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MINOR PROJECT REPORT
ON: BAJAJ VS. HERO HONDA
Department of Business Administration
Maharaja Surajmal Institute
Submitted By: Submitted To: Mr Jagbir AlahawatShitij Malik BBA(Banking & Insurance)Semester IIIRoll No: 0171491808
1
CERTIFICATE
This is to certify that the project work entitled BAJAJ Vs. HERO HONDA
is a bona fide project carried out by Shitij Malik, BBA(B&I) student,
Maharaja Surajmal Institute (GGSIPU) in Delhi for the fulfillment of the
requirements of the BBA program and the project work has not formed the
basis for the award previously for any degree, diploma or any other
similarities.
Date: Signature (Project Guide)
2
ACKNOWLEDGEMENT
The research on “Comparative Study between Bajaj and Hero Honda” has been given
to me as part of the curriculum in Bachelors Business Administration (banking &
insurance)
I have tried my best to present this information as clearly as possible using basic terms
that I hope will be comprehended by the widest spectrum of researchers, analysts and
students for further studies.
I have completed this study under the able guidance and supervision of Prof. I will be
failed in my duty if I do not acknowledge the esteemed scholarly guidance, assistance
and knowledge. I have received from them towards fruitful and timely completion of this
work.
Mere acknowledgement may not redeem the debt I owe to my parents for their
direct/indirect support during the entire course of this project.
3
Table of contents
CHAPTERNO.
CHAPTER NAME
Chapter 1 Introduction1.1 Objectives1.2 Research Methodology1.3 Limitations
Chapter 2 Corporate Overview2.1 Company’s History2.2 Profile2.3 Key Persons2.4 Timeline Of Releases2.5 Marketing Strategies2.6 SWOT Analysis
Chapter 3 Analysis and Interpretation
Chapter 4 Conclusions and Recommendation
Bibliography
Questionnaire
4
5
CHAPTER 1
INTRODUCTION
6
INTRODUCTION
This project is an attempt to give draw out a comparison between Bajaj Auto Ltd & Hero
Honda.
It aims to know perception of consumers regarding bikes, & factors influencing their
choice.
It throws light on the following:-
1. In 1st Chapter you will find the Objectives, Research Methodology and
Limitations of the study.
2. In 2nd chapter you will find an overview of the company profile, history,
marketing strategies , & SWOT analysis of Bajaj & Hero Honda.
3. In 3rd Chapter you will find analysis & interpretations on the project report.
4. In 4th Chapter you will find conclusion and suggestion on the project.
5. In the end you will find the various sources I referred for gathering information.
OUR OBJECTIVES
7
1. To know the market share of Bajaj & Hero Honda.
2. To know the perception of customers regarding bikes.
3. To determine the customers satisfaction regarding bikes.
4. To determine the factors influencing the choice of customers regarding bikes.
RESEARCH METHODOLOGY
8
It is well known fact that the most important step in marketing research process is to
define the problem. Choose for investigation because a problem well defined is half
solved. That was the reason that at most care was taken while defining various
parameters of the problem. After giving through brain storming session, objectives were
selected and the set on the base of these objectives. A questionnaire was designed major
emphasis of which was gathering new ideas or insight so as to determine and bind out
solution to the problems.
DATA SOURCE
Research included gathering both Primary and Secondary data. Primary data is the first
hand data, which are selected a fresh and thus happen to be original in character. Primary
Data was crucial to know various customers and past consumer views about bikes and to
calculate the market share of this brand in regards to other brands.
Secondary data are those which has been collected by some one else and which already
have been passed through statistical process. Secondary data has been taken from
internet, newspaper, magazines and companies web sites.
RESEARCH APPROACH
The research approach was used survey method which is a widely used method for data
collection and best suited for descriptive type of research survey includes research
instrument like questionnaire which can be structured and unstructured. Target
population is well identified and various methods like personal interviews and telephone
interviews are employed.
SAMPLING UNIT
It gives the target population that will be sampled. This research was carried in New
Delhi & Ncr. These were 20 respondents.
DATA COMPLETION AND ANALYSIS
9
After the data has been collected, it was tabulated and findings of the project were
presented followed by analysis and interpretation to reach certain conclusions.
SCOPE
My project was based on the Comparative Study of Bajaj Vs Hero Honda and data
was taken in New Delhi & Ncr only.
LIMITATIONS OF RESEARCH STUDY
10
1. Research work was carried out in Delhi & Ncr only the finding may not be
applicable to the other parts of the country because of social and cultural
differences.
2. The sample was collected using connivance-sampling techniques. As such result
may not give an exact representation of the population.
3. Shortage of time is also reason for incomprehensiveness.
4. The views of the people are biased therefore it doesn’t reflect true picture.
11
CHAPTER 2
COMPANY PROFILE
12
HISTORY OF BAJAJ
13
COMPANY HISTORY
The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches
over a wide range of industries, spanning automobiles (two-wheelers and three-
wheelers), home appliances, lighting, iron and steel, insurance, travel and finance.
The group's flagship company, Bajaj Auto, is ranked as the world's fourth largest two-
and three- wheeler manufacturer and the Bajaj brand is well-known across several
countries in Latin America, Africa, Middle East, South and South East Asia.
Founded in 1926, at the height of India's movement for independence from the British,
the group has an illustrious history. The integrity, dedication, resourcefulness and
determination to succeed which are characteristic of the group today, are often traced
back to its birth during those days of relentless devotion to a common cause. Jamnalal
Bajaj, founder of the group, was a close confidant and disciple of Mahatma Gandhi. In
fact, Gandhiji had adopted him as his son. This close relationship and his deep
involvement in the independence movement did not leave Jamnalal Bajaj with much time
to spend on his newly launched business venture.
His son, Kamalnayan Bajaj, then 27, took over the reins of business in 1942. He too was
close to Gandhiji and it was only after Independence in 1947, that he was able to give his
full attention to the business. Kamalnayan Bajaj not only consolidated the group, but also
diversified into various manufacturing activities.
The present Chairman of the group, Rahul Bajaj, took charge of the business in 1965.
Under his leadership, the turnover of the Bajaj Auto the flagship company has gone up
from Rs.72 million to Rs.46.16 billion (USD 936 million), its product portfolio has
expanded from one to and the brand has found a global market. He is one of India's most
distinguished business leaders and internationally respected for his business acumen and
entrepreneurial spirit.
14
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
15
KEY PERSONS
Board of Directors
Rahul Bajaj Chairman
Madhur Bajaj Vice Chairman & Whole-Time Director
Rajiv Bajaj Managing Director
Sanjiv Bajaj Executive Director
D.S. Mehta Whole-Time Director
Kantikumar R. Podar Director
Shekhar Bajaj Director
D.J. Balaji Rao Director
J.N. Godrej Director
S.H. Khan Director
Mrs. Suman Kirloskar Director
Naresh Chandra Director
Nanoo Pamnani Director
Manish Kejriwal Director
P Murari Director
Niraj Bajaj Director
Committees of the Board
Audit Committee
S.H. Khan Chairman
D.J. Balaji Rao
J.N. Godrej
Naresh Chandra
Nanoo Pamnani
16
TIMELINE OF RELEASES & ACHIEVMENTS
2009
April Bajaj Pulsar 150 & 180 upgrade launched
January Bajaj XCD 135 DTS-Si launched
2008
September Bajaj Platina 125 DTS-Si launched
August XCD 125 DTS-Si is largest selling 125cc motorcycle
July Bajaj Discover 135 DTS-i Upgrade Launched.
June Pulsar 220 bags IMOTY award
2007
December RE GDi autorickshaw launched
September XCD 125 DTS-Si launched
August DTS-Si engine launched
July Revamping of Organisational structure
June Pulsar 220 DTS-Fi launched
April Bajaj Auto Commissions New Plant at Pantnagar, Uttarakhand
February 200 cc Pulsar DTS-i launched
January Bajaj Kristal DTS-i launched
2006
April Bajaj Platina launched
2005
December Bajaj Discover launched
June Bajaj Avenger DTS-i launched
February Bajaj Wave DTS-i launched
2004
October Bajaj Discover DTS-i launched
August New Bajaj Chetak 4 stroke with Wonder Gear launched
May Bajaj CT100 Launched
January Bajaj unveils new brand identity, dons new symbol, logo and brandline
2003
October Pulsar DTS-i is launched.
October 107,115 Motorcycles sold in a month.
July Bajaj Wind 125,The World Bike, is launched in India.
February Bajaj Auto launched its Caliber115 "Hoodibabaa!" in the executive
motorcycle segment.
2001
17
November Bajaj Auto launches its latest offering in the premium bike segment 'Pulsar'.
January The Eliminator is launched.
2000 The Bajaj Saffire is introduced.
1999 Caliber motorcycle notches up 100,000 sales in record time of 12
months.
1998 Production commences at Chakan plant.
June 7th Kawasaki Bajaj Caliber rolls out of Waluj.
July 25th Legend, India's first four-stroke scooter rolls out of Akurdi.
October Spirit launched.
1997 The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw are
introduced.
1995
November 29 Bajaj Auto is 50.
Agreements signed with Kubota of Japan for the development of
diesel engines for three-wheelers and with Tokyo R&D for ungeared
Scooter and moped development.
The Bajaj Super Excel is introduced while Bajaj celebrates its ten
millionth vehicle.
One million vehicles were produced and sold in this financial year.
1994 The Bajaj Classic is introduced.
1991 The Kawasaki Bajaj 4S Champion is introduced.
1990 The Bajaj Sunny is introduced.
1986 The Bajaj M-80 and the Kawasaki Bajaj KB100 motorcycles are
introduced.
500,000 vehicles produced and sold in a single financial year.
1985
November 5 The Waluj plant inaugurated by the erstwhile President of India,
Shri Giani Zail Singh.
Production commences at Waluj, Aurangabad in a record time
of 16 months.
1984
January 19 Foundation stone laid for the new Plant at Waluj, Aurangabad.
1981 The Bajaj M-50 is introduced.
1977 The Rear Engine Autorickshaw is introduced.
Bajaj Auto achieves production and sales of 100,000 vehicles in
a single financial year.
1976 The Bajaj Super is introduced.
18
1975 BAL & Maharashtra Scooters Ltd. joint venture.
1972 The Bajaj Chetak is introduced.
1971 The three-wheeler goods carrier is introduced.
1970 Bajaj Auto rolls out its 100,000th vehicle.
1960 Bajaj Auto becomes a public limited company. Bhoomi Poojan of
Akurdi Plant.
1959 Bajaj Auto obtains licence from the Government of India to
manufacture two- and three-wheelers.
1948 Sales in India commence by importing two- and three-wheelers.
1945
November 29 Bajaj Auto comes into existence as M/s Bachraj Trading
Corporation Private Limited.
19
MARKETING STRATEGIES
The focus of BAL off late has been on providing the best of the class models at
competitive prices. Most of the Bajaj models come loaded with the latest features within
the price band acceptable by the market. BAL has been the pioneer in stretching
competition into providing latest features in the price segment by updating the low price
bikes with the latest features like disk-brakes, anti-skid technology and dual suspension,
etc.
BAL adopted different marketing strategies for different models, few of them are
discussed below: -
CALIBER - The focus for the Caliber 115 was youth. And though Bajaj made the bike
look bigger and feel more powerful than its predecessor (characteristics that will attract
the average, 25-plus, executive segment bike buyer). Going by the initial market
response, the campaign was clearly a hit in the 5-10 years age bracket. So, the teaser
campaign and the emphasis on the Caliber 115 being a `Hoodibabaa' bike placed it as a
trendy motorcycle for the college-goers and the 25 plus executives both at the same time.
PULSAR - Pulsar was launched in direct competition to the Hero Honda's 'CBZ' model
in 150 cc plus segment. The campaign beared innovative punch line of "Definitely Male"
positioning Pulsar to be a masculine-looking model with an appeal to the performance
sensitive customers. Pulsar currently offers four varieties the Bajaj Pulsar 150 cc,the
Bajaj Pulsar 180 cc,the Bajaj Pulsar 200 cc,and the Bajaj Pulsar 220cc. Bajaj Pulsar bikes
range in on road prices from around Rs. 62,500 to Rs. 90,500. The Pulsar DTS Fi is the
first bike in the Indian market to have both front and rear disc brakes.
DISCOVER - The Bajaj Discover has two variants with 110 cc and 135cc engine. Bajaj
Discover targets the middle class two wheeler consumers with Bajaj bike prices ranging
from Rs. 46,000 to Rs. 55000. The Bajaj Discover 135 cc is easy to control, easy on the
pocket, and a good choice between a 125 cc and 150 cc motorbike.
20
PLATINA : It is the leader in mileage & looks in the 100 cc class. The Bajaj Platina is
resplendent in Platinum silver colour and shiny chrome graphics enhanced by a
contrasting matt black silencer and graphite-tinted engine.The bike has a plush ride
without sacrificing handling. It has an upright riding posture inline with other commuter
bikesCurrently there are two variants of Platina available with engine capacities of 100
and 125 cc. The 100 cc Platina was launched in April 2006 at an ex-showroom price of
Rs 36,000 and crossed sales of 500,000 units within eight months of its launchedPlatina
125 DTS-Si was introduced in September 2008 with sales of more than 30,000 units per
month
AVENGER - Bajaj Avenger (DTSi) offers the ultimate cruiser experience. Offering high
stability and long cruising delights, Bajaj Avenger (DTSi) possesses wider saddle seat,
special backrest besides 180cc powerful engine. It is targeted at the upper middle-class
bike lovers. The Avenger now has a single variant, the Bajaj Avenger priced at around
Rs. 70,000.
21
SWOT ANALYSIS
Let's analyze the position of Bajaj in the current market set-up, evaluating its strengths,
weaknesses, threats and opportunities available.
STRENGTHS :
Highly experienced management.
Product design and development capabilities.
Extensive R & D focus.
Widespread distribution network.
High performance products across all categories.
High export to domestic sales ratio.
Great financial support network (For financing the automobile)
22
High economies of scale.
High economies of scope.
WEAKNESS :
Hasn't employed the excess cash for long.
Still has no established brand to match Hero Honda's Splendor in commuter segment.
Not a global player in spite of huge volumes.
Not a globally recognizable brand (unlike the JV partner Kawasaki)
THREATS :
The competition catches-up any new innovation in no time.
Threat of cheap imported motorcycles from China.
Margins getting squeezed from both the directions (Price as well as Cost)
OPPORTUNITIES :
Double-digit growth in two-wheeler market.
Untapped market above 180 cc in motorcycles.
More maturity and movement towards higher-end motorcycles.
The growing gearless trendy scooters and scooterette market.
Growing world demand for entry-level motorcycles especially in emerging markets.
23
HISTORY OF HERO HONDA
24
COMPANY HISTORY
“Hero”, is the brand name used by the Munjal brothers in the year 1956 with the flagship
company Hero Cycles. The two-wheeler manufacturing business of bicycle components
had originally started in the 1940’s and turned into the world’s largest bicycle
manufacturer today. Hero, is a name synonymous with two-wheelers in India today. The
Munjals roll their own steel, make free wheel bicycle critical components and have
diversified into different ventures like product design. The Hero Group philosophy is:
“To provide excellent transportation to the common man at easily affordable prices and
to provide total satisfaction in all its spheres of activity”. The Hero group vision is to
build long lasting relationships with everyone (customers, workers, dealers and vendors).
The Hero Group has a passion for setting higher standards and “Engineering Satisfaction”
is the prime motivation, way of life and work culture of the Group.
Hero Honda is a 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
25
and Gurgaon, both in Haryana, India. It specializes in dual use motorcycles that are low
powered but very fuel efficient.
Hero Group expanded so big that by 2002 they had sold 86 million bicycles producing
16000 bicycles a day. Today Hero Honda has an assembly line of 9 different models of
motorcycles available. It holds the record for most popular bike in the world by sales for
Its Splendor model.
COMPANY PROFILE
Hero Honda Motorcycle Ltd.
Type Public company BSE:HEROHONDA M
Founded January 19, 1984 in Gurgaon, Haryana, India
Headquarter
sHaryana, India
Key people Om Prakash Munjal, Founder
Mr. Brijmohan Lall Munjal, Chairman
Mr. Toshiaki Nakagawa, Joint Managing
26
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
KEY PERSONS
No
.
Name of the Directors Designation
1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director
2 Mr. Pawan Munjal Managing Director
3 Mr. Toshiaki Nakagawa Jt. Managing Director
4 Mr. Takao Eguchi Whole-time Director
5 Mr. Satyanand Munjal Non-executive Director
6 Mr. Om Prakash Munjal Non-executive Director
7 Mr. Tatsuhiro Oyama Non-executive Director
8 Mr. Masahiro Takedagawa Non-executive Director
9 Mr. Narinder Nath Vohra Non-executive & Independent
27
Director
10 Mr. Pradeep Dinodia Non-executive & Independent
Director
11 Gen.(Retd.) Ved Prakash
Malik
Non-executive & Independent
Director
12 Mr. Analjit Singh Non-executive & Independent
Director
13 Dr. Pritam Singh Non-executive & Independent
Director
14 Ms. Shobhana Bhartia Non-executive & Independent
Director
15 Dr. Vijay Laxman Kelkar Non-executive & Independent
Director
TIMELINE OF RELEASES & ACHIEVMENTS
Year Event
1983 Joint Collaboration Agreement with Honda Motor Co. Ltd.
Japan signed
Shareholders Agreement signed
1984 Hero Honda Motors Ltd. incorporated
1985 First motorcycle "CD 100" rolled out
1987 100,000th motorcycle produced
28
1989 New motorcycle model - "Sleek" introduced
1991 New motorcycle model - "CD 100 SS" introduced
500,000th motorcycle produced
1994 New motorcycle model - "Splendor" introduced
1997 New motorcycle model - "Street" introduced
1998 2,000,000th motorcycle produced
1999 New motorcycle model - "CBZ" introduced
2000 4,000,000th motorcycle produced
Environment Management System of Gurgaon Plant certified
ISO-14001 by DNV Holland
Splendor declared 'World No. 1' - largest selling single two-
wheeler model
"Hero Honda Passport Programme" - CRM Programme
launched
2001 New motorcycle model - "Passion" introduced
One million production in one single year
New motorcycle model - "Joy" introduced
2002 New motorcycle model - "Dawn" introduced
New motorcycle model - "Ambition" introduced
Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh,
Harbhajan Singh and Zaheer Khan as Brand Ambassadors
2003 Becomes the first Indian Company to cross the cumulative 7
million sales mark
Splendor has emerged as the World's largest selling model
for the third calendar year in a row (2000, 2001, 2002)
New motorcycle model - "CD Dawn" introduced
New motorcycle model - "Splendor +" introduced
New motorcycle model - "Passion Plus" introduced
New motorcycle model - "Karizma" introduced
2004 New motorcycle model - "Ambition 135" introduced
29
Splendor - World's largest selling motorcycle crossed the 5
million mark
New motorcycle model - "CBZ*" introduced
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
First Scooter model from Hero Honda - "Pleasure" introduced
2006 Hero Honda is the World No. 1 for the 5th year in a row
MARKETING STRATEGIES
Hero Honda globally known of being the most fuel-efficient and the largest CBZ selling
Indian motorcycle company. This is a relationship so harmonious that Hero Honda has
managed to achieve indigenisation of over 95 percent, a Honda record worldwide. The
company is committed to provide the customer with excellence. A rich background of
producing high value products at reasonable prices led the world's largest manufacturer of
motorcycles to collaborate with the world's largest bicycle manufacturer
CD DAWN :
30
Honda CD Dawn is a beginner's bike well tested on Indian roads and proven in city
conditions. Hero Honda CD Dawn is a no-nonsense bike that's all about price and utility.
New bikes have showroom prices of around Rs. 32,000 and on-road prices of around Rs.
37,000.
SPLENDOR NXG :
The Hero Honda Splendor NXG is a new age bike in Hero Honda's 100 cc stable.
Stunning looks, economic performance, and a multitude of features backed by Hero
Honda's reliable support network, makes this a good choice for the city commuter. The
Hero Honda Splendor NXG is now available at a showroom price of around Rs. 42,000.
Hero Honda Splendor Plus is one of the largest selling bikes in India. It sports several
improvements over the old splendor. Hero Honda Super Splendor is not a bike to race
with, but one you can depend on to get you to your destination and back in the city safely
and economically.
PASSION PLUS :
Hero Honda Passion Plus is a bike meant for the executive city commuter. This improved
version of the Hero Honda Passion comes with several improvements over its earlier
versions and gives an easy ride and easy handling. New bikes have showroom prices of
around Rs. 42,700.
CBZ EXTREME :
31
Expected to capture the top position in the premium segment with this bike. Price for two
variants of kick-start and self-start for CBZ X-treme is Rs 54,000 and Rs 56,000. Both
the variants comes with alloy wheel and disc brakes as standard fitment.
Alloy wheels, speedo console, split rear grab rail and bikini fairing all add to the
muscular styling giving it a big bike feel. launched in early. Was the first sports oriented
4-stroke bike. Sporting an original Honda 156.8 cc engine, it made good 12.8PS of power
which was sufficient enough to propel it to 110[120 on Speedo] km/h. The styling of the
bike was a scaled version of the famous Honda CB series. Sufficient mid-range torque
ensured a 0–60 km/h (0-37 mph) in just 5 seconds.
KARIZMA ( R, ZMR) :
The Hero Honda Karizma is the flagship motorcycle of Hero Honda.It was launched in
May 2003 and was replaced by a cosmetic upgrade Karizma R .The bike has been
prominently associated with the reality show MTV Roadies. It currently retails at Rs
82,502. The bike addresses to those who have a passion for speed and styling and head-
turning looks. Karizma sports an all aluminum, undersquare engine (bore 65.5 mm and
stroke 66.2 mm) running a compression ratio of 9:1.The top speed is around 120 km/h
and the 0-60 km/h is achieved around 3.8 seconds. The Karizma is reported to have an
overall fuel economy of 38 km/l (90 mpg or 2.4 l/100 km), with a best of 50 km/l (120
mpg) and a worst of 28 km/l (66 mpg). Hero Honda has launched the revamped version
of its performance motorcycle, the Karizma ZMR. Introduced at a price of
91,000.showroom Delhi. To compete with Bajaj Pulsar 220.
SWOT ANALYSIS
STRENGTHS :
Huge brand equity/reputation among customers.
Research and development- due to joint venture with Japanese giant – HONDA.
Models/products in almost every bike segment.
32
Healthy growth in profits.
Ability to understand customer needs & wants.
Its after sales service.
Maintenance cost is low.
WEAKNESSES :
Low cash reserves due to massive dividend payouts
Virtual absence in the highly lucrative bike segments
Imports >31% of its spare parts requirements
Slow to react to market changes- Slow innovation- late entrants into the 125cc segment
Too much dependence on few models.
OPPORTUNITIES :
125cc bike segment - This segment is yet to pick pace
Exports market is yet to be properly exploited. HHML can still make it
Ads appealing to youth can do wonders for the company
Cruiser bike segment is unexplored by HHML.
Discounts & loans offered lead to great demand.
33
THREATS :
All major bike makers in the world are lining up for India.
The growth in two-wheeler market is slowing down.
Absence in 150cc could harm the growth plans of HHML as future lies in the 150cc and 125cc markets.
Low cash reserves.
HHML is losing a foothold in the exports market which is now dominated by Bajaj .
CHAPTER 3
34
ANALYSIS & INTERPRETAION
FACTORS INFLUENCING SALES OF TWO WHEELERS
FEATURES : It plays major role in sale on any bikes. Today people are more attracted
towards the features of bikes and are ready to spend huge amount of money on buying a
handset having huge numbers of features.
E.g. Hero Honda karizma
35
PRICE : Price also plays a major role. Companies need to place their products in such a
way that it can differentiate itself from others by its price. If price of bike is kept low and
more features are provided to customers than company can create market for itself.
AVAILABILITY : Products need to be available easily. Customers don’t like to travel
much to buy bikes. They prefer to get their bikes from nearest showrooms so in order to
be market leader companies should make sure that there products are easily available to
customers.
AFTER SALES SERVICE : Companies should make sure that they provide good after
sale service to their customers and there problems are rectified as soon as possible. The
turnaround time should be very less that customers don’t have to wait too long for their
problems so to be solved.
QUALITY : The quality of products should be very good. Today’s customers want value
for money if that is not provided than company will find it difficult to position itself in
the market.
36
Q1) Which bike do you have?
Hero Honda 47Bajaj 38Any other 15
37
Hero honda
Bajaj
Any other
Q2) Which Model do you Have?
Hero Honda BajajSplender 21 CT 100 7Passion 13 Discover 12Karizma 7 Pulsar 11
Any other 6 Any other 8
0
2
4
6
8
10
12
14
1
Model Name
No
of
Pers
on
s
Bajaj
CT 100
Discover
Pulsar
Any other
Q3) In which family Income level do you Fall?
100000-200000 22200000-300000 45300000-400000 23above 400000 10
38
0
10
20
30
40
50
1
Income level
No
of P
erso
ns100000-200000
200000-300000
300000-400000
above 400000
Q4) For how long do you own a bike?
0-1 year 341-2 year 292-3 year 26above 3 year 11
0
10
20
30
40
No of Persons
1
No of years
0-1 year
1-2 year
2-3 year
above 3 year
39
Q5) For what purpose do you use your Motor Bike?
Hero Honda BajajOffice Purpose 9 4Personal purpose 13 15Joy Purpose 19 16Other 6 3
0
5
10
15
20
OfficePurpose
Personalpurpose
JoyPurpose
Other
Purpose
No o
f Per
sons Hero Honda
Bajaj
Q6) How do you come to know about this Motor Bike?
Hero Honda BajajNewspaper 4 2
40
Television 23 16
Magazine 2 1
Friends & Relative 18 19
0
5
10
15
20
25
Hero Honda Bajaj
Name of Company
No
of
Pers
on
s
New spaper
Television
Magzine
Friends & Relative
Q7) Does Advertisement Influence your decision in choosing a Motor Bike?
Yes 87%No 5%Cant say 8%
Yes
No
Cant say
Q8) Do you have full knowledge about Bikes before buying?
Hero Honda Bajaj
41
Yes 25 23
No 22 15
0
5
10
15
20
25
30
Hero Honda Bajaj
Company Name
No
of
per
son
s
Yes
No
42
Q9) Which Factor below Influence your decision?
Hero Honda Bajaj
Price 72% 78%Mileage 78% 64%Quality 65% 48%Resale Value 40% 28%Status symbol 10% 7%
0%
20%
40%
60%
80%
100%
Hero Honda Bajaj
Company Name
No
of
Per
son
s
Price
Mileage
Quality
Resale Value
Status symbol
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Q10) How would you rate the following factors of Bikes with respect to different company?
Hero Honda Bajaj
Mileage 74% 72%Price 68% 65%Pick up 70% 80%Maintenance 58% 62%Look & Shape 85% 80%Brand Image 53% 55%
0%
20%
40%
60%
80%
100%
Hero Honda Bajaj
Company Name
No o
f Per
sons
Mileage
Price
Pick up
Maintenance
Look & Shape
Brande Image
Q11) If new Bike with good features comes in, then would you
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like to change your bike?
Hero Honda Bajaj
Yes 19 21No 17 14Cant say 11 3
0
5
10
15
20
25
Yes No Cant say
Views
No o
f Per
sons Hero Honda
Bajaj
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CHAPTER 4
CONCLUSION & RECOMMENDATIONS
CONCLUSION
1. Hero Honda is considered to be most fuel-efficient bike on Indian roads,& have
better quality, higher resale as compared to Bajaj Bikes.
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2. Bajaj Service & Spare parts are available throughout India in local markets also,&
Bajaj bikes have comparatively low maintenance cost in contrast to hero Honda
bikes.
3. While buying a motorcycle, economy is the main consideration in form of
maintenance cost, fuel efficiency.
4. Majority of the respondent had bought their motorcycle more than 3 years.
5. Market leader Hero Honda has lost more than 3 per cent of its market share in the
motorcycle segment to its nearest rival Bajaj Auto.
6. Bikes such as Bajaj Pulsar, Hero Honda Hunk,Karizma are purchased by young
generation 18 to 30 because they prefer stylish looks and rest of the models of Hero
Honda are purchased more by daily users who needs more average of bikes than looks.
RECOMMENDATIONS
1. BAL should adopt a deliberate strategy of focusing on executive and premium
segment motorcycles and three-wheelers, and is reducing its dependence on lower-
end of motorcycles and scooters segment.
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2. Bajaj Auto Ltd needs to tap the export market more efficiently as there is a huge
potential to make India as the world's two-wheelers production base. For this, it
needs to look for joint ventures abroad.
3. Hero Honda should think about fuel efficiency in case of upper segment bikes.
4. More service centers should be opened for Hero Honda Bikes.
5. Maintenance cost and the availability of the spare parts should also be given due
importance by Hero Honda.
6. They Should also introduce some good finance/discount schemes for students.
BIBLIOGRAPHY
1. www.herohonda.com
2. www.google.com
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3. www.bajaj.com
4. www.twowheeler.com
5. www.extrememachines.com
6. www.wikepedia.com
7. www.bikeindia.com
8. www.overdive.com
QUESTIONNAIRE
NAME: - ………………………………………………
CONTACT NO ……………………………………….
AGE:- 15-20 20-25
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30-40 Above 40
OCCUPATION:- Businessman Employee
Student Other
Q1) Which Bike do you have?
Hero Honda Bajaj Bajaj Any Other
Q2) Which Model do you have?
Hero Honda: - Splendor Passion
Karizma Other
Bajaj: - CT 100 Discover
Pulsar Other
Q3) In which Family Income do you Fall?
100000-200000 200000-300000
300000-400000 Above 400000
Q4) For how long do you own a Bike?
0-1 year 1-2 year
2-3 year above 3 years
Q5) For what purpose do you use your Motor Bike?
Office Purpose Personal Purpose
Joy Purpose Other
Q6) How do you come to know about this Motor Bike?
Newspaper Television
Magazines Friends/Relatives
Q7) Does Advertisement Influence your decision in choosing a Motor Bike?
Yes No Can’t say
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Q8) Do you have full knowledge about Bikes before buying?
Yes No
Q9) Which factor below influence your decision?
Price Mileage Quality
Resale Value Status Symbol
Q10) How would you rate the following factors of bikes with respect to different companies?Hero Honda Bajaj
Mileage
Price
Pick up
Maintenance
Look/Shape
Brand Image
Q11) In new bike with good feature comes in, then would you like to change your bikes?
Yes No Can’t say
Q12) Any Suggestions for Company ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
Date: (Signature)
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