Hero Honda & Bajaj Final Report

Industry ProfileIndustry Profile

COMPARATIVE STUDY OF HERO HONDA & BAJAJ

BHAGWAN MAHAVEER COLLEGE OF BBA 1

http://www.bajajauto.com/1024/index.asp


1.1 THE FIRST MOTORCYCLE:

"Who invented the first Motorcycle?” It is just likely a simple question, but the answer is too complicated. Just as the automobiles were the answers to the 19 th century. The invention of Motorcycle created the self propelled bicycle.

Motorcycles are descendents of the "safety" bicycle-bicycles with front and rear wheels of the same size, and with a pedal crank mechanism to drive the rear wheel. Those bicycles, in turn, were descended from high-wheel bicycles. The high-wheelers were descended from an early type of pushbike, without pedals, propelled by the rider's feet pushing against the ground. These appeared around 1800, used iron-banded wagon wheels, and were called "bone-crushers," both for their jarring ride and their tendency to toss their riders.

The first commercial design was a three-wheeler built by Edward Butler in Great Britain in 1884. It employed a horizontal single-cylinder gasoline engine mounted

between two steer able front wheels and connected by a drive chain to the rear wheel. However, it would perhaps be incorrect to call it a precursor of the two-wheeled genre of vehicles.

If one counts two wheels with steam propulsion as being a motorcycle, then the first one may have been American. One such machine was demonstrated at fairs and circuses in the eastern United States in 1867, built by one Sylvester Howard Roper of Roxbury, Massachusetts. It was powered by a charcoal-fired two-cylinder engine, whose connecting rods directly drive a crank on the rear wheel. This machine predates the invention of the safety bicycle by many years; so, its chassis is also based on the "bone-crusher" bike.

1.2 Early Automobile Concepts

Most of the development during the early phase concentrated on three - and four -wheeled designs since it was complex enough to get the machines running without having to worry about them falling over. The next notable two-wheeler was the Millet of 1892. It used a five-cylinder engine built as the hub of its rear wheel. The cylinders rotated with the wheel and its crankshaft constituted the rear axle.

The first successful two-wheeler, though, was the Hildebrand & Wolf Mueller, patented in Munich in 1894. It had a step-through frame, with its fuel tank mounted on the down tube. The engine was a parallel twin, mounted low on the frame, with its cylinders going fore-and-aft. The connecting rods linked directly to a crank on the rear axle, and instead of using heavy flywheels for energy storage between cylinder firing, it used a pair of stout elastic bands, one on each side of the cylinders, to help out on the compression strokes. It was water-cooled, and had a water tank/radiator built into the top of the rear fender.



In 1895, the French firm of DeDion-Buton built an engine that was to make the mass production and common use of motorcycles possible. It was a small, light, high revving four-stroke single, and used battery-and-coil ignition, doing away with the troublesome hot tube. Bore and stroke figures of 50 mm by 70 mm gave a displacement of 138 cc. A total loss lubrication system was employed to drip oil into the crankcase through a metering valve, which then sloshed around to lubricate and cool components before dumping it on the ground via a breather. DeDion-Buton used this 0.5 hp power plant in road-going tricks, but the engine was copied and used by everybody, including Indian and Harley-Davidson in the U.S. although a person named Pennington built some machines around 1895(it is not certain that whether any of them actually ran). The first motorcycle was the orient-aster, built by the Metz Company in Waltham, Massachusetts, in 1898. It used an aster engine that was a French built copy of the DeDeon-button and predated Indian (1901) by three years and Harley Davidson (1902) by four.

The Indian Motorcycle Company, Springfield, introduced the AV-Twin in 1903, updated with two- and three-speed gearboxes that were further refined with swing arm rear suspensions. The first motorcycle with electric start and a fully modern electrical system, the Hendee Special from the same company, astounded the industry in 1913. Before World War I, IMC was the largest motorcycle manufacturer in the world producing over 20,000 bikes per year.

From when company gets popularity:

The popularity of the vehicle grew, especially after 1910. By 1900, many manufacturers were converting bicycles, or pedal cycles as they were sometimes called, by adding small, centrally mounted spark ignition engines. The need for reliable constructions led to road trial tests and competition between manufacturers. The original Tourist Trophy races were held on the Isle of Man in 1907 as reliability or endurance races. Such events have been the proving ground for many new ideas-from the early two-stroke-cycle designs to the supercharged, multi-valve engines mounted on aerodynamic, carbon fiber reinforced bodywork engines.

In 1916, the Indian Motorcycle Company introduced the Model H racer, and placed it on sale at the astronomical price of $350. It featured overhead-valve heads with four valves per cylinder, and was easily capable of speeds of over 120 mph. In various forms, it was raced on the dirt track as well as on the boards with very great success. It is unknown how many of the 8-valve racers were manufactured, but production was very small indeed; most machines were ridden either by factory riders or were "loaned" to promising privateers.

During World War I, all branches of the armed forces in Europe used motorcycles principally for dispatching. After the war, it enjoyed a sport vogue until the Great Depression began in 1929.

After the World War II, a revival of interest in motorcycles lasted into the late 20th century, with the vehicle being used for high-speed touring and sport competitions. The more sophisticated motor scooter originated in Italy soon after World War II, led by the



manufacture of a 125-cc model. Since then, an increasing number of powerful bikes have blazed the roads.

During the 1950s, the practice of attaching auxiliary engines to bicycles in Western Europe and parts of the United States led to the development of a new type of light motorcycle, the moped. Originating in Germany as a 50-cc machine with simple controls and low initial cost, it was largely free of licensing and insurance regulations except in Great Britain.

Environmental Threat and Opportunity Profile (ETOP)

ETOP is also Known as ENVIRONMENTAL IMPACT MATRIX is a summarized depiction of environmental factor and likely impact of the organization. When the environmental analysis is undertaken on formal and systematic way. It is imperative that the results are structured. ETOP is the most useful way of structuring the result of environmental analysis.

ETOP MODEL

Environmental factor Degree Favorable/Unfaverable

Economic Environment

Growing affluence around URBAN consumers, Raising Disposal Income and living standards in urban area

Market EnvironmentAuto mobile sector a virtual oligopoly with for major manufacture buyer

Critical and better inform Overall industry growth rate

Growth rate for niche segments like sports , racing , riding

Social environmentalThis environment is friendly transport option

Wide usage of bike like communiting to work, school, college, and office use of bike

Technological environmental

Technological up gradation like Digital Meter, Air cooling System ,Engine Cc, make wheel, tubeless tyre, Rear broad tyre



Nature environmentAuto mobile to raise air pollution so it is affect on “Green House Gases” in the atmosphere due to the burning of fuel

Some time create Shortage of Raw Material in the nature market. At that time demand is more and raw material is less in the market.

Up arrows indicate favorable impact, down arrows Indicate unfavorable impact

While Horizontal arrow indicate neutral impact

Major Players

HERO HONDA MOTORS LTD (HHML) BAJAJ AUTO LTD (BAJAJ AUTO) TVS MOTOR COMPANY LTD (TVS) YAMAHA MOTOR PVT. LTD

1) HERO HONDA MOTORS LTD:

Hero Honda Motors Limited, based in Delhi, India, is the world's largest manufacturer of motorcycles1. Hero Honda is a joint venture that began in 1984 between the Hero Group of India and Honda of 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. MORE DETAILS OF HEROHONDA WILL BE DISCUSSED IN THIS ABOVE

2) BAJAJ AUTO LTD :

Bajaj auto is a major Indian automobile manufacturer. It is India’s largest and the world's 4th largest two- and three-wheeler maker [citation needed]. pantnagar in uttaranchal. Bajaj auto makes and exports motor scooters, motorcycles and the auto rickshaw.

the forbes global 2000 list for the year 2005 ranked Bajaj auto at 1946.

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 who is worth more than us$1.5 billion



3) TVS MOTORS:

In 1980 TVS 50, India's first two-seater moped rolled out of the factory at Hosur in Tamil Nadu, Southern India. A byword for reliability, the TVS 50 had proved itself promising and successful in every test and paved a way for many successes for TVS Suzuki. Likewise the TVS champ and super Champ gave a reliable and sturdy two wheeler to public, who wanted looks fused with economy. These two wheelers together redefined the category of mopeds in India. TVS later left its collaboration with Suzuki and started to manufacture its own vehicles.

TVS Motors Company is currently the third largest two wheeler company in India with sales of 107,117 units (as of June 2007). The company exported 9,133 units of two wheelers in June 2007.

4) YAMAHA MOTORS :

Yamaha made its initial foray into India in 1985. Subsequently, it entered into a 50:50 joint venture with the Escorts Group in 1996. However, in August 2001, Yamaha acquired its remaining stake as well, bringing the Indian operations under its complete control as a 100% subsidiary of Yamaha Motor Co., Ltd, Japan.

India Yamaha Motor operates from its state-of-the-art-manufacturing units at Faridabad in Haryana and Surajpur in Uttar Pradesh and produces motorcycles both for domestic and export markets. With a strong workforce of 2000 employees, India Yamaha Motor is highly 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-stroke motorcycle 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). The other key players in the two-wheeler industry are KINETIC MOTOR COMPANY LTD (KMCL), KINETIC ENGINEERING LTD (KEL), LML LTD (LML), MAJESTIC AUTO LTD (MAJESTIC AUTO), ROYAL ENFIELD LTD (REL) AND HONDA MOTORCYCLE & SCOOTER INDIA (P) LTD (HMSI).



ANNUAL REPORT OF THE HERO HONDA COMPANIES YEAR 2008-09

Financial Highlights (Rupees in Crores)

Particulars2004-05 2005-06

2006-07 2007-082008-09

Sales

Growth in sales (nos.) - %

Total net income

Growth in total income - %

Profit before tax

Profit after tax

Share capital

Reserves and surplus

Total debt

Net fixed assets

Total assets (net)

Market capitalisation

EVA

26,21,400

26.6

7,559

26.1

1,217

810

39.94

1,453

202

715

1,695

10,943

564

30,00,751

14.5

8,870

17.4

1,412

971

39.94

1,969

186

994

2,195

17,781

641

33,36,756

11.2

10,090

13.7

1,246

858

39.94

2,430

165

1,355

2,635

13,753

485

33,37,142

0.01

10,517

4.2

1,410

968

39.94

2,946

132

1,549

3,118

13,869

575

37,22,000

11.53

12,540

19.2

1,781

1,282

39.94

3,761

78

1,694

3,879

21,390

835

Key Ratios

Particular 2004-05 2005-06 2006-07 2007-08 2008-09

Long term debt/Equity

OPBDIT*/Income from operations-%

OPBT**/Income from operations-%

Profit after tax/ Income from operations-%

Nil

16.0

14.8

10.9

61.6

Nil

16.0

14.6

11.1

55.5

Nil

12.2

10.8

8.6

38.3

Nil

13.3

11.8

9.3

35.5

Nil

14.2

12.7

10.4

37.8



Return on average equity- %

Return on average capital employed- %

EVA/Capital employed-%

Dividend per share (Rs.)

Dividend Payout- %

Earning per share (Rs.)

Market value/book value (times

80.9

37.5

20.0

56.3

40.6

7.3

72.3

32.9

20.0

46.9

48.6

8.8

51.6

20.1

17.0

46.3

43.0

5.6

49.0

20.0

19.0

45.9

48.5

4.6

50.9

23.9

20.0

36.5

64.2

5.6

NOTES

* OPBDIT: Operating Profit before Depreciation, Interest and Tax

** OPBT: PBT before Other income

ECONOMIC VALUE ADDED (EVA) STATEMENT

(Rupees in Crores)

2004-05 2005-06 2006-07 2007-08 2008-09

Average cap employed

Average debt/ average capital (%)

Average equity /average capital(%)

Cost of debt (% post-tax)

Cost of equity

Beta

Cost of risk free debt (%)

Market premium (%)

Cost of equity (%)

EVA

Return on capital employed (%)

Weighted average cost of capital (%)

EVA/Capital employed (%)

1504

1.8

98.2

0.7

1.01

6.7

10

16.74

564

54.0

16.5

37.5

1945

1.3

98.7

1.0

0.98

7.52

10

17.32

641

50.0

17.1

32.9

2415

1.1

98.9

0.6

0.75

8.15

10

15.65

485

35.6

15.5

20.1

2877

1.1

98.9

0.9

0.59

7.94

10

13.83

575

33.7

13.7

20.0

3499

0.6

99.4

1.6

0.59

6.99

10

12.85

835

36.7

12.8

23.9



ENTERPRISE VALUE

Market capitalization

Add: Debt

Less: financial Assets

EV(Enterprise Value)

EV/Yr. End Capital Employed(Times)

10943

202

2044

9101

5.4

17781

186

2221

15746

5.9

13753

165

2010

11909

4.5

13869

132

2698

11303

3.6

21390

78

3588

17880

4.6

FINANCIAL RESULTS

the Audited Statement of Accounts for the financial year ended March 31, 2009.

(Rupees in crores)

for the year ended

March 31,2009

March, 31,2008

Gross Sales 13,543.09 12,038.53

Net Sales and other Income 12,539.84 10,517.22

Profit before Finance charges and Depreciation 1,930.44 1,534.79

Less: Finance charges

Depreciation

(31.68)

180.66

(35.81)

160.32

Profit before tax (PBT) 1781.46 1410.28

Less: Provision for tax

Current

475.65

436.81

- Deferred

19.06

1.20

- Fringe Benefit Tax (FBT)

475.65

19.06

4.99

1,281.76

2,021.77

3,303.53

399.38

67.87

436.81

1.20

4.39

967.88

1,594.78

2,562.66

379341

64.48



Profit after tax (PAT)

Add: Balance of profit brought forward

Balance available for appropriation

Appropriations

Dividend

- Proposed Final

Corporate Dividend Tax

Transfer to General Reserve

Balance carried to Balance Sheet

Dividend (%)

Basic and Diluted Earnings Per Share (EPS)(Rs.)

129.00

2,707.28

1,000

64.19

97.00

2,021.77

950

48.47


Introduction of the companyIntroduction of the company




2.1 About Hero-Honda (History)

As we all know that the HERO HONDA IS super hero of the current automobiles sectors undisputedly, they are the king of bike Market and this position is achieved by them in just one and a half decade and now it become “DESH KI DHADKAN”.

What stand out as a joint venture between Hero group and Honda motors, company of Japan, are today the leading manufacturers of India’s largest selling motorcycle. Coming into existence on January 19, 1984. HERO HONDA Motors Ltd. gave India nothing less than a revolution on two wheels, made even more famous by the “Fill it-Shut it-forget it” Campaign. Driven by the trust of over 35 Lakes customers, the HERO HONDA products range today commands as much as 47% making it a veritable giant in the industry. Add to that technological excellence, expansive dealer network and retable after sales services becomes it a customer friendly company. The level of growth can be determined as per the company’s sales figure over the years.

In fact every second bike sold in the India today is a HERO HONDA ! Customer satisfaction, a high quality product. The strength of HONDA technology and the HERO group’s dynamism has helped Html scale new frontiers and exceed Limits.

In the words of “Mr. Brijmohan Lal Munjal the chairman and M.D.” we will continue to make every effort required for the development technological Innovation, investment in equipments and facilities and through enticement management.

Profile:

Hero Honda Motorcycle Ltd.



TypePublic company BSE: HEROHONDA Motorcycle

Founded January 19, 1984 in Gurgaon, Haryana, India

Headquarters Haryana, India

Key people

Om Prakash Munjal, Founder

Mr. Brijmohan Lall Munjal, ChairmanMr. Toshiaki Nakagawa, Joint Managing

Director

Mr. Pawan Munjal, Managing Director

Industry Automotive

Products Motorcycles, Scooters

Revenue U$ 2.8 billion

Website http://www.herohonda.com/site/home/home.asp

2.2 Mission

We are a global family with a proud heritage, passionately committed to providing personal mobility for people around the world. We anticipate consumer needs and deliver outstanding products and services that improve people’s lives and get the ranking position in the market.An overview of the bike segment of the Indian automobile industry in the recent times indicates a series of exciting and interesting changes that have transformed the global automobile sector substantially. India has emerged on the global scene as one with a host of world class competitive bike manufacturers, high end technological prowess. A huge market for quality and stylish bikes, new makes and models of bikes are making an appearance in India.

Hero-Honda’s Mission is to strive for synergy between technology, systems and human resource, to produce products and services that meet the quality, performance and price


http://www.herohonda.com/site/home/home.asp

http://en.wikipedia.org/wiki/Website

http://en.wikipedia.org/wiki/Revenue

http://en.wikipedia.org/wiki/Product_(business)

http://en.wikipedia.org/wiki/Industry

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Haryana

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Haryana

http://en.wikipedia.org/wiki/Gurgaon

http://www.bseindia.com/price_finder/stockreach.asp?scripcd=500182

http://www.bseindia.com/price_finder/stockreach.asp?scripcd=500182

http://en.wikipedia.org/wiki/Bombay_Stock_Exchange

http://en.wikipedia.org/wiki/Public

http://en.wikipedia.org/wiki/Category:Types_of_companies

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http://en.wikipedia.org/wiki/Image:Flag_of_Japan_(bordered).svg


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aspiration of its customers. At the same time maintain the highest standards of ethics and social responsibilities.

2.3 Key Milestone of Hero-Honda

Year Event

1983

1984

Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signedShareholders Agreement signed

1985 First motorcycle "CD 100" rolled out

1987 100,000th motorcycle produced

1989 New motorcycle model - "Sleek" introduced

1991 New motorcycle model - "CD 100 SS" introduced500,000th motorcycle produced

1992 Raman Munjal Vidya Mandir inaugurated - A School in the memory of founder Managing Director, Mr. Raman Kant Munjal

1994 New motorcycle model - "Splendor" introduced 1,000,000th motorcycle produced

1997 New motorcycle model - "Street" introduced Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated

1998 2,000,000th motorcycle produced

1999 New motorcycle model - "CBZ" introduced Environment Management System of Dharuhera Plant certified with ISO-

14001 by DNV Holland



Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of

2000 4,000,000th motorcycle produced Environment Management System of Gurgaon Plant certified ISO-14001

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

"Hero Honda Passport Programme" - CRM Programme launched

2001 New motorcycle model - "Passion" introducedOne million production in one single yearNew motorcycle model - "Joy" introduced

5,000,000th motorcycle produced

2002 New motorcycle model - "Dawn" introducedNew motorcycle model - "Ambition" introduced

Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh and Zaheer Khan as Brand Ambassadors

2003 Becomes the first Indian Company to cross the cumulative 7 million sales mark

Splendor has emerged as the World's largest selling model for the third calendar year in a row (2000, 2001, 2002)

New motorcycle model - "CD Dawn" introducedNew motorcycle model - "Splendor +" introduced

New motorcycle model - "Passion Plus" introducedNew motorcycle model - "Karizma" introduced

2004 New motorcycle model - "Ambition 135" introducedHero Honda became the World No. 1 Company for the third consecutive

year.Crossed sales of over 2 million units in a single year, a global record.

Splendor - World's largest selling motorcycle crossed the 5 million markNew 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 rowNew motorcycle model - "Super Splendor" introduced

New motorcycle model - "CD Deluxe" introducedNew motorcycle model - "Glamour" introducedNew motorcycle model - "Achiever" introduced

First Scooter model from Hero Honda - "Pleasure" introduced

2006 Hero Honda is the World No. 1 for the 5th year in a row

2007 Hero Honda is the World No. 1 for the 6th year in a row

New 'Splendor NXG' launchedNew 'CD Deluxe' launched

New 'Passion Plus' launched



New motorcycle model 'Hunk' launched20 million production milestone achieved

2008 Hero Honda Haridwar Plant inaugurationNew 'Pleasure' launched

Splendor NXG lauched with power start featureNew motorcycle model 'Passion Pro' launched

New 'CBZ Xtreme' launched25 million production milestone achieved

CD Deluxe lauched with power start featureNew 'Glamour' launched

New 'Glamour Fi' launched

2009 Hunk' (Limited Edition) launchedSplendor completed 11 million production landmarkNew motorcycle model 'Karizma - ZMR' launched

Silver jubilee celebrations

2.4 About BAJAJ (HISTORY)

Bajaj Auto limited is one of the largest two wheeler manufacturing company in India apart from producing two wheelers they also manufacture three wheelers. The company had started way back in 1945. Initially it used to import the two wheelers from outside, but from 1959 it started manufacturing of two wheelers in the country. By the year 1970 Bajaj Auto had rolled out their 100,000th vehicle. Bajaj scooters and motor cycles have become an integral part of the Indian milieu and over the years have come to represent the aspirations of modern India. Bajaj Auto also has a technical tie up with Kawasaki heavy industries of Japan to produce the latest motorcycles in India which are of world class quality The Bajaj Kawasaki eliminator has emerged straight out of the drawing board of Kawasaki heavy industries. The core brand values of Bajaj Auto limited includes Learning, Innovation, Perfection, Speed and Transparency.

Bajaj Auto has three manufacturing units in the country at Akurdi, Waluj and Chakan in Maharashtra, western India, which produced 2,314,787 vehicles in 2005-06. The sales are backed by a network of after sales service and maintenance work shops all over the country.

Bajaj Auto has products which cater to every segment of the Indian two wheeler market Bajaj CT 100 Dlx offers a great value for money at the entry level. Similarly Bajaj Discover 125 offers the consumer a great performance without making a big hole in the pocket.



PROFILE:

Founder Jamnalal Bajaj

Year of Establishment 1926

Industry Automotive - Two & Three Wheelers

Business Group The Bajaj Group

Listings & its codes BSE – Code: 500490; NSE - Code: BAJAJAUTO

Presence Distribution network covers 50 countries.Dominant presence in Sri Lanka, Bangladesh, Columbia, Guatemala, Peru, Egypt, Iran and Indonesia.

Joint Venture Kawasaki Heavy Industries of Japan

Registered & Head Office Akurdi Pune - 411035IndiaTel.: +(91)-(20)-27472851 Fax: +(91)-(20)-27473398

Works Akurdi, Pune 411035

Bajaj Nagar, Waluj Aurangabad 431136

Chakan Industrial Area, Chakan, Pune 411501

E-mail [email protected]

Website www.bajajauto.com


http://www.bajajauto.com/

mailto:[email protected]

http://www.surfindia.com/finance/security-profile/bajaj-auto-finance-limited.html


SWOT ANALYSIS OF the HERO HONDA COMPNY

(Strength, Weakness, Opportunities, Threats)

1. Strength

The companies Have Good Brand Image.

High Growth Sales.

Hero Honda Company has great experience. It sold 3 million bikes of the year 2005, while sales of the year 2009 in 3.7 million, so it is increase growth in sales

Particulars 2005-06 2006-07 2007-08 2008-09

Total Sales 30,00,751 33,36,756 33,37,142 37,22,000

Growth in sales (nos.) - % 14.5 11.2 0.01 11.53

Providing a good training to his new employees. HHML contribute high financial performance

the world’s largest two-wheeler manufacturer, today reported 31% per cent growth in profit after tax (PAT) at Rs 275 crore for the third quarter (October-December) of this financial year (2007-08). Hero Honda’s profit after tax in the corresponding period last fiscal stood at Rs 209.18 crore.

2. Weakness :

After Sales Service Are very Poor

Less promotion/advertising: hero Honda are very less as compared to its competitor

High maintenance

Some of the product of Hero Honda like karizma requires high maintenance compare to another product like splender plus, passion plus.

3. Opportunities : To adoption of new model Of Bick and increasing and Communication



High GDP & increasing income of the customer:

As a nation, India has prospered. People living in households with incomes ranging from 2 lakh – 10 lakh a year has grown from 15 million in 1991 to 100 million in 2005-06. Not surprisingly, therefore, between 1991 and now, the two wheeler market has grown more than four times. Urban India is growing at a rapid pace. Data for top 24 cities in India shows migration to higher income levels growing at over 40 per cent per annum. Prosperity in rural India is also a significant, with 43 per cent of households in middle and the high income groups coming from rural India.

So Company Provide Better Service to Increase More Production like in industry area some time Bike is Break down at that time company Provide Mobile Garage special service. So it is more beneficial to increasing production

4. Threat : They have large number of Competitor. So that the Reduce

the customer

Some time market influence by Politics. Politics factor affect to business it is affect by price on bike, shortage of raw material

In inflation to increasing cost of raw material used production go high and selling price of the product go high that decrease demand of the two wheelers


Research MethodologyResearch Methodology




3.1 Market ResearchMarketing research is the function which links the consumer, customer and Public to the market through information-information used to identify and define marketing opportunities and problems, generate, refine and evaluate marketing actions, monitor understanding of marketing as a process. Marketing Research Is The Systematic Design Collection, Analysis And Reporting Of Data And Findings Relevant To A Specific Marketing Situation Facing The Company. Defination:The American Marketing Association (AMA) has defined marketing research as follows.

“Marketing research is the function which links the consumer, customer and public to the dealer through information used to identify and define marketing opportunities and problems, evaluate marketing actions, monitor marketing performance and improve understanding of marketing as a process.

Marketing research specifies the information required to address these issues, designs the method for collecting information: manages and implements the data collection process; analysis the results: and communicates the findings and their implications.”

3.2 Research design and choiceDescriptive research gives an account of frequency or the characteristics of some of the variables where casual research help in determined cause and effective relationship.

The study seeks to find out the consumer buying behavior it purchasing Hero Honda two-wheeler motorcycle. The study also aims of future trends in two-wheeler motorcycle new innovation.



Research Design is the plan structure and strategy of investigation concerned so as to obtain answer to research questions and to control variances.

Research design is classified into three types:(1) Exploratory Research

(2) Descriptive Studies

(3) Causal Designs

3.2.1 EXPLORATORY RESEARCH

This research is focus on the discovery of ideas. In a business where the sales have been decaling for the past few months, the management may conduct a quick study to find out what would be the possible explanations the sales might have declined on account of a number of tutors such as the derivation in the quality of the product, increased competition, inadequate or ineffective advertising lack of efficient & trained salesmen or use of the wrong channels of distribution.

This research is mainly intended to discover some ideas or reasons for e.g. to find out the reasons responsible for a decline in sales & service etc. The exploratory research is generally based on secondary data which are speedily available

3.2.2 DESCRIPTIVE RESEARCH

The descriptive research is generally conducted where the researcher wants to know some characteristics of the population e.g. Age, sex, income, services etc. It may be based on the secondary data or primary data other cases when a descriptive study could be taken up are when he is interested in knowing the proposition of people in a given population, so he is not careful in the initial stages, he may find that rather the data collected fare identity or procedure used is cumbersome & expensive.

3.3.3 CAUSAL RESEARCH

Thus research is undertaken when the researcher want to investigate causes effective relationship between two or more variable.

Among these three research designs I used exploratory research design because there is a reason that which company has priority and on which basis that I have to find out and also used descriptive research design to know about respondents characteristics.

For this research I used exploratory research design.



3.3 Learning Objectives Objectives:

For getting knowledge about Bikes. [Selling, Mission, Milestone etc.]

To know the competition with Bajaj. To analyze comparison between Hero-Honda and Bajaj. To study Brand Image & service of the companies To Know the Respondent view of the strangeness of bike

Benefits: A Study is useful for my awareness regarding terms of

competition. This study is helpful to increase my knowledge regarding

marketing of bikes

3.4 Analytical Technique

1. Likert Scale:

In this study research has used likert scale

IT is developed by Rensis Likert

IT consists of statements that express either a favorable or an unfavorable attitude towards object of interest participants are asked to agree or disagree with each statements

Close – Ended Question:

Researcher has used close ended question, close ended question is a structured one with 2 or more alternative responses from with respondent can choose

Close ended question contain standard answers

Close ended question are simple to administer & easy to analysis

Dichotomous Question:

In this study researcher has also used dichotomous question. A dichotomous question can be answered in one of the 2 alternatives

2. Survey:


Theoretical AspectTheoretical Aspect


Survey is method of collecting information about the particular topic from the people by the use of survey we can arrive at specific result of particular topic

Survey method

In this study researcher has used questionnaire method of survey.

In this study researcher has done survey in Surat city

3.5 Limitation of the Study

I have done my best in preparing this report, still there some obstacles that some in the way. These limitation sometimes can be overcome but sometime they become unavoidable some of the limitation. Which I faced in preparing this project is as follows:

1. Sometime respondent is not interested in filling up the questionnaires so they don’t provided prevalent information.

2. The overall survey was time consuming & expensive.3. The sample may not exactly represent the population as the time period of the

two month formed to be in sufficient and the entire project was to be completed in lots.

4. the study is not cover whole Population it is limited only for the sampling people



1.1 Comparative Analysis

Normally it would seem a simple task for a company to identify its competitor. General motors’ know that Ford is a major competitor and same Bajaj is a major competitor for Hero-Honda in India. So, in simple words the study of competitor survey by organizations is called Comparative analysis.

By preparing this report the organization get the result on them market situation and also market share of the product by analyzing report, the company make implemented and improve their product for dissatisfied customer and make increment in sales.


Findings & Analysis of the ResearchFindings & Analysis of the Research




5.1 Data Analysis

1) Which Company vehicle do you use?

VEHICLE RESPONDENT PERCENTAGE

Hero-Honda 58 58%

Bajaj 31 31%

TVS 4 04%

Yamaha 4 04%

Yo-Bikes 0 00%

Others 3 3%

TOTAL 100 100%



Company Vehicle

58

31

4 40 3

0

10

20

30

40

50

60

70

HEROHONDA

BAJAJ TVS YAMAHA YO-BIKE OTHERS

Name Of bike

Res

po

nd

ent

Comment:-According to above analysis, it is very clear that most of the respondents are using Hero Honda Bike. Out of 100 Respondent 58 respondents are using Hero Honda bike while 31 Respondents are using Bajaj bike and remaining are of the other bike user

2) You Have Which Model?HERO HONDA BAJAJ

Splendor Plus

PassionPlus

Karizma Other Xcd Discover Pulsar Other

23 21 08 10 08 15 10 01



Company vehicle

27

21

8 10 8

1510

105

1015202530

Spl

enlo

rP

lus

Pas

sion

Plu

s

Kar

izm

a

Oth

er

Xcd

Dis

cove

r

Pul

sar

Oth

er

HERO HONDA Bajaj

Bike Model

Res

po

nd

ent

Comment: According To above analysis, it is very clear that most of respondent are using Hero Honda Model. Out of 100 respondent 62 respondent using Hero Honda Model. While 34 respondents are using Bajaj Model and Other Model Of hero Honda are CD100, sleek , other in under Bajaj ct 100, Platina , other

3) For how long year do you use Bike? Time Duration Respondent

0- 1 Year 11

1-3 Year 42

3-5 Year 22

Above 5 year 25

Total 100



Comment:From this chart indicate the Bike strong ness. According to Respondent, Bike has to long time 3Year to 5 Year is 22 Percentage while 1 year to 3 year is 42 Percentage and 25 Percentage Respondent Bike use above 5 year Out of 100 Percentage

5) For what purpose do you use the Bike?Propose Respondent

Office Propose 32

Personal Propose 35

Transportation 25

Other 08

Total 100


Respondant

11

42

22

25

0-1yr

1-3 yr

3-5 yr

above 5 yr


Comment:According to above analysis, it is very clear that most of Respondent bike using for Personal Use. Out of 100 Respondent 35 respondent use bike for personal analysis. While 32 % respondent using bike for Office propose and remaining respondent using bike Transportation and Other.

06) How do you come to know about any New model of the bike?Advertise Respondent

News paper 15

TV 27

Magazines 08

Hoardings 13

Friends 17

Relative 12

Radio 08

Total 100


3235

25

8

05

10152025303540

OfficePropose

PersonalPropose

TranspotationPropose

Other

Propose

Res

po

nd

ent

Office Propose

Personal Propose

Transpotation Propose

Other


Comment:According to above chart, most of Respondent New model arrive in the market. Out of 100 Respondent Know the TV and friends as well as 27 & 17 respondents. And remaining Respondent Know the News paper, Magazines, Hoardings, Radio

07) Do you rate the factor below influence your decision?

Respondent Rank on price Respondent

1 38

2 13

3 16

4 10

5 9

6 6

7 5

8 3


15

27

8

1317

12

8

0

5

10

15

20

25

30Respondent

HOW TO KOW NEW MODEL News Paper

TV

Magazines

Hordings

Friends

Relative

Radio


(7.1)

Comment: According To above chart, Total Respondent (100) of 38 Respondent give more priority to Purchase bike see PRICE.

7.2 According to Respondent Rank influence Bike Purchase Decision on Bike Average?

Respondent Rank on Average Respondent

1 27

2 30

3 13

4 11

5 2

6 9

7 5

8 3

Total 100


Respondent Rank On Bike Decisin purchase

38

1316

10 96 5 3

05

10152025303540

1 2 3 4 5 6 7 8

Price Rank

Res

po

nd

ent

1

2

3

4

5

6

7

8

Respondant Rank On Bike Decision Purchase

2730

1311

2

95

3

0

5

10

15

20

25

30

35

1 2 3 4 5 6 7 8

Average Rank

Res

po

nd

ent

1

2

3

4

5

6

7

8


(7.2)Comment:According to above Chart, Respondents are give Rank 1 to 8 in chart, in a under out of 100 Respondent 30 respondent Give most Priority To Purchase decision.

7.3 According to Respondent Rank influence Bike Purchase Decision on Status Symbol?

Respondent Rank on S.S. Respondent

1 0

2 7

3 9

4 15

5 8

6 14

7 18

8 29

Total 100

(7.3)Comment:According to above Chart, Respondents are give Rank 1 to 8 in chart, in a under out of 100 Respondent 29 respondent Give most Priority To status symbol on bike Purchase decision


Respondant Rank On BIKE DECISION

0

79

15

8

1418

29

0

5

10

15

20

25

30

35

1 2 3 4 5 6 7 8

Status Symbol Rank

Res

po

nd

ent

1

2

3

4

5

6

7

8


7.4 According to Respondent Rank influence Bike Purchase Decision on Service?

Respondent Rank on Service Respondent

1 2

2 12

3 26

4 11

5 16

6 6

7 10

8 17

Total 100

Respondent Rank On BIKE Decisin Purchase

2

12

26

11

16

6

10

17

0

5

10

15

20

25

30

1 2 3 4 5 6 7 8

Service Rank

Res

po

nd

ent

1

2

3

4

5

6

7

8

(7.4)Comment:According to above Chart, Respondents are give Rank 1 to 8 in chart, in a under out of 100 Respondent 26 respondent Give most Priority To service on bike Purchase decision.

7.5 According to Respondent Rank influence Bike Purchase Decision on Style?

Respondent Rank on Style Respondent

1 9



2 19

3 16

4 17

5 16

6 10

7 8

8 5

Total 100

(7.5)Comment:According to above Chart, Respondents are give Rank 1 to 8 in chart, in a under out of 100 Respondent 19 respondent Give more Priority To style on bike Purchase decision.

7.6 According to Respondent Rank influence Bike Purchase Decision on Resale Value?

Respondent Rank on Resale Value Respondent

1 2

2 6

3 10


Respondent Rank on Bike decision Purchase

9

19

16 17 16

108

5

0

5

10

15

20

1 2 3 4 5 6 7 8

Style Rank

Res

po

nd

ent

1

2

3

4

5

6

7

8


4 11

5 16

6 23

7 15

8 17

Total 100

7.6Comment:According to above Chart, Respondents are give Rank 1 to 8 in chart, in a under out of 100 Respondent 28 respondent Give more Priority To Resale Value on bike Purchase decision7.7 According to Respondent Rank influence Bike Purchase Decision on Quality & Durability?


1 3

2 2

3 3

4 16

5 17


Respondent Rank On Bike Purchase Decision

2

6

10 11

16

23

1517

0

5

10

15

20

25

1 2 3 4 5 6 7 8

Resale Value Rank

Res

po

nd

ent

1

2

3

4

5

6

7

8


6 20

7 26

8 13

Total 100

(7.7)Comment:According to above Chart, Respondents are give Rank 1 to 8 in chart, in a under out of 100 Respondent 26 respondent Give more Priority To Quality & Durability on bike Purchase decision on Rank 77.8 According to Respondent Rank influence Bike Purchase Decision on Quality & Durability?


1 18

2 10

3 11

4 9

5 14

6 12

7 12

8 14


Respondent rank On BIKE DECISION

3 2 3

16 1720

26

13

0

5

10

15

20

25

30

1 2 3 4 5 6 7 8

QUALITY & DURABILITY Rank

Res

po

nd

ent

1

2

3

4

5

6

7

8


Total 100

(7.8)Comment:According to above Chart, Respondents are give Rank 1 to 8 in chart, in a under out of 100 Respondent 18 respondent Give more Priority To Quality & Durability on bike Purchase decision on Rank 1

8) How would you rate the following factor of bike with Respect to different Companies? (Out of 5 Point scale) 5 is Highest and 1 is Lowest8.1 According to Respondent Rate on Mileage

HERO HONDA BAJAJ

8 16

6 5

5 7

5 14

76 58Total 100 100


Respondent Rank On Bike Decision Purchase

18

10 119

1412 12

14

0

5

10

15

20

1 2 3 4 5 6 7 8

Engine Cc Rank

Res

po

nd

ent

1

2

3

4

5

6

7

8


(8.1)Comment:According to above chart, In this chart it very clearly seen that out of total 100 respondents 76 respondents replied that Hero-Honda’s bike will be effective in the mileage to Compare Bajaj

8.2 According to Respondent Rate on Pick up

(8.2)

BHAGWAN MAHAVEER COLLEGE OF BBA

HERO HONDA BAJAJ6 12

8 4

3 15

17 17

66 52Total 100 100

40

816

6 5 5 7 5

14

76

58

0

10

2030

40

50

60

70

80

1 2 3 4 5

Respondent Rate

MILEGE

HERO HONDA

BAJAJ


Comment: In this chart it very clearly seen that out of total 100 respondents 66 respondents replied that Hero-Honda’s bike will be effective in the pick up to Compare Bajaj . In chart Bajaj companies bike pick up less effective to towards respondent

8.3 According to Respondent Rate on Maintenance


HERO HONDA BAJAJ

14 15

10 18

17 16

18 23

41 28Total 100 100

41

612 8

43

15 17 17

66

52

0

10

20

30

40

50

60

70

1 2 3 4 5

Respondent Rate

PICK UP

HERO HONDA

BAJAJ


(8.3)Comment:In this chart it very clearly seen that out of total 100 respondents 41 respondents replied that Hero-Honda’s bike will be effective in the maintenance to Compare Bajaj . In chart Bajaj companies bike maintenance less effective to towards respondent. So Bajaj companies vehicle to more useful to maintenance

8.4 According to Respondent Rate on Look / Shape


HERO HONDA BAJAJ

11 22

19 19

22 23

22 23

26 13Total 100 100

42

141510

18 17 16 1823

41

28

05

1015202530354045

1 2 3 4 5

Respondent Rate

MAINTAINANCE

HERO HONDA

BAJAJ


(8.4)

Comment:

In this chart it very clearly seen that out of total 100 respondents 26 respondents replied that Hero-Honda’s bike will be effective in the look compare to Bajaj. In chart indicate the another thing is Bajaj companies have less effective model in look to compare in chart

8.5 According to Respondent Rate on Brand Image

HERO HONDA BAJAJ

18 15

18 30

18 19

19 10

27 26Total 100 100


11

221919

22 23 22 2326

13

0

5

10

15

20

25

30

1 2 3 4 5

Respondent Rate

LOOK / SHAPE

HERO HONDA

BAJAJ


(8.5)

Comment:

In this chart no 8.5 it very clearly seen that out of total 100 respondents 27 respondents replied that Hero-Honda’s bike will be effective in the Brand Image compare to Bajaj. In chart indicate the another thing is Bajaj companies have less effective model in Brand Image to compare in chart

8.6 According to Respondent Rate on Comfortable ride

HERO HONDA BAJAJ

20 22

14 16

15 12

13 17

38 33Total 100 100


1815

18

30

1819 19

10

27 26

0

5

10

15

20

25

30

1 2 3 4 5

Respondent Rate

BRAND IMAGE

HERO HONDA

BAJAJ

2022

1416 1512 13

17

38

33

0

5

10

15

20

25

30

35

40

1 2 3 4 5

Respondent Rate

COMFORTABLE RIDE

HERO HONDA

BAJAJ


(8.6)

Comment:

In chart no 8.6, as above in chart out of 100 Respondent 38 respondents replied hero Honda companies’ bike comfortable ride to compare Bajaj Companies

8.7 According to Respondent Rate on use material in bike

HERO HONDA BAJAJ

25 21

15 19

23 15

10 15

27 30

Total 100 100

(8.7)

Comment:

According to feature admiration out of total respondents 100 respondents have use material of hero-Honda bike 27 while 30 respondents have use material in bike of Bajaj Companies


25

21

15

19

23

15

10

15

2730

0

5

10

15

20

25

30

1 2 3 4 5

Respondent Rate

MATERIAL

HERO HONDA

BAJAJ


8.8 According to Respondent Rate on use material in bike

HERO HONDA BAJAJ

18 19

10 28

7 18

7 13

58 22Total 100 100

8.8

Comment:

According to above chart, Hero Honda Bike resale value is more to Bajaj. On above chart out of 100 respondents of 58 Respondent select the Hero Honda as well as 22 Respondent selects the Bajaj

9) According to Respondent change bike arrive in market?

Yes 35

No 32

Can’t say 33


1819

10

28

7

18

713

58

22

0

10

20

30

40

50

60

1 2 3 4 5

Respondent Rate

Resale Value

HERO HONDA

BAJAJ


Total 100

Comment:

From the above analysis, it is very clear that most of the respondents are say arrive new feature in bike want to buy. Out of 100 respondents 35 respondents are replied YES


In bike Arrive NEW features Are introduced in the bike

Yes, 35

Can't Say, 33

No, 32

Yes

No

Can't Say

FindingsFindings



FindingsFindings


In area wise distribution most of the respondents comes in the group of Katargam.

41 % respondents are students who use the bikes.

35% respondents are there who want to purchase New introduced bike.

23% respondent using Hero Honda Splender plus model.

76% respondent currently using bike in mileage.

Out of total respondents 44 % respondents see the features when they purchase the bike.

38% respondents consider the price criteria then prefer brand and service criteria.


SuggestionSuggestion


The study is not complete without suggestion. Some suggestion is as follow:

Give more free services for more customers.

According to also found that customers suggested that the company should make improvement for increase engine CC and consider maintenance of bike.

The company has to provide some schemes and discount for purchasing a bike.

It is quite costly bike, so the price should be reducing a little.

Hero Honda companies provide 0% interest loan on bike.


ConclusionConclusion


I have derived following on the basis of the analysis.as I have tried to present the best data analysis of comparative study of Hero Honda & Bajaj in from of tables and graphs.I have also tried to understand different patterns, here I find out what are the expectations of customer towards company product and company’s performance over expectation.

After completing this research a conclusion can be made that Hero-Honda bike is very well known brand in the Surat city for effectiveness of the bike and Performance of the bike while Bajaj bikes are well known for its Average and many of the respondents have concluded that Resell value of hero-Honda bike is More than the resell value of Bajaj bike.


ANNEXUREANNEXURE


Comparative Study of HERO HONDA & BAJAJ

1. Personal Detail

Name:

Age:

Sex:

Address:

Contact No:

2. Occupation:

Business Man Student

Employees Other

3. Which Company vehicle do you use?

Hero-Honda Bajaj

TVS Yamaha

Yo-bike Others

4. You Have Which Model?Hero Honda: Splendor plus Passion plus Karizma Other Model



Bajaj: Xcd 125/135 Discover Pulsar

Other Model

5. For how long year do you use Bike?

0-1 yr 1-3 Yr

3-5 Yr Above 5 Year

6. For what purpose do you use the Bike?Office purpose Personal purpose

Transportation Other

7. How do you come to know about any New model of the bike?News paper TV Magazines Hoardings

Friends Relative Radio

8. Do you rate the factor below influence your decision?

Price Style

Average Resale value

Status Symbol Quality & durability

Service Engine Cc

9. How would you rate the following factor of bike with Respect to different Companies?

HERO HONDA BAJAJ

Mileage

Pick up

Maintenance

Look / Shape

Brand Image

Comfortable ride

Use Material In bike



10. In new bikes with good feature come in, then would you like to change your bike?

Yes No Can’t Say

11. Suggestion

Thank you,

Sign


BibliographyBibliography


Books:

1. Name: Marketing Management

Author: Philip Kotler (12th edition)

2. Name: Business policy & strategic Management

Author: Azher Kazmi

3. Name: Research Methodology

Author: G. C. Berry

Websites:

www.herohonda.com

www.bajaj .com

www.annualreport2008-09.com


http://www.annualreport2008-09.com/

http://www.bajaj/

http://www.herohonda.com/

Documents

Hero Honda & Bajaj Final Report