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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
Himachal Pradesh University
By
Rohit Gupta
University Roll. - 6065
MBA 4th SEMESTER
INTERNATIONAL CENTRE FOR DISTANCE EDUCATION & OPEN
LEARNING
HIMACHAL PRADESH UNIVERSITY
SHIMLA-5

CERTIFICATE OF SUPERVISOR

This is to certify that Mr. Rohit Gupta, Roll No.6065 has completed the research project
titled COMPARATIVE STUDY OF HERO HONDA V/S BAJAJ BIKES &
CONSUMER BUYING BEHAVIOUR AT TIMETO PURCHASE HERO
HONDA AND BAJAJ BIKE under my supervision in partial fulfillment of the Master
Of Business Administration degree of MBA under himachal Pradesh University ,Shimla.

Supervisors signature:...
Supervisors name: Prof.Kulwant Rana
Date:
Place:SHIMLA

DECLARATION
2

I, hereby declare that the research project report titled COMPARATIVE


STUDY

OF

HERO HONDA

V/S

BAJAJ BIKES & CONSUMER

BUYING BEHAVIOUR AT TIMETO 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:
Place: Shimla

Rohit Gupta
M.B.A (4th SEM)

Himachal Pradesh University

ACKNOWLEDGEMENT
3

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, Prof.Kulwant Rana 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.

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.

TABLE OF CONTENTS

S.NO
1
2
3
4
5

TOPIC

PAGE NO.
7-9
10-14,16-29,31-41
15&30
46
47-49

INTRODUCTION
OVERVIEW OF TOPIC
COMPANY PROFILE
OBJECTIVE OF THE STUDY
RESEARCH METHODOLOGY
Research Design

Sample size
Sample Units
Types of sampling
Source(s) of Data

Primary data
Secondary data
Tools used for Data collection
6
7
8
9
10
11

Techniques used for Data analysis


DATA ANALYSIS
LIMITATIONS OF THE STUDY
FINDINGS
CONCLUSION
RECOMMENDATIONS
BIBLIOGRAPHY

50-61
62
63-64
65
66
67

12

APPENDIX

68-70

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 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
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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 twostroke 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
8

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 their 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.

HERO HONDA
MOTORS LIMITED

INTRODUCTION
10

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

11

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 Indias 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 was established in joint venture with Honda Motors of
Japan in 1984, to manufacture motorcycles. It is currently the largest
12

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).
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.

13

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.
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

14

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
Bloomberg - Code: HH@IN

No. of Sales Outlets

1500+

Joint Venture

The Hero Group (India) with Honda Motor Co., Ltd. (Japan)

Registered & Corporate


Office

34, Community Centre


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

15

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

Hero Honda Motors Limited

Hero Cycles Limited

Hero Honda Finlease Limited

Munjal Showa Limited

Sunbeam Auto Limited

Hero Financial Services Limited

Munjal Auto Industries Limited

PRODUCTS

16

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
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
17

SCOOTERS
Hero Honda Pleasure

18

MOST SELLING BIKES OF HERO HONDA


HERO HONDA SPLENDOR+

HERO HONDA PASSION PLUS

19

20

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 outpatient 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.
21

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.

Engineering
22

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.

KEY MILESTONES OF HERO HONDA

23

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

1998

2,000,000th motorcycle produced


24

1999

New motorcycle model - "CBZ" introduced.


Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of founder
Managing Director, Mr. Raman Kant Munjal

2000

4,000,000th motorcycle produced.


Splendor declared 'World No. 1' - largest selling single two-wheeler model.

"Hero Honda Passport Programme" - CRM Programme launched.


2001

New motorcycle model - "Passion" introduced.


One million production in one single year.

2002

New motorcycle model - "Dawn" introduced.


New motorcycle model - "Ambition" introduced.
Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh and
Zaheer Khan as Brand Ambassadors.

2003

Becomes the first Indian Company to cross the cumulative 7 million sales mark.
Splendor has emerged as the World's largest selling model for the third calendar year in a
row (2000, 2001, and 2002).
New motorcycle model - "CD Dawn" introduced.
New motorcycle model - "Splendor +" introduced.
New motorcycle model - "Passion Plus" introduced.
New motorcycle model - "Karizma" introduced.

25

2004

New motorcycle model - "Ambition 135" introduced.


Splendor - World's largest selling motorcycle crossed the 5 million mark.
New motorcycle model - "CBZ*" introduced.
Total sales crossed a record of 10 million motorcycles.

2005

Hero Honda is the World No. 1 for the 4th year in a row.
New motorcycle model - "Super Splendor" introduced.
New motorcycle model - "CD Deluxe" introduced.
New motorcycle model - "Glamour" introduced.
New motorcycle model - "Achiever" introduced.

2006

Hero Honda is the World No. 1 for the 5th year in a row.Hero Honda launched Glamour
FI - India's first Fuel Injection motorcycle.Hero Honda rolled out its first scooter, the
100cc Pleasure and launched 22 women-exclusive scooter showrooms Just4her
across the country

2007

HERO HONDA WORLD NO 1 FOR SIX YEARS IN A ROW

Turnover increases 15% to Rs 2700 crore for Q3 2006-07. Turnover increased from Rs
2351 crore to Rs 2700 crore, a healthy growth of 15% per cent.

Awards and accolades

Hero Honda named amongst the top 10 companies in


India by the Asia 200 Leadership Report by the Wall
Street Journal Asia

CBZ X-treme Bike of the Year 2007 BS


Motoring. Bike of the Year (150 cc) NDTV Profit
Bike India & Car India

26

Programmed fuel injection ( PGMFI ) Bike


Technology of the Year 2007

27

2009-10
GROWTH STORY CONTINUES AT HERO HONDA
WITH EBIDTA AT 14.47 PER CENT IN Q3, 2009-10
Highlights of Q3, FY'09-10
Corporate Performance:

Total turnover (Net sales & Other Operating income) Rs 2881.27 crores, growth
of 4.77 per cent

Net profit after tax at Rs 300.42 crores, growth of 9.24 per cent

Achievements:

Crossed the landmark retail sales of more than six lakh two-wheelers in a month
in October

Growth of 11 per cent in two-wheelers despatch sales in the first nine months
(April-December) this financial year

Over 56 per cent share in domestic motorcycle market

New Launches:

Launched seven new models this quarter - New CD Deluxe, New Passion Pro,
Splendor NXG, New Pleasure,Hero Honda street, New Glamour, New Glamour
FI and the all new CBZ X-treme.

28

Hero Honda success saga contains an element of spirit and enterprise; of


achievement through grit and determination, coupled with vision and meticulous
planning.

29

BAJAJ AUTO
LIMITED

INTRODUCTION
Bajaj Auto is a major Indianautomobile 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.

Company's history
30

Bajaj Auto is a major Indianautomobile 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 twoand 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

Presence

Distribution network covers 50 countries.


Dominant presence in Sri Lanka, Bangladesh, Columbia,
Guatemala, Peru, Egypt, Iran and Indonesia.
31

Joint Venture

Kawasaki Heavy Industries of Japan

Registered & Head


Office

Akurdi, 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

rahulbajaj@bajajauto.co.in

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.

Mukand Ltd.

Mukand Engineers Ltd.

Bajaj Electricals Ltd.

Mukand Global Finance Ltd


32

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


Company Ltd.

Bajaj Allianz Life Insurance Company


Ltd.

PRODUCTS
33

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

34

Ninja 250R

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
35

BAJAJ DISCOVER

36

SOCIAL RESPONSIBILITY
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 Autos 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 Autos 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.

37

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

womens

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.

38

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 hospitals 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 checkup plan in association with Bajaj Allianz General Insurance, which provides cashless hospitalization and treatment.

39

KEY MILESTONES OF BAJAJ AUTO LIMITED


Year

2008

Milestones

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
June
February

Bajaj Discover launched


Bajaj Avenger DTS-I launched
Bajaj Wave DTS-I launched

42004
October

Bajaj Discover DTS-I launched

August

New Bajaj Chetek 4 stroke with Wonder Gear launched

May
January

Bajaj CT100 Launched


Bajaj unveils new brand identity, dons new symbol, logo and brand line

32003

October

Pulsar DTS-I is launched

40

July
February

Bajaj Wind 125, The World Bike, is launched in India.


Bajaj Auto launched its Caliber115 "Hoodibabaa!" in the executive motorcycle
segment.

12001
November
January

Bajaj Auto launches its latest offering in the premium bike segment Pulsar
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, Indias 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
29

Bajaj Auto is 50
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

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.

41

1985
November
5

The Waluj plant inaugurated by the erstwhile President of India, Shri Giani Zail Singh
Production commences at Waluj, Aurangabad in a record time of 16 months

11984
January 19
11981

Foundation stone laid for the new Plant at Waluj, Aurangabad


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.

Bajaj to Launch new Bikes in 2011


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 November08.
42

The company doesnt 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.

CONSUMERBEHAVIOR
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:

43

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.

CONSUMER DECISION-MAKING PROCESS

Problem Recognition
44

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 consumers
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 consumers deep interest in the product or service


that paves the way for evaluation. The evaluation is the stage of the mental trial of the
45

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: -Its 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


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.
46

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.

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:47

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.

CHAPTER 5
RESEARCH METHODOLOGY
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
48

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 ofTricity.

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,
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.

49

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:

I have also collected the secondary data for research work, which I have taken from
Bajaj and Hero Hondas 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.

51

CHAPTER 6
DATA ANALYSIS

Number of Respondents
5%

19%
0-10,000

15,000-20,00053% 20,000 or More

10,000-15,000

23%

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

Income
Group(Monthly
in Rupees)
Number of
Respondents

0-10,000
79

10,000-15,000

15,000-20,000

34

29

20,000 or More
7

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 andvery 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?


52

Category

Professional

Number of
Respondents

29

Student

Serviceman

Businessman

43

56

22

Number Of Respondents
15%

Professional

19%

Student

Serviceman

37%

Businessman

29%

53

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.

54

Q (3): Among these two which companys motorcycle do you have?

Companys Name

Hero Honda

Number of Respondents

89

Bajaj
61

Number Of Respondents

Hero 41%
Honda

Bajaj
59%

55

Interpretation: 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.

56

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

Motorcycle
Name

CBZ

Passion
Plus

Splendor

Discover

Pulsar

Platina

others

Number of
Respondent
s

18

51

21

31

19

60
50
40
30

Number Of Respondents

20
10
0

Motorcycles Name

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).

57

Q (5): How long you have been driving your motorcycle?

Years
Number of
Respondents

0-1 year
37

No Of Respondents

1-3 Year

3-5 year

63

70
60
50
40
30
20
10
0

42

63
37

42

Years

58

More than 5
Year

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
Number of
Respondents

Brand
Name

Price

Status

Product
Design

Resale
Value

Comfort

Functional
Performance

30

40

18

12

26

14

10

7%
20%

9%
Brand Name

Price Status Product Design Resale Value Comfort

17%
Functional Performance

27%
8%
12%

59

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
Number of
Respondents

Business
35

Joy Riding
20

60

College Going
32

Office Going
63

Business; 23%
Office Going; 42%
Business

Joy Riding

College Going

Joy Riding; 13%


College Going; 21%

Interpretation:-

61

Office Going

Out of 150 respondents, majority of the respondents 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 companys (Hero Honda and Bajaj)?

Response

Yes

No

Number of Respondents

135

15

10%

Yes

No

90%

62

Interpretation: Above chat shows that 135 respondents are those who are fully aware of all the
models of Hero Honda and Bajaj companys 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
Information

TV Ads

Newspaper
Ads

Magazines

Friends and
Relatives

Bike Dealers
Suggestions

Number of
Respondent
s

62

15

49

15

63

10%

TV Ads

Newspaper Ads

Magazines
33%

41%
Friends and Relatives

Bike Dealers Suggestions

10% 6%

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?
64

Response

Very Much
Satisfied

Satisfied

Average

Dissatisfie
d

Number
of
Responde
nts

59

56

30

Number Ofspondents

59

Very Much
Dissatisfie
d
1

56
30
4

Very Much Satisfied

Average

1
Very Much Dissatisfied

Responses Of Respondents

65

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?

Response

Hero Honda

Bajaj

No

63

55

32

Number of Respondents

21%
42%
Hero Honda

Bajaj

37%

66

No

Interpretation: Out of 150 respondents, 118 respondents said that companys 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 companys it include 63
consumer of Hero Honda and 55 consumers of Bajaj.

Q (12): Which factor do you suggest the company should lay


emphasis to enhance its sales?

Factors
Number of
Respondents

Quality
Improvement

Product Design

Advertisement
Campaign

After Sale
Services

46

35

39

30

67

Number Of Respondents

50
45
40
35
30
25
20
15
10
5
0

46

35

39

30

Factors

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.

68

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.

69

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
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
70

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 respondents 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 companys 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 companys 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 companys 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
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.

71

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 motorcycles 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.

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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 lowerincome 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.

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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

APPENDIX

74

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

(c) 15,000-20,000

(d) 20,000 or above

Q2: You belong to which category of society?


(a) Professional
(c) Serviceman

(b) Student
(d) Businessman

Q3: Among these two which companys motorcycle do you have?


(a)Hero Honda

(b) Bajaj

Q4: Which of the following motorcycle do you have?


(a)CBZ

(b) Discover
75

(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 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

(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 companys (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


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(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

THANK YOU

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