Professional Documents
Culture Documents
ON
&
Of
By
Rohit Gupta
SHIMLA-5
1
CERTIFICATE OF SUPERVISOR
This is to certify that Mr. Rohit Gupta, Roll No.6065 has completed the research project
titled “ COMPARATIVE STUDY OF HERO HONDA V/S BAJAJ BIKES &
CONSUMER BUYING BEHAVIOUR AT TIMETO PURCHASE HERO
HONDA AND BAJAJ BIKE” under my supervision in partial fulfillment of the Master
Of Business Administration degree of MBA under himachal Pradesh University ,Shimla.
Supervisor’s signature:……………………...
Date:
Place:SHIMLA
DECLARATION
2
I, hereby declare that the research project report titled “ COMPARATIVE
STUDY OF HERO HONDA V/S BAJAJ BIKES & CONSUMER
BUYING BEHAVIOUR AT TIMETO PURCHASE HERO HONDA AND
BAJAJ BIKE” is my own original research work and this report has not been
submitted to any University/Institute for the award of any professional degree or
diploma.
ACKNOWLEDGEMENT
3
I feel great pleasure to submit this project as the culmination of my Guide
efforts. This project required hard work; sincerity and devotion that i tried best to
put in this project and i in turn gained a lot of knowledge and confidence from this
project.
I would like to extend my sincere thanks to my College for providing me with the
necessary guidelines for carrying out the project. Further, without the cooperation
and support of my friends and colleagues this Project would have not been
completed.
4
PREFACE
In order to make the students competent, all students are required to take a real time
Project Work. The exposure to real life situation gives an insight the students about
Courses. The theoretical studies are not sufficient to get into the corporate world
.Theoretical are not sufficient to understand the complexities of large scale organization
& whenever we have to solve any problem the practical study assist with the theoretical
aspect in order to solve that problem so if we have practical than only that problem can
be solved .
5
TABLE OF CONTENTS
CHAPTER-1
6
INTRODUCTION TO INDIAN MOTORCYCLES INDUSTRY
Motorcycles have come a long way since they were first introduced in the
country way back in the 1950s. The Indian government had got the first set of these
mean machines from the Royal Enfield Company of UK for its' Army and Police to
patrol the border highways on the rough and tough terrain of the West. Today these sets
of two wheelers not only cater to the men in uniform, but also common people who
have different needs and expectations from their motorcycles. Today motorcycle
companies are taking special care to make their products more user friendly
comfortable, safe, and ergonomic without compromising on the fun and thrills of
riding. Some bikes like the hero Honda Karizma can touch speeds up to 125kmph thus
truly satisfying the riders need for speed. motorcycles have also invaded the Hindi film
industry where Bollywood heart throbs like John Abraham, Hrithik Roshan , Uday
Chopra and Fardeen Khan are seen setting the roads on fire with their set of two
wheels. Thus the trend of motorcycles have caught up with the average Indian and there
a bike to suit everyone's needs and usage. Premium Segment bikes like the hero Honda
Karizma and Bajaj Pulsar provides the Generation a chance to emulate their idols on
screen. These motorcycles come with 5 speed gear box and disc brakes to provide one
the extra throttle with the adequate safety measure. These motorcycles also come with
factory fitted allow wheels to provide the extra strength and stability.
India has a burgeoning middle class, which means that value for money bikes like the
hero Honda splendor, Bajaj “Discover” have retained their importance with every
passing day. These bikes are a hit among the office goers and small time business men
who demand maximum output from their two wheelers. Motorcycles like the hero
Honda splendor come in a wide range of colors and give an average mileage of 70 km
per liter.
The entry level segment of motorcycles also has a cut throat competition with the two
wheeler manufacturers trying to outdo each other by providing that extra edge in
7
economy biking. Some of the bikes which are available at the entry level include the
Hero Honda CD Dawn, and Bajaj CT 100.
8
industry. Among this Hero Honda is the market leader in the Motorcycle segment with
healthy market share of 48%, followed by the Bajaj Auto with market share of around
29%. There is a full dominance of two players Hero Honda and Bajaj Auto at present in
the Indian Motorcycle industry The manufacturers of Motorcycle manufacturer
distinguish their products based on power, fuel efficiency, maintenance requirement,
Looks, style, Comfort, price etc.
The Indo-Japanese segment is catered by three to five models from each of the
players viz Bajaj Auto Ltd., Hero Honda, TVS, and Escorts Yamaha. But majority of
the sales is of 100cc-125cc vehicles. The motorcycle segment will be broadened on the
high price front by introducing high powered bikes priced above Rs55000. These bikes
have been targeted at college going students who have a flavor for high-powered rides.
To cater to this segment, Hero Honda launched CBZ, a 156cc four-stroke motorcycle,
in March 1999.
It is priced around Rs 49000. 'Fiero' from TVS has been the one addition in this
list. Bajaj Auto is with its 220cc d pulsar, competition will hot up in the Japanese
motorcycle segment with players like LML and Kinetic Motors standing ready with
their offerings. More players are jostling for space in the market. Global majors —
Honda and Kawasaki already have a presence in the Indian market through their local
technological partners, while Yamaha has a full-fledged production base in India.
Suzuki, the other global major, which recently severed its ties with TVS Motor
Company, has now decided to set-up manufacturing facilities in the country. Apart from
international companies, there is growing competitive pressure from existing domestic
producers as well.
9
HERO HONDA
MOTOR’S LIMITED
INTRODUCTION
10
Hero Honda has a reputation of being the most fuel-efficient and the largest
selling Indian motorcycle. Its commitment of providing the customer with excellence is
self-evident. A rich background of producing high value products at a reasonable price
led the world's largest manufacturer of motorcycles to collaborate with the world's
largest bicycle manufacturer.
It was this affinity in working cultures of Honda Motor Company of Japan and the Hero
Group that resulted in the setting up of Hero Honda Motors Ltd. A relationship so
harmonious that Hero Honda has managed to achieve indigenization of over 95 percent,
a Honda record worldwide. Tactical promotions and excellent marketing helped Hero
Honda establish itself as an intelligent purchase. Its unique features like fuel
conservation, safety riding courses and mobile workshops helped the group reach in the
interiors of the country.
Finance services helped facilitate purchase, as did an efficient dealer network across the
country.
Well-entrenched in the domestic market, Hero Honda Motors Ltd. turned its
attention overseas, and exports have been steadily on the rise. Over the years, the
Company has received its share of accolades, including the National Productivity
Council's Award (1990-91), and the Economic Times - Harvard Business School
Association of India Award.
Hero Honda Motors Ltd is the World's largest manufacturer of motorcycles (by
quantity). Hero Honda is a 50:50 joint venture that began in 1984 between the Hero
group of India and Honda from Japan. It has been the world's biggest manufacturer of
2-wheeled motorized vehicles since 2001, when it produced 1.3 million motorbikes in a
single year. Hero Honda's Splendor+ is the world's largest selling motorcycle. Its 2
plants are in Dharuhera and Gurgaon, both in India. Third plant at Hardwar. It have
world class production facilities like Lean Manufacturing concept, more flexible lines
& Stream line material flow, within & proximity.
11
History
The success of the Hero Group lies in the determination and foresight of the
Munjal brothers, who shared their vision with their workers and led the Group to a
position where its name has become synonymous with top-quality two wheelers.
The flame kindled by the Munjal brothers in 1956 with the flagship company
Hero Cycles; Mr. Satyanand Munjal, Mr. Brijmohan Lal Munjal and Mr. O. P. Munjal
continue to carry the torch and are actively involved in the day-to-day operations of the
Hero Group.
The saga is being continued with the same zeal by the second and third
generations of the family and by the large working force of the Hero Group. The spirit
of enterprise which dominates the progress of the Group is characteristic of the land
where it all began - the City of Ludhiana, in Punjab - home to some of India’s finest
workers and entrepreneurs.
Growth
Hero Honda experienced great growth throughout its early days. The
Munjal family started a modest business of bicycle components. By
2002 Hero Group had sold 86 million bicycles producing 16000
bicycles a day. Today Hero Honda has an assembly line of nine
different models of motorcycles available. It holds the record for most
popular bike in the world by sales for Its Splendor model. Hero Honda
Motors Limited was established in joint venture with Honda Motors of
Japan in 1984, to manufacture motorcycles. It is currently the largest
12
producer of Two Wheelers in the world. Recently it has also entered in
scooter manufacturing, with its model PLEASURE mainly aimed at
girls. The growth of the Group through the years has been influenced
by a number of factors discussed below.
Just-in-Time Manufacturing
The Hero Group through the Hero Cycles Division was the first to introduce the
concept of just-in-time manufacturing. The Group boasts of superb operational
efficiencies. Every assembly line worker operates two machines simultaneously to save
time and improve productivity. The fact that most of the machines are either developed
or fabricated in-house, has resulted in low inventory levels.
In Hero Cycles Limited, the just-in-time inventory principle has been working
since the beginning of production in the unit. This is the Japanese style of production.
In India, Hero is probably the only company to have mastered the art of the just-in-time
inventory principle.
Labor relations
Extra benefits include medical check-ups not just for workers, but also for the
immediate family members. For the majority of the production workers, who are hired
through contractors, these benefits are out of reach.
13
Diversification
Throughout the years of enormous growth, the Group Chairman, Mr. Lal has
actively looked at diversification. A considerable level of vertical integration in its
manufacturing activities has been ample in the Group's growth and led to the
establishment of the Hero Cycles Cold Rolling Division, Munjal and Sunbeam
Castings, Munjal Auto Components and Munjal Showa Limited amongst other
component-manufacturing units.
Then there were the expansion into the automotive segment with the setting up
of Majestic Auto Limited, where the first indigenously designed moped, Hero Majestic,
went into commercial production in 1978. Then came Hero Motors which introduced
Hero Puch, in collaboration with global technology leader Steyr Daimler Puch of
Austria. Hero Honda Motors was established in 1984 to manufacture 100 cc
motorcycles.
The Hero Group also took a venture into other segments like exports, financial
services, information technology, which includes customer response services and
software development. Further expansion is expected in the areas of Insurance and
Telecommunication.
COMPANY PROFILE
14
Founder Munjal Brothers: Mr. Satyanand Munjal, Mr. Brijmohan Lal Munjal
and Mr. O. P. Munjal.
Mission "Its our mission to strive for synergy between technology, systems and
human resources, to produce products and services that meet the
quality, performance and price aspirations of our customers. While
doing so, we maintain the highest standards of ethics and societal
responsibilities."
Foundational Work Before the establishment of the Hero Group in 1956, Munjal Brothers
use to manufacture bicycle components in the early 1940's.
Joint Venture The Hero Group (India) with Honda Motor Co., Ltd. (Japan)
Website www.herohonda.com
www.herogroup.com
15
Hero Honda is a world leader because of its excellent manpower, proven
management, extensive dealer network, efficient supply chain and world-class products
with cutting edge technology from Honda Motor Company, Japan. The teamwork and
commitment are manifested in the highest level of customer satisfaction, and this goes a
long way towards reinforcing its leadership status.
GROUP COMPANIES
PRODUCTS
16
Hero Honda Motors Limited is currently manufacturing the following models of two
wheelers:
BIKES
17
SCOOTERS
18
MOST SELLING BIKES OF HERO HONDA
19
20
Social Responsibility
Healthcare
Other efforts, under the auspices of Hero Honda Motors Limited include:
Eye Camps: With over 15,000 patients examined and about 1700 cataract operations
performed so far, these Eye Camps have also aided patients with free accommodation,
food and medicines.
Family Planning Camps: Held since 1993 at the Civil Hospital, Rewari and Bawal,
these camps offer monetary incentives to the masses to adopt family planning
measures.
Blood Donations Camps: These camps are being organised on a regular basis since
1992. 464 units have been donated to Indian Red Cross Society in the last camps.
ENT Check up Camps: Conducted by specialists from AIIMS, these camps have been
organized-since-November-1997.
21
Heart Check-up Camps: Since July 1988, free camps are being organized in
collaboration with Escorts Heart Institute and Research Centre, where specialized
diagnosis methods like Echocardiography and ECG are used.
AIDS Awareness Programmes:In association with CIL Hero Honda has done
immense work to promote awareness about AIDS.
Education
The Raman Kant Munjal Trust fund, instituted in 1992, has helped set up a
primary school in Dharuhera. Today the Raman Kant Munjal Vidya Mandir has
grown into one of the best senior secondary schools in Daruhera. The school is
affiliated to the Central Board of Secondary Education.
Engineering
22
Innovative engineering for Hero Honda means using the right and specifically
designed technology that meets the Indian consumer's requirements as well as testing
road conditions. This is exemplified by Honda's reliable 4 stroke engines and their
amazing fuel efficiency. No wonder then, that Hero Honda has manufactured 4-stroke
engines ever since its inception in 1985. Hero Honda has received ISO 14001
certification for Environmental Conservation.
Environment
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Year Event
1983 Joint Collaboration Agreement with Honda Motor Co., Ltd., Japan signed.
Shareholders Agreement signed
1995 Hero Corporate Services Limited as the service segment for the Hero Group Companies,
ancillaries, suppliers, dealers and other associates
1996 Hero Winner, a large-wheeled scooter was introduced by Hero Motors Limited with a
choice of 50 cc and 75 cc engines.
24
1999 New motorcycle model - "CBZ" introduced.
Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of founder
Managing Director, Mr. Raman Kant Munjal
2003 Becomes the first Indian Company to cross the cumulative 7 million sales mark.
Splendor has emerged as the World's largest selling model for the third calendar year in a
row (2000, 2001, and 2002).
New motorcycle model - "CD Dawn" introduced.
New motorcycle model - "Splendor +" introduced.
New motorcycle model - "Passion Plus" introduced.
New motorcycle model - "Karizma" introduced.
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2004 New motorcycle model - "Ambition 135" introduced.
Splendor - World's largest selling motorcycle crossed the 5 million mark.
New motorcycle model - "CBZ*" introduced.
Total sales crossed a record of 10 million motorcycles.
2005 Hero Honda is the World No. 1 for the 4th year in a row.
New motorcycle model - "Super Splendor" introduced.
New motorcycle model - "CD Deluxe" introduced.
New motorcycle model - "Glamour" introduced.
New motorcycle model - "Achiever" introduced.
2006 Hero Honda is the World No. 1 for the 5th year in a row.Hero Honda launched Glamour
FI - India's first Fuel Injection motorcycle.Hero Honda rolled out its first scooter, the
100cc “Pleasure” and launched 22 women-exclusive scooter showrooms “Just4her”
across the country
Turnover increases 15% to Rs 2700 crore for Q3 2006-07. Turnover increased from Rs
2351 crore to Rs 2700 crore, a healthy growth of 15% per cent.
26
Programmed fuel injection ( PGMFI ) – Bike
Technology of the Year 2007
27
2009-10
GROWTH STORY CONTINUES AT HERO HONDA
WITH EBIDTA AT 14.47 PER CENT IN Q3, 2009-10
Corporate Performance:
Total turnover (Net sales & Other Operating income) Rs 2881.27 crores, growth
of 4.77 per cent
Net profit after tax at Rs 300.42 crores, growth of 9.24 per cent
Achievements:
Crossed the landmark retail sales of more than six lakh two-wheelers in a month
in October
Growth of 11 per cent in two-wheelers despatch sales in the first nine months
(April-December) this financial year
New Launches:
Launched seven new models this quarter - New CD Deluxe, New Passion Pro,
Splendor NXG, New Pleasure,Hero Honda street, New Glamour, New Glamour
FI and the all new CBZ X-treme.
28
Hero Honda success saga contains an element of spirit and enterprise; of
achievement through grit and determination, coupled with vision and meticulous
planning.
29
BAJAJ AUTO
LIMITED
INTRODUCTION
Over the last decade, the company has successfully changed its image from a scooter
manufacturer to a two wheeler manufacturer. Its product range encompasses
Scooterettes, Scooters and Motorcycles. Its real growth in numbers has come in the last
four years after successful introduction of a few models in the motorcycle segment.
The company is headed by Rahul Bajaj whose worth more than US$1.5 billion.
Company's history
30
Bajaj Auto is a major Indianautomobile manufacturer. It is India's largest and
the world's 4th largest two- and three-wheeler maker. It is based in Pune, Maharashtra,
with plants in Akurdi and Chakan (near Pune),Waluj (near Aurangabad) and Pantnagar
in Uttaranchal. Bajaj Auto makes and exports motor scooters, motorcycles and the auto
rickshaw.
Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading
Corporation Private Limited. It started off by selling imported two- and three-wheelers
in India. In 1959, it obtained license from the Government of India to manufacture two-
and three-wheelers and it went public in 1960. In 1970, it rolled out its 100,000th
vehicle. In 1977, it managed to produce and sell 100,000 vehicles in a single financial
year. In 1985, it started producing at Waluj in Aurangabad. In 1986, it managed to
produce and sell 500,000 vehicles in a single financial year. In 1995, it rolled out its ten
millionth vehicles and produced and sold 1 million vehicles in a year.
COMPANY PROFILE
Listings & its codes BSE - Code: 500490; NSE - Code: BAJAJAUTO
31
Joint Venture Kawasaki Heavy Industries of Japan
Works
Akurdi, Pune 411035
E-mail rahulbajaj@bajajauto.co.in
Website www.bajajauto.com
GROUP COMPANIES
32
Bajaj Hindustan Ltd Bachhraj Factories Pvt. Ltd
PRODUCTS
33
Some of the models that Bajaj makes (or has made) are:
SCOOTERS
Bajaj Avenger
Bajaj CT 100
Bajaj Discover
Bajaj Platina
Pulsar
Pulsar 200 Cc
34
Ninja 250R
Upcoming Models
Bajaj Blade
Bajaj Sonic
Discontinued Models
Bajaj Sunny
Bajaj Chetek
Bajaj Super
Bajaj Wave
Bajaj Legend
Bajaj Bravo
Kawasaki Eliminator
Bajaj Boxer
Bajaj Caliber
BAJAJ PULSAR
35
BAJAJ DISCOVER
36
SOCIAL RESPONSIBILITY
Jankidevi-Bajaj-gram-Vikas-Sanstha-(JBGVS):
Bajaj Auto’s philanthropic activities among the rural poor are carried out by a
trust, the Jankidevi Bajaj Gram Vikas Sanstha (JBGVS). This trust was formed
15 years ago by Ramakrishna Bajaj in memory of his mother, Jankidevi Bajaj.
JBGVS acts as a catalyst to development at the grass root level in 32 villages
around Bajaj Auto’s Pune and Aurangabad plants.
Vision-Statement-of-JBGVS:
JBGVS is a non-political and secular organization, which strives to improve the
quality of life of the rural poor by creating self employment opportunities at the
grass-root level, through the use of appropriate technologies, in harmony with
nature.
37
Focus
The trust initiates sustainable, integrated development through long term projects in
rural health, hygiene and sanitation, education and adult literacy, improving
agricultural and livestock yield, watershed development and women’s
empowerment. Through its poverty alleviation schemes, the trust provides micro
credit and income generation opportunities for the poor. These projects have a
positive impact on the quality of rural living standards.
Under the auspices of the ‘model village scheme’ of the Maharashtra Government,
JBGVS has assisted the development of several villages in the last five years. Under
this scheme, NGOs, public institutions, colleges, hospitals, local self-government
bodies and state government departments for agriculture and horticulture, work
together to bring about a holistic and sustainable improvement in rural living
conditions.
Samaj-Seva-Kendra:
Social activities in semi urban areas on the outskirts of Pune are undertaken by the
Samaj Seva Kendra (SSK), set up by Bajaj Auto in 1975. SSK provides local
industrial workers with opportunities for self development, education, healthcare,
sports and recreation. It involves local institutions and municipal bodies, local
Rotary Clubs and NGOs in its activities.
SSK has helped empower wives of factory workers by providing them earning
opportunities. Last year, its Laxmi Mahila Cooperative Credit Society (started in
1990) earned Rs 1 Lakh by supplying chapattis, prepared by its members, to
industrial canteens. SSK also organizes weekly medical consultation and health
awareness programmes, child and adult education, vocational training and
personality development programmes, leisure and recreational facilities for women.
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Kamalnayan Bajaj Hospital:
The hospital’s facilities range from spacious and hygienically maintained general
wards with all essential amenities to large deluxe rooms furnished with sofas,
telephones, refrigerator, television and a small kitchenette. For relatives of patients,
the hospital provides guesthouse-facilities-and-a-professionally-managed-cafeteria.
The hospital offers a specially designed health insurance and annual medical check-
up plan in association with Bajaj Allianz General Insurance, which provides cash-
less hospitalization and treatment.
39
KEY MILESTONES OF BAJAJ AUTO LIMITED
Year Milestones
2007
20066
2005
42004
January Bajaj unveils new brand identity, dons new symbol, logo and brand line
32003
40
July Bajaj Wind 125, The World Bike, is launched in India.
February Bajaj Auto launched its Caliber115 "Hoodibabaa!" in the executive motorcycle
segment.
12001
November Bajaj Auto launches its latest offering in the premium bike segment ‘Pulsar’
1999 Caliber motorcycle notches up 100,000 sales in record time of 12 months and
81998
July 25th Legend, India’s first four-stroke scooter rolls out of Akurdi.
1997 The Kawasaki Bajaj Boxer and the RE diesel Auto rickshaw are introduced
1995
Agreements signed with Kubota of Japan for the development of diesel engines for
three-wheelers and with Tokyo R&D for ungeared Scooter and moped development
The Bajaj Super Excel is introduced while Bajaj celebrates its ten millionth vehicle
One million vehicles were produced and sold in this financial year.
1986 The Bajaj M-80 and the Kawasaki Bajaj KB100 motorcycles are introduced and
500,000 vehicles produced and sold in a single financial year.
41
1985
November The Waluj plant inaugurated by the erstwhile President of India, Shri Giani Zail Singh
5
11984
January 19 Foundation stone laid for the new Plant at Waluj, Aurangabad
71977
Bajaj Auto achieves production and sales of 100,000 vehicles in a single financial
year.
1960 Bajaj Auto becomes a public limited company. Bhoomi Poojan of Akurdi Plant
1959 Bajaj Auto obtains licence from the Government of India to manufacture two- and
three-wheelers
Bajaj Auto said that it will launch new bikes in India in 2011. The company would
launch one bike every month for next 6 months starting Jan 2009.
Bajaj has recorded 37 ercent fall in motorcycle sales during this November’08.
42
The company doesn’t predict any increase in Dec 2008 either as the dealers have
rejected to pickup any additional deliveries because of inventory pile-up.
The expecting bikes include - all new facelifted Bajaj-KTM, Pulsar 250cc, new Pulsar
200 FI,New Boxer 150 cc, a new variant of Discover, XCD sprint and Blade scooter.
Bajaj also plans to launch its new low cost product (christened as Steel).
Bajaj is offering the cheaper finance plans from Bajaj Auto Finance Ltd. They will
finance all vehicles bought from Bajaj dealers and will provide cheaper loans to its
clients.
CONSUMERBEHAVIOR
Introduction
43
Why people choose one product or brand over another, how
they make these choices, and How companies use this knowledge to
provide value to consumers.
A consumer is a living bundle or needs and to a great extent he dictates the nature of
products to be made, distribution channels to be used and prices. It is paramount for the
marketers to know the consumer needs and wants and what he is ready to pay for them.
This helps in deciding about the marketing mix i.e. product, price, place and promotion.
The study of consumer behavior offers the marketers an insight into the purchase
decision-making process. Accordingly, he can chalk out a strategy so as to reap
maximum benefit from it.
Problem Recognition
44
Information Search
Evaluation of Alternatives
Purchase Decision
Information Search:-A need aroused and recognized can be satisfied only when
the product or service is available. Consumer interest is indicated in the consumer’s
willingness to seek further information about product or service. Since there are
varieties of products and he seeks to have maximum satisfaction, he searches relevant
information. Consumers have many alternative sources of information to tap such as
friends, relatives, neighbors, salesman, dealers, advertisements etc.
45
product. Once he evaluates, he develop the intention to accept or reject a given product
or service. The final purchase depends on the relative strength of the positive intention
to buy. In evaluation of alternatives many values are taken into consideration like
product characteristics, brand image etc.
Purchase Decision: -It’s the positive intention of the consumer that leads to a
purchase decision. Decision to purchase implies consumer commitment for a product or
a service. Practically it is the stage in which consumer is taken into a purchase of the
product which is selected by the consumer in the earlier stages.
Post Purchase Behavior: -Post purchase behavior reaction stands for the behavior
of a consumer after a commitment to product has made. This post purchase behavior
may be a set of positive or negative feelings. Positive feelings go toward satisfaction
and negative feelings go for dissatisfaction.
The motorcycle purchase decision is affected by the personality and life style of an
individual as well as the product features. On the basis of this they can be divided
personal into personal and product factors.
46
Product Factors:Product characteristics affect the final purchase decision of the
consumer / buyer. Before purchasing any buyer or customer gives due consideration to
its physical characteristics and the services provided.
3. Brand Image: There is cut throat competition in the motor cycle market. The
leaders in this arena are Hero Honda and Bajaj. Brand preference and consumer
regarding quality; looks distribution networks, after sale services and supporting
network.
CHAPTER 4
“Good better best, never let it rest till your good is better and your better is
best”.
47
To know the factors which affect the consumer buying behavior.
CHAPTER 5
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
Research Methodology comprises defining and redefining the problem, formulating hypothesis
or suggesting solution, collecting, organizing and evaluating the data, making deduction and
reaching to conclusions and determines whether the formulated hypothesis is right and wrong.
Research Methodology is a way to solve research in study and solving research problems along
48
with logic behind them are defined through research methodology.
SAMPLE DESIGN
Sample design is that part of universe, which we select for the purpose of investigation.
On the basis of sample, we can predict and generalize the behavior of mass phenomena.
The researcher must decide the way of selecting sample. Sample can be either
probability samples or non-probability samples. So here in this project I have taken the
non- probability samples of the research works.
SAMPLE FRAME
It is also known as “Source of list” from which sample is to be drawn. The sample
frame is as following: Area ofTricity.
SAMPLE SIZE
It refers to the number of items to be selected from the universe to constitute a sample.
An optimum sample is one, which fulfills the requirement of efficiency, representative,
reliability, and flexibility. So sample size for comparsion study of Bajaj and Hero
Honda is 150.And the sampling used here are convenient sampling.
DATA COLLECTION
Primary Data:
Whatever the data I have collected, it is primary data which was collected with help of
a questionnaire by asking directly to the consumers.
49
a) Questionnaire:
For the above purpose and to get a better insight I needed to conduct a consumer
survey. I gave questionnaire to respondent so that they can fill it and return to me.
I preferred questionnaire method because it does not pressurize the consumer and
in this way he gives correct information about the questions, which are asked to
him in the questionnaire.
b) Direct Interview:
I have also conducted direct interview in some areas with consumer of Bajaj and
Hero Honda. Why I have done so because my questionnaire was open-ended, so
respondents could not express their views thoroughly but in personnel interview we can
do it much better than questionnaire.
Secondary Data:
I have also collected the secondary data for research work, which I have taken from
Bajaj and Hero Honda’s internal records, trade and business publications, and various
sites related to Bajaj and Hero Honda.
50
TECHNIQUES USED FOR DATA ANALYSIS
51
CHAPTER 6
DATA ANALYSIS
Number of Respondents
5%
19%
23%
Income
Group(Monthly
in Rupees) 0-10,000 10,000-15,000 15,000-20,000 20,000 or More
Number of 79 34 29 7
Respondents
Interpretation:-
From the above chart it is clear that majority of respondents i.e. 79 have motorcycle
whose monthly income lies between 0- 10,000 Rupees. 34 respondents lies between
Rs.10,000-15,000 income groups, 29 respondents lies between income group
15,00020,000 Rupees andvery small group of respondents who have motorcycle i.e. 7
lies between income group more than Rupees 20,000.
52
Category Professional Student Serviceman Businessman
Number of 29 43 56 22
Respondents
Number Of Respondents
15% 19%
37% 29%
53
Interpretation: -
In the above chart it shows the categories of society that include 29 respondents are
professional (include Lawyers, Doctors, CA`s), 43 respondents are students, 56
respondents are serviceman and 22 respondents are those who run their own business.
54
Q (3): Among these two which company’s motorcycle do you have?
Number of Respondents 89 61
Number Of Respondents
Hero 41%
Honda Bajaj
59%
55
Interpretation: -
Out of 150 respondents, 89 have Hero Honda motorcycles and rest of them i.e. 61
respondents has Bajaj motorcycles. It shows that majority of respondents like Hero
Honda Company motorcycles.
56
Q (4): Which of the following motorcycle do you have?
Number of 5 18 51 21 31 19 5
Respondent
s
60
50
40
30
Number Of Respondents 20
10
Motorcycles Name
Interpretation:-
Out of Hero Honda motorcycles 51 respondents have Splendor which is leader in Hero
Honda motorcycles then 18 respondents have Passion Plus ,5 respondents have CBZ
and in case of Bajaj 21 respondents have Discover ,31 respondents have Pulsar , 19
respondents have Platina and 5 respondents have other motorcycle( it include 1 Hero
Honda CD 100,1 Hero Honda Dawn,2Bajaj Caliber ,1 Bajaj CT 100).
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Q (5): How long you have been driving your motorcycle?
Number of 37 63 42 8
Respondents
63
70
60
42
50 37
40
30
No Of Respondents 20 8
10
0
Years
58
Interpretation: -
Out of the 150 respondents 63 respondents are those who have been driving their
motorcycle for last 3 years, 37 respondents are those who recently bought the
motorcycle,, 42 respondents are those who have been driving their motorcycle for last
5 years and only 8 respondents are those who have been driving their motorcycle for
more than last 5 years.
Number of 30 40 18 12 26 14 10
Respondents
7%
9% 20%
17%
59
Interpretation: -
In the above chart majority of respondents i.e. 27% respondents bought due to the price
factor, 20% bought due to the brand image and only,17% respondents are those who get
influenced by good resale value in the market, 12% respondents bought motorcycle due
to the status symbol, 9% respondents bought motorcycle due to the conformability of
motorcycle. 8% respondents get influenced by product design, and 7% respondents
consider functional performance while buying the motorcycle.
Number of 35 20 32 63
Respondents
60
Business; 23%
Office Going; 42%
Business Joy Riding College Going Office Going
Interpretation:-
61
Out of 150 respondents, majority of the respondent’s i.e.42% respondents for
office going. 23% respondents buy motor-cycle for business purpose, 14% for joy
riding, 21% for college going.
Q (8): Are you aware of all the models of motorcycles made available
to people by these two company’s (Hero Honda and Bajaj)?
Response Yes No
10%
Yes No
90%
62
Interpretation: -
Above chat shows that 135 respondents are those who are fully aware of all the
models of Hero Honda and Bajaj company’s motorcycles. Only 15 respondents are
those who are not fully aware about all the models available by these two companies.
Q (9): What is source of information that made you opt for this
motorcycle?
Number of 62 9 15 49 15
Respondent
s
63
10%
41%
TV Ads Newspaper Ads Magazines
33% Friends and Relatives Bike Dealers Suggestions
10% 6%
Interpretation: -
The above chart shows that sources of information from where the respondents
get information before the purchase of motorcycle. 62 respondents said that they get
information from TV Ads, 9 respondents get information from Newspaper, 15
respondents get information from Magazines, 49 respondents get information from
Friends and Relatives, 15 respondents get information from Bike Dealers.
Q (10): How much are you satisfied with your present motorcycle?
64
Response Very Much Satisfied Average Dissatisfie Very Much
Satisfied d Dissatisfie
d
Number 59 56 30 4 1
of
Responde
nts
59 56
Number Ofspondents
30
4 1
Very Much Satisfied Average Very Much Dissatisfied
Responses Of Respondents
65
Interpretation: -
Number of Respondents 63 55 32
21%
42%
Hero Honda Bajaj No
37%
66
Interpretation: -
Out of 150 respondents, 118 respondents said that company’s financial schemes are worthwhile
and 32 respondents said that financial schemes offered by the company were not worthwhile.
Out of 118 respondents who are satisfied with financial schemes of company’s it include 63
Number of 46 35 39 30
Respondents
67
50
45
40
35
30 46
25 39
20 35 30
15
10
Number Of Respondents 5
0
Factors
Interpretation
CHAPTER 7
Although full efforts have been made in this study, still because of following
limitations a more detailed research is required to reach to the effective conclusion.
68
Research work is carried out in the local area of Chandigarh only, so the
findings may not applicable to the different other parts of the Country because
of Social and Cultural differences
69
FINDINGS
70
due to the conformability of motorcycle. 8% respondents get influenced by product
design, and 7% respondents consider functional performance while buying the
motorcycle.
VII. Out of 150 respondents, majority of the respondent’s i.e.42% respondents for
office going. 23% respondents buy motor-cycle for business purpose, 14% for joy
riding, 21% for college going.
VIII. Out of 150 respondents, 135 respondents are those who are fully aware of all the
models of Hero Honda and Bajaj company’s motorcycles. Only 15 respondents are
those who are not fully aware about all the models available by these two
companies.
IX. Out of 150 respondents, sources of information from where the respondents get
information before the purchase of motorcycle. 62 respondents said that they get
information from TV Ads, 9 respondents get information from Newspaper, 15
respondents get information from Magazines, 49 respondents get information from
Friends and Relatives, 15 respondents get information from Bike Dealers.
X. Out of 150 respondents, the level of satisfaction of respondents. 59 respondents
said that they are very much satisfied with their present motorcycle, 56
respondents are only satisfied, 30 respondents are those whose level of satisfaction
regarding their present motorcycle is average and there are only 4 respondents who
is very much dissatisfied with their present motorcycle and one respondent is there
who is dissatisfied with their present motorcycle.
XI. Out of 150 respondents, 118 respondents said that company’s financial schemes
are worthwhile and 32 respondents said that financial schemes offered by the
company were not worthwhile. Out of 118 respondents who are satisfied with
financial schemes of company’s it include 63 consumer of Hero Honda and 55
consumers of Bajaj.
XII. Out of 150 respondents, 46 respondents gave suggestions to company regarding
quality Improvement, 35 respondents gave suggestion regarding improvement of
their current product design of motorcycle ,39 gave suggestions regarding
improvement in their advertisement campaign and 30 respondents suggested that
company should improve their after sale services.
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CHAPTER 9
CONCLUSION
At the end we can say that India have very good position in two-wheeler
industry. Bajaj and Hero Honda is the major player of two wheeler industries. But the
Hero Honda’ volume is more from Bajaj. In Hero Honda motorcycle’s “Splendor” is the
most saleable motorcycle. According to my research in local areas the Brand Image of
the motorcycle more influences the consumer behavior. Consumer mostly gets
information for buy the motorcycle from T.V ads, friends and relatives .Consumers are
very much satisfied with their current motorcycle. They have no planning to change
their present motorcycle. HONDA more satisfies the customer with comparison to
BAJAJ. Because the Bajaj have not resale value. And its pick up is not good. At the end
we can say that the consumer wants that both companies should improve their present
Quality of motorcycle and after sale services.
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CHAPTER 10
SUGGESTIONS
Both the companies should build-up their services centers in small towns as
well as distant areas for the betterment of their services.
Bajaj should launch one bike which could be considered as durable for e.g. as in
case of Hero Honda, Splendor is one model which is durable and has been
selling for long time.
Both companies should work on the concept of most economical bike for lower-
income group. It is concluded from the survey, such people wants a bike which
costs up to Rs 25,000-30,000 approximate.
Both companies should provide consumer with all the financial resources they
need (Include low interest loan schemes, exchange offers, installment system
etc) under one roof i.e. authorized dealer center.
There should be original spare parts available at the authorized services centers.
Well qualified and experienced staff should be recruited for better services to
the customers.
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BIBLIOGRAPHY
Books
Websites
www.Indiainfoline.com
http://www.herohonda.com
http://www.bajajauto.com
http://www.answers.com/topic/hero-honda
http://www.google.com
http://www.financialexpress.com/old/fe_full_story.php?
content_id=141258
APPENDIX
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QUESTIONNAIRE
Dear Respondent,
This survey will help us understand consumer behavior for motorcycles. Please
note that there is no right or wrong answers to this questionnaire. It will only take 10
minutes of your time.
Name _____________
Age _____________
75
(c) Passion Plus (d) Pulsor
Q8: Are you aware of all the models of motorcycles made available to people by
these two company’s (Bajaj and Hero Honda)?
Q9: Which are the sources of information that made you opt for this bike?
76
(c) Magazines (d) Friends and Relatives
Suggestions --------------------
Q10: How much are you satisfied with your present motorcycle?
Q12: Which factor do you suggest the company should lay emphasis to enhance
its sales?
THANK YOU
77