A Project Report On Advertising Effectiveness of Cold Drinks - Document Transcript

A project report on advertising effectiveness of cold drinks Document Transcript
1. Projectsformba.blogspot.com
A PROJECT REPORT ON
STUDY OF ADVERTISING EFFECTIVENESS OF COLDDRINKS IN BHOPAL SUBMITTED FOR THE PARTIAL FULFILLMENT ADMINISTRATION OF MASTER SUBMITTED OF BUSINESS BY:
TO:GUIDED
SUBMITTED BY: MILLENNIUM INSTITUTE OF TECH. & SCIENCE BARKATULLAH UNIVERSITY, BHOPAL YEAR 2010Projectsformba.blogspot.com 1
2. Projectsformba.blogspot.com
A PROJECT REPORT ON
STUDY OF ADVERTISING EFFECTIVENESS OF COLDDRINKS IN BHOPAL SUBMITTED FOR THE PARTIAL FULFILLMENT OF MASTER OF BUSINESS
ADMINISTRATION SUBMITTED BY Under the Guidance Of: FROM MILLENNIUM INSTITUTE OF TECH. & SCIENCE BARKATULLAH UNIVERSITY, BHOPAL YEAR
2010Projectsformba.blogspot.com 2
3. Projectsformba.blogspot.com ACKNOWLEDGEMENTIt gives me immense pleasure to present this project report on entitled STUDY OFADVERTISING EFFECTIVENESS OF COLDDRINKS IN BHOPAL in partialfulfillment of post-graduate course M.B.A.I take this opportunity to place on record my grateful thanks and gratitude to allthose who gave me valuable advice and inputs for my study. My study could nothave been completed if I had not been able to get the reference materials from thecompany.I would be failing in my duty if I do not express my deep sense of gratitude toMiss. SHAZIA QURESHI without her guidance it wouldnt have
been
possiblefor
me
to
complete
this
project
work.Projectsformba.blogspot.com 3
4.
Projectsformba.blogspot.com Student of M.B.A.
DECLARATIONI, IV Sem from
MILLENNIUMINSTITUTE OF TECH. & SCIENCE, BHOPAL, Bhopal, declare that theproject work entitled STUDY OF ADVERTISING EFFECTIVENESS OF COLD-DRINKS IN BHOPAL was carried by me in the partial fulfillment of MBA programunder the University of Bhopal.This project was undertaken as a part of academic curriculum according to theUniversity rules and norms and it has not commercial interest and motive. It is myoriginal work. It is not submitted to any other organization for any other purpose.Projectsformba.blogspot.com 4
5. Projectsformba.blogspot.com PREFACEThe research provides an opportunity to a student to demonstrate application ofhis/her knowledge. Skill and competencies required during the technical session.Research also helps the student to devote his /her skill to analyze the problem tosuggest alternative solution, to evaluate them and to provide feasiblerecommendations on the provided
data.Although I have tried my level best to prepare this report an error free report everyeffort has been made to offer the most authenticate position with accuracy.Projectsformba.blogspot.com 5
6. Projectsformba.blogspot.com CERTIFICATEThis is to certify that the AMRENDRA SINGH has completed project on Entitled STUDY OF ADVERTISING EFFECTIVENESS OF COLDDRINKS INBHOPALhich is based on data collected by researcher.This report is completed under my supervision. It is only for academic purpose andis a bonafide work done by
research.Projectsformba.blogspot.com 6
7.
Projectsformba.blogspot.com
INDEX
1.
Introduction
of
advertising effectiveness 2. Introduction of advertising campaign 3. Research methodology A. Research design B. Data collection C. Sampling design D. Sampling technique E. Sampling size F. Area of study 4. Market profile 5. Data analysis and interpretation 6. Finding 7. Conclusion 8. Limitation 9. Suggestion 10.Bibliography 11.QuestionnairesProjectsformba.blogspot.com 7
8.
INTRODUCTIONProjectsformba.blogspot.com 8
9.
Projectsformba.blogspot.comINTRODUCTION
OF
ADVERTISING EFFECTIVENESSThe objectives of all business are to makes profits and a merchandising concerncan do that by increasing its sales at remunerative prices. This is possible, if theproduct is widely polished to be audience the final consumers, channel membersand industrial users and through convincing arguments it is persuaded to buy it.Publicity makes a thing or an idea known to people. It is a general term indicatingefforts at mass appeal. As personal stimulation of demand for a product service orbusiness unit by planting commercially significant news about it in a publishedmedium or obtaining favourable presentation of it upon video television or stagethat is not paid for by the sponsor. On the other hand, advertising denotes a specific attempt to popularize aspecific product or service at a certain cost. It is a method of publicity. It alwaysintentional openly sponsored by the sponsor and involves certain cost and hence ispaid for. It is a common form of nonpersonal communication about anorganisation and or its products idea service etc. that is transmitted to a targetaudiences through a mass medium. In common parlance the term publicity andadvertising are used synonymously.Projectsformba.blogspot.com 9
10. Projectsformba.blogspot.comWHAT IS ADVERTISING? The word advertising is derived from the Latin word viz, "advertero" "ad"meaning towards and "verto" meeting towards and "verto" meaning. "I turn"literally specific thing". Simply stated advertising is the art "says green." Advertising is a generalterm for and all forms of publicity, from the cry of the street boy sellingnewspapers to the most celebrate attention attracts device. The object always is tobring to public notice some articles or service, to create a demand to stimulatebuying and in general to bring logethel the man with something to sell and the manwho has means or desires to buy". Advertising has been defined by different experts. Some of the quoteddefinition are : American marketing association has defined advertising as "any paid formof non personal presentation and promotion of ideas, goods or services by anidentified sponsor. The medium used are print broad cast and direct. Stanton deserves that "Advertising consists of all the activities involved inpresenting to a group a nonpersonal, oral or visual openly, sponsored messageregarding a product, service, or idea. This message called an advertisement isdisseminated through one or more media and is paid for by the identified sponsor.Projectsformba.blogspot.com 10
11. Projectsformba.blogspot.com Advertising is any paid form of non personal paid of presentation of ideasgoods or services by an identified sponsor. Advertising is a "nonpersonal paid message of commercial significanceabout a product, service or company made to a market by an identified sponsor. In developing an advertising programme, one must always start byidentifying the market needs and buyer motives and must make five majordecisions commonly referred as 5M (mission, money message, media andmeasurement) of advertising.Basic Features of Advertising On the basis of various definitions it has certain basic features such as :1. It is a mass nonpersonal communication.2. It is a matter of record.3. It persuades
buyers to purchase the goods advertised.4. It is a mass paid communication.5. The communication media is diverse such as print (newspapers and magazines)6. It is also called printed salesmanship because information is spread by means of the written and printed work and pictures so that people may be induced to act upon it.Projectsformba.blogspot.com 11
12. Projectsformba.blogspot.comFUNCTIONS OF ADVERTISING For many firms advertising is the dominant element of the promotional mix particulars for those manufacturers who produce convenience goods such asdetergent, non prescription drugs, cosmetics, soft drinks and grocery products.Advertising is also used extensively by maters of automobiles, home appliances,etc, to introduce new product and new product features its uses its attributes, ptavailability etc. Advertising can also help to convince potential buyers that a firms productor service is superior to competitors product in make in quality, in price etc. it cancreate brand image and reduce the likelihood of brand switching even whencompetitors lower their prices or offer some attractive incentives. Advertising is particularly effective in certain other spheres too such as :i) When consumer awareness of products or service is at a minimum.ii) When sales are increasing for all terms in an industry.iii) When a product is new and incorporates technological advance not strong and.iv) When primary buying motive exists.Projectsformba.blogspot.com 12
13. Projectsformba.blogspot.comIt performance the following functions :i) Promotion of salesii) Introduction of new product awareness.iii) Mass production facilitationiv) Carry out researchv) Education of people.TYPES OF ADVERTISING Broadly speaking, advertising may be classified into two categories viz.,product and institutional advertising.a) Product Advertising The main purpose of
such advertising is to inform and stimulate the marketabout the advertisers products of services and to sell these. Thus type ofadvertising usually promote specific, trended products in such a manner as to makethe brands seam more desirable. It is used by business government organizationand private non-business
organizations to promote the uses features, images andbenefits of their services and products. Product advertising is sub-divided intodirect action and indirect action advertising, Direct action product advertisingwages the buyer to take action at once, ice he seeks a quick response to theadvertisement which may be to order the product by mail, or mailing a coupon, orhe may promptly purchase in a retail store in response to prince reduction duringclearance sale.Projectsformba.blogspot.com 13
14. Projectsformba.blogspot.com Product advertising is sub-divided into direct & indirect action advertising &product advertising aims at informing persons about what a products is what itdoes, how it is used and where it can be purchased. On the other hand selectiveadvertising is made to meet the selective demand for a particular brand or type isproduct.b) Institutional Advertising : It is designed to create a proper attitude towards the sellers to build companyimage or goodwill rather than to sell specific product or service. Its purpose is tocreate a frame of mind and to implant feeling favourable to the advertiserscompany. Its assignment is to make friends for the institution or organization. It is sub-divided into three categories : patronage, public, relations andpublic service institutional advertising.i) In patronage institutional advertising the manufacturer tells his prospects and customer about himself his policies and lives personnel. The appeals to the patronage motivation of buyers. If successful, he convince buyers that his operation entitles him to the money spent by them.ii) Public relations institutional advertising is used to create a favourable image of the
firm among employees, stock-holders or the general public.iii) Public service institutional advertising wages public support.c) Other Types :Projectsformba.blogspot.com 14
15. Projectsformba.blogspot.com The other types are as follows : i) Consumer advertising ii) Comparative advertising iii) Reminder advertising iv) Reinforcement advertisingADVERTISING
OBJECTIVES The long term objectives of advertising are broad and general, and concernthe contribution advertising should make to the achievement of overall companyobjectives. Most companies regard advert singly main objective as hat of provingsupport to personal selling and other forms of promotion. But advertising is ahighly versatile communications tools and may therefore by used for achievingvarious short and long term objectives. Among these objectives are the following :1. To do the entire selling job (as in mail order marketing).2. To introduce a new product (by building brand awareness among potential buyers).3. To force middlemen to handle the product (pull strategy).4. To build brand preference 9by making it more difficult for middleman to sell substitutes).5. To remind users to buy the product (retentive
strategy).Projectsformba.blogspot.com 15
16. Projectsformba.blogspot.com6. To publicize some change in marketing strategy (e.g., a price change, a new model or an improvement in the product).7. To provide rationalization (i.e. Socially acceptable excuses).8. To combat or neutralize competitors advertising.9. To improve the moral of dealers and/or sales people (by showing that the company is doing its share of promotion).10. To acquaint buyers and prospects with the new uses of the product (to extend the PLC).BENEFITS The functions of advertisement, and that purpose its ethics, may bediscussion below :1. It leads to cheaper prices. "No advertiser could live in the highly competitive
arena of modern business if his methods of selling were more costly than those of his rivals."2. It acquaints the public with the features of the goods and advantages which buyers will enjoy.3. It increases demand for commodities and this results in increased production. Advertising : a) Creates and stimulates demand opens and expands the markets; b) Creates goodwill which loads to an increase in sales volume;Projectsformba.blogspot.com 16
17. Projectsformba.blogspot.com c) Reduces marketing costs, particularly product selling costs. d) Satisfied consumer demands by placing in the market what he needs.4. It reduces distribution expenses in as much as it plays the part of thousands of salesman at a home. Information on a mass scale relieves the necessity of expenditure on sales promotion staff, and quicker and wider distribution leads to diminishing of the distribution costs.5. It ensures the consumers better quality of goods. A good name is the breath of the life to an advertiser.6. By paying the way for large scale production and increased industrialization, advertising contributes its quota to the profit of the companies the prosperity of the shareholder the uplifts of the wage earners and the solution of he unemployment problem.7. It raises the standard of living of the general public by impelling it to use to articles of modern types which may add to his material well being. "Modern advertising has made the luxuries of yesterday the necessities of today ..................... It is a positive creative force in business. It makes two blades of grass grow in the business world where one grew before.8. It establishes the goodwill of the concern for the test articles produced by it and in course of time they sell like not cakes consumer search for satisfaction of their needs when they purchase goods what they want from its beauty, superiority, economy, comfort, approval, popularity, power, safety, convenience, sexual gratification and so on. The
manufacturesProjectsformba.blogspot.com 17
18. Projectsformba.blogspot.com therefore tries to improve this goodwill and reputation by knowing the buyer behaviour. To sum up it may be said that advertising aims at committing the producers, educating the consumer, supplementing the salesman converting the producer and the dealer to eliminate the competitor, but above all it is a link between the produce and the consumer.WHY & WHEN TO ADVERTISE Advertising as a tool to marketing not only reaches those who buy , but alsothose whose opinions or authority is counted for example a manufacturer of marbletiles and building boards advertises not only to people who intend to build housesbut also to architect and engineers. While the manufacturers of
pharmaceuticalsproducts advertise to doctors as well as to the general public. At time it isnecessary for a manufacturer or a concern to advertise things which it does not sellbut which when sold stimulates the sales of its own product. There are concernslike electric heaters, iron etc. because the use of these increases the demand fortheir products. Advertising should be used only when it promises to bring good result moreeconomically and efficiently as compared to other means of selling. There aregoods for which much time and efforts are required in creating a demand bysending salesman to prospective buyers than by simply advertising them. In theearly days of the cash register in America it was sold by specially trained salesmanwho called on the prospective users and had the difficult task of convincing themProjectsformba.blogspot.com 18
19. Projectsformba.blogspot.comthat they could no longer carry on with the old methods, and that they urgentlyneeded a cash register. In our country certain publishers have found it less costly tosell their books by sending salesman from house to house among prospectivebuyers than to advertise them. In these two examples the cost of creating demandwould be too high if attempted by advertising alone under such circumstancesadvertising is used to
make the salesman acceptable to the people they call upon toincrease the confidence of the public in the house. Naturals when there are goodprofits competitors will be attracted and they should be kicked out as and whensufficient capital is available by advertising on a large scale. Immediate result maynot justify the increased expenditure but it will no doubt secure future sales.DESIGNING ADVERTISING CAMPAIGN: An advertising is an organized series of advertising messages. It has beendefined as "a planned, coordinate series of promotional efforts built around acentral theme and designed to reach a specified goals." In other words, it is anorderly planned effort consisting of related but self contained and independentadvertisements. The campaign may appear in one more media . it has single themeor keynote idea and a single objective or goal. Thus, "a unified theme of contentprovides psychological continuity throughout the campaign while visual and oralsimilarity provide physical continuity. In short run, all campaign want pre-determined psychological reaction in the long run, practically all campaigns havesales goal.The series of advertisements used in the campaign must be integrated with thesales promotional efforts and with the activities of the sales
force.Projectsformba.blogspot.com 19
20. Projectsformba.blogspot.comCampaign vary in length some may run only for a few days, other for weeks, yetother for a season or the entire year. Usually a range of 3 to 6 months includesmany campaigns. Many factors influences campaign length such as competitorsadvertising media, policies, seasonal falls curves of the product involved, the sizeof the advertising funds, campaign objectives and the nature OF of the advertisersmarketing The advertising
programme.OBJECTIVES
CAMPAIGN
campaign, especially those connected with the consumersaims at achieving these objectives : i) To announce a new product or
improve product. ii) To hold consumers patronage against intensified campaign use. iii) To inform consumers about a new product use. iv) To teach consumers how to use product. v) To promote a contest or a premium offer. vi) To establish a new trade regional, and vii) To help solve a coca regional problem.Projectsformba.blogspot.com 20
21. Projectsformba.blogspot.com The institutional advertising campaign on the other hand, have these objectives. i) To create a corporate personality or image. ii) To build a company prestige. iii) To keep the company name before the public. iv) To emphasize company services and facilities. v) To enable company salesman to see top executive consistently when making sales calls, and vi) To increase friendliness and goodwill towards the company. Developing the campaign programmes. The advertising campaigns areprepared by the advertising agencies, which work an behalf of their clients whomanufacture product or service enterprises, which have services to sell. The wordcampaign is used because advertising agencies approach their task with a sumBlanca of military fanfare in which one frequently hears words like target audiencelogistics, zero in and tactics and strategy etc. The account executive co-ordinates the work in a campaign. The creation ofan advertising campaign starts with an exploration of consumers habits andpsychology in relation to the product. This requires the services of statisticaltrained in survey techniques and of others trained in social psychology.Statisticians select samples for survey which are done by trained interviewers whovisits individuals, included in the sample and ask question to find out about theirtaste and habits.Projectsformba.blogspot.com 21
22. Projectsformba.blogspot.com This enquiry often leads to a change in a familiar product. For instancebathing soap may come in several new colours or cigarette in a new packet ortalcum powder in another size. Such interviews are often quite essential to find out the
appeal of advertisingmessage for a product that would be most effective with consumers. David Ogilvy describes a consumers survey to find out the most meaningfulbenefit in which women are interested when they buy a face cream. The largestpreference as given to "Cleans deep into pores" followed in order of importance byprevent dryness, "is a complete beauty treatment, recommended by skin doctors"makes skin look younger contains estrogenic hormones, pasteurized for purity,prevent skin form aging, smooth our wrinkles ogilvy concludes, form this votingcome one of Helena Rubinsteins most successful face creams. We christened itdeep cleanser, thus, building the winning form into name of the product. After getting the data the account executive puts together the essentialelements of his clients brief, interprets the research findings and draws up what hecalls the "advertising strategy".STAGE IN ADVERTISING CAMPAIGN Several steps are required to developed an advertising campaign the numberof stages and exact order in which they are carried out may vary according to anorganisations resources, the nature of its product and the types of audiences to bereached. The major stages/step are :1. Identifying and analyzing the advertising.2. Defining advertising
objects.Projectsformba.blogspot.com 22
23.
Projectsformba.blogspot.com3.
Creating
the
advertising
platform.4. Determining the advertising appropriation.5. Selection media plan.6. Creating the advertising message.7. Evaluating the effectiveness of advertising.8. Organizing of advertising campaign.1. Identifying & Analyzing the Advertising target : Under this step it is to decided as to whom is the firm trying to reach withthe message. The advertising target is the group of people towards
whichadvertisements are aimed at four this purpose complete information about themarket target i.e. the location and geographical location of the people, thedistribution of age, income, sex,
educational level, and consumers attitudesregarding purchase and use both of the advertising product and competingproducts is needed with better knowledge of market target, effective
advertisingcampaign can be developed on the other hand, if the advertising target is notproperly identified and analyzed the campaign is does likely to be effective.2. Determining the advertising objectives : The objectives of advertisement must be specifically and clearly defined inmeasurable terms such as "to communicate specific qualities about a particularsproduct to gain a certain degree of penetration in a definite audience of a givenProjectsformba.blogspot.com 23
24. Projectsformba.blogspot.comsize during a given period of time", increase sales by a certain percentage orincrease the firms market shares." The goals of advertising may be to : i) Create a favourable company image by acquainting the public with the services offered available to the employees and its achievements. ii) Create consumers or distributor awareness by encouraging requests providing information about the types of products sold; providing information about the benefits to be gained from use of the companys products or services; and indicating how product (or services) can be used; iii) Encourage immediate sales by encouraging potential purchasers through special sales contests, getting recommendation of professional people about companys products etc. iv) It secures action by the reader through associating ideas, repetition of the same name in different contexts, immediate action appeal.3. Creating the Advertising platform : An advertising platform consists of the basic issues or selling points that anadvertiser wishes to include in the advertising campaign. A single advertisement inan advertising campaign may contain one or more issues in the platform. Amotorcycle producers advertising platform should contain issues which are ofimportance to consumers filling
and such issues also be those which thecompetitive product do not posses.Projectsformba.blogspot.com 24
25. Projectsformba.blogspot.com4. Determining the Advertising Appropriation: The advertising appropriation is the total amount of money which marketerallocates. For advertising for a specific time period. Determining the campaignbudget involves estimating now much it will cost to achieve the campaignsobjectives. If the campaign objectives are profit relating and stated quantitatively,then the amount of the campaign budget is determined by estimating the proposedcampaigns effectiveness in attaining them. If campaigns object is to build aparticular type of company image, then there is little basis for predicting either thecampaigns effectiveness or determining the budget required.5. Selecting the Media : Media selection is an important since it costs time space and money variousfactors influence this selection, the most fundamental being the nature of the targetmarket segment, the type of the product and the cost involved. The distinctivecharacteristics of various media are also important. Therefore management shouldfocus its attention on media compatibility with advertising objectives. Media Form1. Press Advertising or Printi) Newspapers City, Small town, Sundays, Daily, weekly, Fortnightly, quarterlies, financial and annuals, English, vernacular or regional languages.ii) Magazines General or special, illustrated or otherwise, English, Hindi,Projectsformba.blogspot.com 25
26. Projectsformba.blogspot.com Regional language.iii) Trade & Technical Journals, Industrial Circulated all over the country year books, commercial, directories, and among the industrialist and telephone, Directories, references business magnates. books & annuals.2. Direct Mail Circulars, catalogues, leaflets, brochures, booklets, folders, colanders, blotters, diaries & other printed
material.3. Outdoor or Traffic Poster and bills on walls, railways stations platforms outside public buildings trains, buses.4. Broadcast or radio and T.V. Spot, Sectional or national trade cost5. Publicity Movie Slides and films non theatrical and documentary films metal plates and signs attaches to trees.6. House to house Sampling , couponing, free gifts, novelties, demonst- rations.7. Dealer aids Counter and widows display demonstration given by retailer or the advertises goods.8. Internet Today, Internet is a big spot for advertising.So these are the media of the advertising campaign of the selecting of the media.Projectsformba.blogspot.com 26
27.
Projectsformba.blogspot.com6.
Creating
the
Advertising
Messages : This is an important stage of advertising campaign. The contents of themessage has to be very carefully drafted in the advertisement. Characteristics ofperson in the advertising target influence the message content and form. Anadvertisers must use words, symbols and illustration that are meaningful, familiarand attractive to those persons. The type of media also influence the content andform of the message.7. Evaluating the Effectiveness of Advertising : The effectiveness of advertising is measured for a variety of reasons : a) To determine whether a campaign accomplished its advertising objects. b) To evaluate the relative effectiveness of several advertisements to ascertain which copy, illustrations or layout is best. c) To determine the strengths and weaknesses of various media and media plans. In other words, measuring advertising effectiveness is needed to determinewhether proposed advertisement should be used and if they will be now they mightbe improved; and whether going campaign should be stopped, continued orProjectsformba.blogspot.com 27
28. Projectsformba.blogspot.comchanged. In accomplishing these purposes, pretests and post test are conducted.The former tests
before exposing target consumers to advertisements and the letterafter consumers have been exposed to advertisements and the letter afterconsumers have been exposed to advertisements. For an effective advertising programme, the advertising manager requires abasic understanding of the medium that is going to carry it. For effectively using advertising the management must test advertising toknow which of the advertisement to know which of the advertisement have provedprofitable and why as compared to others.Projectsformba.blogspot.com 28
29.
COMPANY
PROFILEProjectsformba.blogspot.com 29
30.
Projectsformba.blogspot.comMARKET
PROFILE(Coca
Cola)Brands of Coca- Colai) Coca Colaii) Thums-upiii) Limcaiv) Fantav) Maazavi) Maaza Tetravii) SpriteFlavours of the brand :i) ColaProjectsformba.blogspot.com 30
31. Projectsformba.blogspot.comii) Lemoniii) Sodaiv) Orangev) Mangovi) Clear LemonSize of the Coca Cola cold drinks available in marketi) 200 ml Bottles (RGB Glasses)ii) 300 ml Bottles (RGB Glasses)iii) 500 ml Bottles (RGB Glasses)iv) 1 Litre (PVC Bottles)v) 1.5 Litre (PVC Bottles)vi) 2 Litre (PVC Bottles)Sales of Coca Cola Cold drinksCoca Cola Weekly Monthly YearlyCold drinks (in carets) (in carets) (in carets)Coca Cola 520 1840 22400Fanta 250 1030 12900Thums-up 350 1350
32. Projectsformba.blogspot.comLimca 380 1210 16300Maaza Tetra 80 380 6200Sprite 70 280 5000Maaza 120 690 10000(Primary data)There is more consumption of Coca Cola and has 70% market share in theYamunanagar city and Coca Cola is having maximum consumption and after thatThumps-up and after it Limca cold drink
in the market and all the products hasgood sale but less than these.Brands of Pepsii) Pepsi Colaii) Mirinda Lemoniii) Mirinda Orangeiv) Pepsi Sodav) Pepsi AppleFlavours of the brand :i) Colaii) LemonProjectsformba.blogspot.com 32
33. Projectsformba.blogspot.comiii) Orangeiv) Sodav) AppleSize of the Pepsi cold drinks available in marketvi) 200 ml Bottles (RGB Glasses)vii) 300 ml Bottles (RGB Glasses)viii) 500 ml Bottles (500 pt. Bottles)ix) 1 Litre (PVC Bottles)x) 1.5 Litre (PVC Bottles)xi) 2 Litre (PVC Bottles)Sales of Pepsi Cold drinksPepsi Weekly Monthly YearlyCold drinks (in carets) (in carets) (in carets)Pepsi 430 1750 21600Mirinda Lemon 390 1180 15400Mirinda Orange 245 1000 13600Pepsi Soda 126 470 6000Pepsi Apple 120 400
34. Projectsformba.blogspot.com(Primary Data) The consumption of Pepsi cola, after this sale of Mirinda Lemon is there andafter it Mirinda Orange is there and the market share is less of Pepsi incomparison of Coca Cola.Projectsformba.blogspot.com 34
35.
OBJECTIVES
OF
THE
STUDYProjectsformba.blogspot.com 35
36.
OBJECTIVES
OF
THE
STUDYFollowing are the objectives of the study:1. To know the most effective media of advertisement2. To find out the reasons for liking the advertisement of cold drinks.3. To find out the most popular slogan of advertisement regarding cold
drinks.Projectsformba.blogspot.com 36
37. Projectsformba.blogspot.com Research MethodologyResearch MethodologyResearch is voyage from known to
unknownProjectsformba.blogspot.com 37
38. Projectsformba.blogspot.comResearch is a procedure of logical and systematic application of the fundamentalsof science to the general and overall questions of a study and scientific
techniquewhich provide precise tools, specific procedure and technical rather thanphilosophical means for getting and ordering the data prior to their logical analysisand manipulation. Different type of research designs is available depending uponthe nature of research project, availability of able manpower and
circumstances.Methodology 1. Research Design: The research design is the blueprint for the fulfillment of objectives and answering questions. It is a master plan specifying the method and procedures for collecting and analyzing needed information. o Descriptive Research is used in this study as the main aim is to describe characteristics of the phenomenon or a situation. 2. Data Collection Methods: The source of data includes primary and secondary data sources. Primary Sources: Primary data has been collected directly from sample respondents through questionnaire and with the help of interview. Secondary Sources: Secondary data has been collected from standard textbooks, Newspapers, Magazines & Internet. 3. Research Instrument: Research instrument used for the primary data collection is Questionnaire.Projectsformba.blogspot.com 38
39. Projectsformba.blogspot.com 4. Sample Design: Sample design is definite plan determine before any data is actually obtaining for a sample from a given population. The researcher must decide the way of selecting a sample. Samples can be either probability samples or non-probability samples. Sampling Technique: Convenience Sample Size: 50 Respondents. Area of Study: MP nagar, new market, Piplani, Nehru Nagar.Projectsformba.blogspot.com 39
40.
DATA
ANALYSIS
AND
INTERPRETATIONProjectsformba.blogspot.com 40
41.
DATA
ANALYSIS
AND
INTERPRETATION
TABLE
4.1RESPONDENTS
CLASSIFICATION ACCORDING TO AGEAge (in years) No. of respondents Percentage11-20 22 4421-40 25 5041-60 3 6Total 50 100 100 90 80 70 60 20-Nov 50 21-40 40 41-60 30 Total 20 10 0 No. of respondents PercentageTable 4.1 shows that 44% of the respondents are in the age group of 11-20, 50%are in the age group of 21-40 and 6% are in the age group of 41-60.TABLE 4.2Projectsformba.blogspot.com 41
42.
Projectsformba.blogspot.comRESPONDENTS
CLASSIFICATION ACCORDING TO SEXSex No. of respondents PercentageMale 30 60Female 20 40Total 50 100 100 80 60 Male Female 40 Total 20 0 No. of respondents Percentage Table 4.2 shows that 60% of the respondents are males and 40% of them arefemalesTABLE 4.3Projectsformba.blogspot.com 42
43. CLASSIFICATION
Projectsformba.blogspot.comRESPONDENTS ACCORDING No. TO of
EDUCATIONALQUALIFICATIONQualification
respondents PercentageIlliterate 0 0Below Matric 0 0Matric 5 10Graduate 29 58Post graduate 16 32Total 50 100 60 50 40 Illiterate Below Matric 30 Matric 20 Graduate Post graduate 10 0 No. of respondents Percentage Table 4.3 reveals that out of 50 respondents 5 are matriculate and 29 are Graduateand rest of them 16 are post graduate.TABLE 4.4DRINKING OF COLD
DRINKProjectsformba.blogspot.com 43
44. Projectsformba.blogspot.comDo you take cold drinks No. of respondents PercentageYes 50 100No 0 0Total 50 100 100 90 80 70 60 Yes 50 No 40 Total 30 20 10 0 No. of respondents Percentage TABLE 4.5FREQUENCY OF TAKING COLD DRINKSHOW
FREQUENTLY
No.
of
respondents
PercentageYOU
DRINKProjectsformba.blogspot.com 44
45. Projectsformba.blogspot.comOnce a day 15 30Twice a day 2 4More than twice 1 2Not regular drunker 32 64Total 50 100 100 90 80 70 60 Once a day 50 Twice a day 40 More than twice 30 Not regular drunker 20 Total 10 0 No. of Percentage respondents Table 4.5 reveals that 30% of the respondents drink it once a day, 4% twicea day, 2% more than twice and 32% drink it no regularly.TABLE 4.6NAME OF THE COLD DRINKS
AVAILABLE IN MARKETName of cold drinks No. of respondents PercentageCoca cola -Pepsi -Fanta -
Projectsformba.blogspot.com 45
46. Projectsformba.blogspot.comLimca - -Mirinda - -Thums-up - Canada dry - -Maaza - -Dew - -All of above 50 100Total 50 100 100 80 60 East 40 West North 20 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Table 4.6 reveals that all of the respondents are of the view that all theabove mentioned cold drinks are available in the market.TABLE 4.7PREFERENCE OF COLD DRINKWhich cold drink you No. of respondents Percentagelike mostCoca cola 12 24Pepsi 12 24Fanta 1 2Limca 7 14Mirinda 1 2Projectsformba.blogspot.com 46
47. Projectsformba.blogspot.comThums-up 10 20Canada dry 4 8Maaza 3 6Dew - -Total 50 100 100 80 60 East 40 West North 20 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Table 4.7 indicate that out of 50 respondents 12 like Coca cola, 12 like Pepsi, 7like Limca, 1 like Fanta, 1 like Mirinda, 10 like Thums-up, 4 like Canada dry and3 like Maaza.TABLE 4.8FLAVOURS OF COLD DRINKSFlavours No. of respondents PercentageCola 30 60Lemon 7 14Orange 7 14Mango 2 4Others 4 8Total 50 100Projectsformba.blogspot.com 47
48. Projectsformba.blogspot.com 100 90 80 70 Cola 60 Lemon 50 Orange 40 Mango 30 Others 20 Total 10 0 No. of respondents Percentage Table 4.8 shows that out of 60% of the respondents like the cola flavour of colddrink, 14% like the Lemon flavour and same percentage of respondents like theorange flavour of cold drink.Projectsformba.blogspot.com 48
49. Projectsformba.blogspot.comTABLE 4.9 ADVERTISEMENT OF COLD DRINKDo you think No. of respondents
Percentageadvertisement of colddrink is requiredYes 48 96No 2 4Total 50 100 100 80 60 Yes No 40 Total 20 0 No. of respondents Percentage Table 4.9 indicate that 96% of the respondents are of the view that theyhave been the advertisement of the cold drink they like most while 4% shows thatthey dont have seen the advertisement they like most .TABLE 4.10Projectsformba.blogspot.com 49
50.
MEDIA
OF
ADVERTISEMENTTHROUGH WHICH No. of respondents PercentageMEDIA YOU HAVESEEN IT?TV 46 92Newspaper 2 4Magazine 1 2Other 1 2Total 50 100 100 80 TV 60 Newspaper Magazine 40 Other 20 Total 0 No. of respondents Percentage Table 4.10 reveals that 92% of the respondents are of opinion that they haveseen the advertisement on TV while 4% are of the opinion that they have seen theadvertisement through newspaper.TABLE 4.11NO. OF ADVERTISEMENTProjectsformba.blogspot.com 50
51. Projectsformba.blogspot.comHow many No. of respondents Percentageadvertisements youseen are of the mostlikely cold drink by you1 11 222 14 283 11 224 14 28Total 50 100 100 80 1 60 2 3 40 4 20 Total 0 No. of respondents Percentage Table 4.11 shows that out of the 50 respondents 11 are of view that there is 1type of advertisement and other says that there are more than one type.TABLE 4.12 SLOGAN OF COLD DRINKSlogan of cold drink
No.
of
respondents
Percentagewhich
you
likeProjectsformba.blogspot.com 51
52. Projectsformba.blogspot.comTaste the thunder 12 24Yara Da tashan 14 28Yeh dil mange more 16 32Jo chahe ho jaye, coca 8 16cola enjoyTotal 50 100 100 90 Taste the thunder 80 70 Yara Da tashan 60 50 Yeh dil mange more 40 30 Jo chahe ho jaye, 20 coca cola enjoy 10 Total 0 No. of Percentage respondents Table 4.12 shows that out of 50 respondents 12 like the slogan taste the thunder,14 like Yara da tashan, 16 like yeh dil mange more and 8 like the slogan Jochahe ho jaye coca cola enjoy.TABLE 4.13 REASON FOR LIKING THE ADVERTISEMENTWhy you like No. of respondents PercentageadvertisementIts theme and making is 30 60Projectsformba.blogspot.com 52
53. Projectsformba.blogspot.comappealableIt has film stars 7 14Because of good music 7 14Other reasons 6 12Total 50 100 100 90 Its theme and making 80 is appealable 70 It has film stars 60 50 Because of good 40 music 30 20 Other reasons 10 0 Total No. of Percentage respondentsTable 4.13 shows that majority of the respondents like the advertisement due to itstheme while majority of the respondents like the advertisement due to its film starsand good music.TABLE 4.14EFFECT OF ADVERTISEMENT ON
CONSUMPTION OF COLD DRINKDo you think ads. No. of respondents PercentageEffect the consumptionof cold drinkYes 23 46No 17 354Projectsformba.blogspot.com 53
54. Projectsformba.blogspot.comCannt say 10 20Total 50 100 400 350 300 250 Yes 200 No 150 Cannt say Total 100 50 0 No. of respondents Percentage Table 4.14 shows that 46% of the respondents are of the view that advertisementforced them to consume product more 34% of them has view that advertisementdont force them to consume the product while 20% of
them cannot say anythingabout it.TABLE 4.15 BEST MEDIA OF ADVERTISEMENTWhich Media Presently No. of respondents PercentageIs More EffectivelyTV 50 100Newspaper - -Magazine - Others - -Total 50 100Projectsformba.blogspot.com 54
55. Projectsformba.blogspot.com Table 4.15 reveals that 100% of the respondents are of the view thatpresently the TV is most effective media of advertisement.TABLE 4.16NECESSITY OF ADVERTISEMENTDO YOU THINK THE No. of respondents PercentageADVERTISEMENT ISNECESSARY FORCOLD DRINKS?Necessary 14 28Very necessary 34 68Cant say 2 4Total 50 100Projectsformba.blogspot.com 55
56. Projectsformba.blogspot.com 100 90 80 70 60 Necessary 50 Very necessary 40 Cant say 30 Total 20 10 0 No. of respondents Percentage Table 4.16 shows that highest number of respondents are of the view thatadvertisement is very necessary for cold drinks while few respondents are of theview that advertisement is
necessary.TABLE 4.17 EFFECTIVENESS OF EXPENDITURE INCURRED ON ADVERTISEMENTDoes expenditure No. of respondents Percentageshould be incurred onadvertisementYes 43 86No 2 4Cant say 5 10Total 50 100Projectsformba.blogspot.com 56
57. Projectsformba.blogspot.com 100 90 80 70 60 Yes 50 No 40 Cant say 30 Total 20 10 0 No. of respondents Percentage Table 4.17 shows that 86% of the respondents are of the view that theexpenditure incurred on advertisement is effective in adding the profit while 4%denied the same and 10% did not reply.TABLE 4.18REASONS FOR DIFFERENCE OF ADVERTISEMENT EFFECTIVENESSWHICH PercentageYOU FIND REASON FOR No. of respondents
THEDIFFERENCE
OFADVERTISEMENTEFFECTIVENESSEducation 20 40Liking
10 20Standard of Living 10 20Level of Development 10 20Projectsformba.blogspot.com 57
58. Projectsformba.blogspot.comTotal 50 100 100 80 Education 60 Liking Standard of Living 40 Level of Development 20 Total 0 No. of respondents Percentage Table 4.18 shows that 40% of the respondents say education is one of themain reason of Advertisement effectiveness while equal % of the respondents arein the favour of likings, standars of living and level of
developmentProjectsformba.blogspot.com 58
59.
Projectsformba.blogspot.comTABLE AND IMPROVEMENT
4.19ADD IN
EFFECTIVENESS
ADVERTISEMENTWILL THE STUDY No. of respondents PercentageOF TOIMPROVEMENT EFFECTIVENESSWOULDCONTRIBUTE OFPRESENTADVERTISEMENTYes 45
90No 1 2Cannot say 4 10Total 50 100 100 80 60 Yes No 40 Cannot say Total 20 0 No. of respondents PercentageTable 4.19 shows that the majority of the respondents are of the view that the studyof effectiveness contributes the improvement in present
advertisement.TABLE 4.20NECESSITY OF ADVERTISEMENT EFFECTIVENESSProjectsformba.blogspot.com 59
60. Projectsformba.blogspot.comIS ADVERTISEMENT No. of respondents PercentageEFFECTIVENESS ISNECESSARY FORCOMPANY?Yes 48 96No 1 2Cant say 1 2Total 50 100 100 90 80 70 60 Yes 50 No 40 30 Cant say 20 Total 10 0 No. of Percentage respondentsTable 4.20 reveals that majority of the respondents say that the advertisementeffectiveness is necessary while same did not replied.TABLE 4.21USERS OF ADVERTISEMENT
EFFECTIVENESSTHE USE STUDY OF No. of respondents PercentageEFFECTIVENESS ISProjectsformba.blogspot.com 60
61. Projectsformba.blogspot.comFOR WHOM?For company 34 68For employees 1 2For customers 15 30None of these - -Total 50 100Table 4.21 indicates that 68% of the respondents are of the view that the study ofeffectiveness is meant for company while 30% say that it is meant for customers.Projectsformba.blogspot.com 61
62. Projectsformba.blogspot.com OBSERVATIONS & FINDINGS FINDINGSAfter going through all the project and the collected data, I found that:Projectsformba.blogspot.com 62
63. Projectsformba.blogspot.comP 84% of the respondents said that TV is the most effective media of advertisement.a 60% of the respondents said that they like the advertisement of cold drinks because of its theme whereas, 14% said that they like celebrities in advertisement.a Some 32% of the respondents said that yeh dil maange more is the most popular slogan whereas 28% of the respondents said that yara da tashan is the popular slogan.p Majority of respondents are of the view that advertisement is very necessary for cold drink.f Majority of respondents sees the advertisement of the cold drink they like most.m Majority of the respondents like cola flavor of cold drinkM Equal number of respondents like the brand of Coca Cola and
PepsiProjectsformba.blogspot.com 63
64.
CONCLUSIONCONCLUSIONProjectsformba.blogspot.com 64
65. Projectsformba.blogspot.comIn last conclude that majority of the respondents said that TV is the most effectivemedia for advertisement of cold drinks and the celebrities and the slogans in theadvertisement effect the consumers.SUGGESTIONSWe reached some suggestions :W Advertisement should not be too expensive, because the advertisement leads and increase the prize of the
product.a Media should be selected according to the choice of customers.M In rural areas media should be according to the choice of the people.I To give more attention in making the advertisement to make it effective for the sale of cold drink.s Price should be decreased so as to attract the consumers to use product more.P To give attention on the weak media of advertisement so that the consumers comes to know about the product.c It should be attractive one so that people are attracted toward the
advertisement.LIMITATIONSProjectsformba.blogspot.com 65
66. Projectsformba.blogspot.comP The project relied mainly on the primary data.T Consumer give very unclear picture.C We have a limited time.W The study is based on limited sample.T It begin my first attempt to undertake such a study, thus the inexperience is also a obstacle to accomplish the project in a proper way.a It was also difficult to get proper information from the people because they were indulging in some other activities.Projectsformba.blogspot.com 66
67.
BIBLIOGRAPHYProjectsformba.blogspot.com 67
Aaker David A. etc. advertising Management 4th ed, New Delhi, prentice Hall of India 1985.Journals: Economic Political
WeeklyMagazines and Newspapers:Projectsformba.blogspot.com 6868. Projectsformba.blogspot.com Kothari, C.R (2003): Research Methodology (II Edition), New Age International Pvt. Ltd. Khan and Martin (2003): Sales and Distribution (I Edition), Anurag Jain publishing company, New Delhi Rajan Saxena (2003): Marketing Management (II Edition), Tata McGraw - Hill publishing company Ltd., New Delhi
69.
QUESTIONNARIES
ADVERTISEMENT EFFECTIVENESSProjectsformba.blogspot.com 69
70. Projectsformba.blogspot.com OF COLD DRINKS BACK GROUND INFORMATIONI) Name Age : :
__________________________________II)
__________________________________III) Qualification :IV) 1. Literate 2. Illiterate if literate ? 1. Below Matric 2. Matric 3. Graduate 4. Post GraduateV) Profession Address : :
__________________________________VI) __________________________________
__________________________________VII) Size of family : __________________________________1). Do you take cold drink ? a. Yes b. No2). How frequently you take cold drink ? a. Once a day b. Twice a day c. More than twice d. Not regular3). Which are the different cold drinks available in the market ? a. Coca Cola b. Pepsi c. Limca d. Fanta e. Thums-up f. Mirinda g. Limca h. Maaza i. Canada Dry j. All of these4). Which cold drink you like most ? a. Coca Cola b. Pepsi c. Limca d. Fanta e. Thums-up f. Mirinda g. Limca h. Maaza i. Canada Dry j. All of these5). Which flavour of cold drink you like most ?Projectsformba.blogspot.com 70
71. Projectsformba.blogspot.com a. Cola b. Lemon c. Mango d. Orange e. Other6). Have you seen the advertisement of cold drink you like most ? a. Yes b. No7). Through which media you have seen it? a. T.V. b. News Paper c. Magazine d. Others8). How many types of advertisement of you preferred brand of cold drink arethere? a. 1 b. 2 c. 3 d. 49). Which slogan of cold drink you like most ? a. Taste the Thunder b. Yara Da Tashan c. Yeh Dil Mange More d. Jo chahe ho Jai COCA-COLA enjoy10). Why do you like the advertisement ? a. Because it has film stars ? b. Because of Good music c. Its theme
and making is appealable. d. Any other reason.11). Do you think that advertisement has forced you to consume product more ? a. Yes b. No12). Which media is presenting the advertisement is necessary for sale of colddrink ? a. T.V. b. News Paper c. Magazine d. Others13). Do you think the advertisement is necessary for sale of cold drink ? a. Necessary b. Very Necessary c. Not Necessary d. Cant SayProjectsformba.blogspot.com 71
72. Projectsformba.blogspot.com14). The expenditure incurred on advertisement of cold drink is such effectivethat it adds to profit ? a. Yes b. No c. Cant Say15) Which reason you find for the difference of advertisement effectiveness ? a. Education b. Likings c. Standard of Living d. Level of Development16) Is the study of effectiveness would contribute to improvement in presentadvertisement ? a. Yes b. No c. Cant Say17) Is advertisement effectiveness is necessary for company ? a. Yes b. No c. Cant Say18) What do you think the use of study of effectiveness is for who? a. For Company b. For Employees c. For Customers d. None of
theseProjectsformba.blogspot.com 72
2. Projectsformba.blogspot.com INTRODUCTION OF THE REPORTSTATEMENT OF PROJECT:The statement of our topic isEFFECTS OF ADVERTISEMENT ON THE BUYING BEHAVIOUR OFFEMALESSo at the very beginning, well define that what is the advertisement, its history, itsMedias and what are the reasons to advertise.WHAT IS ADVERTISEMENT?PAID, MEDIATED PRESENTATION OF INFORMATION ABOUT SERVICES,PRODUCTS, OR IDEAS WITH THE SPECIFIC GOAL OF INFLUENCINGCONSUMERS OR THE PUBLIC.THE ADVERTISER PURCHASES TIME (RADIO, TELEVISION, CABLE) ORSPACE (PRINT PUBLICATIONSNEWSPAPERS, MAGAZINES, SHOPPER)ORON BILLBOARDS OR OTHER DISPLAY OPPERTUNITIES SUCH AS BUSCARDS. ADVERTISING IS EVERYWHERE In our homes In the supermarkets On the streets On airplanes On trains Even in schools, colleges and universities. WHY ADVERTISEMENT IS THE GOAL OF INFLUENSING ADVERTISEMENT IS A PERSUASIVE MESSAGE HERES why my product (or service or idea) is better than your alternatives If you buy my product (or service or idea) your life will be improved in this wayProjectsformba.blogspot.com 2 3. Projectsformba.blogspot.comProjectsformba.blogspot.com 3 4. Projectsformba.blogspot.com HISTORY OF ADVERTISEMENT HERE IS A BRIEF HISTORY OF ADVERTISEMENT IN THE WORLD Johannes Gutenberg 1441 Inventiuon of Movable Type Volney Palmer 1841 First Advertising Agency Robert Bonner 1850 First Great Advertising Campaign "Doctor" Drake 1860- Patent Medicine Lydia Pinkham 1890 Patent Medicine George Rowell 1869 American Newspaper Directory Francis W. Ayer 1875 Open Contract John Powers 1880 First Copywriting "Superstar" Adolphus Green 1890 Branding J. Walter Thompson 1885 The Account Executive Cyrus Curtis Growth of Magazine AdvertisingEarnest Elmo Caulkins 1895 Art Direction John E. Kennedy 1904 ReasonWhy Copy Albert Lasker 1904 The Modern Advertising Agency Claude C. Hopkins 1906 "Scientific" Advertising Theodore McManus 1915 Impressionism Social Sciences in AdvertisingStanley & Helen Resor 1920 Women in Advertising Advertising Research Raymond Rubicam 1923 Creative Experimentation 1926 Commercial Radio Leo Burnett 1930Inherent Drama 1947 Commercial Television Rosser Reeves 1950 Unique Selling Proposition David Ogilvy 1950 Brand Image Marion Harper 1950-60 Agency Mergers & Integrated Services William Bernbach 1960 Creative Revolution Jay Chiat 1990- Advertising in the 90sCreativity & Brand Building Hal Riney FIRST
ADVERTISING AGENCY PAKISTANProjectsformba.blogspot.com 4
IN
5. Projectsformba.blogspot.com Manhattan PakistanHead : Col. Aizaz ul WaheedAffiliation : NoneBrief Intro : We were one of the first Pakistani-owned ad agencies to enter Pakistans advertising arena and have remained one of the front- runners ever since. Today MPL ranks as one of the top agencies in terms of business volume and client portfolio. Serving the promotional needs of numerous clients both Above The Line (ATL) and through Below The Line (BTL) for the last four decades, Manhattan Pakistan has now entered in its fifth decade with the fervor to build brands through consumer insights by converting buyers into brand believers.History : We first saw the light of day in 1954, establishing our roots in Karachi, Pakistan. We operate with a strong family feeling, with 100 professionals steering the agency on a straight course towards success! We maintain the delicate balance between conceptualization, to product positioning and an effective performance in the marketplace. We have helped influence consumer preferences and changing lifestyles. We are Manhattan Pakistan!Founded : 1954Top : InstaphoneClients Askari Bank PTV Burraq Telecom PTCL NOTE: DETAILS OF TOP ADVERTISING AGENCIES IN PAKISTAN ARE ATTACHED AT THE END OF REPORT IN ANNEXURES. Projectsformba.blogspot.com 5 6. Projectsformba.blogspot.com MAJOR ADVERTISING MEDIASIN 1970S FOLLOWING MASS MEDIAS BOCAME MATURE IN THE WHOLEWORLDProjectsformba.blogspot.com 6 7. Projectsformba.blogspot.com NEWS PAPERS (DOMINATE) TELEVISION DIRECT MAIL RADIO MAGAZINES OTHERS (BILL BOARDS, TRADE PRESS ETC) IN 1980s, CABLE ADVERTISING GREW AND IN 1990s, INTERNET ADVERTISING GREW. SPECIFIC MEDIA WITHIN EACH GENERAL MEDIA TYPETelevision Yellow PagesNewspaper Magazine Major Kinds of MediaDirect Mail Outdoor Radio Internet MAJOR ADVERTISING MEDIAS IN PAKISTAN IN THE BOUNDARIES OF PAKISTAN, FOLLOWING MEDIAS ARE WORKING: Projectsformba.blogspot.com 7 8. Projectsformba.blogspot.com o TV o Radio o Media Buying Houses o Media Representatives o Media Monitoring Agencies o Media Marketing Firms o New Media Companies o Internet Service Providers o Major English Dailies o Major Urdu Dailies o English Eveningers o Urdu Eveningers o English Magazines o Urdu MagazinesProjectsformba.blogspot.com 8
9. Projectsformba.blogspot.com TYPES OF ADVERTISEMENT:Product Advertising: In which manufacturers wants to focus on productsProjectsformba.blogspot.com 9 10. Projectsformba.blogspot.com For example: Head & shoulders shampoo.Institutional Advertising When focus on brand name of the company For example: McDonald, KFC.Informative Advertising The purpose of the companies to give some sort of information For example Telenor informed earlier to its launching of networkPersuasive Advertising When any company launches a new product For example When warid telecom introduces any new packageReminder Advertising Telling the consumer that there is also additional attributes in our product For example When Pepsi introduces additional taste in bottles as Pepsi twistComparative Advertising When we compare any two products For example Supreme vs. LiptonProjectsformba.blogspot.com 10 11. Projectsformba.blogspot.comCelebrity Testimonial When companies cast a celebrity in its advertisement For example Ali zafar, reema, meera and amna huq in LUX ADD now daysRetail Advertising When shop keepers advertise their shops or malls For example PaceInteractive Advertising Contact through the telephonic conversation to sell the product. For example It happens basically in business to business advertisement like when pharmaceutical companies advertise their new medicines to the doctors.Advertising a Service Instead Of A Product Advertising services is one of the most difficult type of advertising. You dont have a tangible product you can put in someones hand. They cant touch it, feel it, see it or smell it. For example Advertisement for new admission opens in university.Projectsformba.blogspot.com 11 12. Projectsformba.blogspot.com REASONS TO ADVERTISEAdvertising is such an important thing for a business to do, advertising is not justimportant for businesses but for things that offer services. Advertising tells people aboutyour product or products so they can be sold. Big companies such as McDonalds andColgate Palmolive dont need to advertise because their products are already knownthroughout the world, but when these two first came out they would have had to havespent millions of pounds on advertising to get them to the stage where they are now.The following may be the maximum reasons to advertiseProjectsformba.blogspot.com 12 13. Projectsformba.blogspot.com Produce leads Educate prospects about the benefits you offer Expand into new markets Influence the people who influence others (the trendsetters) Make your name known to people who have never heard of you Pre-sell
your offering (prior to the sales persons call) Expand upon a public relations story Tell the story of your company Add authority to your message (by putting it into print, people equate advertising with success) Build your corporate identity Build confidence in your product/services Dispel an ugly rumor Keep your name in the forefront of your customers minds Head off competitors Go after competitors business Prove your quality with success stories Make your stockholders happy Assert your leadership Maintain a constant public presence Help your direct mail pay off Announce the existence of your product Gain credibility Become a brand name Establish a niche Highlight testimonials from satisfied customers Test something Create a desire to buy Make sales Obtain names for your prospect or customer mailing list Inform many people at the same time Motivate people to call or e-mail or send coupon Engage in research by studying the profiles of respondents Prove your superiority ... to earn a profitProjectsformba.blogspot.com 13
14. Projectsformba.blogspot.com PROS AND CONS OF ADVERTISEMENTSAdvertising - Good or Bad?"Advertising Good or Bad" In todays society, one must consider Is there any advantage ofadvertising? In many cases it is only disadvantageProjectsformba.blogspot.com 14 15. Projectsformba.blogspot.com- An annoying hindrance in our daily lives. It gets on our nerves, distorts thetruth, and adds to the cost of the product. Advertising is designed for onepurpose - to sell. To achieve this goal, advertises are willing to stretch anddistort the truth, just to convincing people to buy their product. Forexample, an advertiser may convince buyers to purchase their product bystating that has been tested and found superior. In reality, the product is notlikely to be better than any other - the tests themselves doubtlesslyconducted by the promoting company - conducted to ensure at leastsomething is superior about the product, even if it is only the color. Theseadvertisements are worded carefully so that they are telling the "literal truth"- the truth is exactly what the words say, although people misinterprets themessage by using conversational logic as something different - somethingbetter. By using ingenious tactics like these, the populace is deceived intobuying a product that may not do what is required, or a product which abuyer may have never really needed. This is why advertising is a bad thing,for our society.FOLLOWING ARE THE BASIC ADVANTAGES ANDDISADVANTAGES OF ADVERTISMENT. Advantages DisadvantagesProjectsformba.blogspot.com 15 Self-service operations ability to possible provide detailed informationPURPOSE OF
RESEARCH:Projectsformba.blogspot.com 16 Some media limit the Editorial content throwaway rate surrounds ad Some media have high Message study possible Some media require long content; lead message can be standardized time Control over message Geographic flexibility available limited Many alternatives Low cost per contact investments Some media require large Gains pass along lack readership flexibility (for print) Standardized messages Attracts a large audience 16. Projectsformba.blogspot.com
17. Projectsformba.blogspot.comEFFECT OF ADVERTISEMENT ON THE BUYING BEHAVIOR OF FEMALES:As our basic research process is concerned with the effects of advertisementson the buying behavior of females so on this regards well conduct a fullresearch process to evaluate that how much the advertisement affects thebuying behavior of females.As it is a very known saying that Customer is the king of the marketNow here we believe that females are the queens of the market.As large areas of markets are occupied by the females so their buyingbehavior means a lot for the manufacturers. They must be very careful intheir marketing strategies and should consider the females attitude towardsconsumption of their product.Now here our basic purpose of research is to come to the result that what arethe basic things regarding to products that largely affect the buying behaviorof females and how much advertising influence their buying. When well getour findings then well give very fruitful suggestions to the marketingdepartments of the organizations that how they can increase their saleamongst the females.Projectsformba.blogspot.com 17 18. Projectsformba.blogspot.comRESEARCH PROCESSNow coming towards the basic topic, well start from here the major portion of our reportwhich is the research process through which well conclude what we find and what arethe recommendations for the marketing departments of the organizations.Projectsformba.blogspot.com 18 19. Projectsformba.blogspot.comTYPE OF RESEARCH:As our research is for all the organizations so we can say that our research type is BASICor PURE RESEARCH, which is on a general topic.Projectsformba.blogspot.com 19 20. Projectsformba.blogspot.com OBSERVATION:Observation means to see or feel what certain changes are occurring or new behaviors, attitudes and feelings are surfacing. It is the stage when problem is not defined yet.There are four types of observation such as:Projectsformba.blogspot.com 20
21. Projectsformba.blogspot.com 1) Currently existing problem 2) Situation requiring improvements 3) Theoretical or conceptual problem 4) Problem requiring empirical answersHere in our project, the problem can beSITUATION REQUIRING IMPROVEMENTBecause we are going to conduct the whole research process on the buying behavior offemales, so situation is satisfactory as females buy more and more with the passage oftime. We just want to reach at those results which tell us that which things influence thefemales buying. Is it advertisement, quality, appearance or any other thing?So our basic research is on a situation in which we observe the buying behavior offemales having different taste, different preferences, and living in different cities ofPakistan and are of different ages.Projectsformba.blogspot.com 21 22. Projectsformba.blogspot.com PRELIMINARY DATA COLLECTION: It means to seek information in order to know more about what we observedHere we are working on a broader term that which factors influence the females buyingbehavior so we have to collect data from different tools to confirm our observation thatwhich things actually influence the female buying and how much advertisement play rolein their buying behavior.Projectsformba.blogspot.com 22 Unstructured interviews STRUCTURED INTERVIEWS:In structured interviews the interviewer asks those questions which are pre planned. All the questions are well prepared and the interviewer can easily ask the questions in a series from an appropriate Respondent. It is also called formal interview. UNSTRUCTURED INTERVIEW: In unstructured interviews normally the interviewer asks the questions without any predetermined sequence. The question which comes first in the mind of the interviewer will be asked first. It is also called informal interview.For the purpose of collecting the preliminary data about our observation, we conductedsome unstructured interviews from following 2 SECTORS A. EDUCATIONAL SECTOR B. ADVERTISING AGENCY EDUCATIONAL SECTOR: FROM EDUCATIONAL SECTOR WE SELECTED THE FEMALE MEMBERS OF FOLLOWING INSTITUTIONSProjectsformba.blogspot.com 23 Structured interviews 23. Projectsformba.blogspot.comPrimary Data can be collected by the following two ways;1- Interviews2- Literature Survey 1. INTERVIEWS: Interviews are conducted for the following reasons To bring preliminary issues to the surface so that researcher can determine about variables of interest. To understand the scenario of situation. To explore the variables in the situation.INTERVIWS MAY BE OF TWO TYPES:
24. Projectsformba.blogspot.com 1. THE WELL KNOWNED FEMALE TEACHERS OF UNIVERSITY OF THE LAHORE 2. THE TEACHERS OF AN INSTITUTION, PAK AIMS IN LAHORE 3. THE FEMALE TEACHERS OF D & E ACADEMY GUJRANWALA. 4. FROM THE FEMALE STUDENTS OF UNIVERSITY OF THE LAHORE, PAK AIMS AND D & E ACADEMY.According to the structured and unstructured interviews which we have conducted to theabove females, we collected the following information about our situation problem Females mostly prefer the quality of the product Advertisement effects their buying but the routine products which they use to buy from many years, from them they dont see that for which product advertisement is good. they just buy that product as routine E.g. Max bar, head & shoulders shampoo Females are more attractive towards products like cosmetics, clothing, shoes Especially working women Advertisement is also the biggest cause to influence the buying behavior of females but advertisements should be approved by the marketing departments of companies. ADVERTISING AGENCYProjectsformba.blogspot.com 24 25. Projectsformba.blogspot.com2. LITERATURE SURVEYS:It is also a part of Primary Data Collection. The purpose of literature review is to ensurethat no variable is ignored that has been consider important in the past.Literature Survey can be defined in the following manner;Projectsformba.blogspot.com 25 26. Projectsformba.blogspot.com Documentation of comprehensive review of published and unpublished work from secondary sources of data in area of interestAs far as our topic is concerned, we selected the following literatures from internet forthe purpose of preliminary data collection 1) AAEC 3100 Food and Fiber Marketing Dr. Steven C. Turner Chapter 6 Analyzing Consumer Markets & Psychological 2) From the study of an article published in the site www.csustan.edu/market/petrosky/Old3410/34Lect5CB/tsld0...In this article we found the following things according to consumer buying behaviorCharacteristics Affecting Consumer Behavior Buyer Psychological Personal Social CultureProjectsformba.blogspot.com 26 Personal Social Cultural Buying BehaviorIn which we found the following data thatMajor Factors which Influence the Consumer Behavior can be 27. Projectsformba.blogspot.comFactors Affecting Consumer Behavior: Culture Social Class People within a social class tend to exhibit similar buying behavior. Occupation SOURCE of Income Education WealthMost basic cause of a persons wants and behavior Values Perceptions Subculture Groups of people
with shared value systems based on common life experiences. Mature ConsumersFactors Affecting Consumer Behavior: Social Reference Group influence: Membership Groups: Primary and Secondary Non-membership groups: Aspiration and Dissociative More important with publicly consumed products Family influences: Stage of the family lifecycle Buying Roles in the family Factors Affecting Consumer Behavior: Psychological Psychological Factors Motivation Perception LearningProjectsformba.blogspot.com 27
28. Projectsformba.blogspot.com Beliefs and AttitudesSo according to these literature surveys and from the interviews, we confirm ourobservation that there are some specific things which highly influence theconsumers buying behavior, especially of female customers.Projectsformba.blogspot.com 28 29. Projectsformba.blogspot.com PROBLEM DEFINITIONAfter the preliminary data collection, we can now develop a statement to explain thebasic problem.Any gap between desired situation and actual situation is called Problem and briefstatement that explains any thing is called Definition. So, Problem Definition means:A statement that explains what the real problem is, what types of factors are involved in this problem and finally what are consequences of a problem.Projectsformba.blogspot.com 29 30. Projectsformba.blogspot.comAfter going through interviews and literature review we check the following essentialelements of Problem Definition: 1) Antecedents(Contributing Factors) 2) Real Problem(What is Wrong) 3) Consequences(Results)The problem definition of our project can be explained with the help of followingdiagram: (Real situation) (Consequences) EFFECTS ON BUYING BEHAVIOUR OF PRICE AND QUALITY ORIENTED FEMALES ECONOMY 1- PRICE 2- QUALITY 3ADVERTISEMENT (Antecedents) 4- IMPORTED PRODUCTS 5PURCHASING POWER 6STATUSANTECEDENTS: Antecedents are the contributing factors which are responsible for the real problem. In our project antecedents are1- PRICE2QUALITY3- ADVERTISEMENT4- IMPORTED PRODUCTS5PURCHASING POWER6- STATUSProjectsformba.blogspot.com 30 31. Projectsformba.blogspot.comThese are the antecedents because these are the basic reasons behind the buying behaviorof females. These above antecedents effects directly or indirectly to the buying behaviorof females.REAL PROBLEM: As we know that well defined problem is half solved and symptoms are not the real problems.Real problem is that situation which results from the
antecedents or contributing factors.So in our project real situation which is created from the contributing factors is:How the buying behavior of females is influencing? Which factors influence it and is theadvertisement a basic factor?CONSEQUENCES: Consequences are the results of real problemIn our project consequence is The economy will be price and quality orientedthis consequence is the result of the preliminary data collection as when we conductinterviews, mostly females think that they prefer the quality from all other factors.Projectsformba.blogspot.com 31
32. Projectsformba.blogspot.com THEORETICAL FRAMEWORK It is a logical developed, described & elaborated network of associations among variables that have been identified through interviews, observation & literature surveyVariables: Projectsformba.blogspot.com 32 Imported products Now in the research process well see that which are the basic most important factors which mostly influence the buying behavior of females. 3. Moderating Variable The variable which has strong contingent effect on the relationship of dependent Substitutes Purchasing power Advertisement Quality Price Extraneous variable1. Dependent variable Any variable that will depend on others for its valuesIn our project, our dependent variable isBUYING BEHAVIOR OF FEMALESNow well explain the effect of other factors on this dependent variable in detail in ourwhole project.2. Independent Variables: It is the variable on which the dependant variable depends upon for its value The major causes of a problem are called independent variables. In our project, our independent variables are: Intervening variable Moderating variable Independent variable Dependent variable 33. Projectsformba.blogspot.com The identification of key variables is very important in every research study.It can be defined as: A variable is anything that takes different values. Types of Variables: & independent variable It is also called second independent variable. Projectsformba.blogspot.com 33 Sales taxAs sales tax has little effect on the buying behavior so it can be easily ignoredHere we show the relationship of different types of variables diagrammaticallyProjectsformba.blogspot.com 34 Willingness to buyThe effect of these variables can only be felt but we can not measure them quantitatively.These variables contribute an important role on the creation of the problem.5. Extraneous Variables: There are infinite numbers of factors which may have impact on the situation but we will ignore these factors by assuming them as constant are called extraneous variables. In our project extraneous variable is as follows Status consciousness
Above is the moderating variable because it has a strong contingent effect on therelationship of dependent variables and independent variables. As if marketingdepartments make the good strategies to attract the customers then they can increase theirsale volume.4. Intervening VariablesThere are some factors which have effect on the situation but we can not measure them quantitatively, we can just feel their effect.These variables will be created automatically by the working of independent variables.In our project intervening variables are as follows: Role of marketing departments of the companies 34. Projectsformba.blogspot.comIn our project, our moderating variables are:
35. Projectsformba.blogspot.com (Dependant Variable) (Intervening Variables) (Independent Variables) Imported products Substitutes Purchasing power Advertisement Quality Price -Status consciousneBuying behavior of ss females -willingness (Moderating Variables) (Extraneous Variables) Role of the Sales tax marketing departmen ts of companies. . Projectsformba.blogspot.com 35 36. Projectsformba.blogspot.comProjectsformba.blogspot.com 36 RELATIONAL This can be further classified as o Co relational hypothesis o Casual hypothesis.Co relational Hypothesis:When a statement will create relationship among more than two factors or when causes of a problem are more than one, the hypothesis about such a problem will be called as co relational hypothesis. OR When there is only one problem and there are a lot of factors or variables which Increase the problem is also called Co relational Hypothesis.In our study there is the situation of buying behavior of females and there are manyindependent variables which influence the buying behavior of females. Now we will checkthe relationship amongst those variables by creating the Hypothesis and applying certainStatistical tools which will tell us that which factor is strongly in connection with thebuying behavior of females.Projectsformba.blogspot.com 37 DESCRIPTIVE 37. Projectsformba.blogspot.com HYPOTHESIS DEVELOPMENT A hypothesis is a logically conjectured relationship between two or more variables expressed in the form of a testable statement. OR A statement whose validity will be confirm in future by applying different statistical toolsSo, in hypothesis we confirmed the validity of any statement after the experiments or datacollection.KINDS OF HYPOTHESIS: 38. Projectsformba.blogspot.comSo the following is the creation of Hypothesis of different factors that affect the buyingbehavior of femalesFemale preferences:H: females do not prefer quality of the product while buyingH1: females prefer quality of the products
while buying.Influence of advertisements:H: Advertisement has no influence on the buying behavior of femalesH1: advertisement has influence on the buying behavior of females.Status consciousnessH: females do not prefer status/self image while buying.H1: females prefer status/ self image while buying.Negative effects of advertisements:H: there is not any negative effect of advertisement on the buying behavior of femalesH1: there is any negative effect on the buying behavior of females.Advertisements of substitutes:H: advertisements of the substitutes do not affect the popularity of the product.H1: advertisements of the substitutes affect the popularity of the product.Imported goods:H: imported good are not more attractive for femalesH1: imported goods are more attractive for females.Satisfaction level:H: good advertisements are not the basic cause of satisfaction of females towards consumption of goods.H1: good advertisements are the basic cause of satisfaction of females towards consumption of goods.Advertised products:H: females do not prefer the advertised products on necessities of lifeH1: females prefer the advertised products on the necessities of life.Product success or failure:H: advertisements can not become the cause of any product success or failure.H1: advertisements can become the cause of product failure or success.Demand of the product:H: advertisements cannot create the demand of an y product.H1: advertisements can create the demand of any product.Projectsformba.blogspot.com 38

39. Projectsformba.blogspot.comProjectsformba.blogspot.com 39 40. Projectsformba.blogspot.com RESEARCH DESIGN:It is a major and pivotal step of business research. The step involves the overall schemeabout data collection.Research design is a plan and structure of investigation to obtain answer to researchquestion. It is overall scheme and program of research which includes an outline of whatthe researcher will do from developing hypothesis and to the final analysis of data. Research design constitutes the blue print for collection, measurement and analysis ofdata. R.D is plan and structure of investigation to obtain answer to research questions.PURPOSEOF TYPE OFSTUDY INVESTI RESEAR GATION CHER INTERFE RENCE STUDY SETTING UNIT OF ANALYSI S TIME HORIZO N SAMPLIN G DATA COLLEC MEASURE TION MENT OF METHOD MEASURE S S Projectsformba.blogspot.com 40 41. Projectsformba.blogspot.com PURPOSE OF STUDY: In the purpose of study, researcher defines the purpose behind the research. These may be 4 types of purposes: 1. exploration 2. description 3. hypothesis 4. case study Here in our research process, our purpose of study is to evaluate that WHAT affects the females buying
behavior, WHICH are the factors, which influence the buying behavior of females, HOW advertisements affect the buying behavior of females. So we can say that as we are explaining an existing situation so our purpose of study is Description. Objective of descriptive study is to learn the who, how, what, when, where of a topic. TYPES OF INVESTIGATIONS: Investigation is conducted to complete the research process efficiently. Investigations may be of two types: 1. casual investigation 2. co relational investigation CO RELATIONAL INVESTIGATION: The investigation which is conducted to explain the effect of different variables on the situation is called co relational investigation.In simple words, we can say that when there are more than one reasons of a problem it iscalled co relational investigation.In our research process,Our type of investigation is Non Casual because there is more than one reason whichinfluences the buying behavior of females. Projectsformba.blogspot.com 41
42. Projectsformba.blogspot.comRESEARCHER INTERFERENCE:In researcher interference we see that which type of study is going to be conduct by ourgroup. Either it is 1. co relational study, in which minimum involvement of researcher is required because it is based on findings of others, or 2. Casual study, in which researcher involvement is more. As we are conducting research through the findings of others so our involvement is minimum in the findings of research. STUDY SETTING: It means in which type of environment weve conducted our research process. The study setting may be of 2 types: a. Contrived This can be further classified as o Lab experiment. b. non-contrived This can also be further classified as o Field study. o Field experiment. Noncontrived: When the research is conducted in natural or normal environment, it will be called non contrived study. Normally, this type of study is conducted inside the organization. Field Study: When the researcher has to co related the factors then investigation out side the organization is called as Field Study. So, the type of our study setting is non-contrived and during our research we also conducted Field Study. Projectsformba.blogspot.com 42 Non Probability Sampling Projectsformba.blogspot.com 43 Probability Sampling OrganizationsIt depends upon the nature of problem that is being investigated. In our research process, weve gathered the data from INDIVIDUALS in the form of questionnaires and from ORGANIZATIONS in the form of interviews. TIME HORIZON: In which we mention that how much time weve used in data collection. Time horizon has two types 1. cross-sectional 2. longitudinal Longitudinal study: As In Longitudinal method the whole data is collected again and again with out any time interval. So in our research time horizon is Longitudinal. SAMPLING: The
process of using a small number of items or parts of a large population to make conclusions about the whole population The basic purpose of sampling is; To obtain maximum information about the characteristics of population with in less time, cost and effort There are two types or styles of Sampling. That is Groups Dyads Individuals 43. Projectsformba.blogspot.com UNIT OF ANALYSIS:It is aggregation of data during subsequent analysis. Data can be gathered form:
44. Projectsformba.blogspot.comWHERE PROBABILITY SAMPLING CONTAINS: 1. Complex random sampling This further can be classify as o Systematic Sampling o Stratified Sampling o Cluster Sampling o Area Sampling o Double Sampling 2. simple random samplingAND NON PROBABILITY SAMPLING CAN BE CLASSIFIED AS: 1. Convenient sampling 2. purposive sampling o judgment approach o quota approachhere in our research process, weve done the complex random sampling under the head of probabilitysampling in which weve used the CLUSTER SAMPLING APPROACH in which sample is chosen onthe basis of intra- group heterogeneity and inter-group homogeneity.As we are comparing here the females with females so our sampling criteria is inter-group homogeneity.Projectsformba.blogspot.com 44 45. Projectsformba.blogspot.comDATA COLLECTION METHODS:There are two types of data collection methods. 1. primary data collection structured interviews unstructured interviews 2. secondary data collection questionnairesStructured Interview: Structured Interviews are conducted when it is known at the outsetwhat information is needed. The interviewer has a list of pre-determined questions to beasked of the respondents either personally, through the telephone, or by sending the mainthrough electronic mail.Un-Structured Interview: In case of unstructured interview, the interviewer asks thequestions without any predetermined sequence. Those questions are asked first whichcome in the mind of the interviewer first.So we conducted Structured Interviews with the employees of different selectedorganizations. And our method of collecting Primary Data is through StructuredInterviews and Un-structured Interviews which we have already discussed in preliminarydata collection methods.Unobtrusive measures: It means to trace the measures from a primary source that doesnot involve people.In the primary data collection, we also use this technique by just observing the buyingbehavior of females of our homes and near our homes.Projectsformba.blogspot.com 45 46. Projectsformba.blogspot.comQuestionnaire: A questionnaire is a reformulated written set of questions to whichrespondents record their answers, usually within rather closely defined
alternatives.Questionnaires are an efficient data collection mechanism when the researcher knows exactlywhat is required and how to measure the variables of interest.Questionnaire can be administered personally, mailed to respondents, or electronicallydistributed.During our research process we made close ended questionnaires, and these arepersonally administered.MEASUREMENT OF MEASURES: Measurement of measures is a key step in research design; it means to measure theinformation collected from different respondents by different ways by using differentmethods of data collection, to check the accuracies and reliability of data or informationcollected. It is also called the MOM of research.Scale: Scale is a tool by which the individual units are distinguished on the basis ofvariable of interest in some meaningful way.We can say that scales will categories the things into different groups.Types of Scales a) Nominal Scale b) Ordinal Scale c) Interval Scale d) Ratio ScaleAPPROACHES OF SCALING: a) Dictorious scaling. b) Category scaling. c) Likert scaling.Projectsformba.blogspot.com 46
47. Projectsformba.blogspot.com d) Semantic scaling. e) Numerical scaling. f) Ranking scaling. g) Fixed scaling. h) Psychological scaling i) Graphic scalingIn our Central EditingFIELD EDITING:According to this approach, researcher makes the corrections at the time of gettinginformation from the respondents.So in our research process, we used this approach at each and every step due to which ourdata is correct and having no mistake or blanks in it.Now we can analyze it through different techniques.Projectsformba.blogspot.com 47 Field editing designing of questionnaire, we have used the following approaches in questions,Dictorious scalingCategory scalingSemantic scalingRanking scalingGraphical scaling (in every question)DATA PREPERATION FOR ANALYSIS:Before analyzing the data, weve edit our data due to the reason that there should be notany mistake in data which can cause the error in the data analysis.Types of Editing 48. Projectsformba.blogspot.comProjectsformba.blogspot.com 48 49. Projectsformba.blogspot.com DATA ANALYSISFor the purpose of analyze the validity and reliability of data, certain statistical toolsAveragesCorrelationPercentage etc are applied. Here for the confirmation of our research we will use thepercentage technique in which mea of the data is also calculated.NOW WELL ANALYZE ALL THE FACTORS INVOLVED IN ALL QUESTIONSOF OUR QUESTIONNAIR TO COME AT THE CONCLUSION THAT WHAT ARETHE BASIC FACTORS WHICH INFLUENCE THE FEMALE BUYING BEHAVIORAND HOW MUCH ADVERTISING PLAYS THE ROLE IN IT:Well
analyze here each and every question one by one, keep in mind that thisquestionnaire was only for females.Projectsformba.blogspot.com 49
50. Projectsformba.blogspot.comQ#1: What is your preference while buying?Frequency TableYour preference while buying Frequency Percent Valid Percent Cumulative Percent Valid price 33 11.0 11.0 11.0 quality 134 44.7 44.7 55.7 appearance 24 8.0 8.0 63.7 local or 22 7.3 7.3 71.0 imported all of the 87 29.0 29.0 100.0 above Total 300 100.0 100.0GRAPHICAL REPRESENTATION: price all of the above local or imported quality appearanceProjectsformba.blogspot.com 50 51. Projectsformba.blogspot.comIN THE NUT SHELL: In this question we want to evaluate that which factors basicallyinfluence the female buying. We filled the 300 questionnaires from 300 femalesof different ages and from different areas. When we took the frequency of ourresults provided by females, we come to the result that the main basic factorwhich hardly influences the female buying is PRODUCT QUALITY. Manyfemales have also selected the price and appearance and imported products, butaccording to the results it is approved that they give more preference to thequality of any product.At the second place, mostly females also selected the last option which is ALLOF THE ABOVE, which means now days females do shopping according to aplanning. They buy each and every thing with full concentration and do notcompromise with any thing while buying.So at the result, we can say that females give first priority while buying to thequality and then to the other influencing factors. HENCE THE RESULTQ#2: Do advertisements influence your buying?Projectsformba.blogspot.com 51 52. Projectsformba.blogspot.comFrequency TableDo adver influence buying Frequency Percent Valid Cumulative Percent Percent Valid yes 193 64.3 64.3 64.3 no 58 19.3 19.3 83.7 I dont 49 16.3 16.3 100.0 know Total 300 100.0 100.0GRAPHICAL REPRESENTATION: 300 200 100 Count 0 yes no i dont know do adver influence buyingIN THE NUT SHELL:Projectsformba.blogspot.com 52 53. Projectsformba.blogspot.comWe structured the above question according to the basic requirement of ourresearch topic which is EFFECT OF ADVERTISEMENT ON THE BUYINGBEHAVIOUR OF FEMALES.So according to the above findings, we can see that 193 females are agreedupon the fact that their buying influenced with the advertisements. Whichmeans advertisement is also a basic factor of influencing females buyingbehavior.Secondly 58 females said that advertisement do not influence their buying. Thismay be
due to the fact that Pakistan is a poor country and females cant bear toomuch expensive things so they always cant follow the advertisements whilebuying the necessities of life.And the last portion of females, which is 49they said that they dont have anyidea about it which means they do shopping according to the routine matters.They dont prefer which things are newly emerging in advertising Medias. HENCE THE RESULTQ#3: While buying, you are more conscious towards:Projectsformba.blogspot.com 53
54. Projectsformba.blogspot.comFrequency TableConscious towards Frequency Percent Valid Cumulativ Percent e Percent Valid advertise 33 11.0 11.0 11.0 ment status 51 17.0 17.0 28.0 price, 141 47.0 47.0 75.0 quality all of the 75 25.0 25.0 100.0 above 300 Total 100.0 100.0GRAPHICAL REPRESENTATION: advertisement all of the above status price, qualityIN THE NUT SHELL:Projectsformba.blogspot.com 54 55. Projectsformba.blogspot.comAbove question was administered by our group by keeping in mind the femalepsyche that when they go to the market to buy something, they are moreconscious towards which things. So according to the results we also got thesame answers as we got in question one because mostly females said that theyprefer quality and price factor while buying. They do not compromise with thequality of the product. Others are the secondary things.Here we can observe that status also influence the buying behavior because inour country females often consider the status while buying. HENCE THE RESULTQ#4: Do you prefer status/self image during buying?Frequency TableProjectsformba.blogspot.com 55 56. Projectsformba.blogspot.comStatus preferences Frequenc Percent Valid Cumulati y Percent ve Percent Valid i think so 154 51.3 51.3 51.3 i dont 44 14.7 14.7 66.0 think so seldom 64 21.3 21.3 87.3 think so i dont 38 12.7 12.7 100.0 know Total 300 100.0 100.0GRAPHICAL REPRESENTATION 180 160 140 120 100 80 60 40 Count 20 i think so i dont think so seldom think so i dont know status preferencesIN THE NUT SHELL:Projectsformba.blogspot.com 56 57. Projectsformba.blogspot.comHere we can see that how status effects the female buying behavior. Here in ourcountry females are very conscious for their self image so we can see that in theresults 144 females agree that they consider the self image while buying.Secondly females said that they seldom think that they consider the status whilebuying because they also consider the price and quality of the products as wellbecause they are also very important.At the last some females said that they are not status
conscious and some saidthat they dont know that either they consider the self image while buying ornot. These may be those females which only prefer to buy basic necessities lifeand belongs to middle or lower middle families. HENCE THE RESULTQ#5: Which type of advertisement is more attractive for you?Projectsformba.blogspot.com 57
58. Projectsformba.blogspot.comFrequency TableType of advertisement Frequency Percent Valid Cumulative Percent Percent Valid product 165 55.0 55.0 55.0 institutional 51 17.0 17.0 72.0 celebrity 84 28.0 28.0 100.0 Total 300 100.0 100.0GRAPHICAL REPRESENTATION: celebrity product institutionalIN THE NUT SHELL:Projectsformba.blogspot.com 58 59. Projectsformba.blogspot.comHere well se that which advertisement type is more attractive for females. Thisquestion was made for the purpose to suggest the companies that females preferwhich types of advertisements.Here we can see that product advertisement is at the top of the list. Females aremore familiar towards product advertisements instead of other types.Secondary celebrity advertisements are also very famous amongst the femalesbut there should be improvements in this type for becoming more successful. HENCE THE RESULTQ#6: Is there any negative effect of advertisement on your buying behavior?Frequency TableProjectsformba.blogspot.com 59 60. Projectsformba.blogspot.comNegative effect of advert Frequency Percent Valid Cumulative Percent Percent Valid yes 59 19.7 19.7 19.7 no 66 22.0 22.0 41.7 sometimes 147 49.0 49.0 90.7 never 28 9.3 9.3 100.0 Total 300 100.0 100.0GRAPHICAL REPRESENTATION: 160 140 120 100 80 60 40 20 Count 0 yes no sometimes never negative effect of advertProjectsformba.blogspot.com 60 61. Projectsformba.blogspot.comIN THE NUT SHELL:Now well see that we know that advertisements have influencing effects on thebuying behavior of females but is advertisement has negative effects as well ornot.For this purpose we illustrated the above questionnaire and took feedback fromfemales. From that feedback we came to know that mostly females think thatsometimes advertisement effects negatively. These negative effects may be ofany type.On the second and third place we can see that ratio is almost same, somefemales think that there are definitely bad effects of advertisement and somethink that there is no any negative effects of advertisements. And some said thatthere can never be any bad effects of advertisements. Advertisements aresuccessful always.
HENCE THE RESULTQ#7: Negative effects of advertisement may be of which type?Frequency TableProjectsformba.blogspot.com 61
62. Projectsformba.blogspot.comNegative effects may b Frequency Percent Valid Cumulative Percent Percent Valid You often 109 36.3 36.3 36.3 neglects the price while purchasing Too much 39 13.0 13.0 49.3 prefer the celebrity advertisement Prefer only 73 24.3 24.3 73.7 appearance and reputation of company, not quality others 79 26.3 26.3 100.0 Total 300 100.0 100.0GRAPHICAL REPRESENTATION: others You of ten neglects Pref er only appearan Too much pref er theIN THE NUT SHELL:Projectsformba.blogspot.com 62 63. Projectsformba.blogspot.comIn the above question we give some options regarding to negative effects ofadvertisements. That if there is any negative effect of advertisement then thatshould be what. So according to our research, we can say that females think thatwhen new advertisement come then they often neglect the price of the productand purchase that advertised product. They dont think that how much theproduct is expensive; they just go through to buy that product due to veryattractive advertisement.Also a group of females said that they think that they often see the goodappearance of the product and purchase that, they dont consider the qualitymuch at that time.And also a large number of females said there are also other negative effects ofadvertisements that appear according to the conditions. HENCE THE RESULTQ#8: Effectiveness and attractiveness of advertisement depends uponFrequency TableProjectsformba.blogspot.com 63 64. Projectsformba.blogspot.comAttraction towards Frequency Percent Valid Cumulative Percent Percent Valid slogan 54 18.0 18.0 18.0 trade mark 25 8.3 8.3 26.3 company 64 21.3 21.3 47.7 repute appearance 39 13.0 13.0 60.7 all of the 118 39.3 39.3 100.0 above Total 300 100.0 100.0GRAPHICAL REPRESENTATION: 140 120 100 80 60 40 20 Count 0 slogan company repute all of the above trade mark appearance attraction towardsProjectsformba.blogspot.com 64 65. Projectsformba.blogspot.comIN THE NUT SHELL:We make this question for the marketing departments of the companies tosuggest them that which things according to the females become anadvertisement attractive and effective. Thats things may be of followings:SloganTrade markCompany reputeAnd appearanceBut the females said that all of the above options can combinely make anadvertisement effective and attractive for females.If the companies give attention to all of the above things then they can attractthe females toward their products through advertisement. HENCE THE
RESULTQ#9: How the advertisements of substitutes affect the popularity of any productFrequency TableProjectsformba.blogspot.com 65
66. Projectsformba.blogspot.comAdvertisement of substitute Frequency Percent Valid Cumulative Percent Percent Valid Demand of the 121 40.3 40.3 40.3 product reduces You neglect 67 22.3 22.3 62.7 the product due to new advertisement of substitute it doesnt 112 37.3 37.3 100.0 effect Total 300 100.0 100.0GRAPHICAL REPRESENTATION: it dosnt effect Demand of the produc You neglect the proProjectsformba.blogspot.com 66 67. Projectsformba.blogspot.comIN THE NUT SHELL:Here is a question to check that if a new advertisement of the substitute of anyexisting product come then is that affects the popularity and sale volume of theexisting product.So according to the feedback we can see that 121 females said that demand ofthe existing product decreases due the advertisement of the new product and112 females said that it doesnt effect the popularity of the product whichmeans here is a controversy amongst the different group of females, whichmeans that females perceive the new advertisements differently according totheir mood and situations. HENCE THE RESULTQ#10: Which advertisement media is more attractive for you?Frequency TableProjectsformba.blogspot.com 67 68. Projectsformba.blogspot.comAdvertisement media Frequency Percent Valid Cumulative Percent Percent Valid electronic 187 62.3 62.3 62.3 news paper 21 7.0 7.0 69.3 fashion 52 17.3 17.3 86.7 magazines bill boards 34 11.3 11.3 98.0 others 6 2.0 2.0 100.0 Total 300 100.0 100.0GRAPHICAL REPRESENTATION: 200 100 Count 0 electronic fashion magazines others new s paper bill boards advertisement mediaProjectsformba.blogspot.com 68 69. Projectsformba.blogspot.comIN THE NUT SHELL:Now in this question well see that which advertising Medias are most popularamongst females.Now here we can see that electronic media is the basic most important mediafor the popularity of the advertisements amongst the females.On the second place we can also see that fashion magazines are also verypopular amongst females like akhbar-e-jahan and others. HENCE THE RESULTQ#11: How advertisements affect the level of your buyingFrequency TableProjectsformba.blogspot.com 69 70. Projectsformba.blogspot.comAdvertisement effect level of buying Frequency Percent Valid Cumulative Percent Percent Valid buy more 106 35.3 35.3 35.3 buy less 30 10.0 10.0 45.3 remains same 164 54.7 54.7 100.0 Total 300 100.0 100.0GRAPHICAL
REPRESENTATION: buy more remains same buy lessIN THE NUT SHELL:Projectsformba.blogspot.com 70
71. Projectsformba.blogspot.comHere we are checking that how the advertisement affects the level of the buyingof females. Is it positively affects or negatively or remains neutral.So here we can see that mostly females said their there level of buying remainssame with the new advertisements. They buy in the routine; there is not any bigchange due to advertisements.But on the second hand another big group of females said that their buyinglevel increases with the new and innovative advertisements. When anyadvertisement attracts them then they definitely buy that due to which theirbuying level increases. HENCE THE RESULTQ#12: Advertisements of imported products are more attractive for you due toFrequency TableProjectsformba.blogspot.com 71 72. Projectsformba.blogspot.comAdvertisement of imported products Frequency Percent Valid Cumulative Percent Percent Valid quality 120 40.0 40.0 40.0 reliability 77 25.7 25.7 65.7 company 59 19.7 19.7 85.3 image status 44 14.7 14.7 100.0 Total 300 100.0 100.0GRAPHICAL REPRESENTATION 140 120 100 80 60 40 Count 20 quality reliability company image status advertisement of imported productsIN THE NUT SHELL:Projectsformba.blogspot.com 72 73. Projectsformba.blogspot.comFemales in our country prefer a lot the imported goods on local goods so weconducted the research for this purpose also that what are the reasons behindthis so that our local companies can also adopt that strategies so that theirselling will also increaseSo according to the results we can see that females prefer them due to thequality and reliability of that products, the imported products are more reliableand have the good quality due to which they prefer them and neglect the localgoods. HENCE THE RESULTQ#13: Which advertisement, for the following categories, is more attractive for youFrequency TableProjectsformba.blogspot.com 73 74. Projectsformba.blogspot.comMore attractive advertisement categories Frequency Percent Valid Cumulative Percent Percent Valid basic 91 30.3 30.3 30.3 accessories home 52 17.3 17.3 47.7 appliances art and craft 36 12.0 12.0 59.7 cosmetics 120 40.0 40.0 99.7 others 1 .3 .3 100.0 Total 300 100.0 100.0GRAPHICAL REPRESENTATION: others basic accessories cosmetics home appliances art and craftIN THE NUT SHELL:Projectsformba.blogspot.com 74
75. Projectsformba.blogspot.comWe know that advertisement is very popular amongst the females but here wewanted to know that advertisements of which category are mostly popular.Here according to the results female like the ads of cosmetics more and thencome towards the basic accessories of life and on the other categories. HENCE THE RESULTQ#14: Degree of your satisfaction, towards consumption of goods depends uponFrequency TableProjectsformba.blogspot.com 75 76. Projectsformba.blogspot.comDegree of satisfaction, consumption of goods Frequency Percent Valid Cumulative Percent Percent Valid good quality 174 58.0 58.0 58.0 price 38 12.7 12.7 70.7 appearance 34 11.3 11.3 82.0 company 30 10.0 10.0 92.0 image others 24 8.0 8.0 100.0 Total 300 100.0 100.0GRAPHICAL REPRESENTATION: 200 100 Count 0 good quality appearance others price company image degree of satisfaction, consumption of goodsIN THE NUT SHELL:Projectsformba.blogspot.com 76 77. Projectsformba.blogspot.comSatisfaction is very important for every one, towards consumption of goods. Ifa costumer is satisfied then he will again and again purchase that product.According to our research we came to know that females become satisfy mostlydue to good quality of the product.Price, appearance, company images have the secondary importance for thesatisfaction of females towards consumption of goods. HENCE THE RESULTQ#15: Do you prefer advertised products on basic necessities of life during buyingFrequency TablePrefer advertised products on basic necessariesProjectsformba.blogspot.com 77 78. Projectsformba.blogspot.com Frequency Percent Valid Cumulativ Percent e Percent Valid i think so 125 41.7 41.7 41.7 i dont think 82 27.3 27.3 69.0 so seldom think 60 20.0 20.0 89.0 so i dont know 33 11.0 11.0 100.0 Total 300 100.0 100.0GRAPHICAL REPRESENTATION: i dont know seldom think so i think so i dont think soIN THE NUT SHELL:Projectsformba.blogspot.com 78 79. Projectsformba.blogspot.comHere is a question to see the importance of advertised products. We ask fromthe females that if they prefer the advertised products on basic necessities thenwe can see that almost 42 % females think that yes they often prefer theadvertised products on the basic necessities.And also on the second hand almost 28 % females think that they do not preferthe advertised products on the basic necessities of life. HENCE THE RESULTQ#16: Is advertisement become the cause of product failure or successFrequency TableProjectsformba.blogspot.com 79
80. Projectsformba.blogspot.comAdvertisement cause product failure or success Frequency Percent Valid Cumulativ Percent e Percent Valid i think so 125 41.7 41.7 41.7 i dont think 53 17.7 17.7 59.3 so seldom think 52 17.3 17.3 76.7 so i dont know 42 14.0 14.0 90.7 5 28 9.3 9.3 100.0 Total 300 100.0 100.0GRAPHICAL REPRESENTATION: 140 120 100 80 60 40 20 Count 0 i think so seldom think so 5 i dont think so i dont know advertisement cause product failure or successProjectsformba.blogspot.com 80 81. Projectsformba.blogspot.comIN THE NUT SHELL:This question was made to get the idea of females that what they think that canadvertisement cause any product failure or success?So according to the results 41.7 % females said that yes a good advertisementcan be the cause of product success and a bad advertisement can become thecause of product failure.The ratios for the rest options are almost same. HENCE THE RESULTQ#17: Is advertisement increases demand of any productFrequency TableProjectsformba.blogspot.com 81 82. Projectsformba.blogspot.comAdvertisement cause demand of product Frequency Percent Valid Cumulative Percent Percent Valid yes 214 71.3 71.3 71.3 no 39 13.0 13.0 84.3 i dont know 47 15.7 15.7 100.0 Total 300 100.0 100.0GRAPHICAL REPRESNTATION: i dont know no yesProjectsformba.blogspot.com 82 83. Projectsformba.blogspot.comIN THE NUT SHELL:In the above question we got ideas that can advertisement create more demandfor the products or not.So here we can see that 71 % females said that yes advertising can create thedemand for any product. If advertising agencies make good advertisements thenthe demand of their products will also be increased. HENCE THE RESULTQ#18: How marketing departments of companies make advertisement interestingHow mkt dept make advertisement interestingProjectsformba.blogspot.com 83 84. Projectsformba.blogspot.com Frequency Percent Valid Cumulative Percent Percent Valid By using 37 12.3 12.3 12.3 famous celebrities By using 35 11.7 11.7 24.0 different medias By 63 21.0 21.0 45.0 improving appearance of products All of the 165 55.0 55.0 100.0 above Total 300 100.0 100.0GRAPHICAL REPRESENTATION: 180 160 140 120 100 80 60 40 20 Count 0 By using famous cele By improving appeara By using different m All of the above how mkt dept make advertisement interestingIN THE NUT SHELL:Projectsformba.blogspot.com 84 85. Projectsformba.blogspot.comIn this question we collect the suggestions from the females that how the marketingdepartments can
make the most attractive advertisements due to which females becomemore influence towards the product and buy that product.We gave the following options to the females for selection that areBy using famous celebritiesBy using different MediasBy improving product appearanceBut 55 % females are agreed upon one condition that all of the above situations can becombinely put in the process of making attractive advertisements to influence the buyingbehavior of females. HENCE THE RESULTHYPOTHESIS TESTING:Projectsformba.blogspot.com 85

86. Projectsformba.blogspot.comProjectsformba.blogspot.com 86 87. Projectsformba.blogspot.com FINDINGSIn our whole research process, we get the following findingsProjectsformba.blogspot.com 87 Marketing departments of the companies can make the advertisements more attractive by using famous celebrities, different medias and by improving the appearance of the product. CONCLUSIONSThe purpose of our research is to find out the female behaviors towards thebuying of the products and also to see that how much advertising affects theProjectsformba.blogspot.com 88 Demand of the products can be increased with the help of good advertisements. Advertisement can become the cause of product failure or success. Females mostly satisfy with the good quality of the product. Imported goods are mostly preferred due to their good quality and reliability. Advertisement doesnt much effect the level of buying. The most attractive advertising media in Pakistan is electronic media Company reputation effects also in the effectiveness of advertisements. Advertisements can become more effective through innovative slogans, different trade marks. Advertisement often left some negative effects in the minds of consumer, according to our research process that negative effects may be categorized in this sense that females neglect the price of the product and buy that advertised product at any cost. The most popular advertisement type amongst the females is product advertisement Self image effects too much when females buy any product Advertisement influence the female buying behavior but not more than quality of the product Females are more concerned towards the quality of the product while buying 88. Projectsformba.blogspot.comThat: 89. Projectsformba.blogspot.combuying behavior of females. The basic purpose of our research is to getinformation from females and then suggest to the companies that what theycan do maximum to improve their selling. Is advertisement is the biggesttool they have to
attract the females towards their products or there are someother factors as well which have the affects more than advertisements. So forthis purpose we planned a full fledge research process and for this purposewe did the cluster sampling and made the questionnaires to fill from thesample group to come to the conclusions.After collecting the data we analyzed it and made some conclusions basedon findings. We have found that females prefer the quality of the product atvery first stage. Now days females are very intelligent, they know thatadvertisements and appearances of the products may be fake and canperceive them so they firstly check the quality of the product and then buythat product in the routine.As we conducted the whole research from the very qualified females livingin good areas so their responses are very effective for our research process.The over all trend was seen in the questionnaires regarding to the quality ofthe products so which means females do not compromise with the quality.People have mixed results about the advertisements of the products. On theone hand it also highly influences the buying behavior of females due toattractive Medias, different types, innovations in slogans but on the otherhand it also has some negative effects as well. If a good advertisement canbecome the cause of the success of any product then a bad advertisement canbecome the cause of failure of any product.More over advertisements can effect negatively and also positively to thechildren. They can perceive any thing from the ads so advertisements shouldbe much ethical and good for the children and teenagers.Further more according to females, the marketing departments should makethe advertisements better through new and unique strategies if they want toincrease their sale and want to use the advertisement a big tool to increasetheir sale volume. RECOMMENDATIONSAfter getting the conclusions of our research, we want to give somerecommendations to the marketing departments of the companies so thatProjectsformba.blogspot.com 89
Packaging must be g Advertisement affects the buying behavior but it must be realistic We also asked an open ended question from the females, they give us some value able suggestions which we want to give you And rewardingHere we suggest you the ten steps to make advertising successful1. Narrow your market to a specific group of prospective clients. Find your nichemarket.2. Analyze your media. Does it appeal to your niche market? If it does, tailor yourads to relate directly to your media.3. Appeal to the impulse in the viewers of your ad. Call your readers to action *now*... Emphasize the benefits which a consumer will get after purchasing yourproduct. Offer something free in the ad itself.4. Use other medias as well for creating more demand of your products. Analyzethe advertising strategies of others.5. Design "killer" headings (slogans). Use new
and interesting techniques whiledesigning a message for your product.6. Use different famous celebrities to become the more attractive advertisement.7. Use realistic facts and figures in your ads so that the customers become moreloyal towards your product.8. Repeat again and again your advertisements so that the advertisement of yourproduct can continuously be seen by customers.9. Clearly define all the attributes of the product so that customers also believe thatthis product has also a good quality.10. Now promise yourself this: Youre going to get your ads noticed by writing themyourself and taking these steps to advertising success. Relevant Truth full Advertisement can do any thing, it can create the demand of any product but the advertising strategies should be effective so that females believe on these ads and buy the products so advertising should be: As females mostly prefer the quality of the products so they should highly focus on the quality of their products. 90. Projectsformba.blogspot.comthey can focus on those things through which they can increase their salevolume amongst the females. Advertisements influence but to some extentProjectsformba.blogspot.com 90ood to influence the buying behavior of females
Advertisements can change the preferences of females while buying but that must be realistic.So at the end we are strongly recommending you that if you want to increasethe sale volume of your product then firstly make its quality good, makerealistic advertisements and use effective medias.Projectsformba.blogspot.com 91 Females prefer electronic medias advertised products. Medias play an important role and advertisements must be interesting. Buying behavior varies from region to region so advertisement does not affect a lot. 91. Projectsformba.blogspot.com
A comparison study on the top three two wheeler companies in india Document Transcript
Projectsformba.blogspot.comA COMPARISON STUDY ON THE TOP THREE TWO WHEELER COMPANIES IN INDIA DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION BY UNDER THE GUIDANCE OF PROF. FACULTY GUIDE- CUIM CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT BANGALORE-560029Projectsformba.blogspot.com pg. 1 Projectsformba.blogspot.com DECLARATION This is to certify that this research project titled A COMPARISON STUDY ON THE TOP THREE TWO WHEELER COMPANIES IN INDIAis an original work carried out in the 5th and 6th trimester of my MBA(2008-2010) underthe guidance of ... This project is made exclusively as a part of mycurriculum and will not be submitted in future to any other university or institution.Date :Projectsformba.blogspot.com pg. 2 Projectsformba.blogspot.com CERTIFICATE This is to certify that ., student of Christ University of Management, Bangalore, has completed this research project titled A COMPARISON STUDY ONTHE TOP THREE TWO WHEELER COMPANIES IN INDIA under my guidance from in partial fulfillment of the Masters of Business Administration degree. .. PROFESSOR ,MARKETING DEPT. CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT BANGALOREProjectsformba.blogspot.com pg. 3 Projectsformba.blogspot.com ACKNOWLEDGEMENTIt is with immense satisfaction and pride that, I am completing my Dissertation Project report. I therefore, would like to stop for a few moments and thank Christ University Institute of Management, Bangalore and .. for allowing me to take up my DissertationProject on comparison study of two wheeler companies in India . I am also very thankful for his extensive support, timely guidance and regular monitoring our progress and providing valuable inputs from time to time. Sincere thanks to all the respondents, for parting their valuable time and being so patient insharing the relevant information. I also express my overriding
debts and thanks to my friends, without whose help it would have been impossible to complete my project. Last but not the least; I would like to thank all those concerned people who have directly or indirectly contributed in the completion of this entire dissertation report.Projectsformba.blogspot.com pg. 4
Projectsformba.blogspot.comContentsDECLARATION..................... ............................................................................................................... ....2CERTIFICATE............................................................................... ............................................................3ACKNOWLEDGEMENT...... ............................................................................................................... .......4 1.1 Introduction to Indian Two-wheeler Sector:............................................................................10 1.2 Evolution of Two-wheeler Industry in India:..............................................................................11 1.3 Profile Change in Indian Two-Wheeler Industry........................................................................14 1.4 Key Earnings Drivers................................................................................................... ...............152.1 COMPANY PROFILE ............................................................................................................... ........17 2.2 Hero Honda Motors Limited.................................................................................................. ....18 2.3 Corporate Profile:................................................................................................... ....................18 2.4 Mission statement:.............................................................................................. ......................20 2.5 HERO HONDAS MANDATE:......................................................................................... ..............20 2.6 S.W.O.T ANALYSIS:.......................................................................................... .........................21 STRENGTHS:...................................................................................... ...............................................21 WEEKNESS:........................................................................................ ...............................................21 2.7 HERO HONDAS CORE VALUES............................................................................................... ..22 2.8 Product range of HERO HONDA................................................................................................ 23 2.9 BAJAJ auto ltd.......................................................................................................... .................27 2.11 BAJAJ AUTOS MISSION:............................................................................................. .............29Projectsformba.blogspot.com pg. 5 Projectsformba.blogspot.com 2.12 SWOT Analysis.................................................................................................
........................29 2.13 The Inevitable Change.................................................................................................. ...........31 2.14 Product range of Bajaj...................................................................................................... .......32 2.15 Current Situation................................................................................................ .....................35 Current Performance.......................................................................................... .........................35 2.16 The Industry Analysis - Five Forces Analysis-BAL...................................................................36 External Environment.......................................................................................... ........................36 2.17 Product & Advertising Strategies OF BAL................................................................................37 2.18 Strategies & Implementation..................................................................................... .............38 FMCG Business Model.................................................................................................... ..............38 2.19 Other Strategic Issues..................................................................................................... .........39 2.20 Strategies for the Overseas Markets.......................................................................................40 2.21 R&D...................................................................................................... ...................................41 2.22 The Future.................................................................................................... ...........................42 2.23 New Strategies adopted by Bajaj.............................................................................................43 2.24 HONDA MOTORCYCLE & SCOOTER INDIA (Pvt.) Ltd.(HMSI)....................................................44 2.25 About Honda Motorcycle & Scooter India Pvt. Ltd..................................................................44 2.26 CORPORATE PROFILE.............................................................................................. .................45 2.27 Mission Statement............................................................................................... ...................46 2.28 SWOT Analysis................................................................................................. ........................46 2.29 PRODUCT RANGE:................................................................................................ ...................47 2.30 Market growth and market size (HMSI)..................................................................................50 2.31 Strategy of rivals Vs HMSI.................................................................................................... ...51 2.32 Strategy of HMSI.................................................................................................... .................53 2.34 Strategy adopted by TVS & Bajaj for increasing sales and countering growth of HMSI...........53 2.35 Review of
strategies adopted by Honda..................................................................................543.1 RESEARCH DESIGN................................................................................................ ........................58Projectsformba.blogspot.com pg. 6
Projectsformba.blogspot.com 3.2 STATEMENT OF PROBLEM............................................................................................ .............58 3.3 HYPOTHESIS...................................................................................... ........................................59 3.4 AIMS AND OBJECTIVES....................................................................................... .......................60 3.5 SAMPLING TECHNIQUE........................................................................................ .....................60 3.6 SAMPLE UNIT..................................................................................................... .......................60 3.7 SAMPLE SIZE...................................................................................................... ........................60 3.8 STATISTICAL DESIGN................................................................................................ ..................61 3.9 PRIMARY DATA................................................................................................... .......................61 3.10 SECONDARY DATA................................................................................................... ................62 3.11 LIMITATIONS OF STUDY................................................................................................. ..........624.1 RESPONDENTS PROFILE.............................................................................................. ..................64 4.2 SEX....................................................................................................... ......................................64 4.3 MARITAL STATUS............................................................................................... ........................65 4.4 OCCUPATION..................................................................................... ........................................66 4.5 AGE...................................................................................................... ......................................67 4.6 INCOME............................................................................................... ......................................695.1 DATA ANALYSIS........................................................................................... .................................71 5.2 OWNERSHIP OF TWO WHEELER........................................................................................... ...71 5.3 MOST VIEWED ADS...................................................................................................... .............72 5.4 MOST INFLUENTIAL ADS .........................................................................................................73 5.5 BEST RECALLED
ADS...................................................................................................... ...........74 5.6 MOST COMMON SOURCE OF ADS.............................................................................................75 5.7 SOURCE OF RELIABLE INFORMATION FOR PURCHASE DECISIONS............................................76 5.8 FACTORS WHICH MOTIVATE PURCHASING DECISION...............................................................78 5.9 PREFERRED PRICE RANGE(in 000s)...........................................................................................79 5.10 RATING FOR VARIOUS FACTORS(1 LEAST PREFERRED AND 7 MOST PREFERRED)...................81 5.11 IS CROSSCHECKING DONE?.................................................................................................. ...83Projectsformba.blogspot.com pg. 7
Projectsformba.blogspot.com 6.1 DEMAND AND GROWTH DRIVERS............................................................................................ 85 Personal Income................................................................................................... ........................86 Demography and Inspiration............................................................................................. ...........86 Penetration Level..................................................................................................... ....................86 Other Factors................................................................................................... ............................86 7.1 FINDINGS............................................................................................ ......................................87 8.1 HYPOTHESIS TESTING.............................................................................................. ..................89 9.1 RECOMMENDATIONS...................................................................... ..........................................91 Scaling Up Service Centers.................................................................................................. .........92 Focus on Easy Credit Lending................................................................................................. ......92 Investment in Research and Development..................................................................................92 Focus on Exports and Global Market...........................................................................................92 10.1 LEARNINGS........................................................................................ ......................................93 11.1 BIBLIOGRAPHY................................................................................. ........................................95 12.1 QUESTIONNAIRE.............................................................................. ........................................98Projectsformba.blogspot.com pg. 8
Projectsformba.blogspot.comProjectsformba.blogspot.com pg. 9 Projectsformba.blogspot.com1.1 Introduction to Indian Two-wheeler Sector:The Indian automotive industry consists of five segments: commercial vehicles; multi-utilityvehicles & passenger cars; twowheelers; three-wheelers; and tractors. With 7,822,963 unitssold in the domestic market and 753,591 units exported during the first nine months ofFY2007, the industry (excluding tractors) marked a growth of 43% over the correspondingProjectsformba.blogspot.com pg. 10 Projectsformba.blogspot.comprevious. The two-wheeler sales have witnessed a spectacular growth trend since the midnineties.India is the second largest producer and manufacturer of two-wheelers in the world. Indiantwo-wheeler industry has got spectacular growth in the last few years. Indian two-wheelerindustry had a small beginning in the early 50s. The Automobile Products of India (API)started manufacturing scooters in the country.Bikes are a major segment of Indian two wheeler industry, the other two being scooters andmopeds. Indian companies are among the largest two-wheeler manufacturers in the world.Hero Honda and Bajaj Auto are two of the Indian companies that top the list of worldcompanies manufacturing two-wheelers.The two-wheeler market was opened to foreign companies in the mid 1980s. The openness ofIndian market to foreign companies lead to the arrival of new models of twowheelers intoIndia. Easy availability of loans from the banks, relatively low rate of interest and thediscount of prices offered by the dealers and manufacturers lead to the increasing demand fortwowheeler vehicles in India. This lead to the strong growth of Indian automobile industry.1.2 Evolution of Two-wheeler Industry in India: Two-wheeler segment is one of the most important components of the automobilesector that has undergone significant changes due to shift in policy environment. The two-wheeler industry has been in existence in the country since 1955. It consists of three segmentsProjectsformba.blogspot.com pg. 11 Projectsformba.blogspot.comviz. scooters, motorcycles and mopeds. In India there are some MNCs and Indian companydealing in automobile sector. The main key players who are dealing in this sector are HeroHonda, Bajaj, Yamaha, Honda, and TVS. Hero Honda is the biggest player in this sector inIndia as well as in the world and playing a very important role in two wheeler automobilesector. Hero Honda, Bajaj and TVS are the Indian companies and Yamaha & Honda areinternational automobile brand. Bajaj is the first Indian two wheeler automobile company in the market since1945 with the name M/s Bacharj trading corporation private limited. In 1959 M/s Bacharjtrading corporation private limited change its name as Bajaj Auto Ltd. Bajaj Auto obtainslicense
from the Government of India to manufacture two- and threewheelers vehicles in1959. Hero Honda Motors Limited was established in 1984, as a joint venturebetween Indias Hero Group (worlds largest bicycle manufacturers) and Japans Honda MotorCompany. And created the worlds single largest two wheeler company and also one of themost successful joint ventures worldwide. During the 80s, Hero Honda became the firstcompany in India. Over 19 million Hero Honda two wheelers running on Indian roads today. TVS Motors is the third largest company in the twowheeler industry with amarket share of 16%. Infect, it is the only Indian company without a foreign collaboration inthe two-wheeler industry. When the company opted out of the collaboration with Suzuki in2002, many believed that TVS was headed towards extinction. But the company proved thedoomsayers wrong and came out with a very successful `TVS Victor. TVS Motors Ltd.originally incorporated in 1982 to manufacture two-wheelers in collaboration with SuzukiMotors of Japan, TVS was one of the leaders in twowheeler industry.Projectsformba.blogspot.com pg. 12
Projectsformba.blogspot.com Yamaha Motor Corporation is the auto mobile company of Japan(1953) which works in India since 1955 and providing latest technology in India from lasttwo decades. Yamaha Motor India was incorporated in august 2001 as a 100% subsidiary ofYamaha motor corporation, Japan Honda motors of Japan is not a new name in the two wheeler scenario in thecountry, they were in a tie up with the Firodias owned Kinetic group. However in the late 90sthey parted ways after problems arose over issues like introduction of new models,advertising expenditure, marketing strategies and other related issues. In the mid 80 Hondamotors of Japan joined hands with the largest bicycle maker of India the Hero cycles to createHero Honda which in a couple of decades or so have gone on to become the single largestmotorcycle company in the world. Though Honda has come on its own on the Indian marketyet it will be providing technological support to Hero Honda for the next ten years. Thuspresenting a unique situation in which the company will be in direct competition with thecompany which it has been associated for nearly two decades. Honda Motorcycles andScooters India limited, a 100% subsidiary of Honda motor company Japan eventually enteredthe Indian market with Honda Unicorn in 2004.Projectsformba.blogspot.com pg. 13 Projectsformba.blogspot.com1.3 Profile Change in Indian TwoWheeler IndustryThe demand shift from scooters to motorcycles in the 1990s was without parallel in anycomparable product category in India. This was mainly attributed to the change in customerspreference towards fuel-efficient and aesthetically appealing models, which scootermanufacturers failed to provide. The
delayed launch of new, advanced scooter models, fear offour-stroke scooters being prone to increased skidding risks and vibrations, and the difficultyof maintenance also contributed to this shift.Interestingly, the growth in the motorcycle segment was mainly driven by the demand fromrural and semi-urban consumers. An estimated 60% of the demand for motorcycles camefrom rural and semi-urban customers. The rise in their disposable incomes on account ofgood monsoons in the 1990s provided the normally conservative rural and semi-urbancustomers with extra money that induced them to experiment with new, innovative products.Projectsformba.blogspot.com pg. 14
Projectsformba.blogspot.comShift from Scooter to Motorcycle Scooter Motorcycle Moped Year Total In 000 Overall Growth No. % No. % No. % 1993 1,503.36 -6.40 709.73 47.2 379.06 25.2 414.57 27.6 1994 1,770.22 17.75 840.17 47.5 472.58 26.7 457.47 25.8 1995 2,209.23 24.80 1,033.52 46.8 652.01 29.5 523.70 23.7 1996 2,660.04 20.41 1,223.43 46.0 809.53 30.4 627.08 23.6 1997 2,963.49 11.41 1,301.05 43.9 978.68 33.0 683.76 23.1 1998 3,042.85 2.68 1,262.70 41.5 1,131.31 37.2 648.84 21.3 1999 3,403.43 11.85 1,325.87 39.0 1,395.66 41.0 681.90 20.0 2000 3,745.55 -0.80 901.88 24.0 2,156.03 58.0 687.64 18.0Source: (SIAM). No. Number of Units (in 000)Advanced technology, larger wheelbase, higher ground clearance and the ability to ride onbad roads with less effort and less danger of skidding and decreased maintenance cost werethe other factors that encouraged customers to choose motorbikes over other two-wheelers.1.4 Key Earnings DriversBelow are the key factors, which strongly affect the auto industry: -Government policy impact on petrol prices: Petrol prices determine the running cost oftwo/three wheelers expressed in Rupees per kilometer.Petrol prices are the highest in India as GOI subsidizes kerosene and diesel. But with therecent change in GOI policy to reduce the subsidy, the prices of petrol will remain constant atthe current prices. This will have a positive effect on purchases of two/three wheelers.Improvement in disposable income: With the increase in salary levels, due to entry ofmultinationals following liberalization process and fifth pay commission, the disposableincome has improved exponentially over the years. This will have multiplier effect ondemand for consumer durables including two-wheelers.Changes in prices of second-hand cars: The second hand car prices of small cars havecome down sharply in the recent past. This will shift the demand from higherend two-wheelers to cars and affect the demand for two-wheelers negatively. A further drop inProjectsformba.blogspot.com pg. 15 Projectsformba.blogspot.comsecond-hand car prices will lead to pressure on the two-wheeler majors who plan to releasehigher-end scooters and motorcycles.Implementation of mass transport system:
Many states have planned to implement masstransport systems in state capitals in the future. This will have negative impact on demand fortwo-wheelers in the long run. But taking into account the delays involved in implementationof such large infrastructure projects the demand to be affected only five to seven years downthe line.Availability of credit for vehicle purchase: The availability and cost of finance affects thedemand for two- and three-wheelers as the trend for increased credit purchases for consumerdurables have increased over the years. Therefore, any change with respect to any of thesetwo parameters as a result of change in RBI policy has to be closely watched to assess thedemand for two- and threewheelers.Projectsformba.blogspot.com pg. 16
Projectsformba.blogspot.com 2.1 PROFILEProjectsformba.blogspot.com pg. 17
COMPANY
Projectsformba.blogspot.com2.2 Hero Honda Motors Limited Hero Honda Motors Limited was established in 1984, as a joint venture betweenIndias Hero Group (worlds largest bicycle manufacturers) and Japans Honda MotorCompany. In 1985 production began with the launch of its first motorcycle, the CD100,which gave 80 km to the liter. In 1987 the engine plant was started and in 1989 the Companyproduced its 3,00,000th motorcycle. In 2001 Hero Honda manufactured its 50,00,000thmotorbike. Hero Honda has a reputation of being the most fuel-efficient and the worldssingle largest two wheeler Company. Shri Brijmohan Lall Munjal is the chairman andmanaging director of this Company. As early as in 1960s very few Indian bicycle manufacturers were interested inexports. However, the hero groups foray into the overseas markets in 1963 pioneered Indianexports in the bicycle segment. It was more prompted essentially by the need to remainattuned to the global marketplace. While initial exports were restricted to Africa and themiddle east, today more than 50% of the exports from Hero Cycles Ltd. Meet the demands ofsophisticated markets in Europe and America. This is primarily because of appropriateproduct development and excellent quality that hero offers.. Hero Honda has grown like no other company in the auto business. Severaltimes in the path, savvy observers have insisted that it has grown just too big and that nocompany its size can continue to show growth rates. But Hero Honda has ignored that opinionand continued growing at the place it has set many years ago. Hero Honda today faces more competitor than it has ever in the history. Nowthat is the undisputed two wheeler Numero Uno in the country. Every single two wheelermanufacturer in India if looking market share away from it. More over for the first time thereare so many four- stroke challengers in the market. And Hero Hondas best selling productsare ageing.2.3 Corporate Profile:Projectsformba.blogspot.com pg. 18
Projectsformba.blogspot.com The joint venture between Indias Hero Group and Honda Motor Company, Japan hasnot only created the worlds single largest two wheeler company but also one of the mostsuccessful joint ventures worldwide. During the 80s, Hero Honda became the first company in India to prove that it waspossible to drive a vehicle without polluting the roads. The company introduced newgeneration motorcycles that set industry benchmarks for fuel thrift and low emission. Alegendary Fill it - Shut it - Forget it campaign captured the imagination of commuters acrossIndia, and Hero Honda sold millions of bikes purely on the commitment of increased mileage Over 19 million Hero Honda two wheelers tread Indian roads today. These are almostas many as the number of people in Finland, Ireland and Sweden put together! Hero Honda has consistently grown at double digits since inception; and today, everysecond motorcycle sold in the country is a Hero Honda. Every 30 seconds, someone in Indiabuys Hero Hondas top -selling motorcycle Splendor. This festive season, the company soldhalf a million two wheelers in a single montha feat unparalleled in global automotivehistory. Hero Honda bikes currently roll out from two globally benchmarked manufacturingfacilities based at Dharuhera and Gurgaon in Haryana. These plants together are capable ofchurning out 3.9 million bikes per year. A third state of the art manufacturing facility atHardwar in Uttranchal will soon be commissioned to cope with sustained customer demand. Hero Hondas extensive sales and service network now spans over 3000 customertouch points. These comprise a mix of dealerships, service and spare points, spare partsstockiest and authorized representatives of dealers located across different geographies.Hero Honda values its relationship with customers. Its unique CRM initiative - Hero HondaPassport Program, one of the largest programs of this kind in the world, has over 3 millionmembers on its roster. The program has not only helped Hero Honda understand itsProjectsformba.blogspot.com pg. 19 Projectsformba.blogspot.comcustomers and deliver value at different price points, but has also created a loyal communityof brand ambassadors. Having reached an unassailable pole position in the Indian two wheeler market, HeroHonda is constantly working towards consolidating its position in the market place. Thecompany believes that changing demographic profile of India, increasing urbanization and theempowerment of rural India will add millions of new families to the economic mainstream.This would provide the growth ballast that would sustain Hero Honda in the years to come.As Brijmohan Lall Munjal, the Chairman, Hero Honda Motors succinctly points out, "Wepioneered Indias motorcycle industry, and its our responsibility now to take the industry tothe next level. Well do all it takes to reach there.2.4 Mission statement: Hero
Hondas mission is to strive for synergy between technology, systems and humanresources, to produce products and services that meet the quality, performance and priceaspirations of its customers. At the same time maintain the highest standards of ethics andsocial responsibilities. This mission is what drives Hero Honda to new heights in excellence and helps theorganization forge a unique and mutually beneficial relationship with all its stake holders.2.5 HERO HONDAS MANDATE:Projectsformba.blogspot.com pg. 20
Spare parts are too costly.OPPOURTUNITIES:Projectsformba.blogspot.com pg. 21 Its market share is reducing from last few years. They have big gap between cubic capacities of its products. Not fit for ruler India. Suppose to be very sophisticated. The company has clarified about its intention of setting a third plant in addition to its existing two plants. The company has embarked upon a green field expansion plan and has earmarked Rs 2 bn for the same. It should be noted that the company has a strong cash flow position; it generated Rs 9 bn from operation in FY04 and is virtually a debt free company.WEEKNESS: Debt equity ratio is only 0.1. Best customer preference. It gives better service for customers. It has a good brand image. It has the highest share in automobile sector. Better sale service. Huge sale network (3500 Dealers). Hero Honda gives 80 Km/Liter Avg. Hero Honda introduced First stroke bike in the Indian market. Projectsformba.blogspot.com Hero Honda is a world leader because of its excellent manpower, provenmanagement, extensive dealer network, efficient supply chain and world-class products withcutting edge technology from Honda Motor Company, Japan. The teamwork andcommitment are manifested in the highest level of customer satisfaction, and this goes a longway towards reinforcing its leadership status2.6 S.W.O.T ANALYSIS:STRENGTHS: Decreasing market share.2.7 HERO HONDAS CORE VALUESProjectsformba.blogspot.com pg. 22 The cost of the product is very high in comparison to other companies. Main threats to Hero Honda are their competitors like:- o Bajaj Auto Ltd. o TVS motors Ltd. o Yamaha Motors India. o Honda motorcycle and scooter India. As government polices are amended against pollution in metro cities, Hero Honda being 4 stroke bike manufacture have great opportunities to explore its new innovations and technologies.THREATS: They have big opportunities in heavy bike segments. There is large no. of young consumers in the market. Company has to focus on them. They should go in new segments of bikes. Hero Hondas the first manufacture to launch eco friendly bikes with 4-stroke engines. They have attained a
stronger good will and popularity in the industry and the consumers. Projectsformba.blogspot.com
Prompts transparency Enables relationship buildings. Is a caring organization? Providing learning environment. Is self-reliant. Provide fearless, enjoyable working environment. Is striving for excellence. Is a boundary less organization? Is a responsive organization? Respect for Human Beings. Projectsformba.blogspot.com & Is performance oriented?2.8 Product range of HERO HONDAScootersProjectsformba.blogspot.com pg. 23 Is creativity promoting. trust. Projectsformba.blogspot.com HeroHonda Pleasure Hero Honda Pleasure Manufacturer Hero Honda motorcycle Ltd. Production 2005 -present Price Rs. 37990 Engine 102 cc, 7bhp@ 7000 rpm, torque 0.78 kg- m @5000 rpm Motorcycles CD Dawn CD Deluxe Splendour + Splendour NXG Passion pro Passion plus Super Splendour Glamour Glamour PGM F1Projectsformba.blogspot.com pg. 24 Projectsformba.blogspot.com Achiever CD Dawn CBZ XTREME HUNK Karizma Karizma ZMR Features of a few bikes from above mentioned list from HERO HONDA are as follows.. CD Dawn Manufacturer Hero Honda motorcycle Ltd. Production 2003present Price Rs. 37990 Engine 97.2 cc, 7.7 ps@ 7500 rpm, torque0.77 kg -m @6000 rpm CD Deluxe CD Deluxe Manufacturer Hero Honda motorcycle Ltd. Production 2007-present Price Rs. 40,000 Engine 97.2 cc, 7.7 ps@ 7500 rpm, torque0.77 kg -m @6000 rpmProjectsformba.blogspot.com pg. 25 Projectsformba.blogspot.com Splendor + Splendor + Manufacturer Hero Honda motorcycle Ltd. Production 2003-present Price Rs. 40,400 Engine 97.2 cc, 7.7 ps@ 8000 rpm, torque7.95 N-m @5000 rpm Hunk Karizma ZMR Hunk Manufacturer Hero Honda motorcycle Ltd. Production 2007-present Price Rs. 63,000 Engine 150 cc, 14.4 ps@ 8500 rpm, Manufacturer torque12.8 N-m @6500 rpm Hero Honda motorcycle Ltd. Production 2009-present Price Rs. 91,000Projectsformba.blogspot.com Engine 223 cc, 17.6bhp@ 7000 rpm, pg. 26 torque18.35 N-m @6000 rpm Projectsformba.blogspot.com Karizma ZMR2.9 BAJAJ auto ltd Since 1986, there is a technical tie-up of Bajaj Auto Ltd. with Kawasaki HeavyIndustries of Japan to manufacture state-of-art range of latest two-wheelers in India. The JVhas already given the Indian market the KB series, 4S and 4S Champion, Boxer, the Caliberseries, and Wind125 Kawasaki Heavy Industries is a Fortune
500 company with a turnover of USD 10billion (Rs. 45,840 crore). It has crafted new technologies for more than hundred years. Thetechnologies of KHI have redefined space systems, aircrafts, jet engines, ships, locomotive,energy plants, automation system, construction machinery, and of course high reliability twowheelersProjectsformba.blogspot.com pg. 27
Projectsformba.blogspot.com KHI has given the world its legendary series of 600-1200cc Ninja and 1600 Vulcanbikes. Straight from its design boards, the Kawasaki Bajaj Eliminator, Indias first real cruiserbike, redefines the pleasure of "biking" in looks as well as performance.2.10 Corporate Profile Inspiring Confidence, the tagline, has build up confidence, through excitementengineering, not only to domestic consumers but also internationally. Established just eightdecades back in 1926 by Jamnalal Bajaj, the company has been vested with Indias largestexporter of two and three wheelers, 196,710 units in 2004-05, a great 26 per cent jump overthe previous year. Bajaj Auto Ltd. sales have increased by approximately 21 per cent in the year2004-05, which exceeds Rs 65.4 billion, a record in the history of the company. The grossoperating profit stands at Rs. 9.3 billion, again a record. The profits after tax of the BAL areclose to Rs. 7.7 billion, and the pre-tax return on operating capital is at an impressive 80 percent. The strength of the company is its quality products, excellence in engineering anddesign, and its ability to delight the customers. The Pulsar, introduced in November 2004, iscontinually dominating the premium segment of the motorcycle market, helping to maintainthe market superiority. Discover DTSi, one more successful bike on Indian roads, is in thevalue segment of the motorcycle market. It incorporates a high degree of power with fuelefficiency of a 100 cc motorcycle. BAL is committed to prevention of pollution, continual improvement of environmentperformance and compliance with all environmental legislation and regulations. They alwaysProjectsformba.blogspot.com pg. 28 Projectsformba.blogspot.combelieve in providing the customer value for money and keep an special eye upon quality,safety, productivity, cost and delivery. Extensive R Product design and development capabilities. Highly experienced management. 2.11 BAJAJ AUTOS MISSION: We at Bajaj Auto continue to firmly believe in providing the customer Value formoney, for years through our products and services. This we shall maintain and improve, In our decision making, quality, safety and service will be given as muchconsideration as productivity, cost and delivery. Quality shall be built into every aspect of our work life and business operations.Quality improvements and customer satisfaction shall be the responsibility of everyemployee.2.12 SWOT AnalysisLets
analyze the position of Bajaj in the current market set-up, evaluating its strengths,weaknesses, threats and opportunities available.Strengths & High performance products across all categories.Projectsformba.blogspot.com pg. 29 Widespread distribution network. D focus.
The competition catches-up any new innovation in no time.Projectsformba.blogspot.com pg. 30 Growing world demand for entry-level motorcycles especially in emerging marketsThreats The growing gearless trendy scooters and scooterette market. More maturity and movement towards higher-end motorcycles. Untapped market above 180 cc in motorcycles. Double-digit growth in two-wheeler market. Not a globally recognizable brand (unlike the JV partner Kawasaki)Opportunities Not a global player in spite of huge volumes. Still has no established brand to match Hero Hondas Splendor in commuter segment. Hasnt employed the excess cash for long. High economies of scope.Weaknesses High economies of scale. Great financial support network (For financing the automobile) High export to domestic sales ratio. Projectsformba.blogspot.com Margins getting squeezed from both the directions (Price as well as Cost)2.13 The Inevitable ChangeBajaj on internal analysis found that it lacked 1. The technical expertise to deliver competitive goods.2. The design know-how.3. And the immediate inability to support the onslaught of competitors. All these forced Bajaj to look for an international partner who could bring intechnology and also offer some basic platforms to be manufactured and marketed in India.Kawasaki of Japan is a world-renowned manufacturer of high performance bikes. Bajajentered into a strategic tie-up with Kawasaki in late 1990s to enhance its product line andknowledge up-gradation to support long-term strategies. This served the purpose of sustaining the market competition for a while. From 1996to 2000, Bajaj invested hugely in infrastructure while simultaneously developing productdesign and innovation capabilities, which is the prime reason behind the energetic Bajaj of21st century. Bajaj introduced a slew of products right from entry-level motorcycle to thehigh premium segment right from 2001 onwards, and since then its raining success all theway for Bajaj.Projectsformba.blogspot.com pg. 31 Threat of cheap imported motorcycles from China. Projectsformba.blogspot.com Projectsformba.blogspot.com Last quarter, Bajaj had impressive performance growing at a rate of 20%+ when thelargest manufacturer grew at just 6%. This stands a testimony to the various importantstrategic decisions over the past decade.2.14 Product range
of BajajMotorcycles: PULSAR 135 LS PULSAR 150 DTS-i PULSAR 180 DTS-i PULSAR 220 DTS-i DISCOVER 135 DTSiProjectsformba.blogspot.com pg. 32
Projectsformba.blogspot.com DISCOVER DTS-i PLATINA 125 PLATINA 100 AVENGER 200 DTS-i KAWAZAKI NINJA 250RFeatures of a few bikes from above mentioned list from BAJAJ are as follows.. Bajaj Pulsar 220 DTS-i PULSAR 220 DTS-i Bajaj Discover DTS-i Manufacturer Bajaj Auto Production 2008-present Price Rs. 78,200 Engine 220 cc ,21.04 @ 8500 (Ps @ RPM) 19.12 @ 7000 (Nm @ RPM) Manufacturer Bajaj Auto Production 2005present Price Rs.47000-49200Projectsformba.blogspot.com pg. 33 Engine 135 CC ,9.64kw (13.10 ps) @ 8500rpm,11.88 nm @ 6500 rpm / 1.21 kgm Projectsformba.blogspot.comDISCOVER135 DTS-i Bajaj Platina PLATINA 125 cc Bajaj Avenger DTS-i Manufacturer Bajaj Auto Production 2006-present Price Rs. 38621 Engine 125CC,8.5PS @7000rpm,10NM@4000rpm. Manufactur Bajaj Auto er Production 2005-present Price Rs. 64,524AVENGER 200 DTS-i Engine 200cc, 17.51 PS @ 8000 rpm 16.78 Nm @ 6000 rpmProjectsformba.blogspot.com pg. 34 Projectsformba.blogspot.com2.15 Current SituationCurrent Performance.C BAL is currently outperforming the industry growth rate in two-wheeler segment with32% growth in year 2004-05 v/s industry growth of 19%.3 Market share in Motorcycles is improving with every passing year. It has also increasedfrom 28% in 2004-05 to 31% in 2005-06.f Annual turnover for the year 2005-06 is Rs. 81.06 billion v/s Rs. 63.23 billion a yearbefore - an increase of 28% which is very healthy.b BAL has significant presence in all the three basic segments - Price Segment, ValueSegment and Performance Segment - and has been showing increased sales in all thesegments over years.Besides this, BAL is a market leader in two-wheeler exports and it consists a great chunk ofthere overall revenues. Currently, BAL is selling over 1 lac motorcycles annually in SriLanka, further, they are commanding 50% market share in Central America.Projectsformba.blogspot.com pg. 35 Projectsformba.blogspot.com2.16 The Industry Analysis - Five Forces Analysis-BALExternal EnvironmentIndustry: Automobiles: Two WheelersSegments: Presence in all segmentsEntry Barriers:Entry barriers are high.E The market runs on high economies of scale and on high economies of scope.E The need for technical expertise is high.E Owning a strong distribution network is important and is very costly.All these make the barrier high enough to be a deterrent for new entrants.Supplier Bargaining
Power:Suppliers of auto components are fragmented and are extremely critical for this industry sincemost of the component work is outsourced. Proper supply chain management is a costly yetcritical need.Buyers Bargaining Power:Buyers in automobile market have more choice to choose from and the increasingcompetition is driving the bargaining power of customers uphill. With more models to choosefrom in almost all categories, the market forces have empowered the buyers to a large extent.Industry Rivalry:The industry rivalry is extremely high with any product being matched in a few months bycompetitor. This instinct of the industry is primarily driven by the technical capabilitiesacquired over years of gestation under the technical collaboration with international players.Substitutes:There is no perfect substitute to this industry. Also, if there is any substitute to a two-wheeler,Bajaj has presence in it. Cars, which again are a mode of transport, do never directly competeProjectsformba.blogspot.com pg. 36
Projectsformba.blogspot.comor come in consideration while selecting a two-wheeler, cycles do never even compete withthe low entry level moped for even this choice comes at a comparatively higher economicpotential.Summarizing the industry analysis, it can be said that the two-wheeler market is attractive asit scores well on three out of five categories2.17 Product & Advertising Strategies OF BALThe focus of BAL off late has been on providing the best of the class models at competitiveprices. Most of the Bajaj models come loaded with the latest features within the price bandacceptable by the market. BAL has been the pioneer in stretching competition into providinglatest features in the price segment by updating the low price bikes with the latest featureslike disk-brakes, anti-skid technology and dual suspension, etc.BAL adopted different marketing strategies for different models, few of them are discussedbelow: -Kawasaki 4S - First attempt by bajaj to make a mark in the motorcycle segment. The targetcustomer was the father in the family but the target audience of the commercial was the sonin the family. The time at which Kawasaki 4S was launched Hero Honda was the marketleader in fuel-efficient bikes and Yamaha in the performance bikes.The commercial of Kawasaki 4S had the punch line "Kyun Hero" means "now what hero"which reflected the aggressiveness in the marketing front by the company.Boxer - It took the reins from where the Kawasaki 4S left. Target was the rural populationand the price sensitive customer. Boxer marketed as a value for money bike with greatProjectsformba.blogspot.com pg. 37 Projectsformba.blogspot.commileage. Larger wheelbase, high ground clearance and high mileage were the selling factorsand it was in direct competition to Hero Honda Dawn and Suzuki MX100.Caliber - The focus for the Caliber 115 was youth. And
though Bajaj made the bike lookbigger and feel more powerful than its predecessor (characteristics that will attract theaverage, 25-plus, executive segment bike buyer), its approach towards advertising is evenmore radically different this time around. Bajaj gave the mandate for the ad campaign toLowe, picking them from the clique of three agencies that do promos for the company (theother two being Leo Burnett and O&M). Going by the initial market response, the campaignwas clearly a hit in the 5-10 years age bracket. So, the teaser campaign and the emphasis onthe Caliber 115 being a `Hoodibabaa bike placed it as a trendy motorcycle for the collegegoers and the 25 plus executives both at the same time.Pulsar Pulsar was launched in direct competition to the Hero Hondas CBZ model in 150cc plus segment. The campaign beared innovative punch line of "Definitely Male" positioningPulsar to be a masculinelooking model with an appeal to the performance sensitivecustomers. The Pulsar went one step ahead of Hero Hondas CBZ and launched a twinvariant of Pulsar with the 180 cc model. The model was a great success and has alreadycrossed 1 million mark in sales.Discover The same DTSI technology of Pulsar extended to 125 cc Discover was a greatsuccess. With this, Bajaj could realize its success riding on the back of technologicalinnovation rather than the joint venture way followed by competitors to gain market share.2.18 Strategies & ImplementationFMCG Business ModelBAL now is taking a leaf out of the FMCG business model to take the company to greaterheights.Bajaj has kicked off a project to completely restructure the companys retail network andcreate multiple sales channels.Projectsformba.blogspot.com pg. 38
Projectsformba.blogspot.comOver the next few months, the company will set-up separate sales channels for every segmentof its business and consumers. Bajaj Autos entire product portfolio, from the entry-level tothe premium, is being sold by the same dealers. The restructuring will involve separate dealernetworks catering to the urban and rural markets as well as its three-wheeler and premiumbikes segments.Bajaj Auto also plans to set-up an independent network of dealers for the rural areas. Theneeds of financing, selling, distribution and even after-sales service are completely differentin the rural areas and do not makes sense for city dealers to control this. The company alsoplans to set-up exclusive dealerships for its three-wheeler products instead of having themsold through an estimated 300 of its existing dealers.2.19 Other Strategic IssuesCash is strength: Bajaj Auto has been sitting on a cash pile for over five years now. Over thenext couple of years, competition in the two-wheeler market is set to intensify. TVS Motorsand Hero Honda are on a product expansion binge. To fight this battle and retain its hard-earned market share in the motorcycle segment, Bajaj Auto will need its cash muscle. A lookat its own story over the past five years
provides valuable insight.Delisting worry: What is worrying is that there is an idea to delist the investment company(also an indirect indication that it would be listed initially). This would be closing the valve ofequitable ownership distribution.There is a hint of a buyback of shares of the investment company as this is the only way it canbe delisted. The company would not be short of cash to put through such a buyback.Factors such as low valuation, low trading interest and the need to provide shareholders maybe cited as plausible reasons for the buyback.Stake for Kawasaki: Bajaj Autos attempt to vest the surplus cash in a separate companymay be a prelude to offering a stake to Kawasaki of Japan in the equity of the automobilecompany. The latter has been playing an increasingly active role in Bajajs recent models, andits brand name is also more visible in Bajaj bikes than in the past.Projectsformba.blogspot.com pg. 39
Projectsformba.blogspot.comBetter value proposition: Shareholder interests may be better served if the cash is retained topursue growth in a tough market. This would also obviate the need to fork-out fancy sums asstamp duty to the government for the de-merger. A combination of a large one-time dividendand a regular buyback program through the tender route may offer better value. A strategicstake for Kawasaki would only positively influence the stocks valuation.2.20 Strategies for the Overseas MarketsBajaj Auto looks at external markets primarily with three strategies: -1) A market where all BAL need to do is distribute through CKD or CBU routes.2) Markets where BAL need to create new products.3) Markets where BAL need to enter with existing products and probably with a gooddistributor or a production facility or a joint venture.Earlier, most of the products that Bajaj exported were scooters and some motorcycles.However, in its target markets, like in India, the shift was towards motorcycles. With theexpansion in Bajajs own range to almost five-six platforms of motorcycles, it had a betteroffering to export, also the reason for its stronger showing. For the last fiscal, 60 per cent ofits exports were two-wheelers and the rest three-wheelers. Of the two-wheeler exports, closeto 90 per cent were motorcycles.Bajaj has identified certain key markets, which hold potential. Its first overseas officeestablished at the Jebel Ali free trade zone has been the focal point for exports to middleAfrica and the Saharan nations. Egypt and Iran also continue to be strong markets for Bajaj.The other market, which would be a focus area, is South America, where the company feels itis fairly well represented in most countries, except in Brazil, the largest market. The companyProjectsformba.blogspot.com pg. 40 Projectsformba.blogspot.comrecently participated in a large auto exhibition in Brazil and found good consumer acceptanceto products
like Pulsar and Wind 125.The other focus area is the ASEAN nations, which constitute the third biggest consumer oftwo-wheelers. The biggest among them is Indonesia, where Bajaj distributors are looking tointroduce eco-friendly four-stroke auto rickshaws. But two-wheeler market requires greatdeal of effort from BAL. Everybody is there with Honda leading the show. Theres Suzuki,Kawasaki and some Korean and Chinese models. BAL should look at the right product mixfor two-wheelers. Bajajs Pulsar model has taken off well there. It also wants to develop anew stepthrough model for the Indonesian market, but for now it will create a base therewith its motorcycle models.Bajaj has also made a beginning by selling bikes in the Philippines branded in the name of itstechnical partner, Kawasaki. The two signed an MoU in February. Kawasaki, a large multi-product conglomerate, only makes high-end bikes and does not have sub-200cc models.Kawasaki is marketing the new model, Wind 125, developed by both companies, in thePhilippines. The Bajaj-developed models, Caliber and Byk, which is a fuel-efficient bike, arealso being distributed by Kawasaki. This is a good beginning strategically for Kawasaki toevince interest in Bajaj products for markets which can still buy less than 150 cc.2.21 R&DBajaj Auto has a huge, extensive and very well-equipped Research and Development winggeared to meet two critical organizational goals: development of exciting new products thatanticipate and meet emerging customer needs in India and abroad, and development of eco-friendly automobile technologies.While the manpower strength of the R&D represents a cross-section of in-depth design andengineering expertise, the company has also been investing heavily in the latest, sophisticatedtechnologies to scale down product development lifecycles and enhance testing capabilitiesBajaj Auto R&D also enjoys access to the specialized expertise of leading internationaldesign and automobile engineering companies working in specific areas.Projectsformba.blogspot.com pg. 41
Projectsformba.blogspot.comBased on their own brand of globalization, they have built their distribution network over 60countries worldwide and multiplied the exports from 1% of total turnover in Fiscal 1989-90to over 5% in Fiscal 1996-97.The countries where their products have a large market are USA, Argentina, Colombia, Peru,Bangladesh, Sri Lanka, Italy, Sweden, Germany, Iran and Egypt. Bajaj leads Colombia with65% of the scooter market, in Uruguay with 30% of the motorcycle market and in Bangladeshwith 95% of the three-wheeler market.Several new models are being developed specifically for global markets and with these thecompany will progressively endeavor to establish its presence in Europe too.2.22 The FutureAlthough the avalanche of motorcycles offered Indian consumers a wide variety of models
tochoose from, it also resulted in increased pressure on the companies to concentrate on cost-cuts, technology enhancements and up-gradations and styling. Their margins came underpressure as marketing costs escalated.The companies were forced to reduce prices and offer discounts to survive the competition.Moreover, analysts were skeptical about the segments ability to maintain the growth rate inthe years to come. One of the major assumptions underlying the motorcycles rush was that ifthe market was considerably large and was growing at a constant pace, there was room for aprofitable existence for all brands.In 2001, there were over 30 motorcycle brands in the market. However, with the top fivebrands accounting for more than 60% of the market, only 40% of the market was availablefor all other new brands put together. Despite the launch of more vehicles, the survivalprospects of many of the individual brands were deemed to be rather bleak.Projectsformba.blogspot.com pg. 42
Projectsformba.blogspot.comFurther, the growth in the motorcycle segment was dependant on continuing favorable marketconditions. Analysts claimed that to sustain this growth rate, the segment would have tocompletely cannibalize the market for scooters and a considerable part of the market forscooters and mopeds.Considering the fast growing scooter segment, with high demand from female customers,followed by the moderately growing moped segment and the restructuring in the scootersegment with major national and foreign players reinforcing their presence, it was unlikelythat the entire growth in the two-wheeler sector would be due to motorcycles.Analysts also commented that as the two-wheeler industry had grown steadily for eight years,stages in the product life cycle would apply to the field sooner, rather than later and thedecline stage would invariably come some day. There was little differentiation between thebrands being launched apart from styling as most companies had introduced their four-strokevehicles.With the failure of the joint ventures, the expected introduction of cheaper Chinese brands,stringent emission norms and threat from major international players, the survival ofindigenous brands looked uncertain. Constrained with the ruling price levels in the marketplace, limited infrastructure and lack of technological innovations when compared to theirforeign counterparts, whether the Indian companies would succeed in generating the kind ofvolumes needed to sustain in the competitive motorcycle market, remains to be seen.2.23 New Strategies adopted by BajajMajor emphasis to be on new product launches.Have a new scooter market under development will be launched early 2010.Plan to launch a threewheeled motorcycle, to cater to a niche segment.Bajaj expects stronger growth in the first quarter of FY10 powered by the continuing success of theXCD 135 DTS-Si as also the launch of
product upgrades off the Pulsar platformAs a result of the recent stake hike by Bajaj Auto, KTM now has Rajiv Bajaj on its board and thecooperation agreement between the two companies covers product development, technology, vendorsourcing and distribution. Existing Products New Launchs in 2009Projectsformba.blogspot.com pg. 43
Projectsformba.blogspot.comBajaj Bajaj Kristal DTSi XCD 135 DTSi Pulsar XCD Sprint Discover 135 DTSi Discover 100 DTS-Si Platina 100, 125 DTSi Kawasaki Ninja 250R2.24 HONDA MOTORCYCLE & SCOOTER INDIA (Pvt.) Ltd.(HMSI) Honda is the worlds largest manufacturer of 2-wheelers. Its symbol, the Wings,represents the companys unwavering dedication in achieving goals that are unique and aboveall, conforming to international norms. These wings are now in India as Honda Motorcycle &Scooter India Pvt. Ltd. (HMSI), a wholly owned subsidiary of Honda Motor Company Ltd.,Japan. These wings are here to initiate a change and make a difference in the Indian 2-wheeler industry. Hondas dream for India is to not only manufacture 2-wheelers of globalquality, but also meet and exceed the expectations of Indian customers with outstanding aftersales support.2.25 About Honda Motorcycle & Scooter India Pvt. Ltd.Official Name Honda Motorcycle & Scooter India Pvt. Ltd.Projectsformba.blogspot.com pg. 44 Projectsformba.blogspot.comEstablished 20th Aug, 1999Place Manesar, District Gurgaon, Haryana, IndiaInvestment Rs. 300 CroreRepresentative Mr. Shinji Aoyama, President & CEOFactory Location Manesar, District Gurgaon, Haryana, IndiaProduction Capacity 10,000,00 Units per Year Hondas dream for India is to not only manufacture 2-wheelers of global quality; butalso meet and exceed the expectations of Indian customers with outstanding after salessupport. They aim to produce technologically superior, efficient and reasonably priced 2-wheelers, with Honda tested technology, backed up with after sales service of Hondas globalstandard.2.26 CORPORATE PROFILE Honda Motor Co., Ltd., operates under the basic principles of "Respect for theIndividual" and "The Three Joys"-commonly expressed as The Joy of Buying, The Joy ofSelling and The Joy of Creating. Respect for the Individual" reflects our desire to respect theunique character and ability of each individual person, trusting each other as equal partners inorder to do our best in every situation. Based on this foundation of Respect for the Individual,"The Three Joys" expresses our belief and desire that each person working in, or coming intocontact with our company, directly or through our products, should share a sense of joythrough that experience. In line with these basic principles, since its establishment in 1948, Honda Motor Co.,Ltd., has remained on the leading edge by
creating new value by providing theProjectsformba.blogspot.com pg. 45
products
of
HMSI is the subsidiary company of Honda Motors Ltd. Which is the largest company in the proposed sectorProjectsformba.blogspot.com pg. 46 Honda having high tech engines Honda is the first company who introduced the technology of central shock absorption in India Honda have a big share of market in scootreats segment Affordable price Reliable brand name Projectsformba.blogspot.comhighest quality at a reasonable price, for worldwide customer satisfaction. In addition, theCompany has conducted its activities with a commitment to protecting the environment andenhancing safety in a mobile society. The Company has grown to become the worlds largest motorcycle manufacturer andone of the leading automakers. With a global network of 454* subsidiaries and affiliatesaccounted for under the equity method, Honda develops, manufactures and markets a widevariety of products ranging from small general-purpose engines and scooters to specialtysports cars, to earn the Company an outstanding reputation from customers worldwide.2.27 Mission Statement Maintaining a global viewpoint, we are dedicated to supplying products of the highestquality at a reasonable price for worldwide customer satisfaction.2.28 SWOT AnalysisStrength Threat of cheap imported motorcycles and components from China2.29 PRODUCT RANGE: SCOOTERS: DIOProjectsformba.blogspot.com pg. 47 There is high competition in the market Honda can be use brand image of Hero HondaThreats More maturity and movement towards higher-end motorcycles Untapped market above 180 cc in motorcycles. Increase in product range Maintenance cost is very highOpportunity Low product range Spares parts are not easily available Market share very less as compare to there competitor Less number of service center Projectsformba.blogspot.comWeakness Projectsformba.blogspot.com ACTIVA AVIATOR MOTORCYCLES: CB TWISTER SHINE CBF STUNNER UNICORN CBF STUNNER PGM FI CB1000R CBR1000RRFeatures of a few bikes from above mentioned list from HONDA are as follows.. Activa ACTIVA Manufacturer Honda Motors Ltd. Production 2004-present Price Rs. 40661 Engine 4stroke, air cooled,7 bhp @ 7000 rpm,102 ccProjectsformba.blogspot.com pg. 48
Projectsformba.blogspot.com CB Twister CB TWISTER Manufacturer Honda Motors Ltd. Production 2010 ONWARDS Price Rs 48,000 Engine 110cc,9bhp@8000 CBF STUNNER PGM FI rpm,9Nm@6000rpm CBF STUNNER Manufacturer Honda Motors Ltd. PGM FI Production 2010 ONWARDS Price Rs 48,000Projectsformba.blogspot.com pg. 49 Engine 125cc,11.6bhp@8000 rpm,11.2Nm@6250rpm Projectsformba.blogspot.com UNICORNUNICORN Manufacturer Honda Motors Ltd. Production 2005-present Price Rs 63,000 Engine 150cc,13.3bhp@8000 rpm,12.8N- m@5500rpm.2.30 Market growth and market size (HMSI)Projectsformba.blogspot.com pg. 50 Projectsformba.blogspot.comThe automobile industry has seen an overwhelming growth in liberal India. Almost every bigmanufacturer has made its presence felt in the country. After the foreign direct investmentregulations were removed, many manufacturers saw India as a potential market. Most of theauto manufacturers were in collaboration with the Indian companies after 91 till 99, whenthe rules were changed; some of them still enjoy that. With many foreign manufacturerseyeing India as the market, the giants were no exception and most of them are already havingtheir manufacturing or assembling facilities in India. Honda was into the Indian two-wheelerindustry from 1983, when it joined hands with Hero to start Hero Honda and with Kinetic tostart Kinetic Honda. Honda broke the ties with Kinetic in 99 and set up its own 100%subsidiary called Honda Motorcycle and Scooter India (HMSI) Pvt. Ltd.HMSI laid its foundation stone in Manesar, Haryana in the same year and also signed anagreement with Hero that it wont manufacture motorcycles for the next five years i.e. till2004 as Hero Honda was not into the scooter segment at that time. This gave Honda a licenseto manufacture scooters at will and it did that by rolling out its first scooter, Activa in 2001and followed it with Dio in the same year. Honda now enjoys a large chunk of market sharein the scooter segment with Activa, Dio and now Aviator as its products. Honda introducedits first motorcycle, Unicorn in 2004 in the 150cc segment which was followed by Shine inthe 125cc segment in 2006 followed by Stunner in the same segment in 2008. All thesemotorcycles were highly appreciated and instant hits in the growing Indian market whichover these years was mainly dominated by Hero Honda and Bajaj Auto Ltd.The main rivals HMSI is countering are BAL, Hero Honda and TVS in the motorcyclesegment and TVS, Hero Honda and Mahindra Kinetic in the scooter segment. HMSI is themarket leader in the scooter segment and is yet to have a major share in the motorcyclesegment even though it is growing at 32.24% on a monthly basis.The bike segment has a market growth rate of 43% with HMSI having a share
of 18% Thebiggest rival in this segment is HMSIs sister concern Hero Honda with a share of 55%. Thescooter segment is having a growth rate of 32.24% and HMSI having a market share of57.7%. The nearest rival in this segment is TVS motors with a share of 18.7%.2.31 Strategy of rivals Vs HMSIIn 2007, out of every 100 two-wheelers sold in the country - only 12 were scooters. Thatnumber went up to 16 in the past financial year and is projected to zoom to almost 20 thisProjectsformba.blogspot.com pg. 51
Projectsformba.blogspot.comyear. Theres more: the scooter market grew in double digits last fiscal, outperforming thetwo-wheeler market, which grew 2.6 per cent in the same period. The golden days of theearly 80s, when scooters had a 64 per cent market share, are still far away. But the revivalsignals are strong.Scooter manufacturers said the 1.14 million-strong domestic market was expected to cross 2million units in the next four years. That explains the entry of a host of newer players in thesegment, such as Mahindra-Kinetic and Yamaha. Sensing competition, the establishedplayers Honda, TVS Motors, Bajaj Auto, Hero Honda and Suzuki have hit the drawingboard once again, to pull out flashy, high-powered and un-geared scooters.Scooter production stands at roughly 20% of the overall two-wheeler productionYear Two Wheelers Production (Bikes + scooters) 2002-03 5,076,221 2003-04 5,622,741 2004-05 6,529,829 2005-06 7,608,697 2006-07 8,466,666 2007-08 8,026,681 2008-09 8,418,626(http://www.siamindia.com/scripts/productiontrend.aspx)HMSI has 55 per cent market share, followed by TVS Motors with 19 per cent and HeroHonda with 14.5 per cent and Bajaj managing a 11% market share. Sales Growth / Decline % Projected Market share % * Growth% HMSI 55 32.24% 18% TVS 19 14% 7 Bajaj 11 -12% NA* based on year on year comparison with sales in July 2008* Comparison of scooter sales.Projectsformba.blogspot.com pg. 52 Projectsformba.blogspot. The Company has entered the bikes market since 2004. This has led to a certain degree of cannibalism between Hero Honda The company would focus on gearless scooters in the future and with the launch of the new Activa, HMSI is looking at a total of 18% growth in its two-wheeler sales in the next fiscal, 200910. Honda to exit geared scooter segment in India, the Japanese two-wheeler major Honda will exit the geared scooter market in India and phase out its 150 cc model Eterno as the company plans to focus on the gearless segment. com2.32 Strategy of HMSI & Honda remains committed to its promise to deliver superior technology and performance, even though HMSI products are priced relatively higher than other companies in the market.2.34 Strategy adopted by TVS HMSI has a one-month waiting period for its new
Activa (110 cc); six months before, it was just 10 days. Encouraged, it is ramping up its monthly production to 60,000 from 40,000 earlier. HMSI. However, Honda motor company stands to gain out of either companys success. & Bajaj for increasing sales and counteringgrowth of HMSIMost companies currently produce scooters in the 100-125cc range that are targeted atcustomers who want higher mileage and are ready to compromise on power. Generally, anentry-level bike (100cc) is more powerful and economical than a gearless scooter.To counter this, companies are working on scooter models that generate higher power withoutundermining the fuel economy. The result will be a product that matches the performance ofmotorcycles while being more comfortable, agile and easy on the pocket.They also aim at developing E- scootersProjectsformba.blogspot.com pg. 53
The countrys second largest bike maker, Bajaj Auto, is also developing a completely new, un-geared, scooter. To be launched in 2011, it is aimed at taking on the products of HMSI. This product will be high on power output, like the companys current bike range, but will not sacrifice on fuel economy.2.35 Review of strategies adopted by HondaThe first bike launched by Honda, Unicorn was launched in the existing 150cc segmentwhich was mainly dominated by Pulsar series and later TVS Apache also chipped in withinthe competition. Same was the case with Shine, its second bike in the 125cc segment. Afterthis, Honda slightly moved away from convention by adopting a new strategy ofsegmentation by creating a segment within two existing segments. In 2008, Honda launched a125cc Stunner CBF intended for not the conventional 125cc segment but just between 125ccand 150cc segment. Honda did not compromise on the feature rich and technologically soundproduct and not on the price either. The price of this bike was 50-60 thousand, thusovercoming the price void between the 150cc and 125cc bikes. The competitors sell their125cc bikes at 40-50 thousand while the price of 150cc segment starts somewhere around 60thousand. This pricing strategy of Honda has paid well and now they are planning topenetrate the gap between the existing 100cc and 125cc segments by launching a new featureladen and technologically sound 100cc bike. Again Honda has clearly announced that theprice of this bike wont be in the conventional 100cc range but slightly more than that. SBU Market Market Share Market Share Relative Quadrant Growth Rate Of Nearest Market Share RivalProjectsformba.blogspot.com pg. 54 Chennai-based TVS Motors, makers of Scooty, are developing a premium un-geared scooter that will be more powerful and superior on design and styling. The company is learnt to have developed a new platform,
much more powerful Projectsformba.blogspot.com
than
the
90cc
Scooty.
Projectsformba.blogspot.com Bikes 43 18 55 0.33 Question Mark Scooters 32.24 57.7 18.7 3.08 StarProjectsformba.blogspot.com pg. 55 Projectsformba.blogspot.com RELATIVE MARKET SHARE STAR Question Mark (Scooters) (Bikes) 10 CASH COW DOG 0Projectsformba.blogspot.com pg. 56 Projectsformba.blogspot.comMARKETGROWTHProjectsformba.bl ogspot.com pg. 57 Projectsformba.blogspot.com 3.1 RESEARCH DESIGN3.2 STATEMENT OF PROBLEM One of the major problem is the negative growth being faced by companies in the two wheeler industry. The two wheeler industry has been shrinking continuously. From a peak of over 40% growth in 2002 it is currently facing a growth of -12% in the second quarter of 2008. Exhibit shows the recent trends.Projectsformba.blogspot.com pg. 58 Projectsformba.blogspot.com The above exhibit shows the Degrowth in the industry.3.3 HYPOTHESISProjectsformba.blogspot.com pg. 59 Projectsformba.blogspot.comNull Hypothesis, H0 : There is a negative growth in the two wheeler industryAlternative Hypothesis, H1: There is no negative growth in the two wheeler industry.3.4 AIMS AND OBJECTIVES To study and compare the top three companies HERO HONDA,BAJAJ,& HMSI To compare and analyze the product strategies of these three companies. To find out the reasons for change in growth of two wheeler industry.3.5 SAMPLING TECHNIQUENon-probability sampling technique Convenience Sampling was used for collecting datafrom the consumers for the survey.3.6 SAMPLE UNIT Sample units are nothing but the respondents covered during the process of collecting data for the purpose of research. The sampling units consisted of people who own a two wheeler.3.7 SAMPLE SIZEProjectsformba.blogspot.com pg. 60 Projectsformba.blogspot.comThe sample size is the total number count of the number of total respondents covered for theresearch purposes.Total sample size =100Male 88Female- 123.8 STATISTICAL DESIGN The data was collected and complied in Microsoft Excel and is analyzed using graphs and pie charts.3.9 PRIMARY DATA Primary data was collected through the administration of questionnaires to the sample units and conducting a
pilot study to ascertain the worth of the questionnaire. Questionnaire Design Questionnaire Administration Scoring Procedure Pilot studyProjectsformba.blogspot.com pg. 61
Projectsformba.blogspot.com3.10 SECONDARY DATA Secondary data would be collected from internet, industry journals and magazines. This information and the previous research papers will help in designing the questionnaires and various attributes on which the companies are to be assessed. The company dealers also provided valuable information.3.11 LIMITATIONS OF STUDY Owing to the huge population size (sampling universe) spanning throughout the country, it becomes almost impossible to cover all the places in the given scope of study. The results thus obtained are just an overview of the areas and companies covered. The data gathered and the results interpreted are what was done in a time frame of 6 months and hence may not reveal the depth of the situation. For the ease of analysis, percentage of respondents using the products was considered as the market share of the particular product in that category. This dissertation is confined on the basis of more secondary data collected only hence it is not very much a reliable data for the study.Projectsformba.blogspot.com pg. 62 Projectsformba.blogspot.comProjectsformba.blogspot.com pg. 63 Projectsformba.blogspot.com 4.1 RESPONDENTS PROFILE4.2 SEX TABLE 3: SEX OF RESPONDENTS SEX NUMBER OF PERCENTAGE OF RESPONDENTS RESPONDENTS(%) Male 88 88 Female 12 12Projectsformba.blogspot.com pg. 64 Projectsformba.blogspot.com 88 males and 12 females were covered during the survey.Hence 88% of the respondents were males and the rest 12% were females.4.3 MARITAL STATUS MARITAL STATUS OF RESPONDENTS MARITAL STATUS NUMBER OF PERCENTAGE OF RESPONDENTS RESPONDENTS(%) Unmarried 70 70 Married 30 30Projectsformba.blogspot.com pg. 65 Projectsformba.blogspot.com MARITAL STATUS MARRIED 30% SINGLE 70% Out of the total respondents ,70% were single,30% were married and separated factor was not taken into account.4.4 OCCUPATION OCCUPATION OF RESPONDENTS OCCUPATION NUMBER OF PERCENTAGE OF RESPONDENTS RESPONDENTS STUDENTS 68 68 SELF EMPLOYED 20 20 WORKING 12 12Projectsformba.blogspot.com pg. 66 Projectsformba.blogspot.com Among the 100 people surveyed ,68% were students,20% were self-employed and remaining 12% belonged
to working class like office goers, AGEProjectsformba.blogspot.com pg. 67
clerks
etc.4.5
Projectsformba.blogspot.comAGE GROUP NUMBER OF PERCENTAGE OF RESPONDENTS RESPONDENTS18-22 10 10%22-25 60 60%25-30 20 20%>30 10 10% AGE 18 - 22 10% > 30 10% 25 - 30 20% 22 - 25 60% Of the 100 respondents, 60% belonged to 22-25 age group,20% to 25 -30 group,10% to18-22 group and the remaining 10% to more than 30 age group.Projectsformba.blogspot.com pg. 68 Projectsformba.blogspot.com4.6 INCOME MONTHLY NUMBER OF PERCENTAGE OF INCOME(IN RESPONDENTS RESPONDENTS 000S)RS. <20 30 30% 20-30 55 55% 30-40 10 10% >40 5 5% 30% of the total respondents earn less than Rs. 20,000 per month,55% of the respondents earn Rs. 20,000-30,000 per month,10% of the respondents earn Rs .30,000-40,000 per month and 5% of respondents earn more than Rs. 40,000 per month.Projectsformba.blogspot.com pg. 69 Projectsformba.blogspot.comProjectsformba.blogspot.com pg. 70 Projectsformba.blogspot.com 5.1 DATA ANALYSIS5.2 OWNERSHIP OF TWO WHEELER YES 80% NO 20%Projectsformba.blogspot.com pg. 71 Projectsformba.blogspot.com ANALYSIS: 80% of the respondents own a two wheeler and 20 % of them do not have one. INTERPRETATION: Since majority of my respondents are students from colleges, they own two wheelers for daily commutation. Each one of them own different brands according to the taste and preferences of the two wheelers available in the market. The most common brands are Hero Honda, Bajaj, Honda.TVS etc.5.3 MOST VIEWED ADSHERO HONDA 50%BAJAJ 40%HMSI 10%Projectsformba.blogspot.com pg. 72 Projectsformba.blogspot.com MOST VIEWED ADS HERO HONDA, 50 50 45 BAJAJ, 40 40 35 30 25 20 15 HMSI, 10 10 5 0 HERO HONDA HMSI BAJAJ ANALYSIS: The viewership rate of ads among respondents is highest for Hero Honda with 50%,then comes Bajaj with 40% and Honda with 10%. INTERPRETATION: Hero Honda and Bajaj being the long term rivals compete each other to capture the market share. Hence if one of them comes with an effective ad, the other will surely try to better it. In case of Honda its a late entry into the Indian market and its growing.5.4 MOST INFLUENTIAL ADS HERO HONDA 35% BAJAJ 55% HMSI 10%Projectsformba.blogspot.com pg. 73
Projectsformba.blogspot.com ANALYSIS: In terms of influence of ads on the respondents, Bajaj comes with 55% , then Hero Honda with 35% and Honda 10%. INTERPRETATION: Bajaj comes with ads that has more adrenalin rush specially targeting the youth and majority of them get inspired by the same. Hero Honda mainly depends on celebrities to influence the viewers. Honda mainly focuses on the international reputation of brand name they have built for themselves. 5.5 BEST RECALLED ADSProjectsformba.blogspot.com pg. 74 Projectsformba.blogspot.com ANALYSIS: In terms of recall ,50% of respondents were for Bajaj stunt ad, then 35% were for Hero Honda KARIZMA ad with Hrithik roshan as brand ambassador. INTERPRETATION: Bajaj came with stunt ads so that it may attract the youth,and they positions their bike mainly high performing, aggressive, reliable. Hero Honda comes with the fan base of its brand ambassador who very well connects with the features of the bike .Very few recalled Honda bike ads as they were very stereotyped ads.5.6 MOST COMMON SOURCE OF ADSTV 18%NEWSPAPER/MAGAZINES 70%Projectsformba.blogspot.com pg. 75 Projectsformba.blogspot.comBILLBOARDS 5%INTERNET 7%ANALYSIS:Among the common source of ads, newspaper and magazines are marked by 70% ofrespondents, TV by 18% ,Internet by 7% and Billboards by 5%.INTERPERTATION:Newspaper and magazines comes with a lot of information related to bikes and it is a majorsource. Latest trend of internet penetration also brings in ads on bikes ,mainly through socialnetworking sites, during online matches, events etc.5.7 SOURCE OF RELIABLE INFORMATION FOR PURCHASEDECISIONS FRIENDS 5%Projectsformba.blogspot.com pg. 76 Projectsformba.blogspot.com INTERNET 65% AUTOMOTIVE 10% MAGAZINES COMPANY 20% DEALERS ANALYSIS: Out of 100 respondents ,65% found internet as a good source of reliable information,then with company dealers 20%,automotive magazines 10%,friends 5%. INTERPRETATION: The various web sites on the net provide valuable information regarding the bikes. With the availability of net, people can browse about any information about anyProjectsformba.blogspot.com pg. 77 Projectsformba.blogspot.com model before going to any dealer. Company dealers provide specific information and in depth about a particular model. The rest is from friends and auto magazines.5.8 FACTORS WHICH MOTIVATE PURCHASING DECISION. DISCOUNT RATE 30% EMI 45% RESALE VALUE 12%
ALLOWANCES 8% OTHERS 3%Projectsformba.blogspot.com pg. 78
Projectsformba.blogspot.com ANALYSIS: EMI is one of the major motivating factor with 45% liking it,then comes discount rate 30%,resale value 12%,allowances 8%,and others 3% INTERPRETATION: EMI comes with a great motivational factor in purchasing a bike. It is less risky ,and affordable way of purchasing. Discount rate normally comes during festival seasons where maximum sales happen. Resale value has few effects on certain branded bike purchases.5.9 PREFERRED PRICE RANGE(in 000s) 30-40 5% 40-50 5% 50-60 13% 60-70 65% 70-80 10%Projectsformba.blogspot.com pg. 79 Projectsformba.blogspot.com >80 2% ANALYSIS: The most preferred price range is 60-70 with 65% going for this option.13% for 50-60, 10%for 70 to 80, 5% each for 30-40 & 40-50.and 2% for more than Rs.80,000. INTERPRETATION: Most of the performance, value segment bikes falls in the 60-70 price category, and there is huge competition among the major players. Then the preferred ones are high performance bikes in the >Rs. 70,000 and medium performance and high efficient ones in the <Rs.60,000 category .Projectsformba.blogspot.com pg. 80 Projectsformba.blogspot.com5.10 RATING FOR VARIOUS FACTORS(1 LEAST PREFERRED AND7 MOST PREFERRED)Projectsformba.blogspot.com pg. 81 Projectsformba.blogspot.com ANALYSIS: In this the most preferred factor is performance with 75% going for it. Then comes service and support and fuel efficiency with 90% and 70% in terms of preferences. This is followed by price and brand value of the bike. INTERPRETATION: Performance is one factor which most of the people specially youth look upon in a two wheeler. Also the companies have come upon with a segment of this category andProjectsformba.blogspot.com pg. 82 Projectsformba.blogspot.com have developed bikes based on this. The customers also look into the after sales and support the company offer when going for a two wheeler. Hence the service offered is of prime importance. The price is an important factor for medium segment people that is below Rs.60,000 as they try to balance price as well as efficiency of two-wheeler. Brand value plays a major role for loyal customers for eg. A person buys only HONDA, because its one of the internationally trusted brands.5.11 IS CROSSCHECKING DONE? YES 20% NO 80%Projectsformba.blogspot.com pg. 83
Projectsformba.blogspot.com ANALYSIS: Only 20% say that they do cross checking of what they see in the commercial,80% do not do it INTERPRETATION: Most of the viewers see the ads and get some information regarding it with very few doing crosschecking about what really is behind the scenes.Projectsformba.blogspot.com pg. 84 Projectsformba.blogspot.com 6.1 DEMAND AND GROWTH DRIVERSProjectsformba.blogspot.com pg. 85 Projectsformba.blogspot.comThe following factors play a major role in increasing the demand for two wheelers in India.Personal Income, demography and penetration level are key growth drivers in the twowheeler industry.Personal IncomeDemand increases as the income increases, only to be substituted later by the demand for fourwheelers. Income has been steadily growing in India and is projected to stabilise at a growthrate of 9-12 percent range by 2012.Demography and InspirationThe bigger the young and working population, the greater is its need for commutation. The ITand BPO revolution has influenced this movement. This is a favourable factor since Indianworkforce is young.Penetration LevelThe lower the penetration levels in the market, the better the scope for future demand. As thepenetration of the rural market is significantly low, it is going to be a significant long termgrowth driver.Other FactorsImprovement in infrastructure increases competition, while simultaneously improving thepublic transport. The average time period taken to replace an existing bike with a newermodel has decreased from 7 years to 5 years, resulting in replacement demand growth.Projectsformba.blogspot.com pg. 86 Projectsformba.blogspot.com 7.1 FINDINGSThe major findings during the data collection and analysis time can be summed up as follows:Projectsformba.blogspot.com pg. 87 Projectsformba.blogspot.com Interest rates are one of the prime reasons for the sharp fall in demand. Many banks have increased interest rates which make two wheelers costlier. Difficulty in availing loans, rising defaults, tightening of loan recovery laws and various other factors have dissuaded consumers from availing loans and led to further problems in credit lending. Increasing oil prices have deterred many lower middle class families from buying two wheelers. Introduction of low priced cars will directly affect the market. The family segment would want to gradually move from two wheelers to four wheelers. The major impact of this phenomenon would be experienced in the 100-125 cc two wheelers whereas the performance segment i.e. > 125cc will continue to grow strongly. With the introduction of the Bharat-4 norms, it will be more
challenging to meet these stringent norms whilst simultaneously offering competitive prices. In spite of these factors, demand drivers are present for the foreseeable future and are favourable for the two wheeler industry. However, to capture this growth, any player will have to correctly position itself to appeal to the consumer.Projectsformba.blogspot.com pg. 88
Projectsformba.blogspot.com 8.1 HYPOTHESIS TESTINGNull Hypothesis, H0 : There is a negative growth in the two wheeler industryAlternative Hypothesis, H1: There is no negative growth in the two wheeler industry.Projectsformba.blogspot.com pg. 89 Projectsformba.blogspot.comPARAMETERS TO TEST HYPOTHESISSince the hypothesis is stated in absolute subjective terms, there was a requirement to convertthis subjectivity into objectivity to arrive at a stage for testing the hypothesis. For performingthis task, 7 product categories were selected and the companies were tried on the grounds of: Availability of product Number of customer complaints Dealers satisfaction level Areas of operation and design of distribution channels Hold on the market share Hence the companies were tested on these basis and hence the results were compiled according to the respective product categories itself.RESULT OF HYPOTHESIS TESTINGThe overall research and analysis of the two wheeler companies across these 7 categories ledto the following result: Null hypothesis is accepted for the product categories of 100cc and 125cc segment as there is intense competition from fuel efficient small cars in India. Null hypothesis does not hold true for product categories like 135cc,150cc,180cc,220cc.Since the null hypothesis does not hold true in majority of the product categories and hencethe null hypothesis is not valid and hence, NULL HYPOTHESIS IS NOT PROVED. InIndian markets for majority of the two wheeler product categories, Foreign companies havestreamlined their operations and distribution channels in a much more effective way ensuringhigher availability of their goods in the market in panIndia.Projectsformba.blogspot.com pg. 90 Projectsformba.blogspot.com 9.1 RECOMMENDATIONSThe following recommendations are:Projectsformba.blogspot.com pg. 91 Projectsformba.blogspot.com The two wheeler companies should focus on gearless scooters. The market share of gearless scooters is increasing at a healthy rate. Bajaj is virtually absent in this range that caters to the needs of women and families. Presently Honda, Hero Honda and TVS are big players in this segment. Entry into four wheeler segment Bajaj has entered into a joint venture with RenaultNissan in the development of a small car priced at $3000. This is a
significant move because it directly competes with Tata NANO. Bajaj has also displayed its small car prototype in the recently held auto expo. It promises double the mileage as compared to any car in the economy segment and is also considering the option of introducing Diesel and LPG variants. The four wheeler segment will also be able to hedge any risk that might arise because of the two wheeler industry and would profit from retaining consumers switching from two wheelers. Scaling Up Service Centers Companies need to scale up its service centers both in numbers and in capacity. Keeping in line with its growth target for the next 5 years, the service centers should not only cater to two wheelers but should also be upgraded to cater to the needs of four wheelers that companies plans to launch. Focus on Easy Credit Lending Investment in Research and Development Focus on Exports and Global MarketProjectsformba.blogspot.com pg. 92
Projectsformba.blogspot.com 10.1 LEARNINGSI had some major learnings while working on this research project which can be summarizedas follows:Projectsformba.blogspot.com pg. 93 Projectsformba.blogspot.com Dream High because that will help you to Achieve Big. Systematic Planning is the essence for the project. Making realistic time frame and following them is mandatory. Data Collection requires a lot of patience and follow up. It requires meticulous research to select the right sample for research. Secondary data collection is also an important task and one must be aware which source is completely authentic and reliable. SMART
A project report on measuring customer satisfaction level and sales promotion in yamaha Document Transcript
1. Projectsformba.blogspot.com SUMMER TRAINING PROJECT REPORT ON MEASURING CUSTOMER SATISFACTION LEVEL AND SALES PROMOTION IN YAMAHA AT LAKHIMPUR and UNNAOSUBMITTED IN THE PARTIAL FULFILLMENT FOR THE REQUIREMENT OF MBA DEGREE SUBMITTED TO: (2008-2010) SUBMITTED BY: DR.BIMAL AGGARWAL HEMRUDRA PRATAP SINGH (DIRECTOR) MBA- III SEM. ROLL NO. 0825070024 BBS INSTITUTE OF MANAGEMENT STUDIES PLOT NO. 33, KNOWLEDGE PARK-III GREATER NOIDA, UTTAR PRADESH Projectsformba.blogspot.com
2. Projectsformba.blogspot.com TO WHOMESOEVER IT MAY CONCERNThis is to certify that ., a student of Post Graduate Degree inMBA, BBS Institute of Management Studies, Greater Noida has worked in theMARKETING DEPARTMENT, under the able guidance and supervision of., in INDIA YAMAHA MOTORS Pvt. Ltd.The period for which he was on training was for 8 weeks, starting from ..This Summer Internship report has the requisite standard for the partial fulfillment thePost Graduate Degree in Marketing. To the best of our knowledge no part of this reporthas been reproduced from any other report and the contents are based on originalresearch. ACKNOWLEDGEMENT Projectsformba.blogspot.com
3. Projectsformba.blogspot.comI express my sincere gratitude to my industry guide .. INDIAYAMAHA MOTORS, for his able guidance, continuous support and cooperationthroughout my project, without which the present work would not have been possible.I would also like to thank the entire team of INDIA YAMAHA MOTORS, for the constantsupport and help in the successful completion of my project.Also, I am thankful to my faculty guide . of my institute, for hiscontinued guidance and invaluable encouragement. Candidate declaration Projectsformba.blogspot.com
4. Projectsformba.blogspot.comI hereby declare that the work which is being presented in theproject report entitled Measuring Customer Satisfaction level andSales promotion in the partial fulfillment of the requirement forthe award of Master of Business Administration of BBS Instituteof Management Studies, Greater Noida of Uttar PradeshTechnical University, Lucknow is record of my own work and wascarried for a period of two months under the guidance of.. of commercial work of MarketingDepartment Yamaha India Motors. TABLE OF CONTENTS Projectsformba.blogspot.com
5. Chapter TopicNo.1.0 Industry Profile Projectsformba.blogspot.com 1.0 Industry Profile 1.1 Competitors Analysis 1.2 Company Profile 1.3 Swot Analysis 1.4 Swot for Two wheeler Industry 1.5 Swot for India Yamaha motors 1.6 Recent Launches 1.7 Future Launches2.0 Critical Review of Literature3.0 Hypotheses4.0 Executive Summary5.0 Research Design 5.1 Data Source 5.2 Research Approach 5.3 Objectives 5.4 Research Design 5.5 Sample Design 5.6 Scope of Study 5.7 Limitations of the study6.0 Data Primary Data Secondary Data7.0 Findings &
Analysis 6.1 Results of Customer Survey 6.2 Hypotheses Tests Projectsformba.blogspot.com
6. Projectsformba.blogspot.com Chapter 1.01.0 Industry Profile1.1 Competitors Analysis1.2 Company Profile1.3 Swot Analysis1.4 Swot for Two wheeler Industry1.5 Swot for India Yamaha motors1.6 Recent Launches1.7 Future Launches Projectsformba.blogspot.com
7. Projectsformba.blogspot.com1.0 INDUSTRY PROFILEAUTOMOBILE INDUSTRY TILL DATEThe automobile industry is one of the biggest industries in the world. Being a majorrevenue and job generating sector it drives the economies of some of the superpowersof the world. In India the automobile industry has grown by leaps and bounds since theadvent of the liberalization era the automobile industry and especially the two wheelersegment has grown by leaps and bounds.The liberalization has done away with primitive and prohibitive practices of licensing andrestricted foreign investment have been done away with. The result of which was theentry of foreign players into the Indian market. The two wheeler segment was largelydominated by Automobile Products of India (API) and Enfield in the 50s. Later ontowards the end of the 50s Bajaj Autos began importing Vespa scooters from Italiancompany Piaggio. In the following decades the automobile industry in India was mainlydominated by scooters with API and later Bajaj dominating the market. There were veryfew products and choices available as far as motorcycle is concerned and Enfield bulletand Rajdoot dominated the market.The 80s saw the entry of Japanese companies in the Indian market with the opening upof the market to foreign companies. Hero Honda and TVS Suzuki are companies formedin this era of market reform. The market was still predominantly scooter dominated andBajaj and LML were the leading brands producing the products at that time. Scooter wasviewed as a more family and utility friendly vehicle than motorcycle and hence waspreferred. Projectsformba.blogspot.com
8. Projectsformba.blogspot.comThe Japanese companies not only collaborated with Indian companies to produce thealready existing products but also brought in new technology as a result of which theever conquering 100cc bikes which were extremely fuel efficient with 4 stroke engineswere launched in India. These proved to be highly successful as they provided a cheapand affordable means of personal transport to all those who could not buy a car. Theflourishing middle class took a great liking for these bikes and the bike sales in Indiabegan to grow exponentially year on year leading to Hero Honda becoming the leader inthe two wheeler industry in India and the largest producer of two wheelers in the world.The post 90s era was the era of liberalization and weakening of restrictive measures.The government went on an overdrive to support the industry and all FDI regulations andlicensing was abolished. 100% FDI was allowed in the automobile industry and theexcise duty was also considerably reduced to its current level of 12% on two wheelers.All these factors combined with the rising fuel prices, the increasing dispensableincomes of households, easy access to finance, etc. have led to two wheeler industrybecoming the backbone of the automobile industry in India.The two wheeler industry in India forms a major chunk of the automobiles produced inIndia. According to Society of Indian Automobile Manufacturers statistics for the year2008
2009, two wheelers comprise 76.49% of market share among the vehiclesproduced in India.The production share of two wheelers is quite similar to the market share. The twowheeler industry comprises around 74% of the total automobiles produced in India. TheSIAM data for the year 2008-09 states that 8,418,626 two wheelers were producedduring the year against a total of 11,175,479vehicles produced during the year.SEGMENTATION OF TWO WHEELERA Two Wheeler Sector Sub-Segmenting in the three Segments. 1. Motorcycle 2. Scooter 3. Mopeds Projectsformba.blogspot.com
9. Projectsformba.blogspot.com Domestic Market Share 2008 09 Commercial Vehicles 3.95% Total Passenger Vehicles 15.96% Total Two Wheelers 76.49% Three Wheelers 3.60%1.1.1 Domestic Market Share 2008-09 Projectsformba.blogspot.com
10. Projectsformba.blogspot.com1.1 The Domestic Market Share of Two wheelers in 2008-09PAST YEAR REPORTIn the past year the sales of the automobile segment has taken a setback and the twowheeler segment has not proved to be any exception. The two wheeler segment hassuffered a setback of over 7% during the past fiscal year but there have been signs ofrecovery in the current year. Projectsformba.blogspot.com
11. Projectsformba.blogspot.com 1.2 Comparative Analysis of Domestic Sales of Automobiles 2008-09 1.3 Sales trend of automobiles for the last several yearsProduction Trend Projectsformba.blogspot.com
12. Projectsformba.blogspot.comIf we compare to the last year production of two wheelers it was around 8,026,681 out of10,853,930 but this year we have got growth of 1.78%, this year production of twowheelers is around 8,418,626 out of 11,175479 total automobile productions. 1.4 The Production trend of Automobiles for several yearsThe total sale of two wheelers in India has touched a figure of 7.86 million units byMarch, 2007, up 11.42% from the previous fiscal figures of 7.05 million. Productionduring the period reached 8.63 million units.The production of two wheelers in India is expected to reach a staggering 17.85 millionunits by 201112, more than double of the current production level.The two-wheeler production capacity is to reach 22.31 million units in 2011-12 comparedwith 10.78 million in 2006-07.The export of automobiles from India has been constantly growing and with theslowdown in the domestic market, the major companies are focusing on exporting muchmore to increase their profit margins. Projectsformba.blogspot.com
13. Projectsformba.blogspot.comGROWTH PROSPECTS AND KEY DRIVERS OF INDIAN TWO WHEELER INDUSTRYThe growth witnessed by the Indian two wheeler industry indicates the growing demandfor low cost personal transportation solutions amongst the 300 million Indian middleclass consumers. Despite this spectacular growth rate, the two wheeler penetration(number of two wheelers per 1000 inhabitants) in India remains lower than other Asiancountries. This fact provides an opportunity for continued growth in the market. India hasthe lowest Penetration of two wheelers as compared to countries like Taiwan, Thailand,Malaysia, Vietnam, Indonesia and China. In the present scenario, growth
in the twowheelers Industry will be driven by several factorsRise in Indias Young Working PopulationWith the rising levels of per capita income of people, the Indian two wheeler marketoffers a huge potential for Growth. This growth is relevant in the light of the fact that 70per cent of Indias population is below the age of 35 Years and 150 million people will beadded to the working Population in the next five years. The number of women in theurban work force is also increasing; this will lead to the Growth of gearless scooters.Rise of Indias Rural Economy and Growth in Middle Income HouseholdsThe growth prospects of the Indian rural economy offer a significant opportunity for themotorcycle industry in India. The penetration of motorcycles amongst rural households Projectsformba.blogspot.com
14. Projectsformba.blogspot.comwith income levels greater than US$ 2,200 per annum has already increased to over 50per cent. The current target Segment for two wheelers, i.e., households belonging to theIncome category of US$ 2,200 12,000 is expected to grow at a CAGR of 10 per cent.Greater Affordability of VehiclesThe growth in two-wheeler sales in India has been driven by an increase in affordabilityof these vehicles. An analysis of the price trends indicates that prices have more or lessstagnated in the past. This has been part of the marketing strategy adopted by themanufacturers to gain volume, as well as conscious efforts adopted to bring down costs.The operating expenses of leading manufacturers have declined by around 15 per centin the last five years. With greater avenues of financing, the customers capacity to own atwo wheeler has improved.Rapid Product Introduction and Shorter Product Life CycleThe last five years have witnessed a sharp increase in new product launches in the two-wheeler industry. It is estimated that close to 50 new products have been launched bymanufacturers during this period, filling up all price points and targeted at variousconsumer segments.Inadequate Public Transport Systems in most Urban AreasThe economic boom witnessed in the country and the increased migration to urbanareas have increased the traffic congestion in Indian cities and worsened the existinginfrastructure bottlenecks. Inadequate urban planning has meant that transport systemshave not kept pace with the economic boom and the growing urban population. This hasincreased the dependence on personal modes of transport and the two wheelers markethas benefited from this infrastructure gap.FACTORS AFFECTING THE MARKETPost 1991, the Indian two-wheeler industry comprising of motorcycles, scooters andscooterettes opened up tremendously. The Indian motorcycle industry has expanded ata 24% CAGR over the last five years, It Captured almost 80% of the market primarily atthe cost of the scooter and Moped segment. The scooter segment though has witnesseda revival with the launch of scooterettes aimed at young women and adolescents. Projectsformba.blogspot.com
15. Projectsformba.blogspot.comThe two wheeler market can be segmented into three categories on the basis of price Entry segment (<35000), Executive segment (between 35000 and 45000) Deluxe(between 45000 and 65000) and Premium segment (above 65000).Motorcycles are now sold as a passion, experience rather than a product. New productsare being introduced at a rapid pace and brands are gaining prominence. Thus there isan increased focus on the premium segment which has an increased scope fordifferentiation.Purchasing Power is relatively high
with buyers becoming more discriminating. Reliabilityand economy have become more of a hygiene factor. Buyers now demand two-wheelersthat fit their personality thus increasing the scope for differentiation and branding.Provision of financing through EMIs has provided a means to satisfy the need ofpossess a convenient and stylish mode of transport in the form of a two wheeler. Thishas resulted in higher growth in the 125-150cc segmentWith the introduction of Government policies such as reduction in excise duty from 16%to 12% and allowing for 100% FDI Barriers to entry has reduced. However, theinvestment required for setting up large distribution channels and service stations can bea major entry barrier. Another significant entry barrier is the brand building required.Thus, initially foreign players set up Joint Ventures with indigenous companies. Afterestablishing their brand they have launched their own line of products. E.g. Honda withHero Group and Yamaha with Escorts.Threat from Substitutes such as the Tata 1 Lakh car looms large over the two-wheelerindustry. For the first time, a car has been positioned at a price point that fills the vacuumbetween a motorcycle and a low-end car such as the Maruti 800. Previously, the price ofeven a low end car (2.5 3 Lakhs) was too high to attract the customers from the entryand executive two wheeler segment. Since brand loyalty is lower for these segments vis--vis the premium segment, these segments may be threatened by the Tata car. Theirbuyers will consider the convenience and status associated with owning a car, which isreasonably priced and therefore a viable substitute.Rising Customer Expectations Projectsformba.blogspot.com
16. Projectsformba.blogspot.comThe growth witnessed by the Indian two wheeler industry has attracted a number of newentrants to the market and it is expected that the Indian industry will become morecompetitive in the future. The excess of products introduced in the past has also raisedcustomer expectations with respect to reliability, styling, performance and economy.Inflation is a big factor that may play a part in moving the loyalties and aspirations ofpeople away from the four to the much cheaper and economical two wheeler segment.Moreover, the constantly increasing prices of oil and increasing interest rates on financeare not helping the cause either.Environmental Concerns are also quite big on the agenda these days and do play a partin the preference of consumers choices. The rising global temperatures along with dailysnippets in the national and international media about the thinning of ozone andimminent environmental disaster have all contributed to the making of a present dayenvironmentally conscious consumer.Environmental and Safety ConcernsThe increasing demand for two wheelers will need to be managed to address issuesrelating to overcrowding of roads. Another problem is the insufficient infrastructure forinspection to ensure adherence to emission norms. As the industry grows, it is importantto regulate the sale of used two wheelers in a more organised manner for which amechanism needs to be evolved. Unregulated sale of two wheelers, especially in therural areas, are likely to create issues related to emissions and safety of vehicles.Creation of Distribution InfrastructureLeading companies need to ensure that on one hand they build adequate infrastructurein terms of dealerships and servicing stations in the urban areas and on the other ensurethat their distribution infrastructure also reaches the rural areasCurrent Competition has intensified thus requiring greater branding and marketing. Alsodue to the presence of relatively undifferentiated products, advertising and
promotionshave gained importance. The product has moved from a commodity to a branded Projectsformba.blogspot.com
17. Projectsformba.blogspot.comproduct. However, there is still tremendous growth potential especially in the ruralmarkets due to the under developed road infrastructure for which motorcycles are highlysuitable. Segment wise market share 25 23.5 Growth Rates of different segments Three 3.9% CVs 4.03% 20 Wheeler 13.44% 4 year CAGR 14.3 14 14.2 15 11.3 Passenger 10 vehicles 5 0 Two Wheeler Commercial Passenger Two wheelers Three total 78.63% Vehicles Vehicles Segments wheelers Automobiles The industry has not experienced much change in its structure over the last 6 years Two- wheelers form the major share of domestic sales Passenger vehicles lead the exports market(57.4%) 2 wheelers form the bulk of exports as well, but are losing share to Passenger vehicles The growth in the two wheeler market is driven by the motorcycle market and is expected to grow at 14-15 % YOY` Projectsformba.blogspot.com
18. Projectsformba.blogspot.com The Key Players Others, 5.8% Others, 5.73 Yamaha, Honda Honda, 5.33 3.8% Motors, 8.5% Tata Motors,TVS Motors, 17.19 17.7% Maruti, 50.37 Hero Honda, 39.8% Bajaj Auto, Hyundai, 19.17 24.4% Two wheeler Passenger vehicle Commercial TATA Motors, Ashok Leyland, Swaraj Mazda,Mahindra & Mahindra ,Force vehicles motors, Eicher Motors Passenger TATA Motors, Maruti Udyog, Honda Motors, Toyata, Skoda, Mahindra & vehicle Mahindra, Daimler Chrysler, Hindustan Motors Two Wheeler Hero Honda, Bajaj Auto, Honda Motors, TVS Motors, Yamaha , Kinetic Motors Three Wheeler Bajaj Auto, Piaggio India1.1COMPETITORS ANALYSIS Projectsformba.blogspot.com
19. Projectsformba.blogspot.com1. Bajaj Auto Ltd.Established in 1945 Bajaj Auto Ltd was incorporated as a trading company. Till 1959,they imported scooters and three-wheelers from Italy and sold them in India. Thecompany got a production license in the year 1959 and fastened a technicalcollaboration with Italian PIAGGIO in 1960.Bajaj Auto Ltd. is one among Indias top ten companies in terms of market capitalizationand among the top five in terms of annual turnover.The company started producing scooters in the year 1961 and followed three-wheelersproduction in 1962. Its collaboration with Piaggio expired in 1971 and since then, theirscooters and three-wheelers are being sold with the brand name BAJAJ.Maharashtra Scooters Ltd., a Company with 24% equity participation by the Companyand 27% participation from Maharashtra State Governments Western MaharashtraDevelopment Corp. was formed in the year 1975 under the "Horizontal transfer oftechnology" policy.The first production unit is located at Satara, Maharashtra. The unit continues to collectscooters from CKDs supplied by the Company. These scooters are marketed throughthe Companys distribution network and under the Companys brand name.In 1984, the second production plant was set up at Aurangabad, Maharashtra. This plantstarted scooter production in 1986, three-wheeler production in 1987 and scooterettesand motorcycle facilities were commissioned in 1990 & 1991 respectively.Today, the company has become a market leader with annual production in excess of1.35 million units which was about 4000 units in 1961. These days, Bajaj Auto Ltd. hasstarted offering products in all segments (mopeds & scooterettes, scooters, motorcycles,three wheelers).
TWO WHEELERS>> MOTORCYCLEBajaj Avenger 180 CC Projectsformba.blogspot.com
20. Projectsformba.blogspot.comBajaj CT 100 99.27 CCBajaj Discover DTSi 135 CCBajaj KB 125 123 CCBajaj Platina 99.27 CCBajaj Pulsar DTS-Fi 220 CC 220 CCBajaj Pulsar DTSi 180 CC Pulsar 180 DTS-i UG 150 CC Pulsar 150 DTS-i UG 200 CC Pulsar 200 Cc 220 CC Pulsar 220 DTS-FiBajaj Wind 125 124.6 CCBajaj XCD 125 CC>> SCOOTERSBajaj Bravo 145 CCBajaj Chetak 145.45 CCBajaj Classic SL 145.45 CCBajaj Legend 150 CC>> SCOOTERETTES/MOPEDSBajaj Blade DTSi 100 CCBajaj Cagiva CRX 145 CCBajaj Fusion 145 CCBajaj Kristal DTSi 100 CCBajaj M 80 Electronic 74.08 CCBajaj Rave 74.08 CCBajaj Saffire 74.4 CCBajaj Spirit 100 CCBajaj Sunny 59.86 CCBajaj Sunny Spice 59.86 CCBajaj Wave DTSi 109.7 CC AWAITED MODELSSonic DTSi Motorcycle Projectsformba.blogspot.com
21. Projectsformba.blogspot.com1.1.2 Models of BAJAJ2. Hero Honda Motors Ltd.Hero Honda Motors Ltd. is a result of the joint venture betweenIndias Hero Group and Japanese Honda Motors Company inthe year 1983. This joint venture has not only created theworlds single largest two wheeler company but also one of themost successful joint ventures worldwide. Hero Honda isglobally known of being the most fuel-efficient and the largestCBZ selling Indian Motorcycle Company. This is a relationship so harmonious that HeroHonda has managed to achieve indigenisation of over 95 percent, a Honda recordworldwide.The below chart shows the golden years in the history of HERO HONDA :- 1985 CD-100 1989 SLEEK 1991 CD-100 SS 1994 Splendor 1997 Street 1999 CBZ 2001 PASSION 2002 DAWN, AMBITION CD-DAWN, SPLENDOR +, PASSION +, 2003 KARIZMA SUPER-SPLENDOR, CD-DELUX, 2005 GLAMOUR, ACHIEVER 1.1.3 Golden Years of HERO HONDAThe company is committed to provide the customer with excellence. A rich backgroundof producing high value products at reasonable prices led the worlds largestmanufacturer of motorcycles to collaborate with the worlds largest bicycle manufacturer.During 80s, Hero Honda became the first company in India to prove that it was possibleto drive a vehicle without polluting the roads. They company possess three Projectsformba.blogspot.com
22. Projectsformba.blogspot.commanufacturing units based at Dharuhera, Gurgaon and Haridwar are capable to produce4.4 million units per year. They introduced new generation motorcycles that set industrybenchmarks for fuel thrift and low emission.The unique features like fuel conservation, safety riding courses and mobile workshopshelped the group reach in the interiors of the country. Wellentrenched in the domesticmarket, Hero Honda Motors Ltd. turned its attention overseas, and exports have beensteadily on the rise.Over the years, the Company has received its share of accolades, including the NationalProductivity Councils Award (1990-91), and the Economic Times - Harvard BusinessSchool Association of India Award, against 200 contenders. The gross sales of HeroHonda by March end2008 was 33, 371, 43 Crores. TWO WHEELERS >> MOTORCYCLES Hero Honda Achiever Hero Honda CD Dawn Hero Honda CD Deluxe Hero Honda CD 100 Hero Honda CD 100 SS Hero Honda Glamour Hero Honda Splendor Hero Honda Glamour Splendor + Glamour Hero Honda Passion Plus Super
Splendor Glamour - FI Splendor NXG Hero Honda Sleek Hero Honda CBZ XTREME Hero Honda Karizma Hero Honda Hunk >> SCOOTERETTES/MOPEDS Hero Honda Pleasure Hero Ankur Hero Gizmo Hero Panther Hero Puch Automatic Hero Sakhti 3G Hero Stepmatic Hero Street Hero Winner Hero Stepmatic Hero Puch Automatic Hero Sakthi 3G Hero Winner Projectsformba.blogspot.com
23. Projectsformba.blogspot.com1.1.4 Hero Honda Models3. Honda Motorcycles & Scooters India Private LimitedEstablished in 1999, the Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) is a whollyowned subsidiary of Honda Motor Company Ltd., Japan and is located at Manesar,Haryana. The companys most well known brand is the Honda Activa that revolutionizedthe Indian scooterette market in terms of design and features. The company exportsscooters to the European Union. HONDA MOTORCYCLESMODEL CAPACITYHonda Shine 125 CCHonda Unicorn 149.1 CCHonda Stunner CBF 125 CCHonda CBF Stunner FI 124.7 CC HONDA SCOOTERSMODEL CAPACITYHonda Eterno 147.7 CC HONDA SCOOTERETTES/MOPEDSMODEL CAPACITYHonda Aviator 102 CCHonda Activa 102 CCHonda Dio 102 CC4. TVS MotorTVS Motor is a leading and trusted two wheeler companybegan with the vision of TVS Scooty the founder of theSundaram Clayton Group, the late T.S. Srinivasan - todesign, develop and produce an affordable moped for the Projectsformba.blogspot.com
24. Projectsformba.blogspot.comIndian family. This vision was realized in 1980 when TVS 50, Indias first two-seatermoped rolled out of the factory at Hosur in Tamil Nadu, Southern India.The company has been known for its ruggedness and reliability. TVS 50 was successfuland it has smoothened the way for many successes for TVS Suzuki even before itslaunch in the market. The TVS 50 XL is especially designed for individuals who wanteconomy fused with sporty looks. Recently new XL Super with a 70 cc high-tech PowerPack is all set to redefine the category of mopeds in the country. The Suzuki Samuraiwas launched for the time conscious urban commuter. The Max 100 R was engineeredfor those who demanded strength and ruggedness. Along with them all, Suzuki Shogunwas for those who wanted raw power.TVS Motor has continually worked on innovation of the motorcycle segment along withtwo wheeler range. The Suzuki Shaolin, developed by TVS Suzuki is Indias first 5-speed, 140 cc motorcycle. Another example of the company success is TVS Scooty, a60 cc Scooterette which keep one step ahead of its time in India.TVS Motor has been coveted 2 IT awards, one of them is bagging the SAP ACE 2008award for Customer Excellence and the other one is 2008 Symantec South AsiaVisionary Award. Along with this, it is the first company in the world to be honored withThe Deming Prize for Total Quality Management. In September 2008, the company hasgot 19% growth for registering total two wheeler sales of 137,246 units.The company is the third largest twowheeler manufacturer in India and ranks among thetop ten globally. The company was the first in India to launch 2-seater 50cc moped and100cc Indo-Japanese motorcycles. At present TVS Apache, TVS Victor, TVS Scooty,TVS Centra and TVS Fiero are the popular bikes in Indian market.In all, team TVS has triumphed each and every race and rally in the country from theroad to racetrack, with each of the TVS bikes being a winner. And each time the TeamTVS has won on the track
or off it; our customers have secured a better product for theirpersonal transportation.1.1.6 TVS models Projectsformba.blogspot.com
25. Projectsformba.blogspot.com TWO WHEELERS>> MOTORCYCLESSuzuki Hayabusa 1300 Suzuki Intruder M1800R Suzuki GS 150RTVS Apache RTR FI TVS Centra TVS Fiero TVS Fiero F2 TVS Fiero FXSuzuki Max 100 Suzuki Max 100R Suzuki SamuraiSuzuki Shogun Suzuki Shaolin TVS FlameTVS Victor TVS Star TVS Victor GLX TVS Star TVS Victor GX TVS Star City TVS Victor Edge>> SCOOTERETTES/MOPEDSTVS Scooty Streak TVS Scooty TVS XL TVS Scooty ES TVS XL Super TVS Scooty Pep TVS XL Super HD TVS Pep PlusTVS XL Super TVS XL Super HD Scooty Teenz ElectricTVS Apache RTR TVS Spectra DX/AX AWAITED MODELTVS Taurus Fiero F35. Royal Enfield Motors Ltd.Established in 1955, Royal Enfield was the brand of theEnfield Cycle Company. Royal Enfield is one the oldest Projectsformba.blogspot.com
26. Projectsformba.blogspot.combike on the road. The company is well known for producing motorcycles, but they alsoproduce bicycle, stationary engines, lawnmowers and rifle small parts for the RoyalSmall Arms Factory in Enfield. Royal Enfield Motors Ltd. has its headquarter situated atThiruvottiyur, Chennai, Tamil Nadu, India.In 1990, Royal Enfield entered into a strategic alliance with the Eicher Group, and latermerged with it in 1994. The annual turnover of the company is Rs.10 billion. The EicherGroup has a range of interests in the automotive industry, including small trucks,tractors, exports, automotive gears, management consultancy and cartography.The corporate philosophy of Royal Enfield Motors Ltd. is built around quality andunflinching loyalty to the customer, a few reasons why the legendary Bullet is not just abike but a motorcycling icon. The ruggedness and reliability of the bike is endorsed bythe army, the police, the paramilitary forces and over 500 institutions which form part ofthe die-hard customer base of the Bullet, dubbed the "Rajagadi", or royal vehicle.The innovative ideas of the Royal Enfield Eicher nexus are exhibited in the new line ofEnfield bikes and the global technological tie-ups.Royal Enfield has existing technical tie-ups with :- Criterion Engineers, UK for a new 5 speed transmission system.- DB Designs, UK for styling.- AVL, Austria for new engines.- FW Egli for high power engines for 535cc and 624cc.Royal Enfield Motors Ltd. operates out of 12 area offices, 16 depots, over 250 dealersand 150 authorized service centers in India. The company also exports its products toover 20 countries including Canada, France, Japan, USA, Germany and UK.1.1.7 Royal Enfield Model Projectsformba.blogspot.com
27. Projectsformba.blogspot.com TWO WHEELERS>> MOTORCYCLEBullet 350 Bullet 500 Enfield DieselBullet Deluxe Bullet Electra Bullet Machismo B ullet Electra Bullet Electra 5SBullet Machismo 500 Bullet Std 12V Lightning 500Taurus Thunderbird Twin sparkAt the end we can say that all the above are giving a very tight competition to INDIAYAMAHA MOTORS in India. To overcome these competitors YAMAHA is constantlydoing R & D about its product and market as well.We can classify these competitors into following groups according to their attributes andtheir competitive forces. Projectsformba.blogspot.com
28. Projectsformba.blogspot.com S PFULLY GROUP A EDIVERSIFIED C I High Mobility Barriers, Extensive A Distribution & Product L Diversification I S High Mobility Barriers, Time A & Investment required to T GROUP restore outdated products, I B build cult image O GROUP C N GROUP D Low Mobility Barriers InvestmentSPECIALISED in Brand Promotion PROMOTIONAL ACTIVITIES HIGH LOW SWOT ANALYSIS GROUP PLAYERS ATTRIBUTES COMPETITIVE FORCES A Bajaj, Hero Honda Highly diversified - High buyer power Aggressive High competitive rivalry promotion - High entry barriers B TVS Selectively diversified - Low entry barriers Aggressive - Narrow product lines imply Promotion that aggressive promotions can eat into market share C Honda, Yamaha Selectively diversified - High threat of substitution Moderate Promotion (Rs 1 lakh car) - Low entry barriers D Royal Enfield Highly specialized - Low buyer power high Low Promotion brand loyalty - Product diversification will imply risk of brand dilution Projectsformba.blogspot.com
29. Projectsformba.blogspot.com1.2 COMPANY PROFILEAbout India Yamaha Motor Pvt. Ltd.Yamaha made its initial foray into India in 1985. Subsequently, it entered into a 50:50joint venture with the Escorts Group in 1996. However, in August 2001, Yamahaacquired its remaining stake as well, bringing the Indian operations under its completecontrol as a 100% subsidiary of Yamaha Motor Co., Ltd, Japan.India Yamaha Motor operates from its state-of-the-art-manufacturing units at Faridabadin Haryana and Surajpur in Uttar Pradesh and produces motorcycles both for domesticand export markets. With a strong workforce of 2000 employees, India Yamaha Motor ishighly customer-driven and has a countrywide network of over 400 dealers.The company pioneered the volume bike segment with the launch of its 100 cc 2-strokemotorcycle RX 100. Since then, it has introduced an entire range of 2-stroke and 4-stroke bikes in India. Presently, its product portfolio includes Crux (100cc), Alba (106cc)and Gladiator (125cc).VISIONTo establish YAMAHA as the "exclusive & trusted brand" of customers by "creatingKando" (touching their hearts) - the first time and every time with world class products &services delivered by people having "passion for customers".MISSIONWe are committed to:Be the Exclusive & Trusted Brand renowned for marketing and manufacturing ofYAMAHA products, focusing on serving our customer where we can build long termrelationships by raising their lifestyle through performance excellence, proactive design& innovative technology. Our innovative solutions will always exceed the changingneeds of our customers and provide value added vehicles.Build the Winning Team with capabilities for success, thriving in a climate for action anddelivering results. Our employees are the most valuable assets and we intend to develop Projectsformba.blogspot.com
30. Projectsformba.blogspot.comthem to achieve international level of professionalism with progressive careerdevelopment. As a good corporate citizen, we will conduct our business ethically andsocially in a responsible manner with concerns for the environment.Grow through continuously innovating our business processes for creating value andknowledge across our customers thereby earning the loyalty of our partners & increasingour stakeholder value.CORE COMPETENCIESCustomer #1We put customers first in everything we do. We take decisions keeping the customer inmind.Challenging SpiritWe strive for excellence
in everything we do and in the quality of goods & services weprovide. We work hard to achieve what we commit & achieve results faster than ourcompetitors and we never give up.Team-workWe work cohesively with our colleagues as a multicultural team built on trust, respect,understanding & mutual co-operation. Everyones contribution is equally important forour success.Frank & Fair OrganizationWe are honest, sincere, open minded, fair & transparent in our dealings. We activelylisten to others and participate in healthy & frank discussions to achieve theorganizations goals.OVERVIEWFOUNDED: July 1, 1955 Projectsformba.blogspot.com
31. Projectsformba.blogspot.comCAPITAL: 48,302 million yen (as of March 31, 2008)PRESIDENT: Takashi KajikawaEMPLOYEES: 46,850 (as of December 31, 2007)PARENT: 9,019 (as of December 31, 2007)SALES: 1,756,707 million yen (from Jan 1, 2007 to Dec 31, 2007)PARENT: 799,209 million yen (from Jan 1, 2007 to Dec 31, 2007)SALES PROFILESales (%) by product category (consolidated)Sales (%) by region (consolidated)MAJOR PRODUCTS& SERVICES: Manufacture and sales of motorcycles, scooters, electro -hybrid bicycles, boats, sail boats, Water Vehicles, pools, utility boats, fishing boats, outboard motors, diesel engines, 4-wheel ATVs, side-by-side vehicles, racing karts, golf cars, multi-purpose engines, generators, water pumps, snowmobiles, smallsized snow throwers, automotive engines, intelligent machinery, industrial-use remote control helicopters, electrical power units for wheelchairs, helmets. Biotechnological production, processing and sales of agricultural and marine products and microorganisms. Import and sales of various types of products, development of tourist businesses and management of leisure, recreational facilities and related services. Projectsformba.blogspot.com
32. Projectsformba.blogspot.comHEADQUARTERS: 2500 Shingai, Iwata-shi, Shizuoka-ken, JapanCORPORATE PHILOSOPHYFor society, for the world Yamaha works to realizeour corporate mission of creating KandoYamaha Motor is a company that has worked ever since its founding to build productsdefined by the concepts of high-quality and high-performance and light weight andcompactness as we have continued to develop new technologies in the areas of smallengine technology and FRP processing technology as well as control and componenttechnologies.It can also be said that our corporate history has taken a path where people are thefundamental element and our product creation and other corporate activities havealways been aimed at touching peoples hearts. Our goal has always been to provideproducts that empower each and every customer and make their lives more fulfilling byoffering greater speed, greater mobility and greater potential.Said in another way, our aim is to bring people greater joy, happiness and create Kando*in their lives. As a company that makes the world its field and offers products for theland, the water, the snowfields and the sky, Yamaha Motor strives to be a company thatoffers new excitement and a more fulfilling life for people all over the world and to useour ingenuity and passion to realize peoples dreams and always be the ones they lookto for the next Kando. Projectsformba.blogspot.com
33. Projectsformba.blogspot.comWhat is Kando?Kando is a Japanese word for the simultaneous feeling of deep satisfaction and intenseexcitement that people experience when they encounter something of exceptional value.1.3 SWOT ANALYSIS Projectsformba.blogspot.com
34. Projectsformba.blogspot.comA scan of the internal and external environment is an important part of the strategicplanning process. Environmental factors internal to the firm usually can be classified asstrengths (S) or weaknesses (W), and those external to the firm can be classified asopportunities (O) or threats (T). Such an analysis of the strategic environment is referredto as a SWOT analysis.The SWOT analysis provides information that is helpful in matching the firms resourcesand capabilities to the competitive environment in which it operates. As such, it isinstrumental in strategy formulation and selection. The following diagram shows how aSWOT analysis fits into an environmental scan: SWOT Analysis Framework Environmental Scan / Internal Analysis External Analysis / / Strengths Weaknesses Opportunities Threats | SWOT Matrix Projectsformba.blogspot.com
35. Projectsformba.blogspot.com1.4 SWOT ANALYSIS FOR THE TWO WHEELER INDUSTRY Strength Established brands, Strong Brand Name Weaknesses Fuel efficient Style statement Extremely price sensitive Convenient in heavy traffic Short PLC Cheap and affordable High R and D costs Easy and cheap finance availability Patents Good reputation among customers Threats Opportunities The Rs.1 Lakh car Growing premium segment Cut throat competition Increasing dispensable income Increasing number of players in the Environmental concerns market Exports increasing Rising raw material costs Very strong demand in the 100cc. Increasing rates of interest on segment dominated by limited finance players. Projectsformba.blogspot.com
36. Projectsformba.blogspot.com1.5 SWOT ANALYSIS FOR INDIA YAMAHA MOTORS Strength Size and scale of parent company. Weaknesses Effective Advertising Capability Small showrooms. Committed and dedicated staff. Not much emphasis on aggressive High emphasis on R and D. selling. Experience in the market. Weak product diversity. Established brand. Established market channel. Power, Speed & Acceleration Opportunities Threats Growing premium segment. Cut throat competition Increasing number of players in the Global expansion into the Caribbean & Central America. market Expansion of ta rget market (include Rising raw material costs women). Increasing rates of interest on Increasing dispensable income. finance 1st mover advantage. Projectsformba.blogspot.com
37. Projectsformba.blogspot.com1.6 RECENT LAUNCHESYAMAHA FZ-SYamaha FZ-S 150cc, a recently launched bike by the industry giant Yamaha. After thegrand success of FZ-16 Yamaha has finally launched its modified version (FZ-S) inIndia. This fabulous bike is equipped with all the necessary features one may think of. Itstands ahead in style and performance not only in its segment but beyond. This bike isbest suited for those who want elegance and power in one. It is designed andengineered with the capacity for active and aggressive enjoyment of aroundtown streetriding and styling, bringing a sense of pride for the owner of the bike. It
is especiallydesigned to satiate riders desire for style and fashion. It is popularly referred as theStylish Macho Street Fighter (Lord of the Streets).The primary features of Yamaha FZ-S include: European international design Stainless steel body Aerodynamic muscular design High torque rate Carbon pattern meter console Latest graphics Projectsformba.blogspot.com
38. Projectsformba.blogspot.com Disk brakes Electric start starting system Electronic fuel injection systemYAMAHA YZF R15This is the latest offering from the Yamaha stable. The YZF R15 is the first truly sportsbike launched in India. The looks and design have been done keeping the bigger R1 inmind and hence the resemblance.The bike is priced at Rs.97,500 (ex-showroom) across India. It boasts of the first liquidcooled 4 valve engine in the two wheeler category which gives it better performance andpower. It is a 150cc bike having enough power to bring chills to the rider when he revsup the accelerator.BAJAJ PULSAR DTS FI 220 CCBajaj auto has upgraded the Pulsar family with the launch of its high-end bike PulsarDTS-Fi 220 cc. This advanced variant of popular Pulsar combines new features andadvanced technology. This all new version of Pulsar is priced at Rs.70, 000 (ex-showroom Delhi).The 2009 edition of Bajaj Pulsar comes without fuel injection technology but yet it willproduce more power at 21PS. The new Bajaj Pulsar DTS Fi 220 cc will reach the topspeed of more than 140 kmph. This two wheeler from Indias second largest two-wheeler Projectsformba.blogspot.com
39. Projectsformba.blogspot.commanufacturer comes with single cylinder 4 stroke air cooled engine. This motorcycle hasa maximum power of 21.04 @ 8500rpm and maximum torque of 19.12@7500 rpm.Bajaj Pulsar DTS-Fi 220cc will be available in all contemporary black themes as well ascan be availed in 4 different colors. The recently launched Bajaj Pulsar DTS Fi-220 ccreflects a major difference from other Pulsar bikes launched by the automaker. Thischange is the downgrading of Pulsar model from Fuel Injection to carburetion.The all new Bajaj Pulsar DTS-Fi 220cc is loaded with features like engine oil cooler, splitseats, clip-on handle bar, auto choke and fuel & battery charge indicators. This newversion of Pulsar makes the use of temperature based ignition mapping. This kind ofmapping helps to optimize the ignition timing in order to achieve good start ability,outstanding torque as well as quick warm up.The different features to look out for in Bajaj Pulsar DTS Fi include rear and front discbrakes. In fact, this is the first bike in India that comes with both types of brakes. Sincethis motorcycle is designed to offer a thrilling riding experience it is also packed withvaried safety features for smooth running. According to the reviews of this advancedversion of Pulsar, this bike in India is sure to give competition to motorcycles of otherbrands. Projectsformba.blogspot.com
40. Projectsformba.blogspot.comHONDA CBF STUNNER FIGeared with PGM-FI technology, Honda CBF Stunner FI has made its way in India. Thenew version of CBF Stunner sports bike from Honda Motorcycle and scootersIndia Pvt. Ltd. (HMSI) was launched and targeted for the youth in the country. Thissports bike from Honda Motorcycles is priced at around Rs. 66,200 (ex-showroom,Bangalore) and Rs. 64,630 (ex-showroom, Delhi). Projectsformba.blogspot.com
41. Projectsformba.blogspot.comAn ultimate desire for every youth, Honda CBF Stunner PGM FI comes equipped withsuperior technology and stunning performance. Powered with a 4-stroke, air cooled OHCsingle cylinder engine, this two wheeler is offered with digital ignition. The new HondaCBF Stunner FI is believed to develop 11bhp at 8000 rpm and 11 nm torque at 6500rpm. The motorbike re-defines style with amazing features like a stepped-up seat, halffairing, front and rear tubeless tires, alloy wheels for a comfortable riding experience.Honda CBF Stunner PGM FI 125 cc gives a top speed of 65kmph in 5.2 seconds. Theeco- consciousness of the company HMSI, that is the wholly-owned two-wheelersubsidiary of Japan-based Honda motor Company, is also evident from the PGM-FItechnology used in this sports bike. The PGM-Fi (Programmed Fuel Injection) technologyof the two wheeler would keep emission level as low as 1/10 of BS II Norm.The all new CBF Stunner PGM-FI has maintenance free battery and viscous air filter thatpromises less maintenance. Cumulated with PGM-FI technology, this version of HondaStunner is believed to reach out to the youngsters and give them a heart racingexperience.Key Highlights:- PGM-FI (Programmed Fuel Injection) Technology 125cc Air-Cooled Four-Stroke Self-Start Engine Dual Tone Styling Sporty Half-Chain Case Bank Angle Sensor Premium 3-D Emblem Handle Weight Premium Key Stepped-up Seat Half Fairing Front and Rear Tubeless Tires Alloy Wheels Projectsformba.blogspot.com
42. Projectsformba.blogspot.comTHUNDERBIRD TWINSPARKLaunched in year 2008, Thunderbird Twinspark is one of the most stylish bike intendedfor those who want and wish to be on top of the world. It is the first model that leadsRoyal Enfield revolutionary Unit Construction Engine.The Royal Enfield Thunderbird Twinspark is the perfect example of unfolding mix of oldand new. Its 346 cc engine, 4 stroke single cylinder air-cooled engine delivers maximumpower of 19.8 bhp @ 5250 rpm capacity ensuring its smooth performance and constantvacuum (CV) carburetor assure its simple start. Delighting customers, this bike isabsolute comfort statement for the passenger as well as rider. This bike is like a must-have for every rider and it is hard to beat in terms of pure riding pleasure and visualdelight.Special Features:Incorporated with all latest and advanced features, this bike includes: Ergonomically designed high density foam seats Rear gas filled shock absorber Heat shield on silencer Bigger CV carburetor BS-29 Electric starter Projectsformba.blogspot.com
43. Projectsformba.blogspot.com Electronic flasher Multi focal reflector 280mm disc-front brake and 150mm drum-rear brake Engine Single cylinder, 4 Stroke, OHV, Dual spark ignition engine, aircooled Power and Torque - 19.8 bhp @ 5250 rpm/28 Nm @ 4000 rpm Fuel tank capacity 15.51LitersSUZUKI HAYABUSA 1300Price range: Rs 1,248k to 1,252kSuzuki Hayabusa 1300 is the world fastest production bike, the ultimate choice andpreference of all bike lovers.Features:Some special characteristics of Suzuki Hayabusa 1300 are : Projectsformba.blogspot.com
44. Projectsformba.blogspot.com Steering damper Engine mode indicator Vertically stacked headlight LED taillight Radial mount TOKICO front brake caliperColors:Some special characteristics of Suzuki Hayabusa 1300 are : Solid black/ Metallic majestic gold Pearl nebular black/ Metallic ph antom
graySpecifications: Engine capacity - 1340 cm2 (cc) Fuel Tank - 21.0 litres (5.5 US gallons) Type - 4-stroke, 4-cylinder, liquid-cooled, DOHC Compression ratio 12.5:1SUZUKI GS 150RPrice range: Rs 57k to 62kAlso known for its attractive appeal, Suzuki GS 150R is styled with inspiration fromSuzuki international super bike GSX-R. Equipped with engine balancer technology, thisbike is designed with a high acceleration performance in low to mid range speed, i.e.very important for city driving. Projectsformba.blogspot.com
45. Projectsformba.blogspot.comColors: Candy max orange Pearl nebular black gray Metallic flint grey Candy dark greenish blueFeatures:Equipped with certain unique features like : 150cc engine with new design Digital speedometer with dual modes Majestic and stronger fuel tank Integrated rear turn signal Rear suspension with separate reservoir tankSpecifications: Curb mass - 149 kgs Type - Four-stroke, Air-cooled,SOHC Displacement - 149.5 cm3 (cc) Max Power - 13.8bhp@8500rpm Max Torque - 13.4Nm@6000rpm Compression ratio 9.35/1TVS APACHE RTR FI 160Aiming to strengthen its presence in the premium segment, countrys third largest two-wheeler maker TVS Motor Company on Monday launched an advanced version of itsbike Apache fitted with fuel injection engine, priced at Rs 64,990.The new bike Apache RTR FI would come with an 160 cc fuel injected engineTVS APACHE RTR FI is the first bike from its stable to feature innovative Fuel Injectiontechnology. By launching the apache RTR FI TVS will bring the its ultimate racingexperience to the streets. According to TVS, the new apache RTR FI offers instant thrill Projectsformba.blogspot.com
46. Projectsformba.blogspot.comand superior performance of a fuel injected 160cc engine. The 160cc FI mill cranks out15.1bhp at 8500 rpm and 13.1Nm at 6500rpm. The figures are not much different forcarbureted apache RTR. However, the power delivery will be progressive and therefinement can be felt while driving. TVS claims the top speed of the new apache RTRFuel Injection (FI) as 120kmph. Also because of the improved combustion the emissionswill be minimal in the new apache RTR Fuel Injection (FI).Another novel feature in thenew apache RTR Fuel Injection (FI) is the rear disc brake. This new feature will givebetter control over this beast..1.7 FUTURE LAUNCHESYAMAHA R125The most advanced 125 production super sportmachine that Yamaha will launch in 2009 will be Projectsformba.blogspot.com
47. Projectsformba.blogspot.comYZF-R125. This radical, high-revving, fuel-injected 125 is the work of the sameengineers who created our legendary YZF-R1 and YZFR6 super sport bikes.Main Features of Yamaha R125:-Liquid-cooled single-cylinder 4-stroke-SOHC 4-valve cylinder head-Wet-sump lubrication system-Fuel injectionElectric start-6-speed transmission-R6-style mid-ship muffler-Dual catalysers-Air Induction systemExpected In: July, 2009YAMAHA R6What you will feel when you on Yamahas new R6 aquick progress, not rapid, beneath 70 mph in top,however erst over the legal limit insignificant sixtakes off as if a scolded cat without so a lot of as adown shift. Drop to moment at this speed and youwill find yourself looking at the sky as everythingdisappears behind you at an alarming rate and it willbe interesting to see what the six will do in thequarter mile.ENGINE SPECIFICATIONSDisplacement: 599ccEngine: 4-stroke, 4-cylinder, 16-valves,
D0HCMaximum Power: 127 Bhp @ 14500 rpmMaximum Torque: 65.8 Nm @ 11000 rpmGears: 6 Manual Projectsformba.blogspot.com
48. Projectsformba.blogspot.comDIMENSIONSLength: 2040.00 mmWidth: 705.00 mmHeight: 1100.00 mmWeight: 185.00 kgGround Clearance: 130.00 mmFuel Tank: 17.30 ltrsWheelbase: 1380.00 mmWheel Type: AlloysExpected In : July, 2009YAMAHA GLADIATOR 165Yamahas 165cc Gladiator will develop around 16.5PS and complete a 0 60 sprints in less than 5seconds and it believed that Yamaha has alreadysent the bike for homologation and will launch its midNext Year. Bike was first displayed in last years AutoExpo.ENGINE SPECIFICATIONSDisplacement: 165ccEngine: Air-cooled, 4-stroke, SOHC, 2valveMaximum Power: 15 Bhp (Expected)Maximum Torque: 14 Nm ( Expected)Gears: 5 SpeedDIMENSIONSLength: 2065.00 mmWidth: 730.00 mmHeight: 1100.00 mmGround Clearance: 155.00 mmFuel Tank: 13.00 ltrs Projectsformba.blogspot.com
49. Projectsformba.blogspot.comWheelbase: 1300.00 mmExpected In : July, 2009TVS APACHE RTR MENACE 180180cc version of flagship product apache RTR will beseen on road by mid 2009. Codenamed as themenace, the new apache RTR 180cc would comewith few cosmetic upgrades. But whats moreexciting will be the new powerful 180cc engine.TVS announced earlier that it would introduce theABS (Anti-lock Braking System) in its forthcoming powerful bikes. However the newapache RTR 180cc menace will not have ABS as it will push up the price. The proposed200cc version of apache RTR might come with ABS.ENGINE SPECIFICATIONSDisplacement: 180ccEngine: 4 Stroke, EFiMaximum Power: 18bhpGears: 5 SpeedDIMENSIONSLength: 2020.00 mmWidth: 730.00 mmHeight: 1100.00 mmWeight: 130.00 kgGround Clearance: 180.00 mmFuel Tank: 16.00 ltrsWheelbase: 1300.00 mmOTHER SPECIFICATIONS Projectsformba.blogspot.com
50. Projectsformba.blogspot.comTop Speed: 135kphFuel Consumption (City): 28.00Fuel Consumption (Highway): 42.00Expected In: July, 2009HONDA CBR 150 RAfter successfully accepted in Malaysian market. It isspeculated that Honda may bring its CBR 150R inIndia by 2009 in competition with Karizma & R15competitor and may price of CBR150 will be belowone lakh.The Honda CBR150R is powered by a 149.4cc 4-stroke carbureted single cylinder 4 valve DOHC engine with 11.0:1 compression andCDI ignition, mated to a 6-speed wet clutch manual transmission. It produces 18.5 Bhpat 10500 rpm and 13.5 Nm of torque at 8500 rpm.Main Features of Honda CBR150R:- DOHV 4-valve 150 cc water-cooled engine with balancer shaft.- 6-speed return manual transmission.- Front and rear disc brakes.Key slot cover for better protection against theft.- Monoshock rear shock absorber.Secondary Air Supply System (SASS) which delivers extra air to the exhaust systemfor cleaner emission.- Catalytic Converter.Expected In: July, 2009HONDA INTERCEPTORThe hunger of Indian sports bikers will be satisfiedwith the Honda Interceptor 800cc. Honda VFR 800Interceptor is a Sports Touring Motorcycle i.e. it is Projectsformba.blogspot.com
51. Projectsformba.blogspot.commeant for the highways with a relaxed and comfortable seating position, unlike theSports bikes that we currently see on the road. Its sleek, aerodynamic bodywork isfunction al yet beautiful and air flowing through the windscreens central air vent providescool air to the rider at low speeds and increases rider comfort at higher speeds byoffering real protection from high velocity winds. Expected In: July, 2009HONDA CBR 1000 RRThe history-making CBR900RR Fire bladecompletely rewrote the book of Super Sportmotorcycle design with a remarkably compact andlightweight configuration based on a Less Is Moreconcept that achieved a breathtaking blast of litre -class performance from a 900cc inline-4 engineshoehorned into a highly advanced 600cc-classchassis.The Honda CBR1000RR Fire blade is a Moto GP race replica with many of its featurestaken from Hondas top-end racing bikes. The result is a high-performance track andracing superbike that also makes for a perfect street bike.Expected In: July, 2009KAWASAKI NINJA 250 RMade its debut on 1986 Kawasaki Ninja after along wait will soon be in India by 2009. The Ninja250R features a six-speed transmission that hasbeen revised for smoother shifting, and is mated to amore durable clutch. An entirely new radiatorprovides better cooling while being lighter in weight.A new radiator fan is quieter.Its expected price in India will be around 1.3 Lacs Projectsformba.blogspot.com
52. Projectsformba.blogspot.comExpected In: July, 2009SUZUKI GSX-R 1000Suzuki GSX-R 1000 offers something different whencompare to other bike in same segment amongst theusual selling points of superb handling, class leadingperformance it offers switchable ECU maps.With switchable ECU fuel mapping you can switch tolow performance for easy handling in traffic, fueleconomy and when riding with cruisers, medium forfaster rides with the 600cc and full power for the track and Hayabusa owners.Expected In: July, 2009HONDA CBR600RRInspired by the Honda RC211V MotoGP theCBR600RR receives the "RR" designation for "racereplica" because of its emphasis on racingcharacteristics such as an advanced bracedswingarm, center-up exhaust system, and moreaggressive riding position.Features Of Honda CBR600 RR:1) Exciting new colors: Red/Black, Pearl Orange/Black, Metallic Silver, and Graffiti2) Exclusive, MotoGP derived Unit Pro-Link Rear Suspension3) Dual Stage Fuel Injection System (PGM - DSFI) features two injectors per cylinder.4) MotoGP-derived Honda Electronic Steering Damper (HESD).5) High-revving engine redlines at 15,000 rpm.6) MotoGP-style center-up exhaust system. Projectsformba.blogspot.com
53. Projectsformba.blogspot.com7) Radial-mount front brake calipers combined with radial actuated master cylinder.8) 41mm Honda Multi-Action System (HMAS) inverted front fork.9) Centrally located fuel tank increases mass centralization for a more compact framedesign.10) Line beam headlights feature three-piece multireflector design.Expected In: October, 2009KAWASAKI NINJA ZX-14Kawasaki Ninja ZX-14 is created to do everythingright. Right from the beginning. Its aerodynamicsreminds users that Kawasaki is indeed an aircraftmaker. The Kawasaki Ninja ZX-14 is based aroundKawasaki motorcycles 1352cc four-stroke engine.It is an advanced version of Kawasakis uniquealuminum monologue frame, lightweight and verystrong.Expected In: November, 2009 Projectsformba.blogspot.com
54. Projectsformba.blogspot.com Chapter 2.0 CRITICAL REVIEW OF LITERATURE Projectsformba.blogspot.com
55. Projectsformba.blogspot.com 2.0 CRITICAL REVIEW OF LITERATUREConsumer buyer behavior refers to the buying behavior of final consumers individualsand households who buy goods and services for personal consumption. (Philip Kotler)To understand the buyer, and to create a customer out of him, through thisunderstanding, is the purpose of buyer behavior. (Ramaswamy and Namakumari)It needs to be specified at the outset that there is no unified, tested and universallyestablished theory of buyer behavior. What is available today, are certain ideas of buyerbehavior.FACTORS INFLUENCING BUYER BEHAVIOURA number of factors influence buyer behavior. They can be grouped under three broadcategories. 1. Factors that are part of buyer as an individual. 2. Buyers social environment (group influence). 3. Information from a variety of sources.1. Factors that are part of the Buyer as an individualAn individuals religion and cultural background, his personality traits, self concept, hisgeneral endowments, his upbringing in short, his overall biodata play a crucial role in Projectsformba.blogspot.com
56. Projectsformba.blogspot.comhis conduct as a buyer/consumer. These factors can be grouped broadly into threecategories: i. Personal factors ii. Cultural factors iii. Psychological factorsI. Personal Factors Age, Education, Economic Position, Self conceptAn individuals age, level of education, his occupation, overall economic position andlifestyle all influence his role as a buyer. They decide what products he will buy andconsume. A persons self concept and his concern about his about status also influencehis buying decisions. In fact today people are very concerned about their image andstatus in society. Its a direct outcome of their material prosperity. Status is announcedthrough various symbols like dress, ornaments, possessions and general lifestyle. Thedesire for self expression and self advancement is closely linked with social status. Forseveral people, status is a major motive force guiding and shaping their life. Theirconcept of status decides what material possessions they should have. Even if a productthat constitutes a status symbol is beyond their immediate reach, their aspiration topossess it will influence their decision making process.ii. Cultural Factors Religion, Language etc.Every culture, every language and every religion group dictates its own unique patternsof social conduct. Within each religion, there may be several sects and sub sects; theremay be orthodox groups and cosmopolitan groups. In dress, food habits or marriage inalmost all matters of individual life religion and culture exercise an influence on theindividual, though the intensity may vary from society to society. The dos and dontslisted out by religion and culture impacts the individuals lifestyle and buying behavior.iii.Psychological Factors Beliefs, Attitudes, Motivation, PerceptionJust like the economic and social conditions, a mans disposition too has a close bearingon his purchase decisions. Individuals coming under the same economic and social Projectsformba.blogspot.com
57. Projectsformba.blogspot.comgroups can be vastly different when it comes to certain personal beliefs, faith andattitudes. One may be timid and plain, while another may be outgoing and aggressive.One may be traditional in the overall view
of life, while another may be modern. Onemay be east innovative, while another may welcome anything new. In fact, the maximumvariations are seen here and in the matter of analysis and assessment too, this areaposes maximum problem to the marketer.2. Buyers Social Environment (group influence)The buyer living in a society is influenced by it and is in turn influencing its course ofdevelopment. He is a member of several organizations and groups, both formal andinformal. He belongs to a family, he works for a certain firm, he may be a member of aprofessional forum, he may belong to a particular political group, or a cultural body.There is constant interaction between the individual and the groups to which he belongs.And all these interactions leave some imprint on him, which influences him in his day today life and consequently, his buying behavior.There are two broad types of group influences: i. Influence of intimate group. ii. Influence of the broad social class.I. Influence of Intimate GroupExamples of intimate groups are family, friends, close colleagues and closely knitorganizations. These groups exercise a strong influence on the lifestyles and the buyingbehavior of its members. Among these groups the most influential and primary groupsare the family and peer groups. The peer groups are closely knit groups composed ofindividuals, who have a common social background and who normally belong to thesame age group. The peer group has the greatest influence on the individual member asa stabilizer of styles and behavior patterns.In any intimate group, there is likely to be an informal group leader. Te group respectshim and looks up to him. Though the leader may not directly influence every member inhis day to day purchases, his judgment on men and matters, and facts and fashion isrespected by the group; and his views and lifestyle influences their buying decisions. Heis normally the innovator in the group, who first tries new products and new ideas, andthen, he becomes the propagator of those products and ideas. These opinion leaders orinfluencers play a key role in marketing. Marketers often try to reach these leaders first Projectsformba.blogspot.com
58. Projectsformba.blogspot.comthrough advertisements and other means of communication. And if the leaders areconvinced, their groups are likely to follow suit.ii. Influence of the Broad Social ClassStructurally, the social class is a larger group than the intimate groups. The constitutionof a social class is decided by the income, occupation, place of residence, etc. of theindividual members. The members of a social class enjoy more or less the same statusor prestige in the community. They share a common lifestyle and behaviour pattern. Andthey normally select a product or brand that caters to their class norms. Often they evendo their shopping in the same shopping are and patronize selected shops, which befittheir class image. This does not mean that all the members of a given social class willbuy the same products and the same brands or conform to the same style, amounting toa sort of regimentation. Differential liking may exist among the members. But, in a buyingsituation in which objective standard are not available to guide them, they may conformto the class norms. Studies have shown that the extent of influence the social class hason its members will depend on the extent of attractiveness of the group holds out tothem. The greater the attractiveness, the larger is the behavioral conformity.Study of group influence on the individual buying behaviour will help the marketers todevelop right strategies for different customer segments. It is not feasible for them toappeal to the fancies of every individual
buyer. They can find commonalities or patternamong specific groups of buyers and work on them.iii. Information from various sourcesThe buyer today is exposed to a veritable flood of information, unleashed on him fromdifferent sources. These sources inform him about new products and services, improvedversions of existing products, new uses for existing products and so on. The informationsources that persuade people to try a product include: advertising, samples and trials,display in shops and salesmens suggestions.Each of these sources provides some information to the buyer about the products. Whenthe buyer sees an advertisement for a product, he is informed about the existence of theproducts. Later on, he may develop a positive or negative attitude towards the product orhe may remain neutral. In any case, a piece of information about the product is madeavailable to him and it has some influence on his buying behavior. Projectsformba.blogspot.com
59. Projectsformba.blogspot.comThe availability of the product in the shop itself acts as an information source to te buyer.The buyer may evince an interest in the product and may inquire about it. The productadvertises itself.Often salesmen serve as a source of information to buyers. The salesmen may informthe prospects about a product, explain its advantages and may even suggest a trialpurchase. In cases where a rapport has already been established between the buyerand the salesman, the latters suggestions are normally taken as reliable. THE BUYING PROCESS1. Problem Recognition Projectsformba.blogspot.com
60. Projectsformba.blogspot.com The process of buying normally starts with the recognition of a need by the consumer. He recognizes a problem and develops a perception of the problem. Then he seeks information for solving his problem.2. Awareness The customer turns to his environment /world of information around him. It makes him aware of the existence of the product that would solve his problem.3. Comprehension (Evaluation) Comprehension comes out of his ability to reason with the information. The awareness and comprehension stages represent the information processing stage. These two stages constitute the cognitive field of the purchase process.4. Attitude It is the sum total of the individuals faith and feelings towards a product. As a result of his awareness and comprehension, the consumer develops an attitude favorable or unfavorable towards the product. The purchase process will continue only if he develops a favorable attitude or a liking for the product.5. Legitimization The buyer must be convinces that the purchase of the product is he legitimate course of action. This stage often stands as a barrier between a favorable attitude towards the product and actual purchase. Only if the buyer is convinced about the correctness of the purchase decision, will he proceed. At this stage, he may seek further information regarding the product, or attempt to assess the information already available. Attitude and legitimization constitute the attitude field of he purchase process.6. Trial Conviction leads the consumer to try the product on a small scale ; he may buy a sample. He tries to evaluate the product from his own experience.7. Adoption A successful trial leads him to buy/adopt the product. Trial and Adoption constitute the behavioral field in the buying process.8. Post-Purchase Behavior The purchase leads to a specific post purchase behavior. Usually, it creates some restless ness in the mind of the
individual. He is not sure about the product. He may feel that the other brand would have been better. He may even feel that the Projectsformba.blogspot.com
61. Projectsformba.blogspot.com salesman has taken him for a ride. As this dissonance is uncomfortable, the individual, by himself will seek all means to recover his conviction and poise. He well seed reassuring advertisements of the products or he may deliberately avoid positive stories about the competing brand. THE YAMAHA STRATEGY IN INDIAYamaha has shifted its focus from the lower end segments to the premium segment ofbikes. It aims to provide its customers the full range of its engineering marvels that makeYamaha the company that it is. Yamaha has a very strong focus on the technicaldepartment, the result of which can be seen with Yamaha comfortably leading theconstructors championship in the Superbikes racing with Valentino Rossi and ColinEdwards as their riders.Yamaha has aimed to become the No.1 in customer satisfaction and is looking forwardto providing the customer with an experience with its products.The target market of India Yamaha Motors is the young and enthusiastic 18-25 yr. oldswho are willing to try taking the not so much treaded path of buying the sports bikerather than a utility two wheeler. These young guns are very conscious of the stylequotient and look forward to their ride being a personality statement.With the increasing dispensable income in India and growing middle and upper middleclass segment Yamaha is sure to find many prospective customers. With news of Indiabecoming the breeding ground for millionaires Yamaha has certainly identified anopportunity and has grabbed it hands down.THE 4 PS FOR INDIA YAMAHA MOTORSProduct: India Yamaha Motors has recently launched its sports bike R15 and FZS in the150cc. The bikes in the premium segment include MT01 and YZF R1. Yamaha isbringing its latest technologies to India and aims to come up with a new product for theIndian market every quarter. Projectsformba.blogspot.com
62. Projectsformba.blogspot.comThe reliability and riding quality of a Yamaha have already been established through itsearlier products.Price: The Yamaha range of products has been very competitively priced and the pricesof its premium segment bikes MT01 and YZF R1 are priced much below any present orprospective competitor in the segment at Rs.10.5 lacs.Its other products like the R15 has also been priced optimally looking at thespecifications of the bike. The bike despite being only 150 cc provides around 22 BHP ofpower, more than any other bike in the 150-220cc. bracket. The bike has also broughtthe liquid cooled engine technology to India and other features like the styling etc. arealso quite new for the Indian market and hence considering what it gives you it is abargain at Rs.97,500.Promotion: Yamaha has been constantly loosing market share over the last few yearsand has thus decided to change its brand image with change in its market strategy. Thecompany now wants to be known for its style and speed. It looks to be known as asports bike manufacturer and not as an economy bike segment player.Taking these factors into consideration the company has started a complete makeoverof its image. The recent R15 and FZS ads on numerous channels on TV and other adson both electronic and print media vindicate the point.The company has also opened Yamaha bike stations which are company ownedshowrooms and completely symbolize the brand image that Yamaha wants to achieve inIndia.Place: India Yamaha Motors has adopted a two tier marketing
channel consisting of thePrimary dealers at tier1 and the secondary dealers or retailers at tier2. In addition tothese two tiers there are also the company owned showrooms and the multibrandoutlets. Projectsformba.blogspot.com
63. Projectsformba.blogspot.com CHAPTER 3.0 HYPOTHESES Projectsformba.blogspot.com
64. Projectsformba.blogspot.com3.0 HYPOTHESESH0 = Yamahas new launch of FZ & FZS has changed customers perception regardingchoice of bikes.H1 = Yamaha new launch of FZ & FZS has not changed customers perception regardingchoice of bikes.H0 = Yamaha has regained its image in India after the launch of FZ & FZS.H1 = Yamaha has not regained its image in India after the launch of FZ & FZS.H0 = There is a significant relationship between income group and the choice of featuresthey value most in a two wheeler.H1= There is no significant relationship between income group and the choice of featuresthey value most in a two wheeler.H0 = There is a significant relationship between income group and the 1st informationsource for the people.H1= There is no significant relationship between income group and the 1st informationsource for the people.H0 = There is a significant relationship between age group and the choice of featuresthey value most in a two wheeler.H1= There is no significant relationship between age group and the choice of featuresthey value most in a two wheeler.H0 = There is a significant relationship between age group and the 1st information sourcefor the people.H1= There is no significant relationship between age group and the 1st information sourcefor the people. Projectsformba.blogspot.com
65. Projectsformba.blogspot.com CHAPTER 4.0 EXECUTIVE SUMMARY Projectsformba.blogspot.com
66. Projectsformba.blogspot.com 4.01 EXECUTIVE SUMMARYThis research is a hypothesized study which was conducted to measure the CustomerSatisfaction Level from the Yamahas new products such as YAMAHA FZ & YAMAHAFZS; this research was conducted in the East UP region. This research was done duringthe months of June and July2009.Hence the data displayed has been collected duringthe before mentioned period.To meet the research objectives, following activities have been performed.1. An extensive search of relevant literature from news articles, internet, books. This step guided the development of the methods and instruments for collecting data.2. Designing the questionnaire.3. Survey has been carried away by telephone, one-on-one interviews; The Survey included both quantitative, forced-choice or close ended questions and qualitative, open-ended questions.4. Analysis was done on the basis of the information.During this research it was found that Yamahas new launched bikes(FZ & FZS) hasincreased its market share by attracting new customers and helped to retain its oldcustomers which they have lost in she past after the ban of RX100 in India. FZ & FZSare awarded as a BIKE OF THE YEAR. India Yamaha Motors, a company that is knownfor combining technology, quality and performance in their bikes, had taken an initiativeto introduce some of their performance driven bikes in India last year and are nowreporting an impressive growth of 48% in sales during April 2009 having sold 15120units as compared to 10199 units in April last year. With their product line-up
being theFZ-16, FZ-S and the R15, India Yamaha Motors is also providing their customers with Projectsformba.blogspot.com
67. Projectsformba.blogspot.comDifferent experiences with their various programs such as allowing the customers todrive their bikes on a race track.It is also seen that Yamaha is focusing on the Premium segment of bikes which is slatedto welcome new players. Yamaha would have to constantly innovate and come up withnew products to maintain its dominance in the segment. Projectsformba.blogspot.com
68. Projectsformba.blogspot.com Chapter 5.0 RESEARCH DESIGN5.1 Data Source5.2 Research Approach5.3 Objectives5.4 Research Design5.5 Sample Design5.6 Scope of Study5.7 Limitations of the study Projectsformba.blogspot.com
69. Projectsformba.blogspot.com5.0 RESEARCH METHODOLOGYThe report has been prepared on the basis of information collected fromdifferent sources. In order to achieve the objective of the project properresearch method was applied.. After giving through brain storming session,objectives were selected and the set on the base of these objectives, Aquestionnaire was designed major emphasis of which was gathering newideas or insight so as to determine and bind out solution to the problems.5.1 DATA COLLECTION SOURCEResearch included gathering both primary and secondary data. :PRIMARY DATA - Primary Data was very crucial to collect so as to knowvarious past & present consumer views about bikes and to calculate themarket share of this brand in regards to other brands. Fresh primary datawas collected by taking direct feed back from customer which involved faceto face interview with the customer as well as through telephonic interviewwith the customer , all the FZ customer who visited the dealershipshowroom for the service of their bikes were questioned in order to find outthe customer satisfaction level.SECONDARY DATA- are those which has been collected by some one elseand which already have been passed through statistical process. Secondarydata has been taken from internet, newspaper, magazines and companiesweb sites.5.2 RESEARCH APPROACHSURVEY METHOD: The research approach used was survey method whichis a widely used method for data collection and best suited for descriptivetype of research survey includes research instrument like questionnairewhich can be structured and unstructured. Target population is wellidentified and various methods like personal interviews and telephoneinterviews are employed. Projectsformba.blogspot.com
70. Projectsformba.blogspot.com5.3 OBJECTIVES To know the customers perception regarding launch of new bikes FZ & FZS by Yamaha. To determine the customers satisfaction regarding bikes and after sales service. To determine the factors influencing the choice of customers regarding bi kes To know the market scenario of second hand bike industry.5.4 RESEARCH DESIGNThis study is a mix of explorative and formal methodologies adopting monitoring andobserving to study the dealerships in Lakhimpur and communication to elicit responsesfrom customers. This is a cross sectional study done during the months of June andJuly.For the customer satisfaction study a questionnaire was formulated containing 17 closedended questions which were sent out for response through the
internet and mainlythrough personal interviews of customers at Yamaha dealerships. This data was lateranalyzed using SPSS through performing the cross-tabulations on various involvedvariables. Results of this step formed the basis of the recommendations given to thecompany. Projectsformba.blogspot.com
71. Projectsformba.blogspot.comTo know the Yamaha reputation and sales promotion in motorcycle market, censusmethod was chosen and all the dealership were individually visited in the area ofLakhimpur, Mosaram Auto Sales(Hero Honda), I did a market survey by taking openinterviews to the dealers and brokers of the market.5.5 SAMPLE DESIGNFor the sales promotion study a census methodology was adopted and all thedealerships and brokers of that region were visited.For the customer satisfaction study a sample of 100 persons was chosen from theYamahas dealership in Lakhimpur. The sample was judgmental and methodology wasnon probability samplingSize of Sample 100Sampling technique Judgmental (Non Probabilistic Sampling)Location from which samples were taken Lakhimpur5.6 SCOPE OF THE STUDYThis study is aimed at providing India Yamaha Motors with an insight into the success ofFZ & FZS as well as the customers response and awareness towards the brand,products and services of Yamaha.The data has been analyzed and presented in a simple and precise way on the basis ofwhich pertinent recommendations have been made to the company to better theservices, policies and strategies of the company in India. Projectsformba.blogspot.com
72. Projectsformba.blogspot.com5.7 LIMITATIONS OF THE STUDY This research is geographically restricted to Lakhimpur only. Hence the result cannot be extrapolated to other places. The study is restricted only to the organized sector of two wheeler industry The seriousness of the respondents and their ability to justify their answers may also be a limitation. The sample size is small due to the specified reasons. Findings are based on sample survey. All interview questions are undisguised or direct. Hence there is a scope for the respondents to be biased or pretentious. Projectsformba.blogspot.com
73. Projectsformba.blogspot.com Chapter 6.0 Data6.0 DATA Projectsformba.blogspot.com 74. Projectsformba.blogspot.comPRIMARY DATAIn order to find out customer satisfaction & Perception regarding newly launched bikesof Yamaha Primary Data was collected by personally visiting the dealerships andshowrooms. With the help of a questionnaire we took the feedback from the FZScustomers who were coming for the services of their bikes at the dealerships. As well aswe contacted some of the customers through telecalling by taking the data about thecustomers from the customer data register of the dealership We interviewed them anddiscussed with the showroom staff as well as with the employees at Yamaha whichhelped us to prepare our research Report .SECONDARY DATAThe Secondary Data collection involved internet search, browsing magazines,newspapers and articles and papers related to the two wheeler industry in India.Numerous Journals and books related to the topic were also browsed to understand thedynamics of the industry. Projectsformba.blogspot.com
75. Projectsformba.blogspot.com Chapter 7.0 FINDINGS AND ANALYSIS7.1 RESULTS OF CUSTOMER SURVEY7.2 HYPOTHESES TESTS 7.1 RESULTS OF THE CUSTOMER SURVEY Projectsformba.blogspot.com
76. Projectsformba.blogspot.com 7.1.1: The Age distribution in the sample.ANALYSIS: 7.1.1: Following points can be referred from the above pie chart The above pie chart is showing that the customers of FZS are mainly coming from the age group of 16-25 that is around 69%, as Yamaha claims that they generally target their customers who are between the age group of 18 to 25, because that people of this age group are passionate and are style freaks, So we can say that Popularity of Yamaha is available in the age of 26-30 (around 20%) also because of its reputation in the world market. Projectsformba.blogspot.com
77. Projectsformba.blogspot.com 7.1.2: The Marital status distribution in the sample. Analysis: 7.1.2: In this pie chart it is very much clear that 76% of the Yamahascustomer is mainly the youth who are single, so Yamahas new launch FZS is mostlybeing accepted by the singles instead of family oriented people. Projectsformba.blogspot.com
78. Projectsformba.blogspot.com 7.1.3: The Occupation distribution in the sample.Analysis: 7.1.3: Once again we found that Yamahas major customers are the students ofcolleges and schools which consists 43%, as they want something special, new, stylish,masculine and attractive and Yamaha is providing that in the form of FZS. Projectsformba.blogspot.com
79. Projectsformba.blogspot.com 7.1.4: The Income groups distribution in the sample.Analysis: 7.1.4: In the income group distribution we can analyze that customers of FZSare coming from the Middle income group people which is around 73% by including10001-40000 slab of income group. It shows that Yamaha is placing their products in theappropriate price range. As the people of this income bracket can easily afford this Bike. Projectsformba.blogspot.com
80. Projectsformba.blogspot.com 7.1.5: The Way of purchasing distribution in the sample.Analysis: 7.1.5: Here again we can prove that the products of Yamaha are in theacceptable price range, as we can see that purchasing way of the customers are leading inthe CASH sector. Customers are easily affording the price of FZS; they are not feelingmuch problem with the amount of FZS.Todays customers are ready to pay for betterfacilities and technology and they feel that FZS deserves that price which YAMAHA isoffering. Projectsformba.blogspot.com
81. Projectsformba.blogspot.com 7.1.6: The Financing distribution in the sample. Analysis: 7.1.6: In this pie chart a very important thing can be referred thatIndian Youths are not so much independent in the financial matters, still they depends onthe family, as Yamaha claims that they target the people of 18-25 age group, but here wecan say that they should promote such kind of advertisements where the Yamahaproducts can link to the family. Ultimately family is paying the amount so Yamahashould target according to family also, so that the view of the children and familyshouldnt clash. Projectsformba.blogspot.com
82. Projectsformba.blogspot.com 7.1.7: Compared brands with FZS. Analysis: 7.1.7: Majority of people is not comparing Yamaha FZS to any otherproduct and the number of such people is around 39%,But the second view which we have found that FZS is getting a very tough competitionFr BAJAJ & HERO HONDA. BAJAJ has launched their new edition of Pulsar 220 at avery low price (around 70000 ex showroom price), which is the reason for the toughcompetition giving by BAJAJ. On the other hand HERO HONDA HUNK is also givingdirect fight to the FZS because of its MILEAGE only. There are some more competitorswhich are stable at their market share in automobile industry. Projectsformba.blogspot.com
83. Projectsformba.blogspot.com 7.1.8: The choice of Feature which is most important in a bike.Analysis: 7.1.8: If we see the trend of Two wheeler industry we found that earlier peoplewere looking mainly towards the mileage of the vehicle but now In our research wecollected data and found that now customers perception has changed and they areshifting towards the style, design & riding comfort of the vehicle,54% customers have purchased FZS because of its Style & Design and only 2% peopleare looking for the mileage. So in a way we can say they Yamaha exactly changed the perception of Indiancustomers. They are trying to attract customers with new style, design or look of the bikeand creating passion in the customers for the speed and power. So through this we have proved our First hypothesis which was regarding the Yamahasnew launch of FZ & FZS that has changed the customers perception regarding choice ofbikes. Projectsformba.blogspot.com
84. Projectsformba.blogspot.com 7.1.9: 1st Information sources and their shares Analysis: 7.1.9: As we can see here the major promotional tool which isinfluencing the customers is TVCF which stands for Television Commercial, which isaround 45%, after that the major source of awareness among customers, isFamily/Friends. Magazine and newspaper consists only 9% in our research, but if welook them at a very good sample size then it is around 2% only. So here we can say that Yamaha should produce better advertisements like FZSand they should link their ads with the emotions of the customers so that the brandrecognition by the customers will be for long time. The customers can still recall thepunch lines of Bajaj and Hero Honda such as HAMARA BAJAJ or HERO HONDADESH KI DHADKAN. YAMAHA should also use such kind of heart loving lines. Projectsformba.blogspot.com
85. Projectsformba.blogspot.com 7.1.10: Customer Perception regarding Yamaha Image after FZSAnalysis: 6.1.10: This is a good result for Yamaha that once again they are creating placein the heart of the customers, after the discontinue of RX100 Yamaha has lost very bigamount of customers in the last 10 years, but after the launching of FZS, Yamaha hasimproved their image among the customers.Our data is showing that 98% people are admitting that Yamaha has improved theirimage after the FZS and R15 launch, feedback which we have got from the customerswere like that Yamaha has produced something new this time and very stylish and welldesigned product..With Yamahas continued thrust on technology, quality and manufacturing excellenceand introduction of Global Yamaha standards in its operations, the customers haveexperienced the real Yamaha and have come closer to the brand.By this we are again proving our second HYPOTHESIS that
YAMAHA has regained itsimage after the launch of FZ & FZS. Projectsformba.blogspot.com
86. Projectsformba.blogspot.com 7.1.11: Comments for FZS by Potential Customers.Analysis: 7.1.11: This year Yamaha FZS has got the BIKE OF THE YEAR AWARDwhich shows its popularity among the customers. It has fulfilled the desire and demand ofthe current customers, there are very few people who still need some improvements in theFZS but Yamaha is taking care of those customers also. As our data is showing that 78%people are giving good comments or responses for Yamaha, they are feeling that FZS isthe most stylish and trendy bike in these days, 2% people are feels that spare parts ofYamaha FZS are very costly and 16% people are complaining for the mileage of the bike,therefore Yamaha should work on these loopholes of the bike so that they can attractsome more customers. Projectsformba.blogspot.com
87. Projectsformba.blogspot.com7.2 HYPOTHESES TESTSHYPOTHESIS IH0 = Yamahas new launch of FZ & FZS has changed customers perception regardingchoice of bikes.H1 = Yamaha new launch of FZ & FZS has not changed customers perception regardingchoice of bikes. PURCHASING REASONS Cumulative Frequency Percent Valid Percent PercentValid STYLE/DESIGN 54 54.0 54.0 54.0 CONTOLLABILITY 7 7.0 7.0 61.0 PICK UP 8 8.0 8.0 69.0 REPUTATION OF 6 6.0 6.0 75.0 MAKER RIDING COMFORT 12 12.0 12.0 87.0 NEW TECHNOLOGY 8 8.0 8.0 95.0 DURABILITY 1 1.0 1.0 96.0 OTHERS 2 2.0 2.0 98.0 MILEAGE 2 2.0 2.0 100.0 Total 100 100.0 100.0 Projectsformba.blogspot.com
88. Projectsformba.blogspot.comOBSERVATIONWhen we analyze the above Bar Diagram we can clearly find out that now a dayscustomer are not looking for mileage at all, they are going for style and design, so byconducting this survey we have found that after the launch of Yamaha FZS people aregiving second thought to mileage which was first in the previous days.So the above chart is ACCEPTING our NULL HYPOTHESIS and REJECTING ourALTERNATE HYPOTHESIS.As it is very clear by looking up the BAR DIAGRAM so there is no need for any othertest.HYPOTHESIS II Projectsformba.blogspot.com
89. Projectsformba.blogspot.comH0 = Yamaha has regained its image in India after the launch of FZ & FZS.H1 = Yamaha has not regained its image in India after the launch of FZ & FZS. YAMAHA IMPROVED Cumulative Frequency Percent Valid Percent PercentValid YES 98 98.0 98.0 98.0 NO 2 2.0 2.0 100.0 Total 100 100.0 100.0OBSERVATIONHere again we can see clearly that 98% of total sample size are accepting that YAMAHAhas regained its image after the launch of FZ & FZS .There are only 2% people who are Projectsformba.blogspot.com
90. Projectsformba.blogspot.comstill feeling that YAMAHA is not up to the mark. so this observation is also proving true toour NULL HYPOTHESIS and REJECTING the ALTERNATE HYPOTHESIS.HYPOTHESIS IIIH0 = There is a significant relationship between income group and the choice of featuresthey value most in a two wheeler.H1= There is no significant relationship between income group and the
choice of featuresthey value most in a two wheeler. Case Processing Summary Cases Valid Missing Total N Percent N Percent N PercentMONTHLY 100 100.0% 0 .0% 100 100.0%HOUSEHOLD INCOME* PURCHASINGREASONS Projectsformba.blogspot.com
91. MONTHLY HOUSEHOLD INCOME * PURCHASING REASONS Cross tabulation PURCHASING REASONS PICK UP OF REPUTATION MILEAGE NEW TECHNOLOGY RIDING COMFORT DESIGNSTYLE/ CONTROLLABILITY DURABILITY OTHERS TOTAL Projectsformba.blogspot.com MAKERMONTHLY HOUSEHOLD INCOME UPTO 10000 Count 8 1 2 2 4 0 0 0 0 17 % within 47.1% 5.9% 11.8 11.8% 23.5 .0% .0% .0% .0% 100. MONTHLY % % 0% HOUSEH OLD INCOME % within 14.8% 14.3 25.0 33.3% 33.3 .0% .0% .0% .0% 17.0 PURCHAS % % % % ING REASONS % of Total 8.0% 1.0% 2.0% 2.0% 4.0% .0% .0% .0% .0% 17.0 % 1000 Count 18 2 3 0 2 4 1 1 2 33 1-20 % within 54.5% 6.1% 9.1% .0% 6.1% 12.1 3.0% 3.0% 6.1% 100. 000 MONTHLY % 0% HOUSEH OLD INCOME % within 33.3% 28.6 37.5 .0% 16.7 50.0 100. 50.0 100.0 33.0 PURCHAS % % % % 0% % % % ING REASONS % of Total 18.0% 2.0% 3.0% .0% 2.0% 4.0% 1.0% 1.0% 2.0% 33.0 % 2000 Count 24 4 3 2 5 1 0 1 0 40 1-40 % within 60.0% 10.0 7.5% 5.0% 12.5 2.5% .0% 2.5% .0% 100. Projectsformba.blogspot.com 000 MONTHLY % % 0% HOUSEH OLD INCOME
92. Projectsformba.blogspot.com Chi-Square Tests Asymp. Sig. Value df (2-sided) Pearson Chi-Square 31.685a 32 .482 Likelihood Ratio 33.007 32 .418 Linear-byLinear .006 1 .936 Association N of Valid Cases 100 a. 42 cells (93.3%) have expected count less than 5. The minimum expected count is .01. Symmetric Measures Asymp. Std. Value Errora Approx. Tb Approx. Sig.Interval by Pearsons R -.008 .092 -.080 .936cIntervalOrdinal by Spearman -.016 .100 -.154 .878cOrdinal CorrelationN of Valid Cases 100a. Not assuming the null hypothesis.b. Using the asymptotic standard error assuming the null hypothesis.c. Based on normal approximation. Projectsformba.blogspot.com
93. Projectsformba.blogspot.comOBSERVATION: 1: 60% of the people in the 20001-40000 income group opt for styleand 54.5% in 1000020000.OBSERVATION: 2: Style/Design & riding comfort are the two most significant factors forpeople.OBSERVATION: 3: Chi square test has an asymptotic significance greater than 0.1hence there is no significant relationship between the variables, hence H0 is rejected.HYPOTHESIS IVH0 = There is a significant relationship between income group and the 1st informationsource for the people. Projectsformba.blogspot.com
94. Projectsformba.blogspot.comH1= There is no significant relationship between income group and the 1st informationsource for the people. Case Processing Summary Cases Valid Missing Total N Percent N Percent N PercentMONTHLY 100 100.0% 0 .0% 100 100.0%HOUSEHOLD INCOME* SOURCE OFAWARENESS Projectsformba.blogspot.com
95. MONTHLY HOUSEHOLD INCOME * SOURCE OF AWARENESS Cross tabulation SOURCE OF AWARENESS Total FRIENDSFAMILY/ SHOWROOM
WEBSITE/BLOGS MAGAZINE TVCF NEWSPAPER AUTOEXPO ROADSHOW/TES OTHERS Projectsformba.blogspot.com TRIDEMONTHLY HOUSEHOLD INCOME UPT Count 5 4 1 3 3 0 1 0 0 17 O % within 29.4 23.5 5.9% 17.6 17.6% .0% 5.9% .0% .0% 100.0 100 MONTHL % % % % 00 Y HOUSE HOLD INCOME % within 11.1 16.7 20.0% 25.0 60.0% .0% 33.3% .0% .0% 17.0% SOURC % % % E OF AWARE NESS % of 5.0 4.0% 1.0% 3.0 3.0% .0% 1.0% .0% .0% 17.0% Total % % 100 Count 16 8 1 3 1 2 1 1 0 33 01-2 % within 48.5 24.2 3.0% 9.1 3.0% 6.1% 3.0% 3.0% .0% 100.0 000 MONTHL % % % % 0 Y HOUSE HOLD INCOME % within 35.6 33.3 20.0% 25.0 20.0% 50.0% 33.3% 100.0 .0% 33.0% SOURC % % % % E OF AWARE NESS % of 16.0 8.0% 1.0% 3.0 1.0% 2.0% 1.0% 1.0% .0% 33.0% Total % % 200 Count 20 11 3 4 1 0 0 0 1 40 01-4 % within 50.0 27.5 7.5% 10.0 2.5% .0% .0% .0% 2.5% 100.0 000 MONTHL % % % % 0 Y HOUSE HOLD Projectsformba.blogspot.com INCOME % within 44.4 45.8 60.0% 33.3 20.0% .0% .0% .0% 100. 40.0% SOURC % % % 0% E OF
96. Projectsformba.blogspot.com Chi-Square Tests Asymp. Sig. (2- Value df sided) Pearson Chi-Square 30.288a 32 .553 Likelihood Ratio 28.748 32 .632 Linear-byLinear .274 1 .601 Association N of Valid Cases 100 a. 40 cells (88.9%) have expected count less than 5. The minimum expected count is .01.OBSERVATION: 1: The 10001-20000 & 20001-40000 income group mainly usesadvertisements as their primary information source. 50% in both groups are relying onthe Advertisement as a source of awareness for any new launch or any other informationregarding two wheelers.OBSERVATION: 2: Advertisements and Friends together constitute 69% of the total. Projectsformba.blogspot.com
97. Projectsformba.blogspot.comOBSERVATION: 3: We can see that through newspaper and magazine we are notpassing our product details to the customers easily, reason behind this can be that weare not positioning our ADs in the right area. So once again we should do the TargetingPositioning and segmenting our customers for our product advertisement in newspaper.OBSERVATION: 4: Chi square test has an asymptotic significance greater than 0.1hence there is no significant relationship between the variables, hence H0 is rejected.HYPOTHESIS VH0 = There is a significant relationship between age group and the choice of featuresthey value most in a two wheeler.H1= There is no significant relationship between age group and the choice of featuresthey value most in a two wheeler. Case Processing Summary Cases Valid Missing Total N Percent N Percent N PercentPURCHASING 100 100.0% 0 .0% 100 100.0%REASONS * AGE Projectsformba.blogspot.com
98. Projectsformba.blogspot.com PURCHASING REASONS * AGE Cross tabulation AGE Above 16-20 21-25 26-30 30 Total STYLE/DESIGN Count 17 20 13 4 54 % within PURCHASING 31.5% 37.0% 24.1% 7.4% 100.0% REASONS % within AGE 60.7% 48.8% 65.0% 36.4% 54.0% % of Total 17.0% 20.0% 13.0% 4.0% 54.0% CONTROLLABILI Count 3 3 0 1 7 TY % within PURCHASING 42.9% 42.9% .0% 14.3% 100.0% REASONS % within AGE 10.7% 7.3% .0% 9.1% 7.0% % of Total 3.0% 3.0% .0% 1.0% 7.0% PICK UP Count 2 4 1 1 8 % within PURCHASING 25.0% 50.0% 12.5% 12.5% 100.0% REASONS % within AGE 7.1% 9.8% 5.0% 9.1% 8.0% % of Total 2.0% 4.0% 1.0% 1.0% 8.0% REPUTATION OF
Count 0 4 0 2 6 MAKER % within PURCHASING .0% 66.7% .0% 33.3% 100.0% REASONS % within AGE .0% 9.8% .0% 18.2% 6.0% % of Total .0% 4.0% .0% 2.0% 6.0%PURCHASING REASONS RIDING Count 3 5 2 2 12 COMFORT % within PURCHASING 25.0% 41.7% 16.7% 16.7% 100.0% REASONS % within AGE 10.7% 12.2% 10.0% 18.2% 12.0% % of Total 3.0% 5.0% 2.0% 2.0% 12.0% NEW Count 1 4 3 0 8 TECHNOLOGY % within PURCHASING 12.5% 50.0% 37.5% .0% 100.0% REASONS % within AGE 3.6% 9.8% 15.0% .0% 8.0% % of Total 1.0% 4.0% 3.0% .0% 8.0% DURABILITY Count 1 0 0 0 1 % within PURCHASING 100.0 .0% .0% .0% 100.0% REASONS % Projectsformba.blogspot.com
99. Projectsformba.blogspot.com Chi-Square Tests Asymp. Sig. Value df (2-sided) Pearson Chi-Square 22.567a 24 .545 Likelihood Ratio 26.816 24 .313 Linear-byLinear .917 1 .338 Association N of Valid Cases 100 a. 32 cells (88.9%) have expected count less than 5. The minimum expected count is .11. Symmetric Measures Asymp. Std. Value Errora Approx. Tb Approx. Sig.Interval by Pearsons R .096 .102 .957 .341cIntervalOrdinal by Spearman .084 .100 .838 .404cOrdinal CorrelationN of Valid Cases 100a. Not assuming the null hypothesis.b. Using the asymptotic standard error assuming the null hypothesis.c. Based on normal approximation. Projectsformba.blogspot.com
100. Projectsformba.blogspot.comOBSERVATION: 1: Around 61% of people in the 21-25 years age group and 75% of26-30 years age group opt for style, design and riding comfort. So we can say there isno combination with age and choice of feature of bike.OBSERVATION: 2: Only 2% people are demanding for Mileage so by this somewherethis result is also proving our null hypothesis of first hypothesis true that Yamaha haschanged the perception of customers now a days.OBSERVATION: 3: Chi square test has an asymptotic significance greater than 0.1hence there is no significant relationship between the variables, hence H0 is rejected.HYPOTHESIS VIH0 = There is a significant relationship between age group and the 1st information sourcefor the people.H1= There is no significant relationship between age group and the 1st information sourcefor the people. Projectsformba.blogspot.com
101. Projectsformba.blogspot.com Projectsformba.blogspot.com 102. Projectsformba.blogspot.com SOURCE OF AWARENESS * AGE Cross tabulation AGE Above 16-20 21-25 26-30 30 Total TVCF Count 10 16 14 5 45 % within 22.2% 35.6% 31.1% 11.1% 100.0 SOURCE OF % AWARENESS % within AGE 35.7% 39.0% 70.0% 45.5% 45.0% % of Total 10.0% 16.0% 14.0% 5.0% 45.0% FAMILY/FRIENDS Count 7 8 4 5 24 % within 29.2% 33.3% 16.7% 20.8% 100.0 SOURCE OF % AWARENESS % within AGE 25.0% 19.5% 20.0% 45.5% 24.0% % of Total 7.0% 8.0% 4.0% 5.0% 24.0% ROADSHOW/TESTRI Count 1 4 0 0 5 DE % within 20.0% 80.0% .0% .0% 100.0 SOURCE OF % AWARENESS % within AGE 3.6% 9.8% .0% .0% 5.0% % of Total 1.0% 4.0% .0% .0% 5.0% SHOWROOM Count 1 8 2 1 12 % within 8.3% 66.7% 16.7% 8.3% 100.0 SOURCE OF % AWARENESS % within AGE 3.6% 19.5% 10.0% 9.1% 12.0%SOURCE OF AWARENESS % of Total 1.0% 8.0% 2.0% 1.0% 12.0% MAGAZINE Count 4 1 0 0
5 % within 80.0% 20.0% .0% .0% 100.0 SOURCE OF % AWARENESS % within AGE 14.3% 2.4% .0% .0% 5.0% % of Total 4.0% 1.0% .0% .0% 5.0% NEWSPAPER Count 3 1 0 0 4 % within 75.0% 25.0% .0% .0% 100.0 SOURCE OF % AWARENESS % Projectsformba.blogspot.com 2.4% within AGE 10.7% .0% .0% 4.0%
103. Projectsformba.blogspot.com Chi-Square Tests Value df Asymp. Sig. (2sided) Pearson Chi-Square 30.503a 24 .169 Likelihood Ratio 32.730 24 .110 Linear-by-Linear 7.581 1 .006 Association N of Valid Cases 100 a. 31 cells (86.1%) have expected count less than 5. The minimum expected count is .11. Projectsformba.blogspot.com
104. Projectsformba.blogspot.comOBSERVATION: 1: Around 60% of people in the 16-20 years age group and 55% in21-25 age groups have TVCF and friends as their primary information source.OBSERVATION: 2: TVCF & Family/friends are the major source of info in every group.OBSERVATION: 3: Chi square test has an asymptotic significance greater than 0.1hence there is no significant relationship between the variables, hence H0 is rejectedTo make my analysis easier I divided the bikes in 4 different segments1. PREMIUM SEGMENT2. DELUXE SEGMENT3. EXECUTIVE SEGMENT4. ENTRY SEGMENTHere we are doing the analysis of every segment one by one.1. PREMIUM SEGMENT Projectsformba.blogspot.com
In the premium segm105. Projectsformba.blogspot.com 2009 2008 Ex- % resaleCompany Model showroom value 09 2007 priceYamaha R15 97,425 82.11 80,000 75,000 _____HHML CBZ 57,450 69.62 40,000 34,000 27,000HHML Karizma 72,800 68.68 50,000 45,000 40,000Bajaj Pulsar 81,567 _____ _____ ______ _____ 220 __ _ ent we have taken Yamaha R15, Hero Hondas KARIZMA and CBZ and BAJAJs PULSAR 200. The resale value of R15 is highest in premium segment and is at 82.11%. Reason - Performance - Quality of product High level of SatisfactionSo we can say that in the premium segment bikes YAMAHA is leading in second handtwo wheeler markets.2. DELUXE SEGMENT Projectsformba.blogspot.com
106. Projectsformba.blogspot.comCompany Model Ex- price % resale2009 2008 2007 valueYamaha FZ - S 67,000 N.A N.A N.AYamaha FZ 16 65,000 93.84 61,000 57,000Bajaj Pulsar 180 63,653 86.40 55000 46,000 40,000HHML Hunk 56,175 87.22 49,000 46,000Bajaj Pulsar 150 60,143 88.12 53000 38k-44k 30,000TVS Apache RTR 60,825 88.77 54000 40,000 36,000Honda unicorn 55,954 71.48 40,000 29,000 25,000 In this segment also YAMAHA is leading with 93.84% of resale value. Dealers and brokers were giving good response for the YAMAHA FZ 16, they were saying customer is satisfy with its all facilities, everybody is appreciating for its style, design and macho look. In the Deluxe segment TVS APACHE & HMSI Unicorn is less preferred by costumer as well as Broker 3. EXECUTIVE SEGMENT Projectsformba.blogspot.com HHML Hunk is also preferable in this segment. Models FZ were available low in number. Yamaha is leading in deluxe segment. HUNK as well PULSAR 150 is giving close fight to YAMAHA FZ16.
107. Projectsformba.blogspot.comCompany Model Ex- % 2009 2008 2007 price resale valueYamaha Glad ss 52,100 71.51 38,000 30,000 26,000Yamaha Glad rs 52,600 72.24 38,000 30,000 26,000HHMl Super 44,450 94.48 42,000 38,000 splendorTVS Flame 48,550 86.50 42,000 34,000Bajaj Discover 50,145 40,000 35,000 1354 .ENTRY SEGMENTCompany Model Ex Price %resale 2009 2008 2007 valueBajaj Platina 35,196 78.13 27,500 25,000 22,000 100TVS Star 39,060 64.00 25,000 22,000 20,000Yamaha Alba 43,890 63.79 28,000 23,000 18,000HHML Splendor + 38,250 83.66 32,000 26,000 22,000 Projectsformba.blogspot.com
108. Projectsformba.blogspot.comHHML Passion 41,750 83.83 35,000 28,000 24,000Hero Honda is leading in entry and executive segmentReasons- Reliability perception of the customer- Brand Image and loyalty- Focus of company on these segmentsIn this segment Hero Honda is leader because they have established themselves as avery good established brand, customers and they are loyal to each other, company isvery much target oriented in this segment. CHAPTER 8.0 RECOMMENDATION Projectsformba.blogspot.com
109. Projectsformba.blogspot.com 8.0 RECOMMENDATIONS SHOULD IMPROVE THE AFTER SALE SERVICES: During the survey we found that Yamaha is not satisfying their customers in after sales services, employees at dealership sometimes use harsh words and become rude to the customers, parts of the bike are not easily available in the market. This is the major drawback in capturing the market share so Yamaha should take some better steps to satisfy and retain their customers. WEAK FOLLOW UP FROM DEALERSHIPS: We observed during the course of our studies that Yamaha was quite weak in following up with prospective customers. There was no communication from Yamaha showrooms asking the customers if and when they are willing to buy their bikes. Hero Honda, Bajaj and Honda showrooms were extremely attentive in this regard and perform maximum follow up on prospective customers. Projectsformba.blogspot.com
110. Projectsformba.blogspot.com MEASURES SHOULD BE TAKEN TO IMPROVE ITS DEALERSHIP: Yamaha which is trying to build a brand new image of a high tech and stylish brand of sports bikes should take appropriate steps to show it in their showrooms. Showrooms like Oswal Yamaha, and Shiva Yamaha were very small in size and do not reflect the quality and scale of Yamaha in the market. Shiva motors was very dirty ambience and customer will feel that company is not working good thats why they are not taking any actions toward their showrooms and this will definitely hamper the sales, so Yamaha should take care of these things. POOR PROMOTIONAL CAMPAGIN: The Yamaha ads seen on electronic and print media are absolutely out of touch with the Indian culture and thought process. If we see that Bajaj and Hero Honda has produced a very good link with the Indian family and customers can easily recall their Ads by well know punch lines like HAMARA BAJAJ or HERO HONDA DESH KI DHADKAN-DHAK DHAK. Yamaha is also focusing on this as we can see the AD of YAMAHA ALBA. An Indian consumer irrespective of their income level has a soft corner for traditions and culture of India. Hence, all companies including market leaders like Hero
Honda and Bajaj capitalize on this behavior of customers and design their ad campaigns keeping India in mind. YOUTH ORIENTED PROMOTION: Yamaha claims that they target the customers of age group 18-25 but their ad never represents this so they should make such kind of AD where youth should taken in as centre of attraction. They should do this earliest to capture the market because vast majority of people depending on ads and friends as their chief sources of information about the products. AGGRESSIVE SELLING: The Company should follow an aggressive selling concept. A non-aggressive selling concept which is clearly visible in its advertising campaign which does not hit on the customer rather aims to provide information in a subtle manner. These days they have hit on the right target as we can prove through our survey that people who purchased YAMAHA FZS, 54% people have seen the TVCF of Yamaha before purchasing the bike. Emotional advertising which is the norm in India and which is very successful is not followed. INDIAN BRAND AMBASSADOR: The Companys brand ambassador is VALENTINO ROSSY earlier we had JOHN ABRAHAM too but now YAMAHA does Projectsformba.blogspot.com
111. Projectsformba.blogspot.com not have any Indian brand ambassador as compared to its competitors like Hero Honda who have Hrithik Roshan doing their ads and M.S. Dhoni doing the job for TVS. It is necessary for Yamaha to have a brand ambassador from India to connect with the Indian customer. VARIETY IS NEEDED TO BE PROVIDED: Yamaha at the moment has a very weak product portfolio and its products are not that visible in the market or displays in dealerships except the Gladiator and now R15. The lack of product range visibility in dealerships and in the media and advertisements is adversely affecting the brand of Yamaha. If a customer want to switch from one bike to another Yamaha is not providing them options so here Yamaha should work to maintain their loyal customers. Yamaha should maintain and produce the bikes in quarterly or half yearly so that customers can avail options. BRAND EXPOSURE SHOULD BE INCREASED OR TO TAP THE NICHES : There is a large market of unsatisfied customers in India. This effort would be in the direction to capture the unsatisfied customers and who are willing to change their brands on bike replacement. FOCUSSED ADVERTISEMENT ON PRODUCT USP: The maximum demand among customers constituting the target market of India Yamaha Motors is for the power and style features of bikes. Hence, the company should produce products keeping the above factors in mind. Projectsformba.blogspot.com
112. Projectsformba.blogspot.com LIMITATIONS OF THIS SURVEY1. Specific to Lakhimpur and Unnao2. Prices may vary depending upon Bike condition.3. Bike available in stock was pushed by the brokers/dealers Projectsformba.blogspot.com
113. Projectsformba.blogspot.com CHAPTER 9.0 BIBLIOGRAPHY & REFERENCES Projectsformba.blogspot.com
114. Projectsformba.blogspot.com9.1 BIBLIOGRAPHY 1) Phillip Kotler; Principles of marketing, 7th Edition; Pearson Publication. 2) Saxena and Rajan; Marketing Management; Tata McGraw Hill; 3rd Edition 3) Ramaswami, V.S. and Namakumari, S.; Marketing Management; Macmillan India; 2002. 4) Batra Satish & Kazmi SHH ;
Consumer behaviour text & cases; 1999. 5) Gupta, S.P. and Gupta, M.P.; Business Statistics; 14th Edition; Sultan Chand Publications. 6) Robert W and Boockholdt, James L.; Factors Leading To change in consumer behavior: A Study of Managers Perspectives; Creativity Research Journal, 11(4), Page No. 245-307; 1998. Projectsformba.blogspot.com
115. Projectsformba.blogspot.com9.2 REFERENCES 1. The Yamaha India website; www.yamaha-motor-india.com 2. Overview of performance of the Indian Automobile Industry http://www.siamindia.com/scripts/IndustryStatistics.aspx 3. Overview of economy of automobile industry website seen on 26th June http://www.iloveindia.com/economy-of-india/automobile-industry.html 4. Overview On BAJAJ AUTO, website seen on 6th July http://auto.indiamart.com/bajaj-auto/ 5. Overview On HERO HONDA, website seen on 6th July http://auto.indiamart.com/hero-honda/ 6. Overview On HONDA, website seen on 6th July http://auto.indiamart.com/two-wheelers/hmsil.html 7. Overview On TVS SUZUKI, website seen on 6th July http://auto.indiamart.com/tvs-suzuki/ 8. Overview On ROYAL ENFIELD, website seen on 6th July http://auto.indiamart.com/motorcycles/thunderbird 9. Overview of Recent Launches of different brands, website seen on 7 July http://auto.indiamart.com/motorcycles/bajaj-pulsar-dts-fi220/ http://auto.indiamart.com/motorcycles/yamaha-fzs/ http://auto.indiamart.com/motorcycles/honda-cbf-stunner-fi/index.html http://auto.indiamart.com/motorcycles/suzuki-hayabusa-1300/ http://auto.indiamart.com/motorcycles/suzuki-gs-150r/ 10. Upcoming bikes in India, seen on 6th July http://www.indiamarks.com/guide/Upcoming-Bikes-in-India-in2009/10179 Projectsformba.blogspot.com
116. Projectsformba.blogspot.com11. Overview of Total Turnover, seen on 6th July http://www.siamindia.com/scripts/gross-turnover.aspx12. Overview of Domestic market share, seen on 6th July http://www.siamindia.com/scripts/marketshare.aspx13. Overview of Production Trend of automobile industry http://www.siamindia.com/scripts/production-trend.aspx Projectsformba.blogspot.com
117. Projectsformba.blogspot.com CHAPTER 10.0 ANNEXURES 10.1 QUESTIONNAIRE Projectsformba.blogspot.com 118. Projectsformba.blogspot.com10.1 SAMPLE QUESTIONNAIRE QUESTIONNAIRE (For FZ customers)Contact- Place: Model: cc: Date of purchase:1. Name: 2. Age:3. Marital status: a) married b) single4. What is your occupation? a) Student b) Office employee c) Factory employee d) Shop owner e) Business Person f) Other: ________5. Monthly household income: a) Up to Rs.10,000 b) Rs.10,001-20,000 c) Rs.20,001-40,000 d)Rs.40,001-60,000 e) Rs.60, 001-80,000 f) Rs.80, 001-100,000 g) Above Rs. 100,0006. How did you buy the MC? a) Cash b) Loan [D/P: ]7. Who paid for your MC? a) Self b) Family c) Others:8. Did you considered other motorcycle while buying this model? a) Yes b) No9. Which model did you compare with? Model: cc:10. Have you seen FZ 16 TVCF? a) Yes b) No11. Have you seen FZ 16 newspaper advertisement? a) Yes b)
No12. Have you seen FZ 16 magazine advertisement? a) Yes b) No13. Do you take information from internet blogs? a) Yes b) No Which blog?14. What was the reason you finally purchased your Bike? a) Style/design b) Mileage c) Resale value d) Reputation of maker e) Riding comfort f) Pick up g) Controllability h) new technology i) Maneuverability j) Riding position k) Quality l) Color/ graphics m) Big vehicle size n) Durability o) Price p) Low maintenance Projectsformba.blogspot.com
119. Projectsformba.blogspot.com q) After sales support r) others: _______15. Please specify your source of awareness for your Bike? a) TVCF b) Newspaper c) Magazine d) Showroom e) Family/Friends f) Mall display g) Road show/Test ride h) Website/Blogs i) Radio j) Hoardings k) Auto expo l) TV news m) Others_______16. Do you think Yamaha has improved after FZS and R15? a) Yes b) No17. How does your friend say to your Motor Cycle? a) Trendy b) Macho c) Stylish d) Low Mileage e) After sales service f) Poor Resale value g) Expensive spare parts h) Others______ Projectsformba.blogspot.com
120. Projectsformba.blogspot.comCASE STUDY ON YAMAHA Issues Projectsformba.blogspot.com
121. Projectsformba.blogspot.comFrom this case study following points can be studied : Motorcycle industry in India (various players operating in it). Various Problems faced by a Multinational organization while operating in an other country. How in an organization Japanese culture was successfully implemented in place of Indian culture after the failure of a joint venture. Various strategic moves adopted by an organization to breakthrough the competition or to consolidate its position in to Indian marketOverview of the automobile industry the bike segment(Reasons behind the Growth of Motorcycle industry in India) Projectsformba.blogspot.com
122. Projectsformba.blogspot.comBikes or two wheelers in India cater to various needs of the consumers. With the choiceof the Indians improving from bicycles to two wheelers, the Indian two-wheeler markethas seen a significant growth over the years. Now owing a bike has become a must formost Indians. Even if people own a car they prefer to have a bike as it is veryeconomical and fuel efficient. With the growth in the economy the demand for twowheelers is increasing over the years. It is one of the most dynamic industries today andwith the increasing competition companies are bringing in new products withsophisticated technologies and innovative features to capture a major pie of the Indianmarket and its the consumer who is benefited from it..With the availability of reduced consumer loans and high disposable income the Indiantwo-wheeler industry has perceived an exceptional growth over the past few yearsthereby making India the second largest market for two wheelers in the world only afterChina. The motorcycle has now become one most popular mode of transportationamong the Indian middle class families because of it is cost effective, economical andeasy to navigate through the traffic. Moreover, the people have started preferring bikesinstead of scooters and mopeds and today bikes form a major part of the Indiantwo wheelers.Indian companies are one of the largest two wheeler manufacturers in the world. Thenumber one bike
manufacturer in the world, Hero Honda is in close competition with theIndian manufacturer Bajaj India. The motorcycle industry in India has witnessed atremendous change in the 90s with the invention of 4 stroke engine which makes thebikes more fuel efficient. Further companies are trying to bring in more innovations tomake the motorcycle ride more comfortable, safe and user friendly and economical.In a nut shell the followings factors can be distinguished for the growth of motorcycleindustry in India: Easy accessibility to cheap consumer loans The increase in the average income of the family. The reduction in duties and taxes. Convenience with regards to commuting as compared to the public transport system. Continuous innovations in technology making the bikes economic and fuel- efficient. The first choice among youths and teenagers.An Overview of IndustryThere are many popular and renowned motorcycles in India. The most popular amongthem are Hero Honda and Royal Enfield. Bajaj Auto Ltd. is one of them. Projectsformba.blogspot.com
123. Projectsformba.blogspot.comBajaj Auto Limited, manufacturing a range of motorcycles and scooters, was founded in1945 on 29th November. With the onset in the Indian market, the company was onlymanufacturing two wheelers and later it also made a benchmark in the three wheelerindustry. This popular company became a public limited company in 1960.Hero Honda Motors Ltd. is another popular motorcycle company in India. This company,started in 1984, was a successful joint venture between Hero Cycles and Honda MotorCompany of Japan. Since the commencement of the company, Hero Honda hasmanufactured and sold more than 15 million motorcycles. The company has establisheda niche in the competitive Indian and international market for manufacturing lowmaintenance and high fuel efficient motorcycles. When it comes to Indian motorcycle,Royal Enfield hits the mind of every Indian motorcycle lovers because it isone of the premier bike companies in India..TVS Motor Company Ltd and Yamaha Motor India Ltd also have carved a niche in theIndian motorcycle market.TVS Motor Company, established by T. V. Sundaram Iyengar in 1911, is believed to bethe third largestmanufacturer of two-wheeler in India.TVS came up with the first two-seater moped in 1980 that eventually defined thedominion of personal transportation in India. This company entered into a joint venturewith Suzuki Motor Corporation of Japan in 1982. This collaboration was the firstcompany to introduce a 100-cc motorcycle in the markets of India.Yamaha Motor India Ltd. is continuously making efforts to break down the competitivetwo wheeler market in India and win the battle with its business strategies. The businessstrategies and principles of this company is customer fulfillment through quality service,research and development for introducing high end motorcycles and optimization of theworking systemThe 3.8 million two-wheeler market in India included scooters, motorcycles and mopeds.In the late 1990s, the domestic two-wheeler industry had undergone many structuralchanges. Motorcycles consistently gained market share from the scooter and the moped. The trend was expected to continue in 2001-02. 150cc vehicles from Bajaj Auto andLML dominated the scooter market. Northern India was the major market accounting fornearly 46% of the total scooter sales. The Indian motorcycle market could be broadlycategorized into Indian motorcycles and IndoJapanese motorcycles. The Hero group,Bajaj and Escorts dominated the IndoJapanese motorcycle segment in collaborationwith Japanese vehicle
manufacturers Honda, Kawasaki and Yamaha respectively. Entry segment levelMarket Segmentation The market for two wheeler can be segmented into Premium Executivefollowing categories segment segment Projectsformba.blogspot.com Deluxe segment
124. Projectsformba.blogspot.com 1. Entry Segment ( Entry Level Area) ( UP To RS 35000)This category basically includes: People living in rural areas ,Hero Honda is marketleader In this segment as they have penetrated in to rural areas covering 550000people in rural areas only For ex : Bikes in this segment are like Crux,CD dawn ,CDDelux ,Patina ,Star City , Star Sports , Heat 2. Executive category (35000 -45000)This category includes: Office goers, Family oriented persons ,Whose Income variesbetween 2 to 3 lakhs , Finance is very important for this segment For ex YamahaGladiator comes in this segment as they have specially made the sitting style of the bikeas per this segment people. Bikes in this segment : G5 , AlBA , Passion Pro,Splendor+ ,XCD 135 ,XCD 125 , Splendor NXG ,Platina . 3. Delux Segment (45000 70000)Pulsar basically defined this categoryThis category is basically characterized by: Youngsters , having passion for bike ,College goers , Style is needed (Macho look) ,Basically known as girlfriend bikes For ex Bikes catering to this segment are Yamaha FZS, Pulsar, CBZ xtreme, TVS Apache,Honda Unicorn , GS150.4 . Premium Segment ( Above 70000) For people with passion Projectsformba.blogspot.com
125. Projectsformba.blogspot.com I WANT A BIKELike IT people in the city like BANGALOREBikes catering to this segment basically includes Yamaha R15 , Karizma, Pulsar 220 cc ,Apache RTR .In this segment best seller is ApacheSWOT ANALYSIS of THE TWO WHEELER INDUSTRYStrengthEstablished brands, Strong Brand NameFuel efficient WeaknessesStyle statement Extremely price sensitiveConvenient in heavy traffic Short PLCCheap and affordable High R and D costsEasy and cheap finance availabilityPatentsGood reputation among customersOpportunities ThreatsGrowing premium segment The Rs.1 Lakh carIncreasing dispensable income Cut throat competitionEnvironmental concerns Increasing number of players in the marketExports increasing Rising raw material costsVery strong demand in the 100cc. segment Increasing rates of interest on financedominated by limited players.COMPETITORS ANALYSIS (Players Operating in The Market)1. Bajaj Auto Ltd.Established in 1945 Bajaj Auto Ltd was incorporated as a trading company. Till 1959,they imported scooters and threewheelers from Italy and sold them in India. Thecompany got a production license in the year 1959 and fastened a technicalcollaboration with Italian PIAGGIO in 1960.Bajaj Auto Ltd. is one among Indias top ten companies in terms of market capitalization Projectsformba.blogspot.com
126. Projectsformba.blogspot.comand among the top five in terms of annual turnover.Today, the company has become a market leader. These days, Bajaj Auto Ltd. hasstarted offering products in all segments (mopeds & scooterettes, scooters, motorcycles,three wheelers).2. Hero Honda Motors Ltd.Hero Honda Motors Ltd. is a result of the joint venture betweenIndias Hero Group and Japanese Honda Motors Company inthe year 1983. This joint venture has not only created theworlds single largest two wheeler company but also one of themost successful joint
ventures worldwide. Hero Honda isglobally known of being the most fuel-efficient and the largestCBZ selling Indian Motorcycle Company. This is a relationshipso harmonious that Hero Honda has managed to achieveindigenisation of over 95 percent, a Honda record worldwide.The company is committed to provide the customer with excellence. A rich backgroundof producing high value products at reasonable prices led the worlds largestmanufacturer of motorcycles to collaborate with the worlds largest bicycle manufacturer.During 80s, Hero Honda became the first company in India to prove that it was possibleto drive a vehicle without polluting the roads.The unique features like fuel conservation, safety riding courses and mobile workshopshelped the group reach in the interiors of the country. Wellentrenched in the domesticmarket, Hero Honda Motors Ltd. turned its attention overseas, and exports have beensteadily on the rise.3. Honda Motorcycles & Scooters India Private LimitedEstablished in 1999, the Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) is a whollyowned subsidiary of Honda Motor Company Ltd., Japan and is located at Manesar,Haryana. The companys most well known brand is the Honda Activa that revolutionizedthe Indian scooterette market in terms of design and features. The company exportsscooters to the European Union.4. TVS MotorTVS Motor is a leading and trusted two wheeler company began withthe vision of TVS Scooty the founder of the Sundaram Clayton Group,the late T.S. Srinivasan - to design, develop and produce anaffordable moped for the Indian family. This vision was realized in1980 when TVS 50, Indias first two-seater moped rolled out of thefactory at Hosur in Tamil Nadu, Southern India.The company has been known for its ruggedness and reliability.TVS Motor has continually worked on innovation of the motorcyclesegment along with two wheeler range. The Suzuki Shaolin,developed by TVS Suzuki is Indias first 5-speed, 140 cc motorcycle. Another example of Projectsformba.blogspot.com
127. Projectsformba.blogspot.comthe company success is TVS Scooty, a 60 cc Scooterette which keep one step ahead ofits time in India..The company is the third largest two-wheeler manufacturer in India and ranks among thetop ten globally. The company was the first in India to launch 2-seater 50cc moped and100cc IndoJapanese motorcycles. At present TVS Apache, TVS Victor, TVS Scooty,TVS Centra and TVS Fiero are the popular bikes in Indian market.5. Royal Enfield Motors Ltd.Established in 1955, Royal Enfield was the brand of theEnfield Cycle Company. Royal Enfield is one the oldestbike on the road. The company is well known forproducing motorcycles, but they also produce bicycle,stationary engines, lawnmowers and rifle small parts forthe Royal Small Arms Factory in Enfield. In 1990, RoyalEnfield entered into a strategic alliance with the EicherGroup, and later merged with it in 1994. The annualturnover of the company is Rs.10 billion. The Eicher Group has a range of interests inthe automotive industry, including small trucks, tractors, exports, automotive gears,management consultancy and cartography.The corporate philosophy of Royal Enfield Motors Ltd. is built around quality andunflinching loyalty to the customer, a few reasons why the legendary Bullet is not just abike but a motorcycling icon. The ruggedness and reliability of the bike is endorsed bythe army, the police, the paramilitary forces and over 500 institutions which form part ofthe die-hard customer base of the Bullet, dubbed the "Rajagadi", or royal vehicle.At the end we can say that all the above are giving a very tight competition toINDIA YAMAHA MOTORS in India. To overcome these
competitors YAMAHA isconstantly doing R & D about its product and market as well. SWOT ANALYSISGROUP PLAYERS ATTRIBUTES COMPETITIVE FORCESA Bajaj, Hero Honda Highly diversified - High buyer power Aggressive High competitive rivalry promotion - High entry barriersB TVS Selectively diversified - Low entry barriers Aggressive - Narrow product lines imply Promotion that aggressive promotions Projectsformba.blogspot.com
128. Projectsformba.blogspot.com can eat into market shareC Honda, Yamaha Selectively diversified - High threat of substitution Moderate Promotion (Rs 1 lakh car) - Low entry barriersD Royal Enfield Highly specialized - Low buyer power high Low Promotion brand loyalty - Product diversification will imply risk of brand dilution YAMAHA (AN INTRODUCTION)Yamaha made its initial foray into India in 1985. Subsequently, it entered into a 50:50joint venture with the Escorts Group in 1996. However, in August 2001, Yamahaacquired its remaining stake as well, bringing the Indian operations under its completecontrol as a 100% subsidiary of Yamaha Motor Co., Ltd, Japan.India Yamaha Motor operates from its state-of-theart-manufacturing units at Faridabadin Haryana and Surajpur in Uttar Pradesh and produces motorcycles both for domesticand export markets. With a strong workforce of 2000 employees, India Yamaha Motor ishighly customer-driven and has a countrywide network of over 400 dealers.The company pioneered the volume bike segment with the launch of its 100 cc 2-strokemotorcycle RX 100. Since then, it has introduced an entire range of 2-stroke and 4-stroke bikes in India. Presently, its product portfolio includes Crux (100cc), Alba (106cc)and Gladiator (125cc).VISIONTo establish YAMAHA as the "exclusive & trusted brand" of customers by "creatingKando" (touching their hearts) - the first time and every time with world class products &services delivered by people having "passion for customers".MISSIONWe are committed to:Be the Exclusive & Trusted Brand renowned for marketing and manufacturing ofYAMAHA products, focusing on serving our customer where we can build long termrelationships by raising their lifestyle through performance excellence, proactive design& innovative technology. Our innovative solutions will always exceed the changingneeds of our customers and provide value added vehicles.Build the Winning Team with capabilities for success, thriving in a climate for action anddelivering results. Our employees are the most valuable assets and we intend to developthem to achieve international level of professionalism with progressive careerdevelopment. As a good corporate citizen, we will conduct our business ethically andsocially in a responsible manner with concerns for the environment.Grow through continuously innovating our business processes for creating value andknowledge across our customers thereby earning the loyalty of our partners & increasingour stakeholder value.CORE COMPETENCIESCustomer #1We put customers first in everything we do. We take decisions keeping the customer inmind.Challenging Spirit Projectsformba.blogspot.com
129. Projectsformba.blogspot.comWe strive for excellence in everything we do and in the quality of goods & services weprovide. We work hard to achieve what we commit & achieve results faster than ourcompetitors and we never give up.TeamworkWe work cohesively with our colleagues as a multi-cultural team built on trust, respect,understanding & mutual co-operation. Everyones contribution is equally
important forour success.Frank & Fair OrganizationWe are honest, sincere, open minded, fair & transparent in our dealings. We activelylisten to others and participate in healthy & frank discussions to achieve theorganizations goals.OVERVIEWFOUNDED: July 1, 1955CAPITAL: 48,302 million yen (as of March 31, 2008)PRESIDENT: Takashi KajikawaEMPLOYEES: 46,850 (as of December 31, 2007)PARENT: 9,019 (as of December 31, 2007)SALES: 1,756,707 million yen (from Jan 1, 2007 to Dec 31, 2007)PARENT: 799,209 million yen (from Jan 1, 2007 to Dec 31, 2007)SALES PROFILESales (%) by product category (consolidated)Sales (%) by region (consolidated)SWOT ANALYSIS FOR INDIA YAMAHA MOTORS Projectsformba.blogspot.com
130. Projectsformba.blogspot.comStrength Size and scale of parent company. Effective Advertising Capability Weaknesses Committed and dedicated staff. Small showrooms. High emphasis on R and D. Not much emphasis on aggressive selling. Experience in the market. Weak product diversity. Established brand. Established market channel. Power, Speed & AccelerationOpportunities Growing premium segment. Threats Global expansion into the Caribbean Cut throat competition & Central America. Increasing number of players in the market Expansion of target market (include Rising raw material costs women). Increasing rates of interest on finance Increasing dispensable income. 1st mover advantage.Beginning Of A Journey(Beginning Of a Marriage )(Escort Yamaha Tie The Not)In 1985, Yamaha Motors entered into a technical support agreement with Escorts, andstarted local production of Yamaha motorcycles. In 1995, Yamaha and Escorts signedanother contract, establishing EYML to manufacture and market motorcycles in India.Each company invested 50% of the capital for the original venture EYML produced awide range of motorcycles for the urban and rural markets at its Faridabad (Haryana)and Surajpur (Uttar Pradesh) plants. The joint venture manufactured Rajdootmotorcycles at Faridabad and the RX and four-stroke YBX series at Surajpur... From 1995 to early 2000, EYML took several steps to become the number one player inIndias twowheeler market. However, in mid 2000, Escorts divested 24% equity toYamaha Motors and as a result, Yamaha Motors became a majority stakeholder in theventure (74:26). In May 2001, Escorts sold its remaining 26% equity, thus, exiting fromthe joint venture.Role of Escorts Group In the Joint VentureThe role of the Escorts group was always minuscule since Yamaha has been graduallyhiking its stake in the joint venture. The Nandas of the Escorts were only promoters inthe JV They were just on the drivers seat & Yamahas Technology was not the part oftheir expertise .Reason For Break up : Projectsformba.blogspot.com
131. Projectsformba.blogspot.comThe macro cause for the change was Escorts Yamahas sliding share in the MotorcycleMarket. In the light of growing competition, both parties deemed it fit to part ways.Hari prashad Nanda of Escort Group then identified four thrust areas for Escorts-agri-business, telecom, software and healthcare. The idea behind giving Yamaha Motors themajority stake in the joint venture was to focus more on the four thrust areas. AsYamahas technology was not their area of specialization.With the change in the equity pattern, Yamaha Motors would control the management ofthe joint venture. Yamaha Motors would now hold 100% stake in the company.Commenting on Escorts exit from the joint
venture, an official said, "We would like to getout of businesses where we are not in the drivers seat and in the case of Yamahatechnology it was not a part of our expertise." He said Escorts would now concentrate onagri-business, telecom and healthcare..The first ever Press release made by Y.M.I was as follows :An agreement has recently been reached between Yamaha Motor Co., Ltd. (YMC) andits joint venture partner in India, Escorts Limited (Chairman and Managing Director: Mr.Rajan Nanda. Location: Faridabad, suburbs of New Delhi) under which YMC will acquireall of the 26% of the stock presently held by Escorts Limited in the two companiesmotorcycle manufacturing and marketing joint venture, Yamaha Motor Escorts Ltd.(YMEL).The aims of this move to make Yamaha Motor Escorts a 100% YMC subsidiary are toincrease the overall speed of managerial and business decisions, to improve productdevelopment capabilities and production efficiency, while also strengthening themarketing organization. Plans call for the change in the companys name and otherprocedures to be completed by the end of June.In addition to YMC acquiring Escorts 26% of YMEL stock, the companys name will bechanged to Yamaha Motor India Private Limited (YMI) and concerted efforts will bemade to heighten its competitiveness in the Indian market and promote the spread of theYamaha brand with target themes of developing products with greater appeal and adistribution network that can respond more quickly to user needs.End Of Honey Moon After the Failure of a Joint Venture The next logical progression for Yamaha wasobviously assuming full control of Indian operationsAs a company , YMI is only 7 years old in the Indian Motorcycle market . HoweverYamaha has had a presence in this sector for over 21 years ever since it entered into atechnical collaboration with Escorts motors in 1985 .Ever since the establishment of the first technical assistance agreement between thetwo companies in 1985, YMC and Escorts Limited have built a cooperative relationshipdedicated to the manufacture and sales of Yamaha brand motorcycles in anenvironment of growing motorcycle demand in the Indian market. In November of 1995,the two companies established the joint venture company Escorts Yamaha MotorLimited, based on a 50-50 capital investment. In June of 2000, that investment ratio waschanged to 74% for YMC and 26% for Escorts Limited . Projectsformba.blogspot.com
132. Projectsformba.blogspot.comFormation of Yamaha Motor India Private Limited (YMI)After the separation from Escorts Yamaha undertook a lot of measures to consolidateitself in to Indian market YMC assumed managerial control of the company with the name being changed toYMEL and undertook numerous measures to build the companys motorcyclemanufacturing and marketing operations.Various Strategic Measures Undertaken to consolidate in toIndian MarketAfter Escorts hugely successful motorcycle brand, Rajdoot, the group had not been ableto replicate the success with the offerings under the Yamaha brand. While the YamahaRX 100 model, which before being withdrawn due to new emission norms, seemed toachieve considerable success, the other models including the Yamaha YBX, its first four-stroke bike, have only received lukewarm response from the marketYamaha believed that operating on an individual basis would help in building its separateBrand Name. A strategy was formulated in order to facilitate new product launches and the entireMarketing policy was overhauled.As part of the strategy, Yamaha Motors also planned to convert its India operations intoa sourcing base for parts and fully-built two-wheelers.In essence the
decision to separate was on grounds of mutual consent by both parties. Itmade business sense to part ways now and the timing could not have been better in thelight of prevailing competitive environment.Introduction of Japanese culture on Indian soilYAMAHA Motor Company of Japan renamed its wholly-owned Indian subsidiary(Yamaha Motor India Pvt Ltd), after buying out the entire equity holding of the Escortsgroup in the erstwhile joint venture Yamaha Motor Escorts Ltd.Following are the main 8 changes which have been implemented after Yamaha Partedits way from Escorts 1. Administrative changes: Each department now has a Japanese representative called Deputy General Manager. As far as hierarchy in the top brass is concerned, the C.E.O, President, Vice President and Associate Vice President are all now Japanese. The first Indian involvement in the top management begins at General Manager Level of individual departments. 2. Eliminating Indian Culture: As long as Escorts had a say in the organization, atypical Indian Culture prevailed Employees used to work in the office at their own will , used to walking in at 9:15 for a shift which starts at 9:00.But After the Projectsformba.blogspot.com
133. Projectsformba.blogspot.com separation from Escorts full Japanese culture was implemented in the organization in Place of Indian culture .Every employee has to Remember: Switch off A.Cs, fans and lights. Keep the gangway clear of any hindrances. Put yours tools in appropriate closet. Keep your work surroundings clean and hygienic. Call each other by using the word SAN which is a word used to give the respect to each other , each employee of the organization call each other by using the word SAN which means JI in Japanese 3. Japanese work ethos They are built around a single minded devotion to discipline.No employee is offered preferential treatment and some rules apply for everybody. Ifyour Japanese manager walks in at 8:45 for a 9o clock shift, imagine the example it setsfor subordinates. Thats exactly what happened at Yamaha Motors India strict financialpenalties were put in place for those who reported late at work.4. Developing Team Spirit - every employee was given the same uniform. Regardless ofthe fact that whether you are a Foreman or Chief General manager, everyone isexpected to turn up in the same uniform. The obvious benefits are an increased sense ofcamaraderie and team spirit.5. Life Time Involvement with the Employee : Japanese Companies believe in life timeinvolvement with its employees. In return, they expect their employees to treat theorganization as their own family6. Japanese work on the premise- A happy Employee is a productive employee Thestandards for employees safety and general sanitation are same in India as in Japan.After Yamaha took over, an entire new department was created, just to look aftergeneral7. Quality Conscious: Japanese are a quality conscious breed who has traditionallybelieved that a technologically superior product will sell itself against any competition.After Yamaha took over, every six months, a batch of 4-5 employees is selected to betrained at the Yamaha production plant in Japan. . They also get a first hand experienceof Japanese work culture and discipline.8. Quality Circles: A concept, originally pioneered by the Japanese, was successfullyimplemented at Yamaha Motors IndiaQuality control, or quality assurance as they like to call it, is something Japanese areobsessed with. Quality assurance became a key performance area only after Yamahatook over. During the era of Escorts when Yamaha was just a technical collaborator,professionals from
Japan visited only to collect date regarding rejection rate, efficiency, Projectsformba.blogspot.com
134. Projectsformba.blogspot.comvolumes per hour etc. Now, realizing that profit levels, quality assurance is given its dueshare of importance.So the above 8 points are showing how an organization has to cope up with thechanging conditions, as a lot of changes are required when such an event takes place inan organization, and Yamaha is a perfect example in understanding the strategies anorganization has to form in order to survive in the odd circumstances.The culture change which came as a shock two years ago has now become a norm.Discipline has become a way of life. The professional approach which Yamahaintroduced is no more imposed on the workers. It has become a part of their socialconditioning at the workplace.Yamaha is still to turn the corner in the highly competitive motorcycle market. However,Yamaha has recognized the enormous potential of the market and its penchant toswitch brands according to latest trends and technology. The profits are showing anupward trend recently. The progress made is painstakingly slow but sure Employees atall levels showcase a deep rooted belief that their company can once again repeat thesuccess stories of mid 1990s.Various Recent Strategic Moves Adopted By theOrganization To Break Through The Competition & ToConsolidate in to Indian MarketTHE YAMAHA STRATEGY IN INDIAYamaha has shifted its focus from the lower end segments to the premium segment ofbikes. It aims to provide its customers the full range of its engineering marvels that makeYamaha the company that it is. Yamaha has a very strong focus on the technicaldepartment, the result of which can be seen with Yamaha comfortably leading theconstructors championship in the Superbikes racing with Valentino Rossi and ColinEdwards as their riders.Yamaha has aimed to become the No.1 in customer satisfaction and is looking forwardto providing the customer with an experience with its products.The target market of India Yamaha Motors is th e young and enthusiastic 18-25 yr. oldswho are willing to try taking the not so much treaded path of buying the sports bikerather than a utility two wheeler. These young guns are very conscious of the stylequotient and look forward to their ride being a personality statement.With the increasing dispensable income in India and growing middle and upper middleclass segment Yamaha is sure to find many prospective customers. With news of Indiabecoming the breeding ground for millionaires Yamaha has certainly identified anopportunity and has grabbed it hands down.So the Yamahas Strategies to get success are : 1. Focus On Premium Segment of Indian Society. Projectsformba.blogspot.com
135. Projectsformba.blogspot.com 2. Focus on Style & Racing (as It Is aiming at youths (Between the age of 18 24), as these young guns are very conscious of the style quotient and looking forward to their ride being a Personality Statement. 3. To make a trading path of buying the Sport Bike rather than a utility Two Wheeler. 4. To Become No. 1 in customer Satisfaction and is looking forward to providing the customer with an experience with its products. 5. Strong Focus On technical Department. 6. To come up with as much as new model as it could so as to provide customer with a wide variety of choice. 7. The business strategies and principles of this company is customer fulfillment through quality service, research and development for introducing high end motorcycles and optimization of the
working systemTHE 4 PS OF INDIA YAMAHA MOTORSProduct : India Yamaha Motors has recently launched its sports bike R15 and FZS inthe 150cc. The bikes in the premium segment include MT01 and YZF R1. Yamaha isbringing its latest technologies to India and aims to come up with a new product for theIndian market every quarter.The reliability and riding quality of a Yamaha have already been established through itsearlier products.Price: The Yamaha range of products has been very competitively priced and theprices of its premium segment bikes MT01 and YZF R1 are priced much below anypresent or prospective competitor in the segment at Rs.10.5 lacs.Its other products like the R15 has also been priced optimally looking at thespecifications of the bike. The bike despite being only 150 cc provides around 22 BHP ofpower, more than any other bike in the 150-220cc. bracket. The bike has also broughtthe liquid cooled engine technology to India and other features like the styling etc. arealso quite new for the Indian market and hence considering what it gives you it is abargain at Rs.97, 500. Projectsformba.blogspot.com
136. Projectsformba.blogspot.comPromotion: Yamaha has been constantly loosing market share over the last fewyears and has thus decided to change its brand image with change in its marketstrategy. The company now wants to be known for its style and speed. It looks to beknown as a sports bike manufacturer and not as an economy bike segment player.Taking these factors into consideration the company has started a complete makeoverof its image. The recent R15 and FZS ads on numerous channels on TV and other adson both electronic and print media vindicate the point.The company has also opened Yamaha bike stations which are company ownedshowrooms and completely symbolize the brand image that Yamaha wants to achieve inIndia.Place: India Yamaha Motors has adopted a two tier marketing channel consisting ofthe Primary dealers at tier1 and the secondary dealers or retailers at tier2. In addition tothese two tiers there are also the co mpany owned showrooms and the multibrandoutlets.In order to Execute its Above Strategies Yamaha has Recently Launched ItsTwo Brand New Motor Cycles Fzs & R15 Which have been highlyappreciated by the Indian consumers , Following are the main features ofits new bikes .RECENT LAUNCHYAMAHA FZ-SYamaha FZ-S 150cc, a recently launched bike by the industry giant Yamaha. After thegrand success of FZ-16 Yamaha has finally launched its modified version (FZ-S) inIndia. This fabulous bike is equipped with all the necessary features one may think of. Itstands ahead in style and performance not only in its segment but beyond. This bike isbest suited for those who want elegance and power in one. It is designed andengineered with the capacity for active and aggressive enjoyment of aroundtown streetriding and styling, bringing a sense of pride for the owner of the bike. It is especiallydesigned to satiate riders desire for style and fashion. It is popularly referred as theStylish Macho Street Fighter (Lord of the Streets). The primary features of Yamaha FZ-S include: Projectsformba.blogspot.com
137. Projectsformba.blogspot.comYAMAHA YZF R15This is the latest offering from the Yamaha stable. The YZF R15 is the first truly sportsbike launched in India. The looks and design have been done keeping the bigger R1 inmind and hence the resemblance.The bike is priced at Rs.97,500 (ex-showroom) across India. It boasts of the first liquidcooled 4 valve engine in the two wheeler category which gives it
better performance andpower. It is a 150cc bike having enough power to bring chills to the rider when he revsup the accelerator.In addition to the above Launched bikes Yamaha is planning to roll out Following BikesToo in the near future these are:FUTURE LAUNCHES Projectsformba.blogspot.com
138. Projectsformba.blogspot.comYAMAHA R125The most advanced 125 production super sportmachine that Yamaha will launch in 2009 will beYZF-R125. This radical, high-revving, fuel-injected125 is the work of the same engineers who createdour legendary YZF-R1 and YZF-R6 super sportbikes.Expected In: July, 2009YAMAHA GLADIATOR 165Yamahas 165cc Gladiator will develop around 16.5PS and complete a 0 60 sprints in less than 5 seconds and it believed that Yamahahas already sent the bike for homologation and will launch its mid Next Year. Bike wasfirst displayed in last years Auto Expo.Expected In: July, 2009 ConclusionAfter The Separation Main focus of Yamaha has been to Capture the Indian MarketThrough its Product Which are Best In terms Of style & Design and is trying to achievethe target of 14% which it has laid down for the coming years its Recent Launched BikeFzS & R15 have shaken the market leader Like Bajaj & Hero Honda & is giving them atough competition & soon going Launch Few More Bikes in the market. But in a countrylike India where customer generally appreciates mileage it becomes necessary for acompany like Yamaha which produces Bikes whose prices are towards the higher end tofocus on other factors too which influence the consumer choice of Product like Prices ,After sale services and Many more. Projectsformba.blogspot.com
139. Projectsformba.blogspot.com Projectsformba.blogspot.com 140. Projectsformba.blogspot.com SYNOPSIS Interns Name: Mr. Hemrudra Pratap Singh Industry Guide: Mr. Mohit Sharma Faculty Guide: Mr. Bipin Singh Objective: The objective of our study was to know the market scenario of Second hand bike industry, to know the customer perception and satisfaction with after sales services regarding launching of new bikes FZ & FZS by Yamaha & to determine the factors influencing the choice of customers regarding bikes. Findings: We found that product of Yamaha is superb but consumers INDIA are not satisfied with the after sales services and pricing of the product.YAMAHA There were significant findings in the customer perception &MOTORS satisfaction study showing the impact of Gender, Income and Age on their choice of brands and other features in the bikes. Implications: The study would be of great help to the company giving out valuable insights about to improve their after sales services and would help in planning to reduce the prices as well as about the factors affecting customer choices. Perception of Industry Guide: Our industry guide was extremely knowledgeable and helped us in understanding the dynamics governing the industry. He was a constant guide in every step towards the completion of this project. He not only provided us with subjective knowledge but also emphasized on us being groomed for the corporate world and follow the virtues of discipline, dedication and righteousness towards the path of success. Projectsformba.blogspot.com
141. Projectsformba.blogspot.com Projectsformba.blogspot.com

A Project Report On Advertising Effectiveness of Cold Drinks - Document Transcript

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Projectsformba.blogspot.com Student of M.B.A.

DECLARATIONI, IV Sem from

37. Projectsformba.blogspot.com Research MethodologyResearch MethodologyResearch is voyage from known to

Projectsformba.blogspot.comRESPONDENTS ACCORDING No. TO of

10 20Standard of Living 10 20Level of Development 10 20Projectsformba.blogspot.com 57

Projectsformba.blogspot.comTABLE AND IMPROVEMENT

ADVERTISEMENTWILL THE STUDY No. of respondents PercentageOF TOIMPROVEMENT EFFECTIVENESSWOULDCONTRIBUTE OFPRESENTADVERTISEMENTYes 45

advertisement.TABLE 4.20NECESSITY OF ADVERTISEMENT EFFECTIVENESSProjectsformba.blogspot.com 59

EFFECTIVENESSTHE USE STUDY OF No. of respondents PercentageEFFECTIVENESS ISProjectsformba.blogspot.com 60

70. Projectsformba.blogspot.com OF COLD DRINKS BACK GROUND INFORMATIONI) Name Age : :

ADVERTISING AGENCY PAKISTANProjectsformba.blogspot.com 4

strategies adopted by Honda..................................................................................543.1 RESEARCH DESIGN................................................................................................ ........................58Projectsformba.blogspot.com pg. 6

Projectsformba.blogspot.com 2.1 PROFILEProjectsformba.blogspot.com pg. 17

creating new value by providing theProjectsformba.blogspot.com pg. 45

much more powerful Projectsformba.blogspot.com

to working class like office goers, AGEProjectsformba.blogspot.com pg. 67

ALLOWANCES 8% OTHERS 3%Projectsformba.blogspot.com pg. 78

Analysis 6.1 Results of Customer Survey 6.2 Hypotheses Tests Projectsformba.blogspot.com

TWO WHEELERS>> MOTORCYCLEBajaj Avenger 180 CC Projectsformba.blogspot.com

54. Projectsformba.blogspot.com Chapter 2.0 CRITICAL REVIEW OF LITERATURE Projectsformba.blogspot.com

63. Projectsformba.blogspot.com CHAPTER 3.0 HYPOTHESES Projectsformba.blogspot.com

65. Projectsformba.blogspot.com CHAPTER 4.0 EXECUTIVE SUMMARY Projectsformba.blogspot.com

113. Projectsformba.blogspot.com CHAPTER 9.0 BIBLIOGRAPHY & REFERENCES Projectsformba.blogspot.com

120. Projectsformba.blogspot.comCASE STUDY ON YAMAHA Issues Projectsformba.blogspot.com

141. Projectsformba.blogspot.com Projectsformba.blogspot.com

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