A SYNOPSIS ON

“A Study of Product Extension in Automobile

Company: Research on Bajaj Vs Hero Honda Bike”

SUPERVISOR SUBMITTED BY

NAME: Mrs. SONALI SAXENA Name : SUVESH KUMAR

Designation: Lecturer Enrollment No: 08061148489
Specialization: MARKETING

Remarks Of The Evaluator

Approved/Disapproved Approved/Disapproved
(I Evaluation) (II Evaluation)

Session: 2008-10

DIRECTORATE OF DISTANCE EDUCATION GURUJAMBESHWAR

OF UNIVERSITY SCIENCE AND TECHNOLOGY, HISAR
 RESUME OF SUPERVISOR/GUIDE

1. NAME: Ms. SONALI SAXENA

2. DESIGNATION: SENIOR LECTURER

3. QUALIFICATION: B.com,MBA,O level in Computers,pursuing PhD

4. AREA OF SPECIALISATION:

5. EXPERIENCE: 2.5 YEARS

6. OFFICIAL ADDRESS: NSB SCHOOL OF BUSINESS NEW DELHI.

7. TELEPHONE No. :------------------(Off)------------------(Res)

8. MOBILE

9. E-MAIL: sonali.saxena@nsb.in

I am willing to supervise Mr. SUVESH KUMAR

Enrollment No- 08061148489

On the topic – “A Study of Product Extension in Automobile Company:

Research on Bajaj Vs Hero Honda Bike”

(Signature)
with seal

Countersigned by the guide with seal

 Countersigned by Director of Study Centre with SEAL

CERTIFICATE

This is to certify that Mr. SUVESH KUMAR Enrolment No. 08061148489

has proceeded under by supervision his Research Project Report on “A Study of

Product Extension in Automobile Company: Research on Bajaj Vs Hero Honda
Bike” in the specialization area Marketing.

The work embodied in this report is original and is of the standard expected of an MBA

student and has not been submitted in part or full to this or any other university for the

award of any degree or diploma. He/she has completed all requirements of guidelines for

Research Project Report and the work is fit for evaluation.

Signature of Supervisor/Guide (with SEAL)

NAME- SONALI SAXENA

DESIGNATION- SENIOR LECTURER

ORGANIA TION-

Centre Forwarded by Head/Director of Study

NSB SCHOOL OF BUSINESS (with signature, Name &

SEAL)

NEW DELHI
 DECLARATION

This is to certify that the Project Report entitled“A Study of Product

Extensionin in Automobile Company: Research on Bajaj Vs Hero Honda
Bike” is an original work and has not been submitted is part or full to this or any
other university/institution the award of any degree or diploma.

Signature of candidate

NAME: SUVESH KUMAR

ENROLMENT NO.: 08061148489

SPECILIZATION: MARKETING

SESSION: JULY 2008-2010

 CONTENTS OF SYNOPSIS

SERIAL NO. CONTENT PAGE

NO.
1 Title of the Project.

2 Review of Literature and Problem statement.

3 Objective of the proposed study

4 Research Methodology ( Source of data, sampling ,

Tools of analysis )
5 Scope and relevance of proposed study

6 Proposed Questionnaire

7 References
 TITLE OF THE PROJECT

“A Study of Product Extension in Automobile

Company: Research on Bajaj Vs Hero Honda Bike”

VS
REVIEW OF LITERATURE & PROBLEM STATEMENT
Hero Honda Motors Ltd. and Baja Auto Sales Inc. Plan to Go for Major Expansion
Programmes
BLOOMBERG BUSINESS WEEK QUOTES:
04/23/2010
Hero Honda Motors Ltd. and Baja Auto Sales Inc. which have both set up units in
Uttarakhand, are planning to go for major expansion programmes despite the expiry of
area-based exemptions. However, the expansion plans are being kept under wraps
apparently due to major rivalry between the two motorcycle manufacturing companies
with their top officials refusing to say much on the issue. Sensing that Hero Honda might
set up its fourth unit at Haridwar, Bajaj Auto Managing Director Rajiv Bajaj would travel
to Pantnagar in the fist week of May to chalk out a new strategy on the expansion
programme. The sources close to the development say the company is going for the
capacity enhancement as part of its second phase expansion plan. Under the plan, the
company is likely to increase the capacity of its plant to 0.1 million from 70,000 units per
month. There may be other plans in the offing, they claimed. On the other hand, Hero
Honda is also looking forward to utilise its nearly 100 acres of vacant land at its
Haridwar manufacturing facility. In addition to this, Hero Honda has also decided to
scale up production at its Haridwar manufacturing facility. The company last year
resolved most of the contentious issues with the State Infrastructure and Industrial
Development Corporation of Uttarakhand Ltd. to retain its hold over the 94 acres of
vacant land at Haridwar.
Two wheeler markets are full of hope and opportunities. The emerging Indian economy
is wooing many firms to enter this foray to consolidate future prospect of the Industry.
Two wheeler segments is a part of giant Indian automobile industry. This segment has
seen 20% to 25% growth rate from the post 2000.India is having 35 crore middle class
family which is target consumers of this segment. Connecting villages to the towns and
state capitals adding the sales every year. Nearly 10 % of Indian population can afford
the four wheeler. This statement itself reveals the future and present prospect of two
wheeler segment.

BAJAJ AUTO which having a long experience of this domain is leaving no stone
unturned to compete with its counterpart HERO HONDA MOTOR , a world leading
company of this segment. But Hero Honda is leading the way by giving consumers more
values and tangibility. Under the leadership of Munjal brothers ,it has set many
milestones in two wheeler market with their market insight and innovation.
In this project I have tried to find out the market capitalization of both giants and to know
the consumers perception towards them. I have tried to analyze the duo on the many
parameter such as Innovation , Technology , popularity , Brand value , customer
perception towards them. For this I got fill up questionnaire as well interviewed to know
their response.
Mileage, price, maintenance, Brand value , effect of advertisement , after sales services
are my course of concern during noting the response of interviewee. As Hero Honda has
been dominating the market for a long time so I have tried to find out the reason behind
this. The factors which makes HH supreme .
OBJECTIVES:-
1. To study the frequent extension in product line of HH & Bajaj

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.

5. To find out the reasons behind the success story of HERO HONDA

RESEARCH METHODOLOGY

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
South Delhi (New Delhi)

These were 100 respondents. Age Group-20 to 40(youth), Male, Students, Working
Professionals

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 “A Study of Product Extension in Automobile

Company: Research on Bajaj Vs Hero Honda Bike” and data was taken in the New
Delhi only.

TOOL OF ANALYSIS

I analyzed the data by the help of statistical tool like pie- chart, graphs on the basis of
input taken by the respondent.

SCOPE/RELEVANCE OF PROPOSED STUDY

Indian consumers are not literally and technically sound like the developed countries
consumers. This is due to awareness level and degree of literacy rate. This analysis can
provide the insight of all stakeholders of two wheeler segments.

Before finally purchasing each & every consumer compares a product with the available
product in the market on many aspects, these are valued for the consumer at large.
 QUESTIONNAIRE
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 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

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

……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
………

REFERENCES
Websites

1. www.google .com
2. www.wiki.com
3. www.autofaq.com

Books

4 Marketing Management John Perrault & Prof. Macarthy

11th editions,
Publisher- Pearson P.No-
234- 235
5 Marketing Management. V.S Ramaswamy & S.N Namakumari (2004),2nd
Edition,pp 144-154,publisher

6 Marketing Management Philip Kotler.2009, 4th Edision, PN-156

Publisher- Pearson India

7 Research Methodology A.K.Gupta & R.Singh(2009) 1st Edison, P No-80 -

85, Publisher- Vayu Education of India

8 Business Enviornment Ila Chaturbedi (2007) 1st Edison P no 19

Publisher- Golgotha Publishing Company

9 Basic Marketing Willian D.Perreault (2009) 15 Edition, Publisher-

Arhihant , P No- 79