THESIS ON

A STUDY OF EMERGING TRENDS IN TWO-WHEELER MARKETS OF INDIA WITH SPECIAL REFERENCE TO MOTORCYCLES

SUBMITTED BY: MEGHA JAIN ALUMNI ID NUMBER: TS12-M-166 BATCH: ISBE-B SS10-12/SM1

SUBMITTED TO: PROF.CHARANPAL SINGH

ABSTRACT

The Indian two-wheeler industry has come long way since its humble beginning in 1948 when Bajaj Auto started importing and selling Vespa Scooters in India. Since then, the customer preferences have changed in favour of motorcycles and gearless scooterettes that score higher on technology, fuel economy and aesthetic appeal, at the expense of metal-bodied geared scooters and mopeds. These changes in customer preferences have had an impact on fortunes of the players. The erstwhile leaders have either perished or have significantly lost market share, whereas new leaders have emerged.

Rising income levels, reducing excise duties, higher loan tenure and loan-to-value offered by the financing companies have all fuelled the growth of two-wheeler sales in the country. Besides, mounting traffic chaos and limited parking space has also increased the demand for two-wheelers from households that can afford or actually do own a car. Furthermore, with increasing women working population, changing social philosophy and broad-mindedness, the penetration of two-wheelers that is currently at abysmally low level is expected to increase significantly going forward.

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TOPIC APPROVAL LETTER ISBE B (SS 10-12 ) PROJECT THESIS TOPIC APPROVAL
Dear MEGHA JAIN, This is to inform you that the approved topic for project thesis is - EMERGING TRENDS IN TWO-WHEELER MARKET OF INDIA WITH SPECIAL REFERENCE TO MOTORCYCLES. This email is an official confirmation that you would be doing your project thesis work genuinely and shall try to achieve the said objectives mentioned in the synopsis. You must always use the thesis title as approved and registered with us. Your project thesis id Number is TS12-M-166. You are required to correspond with your Internal Guide MR.CHARANPAL SINGH (charanpal.singh@iipm.edu) at regular intervals before sending the thesis final draft to him.

Regards,

Dipti Sharma
The Indian Institute of Planning and Management dipti.sharma@iipm.edu Phone: 011 42789995

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THESIS SYNOPSIS
Name Batch Section Contact no. Email_id Ku.megha@gmail.com Megha Jain ISBE-B, SS 10-12 SM-1

Thesis Topic: A study of Emerging trends in two-wheeler markets of India with special Reference to motorcycles Specialization: Marketing

Introduction: India is seeing the penetration of two wheelers increasing at a rapid place driven by the rise in the household incomes, reducing trend in excise duties & hitherto easy availability of two-wheeler finance. Research Objectives: a. To view the satisfaction level of customers for two-wheelers industries. b. To study the future of Motorcycles in Indian Market. c. To study the consumer buying behavior regarding motorcycles. d. Consumer Perception regarding brands

Research methodology: Secondary data Internet, Newspapers, Books, Magazines etc.

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Primary data- Tool used, Sampling method, sample size, Target Audience Questionnaires, Brands covered- Bajaj, Honda, TVS, Suzuki, Yamaha etc, Simple random Sampling used, Sample size-200, respondent, (Noida & Gurgaon) Target Area- New Delhi

Justification of choosing the topic: As I am very passionate about bikes & love to go in automobile sector, as I feel by doing this project work on motorcycle I will increase my knowledge more, practically & it will benefit me in future.

Summer training details: Topic: Studied the consumer buying Behavior of Godrej Appliances. Company name: Godrej & boyce Mfg.co.ltd, Jaipur Area of specialization: Marketing.

ACKNOWLEDGEMENT
The satiation and euphonies that accompany the success completion of a task would be incomplete without a mention of people who made it possible. So, with massive gratitude, I acknowledge all those, whose guidance and encouragement served as a beacon light and crowned my effort with success. It is entrenched fact that behind every achievement lays an unfathomable aquatic of gratitude to those who have extended their support and without whom the project would ever have come into existence. I express my gratitude to IIPM, New Delhi for providing me an opportunity to work on this thesis as a part of the curriculum. I would also like to thank Prof. Charanpal Singh for his guidance and support for the completion of my thesis project work.

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TABLE OF CONTENT

ABSTRACT ...................................................................................................................ii TOPIC APPROVAL LETTER .................................................................................... iii SYNOPSIS .................................................................................................................... iv ACKNOWLEDGMENT............................................................................................... vi TABLE OF CONTENTS .............................................................................................vii

INTRODUCTION ........................................................................................................ 1 INDUSTRY PROFILE .................................................................................................. 2 MAJOR PLAYERS IN THE INDUSTRY .................................................................. 19 RESEARCH OBJECTIVES ........ 25 RESEARCH METHODOLOGY................................................................................. 26 DATA ANALYSIS.. ................................ 27 CONCLUSION ............ 38 RECOMMENDATION ........... 41 BIBLIOGRAPHY .................................................................................................... ...42 ANNEXURE................................................................................................................ 43

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LIST OF TABLES

TABLE 1 TABLE 2 TABLE 3 TABLE 4 TABLE 4 TABLE 5 TABLE 6 TABLE 7 TABLE 9 TABLE 10 TABLE 11

27 28 29 30 31 32 33 34 35 36 37

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LIST OF FIGURES

FIG 1 FIG 2 FIG 3 FIG 4 FIG 4 FIG 5 FIG 6 FIG 7 FIG 9 FIG 10 FIG 11

27 28 29 30 31 32 33 34 35 36 37

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INTRODUCTION

The Indian automotive industry consists of five segments: commercial vehicles; multi-utility vehicles & passenger cars; two-wheelers; three-wheelers; and tractors. With 5,822,963 units sold in the domestic market and 453,591 units exported during the first nine months of FY2005 (9MFY2005), the industry (excluding tractors) marked a growth of 17% over the corresponding previous. The two-wheeler sales have witnessed a spectacular growth trend since the mid nineties. Automobile is one of the largest industries in global market. Being the leader in product and process technologies in the manufacturing sector, it has been recognised as one of the drivers of economic growth. During the last decade, well-directed efforts have been made to provide a new look to the automobile policy for realising the sector's full potential for the economy. Steps like abolition of licensing, removal of quantitative restrictions and initiatives to bring the policy framework in consonance with WTO requirements have set the industry in a progressive track. Removal of the restrictive environment has helped restructuring, and enabled industry to absorb new technologies, aligning itself with the global development and also to realise its potential in the country. The liberalisation policies have led to continuous increase in competition which has ultimately resulted in modernisation in line with the global standards as well as in substantial cut in prices. Aggressive marketing by the auto finance companies have also played a significant role in boosting automobile demand, especially from the population in the middle income group.

INDUSTRY PROFILE
The Indian Two Wheeler Industry The Indian two wheeler sector contributes the largest volumes amongst all the segments in automobile Industry. Though the segment can be broadly categorized in to 3-sub segments viz; scooters, motorcycles and mopeds; some categories introduced in the market are a combination of two or more segments e.g. scooter and stepthrus. The market primarily comprises five players in the two wheeler segment with most of the companies having foreign collaborations with well known Japanese firms earlier. But with most of the companies now planning 100% subsidiaries in India. In the last four to five years, the two-wheeler market has witnessed a market shift towards motor cycles at the expense of scooters. In the rural areas, consumers have come to prefer sturdier bikes to with stand the bad road conditions. In the process of the share of motor cycle segment has grown from 48% to 58%, the share of scooters declined drastically from 33% to 25%, while that of mopeds declined by 2% from 19% to 17% during the year 2007-08. All new vehicles are a now being replaced by 4 stock motorcycles. Reduced excise duties and fierce competition has led to a fall in prices of certain models. Hero, a name synonymous with two wheelers in India, began its journey around four decades ago. Starting as a manufacturer of by cycle components, hero has today grown into a multiunit, multi-product, geographically diversified group of companies. The hero group began with simple Philosophy: to provide excellent transportation to the common man, at a price he could easily afford. Even today the dream providing the total satisfaction is all its sphere of activity. To consumers, in excellent products at an affordable price; a thorough understanding the fast changing consumer understanding the fast changing consumer behaviour, new market segment and opportunities, and marketing mix sensitive changing customer needs from the core of Heros marketing strategy and philosophy. Hero Honda Motors Ltd. is one of the leading companies in the two wheeler Industry. At present, it is segment with around 47% the market share during financial yr. 200001. The company has emerged one of the most of successful players, much ahead of it
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competitors by it superior and reliable product quality complemented with excellent marketing techniques. Hero Honda has been an early entrant in the 4-stroke segment of the two wheeler industry. With a right mix of product styling and pricing the company has graped the 4-stoke market as compared to Bajaj Auto and TVS. TVS Motors Ltd has been the largest manufacturer of mopeds which are prevalent as a low cost transportations and provide a tremendous potential is all parts of India. However the company is likely to face threat Bajaj Auto Ltd (BAL) which continued its price based competitions and Honda Motorcycle and Scooter Ltd. a new entrants in the 2 wheeler market. Infact the company has achieved excelled the Industry growth rates by a huge margin. From April to December 2008 while the motor cycle industry sales were upto 38.68% TVS motors sales surged by a whopping 73.6% sat more importantly it is the success of its model Victor. Baja Auto has continued with its impressive performance witnessing significant growth is the motor cycle and three wheeler segments. Based on the performance fill data one can expect the company to meet it excellence by FY09. Hero Honda is the largest player is the motorcycle segment. Focused on contemporary design and style, the company has a compare leusine ranges bikes viz; CD-100 DX CD-100 SS Splendor Street Smart Steek CBZ Passion

It splendor model is an urban centric with its fuel efficiency which accounts to over 60-70% of its sales. The passion launched in mid Jan. 2001 has a resending success contributing to 26% of its sales. TVS offers a wide ranges of two-wheelers motorcycles- Victor/Fiero/Max100/ max100R/Max DL. Scooterette- TVS scooty Moped- chap/XL/XL super/XL supper HD/sports. TVS plans to launch 4 new models in the coming 15 months. A 4-stroke version of Indias best selling scooterttes; TVS-scooty and 4-stroke version of the existing moped line will be launched this year. Bajaj Auto Ltd: Offer product a service to the customers so as to satisfy their needs. Its having 4-stroke single cylinder natural air cool the displacement of engine is 111.6 CC having the engine power it 7-7 bhp at 7000 spm. The bike is having a hydrometric disc brake in front wheel. Flash is an added future in the bike. In 1993 BAL manufactured 12 different model 5-5 scooter model, 3-motorcycle model, moped model, 3-three wheeler model. But in the recent year Bajaj developed various model in the motorcycle segment which providing good riding conditions is urban road as well as rater roads. Scootercub/super/super FE/chetak/stride/Msl Priya. Moped- Bajaj Sunny. Motorcycle- M-80/kawasaki RTZ/Kawasaki45 by 1993 and latest model are. Eliminator/Pulsor 180/Pulsor 150/Boxer/Caliber Crowa/Caliber Sales performance of the player: Hero Honda repeated a y-o-y growth of 6.3% is its motorcycle sales for the month of Jan 2006 at 1,45,708 units. Export during the month have surged almost 64% y-o-y. On a month on-month basis the sales growth has been even higher up 16.5%.

MOTORCYCL E INDUSTRY SALE INDUSTRY SALE MARKET SHARE

APRIL 2009 2897842

TO

DEC

APRIL TO DEC 2008 2089637

% CHANGE

38.68

1281342

1026102

24.85

44.21

49.11

Bajaj Auto: Bajaj auto has reported y-o-y growth of 19.8% in motorcycle sales for Jan 2006 at 75059 units. On a month-on-month basis the growth is 8.8%. Export performance continues to be impressive with 10,089 two and three wheelers exported in Jan 2006, a growth of 98.6% y-o-y. Two wheeler sales for the current year are up 6.8%. The growth is driven sharply in the motor cycle sales up to 37% in two wheeler segment, the share of motor cycle has jumped from 52.8% to 67.8% during the current year. this sharp growth in the motor cycle can be attributed to the positive response received by its need products and the encouraging performance of select existing model. SALES (UNITS) JAN 10 JAN 09 % CHANG E SCOOTERS (GEARED) SCOOTERUNGEARED STEPTHRUS MOTORCYCLE TOTAL WHEELER THREE WHEELERS TOTAL 121608 117421 3.57 1220293 1122334 8.73 17426 14405 20.97 163359 132864 22.95 4563 75059 2- 104182 5810 62640 103016 -21.46 19.83 1.13 47636 717397 1056934 59576 523508 989470 -20.04 37.04 6.82 4349 4333 0.37 56072 57686 2.80 20211 30233 -33.15 235829 348700 APRJAN 10 APRJAN 09 % CHAN GE -32.37

India is the second largest manufacturer and producer of two wheelers in the world. It stands next only to Japan and China in terms of the number of two-wheelers produced and domestic sales respectively. This distinction was achieved due to variety of reasons like restrictive policy followed by the Government of India towards the passenger car industry, rising demand for personal transport, inefficiency in the public transportation system etc. The Indian two-wheeler industry made a small beginning in the early 50s when Automobile Products of India (API) started manufacturing scooters in the country. Until 1958, API and Enfield were the sole producers. In 1948, Bajaj Auto began trading in imported Vespa Scooters and three-wheelers. Finally, in 1960, it set up a shop to manufacture them in technical collaboration with Piaggio of Italy. The agreement expired in 1971. In the initial stages, the scooter segment was dominated by API, it was later overtaken by Bajaj Auto. Although various government and private enterprises entered the fray for scooters, the only new player that has lasted till today is LML. Under the regulated regime, foreign companies were not allowed to operate in India. It was a complete seller market with the waiting period for getting a scooter from Bajaj Auto being as high as 12 years. The Motorcycles segment was no different, with only three manufacturers viz Enfield, ideal Jawa and Escorts. While Enfield bullet was a four stroke bike, Jawa and the Rajdoot were two-stroke bikes. The motorcycle segment was initially dominated by Enfield 350cc bikes and Escorts 175cc bike. The two wheeler market was opened to foreign competition in the mid-80s. And the then market leaders- Escorts and Enfield were caught unaware by the onslaught of the 100cc bikes of the four Indo-Japanese joint ventures. With the availability of fuel efficient low power bikes, demand swelled, resulting in Hero Honda then the only producer of four stroke bikes (100cc category), gaining a top slot. The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and Hero Honda brought in the first two-stroke and four stroke engine motorcycles respectively. These two players initially started with assembly of CKD kits, and later
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on progressed to indigenous manufacturing. In the 90s the major growth for motorcycle segment was brought in by Japanese motorcycles, which grew at a rate of nearly 25% CAGR in the last five years. The Industry had a smooth ride in the 50s, 60s and 70s when the Government prohibited new entries and strictly controlled capacity expansion. The industry saw a sudden growth in the 80s. the industry witnessed a steady growth of 14% leading to a peak volume of 1.9mn vehicles in 1990. The entry of Kinetic Honda in mid-eighties with a variometric scooter helped in providing ease of use to the scooter owners. This helped in inducing youngsters and working women, towards buying scooters, who were earlier inclined towards moped purchases. In the 90s, this trend was reversed with the introduction of scooterettes. In line with this, the scooter segment has consistently lost its part of the market share in the two-wheeler market. In 1990, the entire automobile industry saw a drastic fall in demand. This resulted in a decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4 mn vehicles. Barring Hero Honda, all the major producers suffered from recession in FY93 and FY94. Hero Honda showed a marginal decline in 1992. The reasons for recession in the sector were the incessant rise in fuel prices, high input costs and reduced purchasing power due to significant rise in general price level and credit crunch in consumer financing. Factors like increased production in 1992, due to new entrants coupled with the recession in the industry resulted in companies either reporting looses or a fall in profits. India is one of the very few countries manufacturing three- wheelers in the world. It is the worlds largest manufacturer and seller of three-wheelers. Bajaj Auto commands a monopoly in the domestic market with a market share of above 80%, the rest is shared by Bajaj Tempo, Greaves Ltd and Scooters India. The total number of registered two wheelers and three-wheelers on road in India, as on March 31, 1998 was 27.9mn and 1.7mn respectively. The two wheeler population has almost doubled in 1996 from a base of .6mn in 1990.

Automobile Industry in India TVS Centra crosses an astounding 20,000 sales mark in 40 days Hosur, March 6, 2006: TVS Motor Company today announced that the sales of TVS Centra, powered by the indigenously developed Variable Timing Intelligent (VT-i) engine technology crossed 20,000 units in just 40 days since its launch in mid January 2004, the best ever clocked by any new product from the TVS Motor Company stable. This achievement is expected to spiral the overall growth of TVS Motorcycles sales in the coming months. The impressive sales figures reflect the customer's faith in the technological capability of TVS Motor Company to fully live up to its promise of delivering a world-class product at an affordable price. Due to excellent customer feedback across the country, TVS dealers are being pressurised with enquiries on the new 100 CC 4 Stroke Centra and its revolutionary VT-i engine technology. Having caught the public's imagination, TVS Centra has fully lived up to its promise of a 'Fill it Once a Month Bike' where a full tank of petrol lasts for a month based on the average use of motorcycle customers. A panel of leading auto experts in India, after having tested TVS Centra, have endorsed the fact that it was the 'best in its class' and also commended TVS Motor Company on its technology prowess and innovation. TVS Centra is powered by VT-i engines which are designed to deliver superb performance on fuel efficiency and torque delivery based on three fundamental actions namely variable ignition timing and superior combustion of fuel, friction reduction and fuel wastage reduction. Added to its technological edge are features that include attractive price, fuel efficiency, low maintenance, contemporary style, ride comfort and backed by TVS Motor Company's reliability, making it truly the preferred two-wheeler in its class. Chennai, January 5, 2004: India's leading two wheeler major, TVS Motor Company's commitment to produce the best technology in its products for its customers has led to the launch of TVS Centra with Variable Timing intelligent engines (VT-i), a 100 CC 4 Stroke motorcycle targeted at the Popular Segment. This revolutionary new VT-i engine technology, developed indigenously by TVS Motor Company, inbuilt into TVS Centra will make it the most fuel-efficient
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motorcycle in the Country. It will be rightfully called as the 'Fill it Once a Month Bike' where a full tank of petrol will last for a month based on the average use of motorcycle customers. The VT-i Engines by TVS Motor Company will go down in the history of the Automobile Industry in India as one of the most innovative technology developed indigenously. The VT-i engines are designed to deliver superb performance on fuel efficiency and torque delivery based on three fundamental actions namely variable ignition timing and superior combustion of fuel, friction reduction and fuel wastage reduction. This action facilitates deceleration fuel cut off, faster warm up of the Engine and has four curve ignition mapping Like all TVS Motor Company products, TVS Centra too has been engineered and designed keeping in mind extensive customer feedback and changing customer needs. TVS Centra will be the first motorcycle in India that will bundle price, mileage, maintenance, style, reliability, power, ruggedness and ride comfort making it truly a value for money personal transportation two-wheeler. Those who want all these performance attributes in a commuter motorcycle at a great price; nothing will beat the TVS Centra for all the advantages it offers. TVS Centra is built around to give a mileage that will offer atleast 10 per cent more than any other motorcycle in the country, today. It will be powered by 7.5 Brake HorsePower (Bhp) at 7250 RPM making it the most powerful motorcycle in its class. TVS Centra will also be known for its nimble handling and riding comfort enabling easy maneuvering even in busy city traffic. Its contemporary style with big muscular tank and well-rounded looks with a horizontal engine and superior ergonomics will mark a new standard in the popular segment of two wheelers. It will come with Econometer to keep a check on the mileage / power ratio, wide and skid free seat and Utility space. Victor the Saviour TVS launched Victor 110 cc model in September 2001, with leading cricketer Sachin Tendulkar as the brand ambassador the model has proved to be a big success. The success of TVS Victor is especially significant because it was developed with indigenous technology.
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Two stroke Max Range On the way out The company is currently looking forward to phase out its two stroke Max range, which is perceived to be less fuel efficient with a new four stroke range. The change over is expected to take place by the end of June 2010. Two new launches could out TVS on a high growth trajectory TVS Centra TVS Centra a new 100 cc model has recently been launched and the company has set ambitions targets of achieving monthly sales in the range of 15000-20000 bikes per month. Also, a new upgraded 125 cc TVS Victor has been launched which will improve the trajectory of the company. Three Wheeler Project- Entering A New Market TVS Motor has set the stage for entry into the three-wheeler markets with the setting up of a new plant at Nanjangud, near Mysore in Karnataka. We understand that the company would be targeting the sub-one ton passenger and goods carriers segment of the market. With an investment of about Rs 50 crore in phase-1, it will cater to both passenger and cargo segments. The total investments for the three wheeler and four-wheeler quardricycle project are expected to be in the range of Rs 500 crore in the next twothree years. It plans to go with petrol version of three wheelers and expects higher demand to come from B class towns. The company expects higher margin and low competition in three-wheeler business as compared to its two-wheeler business. Three wheeler sales have grown at a CAGR of 7% over the last 9 years to 2.26 lakh units FY 03, and are expected to grow at the same rate for the next five years. TVS is expected to roll out its first three-wheeler by the end of FY05 to garner a 30% market share with around 100,000 unit sales by the end of FY08. Three-Wheeler Market Scenario These are two main segments in the Indian passenger three -wheeler markets are:

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Number of seats including driver not exceeding 4 and maximum max not exceeding 1 tonne. Number of seats including driver excluding 4 but not exceeding 7 max mass not exceeding 1.5 tonnes.

The three-wheeler goods carrier segments are: Maximum mass not exceeding 1 tonne Others. Around 95% of the three-wheeler sold in India belong to the smaller vehicles category in which Bajaj Auto is the major player and has around 90% market share. The other players in the segment are Atul Auto and Piaggio group, Italy. Similarly, in the three-wheeler segment, domestic sales of the goods carrying variety grew a whopping 46.95%. This growth in 2006-07 could have possibly come from two factors. The increasing number of cities whose corporations have legislated that larger goods carrier, like trucks be kept out for logistics purpose. The increase in the number of offerings in this category, especially from companies such as Mahindra & Mahindra and Piaggio vehicles pvt. Ltd.

Quardricycle-A new introduction in the Indian market There is a new challenger emerging in the Quardricycle segment. These new vehicles could impact on the entry level sales. These new vehicle could impact on the entry level sales. Quardricycles are three wheelers converted into four wheelers by using, a column axle. All the major three-wheeler units have prepared Quardricycles prototypes. Plans setting up manufacturing units in Indonesia / Vietnam TVS motor is actively looking to set up a foothold in the south east Asian markets and has made top level visits to Indonesia & Vietnam. Indonesia is the third largest twowheeler market in the world with an estimated size this year of two million units. Presently in Indonesia there is one motorcycle for every 15 people, in Vietnam one for every seven people. Further in Indonesia forty million households, representing 86% of the total not having a motorcycle.
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Merger of engine components Division of Lakshmi Auto components with TVS Motor: TVS motor would merge engine component division of Lakshmi Auto Component Ltd. (LAC) and investments and other assests with itself and the dwap ratio has been fixed at once phase of TVS motor for every seven share held as consideration for the merger. Presently TVS motor holds 66.5% of equity capital of LAC, which would be cancelled. Around 66% of LACs sales come from the engine components division, mode of which is currently being sold to TVS motor. LACs total net sales in HI FY 09 were Rs. 69 crore and made anet profit of Rs. 10.5 crore.. The Plastics and Rubber components division of LAC will be transferred to the wholly owned subsidiary company, Sundaram Auto Components Ltd. The total consideration on slump sale based is Rs. 12.25 crore. Strong focus on R&D The company has put in place a strong R & D team consisting 400 engineers & is spending about 3% of its turnover on R & D every year and has in the process setup a strong world class facility for product design and development. During 2006-07, the company applied for 16 patents & published five technical research papers in international conference. Modified research projects are carried in association with leading international research labs and Indian institutes. R & D as percentage of sales in expected to increase from 1.5% in FY o2 to 3.2% in FY 09. Valuation The companys valuations are dependent on five events: Current four businesses grow at the normal industry growth rates. New product launches achieve their targets and are well accepted by the market. Three wheeler foray achieve targeted volume in the desired rates of return on capital employed. Quadricycle foray achieve the desired rate of return on the capital employed. Overall investment returns.

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In TVS motor company VICTOR is the most popular bike and very interestingly without any media interaction FIERO F2 has taken the 2nd spot with CENTRA on the 3rd spot which has taken a lead with only one place from MAX-R .It is recommended that FIERO F2 should be given equal sales promotion than CENTRA because of its popularity has come through people network and not through channel media.

The respondents have liked the service facility and the staff but the important factor is the lack of space. The dealership in DELHI has to improve the staff as well as the after sales services and the customer relations. With the Indian Government clearly outlining the rules for the trade, the arena now remains restricted to scooters, mopeds, and above 250 cc motorcycle segments. The portion of the market that directly stands exposed to competition measures around 42 percent in unit terms. Two and three-wheelers sector was the first to be de-controlled from the clutches of government regulations. This has resulted in the entry of world majors and subsequent in technology and equity participation with Indian players. This has lead to technology revolution for the two-wheelers in 1980's. The regulation of safety of the rider is controlled by state government notifications, these vary in different states. For example helmets are compulsory for two-wheeler riders in New Delhi and some other states. The same is optional in Maharashtra and Karnataka. India is the 2nd largest manufacturer and producer of two wheelers in the world. It stands next only to Japan and China in terms of the no. of two wheelers produced and domestic sales respectively. This distinction was achieved due to variety of reasons like restrictive policy followed by the government of India towards the passenger car industry, rising demand for personal transport, in efficiency in the public terms partition system etc. The Indian two wheeler industry made a small beginning in the early 50s when automobile products of India (API) started manufacturing scooters in the country. Until 1958 API and infield were the sale producers.

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In 1948 Bajaj Auto began trading in imported Vespa scooters and three wheelers. Finally in 1960 it set up a shop to manufacture them is teachable collaboration with piaggio of Italy. The agreement expired in 1971. In the Initial stages, the scooter segment was dominated by API, it was later over taken by Bajaj Auto. Although various government and private enterprises entered the tray of scooters, the only new player lasted till today is LML. Under the regulated regime, foreign companies were not allowed to operate in India. It was a complete seller market waiting period for getting a scooter from Bajaj Auto being as high as twelve years The motor cycle segment was no different, with only three manufacturers Viz infield, Ideal Jawa and escorts. While Enfield bullet was a for stroke bike, Jawa and Rajdoot were two stroke bikes. The motor cycle segment was initially dominated by Enfield 350cc bikes and Escort 175cc bike. The two wheeler market was open to foreign competition in the mid-80s. And the then market leaders- Escorts and Enfield were caught unaware by the onslaught of the 100cc bikes of the four Indo-Japanese joint venture. With availability of fuel efficient low power bikes, demand swelled, resulting in Hero-Honda then the only producer of four stroke bikes (100cc category), gaining a top slot. The first Japanese motor cycle were introduced in the early eighties. TVS Suzuki and Hero Honda brought in the first two stroke and four stroke engine motorcycle respectively. These two players initially started with assembly of CKD Kits, and latter on progressed to indigenous manufacturing. In the 90s the major growth for motorcycle segment was brought in by Japanese motor cycles, which grew at a rate of nearly 25% companys annual growth rate in the last five years. The industry had a smooth ride in the 50s, 60s and 70s when the government prohibited new entries and stretchy controlled capacity expansion. The industry saw a sudden growth in the 80s. The industry witnessed a steady growth of 14% leading to a peak volume of 1.9mm vehicle in 1990. The entry of kinetic Honda scooter helped in providing case of use to the scooter owners. This helped in including youngster and working women, towards buying scooters, who were earlier inclined towards moped purchases. In the 90s, this travel
14

was reversed with the introduction of scooterettes. In line with this the scooter segment has consistently lost its part of the market share in the two wheeler market. In 1990, the entire automobile industry saw a drastic fall in demand. this resulted in a decline of 15% in 1991 and 8% in 1992 resulting in a production loss of 0.4 mn vehicles. Barring Hero Honda, all the major producers suffered from recession in FY93 and FY 194. Hero Honda showed a marginal decline in 1992. The reason for recession in the scooter were the incessant rise in fuel price, high input costs and reduced purchasing power due to significant rise in general price level and crunch in consumer financing. Factors like increased production in 1992, due to new entrants coupled with the recession in the industry resulted in companies either reporting looses or a fall in profits. India is one of the very few countries manufacturing three wheelers in the world. It is the worlds largest manufacturer and seller of three-wheelers. Bajaj auto commands a monopoly in the domestic market with a market share of above 80% the rest in shared by Bajaj Tempo, Greaves Ltd and scooters India. The total no of registered two wheeler and three-wheelers on road in India, as on March 31, 1998 was 27.9 mn and 1.7mn respectively. The two wheeler population has almost doubled in 1996 from a base of .6 mn in 2000. The field of consumer behaviour is so dynamic which we have to keep in mind that behaviour of consumer is committed to the sprit of diversity i.e. the diversities of new points (distinctive theories and concept), diversity of focus (strategic vs consumer), diversity of methods (qualitative vs quantitative). People differ not only is the usual ways by age and gender, by race and nationality, by education and occupation, by marital status and living arrangements but also in their activities and interest, their preference and opinions. As true believers in marketing concept we have tried our best to focus the needs, and behaviour of consumers by providing a readable text that clearly explains the relevant concepts upon which the discipline of consumer behaviour is based, and demonstrate how consumer behaviour concepts are used by marketing practitioner to develop and implement effective marketing strategies.
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In this project I have tried to demonstrate how individual consumer behaves in purchase particular brand of motor bike. Their pre-purchase behaviour, then decision to purchase and then past purchase action; marketing mix strategy adopted by the player keeping in view of pattern of consumer behaviour is main aspect in my work. In this way I have made highlight the historical background as well as their product development according to the need of the customer. Consumer lay a vital role in the health of economy because their decisions effects the demand, production and the success of some industries and failure of other. Thus the consumer behaviour is an integral factor and flow of all business in consumer oriented society. HISTORICAL DEVELOPMENT OF MAJOR PLAYER India is the 2nd largest manufacturer and producer of two wheelers in the world. It stands next only to Japan and China in terms of the no. of two wheelers produced and domestic sales respectively. This distinction was achieved due to variety of reasons like restrictive policy followed by the government of India towards the passenger car industry, rising demand for personal transport, in efficiency in the public terms partition system etc. The Indian two wheeler industry made a small beginning in the early 50s when automobile products of India (API) started manufacturing scooters in the country. Until 1958 API and infield were the sale producers. In 1948 Bajaj Auto began trading in imported Vespa scooters and three wheelers. Finally in 1960 it set up a shop to manufacture them is teachable collaboration with piaggio of Italy. The agreement expired in 1971. In the Initial stages, the scooter segment was dominated by API, it was later over taken by Bajaj Auto. Although various government and private enterprises entered the tray of scooters, the only new player lasted till today is LML. Under the regulated regime, foreign companies were not allowed to operate in India. It was a complete seller market waiting period for getting a scooter from Bajaj Auto being as high as twelve years

16

The motor cycle segment was no different, with only three manufacturers Viz infield, Ideal Jawa and escorts. While Enfield bullet was a for stroke bike, Jawa and Rajdoot were two stroke bikes. The motor cycle segment was initially dominated by Enfield 350cc bikes and Escort 175cc bike. The two wheeler market was open to foreign competition in the mid-80s. And the then market leaders- Escorts and Enfield were caught unaware by the onslaught of the 100cc bikes of the four Indo-Japanese joint venture. With availability of fuel efficient low power bikes, demand swelled, resulting in Hero-Honda then the only producer of four stroke bikes (100cc category), gaining a top slot. The first Japanese motor cycle were introduced in the early eighties. TVS Suzuki and Hero Honda brought in the first two stroke and four stroke engine motorcycle respectively. These two players initially started with assembly of CKD Kits, and latter on progressed to indigenous manufacturing. In the 90s the major growth for motorcycle segment was brought in by Japanese motor cycles, which grew at a rate of nearly 25% companys annual growth rate in the last five years. The industry had a smooth ride in the 50s, 60s and 70s when the government prohibited new entries and stretchy controlled capacity expansion. The industry saw a sudden growth in the 80s. The industry witnessed a steady growth of 14% leading to a peak volume of 1.9mm vehicle in 1990. The entry of kinetic Honda scooter helped in providing case of use to the scooter owners. This helped in including youngster and working women, towards buying scooters, who were earlier inclined towards moped purchases. In the 90s, this travel was reversed with the introduction of scooterettes. In line with this the scooter segment has consistently lost its part of the market share in the two wheeler market. In 1990, the entire automobile industry saw a drastic fall in demand. this resulted in a decline of 15% in 1991 and 8% in 1992 resulting in a production loss of 0.4 mn vehicles. Barring Hero Honda, all the major producers suffered from recession in F\Y93 and FY 194. Hero Honda showed a marginal decline in 1992. The reason for recession in the scooter were the incessant rise in fuel price, high input costs and reduced purchasing power due to significant rise in general price level and crunch in consumer financing. Factors like increased production in 1992, due to new
17

entrants coupled with the recession in the industry resulted in companies either reporting looses or a fall in profits. India is one of the very few countries manufacturing three wheelers in the world. It is the worlds largest manufacturer and seller of three-wheelers. Bajaj auto commands a monopoly in the domestic market with a market share of above 80% the rest in shared by Bajaj Tempo, Greaves Ltd and scooters India. The total no of registered two wheeler and three-wheelers on road in India, as on March 31, 1998 was 27.9 mn and 1.7mn respectively. The two wheeler population has almost doubled in 1996 from a base of .6 mn in 2000.

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MAJOR PLAYERS IN THE INDUSTRY

BAJAJ AUTO
Companies like Bajaj Auto, which have a major presence in the geared scooter segment are trying to milk what remains of a shrinking market. Their strategy will be include starting hire-purchase schemes in areas with a population of above 100,000 in the traditional scooter market of the north. Secondly, Bajaj will also plan product specific strategies. The aim would be to excite the buyer by giving him something new in terms of features, technology, specifications and aesthetics. One such effort in this direction was the 4-stroke 'Chetak' scooter with higher fuel efficiency (70 km/ltr) than a traditional 2-stroke one. Another model to be introduced later will be called 'Fusion' with a metallic finish and good power. The company seems confident that the traditional markets for scooters like Punjab, Delhi etc will for the foreseeable future stick to geared scooters as the product has come to signify a certain value proposition which will be difficult to beat by other kinds of two-wheelers. Taking into account the various factors, we expect sales in the geared scooter segment to fall by around 20%yoy in FY01 while that of the scooterette segment to grow by around 30%yoy. With a four stroke 111.6 cc engine and Maximum Net Power of 7.7 HP, and a keep weight of 101 kg, Bajaj Calibre is capable of proving a tough competitor to Hero motor corp. Passion.

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HERO MOTOR CORP.

Hero motor corp. Motors Ltd (HHML) has launched a new 100cc motorcycle named `Passion'. The company has said that the new two-wheeler will incorporate enhanced functionality along with HHML's combined strengths of riding comfort and fuel efficiency. This bike has been specially designed, keeping in mind contemporary styling, functionality and safety. With a four-stroke 100cc engine, power of 7.5 PS at 8,000 rpm, and a kerb weight of 116 kg, Passion is a combination of style and fuel efficiency. The most striking feature of this brand lies in its being endowed with a wide range of attractive, catchy choices for its buyers. To put it straight, it will be available in six colours and would give 60 to 65 km per litre under city riding conditions. HHML has also said that the new bike meets not just the current emission norms, but also has a specially-designed silencer to meet the expected noise norms. The vehicle was launched recently in a dealer conference in Agra, late last week. The company is targetting sales of the new bike from the younger generation. The product offerings from Hero motor corp. include the CD 100, CD 100SS, the Splendor, Street Smart and CBZ, in addition to the new bike. HHML has a market share of 47 per cent in motorcycles. There are over four million Hero motor corp. motorcycles on the road currently. HHML is also the largest producer of motorcycles among all Honda companies in the world. Splendor is the single largest selling two wheeler model worldwide. The company is expected to achieve over Rs 3,000 crore as turnover and cross the one-million motorcycles mark in the current financial year.

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TVS MOTOR COMPANY

TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the top ten in the world, with annual turnover of more than USD 1 billion in 2008-2009, and is the flagship company of the USD 4 billion TVS Group.

TVS Motor Company - Mission We are committed to being a highly profitable, socially responsible, and leading manufacturer of high value for money, environmentally friendly, lifetime personal transportation products under the TVS brand, for customers predominantly in Asian markets and to provide fulfilment and prosperity for employees, dealers and suppliers.

Vision Statement TVS Motor - Driven by the customer TVS Motor will be responsive to customer requirements consonant with its core competence and profitability. TVS Motor will provide total customer satisfaction by giving the customer the right product, at the right price, at the right time.

TVS Motor - The Industry Leader TVS Motor will be one among the top two two-wheeler manufacturers in India and one among the top five two-wheeler manufacturers in Asia.

TVS Motor - Global overview TVS Motor will have profitable operations overseas especially in Asian markets, capitalizing on the expertise developed in the areas of manufacturing, technology and marketing. The thrust will be to achieve a significant share for international business in the total turnover.

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TVS Motor - At the cutting edge TVS Motor will hone and sustain its cutting edge of technology by constant benchmarking against international leaders.

TVS Motor - Committed to Total Quality TVS Motor is committed to achieving a self-reviewing organization in perpetuity by adopting TQM as a way of life. TVS Motor believes in the importance of the process. People and projects will be evaluated both by their end results and the process adopted.

TVS Motor - The Human Factor TVS Motor believes that people make an organization and that its well-being is dependent on the commitment and growth of its people. There will be a sustained effort through systematic training and planning career growth to develop employees talents and enhance job satisfaction. TVS Motor will create an enabling ambience where the maximum self-actualisation of every employee is achieved. TVS Motor will support and encourage the process of self-renewal in all its employees and nurture their sense of self worth.

TVS Motor - Responsible Corporate Citizen TVS Motor firmly believes in the integration of Safety, Health and Environmental aspects with all business activities and ensure protection of employees and environment including development of surrounding communities. TVS Motor strives for long-term relationships of mutual trust and interdependence with its customers, employees, dealers and suppliers.

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YAMAHA MOTOR PVT. LTD.

About India Yamaha Motor Pvt. Ltd. Yamaha made its initial foray into India in 1985. Subsequently, it entered into a 50:50 joint-venture with the Escorts Group in 1996. However, in August 2001, Yamaha acquired its remaining stake becoming a 100% subsidiary of Yamaha Motor Co., Ltd, Japan (YMC). In 2008, Mitsui & Co., Ltd. entered into an agreement with YMC to become a joint-investor in the motorcycle manufacturing company "India Yamaha Motor Private Limited (IYM)". IYM operates from its state-of-the-art manufacturing units at Surajpur in Uttar Pradesh and Faridabad in Haryana and produces motorcycles for both domestic and export markets. With a strong workforce of more than 2,000 employees, IYM is highly customer-driven and has a countrywide network of over 400 dealers. Presently, its product portfolio includes VMAX (1,679cc), MT01 (1,670cc), YZF-R1 (998cc), FZ1(998cc), YZF-R15 version 2.0 (150cc), Fazer (153cc), FZ-S (153cc), FZ16 (153cc), SZ-R(153cc), SZ & SZ-X (153cc), SS125 (123cc), YBR 125 (123cc), YBR 110 (106cc) and Crux (106cc).

VISION We will establish YAMAHA as the "exclusive & trusted brand" of customers by "creating Kando" (touching their hearts) - the first time and every time with world class products & services delivered by people having "passion for customers".

MISSION We are committed to: Be the Exclusive & Trusted Brand renowned for marketing and manufacturing of YAMAHA products, focusing on serving our customer where we can build long term relationships by raising their lifestyle through performance excellence, proactive
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design & innovative technology. Our innovative solutions will always exceed the changing needs of our customers and provide value added vehicles.

Build the Winning Team with capabilities for success, thriving in a climate for action and delivering results. Our employees are the most valuable assets and we intend to develop them to achieve international level of professionalism with progressive career development. As a good corporate citizen, we will conduct our business ethically and socially in a responsible manner with concerns for the environment.

Grow through continuously innovating our business processes for creating value and knowledge across our customers thereby earning the loyalty of our partners & increasing our stakeholder value.

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RESEARCH OBJECTIVES

a. To view the satisfaction level of customers for two-wheelers industries. b. To study the future of Motorcycles in Indian Market. c. To study the consumer buying behavior regarding motorcycles. d. Consumer Perception regarding brands.

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RESEARCH METHODOLOGY
Research Methodology has many dimensions, it include not only research methods but also considers the logic behind the methods used in the context of the study and explains why only a particular method of technique had been used so that research lend themselves to proper evaluations. Thus in a way it is a written game plan for concluding research therefore in order to solve research problem it is necessary to design a research methodology for the problem as the same differ from problem to problem. Research Design: The research design is a pattern or an outline of a research project . It is a statement only the essential of a study those provide the basic guidelines for the detail of the project. The present study being conducted follows a descriptive research design has the data would be responses from a simple containing g a large numbers of sources .It is a cross section of the situation design of the descriptive studies including the nature and the analytical method.

Data Collection Secondary data Internet, Newspapers, Books, Magazines etc. Primary data- Tool used, Sampling method, sample size, Target Audience Questionnaires, Simple random Sampling used, Sample size-200 respondent, Target Area- New Delhi (Noida & Gurgaon)

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DATA ANALYSIS AND FINDINGS

1. MOTOR BIKE USERS AGE GROUP

TABLE 1 AGE 14-18 18-25 25-35 ABOVE 35 PERCENTAGE (%) 20 60 15 5

FIGURE 1

15%

5%

20%

14-18 18-25

60%

25-35 Above 35

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2. PURPOSE OF PURCHASE OF BIKE?

TABLE 2

COMMUNICATING TO OFFICE COMMUNICATING TO COLLEGE MAINTAINS FRIENDS OTHER PURPOSE

39% 25% 14% 22%

FIGURE 2

22% 14% 25%

39%

Communicating to Office Communicating to College Maintains Friends

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3. MARKET SHARE OF BIKE?

TABLE 3

HERO HONDA BAJAJ SUZUKI YAMAHA OTHERS

40% 32% 12% 11% 5%

FIGURE 3

11% 12%

5% 40% 32%

Hero Honda Bajaj Suzuki Yamaha Others

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4. BRAND AWARENESS MEDIUM?

TABLE 4

TV NEWSPAPER WORD OF MOUTH DEALER EFFORT OTHERS

38% 25% 23% 9% 5%

FIGURE 4

9% 23%

5%
TV

38% 25%

Newspaper Word of mouth Dealer effort Others

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5. PURCHASE INFLUENCER

TABLE 5

QUALITY & FEATURE OF PRODUCT PRICE EASE OF AVAILABILITY BRAND IMAGE OF THE PRODUCT AFTER SALES SERVICE VALUE OF MONEY

15% 10% 15% 24% 32% 4%

FIGURE 5

Quality & feature of product Price

4% 15% 32% 24% 10% 15%

Ease of availability Brand image of the product After sales service Value of money

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6. PHYSICAL FEATURES THAT EFFECTS MOST?

TABLE 6

LOOKS BODY BUILDS STYLE ROBUSTNESS

35% 25% 22% 18%

FIGURE 6

18% 22% 25%

35%

Looks Body builds Style Robustness

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7. PAYMENT MODE FOR PURCHASES

TABLE 7

ONE TIME PAYMENT FINANCIAL OPTION EXCHANGE OFFER OTHERS

15% 65% 12% 8%

FIGURE 7

12%

8% 15% 65%
One time payment Financial option Exchange offer Others

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8. TECHNOLOGICAL FEATURES EFFECT BUYING?

TABLE 8

POWER - ECONOMY MODE MILEAGE FOUR STROKE ENGINE OTHER

22% 48% 18% 12%

FIGURE 8

12% 18% 22% 48%

Power - economy mode Mileage Four stroke engine Other

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9. PURCHASE MADE FROM

TABLE 9

AUTHORIZED DEALER NEAR BY DEALER ONLINE OTHER

47% 33% 13% 7%

FIGURE 9

13% 33%

7% 47%

Authorized dealer Near by dealer Online Other

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10. BETTER AFTER SALES SERVICE BRAND?

TABLE 10

BAJAJ CALIBER PASSION TVS VICTOR AMBITION OTHERS

18% 24% 28% 25% 9%

FIGURE 10

9% 24%

17% 23%

Bajaj Caliber Passion TVS Victor Ambition Others

27%

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11. BIKE PREFER IN FUTURE PURCHASE?

TABLE 11

CALIBER PULSAR PASSION AMBITION OTHER

22% 15% 27% 29% 7%

FIGURE 11

7% 22% 29% 15% 27%

Caliber Pulsar Passion Ambition Other

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CONCLUSION
The motorcycle industry had a perceptible shift from a buyer market to the seller market with the variety of choices. Now the customer even has a plethora of choices to choose the best-suited requirement. All the players, weather be it HHML, Yamaha or any other will have to compete on the basis of many things like attributes, reliability and so on. There is no doubt in the fact that Hero Honda Company rules the motorcycle industry and has a good brand name, but the company will certainly have to initiate some efforts. The company has then highest market share in the motorcycle industry and maintaining such a good share will pose a challenge to the company. The company is doing very well in the business. According to me, no other company can beat this company in the years to come because of its strong brand name in the market. This company would be successful in the years to come as the company has good amount of brand loyal customers. When there is talk of bike, the first thing that comes to mind is Hero Honda because of strong brand image. In our study the main emphasis was towards the marketing mix elements (Product, Place, Price and Promotion). The analysis is totally based on the marketing mix elements. Further for analyzing the market share of the company properly; a survey was conducted which also forms a part of the findings. The two-wheelers market has had a perceptible shift from a buyers market to a sellers market with a variety of choices. Players will have to compete on various fronts viz pricing, technology, product design, productivity, after sale service, marketing and distribution. In the short term, market shares of individual manufacturers are going to be sensitive to capacity, product acceptance, pricing and competitive pressures from other manufacturers The segments, motorcycles have witnessed capacity additions in the last one-year and it will continue in the upcoming period as and when Honda opens a local subsidiary. Over this period, only the motorcycle segment is expected witness higher demand vis-vis supply, while the scooters and mopeds supply will outstrip demand. As incomes grow and people feel the need to own a private means of transport, sales of two-wheelers will rise. Penetration is expected to increase to approximately to more than25% by 2010.

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The motorcycle segment will continue to lead the demand for two-wheelers in the coming years. Motorcycle sales is expected to increase by 20%yoy as compared to 1% growth in the scooter market and 3% by moped sales respectively for the next two-years The four-stroke scooters will add new dimension to the two-wheeler segment in the coming future. Perhaps, the moped segment will be the worst affected due to Y2K emission norms applicable from April 2002 as not many of the present models confirm to the norms The three-wheeler segment will witness 10%yoy growth for the next two years. In spite of entry of Piaggio, Italy into the three-wheeler segment in the country, Bajaj Auto will continue to dominate the segment. In this segment, we would see players shifting from diesel to cleaner fuels like CNG in line with norms set out by various state governments. On surveying hero Honda globalization, it was found that the competetion & price where preferred in the bike comparison with other company. Serviceman and businessman both like this Hero Honda bike, Mileage,4-stroke,4-gear&11.0 BHP. Opinions are all most same. exports to outside India In my survey I found that there are only 05% bike

JOURNEY SO FAR Indian companies had relied heavily on their foreign counterparts for technical support, design of the model etc., while they provided the distribution and branding in the Indian market. Now that the international market for motorcycles is fairly developed and consumers are well aware, most of these foreign manufacturers are planning to enter the market on their own. The inadequacy of the public transportation system, the upwardly mobile middle class, which has the disposable income and the intent to own a two-wheeler and the sheer size of the Pakistan,bangladeshand srilanka market is proving to be an attractive factor to many multinational companies. India's two-wheeler industry is the second largest market in the world after China. Honda Motors, whose tie-up with Hero-Honda is going to expire soon, has already entered the fray with Honda-Activa. Others are also queuing up. Yamaha Corporation, which was operating in India through a joint venture with Escorts Group, had decided to call it quits in mid-2001 by buying off Escorts' 50
39

percent share in the joint venture. Yamaha now plans to tap the Indian market on its own with models such as RX-135, RXZ, YBX125, YD125, and ACE. Its name has become fairly established while the joint venture had been in operation for two decades. On its own now, Yamaha has started implementing its ambitious plans for the Indian market and has embarked on a challenge 21 project, a time-bound initiative that is aimed at reorienting and revitalizing the entire Indian operations in order to achieve a competitive edge. Yamaha has set for itself the target of capturing 21 percent of motorcycle market by 2005. India is one of the few countries where Yamaha, the world's second largest motorcycle manufacturer operates a fully-owned subsidiary.

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RECOMMENDATION
There are no two opinions that the automobile industry is faring very well in the Indian market since the early 90s.However it can perform better in the market of it o The first recommendation is obviously about the customer care. Presently the company has a customer relation department but it has to be made stronger and more service provider to help the customers. o The distribution network should be made stronger so that the customers dont feel dissatisfied for services, sales, and stocks. o This is age of customer delight and the company should not forget that customer is the king o Everywhere there is a game of production and volumes, the company that produces more can save more and prices could be made more competitively o The company should always go for quality o The R & D base should be made stronger as the level of indigestion should come down. After doing market research I would like to suggest or recommend to the Company that there are certain outcomes of research, which followed through the formal and informal procedure during the research. Thus we are bound to draw the attention of Company to certain points which are ought to be perceived by the Company with full care. 1. Publicity and advertisement should be broad, because competition is more. 2. Size and weight of bike should be match with their C.C. 3. Company should follow worldwide strategies for increasing their global revenue. 4. Bike should have stepping facility which may help during critical situation. 5. Company should provide promotional schemes to the customers.

6. All the protective parts of wheels should make of plastic and leg guard also be strong. 7. Now Company is required to recover the faith of customers towards the brand image. 8. Company should improve the mileage of the Bikes. 9. Prices of the Bike must be set as it can be approved by major part of the population.
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BIBLIOGRAPHY
1. Phillip Kottler Marketing management (Prentice-Hall of India Pvt.). 2. Harper W. Bayd, Ralph West Fall, and Stanley F. Stasch Marketing research (AITBS Publisher 7th ed. 2001). 3. A.G. Sawyer and Davied J Howard, Journal of Marketing research 1999. 4. consumer Behaviour by Leon G. Schiffman and Leslie Lazar Kanuk (Fifth edition) 5. Research Methodology by C.R. Kothari (Second Edition) 6. Business world and Business India magazine. 7. Auto India Magazine for two and four wheeler.

INTERNET www.google.com http://encyclopedia.thefreedictionary.com/ http://www.cmsnl.com/news/honda-to-strengthen-structure-of-its-rdoperations_news245.html http://www.etalkindia.com/indian_automobiles_news_forums/new_variant_of _hero_honda_bikes_launchedglamour_fi_and_cd_delux-t3336.0.html http://www.cmsnl.com/search.php www@tvsuzuki.com nvswaminathan@bajajauto,com.

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APPENDICES
QUESTIONNAIRE Motor bike is not a luxury it has become the necessity in 21st century. I would like take few minutes of your precious time, Just to know about your views for different bike. I assure you that your information will be confidential and it would not be share by other organization.

Name: Age: Occupation: Sex:

1. Which of the following best describe your age group? a) 14-18 b) 18-25 c) 25 to 35 d) above 35

2. For which purpose you purchase the motorbike? a) College going c) Maintain friend circle b) Office going d) Other purpose

3. Which of following companys motorbike do you have ? a) Bajaj c) Suzuki e) Any other b) Hero Honda d) Yamaha

4. How come you know about that brand? (can make more than one) a) T.V. c) Dealer effort b) Newspaper d) World of mouth

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e) Internet

f) Any other

5. Rate the following in order of influence you purchase a bike? a) Brand image of the product b) Price c) After sales service d) Quality and feature of product e) Ease of availability f) Value for money

6. Which physical features contributed most in you buying decision? a) Looks c) Style b) Body build e) Robustness

7. What technological feature effected in your buying decision? a) Power economy mode b) Mileage c) Four stroke engine 8. d) Any other

From where did you purchase your bike? a) Authorized outlet c) Online b) Near by dealer d) Any other

9. Which brand has better after sales service? a) Bajaj Caliber c) TVS victor e) LML Freedom b) Passion d) Ambition f) Other.
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10. Are you satisfied with your decision? a) Highly satisfied b) Satisfied c) Neither satisfied nor dissatisfied d) Dissatisfied

11. Which bike do your prefer for buying in future? a) Caliber c) Pulser e) Ambition g) Other b) TVS Victor d) Passion f) LML Freedom

Thank you

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