Overview of the Automobile Industry

SUBMITTED TO : SUBMITTED BY :

PROF. VIJAY NAGRANI JAYESH . R. SHAH ( )

MARKET RESEARCH ON BIKESTHE ANALYSIS REPORT

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SAURABH KISHORE (748)

ACKNOWLEDGEMENT

1. PROF. VIJAY NAGRANI

2. RESPECTED PARENTS

3. FRIENDS AND COLLEAGUES

4. ALL THE PARTICIPANTS

5. ABOVE ALL, THE ALMIGHTY.

THE EXECUTIVE SUMMARYIn Feb 2008, we, Group no.13 were assigned a project on the consumer perception and buying behaviour on various products and goods, as a part of our course curriculum, by concerned faculty PROF. VIJAY NAGRANI. We chose bikes as our product for the project work. The results in the survey indicated Hero Honda and Bajaj in a neck to neck competition but the awareness for Bajaj is much more in the consumers as compared to Hero Honda, thanks to the advertising by Bajaj Auto Ltd.

The project bean with valuable knowledge sharing between our group and the concerned faculty, which provided us with valuable insights on various brands present in huge range in the market.

The survey began with listing down the objectives of the project work and then designing the questionaire accordingly. In designing the questionaire we considered all the required parameters. After that we did a pilot survey on 10 consumers and the necessary changes were made in the questionaire.

Then we started off with the final survey

In the survey , we included people from three areas – students, servicemen and businessmen.

The findings of the research shows –

Among the five attributes ( which we considered important for customers’ purchasing decision ) customers gave highest consideration to looks and style followed by the mileage. Other attributes like comfort, service and spares were considered later.

Normally, all the three segments maintained their bike single handed and thestudents and the servicemen serviced their bikes regularly but the businessmen were a little hesitent in their servcing of the bikes.

Electronic media ( TV) is the most commonly used medium for the brand awareness. Other medias like magazines, newspaper, hoardings came later.

The most important finding is that brand advertising for Bajaj is much more than any other brand and is quickly picking up the interest of the cosumers and hence coming with a larger market share. May be it could overcede Hero Honda in a couple of days to come.

Overview of the automobile industry – the bike segment

Bikes or two wheelers in India cater to various needs of the consumers. With the choice of the Indians improving

from bicycles to two wheelers, the Indian two-wheeler market has seen a significant growth over the years. Now

owing a bike has become a must for most Indians. Even if people own a car they prefer to have a bike as it is

very economical and fuel efficient.

With the growth in the economy the demand for two wheelers is increasing over the years. It is one of the most

dynamic industries today and with the increasing competition companies are bringing in new products with

sophisticated technologies and innovative features to capture a major pie of the Indian market and it’s the

consumer who is benefited from it..

With the availability of reduced consumer loans and high disposable income the Indian two-wheeler industry has

perceived an exceptional growth over the past few years thereby making India the second largest market for

two wheelers in the world only after China.

The motorcycle has now become one most popular mode of transportation among the Indian middle class

families because of it is cost effective, economical and easy to navigate through the traffic. Moreover, the

people have started preferring bikes instead of scooters and mopeds and today bikes form a major part of the

Indian two wheelers.

Indian companies are one of the largest two wheeler manufacturers in the world. The number one bike

manufacturer in the world, Hero Honda is in close competition with the Indian manufacturer Bajaj India.

The motorcycle industry in India has witnessed a tremendous change in the 90’s with the invention of 4 stroke

engine which makes the bikes more fuel efficient. Further companies are trying to bring in more innovations to

make the motorcycle ride more comfortable, safe and user friendly and economical.

In a nut shell the followings factors can be distinguished for the growth of motorcycle industry in India: Easy accessibility to cheap consumer loans The increase in the average income of the family.

The reduction in duties and taxes.

Convenience with regards to commuting as compared to the public transport system.

Continuous innovations in technology making the bikes economic and fuel-efficient.

The first choice among youths and teenagers.

Product Details

There are many popular and renowned motorcycles in India. The most popular among them are Hero Honda

and Royal Enfield. Bajaj Auto Ltd. is one of them.

Bajaj Auto Limited, manufacturing a range of motorcycles and scooters, was founded in 1945 on 29th November.

With the onset in the Indian market, the company was only manufacturing two wheelers and later it also made a

benchmark in the three wheeler industry. This popular company became a public limited company in 1960.

Hero Honda Motors Ltd. is another popular motorcycle company in India. This company, started in 1984, was a

successful joint venture between Hero Cycles and Honda Motor Company of Japan.

Since the commencement of the company, Hero Honda has manufactured and sold more than 15 million

motorcycles. The company has established a niche in the competitive Indian and international market for

manufacturing low maintenance and high fuel efficient motorcycles.

When it comes to Indian motorcycle, Royal Enfield hits the mind of every Indian motorcycle lovers because it is

one of the premier bike companies in India. This company was founded by the son of George Townsend in 1851

and was further taken over by Albert Edie and R.W. Smith in 1891.

TVS Motor Company Ltd and Yamaha Motor India Ltd also have carved a niche in the Indian motorcycle market.

TVS Motor Company, established by T. V. Sundaram Iyengar in 1911, is believed to be the third largest

manufacturer of two-wheeler in India.

TVS came up with the first two-seater moped in 1980 that eventually defined the dominion of personal

transportation in India. This company entered into a joint venture with Suzuki Motor Corporation of Japan in

1982. This collaboration was the first company to introduce a 100-cc motorcycle in the markets of India.

Yamaha Motor India Ltd. is continuously making efforts to break down the competitive two wheeler market in

India and win the battle with its business strategies. The business strategies and principles of this company is

customer fulfillment through quality service, research and development for introducing high end motorcycles

and optimization of the working system

Objective of the research To find out the consumer preference level and taste across Delhi and NCR region of different segments.

Gauge customer taste and preference for various brands of bikes on available parameters like mileage, style, comfort etc.

What factors guide consumer buying behavior for bikes?

Which is the leading brand in the market and the relative position of the companies from consumer’s point of view?

Identifying possible areas of improvement.

Product snapshot

HERO HONDA BAJAJ

TVS YAMAHA

Research methodology1. The target customers were segmented into three parts- the students, the officials and the business

professionals.

2. There were 40 students, 37 businessmen, and 44 officials

3. They were made to fill up the questionnaire designed for the bikes.

4. The target area identified was Delhi and NCR region.

5. The data collected from the questionnaires were sorted according to the three different segments.

6. The data was carefully analyzed for the choice and preferences of the target customers.

7. The data collected was presented on the excel sheet with the help of bar graph and pie chart.

1)Do you use bikes? Yes No

STUDENTS SERVICEMENBUSINESSMEN

OVERALL DATA ANALYSED

FINDINGS: ALL THE ABOVE PARTICIPANTS USED BIKES OF ONE OR MORE KIND.

2)Which bike do you use? ………………………………………………

STUDENTS SERVICEMEN BUSINESSMEN

OVERALL DATA ANALYSEDOBJECTIVE : TO KNOW THE POPULARITY OF BRANDS AMONG VARIOUS SEGMENTS FINDINGS : OVERALL FINDINGS SHOW THAT HERO HONDA IS THE MARKET LEADER IN ALL THE SEGMENTS FOLLOWED BY BAJAJ AND TVS. FEW OTHER POPULAR BRANDS INCLUDE ROYAL ENFIELD AMONG STUDENTS AND YAMAHA AMONG SERVICE AND BUSINESS CLASS PEOPLE.

3)Is the present bike up to your expectations? Yes No

STUDENTS SERVICEMEN

BUSINESSMEN


OBJECTIVE: TO EVALUATE THE SATISFACTION OF THE PARTICIPANTS FROM THE PRODUCTFINDINGS : IN THE OVERALL FINDINGS, 99 OUT OF 121 PARTICIPANTS WERE SATISFIED WITH THEIR PRESENT BIKES. BUT THE SEGMENT WISE FINDINGS SHOWS THAT THE

STUDENTS AND THE SERVICEMEN ARE MUCH MORE SATISFIED IN COMPARISON TO THE BUSINESSMEN.

4)Are you planning to buy a new bike in the near future? YES NO



OBJECTIVE : TO FIND OUT THE NEW PURCHASES TO BE MADE IN THE NEAR FUTUREFINDINGS : OVERALL FINDINGS SHOW THAT MORE THAN 50% OF THE PARTICIPANTS ARE PLANNING TO BUY A NEW BIKE IN THE NEAR FUTURE AND THE SAME TREND WAS SEEN IN ALL THE THREE SEGMENTS.

5)Which brand would you prefer?a)Hero Honda b) Bajaj c) Yamaha d) Kinetic e) Honda f)

Others (plz specify)



OBJECTIVE : TO ESTIMATE THE BUYING PREFERANCE FOR THE PRODUCT AMONG THE PARTICIPANTS.FINDINGS: THE OVERALL FINDINGS SHOW THAT BAJAJ IS THE MOST PREFERED BRAND AMONG THE PARTICIPANTS. THE SCENARIO IS SIMILAR IN CASE OF STUDENTS AND BUSINESSMEN BUT THE SERVICEMEN PREFER HERO HONDA MORE TO ANY OTHER BIKE.

6)Why would you prefer the above mentioned bike?

a)Mileage b) Looks and style c) Comfort d) Service and spares e) Other(s) [plz specify]



OBJECTIVE: TO IDENTIFY THE BASIC CAUSE OF THE INCLINATION OF THE PARTICIPANTS FOR THEIR FAVOURITE BRAND.FINDINGS : THE OVERALL FINDING MATCHES EXACTLY WITH THE FINDINGS FROM THE STUDENTS AND BUSINESSMEN WHICH SAYS THAT PREFERANCE FOR LOOKS AND STYLE IS

MORE THAN ANY OTHER FACTOR. BUT THE SERVICEMEN’S PREFERANCE IS MILEAGE WHICH IS AGAINST BOTH THE STUDENTS AND BUSINESSMEN.

7)For what purpose you use bikes?a)College b) Office c) Business d) Travelling and roaming

e)Household worksf) Other(s) [plz specify]



OBJECTIVE: TO IDENTIFY THE PURPOSE TO USE BIKESFINDINGS: THE OVERALL FINDINGS INDICATES THE MAXIMUM USE OF BIKES FOR OFFICES FOLLOWED BY TRAVELLING AND BUSINESS RESP. BUT IN DIFFERENT SEGMENTS, THE REASON FOR ITS USE IS DIFFERENT. STUDENTS USE IT FOR TRAVELLING AND THE SERVICEMEN AND BUSINESSMEN USE THE BIKE FOR THEIR RESPECTIVE PUPROSES.

8)Is your bike single handed? Yes No



OBJECTIVE: TO FOCUS ON THE HANDLING BEHAVIOUR OF BIKES BY THE PARICIPANTS.FINDINGS : THE OVERALL DATA ANALYSED MATCHES WITH THE DATA OF THE THREE SEGMENTS WHICH INDICATES THAT MOST OF THE PEOPLE MAINTAIN THEIR BIKE SINGLE HANDED.

9)If no, how many persons use your bike?a) 1 b)2 c) 3 d) 4 e) more than 4



OBJECTIVE : TO FOCUS ON THE USAGE OF THE BIKES BY PERSONS OTHER THAN THE OWNER.FINDINGS : WHILE THE OVERALL DATA MATCHES WITH APPROXIMATELY WITH THE SEGMENT DATA HAVING THE SINGLE HANDED USE OF THE BIKES, 2 PERSONS OTHER THAN THE OWNER USE THE BIKE IN CASE OF STUDENTS AND SERVICEMEN, THE BIKES OF THE BUSINESSMEN ARE USED BY 3 PERSONS IN MOST OF THE CASES.

10) How long do you drive weekly? a) 50-100 b) 100-150 c) 150-200 d) 200 and above



OBJECTIVE : TO ANALYSE THE DRIVING HABIT OF THE PARTICIPANTS.FINDINGS : WHILE THE OVERALL DATA SAYS THAT THE PARTICIPANTS DRIVE 100-150 KMS ON AN AVERAGE WHICH MATCHES WITH THE DATA OF THAT OF THE SERVICEMEN, BUT THE STUDENTS AND THE BUSINESSMEN DRIVE MORE FOR THEIR RESPECTIVE PURPOSES.

11) How often do you service your bike? a) 3 mnths b) 6 mnths c) 12 mnths d) more than 12 mnths



OBJECTIVE: TO ANALYSE THE MAINTANENCE AND SERVICE BEHAVIOUR OF THE PARTICIPANTS. FINDINGS : THE OVERALL FINDING SAYS THAT MOST OF THE PARTICIPANTS SERVICE THEIR BIKES WITHIN 3 MONTHS i.e. THE STUDENTS AND THE BUSINESSMEN WHO DRIVE THE MOST, SERVICE THEIR BIKES TO KEEP IT MAINTAINED AND WORKING.

12) Which brand ad have you seen during last months? [plz specify]



OBJECTIVE : TO ANALYSE THE BRAND AWARENESS AMONG THE PARTICIPANTS.FINDINGS : THE OVERALL DATA AND THE SEGMENT WISE DATA MATCHES AND SAYS THAT MOST OF THE PARTICIPANTS ARE AWARE OF BAJAJ PULSAR, THANKS TO ITS ENORMOUS ADVERTISING CAMPAIGNS FOLLOWED BY HERO HONDA FOR ITS DIFFERENT BRANDS WHICH IS HENCE FOLLOWED BY AWARENESS FOR DIFFERENT OTHER BRANDS.

13) In which media have you seen the ad? a) TV b) newspapers c)magazines d)hoardings e) other



OBJECTIVES : TO IDENTIFY THE MEDIA RESPOSIBLE FOR BRAND AWARENESS.FINDINGS : THE OVERALL AND THE SEGMENT WISE DATA SUGGESTS THAT THE MAIN MEDIA RESPONSIBLE FOR BRAND AWARENESS IS T.V. FOLLOWED BY VARIOUS OTHER MEDIAS LIKE NEWSPAPER, MAGAZINES, HOARDINGS ETC.

14) How do you rate the ads? a) b) c) d) e)



OBJECTIVE : TO DETERMINE THE RATE OF LIKING OF THE ADVERTISEMENTFINDINGS : THE FINDINGS REVEAL THE FACT THAT THE MAJORITY OF THE PARTICIPANTS LIKED THE ADVERTISEMENTS BUT THE STUDENT PARTICIPANTS ADMIRED THE ADVERTISEMENT THE MOST.

15) Number of family members? a) 2 b) 3 c) 4 d) 5 e) more than 5



OBJECTIVE : TO ANALYSE THE EFFECT OF FAMILY SIZE ON PURCHASE OF BIKESFINDINGS : THE FAMILY WITH MORE THAN 3 MEMBERS USUALLY PURCHASE BIKES INSPITE OF MAINTAINING A CAR FOR CONVINIENCE AND TRAFFIC CONJESTIONS.

16) Monthly family income? a) 7500-12500 b)12501-17500 c) 17501-22500 d) 22501 and above



OBJECTIVE : TO ANALYSE THE PURCHASING POWER OF THE RESPONDENTS

FINDINGS : THE DATA ANALYSED SUGGESTS THAT THE SEGMENT PURCHASING BIKES WERE MOSTLY FROM THE GROUP 17501 TO 22500.

CONCLUSION Among the five attributes ( which we considered important for

customers’ purchasing decision ) customers gave highest consideration to looks and style followed by the mileage. Other attributes like comfort, service and spares were considered later.

Hero Honda and Bajaj are the biggest competitor in the two wheeler market.

Normally, all the three segments maintained their bike single handed and thestudents and the servicemen serviced their bikes regularly but the businessmen were a little hesitent in their servcing of the bikes.

Electronic media ( TV) is the most commonly used medium for the brand awareness. Other medias like magazines, newspaper, hoardings came later.

The most important finding is that brand advertising for Bajaj is much more than any other brand and is quickly picking up the interest of the cosumers and hence coming with a larger market share. May be it could overcede Hero Honda in a couple of days to come.

RECOMMENDATIONS 1. Apart from mileage, Hero Honda should also focus on the looks and

style of the bike which could atrract the consumers.

2. Hero Honda should also focus its products on the student and the businessmen arena apart from just being concentrating on the servicemen segment.

3. Bajaj although focussing on the demands of their target customers, it should also focus on the service and spare segment.

4. To increase the demand for the newly launched products, Hero Honda should also focus on the advertising of its products.

5. Both the companies should conduct reseach to know the preferences of the customer by allowing them to design their product on internet. This would help the companies to make a customised product.

Documents

Overview of the Automobile Industry