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.