGS 63-64 9 CONCLUSION 65 10 RECOMMENDATIONS 66 11 BIBLIOGRAPHY 67 12 APPENDIX 68-70

7 CHAPTER-1

INTRODUCTION TO 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 litre.

8 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.

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

9 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. 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.

10 HERO HONDA MOTOR’S LIMITED

11 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

12 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. It have world class production facilities like Lean Manufacturing concept, more flexible lines & Stream line material flow, within & proximity.

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 Lal 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 India’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.

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

13 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. 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.

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).

14 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.

Diversification

Throughout the years of enormous growth, the Group Chairman, Mr. Lal 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.

15 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.

COMPANY PROFILE

Founder Munjal Brothers: Mr. Satyanand Munjal, Mr. Brijmohan Lal Munjal and Mr. O. P. Munjal. Year of Establishment 1984 (The Hero Group was established in 1956) 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 Lal 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 Ratio Hero Group - 26% Honda Motor Co., Ltd. - 26% Others - 48% (listing) Listings & its codes BSE - Code: 500182 NSE - Code: HERO HONDA

16 Bloomberg - Code: HH@IN No. of Sales Outlets 1500+ Joint Venture The Hero Group (India) with Honda Motor Co., Ltd. (Japan)

Registered & Corporate 34, Community Centre Office Basant Lok, Vasant Vihar New Delhi - 110057 Tel.: +(91)-(11)-26142451 - 59 Fax: +(91)-(11)-26143321 / 3198 / 1830; 26152453 Website www.herohonda.com www.herogroup.com 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.

GROUP COMPANIES

No. Name of Company 1 Hero Honda Motors Limited

2 Hero Cycles Limited

3 Hero Honda Finlease Limited

17 4 Munjal Showa Limited

5 Sunbeam Auto Limited

6 Hero Financial Services Limited

7 Munjal Auto Industries Limited

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 NXG

• Hero Honda Splendor+

• Hero Honda Passion

18 • 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 ZMR

SCOOTERS

• Hero Honda Pleasure

20 MOST SELLING BIKES OF HERO HONDA

HERO HONDA SPLENDOR+

HERO HONDA PASSION PLUS

21 22 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 have 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.

23 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. Immunization Programmes: All Hero Honda employees and their families benefit from immunization programmes for Hepatitis and Typhoid fever. More than 6,000 people have been immunized so far. The company is also an active participant in the National Pulse Polio-immunization-programmes.

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.

24 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.

25 KEY MILESTONES OF HERO HONDA

26 Year Event

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

1984 Hero Honda Motors Ltd. incorporated

1985 First motorcycle "CD 100" rolled out

1987 100,000th motorcycle produced

1989 New motorcycle model - "Sleek" introduced

1991 New motorcycle model - "CD 100 SS" introduced 500,000th motorcycle produced

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

1996 Hero Winner, a large-wheeled scooter was introduced by Hero Motors Limited with a choice of 50 cc and 75 cc engines.

1997 New motorcycle model - "Street" introduced Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated

27 Hero Honda success saga contains an element of spirit and enterprise; of achievement through grit and determination, coupled with vision and meticulous planning.

28 BAJAJ AUTO LIMITED

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 motor scooters, motorcycles and the auto rickshaw.

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 whose worth more than US$1.5 billion.

29 Company's history

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 Akurdi and Chakan (near Pune),Waluj (near Aurangabad) and Pantnagar in Uttaranchal. Bajaj Auto makes and exports motor scooters, motorcycles and the auto rickshaw.

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 vehicles and produced and sold 1 million vehicles in a year.

COMPANY PROFILE Founder Jamnalal Bajaj

Year of Establishment 1926

Industry Automotive - Two & Three Wheelers

Business Group The Bajaj Group

Listings & its codes BSE - Code: 500490; NSE - Code: BAJAJAUTO

30 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, Pune – 411035, India Office 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

GROUP COMPANIES

Bajaj Auto is the flagship of the Bajaj group of companies. The group comprises of 26 companies and was founded in the year 1926. The companies in the group are:

Bajaj Auto Ltd. Mukand International Ltd.

31 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 Company Ltd. Ltd.

32 PRODUCTS

Some of the models that Bajaj makes (or has made) are:

SCOOTERS

Bajaj Kristal DTSi, Bajaj Bravo, Bajaj Wave 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

Ninja 250R

33 Upcoming Models Bajaj Blade Bajaj Sonic

Discontinued Models

Bajaj Sunny

Bajaj Chetek

Bajaj Super

Bajaj Wave

Bajaj Legend

Bajaj Bravo

Kawasaki Eliminator

Bajaj Kawasaki 4s Champion

Bajaj Kawasaki KB 100 RTZ

Bajaj Boxer

Bajaj Caliber

MOST SELLING BIKES OF BAJAJ

BAJAJ PULSAR

BAJAJ DISCOVER

35 SOCIAL RESPONSIBIL IT Y

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.

36 Focus The trust initiates sustainable, integrated development through long term projects in rural health, hygiene and sanitation, education and adult literacy, improving agricultural and livestock yield, watershed development and women’s empowerment. Through its poverty alleviation schemes, the trust provides micro credit and income generation opportunities for the poor. These projects have a positive impact on the quality of rural living standards.

Under the auspices of the ‘model village scheme’ of the Maharashtra Government, JBGVS has assisted the development of several villages in the last five years. Under this scheme, NGOs, public institutions, colleges, hospitals, local self- government bodies and state government departments for agriculture and horticulture, work together to bring about a holistic and sustainable improvement in rural living conditions.

Samaj-Seva-Kendra:

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 organizes weekly medical consultation and health awareness programmes, child and adult education, vocational training and personality development programmes, leisure and recreational facilities for women.

37 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 catheterization lab, advanced spiral computer topography (CT) scanner, a color 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’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 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.

38 KEY MILESTONES OF BAJAJ AUTO LIMITED

Year Milestones

2008 Bajaj Launches XCD 135 DTS-Si! 2007 September Launch of XCD DTS-Si June National Launch of 220 cc Pulsar DTS-Fi. 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 Chetek 4 stroke with Wonder Gear launched May Bajaj CT100 Launched January Bajaj unveils new brand identity, dons new symbol, logo and brand line 32003

39 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 and

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 Auto rickshaw 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.

40 1991 The Kawasaki Bajaj 4S Champion is introduced

1990 The Bajaj Sunny is introduced. 1986 The Bajaj M-80 and the Kawasaki Bajaj KB100 motorcycles are introduced and 500,000 vehicles produced and sold in a single financial year. 1985 November The Waluj plant inaugurated by the erstwhile President of India, Shri Giani 5 Zail Singh Production commences at Waluj, Aurangabad in a record time of 16 months 11984

January Foundation stone laid for the new Plant at Waluj, Aurangabad 19 11981 The Bajaj M-50 is introduced.

71977 The Rear Engine Auto rickshaw 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 Chetek is introduced. 11971 The three-wheeler goods carrier is introduced 1970 Bajaj Auto rolls out its 100,000th vehicle 1960 Bajaj Auto becomes a public limited company. Bhoomi Poojan of Akurdi Plant 1959 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.

41 Bajaj to Launch new Bikes in 20 11

Bajaj Auto said that it will launch new bikes in India in 2011. The company would launch one bike every month for next 6 months starting Jan 2009.

Bajaj has recorded 37 ercent fall in motorcycle sales during this November’08. The company doesn’t predict any increase in Dec 2008 either as the dealers have rejected to pickup any additional deliveries because of inventory pile-up.

The expecting bikes include - all new facelifted Bajaj-KTM, Pulsar 250cc, new Pulsar 200 FI,New Boxer 150 cc, a new variant of Discover, XCD sprint and Blade scooter. Bajaj also plans to launch its new low cost product (christened as Steel). Bajaj is offering the cheaper finance plans from Bajaj Auto Finance Ltd. They will finance all vehicles bought from Bajaj dealers and will provide cheaper loans to its clients.

CONSUMER BEHAVIOR

Introduction

42 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 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 behavior 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.

43 CONSUMER DECISION-MAKING PROCESS

Problem Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post Purchase Behavior

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

44 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 behavior reaction stands for the behavior of a consumer after a commitment to product has made. This post purchase behavior may be a set of positive or negative feelings. Positive feelings go toward satisfaction and negative feelings go for dissatisfaction.

FACTORS AFFECTING THE MOTORCYCLE PURCHASE

45 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.

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.

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.

46 CHAPTER 4

OBJECTIVES OF THE STUDY

“Good better best, never let it rest till your good is better and your better is best”.

The objectives of the study are as follows:-

✔ To know the factors which affect the consumer buying behavior.

✔ To know the Advertisement source which attracts the consumers .

✔ To know the Purpose of consumer behind the purchase of motorcycle.

✔ To know the level of Satisfaction with their present motorcycle.

47 CHAPTER 5

RESEARCH METHODOLOGY

Research Methodology comprises defining and redefining the problem, formulating hypothesis or suggesting solution, collecting, organizing and evaluating the data, making deduction and reaching to conclusions and determines whether the formulated hypothesis is right and wrong. Research Methodology is a way to solve research in study and solving research problems along with logic behind them are defined through research methodology.

SAMPLE DESIGN

Sample design is that part of universe, which we select for the purpose of investigation. On the basis of sample, we can predict and generalize the behavior of mass phenomena. 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: Area of Tricity.

SAMPLE SIZE

It refers to the number of items to be selected from the universe to constitute a sample. An optimum sample is one, which fulfills the requirement of efficiency, representative,

48 reliability, and flexibility. So sample size for comparsion study of Bajaj and Hero Honda is 150.And the sampling used here are 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) Direct Interview:

I have also conducted direct interview in some areas with consumer of Bajaj and Hero Honda. Why I have done so because my questionnaire was open-ended, so respondents could not express their views thoroughly but in personnel interview we can do it much better than questionnaire.

Secondary Data:

49 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.

50 TECHNIQUES USED FOR DATA ANALYSIS

Data collected would be analyzed by method of percentages. To analyze the data obtained with the help questionnaire following tools would be used:

Percentage, Graphs and Pie-Charts.

TOOLS USED FOR DATA COLLECTION

Questionnaire: A formulized instruments for asking information directly from a respondent consumer behavior, demographic characteristic, level of knowledge attitudes, beliefs, feelings.

Personal interview or face to face interview.

CHAPTER 6 DATA ANALYSIS

Q (1): Income Group (Monthly In Rupees)

Income Group(Monthly in Rupees) 0-10,000 10,000-15,000 15,000-20,000 20,000 or More Number of 79 34 29 7 Respondents

Interpretation:-

From the above chart it is clear that majority of respondents i.e. 79 have motorcycle whose monthly income lies between 0- 10,000 Rupees. 34 respondents lies between Rs.10,000-15,000 income groups, 29 respondents lies between income group 15,00020,000 Rupees and very small group of respondents who have motorcycle i.e. 7 lies between income group more than Rupees 20,000.

Q (2): You belong to which category of society?

Category Professional Student Serviceman Businessman Number of 29 43 56 22 Respondents

52 Interpretation: -

In the above chart it shows the categories of society that include 29 respondents are professional (include Lawyers, Doctors, CA`s), 43 respondents are students, 56 respondents are serviceman and 22 respondents are those who run their own business.

53 Q (3): Among these two which company’s motorcycle do you have?

Company’s Name Hero Honda Bajaj

Number of Respondents 89 61

Interpretation: -

54 Out of 150 respondents, 89 have Hero Honda motorcycles and rest of them i.e. 61 respondents has Bajaj motorcycles. It shows that majority of respondents like Hero Honda Company motorcycles.

55 Q (4): Which of the following motorcycle do you have?

Motorcycle CBZ Passion Splendor Discover Pulsar Platina others Name Plus Number of 5 18 51 21 31 19 5 Respondent s

Interpretation:-

Out of Hero Honda motorcycles 51 respondents have Splendor which is leader in Hero Honda motorcycles then 18 respondents have Passion Plus ,5 respondents have CBZ and in case of Bajaj 21 respondents have Discover ,31 respondents have Pulsar , 19 respondents have Platina and 5 respondents have other motorcycle( it include 1 Hero Honda CD 100,1 Hero Honda Dawn,2Bajaj Caliber ,1 Bajaj CT 100).

Q (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 37 63 42 8 Respondents

56 Interpretation: -

Out of the 150 respondents 63 respondents are those who have been driving their motorcycle for last 3 years, 37 respondents are those who recently bought the motorcycle,, 42 respondents are those who have been driving their motorcycle for last 5 years and only 8 respondents are those who have been driving their motorcycle for more than last 5 years.

Q (6): Which factor influence you to buy this motorcycle?

Factor Brand Price Status Product Resale Comfort Functional Name Design Value Performance Number of 30 40 18 12 26 14 10 Respondent s

57 Interpretation: -

In the above chart majority of respondents i.e. 27% respondents bought due to the price factor, 20% bought due to the brand image and only,17% respondents are those who get influenced by good resale value in the market, 12% respondents bought motorcycle due to the status symbol, 9% respondents bought motorcycle due to the conformability of motorcycle. 8% respondents get influenced by product design, and 7% respondents consider functional performance while buying the motorcycle.

Q (7): For what purpose you have taken motorcycle?

Purpose Business Joy Riding College Going Office Going Number of 35 20 32 63 Respondents

58 Interpretation:-

Out of 150 respondents, majority of the respondent’s i.e.42% respondents for office going. 23% respondents buy motor-cycle for business purpose, 14% for joy riding, 21% for college going.

Q (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 135 15

59 Interpretation: -

Above chat shows that 135 respondents are those who are fully aware of all the models of Hero Honda and Bajaj company’s motorcycles. Only 15 respondents are those who are not fully aware about all the models available by these two companies.

Q (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 62 9 15 49 15 Respondent s

60 Interpretation: -

The above chart shows that sources of information from where the respondents get information before the purchase of motorcycle. 62 respondents said that they get information from TV Ads, 9 respondents get information from Newspaper, 15 respondents get information from Magazines, 49 respondents get information from Friends and Relatives, 15 respondents get information from Bike Dealers.

Q (10): How much are you satisfied with your present motorcycle?

Response Very Much Satisfied Average Dissatisfie Very Much Satisfied d Dissatisfie d Number 59 56 30 4 1 of

61 Responde nts

Interpretation: -

The above chart shows the level of satisfaction of respondents. 59 respondents said that they are very much satisfied with their present motorcycle, 56 respondents are only satisfied, 30 respondents are those whose level of satisfaction regarding their present motorcycle is average and there are only 4 respondents who is very much dissatisfied with their present motorcycle and one respondent is there who is dissatisfied with their present motorcycle.

Q (11): Do you find finance schemes offered by motorcycle companies worthwhile? If yes please specify the name of the company?

62 Response Hero Honda Bajaj No Number of Respondents 63 55 32

Interpretation: -

Out of 150 respondents, 118 respondents said that company’s financial schemes are worthwhile and 32 respondents said that financial schemes offered by the company were not worthwhile.

Out of 118 respondents who are satisfied with financial schemes of company’s it include 63 consumer of Hero Honda and 55 consumers of Bajaj.

63 Q (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 46 35 39 30 Respondents

Interpretation

In the above chart 46 respondents gave suggestions to company regarding quality Improvement, 35 respondents gave suggestion regarding improvement of their current product design of motorcycle ,39 gave suggestions regarding improvement in their advertisement campaign and 30 respondents suggested that company should improve their after sale services.

CHAPTER 7

LIMITATIONS OF THE STUDY

Although full efforts have been made in this study, still because of following limitations a more detailed research is required to reach to the effective conclusion.

64 ➢ Research work is carried out in the local area of Chandigarh only, so the findings may not applicable to the different other parts of the Country because of Social and Cultural differences

➢ Sample size is very small as compared to the population.

➢ Personal biasness of consumer also affected the survey.

➢ Time and Money constraints were also there.

65 FINDINGS

I. Out of 150 respondents, majority of respondents i.e. 79 have motorcycle whose monthly income lies between 0- 10,000 Rupees. 34 respondents lies between Rs.10,000-15,000 income groups, 29 respondents lies between income group 15,000-20,000 Rupees and very small group of respondents who have motorcycle i.e. 7 lies between income group more than Rupees 20,000. II.Out of 150 respondents, the categories of society that include 29 respondents are professional (include Lawyers, Doctors, CA`s), 43 respondents are students, 56 respondents are serviceman and 22 respondents are those who run their own business. III.Out of 150 respondents, 89 have Hero Honda motorcycles and rest of them i.e. 61 respondents has Bajaj motorcycles. It shows that majority of respondents like Hero Honda Company motorcycles. IV.Out of Hero Honda motorcycles 51 respondents have Splendor which is leader in Hero Honda motorcycles then 18 respondents have Passion Plus ,5 respondents have CBZ and in case of Bajaj 21 respondents have Discover ,31 respondents have Pulsar , 19 respondents have Platina and 5 respondents have other motorcycle( it include 1 Hero Honda CD 100,1 Hero Honda Dawn,2Bajaj Caliber ,1 Bajaj CT 100) V.Out of the 150 respondents 63 respondents are those who have been driving their motorcycle for last 3 years, 37 respondents are those who recently bought the motorcycle,, 42 respondents are those who have been driving their motorcycle for last 5 years and only 8 respondents are those who have been driving their motorcycle for more than last 5 years. VI.Out of 150 respondents, majority of respondents i.e. 27% respondents bought due to the price factor, 20% bought due to the brand image and only,17% respondents

66 are those who get influenced by good resale value in the market, 12% respondents bought motorcycle due to the status symbol, 9% respondents bought motorcycle due to the conformability of motorcycle. 8% respondents get influenced by product design, and 7% respondents consider functional performance while buying the motorcycle. VII.Out of 150 respondents, majority of the respondent’s i.e.42% respondents for office going. 23% respondents buy motor-cycle for business purpose, 14% for joy riding, 21% for college going. VIII.Out of 150 respondents, 135 respondents are those who are fully aware of all the models of Hero Honda and Bajaj company’s motorcycles. Only 15 respondents are those who are not fully aware about all the models available by these two companies. IX.Out of 150 respondents, sources of information from where the respondents get information before the purchase of motorcycle. 62 respondents said that they get information from TV Ads, 9 respondents get information from Newspaper, 15 respondents get information from Magazines, 49 respondents get information from Friends and Relatives, 15 respondents get information from Bike Dealers. X.Out of 150 respondents, the level of satisfaction of respondents. 59 respondents said that they are very much satisfied with their present motorcycle, 56 respondents are only satisfied, 30 respondents are those whose level of satisfaction regarding their present motorcycle is average and there are only 4 respondents who is very much dissatisfied with their present motorcycle and one respondent is there who is dissatisfied with their present motorcycle. XI.Out of 150 respondents, 118 respondents said that company’s financial schemes are worthwhile and 32 respondents said that financial schemes offered by the company were not worthwhile. Out of 118 respondents who are satisfied with financial schemes of company’s it include 63 consumer of Hero Honda and 55 consumers of Bajaj. XII.Out of 150 respondents, 46 respondents gave suggestions to company regarding quality Improvement, 35 respondents gave suggestion regarding improvement of

67 their current product design of motorcycle ,39 gave suggestions regarding improvement in their advertisement campaign and 30 respondents suggested that company should improve their after sale services.

68 CHAPTER 9

CONCLUSION

At the end we can say that India have very good position in two-wheeler industry. Bajaj and Hero Honda is the major player of two wheeler industries. But the Hero Honda’ volume is more from Bajaj. In Hero Honda motorcycle’s “Splendor” is the most saleable motorcycle. According to my research in local areas the Brand Image of the motorcycle more influences the consumer behavior. Consumer mostly gets information for buy 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. HONDA more satisfies the customer with comparison to BAJAJ. Because the Bajaj have not resale value. 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.

69 CHAPTER 10

SUGGESTIONS

➢ Both the companies should build-up their services centers in small towns as well as distant areas for the betterment 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.

70 BIBLIOGRAPHY

Books

➢ Kothari.C.R, Research Methodology,Delhi,Wishwa Prakashan Pvt.Ltd.

➢ Dr. Sontakki C.N, Marketing management.

➢ Prasad L.M, Fundamental Of Market Research

➢ Kotler Philip, Marketing management,Delhi,Pearson education Pvt.Ltd.

Websites

➢ www.Indiainfoline.com

➢ http://www.herohonda.com

➢ http://www.bajajauto.com

➢ http://www.answers.com/topic/hero-honda

➢ http://www.google.com

➢ http://www.financialexpress.com/old/fe_full_story.php? content_id=141258

71 APPENDIX

QUESTIONNAIRE

Dear Respondent,

This survey will help us understand consumer behavior 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

Q2: You belong to which category of society?

(a) Professional (b) Student

72 Q3: Among these two which company’s motorcycle do you have?

(a)Hero Honda (b) Bajaj

Q4: Which of the following motorcycle do you have?

(a)CBZ (b) Discover

(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 does 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

If any other purpose please specify ______

73 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

(e) Bike Dealers

Suggestions ------

Q10: How much are you satisfied with your present motorcycle?

(a) Very Much Satisfied (b) Satisfied

(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

74 THANK YOU