A COMPARISON STUDY ON THE TOP ‘THREE’ TWO WHEELER COMPANIES IN INDIA DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION BY PRASANTH ALOYSIUS (08PG0329) UNDER THE GUIDANCE OF PROF. VEDA BALAJI FACULTY GUIDE- CUIM CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT BANGALORE-560029 pg. 1 DECLARATION This is to certify that this research project titled “A COMPARISON STUDY ON THE TOP ‘THREE’ TWO WHEELER COMPANIES IN INDIA” is an original work carried out in the 5th and 6th trimester of my MBA(2008-2010) under the guidance of Prof. Veda Balaji. This project is made exclusively as a part of my curriculum and will not be submitted in future to any other university or institution. PRASANTH ALOYSIUS 08PG0329 Date : pg. 2 CERTIFICATE This is to certify that Prasanth Aloysius, student of Christ University of Management, Bangalore, has completed this research project titled “A COMPARISON STUDY ON THE TOP ‘THREE’ TWO WHEELER COMPANIES IN INDIA” under my guidance from in partial fulfillment of the Masters of Business Administration degree. PROF. VEDA BALAJI PROFESSOR ,MARKETING DEPT. CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT BANGALORE ACKNOWLEDGEMENT It is with immense satisfaction and pride that, I am completing my Dissertation Project report. I therefore, would like to stop for a few moments and thank Christ University Institute of pg. 3 Management, Bangalore and Prof. Veda Balaji for allowing me to take up my Dissertation Project on comparison study of two wheeler companies in India . I am also very thankful for his extensive support, timely guidance and regular monitoring our progress and providing valuable inputs from time to time. A sincere thanks to all the respondents, for parting their valuable time and being so patient in sharing the relevant information. I also express my overriding debts and thanks to my friends, without whose help it would have been impossible to complete my project. Last but not the least, I would like to thank all those concerned people who have directly or indirectly contributed in the completion of this entire dissertation report. PRASANTH ALOYSIUS Contents DECLARATION......................................................................................................2 CERTIFICATE........................................................................................................ 3 ACKNOWLEDGEMENT.........................................................................................4 1.1 Introduction to Indian Two-wheeler Sector:.................................................6 1.2 Evolution of Two-wheeler Industry in India:..................................................7 1.3 Profile Change in Indian Two-Wheeler Industry..........................................10 1.4 Key Earnings Drivers..................................................................................11 pg. 4 2.1 COMPANY PROFILE.....................................................................................14 2.2 Hero Honda Motors Limited........................................................................14 2.3 Corporate Profile:........................................................................................15 2.4 Mission statement:....................................................................................16 2.5 HERO HONDA'S MANDATE:........................................................................17 2.6 S.W.O.T ANALYSIS:.....................................................................................17 STRENGTHS:.....................................................................................................17 WEAKNESS:....................................................................................................... 17 2.7 HERO HONDA’S CORE VALUES..............................................................19 2.8 Product range of HERO HONDA.................................................................20 2.9 BAJAJ auto ltd............................................................................................24 2.11 BAJAJ AUTO’S MISSION:............................................................................25 2.12 SWOT Analysis.........................................................................................26 2.13 The Inevitable Change.............................................................................27 2.14 Product range of Bajaj.............................................................................29 2.15 Current Situation.....................................................................................32 Current Performance.....................................................................................32 2.16 The Industry Analysis - Five Forces Analysis-BAL...................................32 External Environment....................................................................................32 2.17 Product & Advertising Strategies OF BAL.................................................34 2.18 Strategies & Implementation...................................................................35 FMCG Business Model....................................................................................35 2.19 Other Strategic Issues.............................................................................36 2.20 Strategies for the Overseas Markets.......................................................37 2.21 R&D......................................................................................................... 38 2.22 The Future...............................................................................................39 2.23 New Strategies adopted by Bajaj.............................................................40 2.24 HONDA MOTORCYCLE & SCOOTER INDIA (Pvt.) Ltd.(HMSI)......................41 pg. 5 2.25 About Honda Motorcycle & Scooter India Pvt. Ltd...................................41 2.26 CORPORATE PROFILE...............................................................................42 2.27 Mission Statement...................................................................................43 2.28 SWOT Analysis.........................................................................................43 2.29 PRODUCT RANGE:....................................................................................44 2.30 Market growth and market size (HMSI)....................................................47 2.31 Strategy of rivals Vs HMSI.......................................................................48 2.32 Strategy of HMSI......................................................................................50 2.34 Strategy adopted by TVS & Bajaj for increasing sales and countering growth of HMSI.................................................................................................50 2.35 Review of strategies adopted by Honda..................................................51 3.1 RESEARCH DESIGN....................................................................................54 3.2 STATEMENT OF PROBLEM..........................................................................54 3.3 HYPOTHESIS..............................................................................................55 3.4 AIMS AND OBJECTIVES...............................................................................55 3.5 SAMPLING TECHNIQUE..............................................................................55 3.6 SAMPLE UNIT.............................................................................................55 3.7 SAMPLE SIZE..............................................................................................56 3.8 STATISTICAL DESIGN..................................................................................56 3.9 PRIMARY DATA...........................................................................................56 3.10 SECONDARY DATA....................................................................................56 3.11 LIMITATIONS OF STUDY............................................................................57 4.1 RESPONDENT’S PROFILE..........................................................................59 4.2 SEX............................................................................................................59 4.3 MARITAL STATUS........................................................................................60 4.4 OCCUPATION..............................................................................................61 4.5 AGE............................................................................................................ 62 4.6 INCOME......................................................................................................63 pg. 6 5.1 DATA ANALYSIS.........................................................................................65 5.2 OWNERSHIP OF TWO WHEELER...............................................................65 5.3 MOST VIEWED ADS....................................................................................66 5.4 MOST INFLUENTIAL ADS..........................................................................67 5.5 BEST RECALLED ADS..................................................................................68 5.6 MOST COMMON SOURCE OF ADS...............................................................69 5.7 SOURCE OF RELIABLE INFORMATION FOR PURCHASE DECISIONS..............70 5.8 FACTORS WHICH MOTIVATE PURCHASING DECISION.................................72 5.9 PREFERRED PRICE