A Research Project Report Comparative Study of Hero
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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 1 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.