A

RESEARCH PROJECT REPORT

ON
“A COMPARATIVE STUDY OF CONSUMER
BEHAVIOR TOWARDS BAJAJ MOTORBIKES AND
HERO MOTOCORP”

SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE DEGREE
OF
BACHELOR OF BUSINESS ADMINISTRATION
(BANKING)
Batch 2016-19

Submitted To : Submitted By :

Dr. NARENDER TANWAR MILIND BHATIA

Controller of Examination BBA (VI SEM)
MRIIRS, Faridabad Roll No.-
16/FCBS/BBA(BANK)/013

1
 STUDENT DECLARATION

I undersign MILIND BHATIA student of BBA here by declared that the research

report entitled ‘A COMPARATIVE STUDY OF CONSUMER BEHAVIOR

TOWARDS BAJAJ MOTORBIKES AND HERO MOTOCORP” is completed and

submitted under the guidance of “Dr. NARENDER TANWAR, my original

work. The imperial finding in this report is based on the data collected by me.

MILIND BHATIA

BBA (VI SEM) Roll No. -

16/FCBS/BBA(BANK)/013

2
 PREFACE

Practical and Theory are the two aspects of Management education. The
practical training in the domain of management courses has received vital
importance. It exposes to the potential manager towards the actual work
situation and gives a student rich insight into what practically is going on
inside the industries, infect it is the implementation of theory into practices
which is the life force of management.
Practical training is an obligatory requirement for the B.B.A
There have been considerable changes in the technology, operation and
structure of the industry due to globalization, mergers, environmental issues
and available fiber sources, and new challenges being posed by the changing
customer satisfaction levels and multiple market requirements are forcing
industry to adapt to new solutions.

I was assigned special Project: -

A COMPARATIVE STUDY OF CONSUMER BEHAVIOR TOWARDS BAJAJ
MOTORBIKES AND HERO MOTOCORP

3
 ACKNOWLEDGEMENT

The research on “A COMPARATIVE STUDY OF CONSUMER

BEHAVIOR TOWARDS BAJAJ MOTORBIKES AND HERO

MOTOCORP” has been given to me as part of the curriculum in Bachelor

Degree in Business Administration.

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

“Dr. Narender Tanwar 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.

INDEX

4
Sr No. Particulars Page no

1. INTRODUCTION 4

2. RESEARCH METHODOLOGY 36

3. LIMITATION OF RESEARCH STUDY 38

4. OBJECTIVES OF THE STUDY 39

5. DATA ANALYSIS AND INTERPRETATION 40

6. CONCLUSION 51

7. RECOMMENDATION 52

8. BIBLIOGRAPHY 53

9. QUESSIONAIRE 57

5
 INTRODUCTION

EXECUTIVE SUMMARY
Doing this project was a great experience. The Bajaj in India has set up an
independent organizations which is H.C.C & B.C.C. with a capital of 350 U.S.
$ each by virtue of sellout decision of the passed .

Present Auto Mobile boon in India was attributed to the legacy of Bajaj which
was there in India. In today’s market the Bajaj hold a 62% market share that
appears to bear concentrated rush to beg a big share in the Auto Mobile market.

Being a capital & biggest business center of India I choose the Lucknow to
conduct my study and to get lot of exposure & various opportunities to meet
different kind of customers. This project has been under taken to study the
availability of complete range of Auto Mobile products to retail outlets.

To conduct the detail study of my project, I worked for a distributor in

Lucknow. During the training period I covered the whole market of Lucknow
Area and gathered the information from retail outlets regarding the availability
of whole range of Bajaj. After getting the information, I list out those retail
outlets and getting the response regarding the various promotional schemes of
Bajaj and other.

6
 BAJAJ AUTO LIMITED

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. Initial 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 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.

7
 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 - 411035
India
Tel.: +(91)-(20)-27472851
Fax: +(91)-(20)-27473398
Works  Akurdi, Pune 411035
 Bajaj Nagar, Waluj Aurangabad 431136
 Chakan Industrial Area, Chakan, Pune
411501
E-mail rahulbajaj@bajajauto.co.in
Website www.bajajauto.com

Bajaj Auto Limited

8
Type Public
Founded 1945
Headquarters Pune, India
Key people Rahul Bajaj (Chairman)
Rs. 1,01,063 billion (2006) or
Revenue
US$1.87 billion
Net income Rs. 17,016 billion
Employees ???
Website www.bajajauto.com

Bajaj Auto is a major Indian automobile manufacturer. It is India's largest and

the world's 4th largest two- and three-wheeler maker. It is based in Pune,

Maharashtra, with plants in Waluj near Aurangabad, Akurdi and Chakan, near

Pune. Bajaj Auto makes motorscooters, motorcycles and the auto rickshaw.

Company's history

Bajaj Auto came into existence on November 29, 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 license from the Government of India to

manufacture two- and three-wheelers and it went public in 1960. In 1970, it

rolled out its 100,000th vehicle. In 1977, it managed to produce and sell

9
100,000 vehicles in a single financial year. In 1985, it started producing at

Waluj in Aurangabad. In 1986, it managed to produce and sell 500,000

vehicles in a single financial year. In 1995, it rolled out its ten millionth vehicle

and produced and sold 1 million vehicles in a year.

10
Timeline of new releases

 1971 - three-wheeler goods carrier

 1972 - Bajaj Chetak
 1976 - Bajaj Super
 1977 - Rear engine Autorickshaw
 1981 - Bajaj M-50
 1986 - Bajaj M-80, Kawasaki Bajaj KB100
 1990 - Bajaj Sunny
 1994 - Bajaj Classic
 1995 - Bajaj Super Excel
 1997 - Kawasaki Bajaj Boxer, Rear Engine Diesel Autorickshaw
 1998 - Kawasaki Bajaj Caliber, Legend(India's first four-stroke scooter)
 2000 - Bajaj Saffire
 2001 - Eliminator, Pulsar
 2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar
 2004 - Bajaj CT 100, New Bajaj Chetak 4-stroke with Wonder Gear,
Bajaj Discover DTS-i
 2005 - Bajaj Wave, Bajaj Avenger, Bajaj Discover
 2006 - Bajaj Platina
 2007 - Bajaj Pulsar-200

Some of the models that Bajaj makes (or has made) are:

Scooters

o Bajaj Sunny

o Bajaj Chetak

o Bajaj Cub

11
 o Bajaj Super

o Bajaj Wave

o Bajaj Legend

Motorcycles

o Kawasaki Eliminator

o Bajaj Pulsar

o Bajaj Kawasaki Wind 125

o Bajaj Boxer

o Bajaj CT 100

o Bajaj Platina

o Bajaj Caliber

o Bajaj Discover

o Bajaj Avenger

Upcoming Models

 Bajaj Pulsar 220 DTS-Fi

 Bajaj Krystal

 Bajaj Blade

 Bajaj Sonic

12
MANAGEMENT PROFILE

Rahul Bajaj Chairman

Madhur Bajaj Vice Chairman
Rajiv Bajaj Managing Director
Sanjiv Bajaj Executive Director

Abraham Joseph Vice President (Research & Development)

Pradeep Shrivastava President (Engineering)
S Sridhar CEO (2WH)
R C Maheshwari CEO (Commercial Vehicles)
C P Tripathi Vice President (Corporate)
N H Hingorani Vice President (Commercial)
Kevin P D'sa Vice President (Finance)
V S Raghavan Vice President (Corporate Finance)
S Ravikumar Vice President (Business Development)
K Srinivas Vice President (Human Resources)
Ranjit Gupta Vice President (Insurance)
J. Sridhar Company Secretary

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

13
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

Shareholders’ & Investors’ Grievance committee

D.J. Balaji Rao Chairman
J.N. Godrej
Naresh Chandra
S. H. Khan

Remuneration committee

14
D.J. Balaji Rao Chairman
S.H. Khan
Naresh Chandra

15
 MISSION

 The corporate mission of the company is:

 To become a very significant player in two wheeler industry.
 To increase the net worth of shareholders equity.
 To give the transparency and fairness for the products.

VISION:

To build a quality sales force which is highly competitive and committed to

build an ever-lasting customer relationship?

OBJECTIVE:

The main objective of Bajaj is to help the dealer to sell additional volume
from outside the dealership. With wide range of models available in the market,
it has become difficult for the consumer to select from the showroom, therefore
salesman representatives guide him/her to choose the best suited for their need.

GROUP COMPANIES

 Bajaj Auto Ltd.

 Mukand Ltd
 Bajaj Auto Finance Limited
 Herculas Hoists Ltd.
 Bajaj Sevashram Ltd.
 Hind Laps Ltd

16
 INTRODUCTION OF BAJAJ AUTO LIMITED

The Bajaj Group came into existence during the turmoil and the heady
euphoria of India's freedom struggle. Jamnalal Bajaj, founder of the Bajaj
Group, was a confidante and disciple of Mahatma Gandhi, and was deeply
involved in the effort for freedom. The integrity, dedication, resourcefulness
and determination to succeed which are characteristic of the Company today,
are often traced back to its birth during those long days of relentless devotion
to a common cause.

Kamalnayan, the eldest son of Jamnalal Bajaj, succeeded his father in 1942, at
the age of twenty-seven. Putting the Nation before business, he devoted
himself to the latter only after India achieved independence in 1947. But when
he did so, he put his heart and soul into it. Within a short while, he not only
consolidated the Group, but also diversified into various manufacturing
activities, elevating the Group to the status it enjoys till this day.

Rahul Bajaj today heads the Group. He has been the Chief Executive Officer of
Bajaj since 1968 and is recognised as one of the most outstanding business
leaders in India. As dynamic and ambitious as his illustrious predecessors, he
has been recognised for his achievements at various national and international
forums.

Bajaj is currently India's largest two and three-wheeler manufacturer and one
of the biggest in the world. Bajaj has long left behind its annual turnover of
Rs.72 million (1968), to currently register an impressive figure of Rs.42.16
billion (US$ 936 million).

17
Our Philosophy
• We approach our responsibilities with ambition and resourcefulness.
• We organize ourselves for a transparent and harmonious flow of work.
• We respect sound theory and encourage creative experimentation.
• And we make our workplace a source of pride.

We Believe In
• Transparency: a commitment that the business is managed
along transparent lines.
• Fairness: to all stakeholders in the Company, but
especially to minority shareholders.
• Disclosure: of all relevant financial and non-financial
information in an easily understood manner.
• Supervision: of the Company’s activities by a professionally
competent and independent board of directors.

18
 INTERNATIONAL MARKETING

Based on our own brand of globalization, we have built our distribution

network over 60 countries worldwide and multiplied our exports from 1% of
total turnover in Fiscal 1989-90 to over 5% in Fiscal 1996-97

The countries where our products have a large market are USA, Argentina,
Colombia, Peru, Bangladesh, Sri Lanka, Italy, Sweden, Germany, Iran and
Egypt. Bajaj leads Colombia with 65% of the scooter market, in Uruguay with
30% of the motorcycle market and in Bangladesh with 95% of the three-
wheeler market.

Several new models are being developed specifically for global markets and
with these we will progressively endeavour to establish our presence in Europe
too.

In countries where we perceive a good market potential, we seek a tie up with

one of the major industrial establishments, which would be in a position to
invest in the research and which would also entail manufacturing activities
apart from marketing, distribution and after sales services through a well-
established nation-wide network.

We offer a full range of services to such business partners:

• Training in sales, service and spare parts management based on the Bajaj
distribution system.
• Active support for setting up manufacturing facilities overseas including
transfer of technical know how.
• Assistance in setting up an assembly plant for assembly of vehicles from
complete knocked down (CKD) kits.
• Select machinery and equipment, training of technical personnel, all in a
phased manner as required by the regulations in the recipient country.

19
 Product Profile

The much awaited 4 stroke bike to be launched by Bajaj in coloration with Is

all about pure performance as regards engine power, riding stability, Handling

easy and braking efficiency. Secondary air induction system, bi starter valve

for easy morning starting, five speed transmission system have been introduced

in all new bikes which have been come up to introducing bikes in new

segment. There have been some new technologies introduced that shows

companies product different from others.

20
 MARKET COMPOSITION

PRODUCT MAR-DEC (2003) MAR (2003)-DEC GROWTH

(2004)
Scooter gears 3,27658 533887 38.6
Scooters-geared 62957 52796 19.2
Step-thrus 97499 124821 21.9
Motor-cycles 314641 166530 88.9
Three-wheelers 123302 127511 3.3

21
 TWO WHEELER STATISTICS

The automobile industry in general and two wheeler industry in particular has
shown a tremendous growth over the recent years. According to the Society of
Indian automobile Manufactures (SIAM) the industry has grown by 16% in
the year 2003/2004.Two Wheeler segment as a whole during the year 2004/05
grew by over 15%.This growth has been due to the Government's initiative on
rural roads and better connectivity with major towns and cities, improved
agricultural performance, upward trend of purchasing power in the hands of
rural people.The two wheeler industry was able to achieve the record
performance of crossing 6 million two wheelers with exact sales standing at
6,208,860 during the year 2004-05. The northward trend of growth among the
two-wheelers is set to continue in the years ahead.A brief input about the
growth of various segment of two-wheelers with the statistics from their
leading manufactures are as follows:

SCOOTERS

2002-03 2003-04 2004-05 2005-06 2007-08

937506 848434 935279 987498 1020013

Though the metal bodied geared scooters have fallen out of favour of the
Indian two-wheeler user their upward trend in growth has been due to rise in
the sales of scooterettes and Motor scooters. Bajaj Auto has been able to sell
152,936 units in the year 2004/2005 of two wheelers which don't include
motorcycles. They have shown a negative trend in the two wheeler segment
other than the motorcycles. This goes on to show that Bajaj Auto has lost its
supremacy in the scooter and moped segment as they have shifted focus to
motorcycles.

22
MOTORCYCLES

2003-04 2005-06 2006-07 2007-08 2008-09

2906323 3876175 4355168 5193894 6201214

Motorcycles as has been mentioned through out this website have become the
most preferred choice among all two-wheeler users. They account for nearly
80% of the total two wheeler sales in the country. This trend is set to continue
as more and more models of this hot set of two wheelers enter the market.
Bajaj Auto one of the largest manufactures of two wheelers in the country has
managed to sell about 1,449,710 units of motorcycle in the year 2004/2005.
hero honda which claims to be the largest manufacturer of two-wheeler in the
world was able to sell 2.62 million motorcycles during the year 2005/2005.
The company also accounts for half the market in the motorcycle segment.

MOPEDS

2002-03 2003-04 2004-05 2006-07 2007-08

427498 351612 332294 348437 379574

Mopeds which were once the entry level options in the two-wheeler, have
been replaced by entry level or price category bikes which provide all the
comfort and advantages of a motorcycle but at an affordable price. Thus it has
not come as a surprise that mopeds have shown a negative growth over the
recent years. TVS Company one of the pioneers of mopeds manufactures of
India was able to sell about 2.90 lakh of mopeds during 2005/2006. This trend
is supposed to continue in the days to come, as the motorcycles race ahead
other two-wheelers will find it difficult keep up with the pace of their growth.

23
 MOTORCYCLES

Motorcycles have come a long way since they were first introduced in the
country way back in the 1950s. The Indian government had got the first set of
these mean machines from the Royal Enfield Company of UK for its' Army
and Police to patrol the border highways on the rough and tough terrain of the
West. Today these sets of two wheelers not only cater to the men in uniform,
but also common people who have different needs and expectations from their
motorcycles. Today motorcycle companies are taking special care to make
their products more user friendly comfortable, safe, and ergonomic without
compromising on the fun and thrills of riding. Some bikes like the hero honda
Karizma can touch speeds up to 125kmph thus truly satisfying the riders need
for speed. motorcycles have also invaded the Hindi film industry where
Bollywood heart throbs like John Abraham, Hrithik Roshan , Uday Chopra and
Fardeen Khan are seen setting the roads on fire with their set of two wheels.
Thus the trend of motorcycles have caught up with the average Indian and
there a bike to suit everyone's needs and usage. Premium Segment bikes like
the hero honda Karizma and Bajaj Pulsar provides the Generation Y a chance
to emulate their idols on screen. These motorcycles come with 5 speed gear
box and disc brakes to provide one the extra throttle with the adequate safety
measure. Kinetic Acquila the premium segment bike from Kinetic has
headlamp that turns head with the bike thus making riding easier in the
darkness of the night. These motorcycles also come with factory fitted allow
wheels to provide the extra strength and stability.
The Enfield Bullet enjoys a loyal following among its users; people who ride
these heavy machines once always vouch for their sturdiness and stability.
Bullet clubs have cropped up in various cities of the country like Bangalore,
where motorcycle users who are in love with their machines frequent the road
less traveled

24
India has a burgeoning middle class, which means that value for money bikes
like the hero honda splendor, Bajaj Discover and TVS Victor have retained
their importance with every passing day. These bikes are a hit among the office
goers and small time business men who demand maximum output from their
two wheelers. motorcycles like the hero honda splendor come in a wide
range of colors and give an average mileage of 70 km per liter.

The entry level segment of motorcycles also has a cut throat competition with
the two wheeler manufacturers trying to outdo each other by providing that
extra edge in economy biking. Some of the bikes which are available at the
entry level include the hero honda CD Dawn, Yamaha Crux, TVS Star and
Bajaj CT 100. The TVS motor company has posted strong growth due to the
growing popularity of TV Star across all markets. TV Star has an engine
displacement of 99.7 cc and claims to give an average of over 100 kmpl.

Thus the Indian motorcycle users have a lot of option across all levels to kick
start his riding.
GROWTH OF TWO WHEELER INDUSTRY

The scooter market slowly losing its hold it is considered a family vehicle but
perhaps there is a competition from the second hand car market where prices
have fallen rapidly. A Maruti 8000 model Is now available for just Rs. 50,000.
The scooters manufacturers have to watch this phenomenon and bring out
many new product variants in the right price slots to sustain their share in the
market. The market share of major players in 2005-06 as follows:

25
 India has the largest number of two wheelers in the world with 41.6

million vehicles. India has a mix of 30 percent automobiles and 70 percent two

wheelers in the country. India was the second largest two wheeler manufacturer

in the world starting in the 1950’s with the birth of Automobile Products of

India (API) that manufactured scooters. API manufactured the Lambrettas but,

another company, Bajaj Auto Ltd. surpassed API and remained through the

turn of the century from its association with Piaggio of Italy (manufacturer of

Vespa).

The license raj that existed between the1940s to1980s in India, did not allow

foreign companies to enter the market and imports were tightly controlled. This

regulatory maze, before the economic liberalization, made business easier for

local players to have a seller’s market. Customers in India were forced to wait

12 years to buy a scooter from Bajaj. The CEO of Bajaj commented that he did

not need a marketing department, only a dispatch department. By the year

1990, Bajaj had a waiting list that was twenty-six times its annual output for

scooters.

26
The motorcycle segment had the same long wait times with three

manufacturers; Royal Enfield, Ideal Jawa, and Escorts. Royal Enfield made a

350cc Bullet with the only four-stroke engine at that time and took the higher

end of the market but, there was little competition for their customers. Ideal

Jawa and Escorts took the middle and lower end of the market respectively.

In the mid-1980s, the Indian government regulations changed and permitted

foreign companies to enter the Indian market through minority joint ventures.

The two-wheeler market changed with four Indo-Japanese joint ventures: Hero

Honda, TVS Suzuki, Bajaj Kawasaki and Kinetic Honda. The entry of these

foreign companies changed the Indian market dynamics from the supply side

to the demand side. With a larger selection of two-wheelers on the Indian

market, consumers started to gain influence over the products they bought and

raised higher customer expectations. The industry produced more models,

styling options, prices, and different fuel efficiencies. The foreign companies

new technologies helped make the products more reliable and with better

quality. Indian companies had to change to keep up with their global

counterparts.

27
Hero Honda Motorcycle Ltd.

Type Public company BSE:HEROHONDA M

Founded January 19, 1984 in Gurgaon, Haryana, India
Headquarters Haryana, India
Om PrGaurav Munjal, Founder

Mr. Brijmohan Lall Munjal, Chairman

Key people Mr. 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

Hero Honda Motorcycles Limited is an Indian manufacturer of motorcycles

and scooters. 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 and Gurgaon, both in

28
Haryana, India. It specializes in dual use motorcycles that are low powered but

very fuel efficient.

[ Company Profile ]

“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.

In the year 1984, Mr. Brijmohan Lal Munjal, the Chairman and Managing

Director of Hero Honda Motors (HHM), headed an alliance between the

Munjal family and Honda Motor Company Ltd. (HMC). HHM Mission

Statement is: “We, at Hero Honda, are continuously striving for synergy

between technology, systems, and human resources to provide products and

29
services that meet the quality, performance, and price aspirations of our

customers. While doing so, we maintain the highest standards of ethics and

societal responsibilities, constantly innovate products and processes, and

develop teams that keep the momentum going to take the company to

excellence in the new millennium”. This alliance became one of the most

successful joint ventures in India, until the year 1999 when HMC had

announced a 100% subsidiary, Honda Motorcycle & Scooter India (HMSI).

This announcement caused the HHM stock price to decrease by 30 percent that

same day. Munjal had to come up with some new strategic decisions as, HMSI

and other foreign new entry companies were causing increased intensity of

rivalry for HHM.

== Growth == The business growth of Hero Honda has been phenomenal

throughout its early days. The Munjal family started a modest business of

bicycle components. 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. Hero

Honda Motors Limited was established in joint venture with Honda Motors of

Japan in 1984, to manufacture motorcycles. It is currently the largest producer

of Two Wheelers in the world. It sold 3 million bikes in the year 2005-2006.

Recently it has also entered in scooter manufacturing, with its model

PLEASURE mainly aimed at girls. The Hero Group has done business

30
differently right from the start and that is what has helped them to achieve

break-through in the competitive two-wheeler market. The Group's low key,

but focused, style of management has earned the company plaudits amidst

investors, employees, vendors and dealers, as also worldwide recognition.

The growth of the Group through the years has been influenced by a number of

factors:

31
[ Just-in-Time ]

The Hero Group through the Hero Cycles Division was the first to introduce

the concept of just-in-time inventory. The Group boasts of superb operational

efficiencies. Every assembly line worker operates two machines

simultaneously to save time and improve productivity. The fact that most of the

machines are either developed or fabricated in-house, has resulted in low

inventory levels. In Hero Cycles Limited, the just-in-time inventory principle

has been working since the beginning of production in the unit and is

functional even till date.. This is the Japanese style of production and in India;

Hero is probably the only company to have mastered the art of the just-in-time

inventory principle.

[ Ancillarisation ]

An integral part of the Group strategy of doing business differently was

providing support to ancillary units. There are over 300 ancillary units today,

whose production is dedicated to Hero's requirements and also a large number

of other vendors, which include some of the better known companies in the

automotive segment. Employee Policy:

Another Striking feature within the Hero Group is the commitment and

dedication of its workers. There is no organized labor union and family

members of employees find ready employment within Hero. The philosophy

32
with regard to labor management is "Hero is growing, grow with Hero." When

it comes to workers' benefits, the Hero Group is known for providing facilities,

further ahead of the industry norms. Long before other companies did so, Hero

was giving its employees a uniform allowance, as well as House Rent

Allowance (HRA) and Leave Travel Allowance (LTA). Extra benefits took the

form of medical check-ups, not just for workers, but also for the immediate

family members.

[ Dealer Network ]

The relationship of Hero Group with their dealers is unique in its closeness.

The dealers are considered a part of the Hero family. A nation-wide dealer

network comprising of over 5,000 outlets, and have a formidable distribution

system in place. Sales agents from Hero travels to all the corners of the

country, visiting dealers and send back daily postcards with information on the

stock position that day, turnover, fresh purchases, anticipated demand and also

competitor action in the region. The manufacturing units have a separate

department to handle dealer complaints and problems and the first response is

always given in 24 hours.

[ Financial Planning ]

The Hero Group benefits from the Group Chairman's financial acumen and his

grasp on technology, manufacturing and marketing. Group Company, Hero

33
Cycles Limited has one of the highest labor productivity rates in the world. In

Hero Honda Motors Limited, the focus is on financial and raw material

management and a low employee turnover.

[ Quality ]

Quality at Hero is attained not just by modern plants and equipment and

through latest technology, but by enforcing a strict discipline. At the Group

factories, attaining quality standards is an everyday practice - a strictly pursued

discipline. It comes from an amalgamation of the latest technology with deep-

rooted experience derived from nearly four decades of hard labor. It is an

attitude that masters the challenge of growth and change - change in

consumers' perceptions about products and new aspirations arising from a new

generation of buyers.

Constant technology up gradation ensures that the Group stays in the global

mainstream and maintains its competitive edge. With each of its foreign

collaborations, the Group goes onto strengthen its quality measures as per the

book. The Group also employs the services of independent experts from

around the world to assist in new design and production processes.

[ Diversification ]

Throughout the years of enormous growth, the Group Chairman, Mr. Lall has

actively looked at diversification. A considerable level of backward integration

34
in its manufacturing activities has been ample in the Group's growth and led to

the establishment of the Hero Cycles Cold Rolling Division, Munjal and

Sunbeam Castings, Munjal Auto Components and Munjal Showa Limited

amongst other component-manufacturing units.

Then there were the expansion into the automotive segment with the setting up

of Majestic Auto Limited, where the first indigenously designed moped, Hero

Majestic, went into commercial production in 1978. Then development.

Further expansion is expected in the areas of Insurance and

Telecommunication.

The Hero Group's phenomenal growth is the result of constant

innovations, a close watch on costs and the dynamic leadership of the

Group Chairman, characterized by a culture of entrepreneurship, of right

attitudes and building stronger relationships with investors, partners, vendors

and dealers and customer

came Hero Motors which introduced Hero Puch, in collaboration with global technology

leader Steyr Daimler Puch of Austria. Hero Honda Motors was established in 1984 to

manufacture 100 cc motorcycles.

The Hero Group also took a venture into other segments like exports, financial services,

information technology, which includes customer response services and software

35
 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.

36
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 Meerut. 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 A COMPARATIVE STUDY of

Consumer satisfaction towards BAJAJ V/S HERO MOTOCORP and data

was taken in the City Lucknow only.

37
 LIMITATIONS

1. Research work was carried out in one Distt of Punjab (MUKTSAR) 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.

38
 OBJECTIVES OF THE STUDY

5. To know the market share of Bajaj & Hero Honda.

6. To know the perception of customers regarding bikes.

7. To determine the customers satisfaction regarding bikes.

8. To determine the factors influencing the choice of customers regarding

bikes.

39
 DATA ANALYSIS

Q1) Which bike do you

have?

Hero Honda 47
Bajaj 38
Any other 15

40
Q2) Which Model do you Have?

Hero Honda Bajaj

Splender 21 CT 100 7
Passion 13 Discover 12
Karizma 7 Pulsar 11
Any other 6 Any other 8

41
Q3) In which family Income level do you

Fall?

100000-200000 22
200000-300000 45
300000-400000 23
above 400000 10

42
Q4) For how long do you own a bike?

0-1 year 34
1-2 year 29
2-3 year 26
above 3 year 11

43
Q5) For what purpose do you use your Motor Bike?

Hero Honda Bajaj

Office Purpose 9 4
Personal purpose 13 15
Joy Purpose 19 16
Other 6 3

44
Q6) How do you come to know about this Motor Bike?

Hero Honda Bajaj

Newspaper 4 2

Television 23 16

Magazine 2 1

Friends &

Relative 18 19

45
Q7) Does Advertisement Influence your

decision in choosing a Motor Bike?

Yes 87%
No 5%
Cant say 8%

46
Q8) Do you have full knowledge about Bikes before

buying?

Hero Honda Bajaj

Yes 25 23

No 22 15

47
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%

48
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%

49
Q11) If new Bike with good features comes in, then

would you like to change your bike?

Hero Honda Bajaj

Yes 19 21
No 17 14
Cant say 11 3

50
 CONCLUSION

1. Most of the Pulsar, CBZ & 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.

2. Hero Honda 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 more than 3

years.

51
 RECOMMENDATIONS

1. Bajaj should introduce some more models having more engine power.

2. Hero Honda should think about fuel efficiency 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.

52
 BIBLIOGRAPHY

Kotler, Philip and Gary Armstrong (1999),

Marketing Management (New Delhi: Prentice Hall of India)

Kothari, C. R.(1999),

Research Methodology (Delhi: Global Business Press)

Magazines:

Business World (15 April, 2004)

Business Today (Collector Edition Vol.1)

India Today (16 April, 2005)

1. www.herohonda.com

2. www.google.com

3. www.bajaj.com

4. www.twowheeler.com

5. www.extrememachines.com

53
 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

54
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

55
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?

56
 Yes No Can’t say

Q12) Any Suggestions for Company

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………

Date: (Signature)

57