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A PROJECT
ON
COMPARATIVE ANALYSIS
BASED ON
“Bajaj Auto v/s Hero MotoCorp”
NAME: Aamir Firoz
UNIVERSITY REGISTRATION NUMBER: -
UNIVERSITY ROLL NUMBER: -
MAULANA ABUL KALAM AZAD UNIVERSITY OF TECHNOLOGY
YEAR: 3RD
DEPARTMENT: BBA [H]
INSTITUTE OF ENGINEERING AND MANAGEMENT
SESSION: 2013-2016
APPROVAL FORM
NAME OF THE STUDENT: Aamir Firoz
ADDRESS: -
PHONE NUMBER: -
INSTITUTE: Institute Of Engineering & Management
UNIVERSITY: Maulana Abdul Kalam Azad University Of Technology
REGISTRATION NUMBER: -
ROLL NUMBER: -
PROJECT TITTLE: Comparative Analysis on Bajaj Auto & Hero MotoCorp
DURATION: Two months
ACADEMIC GUIDE:__________________________________________________
SIGNATURE OF THE
STUDENT:______________________________________
RECOMMENDED
BY:________________________________________________
APPROVED BY
[PRINCIPAL]:______________________________________________
DECLARATION
I hereby declare that this project “Comparative Analysis on Hero MotoCorp & Bajaj Auto” has
been prepared by me during the year 2016 in partial fulfilment of the requirement for the award
of Degree of Bachelor of Business Administration of the MaulanaAbul Kalam Azad University
of Technology [Former West Bengal University of Technology].
I also declare that this project is a result of my own effort and hard work and that it has
not been submitted to any other university for the award of any Degree or Diploma.
Place:
Date:
______________________________
[Signature of the student]
ACKNOWLEDGEMENT
I would like to express my special thanks of gratitude to my teacher PROF. SEEMITA BOSE
CHOWDHURY & PROF. AJANTA GHOSH as well as our principal PROF. SUBRATA
BASAK who gave me the golden opportunity to do this wonderful project on the topic
“Comparative Analysis on Hero MotoCorp & Bajaj Auto” , which also helped me in doing a lot
of Research and I came to know about so many new things I am really thankful to them.
Secondly I would also like to thank my parents and friends who helped me a lot in
finalizing this project within the limited time frame.
INDEX
1. INTRODUCTION………………………………………………………………
1.1 History of Bajaj Auto
1.2 Profile of Bajaj Auto
1.3 Timeline of Series
1.4 Other Details
1.5 History of Hero MotoCorp.
1.6 Profile of Hero MotoCorp.
1.7 Timeline of Series
1.8 Other Details
2. RESEARCH METHODOLOGY………………………………………………..
3. OBJECTIVES OF THE STUDY………………………………………………..
4. LIMITATIONS OF THE STUDY………………………...………………….....
5. DATA ANALYSIS………………………………………..……………….…
6. FINDINGS………………………………………..…………………………
7. CONCLUSION………………………………………………………………
8. RECOMMENDATION……………………………………………………….
9. ANNEXURE………………………………………………………………...
1.0 Introduction
1.1 History of Bajaj Auto
Bajaj Auto came into existence on 29 November 1945 as M/s Bachraj Trading Corporation
Private Limited. It started off by selling imported two- and three-wheelers in India. In 1959, it
obtained a licence from the Government of India to manufacture two-wheelers and three-
wheelers and it became a public limited company in 1960. In 1970, it rolled out its 100,000th
vehicle. In 1977, it sold 100,000 vehicles in a financial year. In 1985, it started producing at
Waluj near Aurangabad. In 1986, it sold 500,000 vehicles in a financial year. In 1995, it rolled
out its ten millionth vehicle and produced and sold one million vehicles in a year. With the
launch of motorcycles in 1986, the company has changed its image from a scooter manufacturer
to a two-wheeler manufacturer.
Bajaj Auto Limited is an Indian two-wheeler and three-wheeler manufacturing company. Bajaj
Auto manufactures and sells motorcycles, scooters and auto rickshaws. Bajaj Auto is a part of
the Bajaj Group. It was founded by Jamnalal Bajajin Rajasthan in the 1930s. It is based
in Pune, Mumbai, with plants in Chakan (Pune), Waluj (near Aurangabad)
andPantnagar in Uttarakhand. The oldest plant at Akurdi (Pune) now houses the R&D centre
'Ahead'.
Bajaj Auto is the world's sixth-largest manufacturer of motorcycles and the fourth-largest in
India. It is the world’s largest three-wheeler manufacturer.
On May 2015, its market capitalisation was 640 billion (US$9.5 billion), making it India's 23rd
largest publicly traded company by market value. The Forbes Global 2000 list for the year 2012
ranked Bajaj Auto at 1,416.
1.2 Profile of Bajaj Auto
Founder Jamnalal Bajaj
Key people Rahul Bajaj (Chairman)Rajiv Bajaj (MD)
Year of Establishment 1945
Industry Automotive - Two & Three Wheelers
Business Group The Bajaj Group
Listings & its codes BSE: 532977; NSE: BAJAJ-AUTO
Employees 9119
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 OfficeAkurdi 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
1.3 Timeline of new releases
Year Products
1961–1971 Vespa 150
1971 Bajaj 150 scooter
1972 Bajaj Chetak
1976 Bajaj Super
1986 Bajaj M-80, Kawasaki Bajaj KB100
1994 Bajaj Classic
1995 Bajaj Super Excel
1997 (Bajaj KB125) Kawasaki Bajaj Boxer
1998 Kawasaki Bajaj Caliber, Bajaj Super 99
1999 Bajaj Legend, Bajaj Chetak 99, Bajaj Spirit
2001 Eliminator, Bajaj Pulsar, Kawasaki Bajaj Aspire, Caliber Croma
2003 Caliber 115, Kawasaki Bajaj Wind 125, Bajaj Pulsar DTS-i
2004 Bajaj CT 100, New Bajaj Chetak 4-stroke with Wonder Gear, Bajaj Discover DTS-i
2005 Bajaj Wave, Bajaj Avenger, Bajaj Discover 112
2006 Bajaj Platina
2007 Bajaj Pulsar-200 (Oil Cooled), Bajaj Pulsar 220 DTS-Fi (Fuel Injection), XCD 125 DTS-Si
2008 Bajaj Discover 135 DTS-i – sport Upgrade of existing 135 cc model
2009 Bajaj Pulsar 135, Bajaj XCD 135 cc, Bajaj Pulsar 150 DTS-i UG IV, Bajaj Pulsar 180 DTS-i UG IV, Bajaj Pulsar 220 DTS-i, Bajaj Discover 100 DTS-Si, Kawasaki Ninja 250R
2010 Bajaj Discover 150
2011 Bajaj Discover 125
2012 Bajaj Pulsar 200 NS, Discover 125ST
2013 Bajaj Discover 125ST, Discover 100T
2014 Bajaj Discover 150F, 150S
2015 Bajaj Platina 100 ES, Bajaj CT 100 (Re introduced), Pulsar RS 200, Pulsar AS200, Pulsar AS150, Pulsar NS150, Bajaj Discover 125, Avenger 150 & 220 street
2016 Bajaj V15
1.4 Other Details
Acquisitions:
Bajaj Auto bought a controlling stake in the Tempo Firodia company, renaming it "Bajaj
Tempo". Germany's Daimler-Benz, a long-time collaborator with Firodia because of their
ownership of the original Tempo works in Germany, owned 16% of Bajaj Tempo. Daimler sold
their stake back to the Firodia group in 2001, meaning that they once again held a controlling
interest, with BAL retaining 24% of the shares. It was agreed that Bajaj Tempo would gradually
phase out the use of the "Tempo" brand name, as it still belonged to Mercedes-Benz. The name
of the company was changed to Force Motors in May 2005, dropping "Bajaj" as well as
"Tempo", over the objections of Bajaj Auto with whom the company shares a long history as
well as a compound wall.
Listing & Shareholding:
Bajaj Auto's equity shares are listed on Bombay Stock Exchange where it is a constituent of
the BSE SENSEX index, and the National Stock Exchange of India where it is a constituent of
the CNX Nifty. On 30 Sep 2015, 49.29% of the equity shares of the company were owned by the
promoters Bajaj Group and the remaining were owned by others.
Shareholders (as on 30-Sep-2015) Shareholding %
Promoters:priya Group 49.29%
Mutual Funds, FI's and Insurance Companies 08.13%
Foreign Institutional Investors 14.25%
Individual shareholders 15.12%
Bodies Corporate 08.25%
Foreign Portfolio Investments Corporation 03.51%
GDRs 00.02%
Others 01.43%
Total 100.0%
1.5 History of Hero MotoCorp.
Hero Honda started its operations in 1984 as a joint venture between Hero Cycles (sometimes
called Hero Group, not to be confused with the Hero Group food company of Switzerland) of
India and Honda of Japan. In 2010, when Honda decided to move out of the joint venture, Hero
Group bought the shares held by Honda. Subsequently, in August 2011 the company was
renamed Hero MotoCorp with a new corporate identity. In June 2012, Hero MotoCorp approved
a proposal to merge the investment arm of its parent Hero Investment Pvt. Ltd. with the
automaker. The decision comes 18 months after its split from Hero Honda.
"Hero" is the brand name used by the Munjal brothers for their flagship company, Hero Cycles
Ltd. A joint venture between the Hero Group and Honda Motor Company was established in
1984 as the Hero Honda Motors Limited at Dharuhera, India. Munjal family and Honda group
both owned 26% stake in the Company.
During the 1980s, the company introduced motorcycles that were popular in India for their fuel
economy and low cost. A popular advertising campaign based on the slogan 'Fill it – Shut it –
Forget it' that emphasized the motorcycle's fuel efficiency helped the company grow at a double-
digit pace since inception. In 2001, the company became the largest two-wheeler manufacturing
company in India and globally. It maintains global industry leadership to date. The technology
in the bikes of Hero Motocorp (earlier Hero Honda) for almost 26 years (1984–2010) has come
from the Japanese counterpart Honda. Hero Motocorp Ltd., formerly Hero Honda, is an
Indian motorcycle (<250cc) and scooter manufacturer based in New Delhi, India. The company
is the largest two wheeler manufacturer in India. In India, it has a market share of about 46%
share in 2-wheeler category. The 2006 Forbes 200 Most Respected companies list has Hero
Honda Motors ranked at #108. On 31 March 2013, the market capitalisation of the company was
INR 308 billion (USD 5.66 billion).
1.6 Profile of Hero MotoCorp
Founder Dr. Brijmohan Lall Munjal
Key people Pawan Munjal
Year of Establishment January 19, 1984
Industry Automotive
Listings & its codes BSE: 500182; NSE: HEROMOTOCO
Employees 6782
Registered & Head Office 34,Community Centre, Basant Lok, Vasant ViharNew Delhi – 110057 India
Tel.: +91-11-26142451, 26144121Customer service: 1800 266 0018
Works New Delhi - 110017 Haryana 123106 Gurgaon, Haryana 122001
E-mail [email protected]
Website www.heromotocorp.com
1.7 Timeline of new releases
Pleasure
Maestro
Maestro Edge
Duet
HF Dawn
HF Deluxe
HF Deluxe Eco
Splendor+
Splendor Pro
Splendor Pro Classic
Splendor iSmart
Passion Pro
Passion Pro TR
Passion XPro
Super Splendor
Glamour
Glamour FI
Ignitor
Achiever
Impulse
Hunk
Xtreme (Thriller in LATAM)
Xtreme Sports (Thriller Sports in LATAM)
Karizma R
Karizma ZMR
1.8 Other Details
Acquisitions:In July 2013, HMC acquired 49.2% shareholding in Erik Buell Racing, a motorcycle
sport company which produced street and racing motorcycles based in East Troy, Wisconsin,
USA. EBR filed for bankruptcy in 2015 and Hero Motocorp proceed to acquire certain assets for
$2.8 million USD.
Listing & Shareholding:The equity shares of Hero Motocorp are listed on the Bombay Stock Exchange, where it is a
constituent of the BSE SENSEX index, and the National Stock Exchange of India, where it is a
constituent of the S&P CNX Nifty.
As on 31 December 2013, the promoters Munjal Family held around 40% equity shares in Hero
Motocorp. Over 61,000 individual shareholders hold approx. 7.44% of its shares. Foreign
Institutional Investors hold approx. 30% shares in the company.
Shareholders (as on 31-Dec-2013) Shareholding[31]
Promoter Group 39.92%
Foreign Institutional Investors (FII) 30.63%
Foreign Corporate Bodies 12.29%
Individual shareholders 06.44%
Insurance companies 05.38%
Mutual Funds / UTI 02.56%
Bodies Corporate 01.60%
Financial Institutions / Banks 00.53%
Others 00.60%
Total 100.0%
2.0 RESEARCH METHODOLOGY
It is well known fact that the most important step in finance 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 have been collected by someone 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 Kolkata.
These were 100 respondents.
DATA COMPLETION AND ANALYSIS
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 V/S Hero MotoCorp and data
was taken in the Kolkata only.
3.0 OBJECTIVES OF THE STUDY
To analyze the customer satisfaction.
To analyze the customer preference.
To know which manufacturer is providing better services.
To analyze after sales services of bikes.
To study the behavioural factors of consumers in motor bikes.
To suggest various factors to improve sales.
4.0 LIMITATIONS OF THE STUDY
Research work was carried out in Madurai only the finding may not be applicable to the
other parts of the country because of social and cultural differences.
The sample was collected using connivance-sampling techniques. As such result may not
give an exact representation of the population.
Shortage of time is also reason for incomprehensiveness.
The views of the people are biased therefore it doesn’t reflect true picture.
5.0 DATA ANALYSIS & INTERPRETATIONS
Q1) Which bike do you have?
Hero MotoCorp 47
Bajaj Auto 38
Any other 15
User Choice
Hero MotoCorpBajaj AutoAny Other
Hero MotoCorp Bajaj Auto Any Other0
5
10
15
20
25
30
35
40
45
50
Hero MotoCorpBajaj AutoAny Other
Q2) Which Model do you Have?
HeroMotoCorp Bajaj Auto
Splender 21 CT 100 7
Passion 13 Discover 12
Karizma ZMR 7 Pulsar 11
Any other 6 Any other 8
Hero MotoCorp
SplenderPassionKarizma ZMRAny other
Bajaj Auto
CT 100DiscoverPulsarAny other
Splender Passion Karizma
ZMRAny
otherCT 100 Discover Pulsar Any
other
0
5
10
15
20
25
Hero MotoCorpBaja Auto
Q3) In which family Income level do you Fall?
Range
1,00,000-2,00,000 22
2,00,000-3,00,000 45
3,00,000-4,00,000 23
above 4,00,000 10
Range
1,00,000-2,00,0002.00,000-3,00,0003,00,000-4,00,000above 4,00,000
1,00,000-2,00,000 2,00,000-3,00,000 3,00,000-4,00,000 above 4,00,0000
510
1520
25
303540
45
Range
Range
Q4) For how long do you own a bike?
Year
0-1 34
1-2 29
2-3 26
above 3 11
0-1 year 1-2 year 2-3 year above 3 year0
5
10
15
20
25
30
35
Column1
Column1
Q5) For what purpose do you use your Motor Bike?
HeroMotoCorp Bajaj Auto
Office Purpose 9 4
Personal purpose 13 15
Joy Purpose 19 16
Other 6 3
Ofice PurposePersonel Purpose Joy Purpose
Other
0
2
4
6
8
10
12
14
16
18
20
Hero MotoCorp
Bajaj AUto
Hero MotoCorpBajaj AUto
Q6) How do you come to know about this Motor Bike?
Hero MotoCorp. Bajaj Auto
Newspaper 8 5
Television 23 16
Magazine 5 3
Friends & Relative 21 19
Newspaper Television Magazine Friends & Relative0
5
10
15
20
25
Hero MotoCorpBajaj Auto
Q7) Does Advertisement Influence your decision in choosing a Motor Bike?
Decision
Yes 87%
No 5%
Can’t say 8%
Decision
YesNoCan't say
Yes
No
Can't say
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Decision
Decision
Q8) Do you have full knowledge about Bikes before buying?
Hero MotoCorp. Bajaj Auto
Yes 35 28
No 22 15
Hero MotoCorp
YesNo
Bajaj Auto
YesNo
Yes
No
0 5 10 15 20 25 30 35
Bajaj AutoHero MotoCorp
Price
Milage
Quality
Resale Value
Status Symbol
0% 10% 20% 30% 40% 50% 60% 70% 80%
Bajaj AutoHero MotoCorp.
Q9) Which Factor below Influence your decision?
HeroMotoCorp. Bajaj Auto
Price 72% 78%
Mileage 78% 64%
Quality 65% 48%
Resale Value 40% 28%
Status symbol 10% 7%
Q10) How would you rate the following factors of Bikes with respect to different company?
Hero MotoCorp. Bajaj Auto
Mileage 74% 72%
Price 68% 65%
Pick up 70% 80%
Maintenance 58% 62%
Look & Shape 85% 80%
Brand Image 53% 55%
Mileage
Price
Pick Up
Maintenance
Look & Shape
Brand Image
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Bajaj AutoHero MotoCorp
Q11) If new Bike with good features comes in, then would you like to change your bike?
Hero MotoCorp. Bajaj Auto
Yes 25 21
No 20 17
Can’t say 12 5
Yes
No
Can't Say
0 5 10 15 20 25
Bajaj AutoHero MotoCorp.
Q12) If new bike with good feature comes in, then would you like to change your bikes?
Hero MotoCorp. Bajaj Auto
Yes 22 27
No 15 17
Can’t say 14 5
Yes
No
Can't Say
0 5 10 15 20 25 30
Bajaj AutoHero MotoCorp.
6.0 Findings
During this research project I came in to contact with many customers who are
having bikes. It has been found that in Hero MotoCorp mostly the customers are
having Splendor while the ratio of the customers using Passion, Karizma and other
bikes are comparatively low. In Bajaj the customers are giving more preference to
Discover and Pulsar models and in case of TVS Bikes the customers are givig
more preference to the other models rather than Flame, Starcity and Apache. The
maximum numbers of customers that are using these bikes fall in the income group
of 2,00,000 - 3,00,000. It has been observed that the customers are using their
bikes mostly for official and personal purpose. It is observed that the awareness of
Hero MotoCorp bikes mostly comes from friends while of Bajaj and TVS the
awareness comes from newspapers and televisions. Out of the sample size of 100
customers, 75 customers agree with the fact that advertisements play a very
significant role in influencing their behavior to choose the bike. On the other hand
15 customers do not agree to this fact. While remaining 10 customers are not sure
about it.
When the customers are asked that are they satisfied with the performance of
their bikes then most of them agrees to the fact. Out of the sample size of 100
customers, 65 customers says that they are satisfied with the performance of their
bikes. On the other hand 25 customers are not satisfied with the performance of the
bikes that they are having. While the remaining 10 customers are unable to say
anything. It is observed that most of the customers are having full knowledge of
the bike before purchasing
It has been seen that In Hero MotoCorp bikes the mileage of the bike and the
value that it adds to the status symbol of the customers influences the decision
criteria of most of the customers. In Bajaj bikes customers gets more influenced by
the price and quality of the bike and also they think that it adds value to their
prestige. While in case of TVS bike the economic price of the bikes influences the
buying behavior of the customers.
It is observed that in rating of different features of different bikes people
give maximum rating to the look and shape of the bike. At the second level they
give their rating to the pick up. At the third level they rate mileage. And at the
fourth level they give points to Maintenance. At last they rate price and brand
image.
7.0 Conclusion
1. Most of the Pulsar, CBZ & Karizma ZMR are purchased by young generation
18 to 30 because they prefer stylish looks and rest of the models of Hero
MotoCorp are purchased more by daily users who needs more average of
bikes than looks.
2. Hero MotoCorp is considered to be most fuel-efficient bike on Indian roads.
3. Service & Spare parts are available throughout India in local markets also.
4. While buying a motorcycle, economy is the main consideration in form of
maintenance cost, fuel efficiency.
5. Majority of the respondent had bought their motorcycle for more than 3 years.
8.0 Recommendations
1. Bajaj should introduce some more models having more fuel efficient.
2. Hero MotoCorp should think about high engine power in case of upper
segment bikes.
3. More service centers should be opened.
4. Maintenance cost and the availability of the spare parts should also be given
due importance.
5. They also introduce some good finance/discount schemes for students.
6. The price should be economic.
9.0 Annexure
Questionnaires
NAME: - ………………………………………………
CONTACT NO ……………………………………….
AGE:- 15-20 20-25
25-30 Above 30
OCCUPATION:- Businessman Employee
Student Other
Q1) Which Bike do you have?
Hero Honda Bajaj
Q2) Which Model do you have?
Hero Honda: - Splendor Passion
Karizma Other
Bajaj: - CT 100 Discover
Pulsar Other
Flame Apache
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) Are you satisfied with the performance of the bike that you are currently having?
Yes No Can’t say
Q8) Does Advertisement Influence your decision in choosing a Motor Bike?
Yes No Can’t say
Q9) Do you have full knowledge about Bikes before buying?
Yes No Can’t say
Q10). Which factor below influence your decision?
Price Mileage Quality
Resale Value Status Symbol
Q11) 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
12) If new bike with good feature comes in, then would you like to change your bikes?
Yes No Can’t say
Q13) Any Suggestions for Company
………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
Date: (Signature)
