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A project report on advertising effectiveness of cold drinks



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  • 1. A project report on advertising effectiveness of cold drinks — Document Transcript1. A PROJECT REPORT ON―STUDY OF ADVERTISING EFFECTIVENESS OF COLD-DRINKS IN BHOPAL‖ SUBMITTED FOR THE PARTIALFULFILLMENT OF MASTER OF BUSINESSADMINISTRATION SUBMITTED TO:GUIDED BY:SUBMITTED BY: MILLENNIUM INSTITUTE OF TECH. &SCIENCE BARKATULLAH UNIVERSITY, BHOPAL 12. A PROJECT REPORT ON―STUDY OF ADVERTISING EFFECTIVENESS OF COLD-DRINKS IN BHOPAL‖ SUBMITTED FOR THE PARTIALFULFILLMENT OF MASTER OF BUSINESSADMINISTRATION SUBMITTED BY Under the Guidance Of:FROM MILLENNIUM INSTITUTE OF TECH. & SCIENCEBARKATULLAH UNIVERSITY, BHOPAL 23. ACKNOWLEDGEMENTIt givesme immense pleasure to present this project report on entitled―STUDY OFADVERTISING EFFECTIVENESS OF COLD-DRINKS IN BHOPAL‖ in partialfulfillment of post-graduate courseM.B.A.I take this opportunity to place on record my grateful thanksand gratitude to allthose who gave me valuable advice and inputs formy study. My study could nothave been completed if I had not beenable to get the reference materials from thecompany.I would befailing in my duty if I do not express my deep sense of gratitudetoMiss. SHAZIA QURESHI without her guidance it wouldn‘t have
  • 2. been possiblefor me to complete this 34. DECLARATIONI,………………… Student of M.B.A. IV Sem fromMILLENNIUMINSTITUTE OF TECH. & SCIENCE, BHOPAL,Bhopal, declare that theproject work entitled ―STUDY OFADVERTISING EFFECTIVENESS OF COLD-DRINKS INBHOPAL‖ was carried by me in the partial fulfillment of MBAprogramunder the University of Bhopal.This project was undertakenas a part of academic curriculum according to theUniversity rulesand norms and it has not commercial interest and motive. It ismyoriginal work. It is not submitted to any other organization forany other 45. PREFACEThe research provides anopportunity to a student to demonstrate application ofhis/herknowledge. Skill and competencies required during the technicalsession.Research also helps the student to devote his /her skill toanalyze the problem tosuggest alternative solution, to evaluate themand to provide feasiblerecommendations on the provideddata.Although I have tried my level best to prepare this report anerror free report everyeffort has been made to offer the mostauthenticate position with 56. CERTIFICATEThis is to certify thatthe AMRENDRA SINGH has completed project on Entitled―STUDY OF ADVERTISING EFFECTIVENESS OF COLD-DRINKS INBHOPAL‖hich is based on data collected byresearcher.This report is completed under my supervision. It is onlyfor academic purpose andis a bonafide work done 6
  • 3. 7. INDEX 1. Introduction ofadvertising effectiveness 2. Introduction of advertising campaign 3.Research methodology A. Research design B. Data collection C.Sampling design D. Sampling technique E. Sampling size F. Area ofstudy 4. Market profile 5. Data analysis and interpretation 6. Finding7. Conclusion 8. Limitation 9. Suggestion 78. 89. Projectsformba.blogspot.comINTRODUCTION OFADVERTISING EFFECTIVENESSThe objectives of all businessare to makes profits and a merchandising concerncan do that byincreasing its sales at remunerative prices. This is possible, iftheproduct is widely polished to be audience the final consumers,channel membersand industrial users and through convincingarguments it is persuaded to buy it.Publicity makes a thing or an ideaknown to people. It is a general term indicatingefforts at massappeal. As personal stimulation of demand for a product serviceorbusiness unit by planting commercially significant news about it ina publishedmedium or obtaining favourable presentation of it uponvideo television or stagethat is not paid for by the sponsor. On theother hand, advertising denotes a specific attempt to popularizeaspecific product or service at a certain cost. It is a method ofpublicity. It alwaysintentional openly sponsored by the sponsor andinvolves certain cost and hence ispaid for. It is a common form ofnon- personal communication about anorganisation and or itsproducts idea service etc. that is transmitted to a targetaudiencesthrough a mass medium. In common parlance the term publicityandadvertising are used synonymously.Projectsformba.blogspot.com9
  • 4. 10. Projectsformba.blogspot.comWHAT IS ADVERTISING? Theword advertising is derived from the Latin word viz, "advertero""ad"meaning towards and "verto" meeting towards and "verto"meaning. "I turn"literally specific thing". Simply stated advertising isthe art "says green." Advertising is a generalterm for and all forms ofpublicity, from the cry of the street boy sellingnewspapers to themost celebrate attention attracts device. The object always is tobringto public notice some articles or service, to create a demand tostimulatebuying and in general to bring logethel the man withsomething to sell and the manwho has means or desires to buy".Advertising has been defined by different experts. Some of thequoteddefinition are : American marketing association has definedadvertising as "any paid formof non personal presentation andpromotion of ideas, goods or services by anidentified sponsor. Themedium used are print broad cast and direct. Stanton deserves that"Advertising consists of all the activities involved inpresenting to agroup a non- personal, oral or visual openly, sponsoredmessageregarding a product, service, or idea. This message called anadvertisement isdisseminated through one or more media and is paidfor by the identified 1011. Advertising is any paid form ofnon – personal paid of presentation of ideasgoods or services by anidentified sponsor. Advertising is a "non- personal paid message ofcommercial significanceabout a product, service or company madeto a market by an identified sponsor. In developing an advertisingprogramme, one must always start byidentifying the market needsand buyer motives and must make five majordecisions commonlyreferred as 5M (mission, money message, media andmeasurement)of advertising.Basic Features of Advertising On the basis of variousdefinitions it has certain basic features such as :1. It is a mass non-personal communication.2. It is a matter of record.3. It persuades
  • 5. buyers to purchase the goods advertised.4. It is a mass paidcommunication.5. The communication media is diverse such as print(newspapers and magazines)6. It is also called printed salesmanshipbecause information is spread by means of the written and printedwork and pictures so that people may be induced to act 1112. Projectsformba.blogspot.comFUNCTIONS OF ADVERTISINGFor many firms advertising is the dominant element of thepromotional mix –particulars for those manufacturers who produceconvenience goods such asdetergent, non – prescription drugs,cosmetics, soft drinks and grocery products.Advertising is also usedextensively by maters of automobiles, home appliances,etc, tointroduce new product and new product features its uses itsattributes, ptavailability etc. Advertising can also help to convincepotential buyers that a firms productor service is superior tocompetitors product in make in quality, in price etc. it cancreatebrand image and reduce the likelihood of brand switching evenwhencompetitors lower their prices or offer some attractiveincentives. Advertising is particularly effective in certain otherspheres too such as :i) When consumer awareness of products orservice is at a minimum.ii) When sales are increasing for all terms inan industry.iii) When a product is new and incorporatestechnological advance not strong and.iv) When primary buyingmotive 1213. Projectsformba.blogspot.comIt performance the followingfunctions :i) Promotion of salesii) Introduction of new productawareness.iii) Mass production facilitationiv) Carry out researchv)Education of people.TYPES OF ADVERTISING Broadly speaking,advertising may be classified into two categories viz.,product andinstitutional advertising.a) Product Advertising The main purpose of
  • 6. such advertising is to inform and stimulate the marketabout theadvertisers products of services and to sell these. Thus typeofadvertising usually promote specific, trended products in such amanner as to makethe brands seam more desirable. It is used bybusiness government organizationand private non-businessorganizations to promote the uses features, images andbenefits oftheir services and products. Product advertising is sub-dividedintodirect action and indirect action advertising, Direct actionproduct advertisingwages the buyer to take action at once, ice heseeks a quick response to theadvertisement which may be to orderthe product by mail, or mailing a coupon, orhe may promptlypurchase in a retail store in response to prince reductionduringclearance 1314. Product advertising is sub-dividedinto direct & indirect action advertising &product advertising aims atinforming persons about what a products is what itdoes, how it isused and where it can be purchased. On the other handselectiveadvertising is made to meet the selective demand for aparticular brand or type isproduct.b) Institutional Advertising : It isdesigned to create a proper attitude towards the sellers to buildcompanyimage or goodwill rather than to sell specific product orservice. Its purpose is tocreate a frame of mind and to implantfeeling favourable to the advertiserscompany. Its assignment is tomake friends for the institution or organization. It is sub-divided intothree categories : patronage, public, relations andpublic serviceinstitutional advertising.i) In patronage institutional advertising themanufacturer tells his prospects and customer about himself hispolicies and lives personnel. The appeals to the patronage motivationof buyers. If successful, he convince buyers that his operationentitles him to the money spent by them.ii) Public relationsinstitutional advertising is used to create a favourable image of the
  • 7. firm among employees, stock-holders or the general public.iii)Public service institutional advertising wages public support.c) OtherTypes 1415. The other types are as follows : i)Consumer advertising ii) Comparative advertising iii) Reminderadvertising iv) Reinforcement advertisingADVERTISINGOBJECTIVES The long term objectives of advertising are broad andgeneral, and concernthe contribution advertising should make to theachievement of overall companyobjectives. Most companies regardadvert singly main objective as hat of provingsupport to personalselling and other forms of promotion. But advertising is ahighlyversatile communications tools and may therefore by used forachievingvarious short and long term objectives. Among theseobjectives are the following :1. To do the entire selling job (as inmail order marketing).2. To introduce a new product (by buildingbrand awareness among potential buyers).3. To force middlemen tohandle the product (pull strategy).4. To build brand preference 9bymaking it more difficult for middleman to sell substitutes).5. Toremind users to buy the product (retentivestrategy) 1516. Projectsformba.blogspot.com6. To publicize some change inmarketing strategy (e.g., a price change, a new model or animprovement in the product).7. To provide rationalization (i.e.Socially acceptable excuses).8. To combat or neutralize competitorsadvertising.9. To improve the moral of dealers and/or sales people(by showing that the company is doing its share of promotion).10.To acquaint buyers and prospects with the new uses of the product(to extend the PLC).BENEFITS The functions of advertisement, andthat purpose its ethics, may bediscussion below :1. It leads tocheaper prices. "No advertiser could live in the highly competitive
  • 8. arena of modern business if his methods of selling were more costlythan those of his rivals."2. It acquaints the public with the features ofthe goods and advantages which buyers will enjoy.3. It increasesdemand for commodities and this results in increased production.Advertising : a) Creates and stimulates demand opens and expandsthe markets; b) Creates goodwill which loads to an increase in salesvolume; 1617. c) Reduces marketing costs,particularly product selling costs. d) Satisfied consumer demands byplacing in the market what he needs.4. It reduces distributionexpenses in as much as it plays the part of thousands of salesman at ahome. Information on a mass scale relieves the necessity ofexpenditure on sales promotion staff, and quicker and widerdistribution leads to diminishing of the distribution costs.5. It ensuresthe consumers better quality of goods. A good name is the breath ofthe life to an advertiser.6. By paying the way for large scaleproduction and increased industrialization, advertising contributes itsquota to the profit of the companies the prosperity of the shareholderthe uplifts of the wage earners and the solution of he unemploymentproblem.7. It raises the standard of living of the general public byimpelling it to use to articles of modern types which may add to hismaterial well being. "Modern advertising has made the luxuries ofyesterday the necessities of today ..................... It is a positivecreative force in business. It makes two blades of grass grow in thebusiness world where one grew before.8. It establishes the goodwillof the concern for the test articles produced by it and in course oftime they sell like not cakes consumer search for satisfaction of theirneeds when they purchase goods what they want from its beauty,superiority, economy, comfort, approval, popularity, power, safety,convenience, sexual gratification and so on. 17
  • 9. 18. therefore tries to improve thisgoodwill and reputation by knowing the buyer behaviour. To sum upit may be said that advertising aims at committing the producers,educating the consumer, supplementing the salesman converting theproducer and the dealer to eliminate the competitor, but above all itis a link between the produce and the consumer.WHY & WHEN TOADVERTISE Advertising as a tool to marketing not only reachesthose who buy , but alsothose whose opinions or authority is countedfor example a manufacturer of marbletiles and building boardsadvertises not only to people who intend to build housesbut also toarchitect and engineers. While the manufacturers ofpharmaceuticalsproducts advertise to doctors as well as to thegeneral public. At time it isnecessary for a manufacturer or a concernto advertise things which it does not sellbut which when soldstimulates the sales of its own product. There are concernslikeelectric heaters, iron etc. because the use of these increases thedemand fortheir products. Advertising should be used only when itpromises to bring good result moreeconomically and efficiently ascompared to other means of selling. There aregoods for which muchtime and efforts are required in creating a demand bysendingsalesman to prospective buyers than by simply advertising them. Intheearly days of the cash register in America it was sold by speciallytrained salesmanwho called on the prospective users and had thedifficult task of convincing 1819. Projectsformba.blogspot.comthat they could no longer carry onwith the old methods, and that they urgentlyneeded a cash register.In our country certain publishers have found it less costly tosell theirbooks by sending salesman from house to house amongprospectivebuyers than to advertise them. In these two examples thecost of creating demandwould be too high if attempted byadvertising alone under such circumstancesadvertising is used to
  • 10. make the salesman acceptable to the people they call upon toincreasethe confidence of the public in the house. Naturals when there aregoodprofits competitors will be attracted and they should be kickedout as and whensufficient capital is available by advertising on alarge scale. Immediate result maynot justify the increasedexpenditure but it will no doubt secure future sales.DESIGNINGADVERTISING CAMPAIGN: An advertising is an organized seriesof advertising messages. It has beendefined as "a planned, co-ordinate series of promotional efforts built around acentral themeand designed to reach a specified goals." In other words, it isanorderly planned effort consisting of related but self – containedand independentadvertisements. The campaign may appear in onemore media . it has single themeor keynote idea and a singleobjective or goal. Thus, "a unified theme of contentprovidespsychological continuity throughout the campaign while visual andoralsimilarity provide physical continuity. In short run, all campaignwant pre-determined psychological reaction in the long run,practically all campaigns havesales goal.The series of advertisementsused in the campaign must be integrated with thesales promotionalefforts and with the activities of the 1920. Projectsformba.blogspot.comCampaign vary in length some mayrun only for a few days, other for weeks, yetother for a season or theentire year. Usually a range of 3 to 6 months includesmanycampaigns. Many factors influences campaign length such ascompetitorsadvertising media, policies, seasonal falls curves of theproduct involved, the sizeof the advertising funds, campaignobjectives and the nature of the advertisersmarketingprogramme.OBJECTIVES OF CAMPAIGN The advertisingcampaign, especially those connected with the consumersaims atachieving these objectives : i) To announce a new product or
  • 11. improve product. ii) To hold consumers patronage against intensifiedcampaign use. iii) To inform consumers about a new product use. iv)To teach consumers how to use product. v) To promote a contest or apremium offer. vi) To establish a new trade regional, and vii) Tohelp solve a coca regional 2021. The institutional advertisingcampaign on the other hand, have these objectives. i) To create acorporate personality or image. ii) To build a company prestige. iii)To keep the company name before the public. iv) To emphasizecompany services and facilities. v) To enable company salesman tosee top executive consistently when making sales calls, and vi) Toincrease friendliness and goodwill towards the company. Developingthe campaign programmes. The advertising campaigns arepreparedby the advertising agencies, which work an behalf of their clientswhomanufacture product or service enterprises, which have servicesto sell. The wordcampaign is used because advertising agenciesapproach their task with a sumBlanca of military fanfare in whichone frequently hears words like target audiencelogistics, zero in andtactics and strategy etc. The account executive co-ordinates the workin a campaign. The creation ofan advertising campaign starts with anexploration of consumers habits andpsychology in relation to theproduct. This requires the services of statisticaltrained in surveytechniques and of others trained in social psychology.Statisticiansselect samples for survey which are done by trained interviewerswhovisits individuals, included in the sample and ask question tofind out about theirtaste and 2122. This enquiry often leads to achange in a familiar product. For instancebathing soap may come inseveral new colours or cigarette in a new packet ortalcum powder inanother size. Such interviews are often quite essential to find out the
  • 12. appeal of advertisingmessage for a product that would be mosteffective with consumers. David Ogilvy describes a consumerssurvey to find out the most meaningfulbenefit in which women areinterested when they buy a face cream. The largestpreference asgiven to "Cleans deep into pores" followed in order of importancebyprevent dryness, "is a complete beauty treatment, recommendedby skin doctors"makes skin look younger contains estrogenichormones, pasteurized for purity,prevent skin form aging, smoothour wrinkles ogilvy concludes, form this votingcome one of HelenaRubinsteins most successful face creams. We christened itdeepcleanser, thus, building the winning form into name of the product.After getting the data the account executive puts together theessentialelements of his clients brief, interprets the research findingsand draws up what hecalls the "advertising strategy".STAGE INADVERTISING CAMPAIGN Several steps are required todeveloped an advertising campaign the numberof stages and exactorder in which they are carried out may vary according toanorganisations resources, the nature of its product and the types ofaudiences to bereached. The major stages/step are :1. Identifying andanalyzing the advertising.2. Defining 2223. Projectsformba.blogspot.com3. Creating the advertisingplatform.4. Determining the advertising appropriation.5. Selectionmedia plan.6. Creating the advertising message.7. Evaluating theeffectiveness of advertising.8. Organizing of advertising campaign.1.Identifying & Analyzing the Advertising target : Under this step it isto decided as to whom is the firm trying to reach withthe message.The advertising target is the group of people towardswhichadvertisements are aimed at four this purpose completeinformation about themarket target i.e. the location and geographicallocation of the people, thedistribution of age, income, sex,
  • 13. educational level, and consumers attitudesregarding purchase anduse both of the advertising product and competingproducts is neededwith better knowledge of market target, effectiveadvertisingcampaign can be developed on the other hand, if theadvertising target is notproperly identified and analyzed thecampaign is does likely to be effective.2. Determining theadvertising objectives : The objectives of advertisement must bespecifically and clearly defined inmeasurable terms such as "tocommunicate specific qualities about a particularsproduct to gain acertain degree of penetration in a definite audience of 2324. Projectsformba.blogspot.comsize during a given period of time",increase sales by a certain percentage orincrease the firms marketshares." The goals of advertising may be to : i) Create a favourablecompany image by acquainting the public with the services offeredavailable to the employees and its achievements. ii) Createconsumers or distributor awareness by encouraging requestsproviding information about the types of products sold; providinginformation about the benefits to be gained from use of thecompanys products or services; and indicating how product (orservices) can be used; iii) Encourage immediate sales byencouraging potential purchasers through special sales contests,getting recommendation of professional people about companysproducts etc. iv) It secures action by the reader through associatingideas, repetition of the same name in different contexts, immediateaction appeal.3. Creating the Advertising platform : An advertisingplatform consists of the basic issues or selling points thatanadvertiser wishes to include in the advertising campaign. A singleadvertisement inan advertising campaign may contain one or moreissues in the platform. Amotorcycle producers advertising platformshould contain issues which are ofimportance to consumers filling
  • 14. and such issues also be those which thecompetitive product do 2425. Projectsformba.blogspot.com4. Determining the AdvertisingAppropriation: The advertising appropriation is the total amount ofmoney which marketerallocates. For advertising for a specific timeperiod. Determining the campaignbudget involves estimating nowmuch it will cost to achieve the campaignsobjectives. If thecampaign objectives are profit relating and stated quantitatively,thenthe amount of the campaign budget is determined by estimating theproposedcampaigns effectiveness in attaining them. If campaignsobject is to build aparticular type of company image, then there islittle basis for predicting either thecampaigns effectiveness ordetermining the budget required.5. Selecting the Media : Mediaselection is an important since it costs time space and moneyvariousfactors influence this selection, the most fundamental beingthe nature of the targetmarket segment, the type of the product andthe cost involved. The distinctivecharacteristics of various media arealso important. Therefore management shouldfocus its attention onmedia compatibility with advertising objectives. Media Form1. PressAdvertising or Printi) Newspapers City, Small town, Sundays, Daily,weekly, Fortnightly, quarterlies, financial and annuals, English,vernacular or regional languages.ii) Magazines General or special,illustrated or otherwise, English, Hindi,Projectsformba.blogspot.com2526. Regional language.iii) Trade &Technical Journals, Industrial Circulated all over the country yearbooks, commercial, directories, and among the industrialist andtelephone, Directories, references business magnates. books &annuals.2. Direct Mail Circulars, catalogues, leaflets, brochures,booklets, folders, colanders, blotters, diaries & other printed
  • 15. material.3. Outdoor or Traffic Poster and bills on walls, railwaysstations platforms outside public buildings trains, buses.4. Broadcastor radio and T.V. Spot, Sectional or national trade cost5. PublicityMovie Slides and films non theatrical and documentary films metalplates and signs attaches to trees.6. House to house Sampling ,couponing, free gifts, novelties, demonst- rations.7. Dealer aidsCounter and widows display demonstration given by retailer or theadvertises goods.8. Internet Today, Internet is a big spot foradvertising.So these are the media of the advertising campaign of theselecting of the 2627. Projectsformba.blogspot.com6. Creating the AdvertisingMessages : This is an important stage of advertising campaign. Thecontents of themessage has to be very carefully drafted in theadvertisement. Characteristics ofperson in the advertising targetinfluence the message content and form. Anadvertisers must usewords, symbols and illustration that are meaningful, familiarandattractive to those persons. The type of media also influence thecontent andform of the message.7. Evaluating the Effectiveness ofAdvertising : The effectiveness of advertising is measured for avariety of reasons : a) To determine whether a campaignaccomplished its advertising objects. b) To evaluate the relativeeffectiveness of several advertisements to ascertain which copy,illustrations or layout is best. c) To determine the strengths andweaknesses of various media and media plans. In other words,measuring advertising effectiveness is needed to determinewhetherproposed advertisement should be used and if they will be now theymightbe improved; and whether going campaign should be stopped,continued 2728. Projectsformba.blogspot.comchanged. In accomplishing thesepurposes, pretests and post test are conducted.The former tests
  • 16. before exposing target consumers to advertisements and theletterafter consumers have been exposed to advertisements and theletter afterconsumers have been exposed to advertisements. For aneffective advertising programme, the advertising manager requiresabasic understanding of the medium that is going to carry it. Foreffectively using advertising the management must test advertisingtoknow which of the advertisement to know which of theadvertisement have provedprofitable and why as compared 2829. 2930. Projectsformba.blogspot.comMARKET PROFILE(CocaCola)Brands of Coca- Colai) Coca Colaii) Thums-upiii) Limcaiv)Fantav) Maazavi) Maaza Tetravii) SpriteFlavours of the brand :i) 3031. Projectsformba.blogspot.comii) Lemoniii) Sodaiv) Orangev)Mangovi) Clear LemonSize of the Coca Cola cold drinks availablein marketi) 200 ml Bottles (RGB Glasses)ii) 300 ml Bottles (RGBGlasses)iii) 500 ml Bottles (RGB Glasses)iv) 1 Litre (PVCBottles)v) 1.5 Litre (PVC Bottles)vi) 2 Litre (PVC Bottles)Sales ofCoca Cola Cold drinksCoca Cola Weekly Monthly YearlyColddrinks (in carets) (in carets) (in carets)Coca Cola 520 184022400Fanta 250 1030 12900Thums-up 350 3132. Projectsformba.blogspot.comLimca 380 1210 16300Maaza Tetra80 380 6200Sprite 70 280 5000Maaza 120 690 10000(Primarydata)There is more consumption of Coca Cola and has 70% marketshare in theYamunanagar city and Coca Cola is having maximumconsumption and after thatThumps-up and after it Limca cold drink
  • 17. in the market and all the products hasgood sale but less thanthese.Brands of Pepsii) Pepsi Colaii) Mirinda Lemoniii) MirindaOrangeiv) Pepsi Sodav) Pepsi AppleFlavours of the brand :i) Colaii) 3233. Projectsformba.blogspot.comiii) Orangeiv) Sodav) AppleSize ofthe Pepsi cold drinks available in marketvi) 200 ml Bottles (RGBGlasses)vii) 300 ml Bottles (RGB Glasses)viii) 500 ml Bottles (500pt. Bottles)ix) 1 Litre (PVC Bottles)x) 1.5 Litre (PVC Bottles)xi) 2Litre (PVC Bottles)Sales of Pepsi Cold drinksPepsi Weekly MonthlyYearlyCold drinks (in carets) (in carets) (in carets)Pepsi 430 175021600Mirinda Lemon 390 1180 15400Mirinda Orange 245 100013600Pepsi Soda 126 470 6000Pepsi Apple 120 3334. Data) The consumption ofPepsi cola, after this sale of Mirinda Lemon is there andafter itMirinda Orange is there and the market share is less of Pepsiincomparison of Coca 3435. OBJECTIVES OF 3536. OBJECTIVES OF THESTUDYFollowing are the objectives of the study:1. To know themost effective media of advertisement2. To find out the reasons forliking the advertisement of cold drinks.3. To find out the mostpopular slogan of advertisement regarding 3637. Research MethodologyResearchMethodologyResearch is voyage from known 37
  • 18. 38. Projectsformba.blogspot.comResearch is a procedure of logicaland systematic application of the fundamentalsof science to thegeneral and overall questions of a study and scientifictechniquewhich provide precise tools, specific procedure andtechnical rather thanphilosophical means for getting and ordering thedata prior to their logical analysisand manipulation. Different type ofresearch designs is available depending uponthe nature of researchproject, availability of able manpower andcircumstances.Methodology 1. Research Design: The researchdesign is the blueprint for the fulfillment of objectives and answeringquestions. It is a master plan specifying the method and proceduresfor collecting and analyzing needed information. o DescriptiveResearch is used in this study as the main aim is to describecharacteristics of the phenomenon or a situation. 2. Data CollectionMethods: The source of data includes primary and secondary datasources. Primary Sources: Primary data has been collected directlyfrom sample respondents through questionnaire and with the help ofinterview. Secondary Sources: Secondary data has been collectedfrom standard textbooks, Newspapers, Magazines & Internet. 3.Research Instrument: Research instrument used for the primary datacollection is 3839. 4. Sample Design: Sample designis definite plan determine before any data is actually obtaining for asample from a given population. The researcher must decide the wayof selecting a sample. Samples can be either probability samples ornon-probability samples. Sampling Technique: Convenience SampleSize: 50 Respondents. Area of Study: MP nagar, new market,Piplani, Nehru 3940. DATA ANALYSIS 40
  • 19. 41. DATA ANALYSIS ANDINTERPRETATION TABLE 4.1RESPONDENTSCLASSIFICATION ACCORDING TO AGEAge (in years) No. ofrespondents Percentage11-20 22 4421-40 25 5041-60 3 6Total 50100 100 90 80 70 60 20-Nov 50 21-40 40 41-60 30 Total 20 10 0No. of respondents PercentageTable 4.1 shows that 44% of therespondents are in the age group of 11-20, 50%are in the age groupof 21-40 and 6% are in the age group of 4142. Projectsformba.blogspot.comRESPONDENTSCLASSIFICATION ACCORDING TO SEXSex No. of respondentsPercentageMale 30 60Female 20 40Total 50 100 100 80 60 MaleFemale 40 Total 20 0 No. of respondents Percentage Table 4.2shows that 60% of the respondents are males and 40% of themarefemalesTABLE 4243. Projectsformba.blogspot.comRESPONDENTSCLASSIFICATION ACCORDING TOEDUCATIONALQUALIFICATIONQualification No. ofrespondents PercentageIlliterate 0 0Below Matric 0 0Matric 510Graduate 29 58Post graduate 16 32Total 50 100 60 50 40 IlliterateBelow Matric 30 Matric 20 Graduate Post graduate 10 0 No. ofrespondents Percentage Table 4.3 reveals that out of 50 respondents5 are matriculate and 29 are Graduateand rest of them 16 are postgraduate.TABLE 4.4DRINKING OF 4344. Projectsformba.blogspot.comDo you take cold drinks No. ofrespondents PercentageYes 50 100No 0 0Total 50 100 100 90 80 7060 Yes 50 No 40 Total 30 20 10 0 No. of respondents PercentageTABLE 4.5FREQUENCY OF TAKING COLD DRINKSHOW
  • 20. FREQUENTLY No. of respondents 4445. Projectsformba.blogspot.comOnce a day 15 30Twice a day 24More than twice 1 2Not regular drunker 32 64Total 50 100 100 9080 70 60 Once a day 50 Twice a day 40 More than twice 30 Notregular drunker 20 Total 10 0 No. of Percentage respondents Table4.5 reveals that 30% of the respondents drink it once a day, 4%twicea day, 2% more than twice and 32% drink it noregularly.TABLE 4.6NAME OF THE COLD DRINKSAVAILABLE IN MARKETName of cold drinks No. of respondentsPercentageCoca cola - -Pepsi - -Fanta - 4546. Projectsformba.blogspot.comLimca - -Mirinda - -Thums-up - -Canada dry - -Maaza - -Dew - -All of above 50 100Total 50 100 10080 60 East 40 West North 20 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Table4.6 reveals that all of the respondents are of the view that alltheabove mentioned cold drinks are available in the market.TABLE4.7PREFERENCE OF COLD DRINKWhich cold drink you No. ofrespondents Percentagelike mostCoca cola 12 24Pepsi 12 24Fanta 12Limca 7 14Mirinda 1 4647. Projectsformba.blogspot.comThums-up 10 20Canada dry 48Maaza 3 6Dew - -Total 50 100 100 80 60 East 40 West North 20 01st Qtr 2nd Qtr 3rd Qtr 4th Qtr Table 4.7 indicate that out of 50respondents 12 like Coca cola, 12 like Pepsi, 7like Limca, 1 likeFanta, 1 like Mirinda, 10 like Thums-up, 4 like Canada dry and3 likeMaaza.TABLE 4.8FLAVOURS OF COLD DRINKSFlavours No. ofrespondents PercentageCola 30 60Lemon 7 14Orange 7 14Mango 24Others 4 8Total 50 47
  • 21. 48. 100 90 80 70 Cola 60 Lemon 50Orange 40 Mango 30 Others 20 Total 10 0 No. of respondentsPercentage Table 4.8 shows that out of 60% of the respondents likethe cola flavour of colddrink, 14% like the Lemon flavour and samepercentage of respondents like theorange flavour of 4849. Projectsformba.blogspot.comTABLE 4.9 ADVERTISEMENTOF COLD DRINKDo you think No. of respondentsPercentageadvertisement of colddrink is requiredYes 48 96No 24Total 50 100 100 80 60 Yes No 40 Total 20 0 No. of respondentsPercentage Table 4.9 indicate that 96% of the respondents are of theview that theyhave been the advertisement of the cold drink they likemost while 4% shows thatthey don‘t have seen the advertisementthey like most .TABLE 4950. MEDIA OFADVERTISEMENTTHROUGH WHICH No. of respondentsPercentageMEDIA YOU HAVESEEN IT?TV 46 92Newspaper 24Magazine 1 2Other 1 2Total 50 100 100 80 TV 60 NewspaperMagazine 40 Other 20 Total 0 No. of respondents Percentage Table4.10 reveals that 92% of the respondents are of opinion that theyhaveseen the advertisement on TV while 4% are of the opinion thatthey have seen theadvertisement through newspaper.TABLE4.11NO. OF 5051. Projectsformba.blogspot.comHow many No. of respondentsPercentageadvertisements youseen are of the mostlikely cold drinkby you1 11 222 14 283 11 224 14 28Total 50 100 100 80 1 60 2 3 404 20 Total 0 No. of respondents Percentage Table 4.11 shows thatout of the 50 respondents 11 are of view that there is 1type ofadvertisement and other says that there are more than onetype.TABLE 4.12 SLOGAN OF COLD DRINKSlogan of cold drink
  • 22. No. of respondents Percentagewhich 5152. Projectsformba.blogspot.comTaste the thunder 12 24Yara Datashan 14 28Yeh dil mange more 16 32Jo chahe ho jaye, coca 816cola enjoyTotal 50 100 100 90 Taste the thunder 80 70 Yara Datashan 60 50 Yeh dil mange more 40 30 Jo chahe ho jaye, 20 cocacola enjoy 10 Total 0 No. of Percentage respondents Table 4.12shows that out of 50 respondents 12 like the slogan taste thethunder,14 like Yara da tashan, 16 like yeh dil mange more and 8like the slogan Jochahe ho jaye coca cola enjoy.TABLE 4.13REASON FOR LIKING THE ADVERTISEMENTWhy you likeNo. of respondents PercentageadvertisementIts theme and making is30 5253. Projectsformba.blogspot.comappealableIt has film stars 714Because of good music 7 14Other reasons 6 12Total 50 100 10090 Its theme and making 80 is appealable 70 It has film stars 60 50Because of good 40 music 30 20 Other reasons 10 0 Total No. ofPercentage respondentsTable 4.13 shows that majority of therespondents like the advertisement due to itstheme while majority ofthe respondents like the advertisement due to its film starsand goodmusic.TABLE 4.14EFFECT OF ADVERTISEMENT ONCONSUMPTION OF COLD DRINKDo you think ads. No. ofrespondents PercentageEffect the consumptionof cold drinkYes 2346No 17 5354. Projectsformba.blogspot.comCannt say 10 20Total 50 100 400350 300 250 Yes 200 No 150 Cannt say Total 100 50 0 No. ofrespondents Percentage Table 4.14 shows that 46% of therespondents are of the view that advertisementforced them toconsume product more 34% of them has view thatadvertisementdon‘t force them to consume the product while 20% of
  • 23. them cannot say anythingabout it.TABLE 4.15 BEST MEDIA OFADVERTISEMENTWhich Media Presently No. of respondentsPercentageIs More EffectivelyTV 50 100Newspaper - -Magazine - -Others - -Total 50 5455. Table 4.15 reveals that 100% ofthe respondents are of the view thatpresently the TV is mosteffective media of advertisement.TABLE 4.16NECESSITY OFADVERTISEMENTDO YOU THINK THE No. of respondentsPercentageADVERTISEMENT ISNECESSARY FORCOLDDRINKS?Necessary 14 28Very necessary 34 68Can‘t say 2 4Total50 5556. 100 90 80 70 60 Necessary 50Very necessary 40 Can‘t say 30 Total 20 10 0 No. of respondentsPercentage Table 4.16 shows that highest number of respondents areof the view thatadvertisement is very necessary for cold drinks whilefew respondents are of theview that advertisement isnecessary.TABLE 4.17 EFFECTIVENESS OF EXPENDITUREINCURRED ON ADVERTISEMENTDoes expenditure No. ofrespondents Percentageshould be incurred onadvertisementYes 4386No 2 4Can‘t say 5 10Total 50 5657. 100 90 80 70 60 Yes 50 No 40Can‘t say 30 Total 20 10 0 No. of respondents Percentage Table 4.17shows that 86% of the respondents are of the view thattheexpenditure incurred on advertisement is effective in adding theprofit while 4%denied the same and 10% did not reply.TABLE4.18REASONS FOR DIFFERENCE OF ADVERTISEMENTEFFECTIVENESSWHICH REASON No. of respondentsPercentageYOU FIND FOR THEDIFFERENCEOFADVERTISEMENTEFFECTIVENESSEducation 20 40Liking
  • 24. 10 20Standard of Living 10 20Level of Development 5758. Projectsformba.blogspot.comTotal 50 100 100 80 Education 60Liking Standard of Living 40 Level of Development 20 Total 0 No.of respondents Percentage Table 4.18 shows that 40% of therespondents say education is one of themain reason of Advertisementeffectiveness while equal % of the respondents arein the favour oflikings, standars of living and level 5859. Projectsformba.blogspot.comTABLE 4.19ADDEFFECTIVENESS AND IMPROVEMENT INADVERTISEMENTWILL THE STUDY No. of respondentsPercentageOF EFFECTIVENESSWOULDCONTRIBUTETOIMPROVEMENT OFPRESENTADVERTISEMENTYes 4590No 1 2Cannot say 4 10Total 50 100 100 80 60 Yes No 40 Cannotsay Total 20 0 No. of respondents PercentageTable 4.19 shows thatthe majority of the respondents are of the view that the studyofeffectiveness contributes the improvement in presentadvertisement.TABLE 4.20NECESSITY OF 5960. Projectsformba.blogspot.comIS ADVERTISEMENT No. ofrespondents PercentageEFFECTIVENESS ISNECESSARYFORCOMPANY?Yes 48 96No 1 2Can‘t say 1 2Total 50 100 100 9080 70 60 Yes 50 No 40 30 Can‘t say 20 Total 10 0 No. of PercentagerespondentsTable 4.20 reveals that majority of the respondents saythat the advertisementeffectiveness is necessary while same did notreplied.TABLE 4.21USERS OF ADVERTISEMENTEFFECTIVENESSTHE USE STUDY OF No. of respondentsPercentageEFFECTIVENESS 60
  • 25. 61. Projectsformba.blogspot.comFOR WHOM?For company 3468For employees 1 2For customers 15 30None of these - -Total 50100Table 4.21 indicates that 68% of the respondents are of the viewthat the study ofeffectiveness is meant for company while 30% saythat it is meant for 6162. OBSERVATIONS & FINDINGSFINDINGSAfter going through all the project and the collected data,I found 6263. Projectsformba.blogspot.comP 84% of the respondents said thatTV is the most effective media of advertisement.a 60% of therespondents said that they like the advertisement of cold drinksbecause of its theme whereas, 14% said that they like celebrities inadvertisement.a Some 32% of the respondents said that‘ yeh dilmaange more‘ is the most popular slogan whereas 28% of therespondents said that ‗ yara da tashan‘ is the popular slogan.pMajority of respondents are of the view that advertisement is verynecessary for cold drink.f Majority of respondents sees theadvertisement of the cold drink they like most.m Majority of therespondents like cola flavor of cold drinkM Equal number ofrespondents like the brand of Coca Cola 6364. 6465. Projectsformba.blogspot.comIn last conclude that majority of therespondents said that TV is the most effectivemedia foradvertisement of cold drinks and the celebrities and the slogans intheadvertisement effect the consumers.SUGGESTIONSWe reachedsome suggestions :W Advertisement should not be too expensive,because the advertisement leads and increase the prize of the
  • 26. product.a Media should be selected according to the choice ofcustomers.M In rural areas media should be according to the choiceof the people.I To give more attention in making the advertisementto make it effective for the sale of cold drink.s Price should bedecreased so as to attract the consumers to use product more.P Togive attention on the weak media of advertisement so that theconsumers comes to know about the product.c It should be attractiveone so that people are attracted toward 6566. Projectsformba.blogspot.comP The project relied mainly on theprimary data.T Consumer give very unclear picture.C We have alimited time.W The study is based on limited sample.T It begin myfirst attempt to undertake such a study, thus the inexperience is also aobstacle to accomplish the project in a proper way.a It was alsodifficult to get proper information from the people because they wereindulging in some other 6667. 67Aaker David A. etc. ― advertising Management‖ 4th ed, New Delhi,prentice Hall of India 1985.Journals: Economic PoliticalWeeklyMagazines and Newspapers:Projectsformba.blogspot.com68 68. Ø Kothari, C.R (2003):―Research Methodology‖ (II Edition), New Age International Pvt.Ltd. Ø Khan and Martin (2003): ―Sales and Distribution‖ (I Edition),Anurag Jain publishing company, New Delhi Ø Rajan Saxena(2003): ―Marketing Management‖ (II Edition), Tata McGraw - Hillpublishing company Ltd., New Delhi
  • 27. 69. 6970. OF COLD DRINKS BACKGROUND INFORMATIONI) Name :__________________________________II) Age :__________________________________III) Qualification :IV) 1.Literate 2. Illiterate if literate ? 1. Below Matric 2. Matric 3.Graduate 4. Post GraduateV) Profession :__________________________________VI) Address :____________________________________________________________________VII) Size of family :__________________________________1). Do you take cold drink? a. Yes b. No2). How frequently you take cold drink ? a. Once a dayb. Twice a day c. More than twice d. Not regular3). Which are thedifferent cold drinks available in the market ? a. Coca Cola b. Pepsic. Limca d. Fanta e. Thums-up f. Mirinda g. Limca h. Maaza i.Canada Dry j. All of these4). Which cold drink you like most ? a.Coca Cola b. Pepsi c. Limca d. Fanta e. Thums-up f. Mirinda g.Limca h. Maaza i. Canada Dry j. All of these5). Which flavour ofcold drink you like most ? 7071. a. Cola b. Lemon c. Mango d.Orange e. Other6). Have you seen the advertisement of cold drinkyou like most ? a. Yes b. No7). Through which media you have seenit? a. T.V. b. News Paper c. Magazine d. Others8). How many typesof advertisement of you preferred brand of cold drink arethere? a. 1b. 2 c. 3 d. 49). Which slogan of cold drink you like most ? a. Tastethe Thunder b. Yara Da Tashan c. Yeh Dil Mange More d. Jo chaheho Jai COCA-COLA enjoy10). Why do you like the advertisement ?a. Because it has film stars ? b. Because of Good music c. It‘s theme
  • 28. and making is appealable. d. Any other reason.11). Do you think thatadvertisement has forced you to consume product more ? a. Yes b.No12). Which media is presenting the advertisement is necessary forsale of colddrink ? a. T.V. b. News Paper c. Magazine d. Others13).Do you think the advertisement is necessary for sale of cold drink ?a. Necessary b. Very Necessary c. Not Necessary d. Can‘ 7172. Projectsformba.blogspot.com14). The expenditure incurred onadvertisement of cold drink is such effectivethat it adds to profit ? a.Yes b. No c. Can‘t Say15) Which reason you find for the differenceof advertisement effectiveness ? a. Education b. Likings c. Standardof Living d. Level of Development16) Is the study of effectivenesswould contribute to improvement in presentadvertisement ? a. Yes b.No c. Can‘t Say17) Is advertisement effectiveness is necessary forcompany ? a. Yes b. No c. Can‘t Say18) What do you think the useof study of effectiveness is for who? a. For Company b. ForEmployees c. For Customers d. None 72
  • 29. 2. INTRODUCTION OF THEREPORTSTATEMENT OF PROJECT:The statement of our topicis―EFFECTS OF ADVERTISEMENT ON THE BUYINGBEHAVIOUR OFFEMALES‖So at the very beginning, we‘ll definethat what is the advertisement, its history, itsMedias and what are thereasons to advertise.WHAT IS ADVERTISEMENT?―PAID,MEDIATED PRESENTATION OF INFORMATION ABOUTSERVICES,PRODUCTS, OR IDEAS WITH THE SPECIFICGOAL OF INFLUENCINGCONSUMERS OR THE PUBLIC‖.THEADVERTISER PURCHASES TIME (RADIO, TELEVISION,CABLE) ORSPACE (PRINT PUBLICATIONS—NEWSPAPERS,MAGAZINES, SHOPPER)—ORON BILLBOARDS OR OTHERDISPLAY OPPERTUNITIES SUCH AS BUSCARDS.―ADVERTISING IS EVERYWHERE…‖ • In our homes • In thesupermarkets • On the streets • On airplanes • On trains • Even inschools, colleges and universities. ―WHY ADVERTISEMENT ISTHE GOAL OF INFLUENSING…‖ ADVERTISEMENT IS APERSUASIVE MESSAGE • HERE‘S why my product (or service oridea) is better than your alternatives… • If you buy my product (orservice or idea) your life will be improved in thisway… 23. 34. HISTORY OF ADVERTISEMENTHERE IS A BRIEF HISTORY OF ADVERTISEMENT IN THEWORLD… Johannes Gutenberg 1441 Inventiuon of Movable TypeVolney Palmer 1841 First Advertising Agency Robert Bonner 1850First Great Advertising Campaign "Doctor" Drake 1860- PatentMedicine Lydia Pinkham 1890 Patent Medicine George Rowell1869 American Newspaper Directory Francis W. Ayer 1875 OpenContract John Powers 1880 First Copywriting "Superstar" AdolphusGreen 1890 Branding J. Walter Thompson 1885 The AccountExecutive Cyrus Curtis Growth of Magazine AdvertisingEarnestElmo Caulkins 1895 Art Direction John E. Kennedy 1904 Reason-Why Copy Albert Lasker 1904 The Modern Advertising AgencyClaude C. Hopkins 1906 "Scientific" Advertising TheodoreMcManus 1915 Impressionism Social Sciences inAdvertisingStanley & Helen Resor 1920 Women in AdvertisingAdvertising Research Raymond Rubicam 1923 CreativeExperimentation 1926 Commercial Radio Leo Burnett 1930-Inherent Drama 1947 Commercial Television Rosser Reeves 1950Unique Selling Proposition David Ogilvy 1950 Brand Image MarionHarper 1950-60 Agency Mergers & Integrated Services WilliamBernbach 1960 Creative Revolution Jay Chiat 1990- Advertising inthe 90sCreativity & Brand Building Hal Riney FIRST
  • 30. ADVERTISING AGENCY 45. ―Manhattan Pakistan‖Head : Col.Aizaz ul WaheedAffiliation : NoneBrief Intro : We were one of thefirst Pakistani-owned ad agencies to enter Pakistan‘s advertisingarena and have remained one of the front- runners ever since. TodayMPL ranks as one of the top agencies in terms of business volumeand client portfolio. Serving the promotional needs of numerousclients both Above The Line (ATL) and through Below The Line(BTL) for the last four decades, Manhattan Pakistan has now enteredin its fifth decade with the fervor to build brands through consumerinsights by converting buyers into brand believers.History : We firstsaw the light of day in 1954, establishing our roots in Karachi,Pakistan. We operate with a strong family feeling, with 100professionals steering the agency on a straight course towardssuccess! We maintain the delicate balance betweenconceptualization, to product positioning and an effectiveperformance in the marketplace. We have helped influence consumerpreferences and changing lifestyles. We are ManhattanPakistan!Founded : 1954Top : InstaphoneClients Askari Bank PTVBurraq Telecom PTCL NOTE: DETAILS OF TOP ADVERTISINGAGENCIES IN PAKISTAN ARE ATTACHED AT THE END OFREPORT IN ANNEXURES. 56. MAJOR ADVERTISINGMEDIASIN 1970‘S FOLLOWING MASS MEDIAS BOCAMEMATURE IN THEWHOLEWORLD… 67. • NEWS PAPERS (DOMINATE) •TELEVISION • DIRECT MAIL • RADIO • MAGAZINES •OTHERS (BILL BOARDS, TRADE PRESS ETC…) IN 1980‘s,CABLE ADVERTISING GREW AND IN 1990‘s, INTERNETADVERTISING GREW. SPECIFIC MEDIA WITHIN EACHGENERAL MEDIA TYPETelevision Yellow PagesNewspaperMagazine Major Kinds of MediaDirect Mail Outdoor Radio InternetMAJOR ADVERTISING MEDIAS IN PAKISTAN IN THEBOUNDARIES OF PAKISTAN, FOLLOWING MEDIAS AREWORKING: 78. o TV o Radio o Media BuyingHouses o Media Representatives o Media Monitoring Agencies oMedia Marketing Firms o New Media Companies o Internet ServiceProviders o Major English Dailies o Major Urdu Dailies o EnglishEveningers o Urdu Eveningers o English Magazines o 8
  • 31. 9. TYPES OFADVERTISEMENT:Product Advertising: In which manufacturerswants to focus on 910. For example: Head & shouldersshampoo.Institutional Advertising When focus on brand name of thecompany For example: McDonald, KFC.Informative AdvertisingThe purpose of the companies to give some sort of information Forexample Telenor informed earlier to its launching ofnetworkPersuasive Advertising When any company launches a newproduct For example When warid telecom introduces any newpackageReminder Advertising Telling the consumer that there is alsoadditional attributes in our product For example When Pepsiintroduces additional taste in bottles as Pepsi twistComparativeAdvertising When we compare any two products For exampleSupreme vs. 1011. Projectsformba.blogspot.comCelebrity Testimonial Whencompanies cast a celebrity in its advertisement For example Alizafar, reema, meera and amna huq in LUX ADD now daysRetailAdvertising When shop keepers advertise their shops or malls Forexample PaceInteractive Advertising Contact through the telephonicconversation to sell the product. For example It happens basically inbusiness to business advertisement like when pharmaceuticalcompanies advertise their new medicines to the doctors.Advertisinga Service Instead Of A Product Advertising services is one of themost difficult type of advertising. You dont have a tangible productyou can put in someones hand. They cant touch it, feel it, see it orsmell it. For example Advertisement for new admission opens 1112. REASONS TOADVERTISEAdvertising is such an important thing for a business todo, advertising is not justimportant for businesses but for things thatoffer services. Advertising tells people aboutyour product orproducts so they can be sold. Big companies such as McDonaldsandColgate Palmolive dont need to advertise because their productsare already knownthroughout the world, but when these two firstcame out they would have had to havespent millions of pounds onadvertising to get them to the stage where they are now.Thefollowing may be the maximum reasons toadvertise… 1213. • Produce leads • Educateprospects about the benefits you offer • Expand into new markets •Influence the people who influence others (the trendsetters) • Makeyour name known to people who have never heard of you • Pre-sell
  • 32. your offering (prior to the sales persons call) • Expand upon a publicrelations story • Tell the story of your company • Add authority toyour message (by putting it into print, people equate advertising withsuccess) • Build your corporate identity • Build confidence in yourproduct/services • Dispel an ugly rumor • Keep your name in theforefront of your customers minds • Head off competitors • Go aftercompetitors business • Prove your quality with success stories •Make your stockholders happy • Assert your leadership • Maintain aconstant public presence • Help your direct mail pay off • Announcethe existence of your product • Gain credibility • Become a brandname • Establish a niche • Highlight testimonials from satisfiedcustomers • Test something • Create a desire to buy • Make sales •Obtain names for your prospect or customer mailing list • Informmany people at the same time • Motivate people to call or e-mail orsend coupon • Engage in research by studying the profiles ofrespondents • Prove your superiority • ... to earn 1314. PROS AND CONS OFADVERTISEMENTSAdvertising - Good or Bad?"Advertising -Good or Bad" In todays society, one must consider – Is there anyadvantage ofadvertising? In many cases it is 1415. An annoying hindrance in ourdaily lives. It gets on our nerves, distorts thetruth, and adds to thecost of the product. Advertising is designed for onepurpose - to sell.To achieve this goal, advertises are willing to stretch anddistort thetruth, just to convincing people to buy their product. Forexample, anadvertiser may convince buyers to purchase their product bystatingthat has been tested and found superior. In reality, the product isnotlikely to be better than any other - the tests themselvesdoubtlesslyconducted by the promoting company - conducted toensure at leastsomething is superior about the product, even if it isonly the color. Theseadvertisements are worded carefully so thatthey are telling the "literal truth"- the truth is exactly what the wordssay, although people misinterprets themessage by usingconversational logic as something different - somethingbetter. Byusing ingenious tactics like these, the populace is deceivedintobuying a product that may not do what is required, or a productwhich abuyer may have never really needed. This is why advertisingis a bad thing,for our society.FOLLOWING ARE THE BASICADVANTAGES ANDDISADVANTAGES OF ADVERTISMENT.Advantages 15 Self-service operations ability to possible provide detailedinformationPURPOSE OF
  • 33. 16 Some media limitthe Editorial content throwaway rate surrounds ad Some mediahave high Message study possible Some media require longcontent; lead message can be standardized time Control overmessage Geographic flexibility available limited Manyalternatives Low cost per contact investments Some mediarequire large Gains pass along lack readership flexibility (for print) Standardized messages Attracts a large audience 16.Projectsformba.blogspot.com17. Projectsformba.blogspot.comEFFECT OF ADVERTISEMENTON THE BUYING BEHAVIOR OF FEMALES:As our basicresearch process is concerned with the effects of advertisementsonthe buying behavior of females so on this regards we‘ll conduct afullresearch process to evaluate that how much the advertisementaffects thebuying behavior of females.As it is a very known sayingthat ―Customer is the king of the market‖Now here we believe thatfemales are the queens of the market.As large areas of markets areoccupied by the females so their buyingbehavior means a lot for themanufacturers. They must be very careful intheir marketingstrategies and should consider the females attitudetowardsconsumption of their product.Now here our basic purpose ofresearch is to come to the result that what arethe basic thingsregarding to products that largely affect the buying behavioroffemales and how much advertising influence their buying. Whenwe‘ll getour findings then we‘ll give very fruitful suggestions to themarketingdepartments of the organizations that how they canincrease their saleamongst the females.Projectsformba.blogspot.com1718. Projectsformba.blogspot.comRESEARCH PROCESSNowcoming towards the basic topic, we‘ll start from here the majorportion of our reportwhich is the research process through whichwe‘ll conclude what we find and what arethe recommendations forthe marketing departments of 1819. Projectsformba.blogspot.comTYPE OF RESEARCH:As ourresearch is for all the organizations so we can say that our researchtype is BASICor PURE RESEARCH, which is on a 1920. OBSERVATION:―Observationmeans to see or feel what certain changes are occurring or newbehaviors, attitudes and feelings are surfacing‖. It is the stage whenproblem is not defined yet.There are four types of observation 20
  • 34. 21. 1) Currently existing problem 2)Situation requiring improvements 3) Theoretical or conceptualproblem 4) Problem requiring empirical answersHere in our project,the problem can beSITUATION REQUIRINGIMPROVEMENT…Because we are going to conduct the wholeresearch process on the buying behavior offemales, so situation issatisfactory as females buy more and more with the passage oftime.We just want to reach at those results which tell us that which thingsinfluence thefemales buying. Is it advertisement, quality, appearanceor any other thing…?So our basic research is on a situation in whichwe observe the buying behavior offemales having different taste,different preferences, and living in different cities ofPakistan and areof different 2122. PRELIMINARY DATACOLLECTION: ―It means to seek information in order to knowmore about what we observed‖Here we are working on a broaderterm that which factors influence the females buyingbehavior so wehave to collect data from different tools to confirm our observationthatwhich things actually influence the female buying and how muchadvertisement play rolein their 22 Unstructured interviews STRUCTURED INTERVIEWS:―Instructured interviews the interviewer asks those questions which arepre planned. All the questions are well prepared and the interviewercan easily ask the questions in a series from an appropriateRespondent. It is also called formal interview‖. UNSTRUCTUREDINTERVIEW: ―In unstructured interviews normally the interviewerasks the questions without any predetermined sequence. Thequestion which comes first in the mind of the interviewer will beasked first. It is also called informal interview.‖For the purpose ofcollecting the preliminary data about our observation, weconductedsome unstructured interviews from following 2SECTORS… A. EDUCATIONAL SECTOR B. ADVERTISINGAGENCY EDUCATIONAL SECTOR: FROM EDUCATIONALSECTOR WE SELECTED THE FEMALE MEMBERS OFFOLLOWING INSTITUTIONS…Projectsformba.blogspot.com23 Structured interviews 23.Projectsformba.blogspot.comPrimary Data can be collected by thefollowing two ways;1- Interviews2- Literature Survey 1.INTERVIEWS: Interviews are conducted for the followingreasons… • To bring preliminary issues to the surface so thatresearcher can determine about variables of interest. • To understandthe scenario of situation. • To explore the variables in thesituation.INTERVIWS MAY BE OF TWO TYPES:
  • 35. 24. 1. THE WELL KNOWNEDFEMALE TEACHERS OF UNIVERSITY OF THE LAHORE 2.THE TEACHERS OF AN INSTITUTION, PAK AIMS INLAHORE 3. THE FEMALE TEACHERS OF D & E ACADEMYGUJRANWALA. 4. FROM THE FEMALE STUDENTS OFUNIVERSITY OF THE LAHORE, PAK AIMS AND D & EACADEMY.According to the structured and unstructured interviewswhich we have conducted to theabove females, we collected thefollowing information about our situation problem… • Femalesmostly prefer the quality of the product • Advertisement effects theirbuying but the routine products which they use to buy from manyyears, from them they don‘t see that for which product advertisementis good. they just buy that product as routine E.g. Max bar, head &shoulders shampoo… • Females are more attractive towards productslike cosmetics, clothing, shoes… Especially working women •Advertisement is also the biggest cause to influence the buyingbehavior of females but advertisements should be approved by themarketing departments of companies. 2425. Projectsformba.blogspot.com2. LITERATURE SURVEYS:It isalso a part of Primary Data Collection. The purpose of literaturereview is to ensurethat no variable is ignored that has been considerimportant in the past.Literature Survey can be defined in thefollowing manner; 2526. ―Documentation of comprehensivereview of published and unpublished work from secondary sourcesof data in area of interest‖As far as our topic is concerned, weselected the following literatures from internet forthe purpose ofpreliminary data collection… 1) AAEC 3100 Food and FiberMarketing Dr. Steven C. Turner Chapter 6 Analyzing ConsumerMarkets & Psychological 2) From the study of an article publishedin the site… article we found the following things according to consumerbuying behavior…Characteristics Affecting Consumer BehaviorBuyer Psychological Personal 26 Personal SocialCultural Buying BehaviorIn which we found the following datathatMajor Factors which Influence the Consumer Behavior can be…27. Projectsformba.blogspot.comFactors Affecting ConsumerBehavior: Culture • Social Class • People within a social class tendto exhibit similar buying behavior. • Occupation • SOURCE ofIncome • Education • WealthMost basic cause of a persons wantsand behavior • Values • Perceptions • Subculture • Groups of people
  • 36. with shared value systems based on common life experiences. •Mature ConsumersFactors Affecting Consumer Behavior: Social •Reference Group influence: • Membership Groups: • Primary andSecondary • Non-membership groups: • Aspiration and Dissociative• More important with publicly consumed products • Familyinfluences: • Stage of the family lifecycle • Buying Roles in thefamily Factors Affecting Consumer Behavior: Psychological •Psychological • Factors • Motivation • Perception • 2728. • Beliefs and • AttitudesSoaccording to these literature surveys and from the interviews, weconfirm ourobservation that there are some specific things whichhighly influence theconsumer‘s buying behavior, especially offemale 2829. PROBLEM DEFINITIONAfter thepreliminary data collection, we can now develop a statement toexplain thebasic problem.Any gap between desired situation andactual situation is called Problem and briefstatement that explainsany thing is called Definition. So, Problem Definition means:―Astatement that explains what the real problem is, what types offactors are involved in this problem and finally what areconsequences of a problem.‖ 2930. Projectsformba.blogspot.comAfter going through interviews andliterature review we check the following essentialelements ofProblem Definition: 1) Antecedents(Contributing Factors) 2) RealProblem(What is Wrong) 3) Consequences(Results)The problemdefinition of our project can be explained with the help offollowingdiagram: (Real situation) (Consequences) EFFECTS ONBUYING BEHAVIOUR OF PRICE AND QUALITY ORIENTEDFEMALES ECONOMY 1- PRICE 2- QUALITY 3-ADVERTISEMENT (Antecedents) 4- IMPORTED PRODUCTS 5-PURCHASING POWER 6- STATUSANTECEDENTS:Antecedents are the contributing factors which are responsible forthe real problem. In our project antecedents are1- PRICE2-QUALITY3- ADVERTISEMENT4- IMPORTED PRODUCTS5-PURCHASING POWER6- STATUSProjectsformba.blogspot.com3031. Projectsformba.blogspot.comThese are the antecedents becausethese are the basic reasons behind the buying behaviorof females.These above antecedents effects directly or indirectly to the buyingbehaviorof females.REAL PROBLEM: ―As we know that welldefined problem is half solved and symptoms are not the realproblems.‖Real problem is that situation which results from the
  • 37. antecedents or contributing factors.So in our project real situationwhich is created from the contributing factors is:―How the buyingbehavior of females is influencing? Which factors influence it and istheadvertisement a basic factor‖?CONSEQUENCES:―Consequences are the results of real problem‖In our projectconsequence is ―The economy will be price and quality oriented‖thisconsequence is the result of the preliminary data collection as whenwe conductinterviews, mostly females think that they prefer thequality from all other 3132. THEORETICAL FRAMEWORK―It is a logical developed, described & elaborated network ofassociations among variables that have been identified throughinterviews, observation & literature survey‖ 32 Imported products Now in the research process we‘ll see that whichare the basic most important factors which mostly influence thebuying behavior of females. 3. Moderating Variable ―The variablewhich has strong contingent effect on the relationship of dependentSubstitutes Purchasing power Advertisement Quality Price Extraneous variable1. Dependent variable ―Any variable that willdepend on others for its values‖In our project, our dependentvariable is―BUYING BEHAVIOR OF FEMALES‖Now we‘llexplain the effect of other factors on this dependent variable in detailin ourwhole project.2. Independent Variables: It is the variable onwhich the dependant variable depends upon for its value ―The majorcauses of a problem are called independent variables.‖ In our project,our independent variables are: Intervening variable Moderatingvariable Independent variable Dependent variable The identification of key variables isvery important in every research study.It can be defined as: ―Avariable is anything that takes different values.‖ Types of Variables:& independent variable‖ It is also called second independentvariable. 33 Sales taxAs sales tax has little effect on the buying behavior so itcan be easily ignoredHere we show the relationship of differenttypes of variables diagrammaticallyProjectsformba.blogspot.com34 Willingness to buyThe effect of these variables can only be feltbut we can not measure them quantitatively.These variablescontribute an important role on the creation of the problem.5.Extraneous Variables: ―There are infinite numbers of factors whichmay have impact on the situation but we will ignore these factors byassuming them as constant are called extraneous variables.‖ In ourproject extraneous variable is as follows Status consciousness
  • 38. Above is the moderating variable because it has a strongcontingent effect on therelationship of dependent variables andindependent variables. As if marketingdepartments make the goodstrategies to attract the customers then they can increase theirsalevolume.4. Intervening Variables―There are some factors which haveeffect on the situation but we can not measure them quantitatively,we can just feel their effect.‖These variables will be createdautomatically by the working of independent variables.In our projectintervening variables are as follows: Role of marketingdepartments of the companies 34. Projectsformba.blogspot.comInour project, our moderating variables are:35. (Dependant Variable) (InterveningVariables) (Independent Variables) Imported products SubstitutesPurchasing power Advertisement Quality Price -StatusconsciousneBuying behavior of ss females -willingness (ModeratingVariables) (Extraneous Variables) Role of the Sales tax marketingdepartmen ts of companies. . 3536. 36 RELATIONAL This can be further classified as… o Co relationalhypothesis o Casual hypothesis.Co relational Hypothesis:―When astatement will create relationship among more than two factors orwhen causes of a problem are more than one, the hypothesis aboutsuch a problem will be called as co relational hypothesis.‖ OR―When there is only one problem and there are a lot of factors orvariables which Increase the problem is also called Co relationalHypothesis‖.In our study there is the situation of buying behavior offemales and there are manyindependent variables which influencethe buying behavior of females. Now we will checkthe relationshipamongst those variables by creating the Hypothesis and applyingcertainStatistical tools which will tell us that which factor is stronglyin connection with thebuying behavior 37 DESCRIPTIVE HYPOTHESIS DEVELOPMENT ―Ahypothesis is a logically conjectured relationship between two ormore variables expressed in the form of a testable statement.‖ OR ―Astatement whose validity will be confirm in future by applyingdifferent statistical tools‖So, in hypothesis we confirmed the validityof any statement after the experiments or datacollection.KINDS OFHYPOTHESIS:38. Projectsformba.blogspot.comSo the following is the creation ofHypothesis of different factors that affect the buyingbehavior offemales…Female preferences:Hο: females do not prefer quality ofthe product while buyingH1: females prefer quality of the products
  • 39. while buying.Influence of advertisements:Hο: Advertisement has noinfluence on the buying behavior of femalesH1: advertisement hasinfluence on the buying behavior of females.StatusconsciousnessHο: females do not prefer status/self image whilebuying.H1: females prefer status/ self image while buying.Negativeeffects of advertisements:Hο: there is not any negative effect ofadvertisement on the buying behavior of femalesH1: there is anynegative effect on the buying behavior of females.Advertisements ofsubstitutes:Hο: advertisements of the substitutes do not affect thepopularity of the product.H1: advertisements of the substitutes affectthe popularity of the product.Imported goods:Hο: imported good arenot more attractive for femalesH1: imported goods are moreattractive for females.Satisfaction level:Hο: good advertisements arenot the basic cause of satisfaction of females towards consumptionof goods.H1: good advertisements are the basic cause of satisfactionof females towards consumption of goods.Advertised products:Hο:females do not prefer the advertised products on necessities oflifeH1: females prefer the advertised products on the necessities oflife.Product success or failure:Hο: advertisements can not becomethe cause of any product success or failure.H1: advertisements canbecome the cause of product failure or success.Demand of theproduct:Hο: advertisements cannot create the demand of anyproduct.H1: advertisements can create the demand of 3839. 3940. RESEARCH DESIGN:It is a majorand pivotal step of business research. The step involves the overallschemeabout data collection.―Research design is a plan and structureof investigation to obtain answer to researchquestion. It is overallscheme and program of research which includes an outline ofwhatthe researcher will do from developing hypothesis and to thefinal analysis of data‖. Research design constitutes the blue print forcollection, measurement and analysis ofdata. R.D is plan andstructure of investigation to obtain answer to researchquestions.PURPOSEOF TYPE OFSTUDY INVESTI RESEARGATION CHER INTERFE RENCE STUDY SETTING UNIT OFANALYSI S TIME HORIZO N SAMPLIN G DATA COLLECMEASURE TION MENT OF METHOD MEASURE S 4041. PURPOSE OF STUDY: In thepurpose of study, researcher defines the purpose behind the research.These may be 4 types of purposes: 1. exploration 2. description 3.hypothesis 4. case study Here in our research process, our purpose ofstudy is to evaluate that WHAT affects the female‘s buying
  • 40. behavior, WHICH are the factors, which influence the buyingbehavior of females, HOW advertisements affect the buyingbehavior of females. So we can say that as we are explaining anexisting situation so our purpose of study is Description.‖ Objectiveof descriptive study is to learn the who, how, what, when, where of atopic. TYPES OF INVESTIGATIONS: Investigation is conducted tocomplete the research process efficiently. Investigations may be oftwo types: 1. casual investigation 2. co relational investigation CORELATIONAL INVESTIGATION: The investigation which isconducted to explain the effect of different variables on the situationis called co relational investigation.In simple words, we can say thatwhen there are more than one reasons of a problem it iscalled corelational investigation.In our research process,Our type ofinvestigation is ―Non Casual‖ because there is more than one reasonwhichinfluences the buying behavior of 4142. Projectsformba.blogspot.comRESEARCHERINTERFERENCE:In researcher interference we see that which typeof study is going to be conduct by ourgroup. Either it is 1. corelational study, in which minimum involvement of researcher isrequired because it is based on findings of others, or 2. Casual study,in which researcher involvement is more. As we are conductingresearch through the findings of others so our involvement isminimum in the findings of research. STUDY SETTING: It meansin which type of environment we‘ve conducted our research process.The study setting may be of 2 types: a. Contrived This can be furtherclassified as o Lab experiment. b. non-contrived This can also befurther classified as o Field study. o Field experiment. Non-contrived: ―When the research is conducted in natural or normalenvironment, it will be called non contrived study.‖ Normally, thistype of study is conducted inside the organization. Field Study:―When the researcher has to co related the factors then investigationout side the organization is called as Field Study.‖ So, the type of ourstudy setting is non-contrived and during our research we alsoconducted Field Study. 42 Non Probability Sampling 43Probability Sampling OrganizationsIt depends upon the nature ofproblem that is being investigated. In our research process, we‘vegathered the data from INDIVIDUALS in the form of questionnairesand from ORGANIZATIONS in the form of interviews. TIMEHORIZON: In which we mention that how much time we‘ve used indata collection. Time horizon has two types 1. cross-sectional 2.longitudinal Longitudinal study: ―As In Longitudinal method thewhole data is collected again and again with out any time interval.‖So in our research time horizon is Longitudinal. SAMPLING: The
  • 41. process of using a small number of items or parts of a largepopulation to make conclusions about the whole population Thebasic purpose of sampling is; To obtain maximum information aboutthe characteristics of population with in less time, cost and effortThere are two types or styles of Sampling. That is GroupsDyads Individuals 43. UNIT OFANALYSIS:It is aggregation of data during subsequent analysis.Data can be gathered form:44. Projectsformba.blogspot.comWHERE PROBABILITYSAMPLING CONTAINS: 1. Complex random sampling Thisfurther can be classify as o Systematic Sampling o StratifiedSampling o Cluster Sampling o Area Sampling o Double Sampling2. simple random samplingAND NON PROBABILITY SAMPLINGCAN BE CLASSIFIED AS: 1. Convenient sampling 2. purposivesampling o judgment approach o quota approachhere in our researchprocess, we‘ve done the complex random sampling under the head ofprobabilitysampling in which we‘ve used the CLUSTERSAMPLING APPROACH in which sample is chosen onthe basis ofintra- group heterogeneity and inter-group homogeneity.As we arecomparing here the females with females so our sampling criteria isinter-group 4445. Projectsformba.blogspot.comDATA COLLECTIONMETHODS:There are two types of data collection methods. 1.primary data collection • structured interviews • unstructuredinterviews 2. secondary data collection • questionnairesStructuredInterview: ―Structured Interviews are conducted when it is known atthe outsetwhat information is needed. The interviewer has a list ofpre-determined questions to beasked of the respondents eitherpersonally, through the telephone, or by sending the mainthroughelectronic mail.‖Un-Structured Interview: ―In case of unstructuredinterview, the interviewer asks thequestions without any pre-determined sequence. Those questions are asked first whichcome inthe mind of the interviewer first.‖So we conducted StructuredInterviews with the employees of different selectedorganizations.And our method of collecting Primary Data is throughStructuredInterviews and Un-structured Interviews which we havealready discussed in preliminarydata collection methods.Unobtrusivemeasures: ―It means to trace the measures from a primary source thatdoesnot involve people.‖In the primary data collection, we also usethis technique by just observing the buyingbehavior of females ofour homes and near our 4546. Projectsformba.blogspot.comQuestionnaire: ―A questionnaire isa reformulated written set of questions to whichrespondents recordtheir answers, usually within rather closely defined
  • 42. alternatives.‖Questionnaires are an efficient data collectionmechanism when the researcher knows exactlywhat is required andhow to measure the variables of interest.Questionnaire can beadministered personally, mailed to respondents, orelectronicallydistributed.During our research process we made closeended questionnaires, and these arepersonallyadministered.MEASUREMENT OF MEASURES: ―Measurement ofmeasures is a key step in research design; it means to measuretheinformation collected from different respondents by differentways by using differentmethods of data collection, to check theaccuracies and reliability of data or informationcollected. It is alsocalled the MOM of research.‖Scale: ―Scale is a tool by which theindividual units are distinguished on the basis ofvariable of interestin some meaningful way.‖We can say that scales will categories thethings into different groups.Types of Scales a) Nominal Scale b)Ordinal Scale c) Interval Scale d) Ratio ScaleAPPROACHES OFSCALING: a) Dictorious scaling. b) Category scaling. c) 4647. d) Semantic scaling. e) Numericalscaling. f) Ranking scaling. g) Fixed scaling. h) Psychologicalscaling i) Graphic scalingIn our Central EditingFIELDEDITING:According to this approach, researcher makes thecorrections at the time of gettinginformation from the respondents.Soin our research process, we used this approach at each and every stepdue to which ourdata is correct and having no mistake or blanks init.Now we can analyze it through 47 Field editing designing of questionnaire, we have used the following approachesin questions,Dictorious scalingCategory scalingSemanticscalingRanking scalingGraphical scaling (in every question)DATAPREPERATION FOR ANALYSIS:Before analyzing the data, we‘veedit our data due to the reason that there should be notany mistake indata which can cause the error in the data analysis.Types of Editing48. 4849. DATA ANALYSISFor thepurpose of analyze the validity and reliability of data, certainstatistical toolsAveragesCorrelationPercentage etc are applied. Herefor the confirmation of our research we will use thepercentagetechnique in which mea of the data is also calculated.NOW WE‘LLANALYZE ALL THE FACTORS INVOLVED IN ALLQUESTIONSOF OUR QUESTIONNAIR TO COME AT THECONCLUSION THAT WHAT ARETHE BASIC FACTORSWHICH INFLUENCE THE FEMALE BUYING BEHAVIORANDHOW MUCH ADVERTISING PLAYS THE ROLE IN IT:We‘ll
  • 43. analyze here each and every question one by one, keep in mind thatthisquestionnaire was only for females.Projectsformba.blogspot.com4950. Projectsformba.blogspot.comQ#1: What is your preference whilebuying?Frequency TableYour preference while buying FrequencyPercent Valid Percent Cumulative Percent Valid price 33 11.0 11.011.0 quality 134 44.7 44.7 55.7 appearance 24 8.0 8.0 63.7 local or22 7.3 7.3 71.0 imported all of the 87 29.0 29.0 100.0 above Total300 100.0 100.0GRAPHICAL REPRESENTATION: price all of theabove local or imported 5051. Projectsformba.blogspot.comIN THE NUT SHELL: In thisquestion we want to evaluate that which factors basicallyinfluencethe female buying. We filled the 300 questionnaires from 300femalesof different ages and from different areas. When we took thefrequency of ourresults provided by females, we come to the resultthat the main basic factorwhich hardly influences the female buyingis PRODUCT QUALITY. Manyfemales have also selected the priceand appearance and imported products, butaccording to the results itis approved that they give more preference to thequality of anyproduct.At the second place, mostly females also selected the lastoption which is ALLOF THE ABOVE, which means now daysfemales do shopping according to aplanning. They buy each andevery thing with full concentration and do notcompromise with anything while buying.So at the result, we can say that females give firstpriority while buying to thequality and then to the other influencingfactors. HENCE THE RESULTQ#2: Do advertisements influenceyour buying? 5152. Projectsformba.blogspot.comFrequency TableDo adver influencebuying Frequency Percent Valid Cumulative Percent Percent Validyes 193 64.3 64.3 64.3 no 58 19.3 19.3 83.7 I don‘t 49 16.3 16.3100.0 know Total 300 100.0 100.0GRAPHICALREPRESENTATION: 300 200 100 Count 0 yes no i dont know doadver influence buyingIN THE 5253. Projectsformba.blogspot.comWe structured the above questionaccording to the basic requirement of ourresearch topic which isEFFECT OF ADVERTISEMENT ON THE BUYINGBEHAVIOUROF FEMALES.So according to the above findings, we can see that193 females are agreedupon the fact that their buying influencedwith the advertisements. Whichmeans advertisement is also a basicfactor of influencing females buyingbehavior.Secondly 58 femalessaid that advertisement do not influence their buying. Thismay be
  • 44. due to the fact that Pakistan is a poor country and females can‘t beartoomuch expensive things so they always cant follow theadvertisements whilebuying the necessities of life.And the lastportion of females, which is 49…they said that they don‘t haveanyidea about it which means they do shopping according to theroutine matters.They don‘t prefer which things are newly emergingin advertising Medias. HENCE THE RESULTQ#3: While buying,you are more conscious 5354. Projectsformba.blogspot.comFrequency TableConscious towardsFrequency Percent Valid Cumulativ Percent e Percent Validadvertise 33 11.0 11.0 11.0 ment status 51 17.0 17.0 28.0 price, 14147.0 47.0 75.0 quality all of the 75 25.0 25.0 100.0 above 300 Total100.0 100.0GRAPHICAL REPRESENTATION: advertisement allof the above status price, qualityIN THE 5455. Projectsformba.blogspot.comAbove question was administeredby our group by keeping in mind the femalepsyche that when theygo to the market to buy something, they are moreconscious towardswhich things. So according to the results we also got thesameanswers as we got in question one because mostly females said thattheyprefer quality and price factor while buying. They do notcompromise with thequality of the product. Others are the secondarythings.Here we can observe that status also influence the buyingbehavior because inour country females often consider the statuswhile buying. HENCE THE RESULTQ#4: Do you prefer status/selfimage during buying?Frequency TableProjectsformba.blogspot.com5556. Projectsformba.blogspot.comStatus preferences FrequencPercent Valid Cumulati y Percent ve Percent Valid i think so 15451.3 51.3 51.3 i dont 44 14.7 14.7 66.0 think so seldom 64 21.3 21.387.3 think so i dont 38 12.7 12.7 100.0 know Total 300 100.0100.0GRAPHICAL REPRESENTATION 180 160 140 120 100 8060 40 Count 20 i think so i dont think so seldom think so i dontknow status preferencesIN THE 5657. Projectsformba.blogspot.comHere we can see that how statuseffects the female buying behavior. Here in ourcountry females arevery conscious for their self image so we can see that in theresults144 females agree that they consider the self image whilebuying.Secondly females said that they seldom think that theyconsider the status whilebuying because they also consider the priceand quality of the products as wellbecause they are also veryimportant.At the last some females said that they are not status
  • 45. conscious and some saidthat they don‘t know that either theyconsider the self image while buying ornot. These may be thosefemales which only prefer to buy basic necessities lifeand belongs tomiddle or lower middle families. HENCE THE RESULTQ#5:Which type of advertisement is more attractive foryou? 5758. Projectsformba.blogspot.comFrequency TableType ofadvertisement Frequency Percent Valid Cumulative Percent PercentValid product 165 55.0 55.0 55.0 institutional 51 17.0 17.0 72.0celebrity 84 28.0 28.0 100.0 Total 300 100.0 100.0GRAPHICALREPRESENTATION: celebrity product institutionalIN THE 5859. Projectsformba.blogspot.comHere we‘ll se that whichadvertisement type is more attractive for females. Thisquestion wasmade for the purpose to suggest the companies that femalespreferwhich types of advertisements.Here we can see that productadvertisement is at the top of the list. Females aremore familiartowards product advertisements instead of other types.Secondarycelebrity advertisements are also very famous amongst thefemalesbut there should be improvements in this type for becomingmore successful. HENCE THE RESULTQ#6: Is there any negativeeffect of advertisement on your buying behavior? 5960. Projectsformba.blogspot.comNegative effect of advert FrequencyPercent Valid Cumulative Percent Percent Valid yes 59 19.7 19.719.7 no 66 22.0 22.0 41.7 sometimes 147 49.0 49.0 90.7 never 28 9.39.3 100.0 Total 300 100.0 100.0GRAPHICALREPRESENTATION: 160 140 120 100 80 60 40 20 Count 0 yes nosometimes never negative effect 6061. Projectsformba.blogspot.comIN THE NUT SHELL:Now we‘llsee that we know that advertisements have influencing effects onthebuying behavior of females but is advertisement has negativeeffects as well ornot.For this purpose we illustrated the abovequestionnaire and took feedback fromfemales. From that feedbackwe came to know that mostly females think thatsometimesadvertisement effects negatively. These negative effects may beofany type.On the second and third place we can see that ratio isalmost same, somefemales think that there are definitely bad effectsof advertisement and somethink that there is no any negative effectsof advertisements. And some said thatthere can never be any badeffects of advertisements. Advertisements aresuccessful always.
  • 46. HENCE THE RESULTQ#7: Negative effects of advertisement maybe of which type?Frequency 6162. Projectsformba.blogspot.comNegative effects may b FrequencyPercent Valid Cumulative Percent Percent Valid You often 109 36.336.3 36.3 neglects the price while purchasing Too much 39 13.0 13.049.3 prefer the celebrity advertisement Prefer only 73 24.3 24.3 73.7appearance and reputation of company, not quality others 79 26.326.3 100.0 Total 300 100.0 100.0GRAPHICALREPRESENTATION: others You of ten neglects Pref er onlyappearan Too much pref er theIN THE 6263. Projectsformba.blogspot.comIn the above question we give someoptions regarding to negative effects ofadvertisements. That if thereis any negative effect of advertisement then thatshould be what. Soaccording to our research, we can say that females think thatwhennew advertisement come then they often neglect the price of theproductand purchase that advertised product. They don‘t think thathow much theproduct is expensive; they just go through to buy thatproduct due to veryattractive advertisement.Also a group of femalessaid that they think that they often see the goodappearance of theproduct and purchase that, they don‘t consider the qualitymuch atthat time.And also a large number of females said there are alsoother negative effects ofadvertisements that appear according to theconditions. HENCE THE RESULTQ#8: Effectiveness andattractiveness of advertisement depends 6364. Projectsformba.blogspot.comAttraction towards FrequencyPercent Valid Cumulative Percent Percent Valid slogan 54 18.0 18.018.0 trade mark 25 8.3 8.3 26.3 company 64 21.3 21.3 47.7 reputeappearance 39 13.0 13.0 60.7 all of the 118 39.3 39.3 100.0 aboveTotal 300 100.0 100.0GRAPHICAL REPRESENTATION: 140 120100 80 60 40 20 Count 0 slogan company repute all of the abovetrade mark appearance 6465. Projectsformba.blogspot.comIN THE NUT SHELL:We makethis question for the marketing departments of the companiestosuggest them that which things according to the females becomeanadvertisement attractive and effective. That‘s things may be offollowings:SloganTrade markCompany reputeAnd appearanceButthe females said that all of the above options can combinely makeanadvertisement effective and attractive for females.If the companiesgive attention to all of the above things then they can attractthefemales toward their products through advertisement. HENCE THE
  • 47. RESULTQ#9: How the advertisements of substitutes affect thepopularity of any 6566. Projectsformba.blogspot.comAdvertisement of substituteFrequency Percent Valid Cumulative Percent Percent Valid Demandof the 121 40.3 40.3 40.3 product reduces You neglect 67 22.3 22.362.7 the product due to new advertisement of substitute it doesn‘t112 37.3 37.3 100.0 effect Total 300 100.0 100.0GRAPHICALREPRESENTATION: it dosnt effect Demand of the produc Youneglect the 6667. Projectsformba.blogspot.comIN THE NUT SHELL:Here is aquestion to check that if a new advertisement of the substitute ofanyexisting product come then is that affects the popularity and salevolume of theexisting product.So according to the feedback we cansee that 121 females said that demand ofthe existing productdecreases due the advertisement of the new product and112 femalessaid that it doesn‘t effect the popularity of the product whichmeanshere is a controversy amongst the different group of females,whichmeans that females perceive the new advertisementsdifferently according totheir mood and situations. HENCE THERESULTQ#10: Which advertisement media is more attractive foryou?Frequency 6768. Projectsformba.blogspot.comAdvertisement media FrequencyPercent Valid Cumulative Percent Percent Valid electronic 187 62.362.3 62.3 news paper 21 7.0 7.0 69.3 fashion 52 17.3 17.3 86.7magazines bill boards 34 11.3 11.3 98.0 others 6 2.0 2.0 100.0 Total300 100.0 100.0GRAPHICAL REPRESENTATION: 200 100 Count0 electronic fashion magazines others new s paper bill boardsadvertisement 6869. Projectsformba.blogspot.comIN THE NUT SHELL:Now in thisquestion we‘ll see that which advertising Medias are mostpopularamongst females.Now here we can see that electronic mediais the basic most important mediafor the popularity of theadvertisements amongst the females.On the second place we can alsosee that fashion magazines are also verypopular amongst femaleslike akhbar-e-jahan and others. HENCE THE RESULTQ#11: Howadvertisements affect the level of your 6970. Projectsformba.blogspot.comAdvertisement effect level ofbuying Frequency Percent Valid Cumulative Percent Percent Validbuy more 106 35.3 35.3 35.3 buy less 30 10.0 10.0 45.3 remainssame 164 54.7 54.7 100.0 Total 300 100.0 100.0GRAPHICAL
  • 48. REPRESENTATION: buy more remains same buy lessIN THENUT 7071. Projectsformba.blogspot.comHere we are checking that how theadvertisement affects the level of the buyingof females. Is itpositively affects or negatively or remains neutral.So here we can seethat mostly females said their there level of buying remainssamewith the new advertisements. They buy in the routine; there is notany bigchange due to advertisements.But on the second hand anotherbig group of females said that their buyinglevel increases with thenew and innovative advertisements. When anyadvertisement attractsthem then they definitely buy that due to which theirbuying levelincreases. HENCE THE RESULTQ#12: Advertisements of importedproducts are more attractive for you due 7172. Projectsformba.blogspot.comAdvertisement of importedproducts Frequency Percent Valid Cumulative Percent Percent Validquality 120 40.0 40.0 40.0 reliability 77 25.7 25.7 65.7 company 5919.7 19.7 85.3 image status 44 14.7 14.7 100.0 Total 300 100.0100.0GRAPHICAL REPRESENTATION 140 120 100 80 60 40Count 20 quality reliability company image status advertisement ofimported productsIN THE 7273. Projectsformba.blogspot.comFemales in our country prefer a lotthe imported goods on local goods so weconducted the research forthis purpose also that what are the reasons behindthis so that ourlocal companies can also adopt that strategies so that theirselling willalso increaseSo according to the results we can see that femalesprefer them due to thequality and reliability of that products, theimported products are more reliableand have the good quality due towhich they prefer them and neglect the localgoods. HENCE THERESULTQ#13: Which advertisement, for the following categories,is more attractive for 7374. Projectsformba.blogspot.comMore attractive advertisementcategories Frequency Percent Valid Cumulative Percent PercentValid basic 91 30.3 30.3 30.3 accessories home 52 17.3 17.3 47.7appliances art and craft 36 12.0 12.0 59.7 cosmetics 120 40.0 40.099.7 others 1 .3 .3 100.0 Total 300 100.0 100.0GRAPHICALREPRESENTATION: others basic accessories cosmetics homeappliances art and craftIN THE 74
  • 49. 75. Projectsformba.blogspot.comWe know that advertisement is verypopular amongst the females but here wewanted to know thatadvertisements of which category are mostly popular.Here accordingto the results female like the ads of cosmetics more and thencometowards the basic accessories of life and on the other categories.HENCE THE RESULTQ#14: Degree of your satisfaction, towardsconsumption of goods depends 7576. Projectsformba.blogspot.comDegree of satisfaction, consumptionof goods Frequency Percent Valid Cumulative Percent Percent Validgood quality 174 58.0 58.0 58.0 price 38 12.7 12.7 70.7 appearance34 11.3 11.3 82.0 company 30 10.0 10.0 92.0 image others 24 8.08.0 100.0 Total 300 100.0 100.0GRAPHICALREPRESENTATION: 200 100 Count 0 good quality appearanceothers price company image degree of satisfaction, consumption ofgoodsIN THE NUT 7677. Projectsformba.blogspot.comSatisfaction is very important forevery one, towards consumption of goods. Ifa costumer is satisfiedthen he will again and again purchase that product.According to ourresearch we came to know that females become satisfy mostlydue togood quality of the product.Price, appearance, company images havethe secondary importance for thesatisfaction of females towardsconsumption of goods. HENCE THE RESULTQ#15: Do you preferadvertised products on basic necessities of life duringbuyingFrequency TablePrefer advertised products on 7778. Frequency Percent ValidCumulativ Percent e Percent Valid i think so 125 41.7 41.7 41.7 idont think 82 27.3 27.3 69.0 so seldom think 60 20.0 20.0 89.0 so idont know 33 11.0 11.0 100.0 Total 300 100.0 100.0GRAPHICALREPRESENTATION: i dont know seldom think so i think so i dontthink soIN THE NUT 7879. Projectsformba.blogspot.comHere is a question to see theimportance of advertised products. We ask fromthe females that ifthey prefer the advertised products on basic necessities thenwe cansee that almost 42 % females think that yes they often prefertheadvertised products on the basic necessities.And also on thesecond hand almost 28 % females think that they do not prefertheadvertised products on the basic necessities of life. HENCE THERESULTQ#16: Is advertisement become the cause of product failureor successFrequency 79
  • 50. 80. Projectsformba.blogspot.comAdvertisement cause productfailure or success Frequency Percent Valid Cumulativ Percent ePercent Valid i think so 125 41.7 41.7 41.7 i dont think 53 17.7 17.759.3 so seldom think 52 17.3 17.3 76.7 so i dont know 42 14.0 14.090.7 5 28 9.3 9.3 100.0 Total 300 100.0 100.0GRAPHICALREPRESENTATION: 140 120 100 80 60 40 20 Count 0 i think soseldom think so 5 i dont think so i dont know advertisement causeproduct failure or 8081. Projectsformba.blogspot.comIN THE NUT SHELL:Thisquestion was made to get the idea of females that what they thinkthat canadvertisement cause any product failure or success?Soaccording to the results 41.7 % females said that yes a goodadvertisementcan be the cause of product success and a badadvertisement can become thecause of product failure.The ratios forthe rest options are almost same. HENCE THE RESULTQ#17: Isadvertisement increases demand of any 8182. Projectsformba.blogspot.comAdvertisement cause demand ofproduct Frequency Percent Valid Cumulative Percent Percent Validyes 214 71.3 71.3 71.3 no 39 13.0 13.0 84.3 i dont know 47 15.715.7 100.0 Total 300 100.0 100.0GRAPHICAL REPRESNTATION:i dont know no 8283. Projectsformba.blogspot.comIN THE NUT SHELL:In the abovequestion we got ideas that can advertisement create more demandforthe products or not.So here we can see that 71 % females said thatyes advertising can create thedemand for any product. If advertisingagencies make good advertisements thenthe demand of theirproducts will also be increased. HENCE THE RESULTQ#18: Howmarketing departments of companies make advertisementinterestingHow mkt dept make 8384. Frequency Percent ValidCumulative Percent Percent Valid By using 37 12.3 12.3 12.3famous celebrities By using 35 11.7 11.7 24.0 different medias By63 21.0 21.0 45.0 improving appearance of products All of the 16555.0 55.0 100.0 above Total 300 100.0 100.0GRAPHICALREPRESENTATION: 180 160 140 120 100 80 60 40 20 Count 0 Byusing famous cele By improving appeara By using different m All ofthe above how mkt dept make advertisement interestingIN THENUT 8485. Projectsformba.blogspot.comIn this question we collect thesuggestions from the females that how the marketingdepartments can
  • 51. make the most attractive advertisements due to which femalesbecomemore influence towards the product and buy that product.Wegave the following options to the females for selection that areByusing famous celebritiesBy using different MediasBy improvingproduct appearanceBut 55 % females are agreed upon one conditionthat all of the above situations can becombinely put in the process ofmaking attractive advertisements to influence the buyingbehavior offemales. HENCE THE 8586. 8687. FINDINGSIn our whole researchprocess, we get the following findingsProjectsformba.blogspot.com87 Marketing departments of the companies can make theadvertisements more attractive by using famous celebrities, differentmedias and by improving the appearance of the product.CONCLUSIONSThe purpose of our research is to find out thefemale behaviors towards thebuying of the products and also to seethat how much advertising affects theProjectsformba.blogspot.com88 Demand of the products can be increased with the help of goodadvertisements. Advertisement can become the cause of productfailure or success. Females mostly satisfy with the good quality ofthe product. Imported goods are mostly preferred due to their goodquality and reliability. Advertisement doesn‘t much effect the levelof buying. The most attractive advertising media in Pakistan iselectronic media Company reputation effects also in theeffectiveness of advertisements. Advertisements can become moreeffective through innovative slogans, different trade marks.Advertisement often left some negative effects in the minds ofconsumer, according to our research process that negative effectsmay be categorized in this sense that females neglect the price of theproduct and buy that advertised product at any cost. The mostpopular advertisement type amongst the females is productadvertisement Self image effects too much when females buy anyproduct Advertisement influence the female buying behavior butnot more than quality of the product Females are more concernedtowards the quality of the product while buying 88.Projectsformba.blogspot.comThat:89. Projectsformba.blogspot.combuying behavior of females. Thebasic purpose of our research is to getinformation from females andthen suggest to the companies that what theycan do maximum toimprove their selling. Is advertisement is the biggesttool they have to
  • 52. attract the females towards their products or there are someotherfactors as well which have the affects more than advertisements. Soforthis purpose we planned a full fledge research process and for thispurposewe did the cluster sampling and made the questionnaires tofill from thesample group to come to the conclusions.After collectingthe data we analyzed it and made some conclusions basedonfindings. We have found that females prefer the quality of theproduct atvery first stage. Now days females are very intelligent,they know thatadvertisements and appearances of the products maybe fake and canperceive them so they firstly check the quality of theproduct and then buythat product in the routine.As we conducted thewhole research from the very qualified females livingin good areasso their responses are very effective for our research process.Theover all trend was seen in the questionnaires regarding to the qualityofthe products so which means females do not compromise with thequality.People have mixed results about the advertisements of theproducts. On theone hand it also highly influences the buyingbehavior of females due toattractive Medias, different types,innovations in slogans but on the otherhand it also has some negativeeffects as well. If a good advertisement canbecome the cause of thesuccess of any product then a bad advertisement canbecome thecause of failure of any product.More over advertisements can effectnegatively and also positively to thechildren. They can perceive anything from the ads so advertisements shouldbe much ethical andgood for the children and teenagers.Further more according tofemales, the marketing departments should makethe advertisementsbetter through new and unique strategies if they want toincrease theirsale and want to use the advertisement a big tool to increasetheir salevolume. RECOMMENDATIONSAfter getting the conclusions ofour research, we want to give somerecommendations to themarketing departments of the companies 89 Packaging must be g Advertisement affects the buying behaviorbut it must be realistic We also asked an open ended question fromthe females, they give us some value able suggestions which wewant to give you And rewardingHere we suggest you the ten stepsto make advertising successful1. Narrow your market to a specificgroup of prospective clients. Find your nichemarket.2. Analyze yourmedia. Does it appeal to your niche market? If it does, tailor youradsto relate directly to your media.3. Appeal to the impulse in theviewers of your ad. Call your readers to action *now*... Emphasizethe benefits which a consumer will get after purchasing yourproduct.Offer something free in the ad itself.4. Use other medias as well forcreating more demand of your products. Analyzethe advertisingstrategies of others.5. Design "killer" headings (slogans). Use new
  • 53. and interesting techniques whiledesigning a message for yourproduct.6. Use different famous celebrities to become the moreattractive advertisement.7. Use realistic facts and figures in your adsso that the customers become moreloyal towards your product.8.Repeat again and again your advertisements so that theadvertisement of yourproduct can continuously be seen bycustomers.9. Clearly define all the attributes of the product so thatcustomers also believe thatthis product has also a good quality.10.Now promise yourself this: Youre going to get your ads noticed bywriting themyourself and taking these steps to advertising success.Relevant Truth full Advertisement can do any thing, it can createthe demand of any product but the advertising strategies should beeffective so that females believe on these ads and buy the productsso advertising should be: As females mostly prefer the quality ofthe products so they should highly focus on the quality of theirproducts. 90. Projectsformba.blogspot.comthey can focus on thosethings through which they can increase their salevolume amongst thefemales. Advertisements influence but to 90 ood to influence the buyingbehavior of females Advertisements can change the preferences of females while buyingbut that must be realistic.So at the end we are stronglyrecommending you that if you want to increasethe sale volume ofyour product then firstly make its quality good, makerealisticadvertisements and use 91 Females prefer electronicmedia‘s advertised products. Medias play an important role andadvertisements must be interesting. Buying behavior varies fromregion to region so advertisement does not affect a lot.
  • 54. A comparison study on the top ‘three’ two wheeler companies in india — DocumentTranscriptProjectsformba.blogspot.comA COMPARISON STUDY ON THETOP ‗THREE‘ TWO WHEELER COMPANIES IN INDIADISSERTATION SUBMITTED IN PARTIAL FULFILLMENTFOR THE AWARD OF THE DEGREE OF MASTER OFBUSINESS ADMINISTRATION BY UNDER THE GUIDANCEOF PROF. …………………………… FACULTY GUIDE- CUIMCHRIST UNIVERSITY INSTITUTE OF pg. DECLARATION This is to certify thatthis research project titled ―A COMPARISON STUDY ON THETOP ‗THREE‘ TWO WHEELER COMPANIES IN INDIA‖is anoriginal work carried out in the 5th and 6th trimester of myMBA(2008-2010) underthe guidance of ……………………... Thisproject is made exclusively as a part of mycurriculum and will not besubmitted in future to any other university or pg. CERTIFICATE This is to certify that…………………., student of Christ University of Management,Bangalore, has completed this research project titled ―ACOMPARISON STUDY ONTHE TOP ‗THREE‘ TWO WHEELERCOMPANIES IN INDIA‖ under my guidance from in partialfulfillment of the Masters of Business Administration degree.……………………………………….. PROFESSOR,MARKETING DEPT. CHRIST UNIVERSITY INSTITUTE OFMANAGEMENT pg. ACKNOWLEDGEMENTIt is withimmense satisfaction and pride that, I am completing myDissertation Project report. I therefore, would like to stop for a fewmoments and thank Christ University Institute of Management,Bangalore and …………….. for allowing me to take up myDissertationProject on comparison study of two wheeler companiesin India . I am also very thankful for his extensive support, timelyguidance and regular monitoring our progress and providingvaluable inputs from time to time. Sincere thanks to all therespondents, for parting their valuable time and being so patientinsharing the relevant information. I also express my overriding
  • 55. debts and thanks to my friends, without whose help it would havebeen impossible to complete my project. Last but not the least; Iwould like to thank all those concerned people who have directly orindirectly contributed in the completion of this entire pg. 4Projectsformba.blogspot.comContentsDECLARATION........................................................................................................................................2CERTIFICATE...........................................................................................................................................3ACKNOWLEDGEMENT............................................................................................................................4 1.1 Introduction to Indian Two-wheelerSector:............................................................................10 1.2Evolution of Two-wheeler Industry inIndia:..............................................................................11 1.3 ProfileChange in Indian Two-WheelerIndustry........................................................................14 1.4 KeyEarningsDrivers..................................................................................................................152.1 COMPANY PROFILE.......................................................................................................................17 2.2 Hero Honda MotorsLimited......................................................................................................18 2.3 CorporateProfile:.......................................................................................................................18 2.4 Missionstatement:....................................................................................................................20 2.5 HERO HONDASMANDATE:.......................................................................................................20 2.6 S.W.O.TANALYSIS:...................................................................................................................21STRENGTHS:.....................................................................................................................................21WEEKNESS:.......................................................................................................................................21 2.7 HERO HONDA‘S COREVALUES.................................................................................................22 2.8 Product range of HEROHONDA................................................................................................23 2.9 BAJAJ autoltd...........................................................................................................................27 2.11 BAJAJ AUTO‘ pg. 2.12 SWOTAnalysis.................................................................................................
  • 56. ........................29 2.13 The InevitableChange.............................................................................................................31 2.14 Product range ofBajaj.............................................................................................................32 2.15 CurrentSituation.....................................................................................................................35 CurrentPerformance...................................................................................................................35 2.16 The Industry Analysis - Five ForcesAnalysis-BAL...................................................................36 ExternalEnvironment..................................................................................................................36 2.17 Product & Advertising Strategies OFBAL................................................................................37 2.18Strategies &Implementation..................................................................................................38 FMCG BusinessModel..................................................................................................................38 2.19 Other StrategicIssues..............................................................................................................39 2.20 Strategies for the OverseasMarkets.......................................................................................402.21R&D.........................................................................................................................................41 2.22 TheFuture...............................................................................................................................42 2.23 New Strategies adopted byBajaj.............................................................................................432.24 HONDA MOTORCYCLE & SCOOTER INDIA (Pvt.)Ltd.(HMSI)....................................................44 2.25 About HondaMotorcycle & Scooter India Pvt.Ltd..................................................................44 2.26 CORPORATEPROFILE...............................................................................................................45 2.27 MissionStatement..................................................................................................................46 2.28 SWOTAnalysis.........................................................................................................................46 2.29 PRODUCTRANGE:...................................................................................................................47 2.30 Market growth and market size(HMSI)..................................................................................50 2.31Strategy of rivals VsHMSI.......................................................................................................51 2.32 Strategy ofHMSI.....................................................................................................................53 2.34 Strategy adopted by TVS & Bajaj for increasingsales and countering growth of HMSI...........53 2.35 Review of
  • 57. strategies adopted pg. 3.2 STATEMENT OFPROBLEM.........................................................................................................58 3.3HYPOTHESIS..............................................................................................................................59 3.4 AIMS ANDOBJECTIVES..............................................................................................................60 3.5 SAMPLINGTECHNIQUE.............................................................................................................60 3.6 SAMPLEUNIT............................................................................................................................60 3.7 SAMPLESIZE..............................................................................................................................60 3.8 STATISTICALDESIGN..................................................................................................................61 3.9 PRIMARYDATA..........................................................................................................................61 3.10 SECONDARYDATA...................................................................................................................62 3.11 LIMITATIONS OFSTUDY...........................................................................................................624.1 RESPONDENT‘SPROFILE................................................................................................................64 4.2SEX.............................................................................................................................................64 4.3 MARITALSTATUS.......................................................................................................................65 4.4OCCUPATION.............................................................................................................................66 4.5AGE............................................................................................................................................67 4.6INCOME.....................................................................................................................................695.1 DATAANALYSIS............................................................................................................................71 5.2 OWNERSHIP OF TWOWHEELER..............................................................................................71 5.3 MOST VIEWEDADS...................................................................................................................72 5.4 MOST INFLUENTIAL ADS.........................................................................................................735.5 BEST RECALLED
  • 58. ADS.................................................................................................................74 5.6 MOST COMMON SOURCE OFADS.............................................................................................755.7 SOURCE OF RELIABLE INFORMATION FOR PURCHASEDECISIONS............................................76 5.8 FACTORS WHICHMOTIVATE PURCHASINGDECISION...............................................................78 5.9PREFERRED PRICE RANGE(in000‘s)...........................................................................................795.10 RATING FOR VARIOUS FACTORS(1 LEAST PREFERREDAND 7 MOST PREFERRED)...................81 5.11 ISCROSSCHECKINGDONE? pg. 6.1 DEMAND AND GROWTHDRIVERS............................................................................................85 PersonalIncome...........................................................................................................................86 Demography andInspiration........................................................................................................86 PenetrationLevel.........................................................................................................................86 OtherFactors...............................................................................................................................86 7.1FINDINGS..................................................................................................................................87 8.1 HYPOTHESISTESTING................................................................................................................89 9.1RECOMMENDATIONS................................................................................................................91 Scaling Up ServiceCenters...........................................................................................................92 Focus on Easy CreditLending.......................................................................................................92 Investment in Research andDevelopment..................................................................................92Focus on Exports and GlobalMarket...........................................................................................9210.1LEARNINGS..............................................................................................................................93 11.1BIBLIOGRAPHY.........................................................................................................................95 pg. 8
  • 59. pg. 9Projectsformba.blogspot.com1.1 Introduction to Indian Two-wheelerSector:The Indian automotive industry consists of five segments:commercial vehicles; multi-utilityvehicles & passenger cars; two-wheelers; three-wheelers; and tractors. With 7,822,963 unitssold inthe domestic market and 753,591 units exported during the first ninemonths ofFY2007, the industry (excluding tractors) marked a growthof 43% over the pg. 10Projectsformba.blogspot.comprevious. The two-wheeler sales havewitnessed a spectacular growth trend since the midnineties.India isthe second largest producer and manufacturer of two-wheelers in theworld. Indiantwo-wheeler industry has got spectacular growth in thelast few years. Indian two-wheelerindustry had a small beginning inthe early 50s. The Automobile Products of India (API)startedmanufacturing scooters in the country.Bikes are a major segment ofIndian two wheeler industry, the other two being scootersandmopeds. Indian companies are among the largest two-wheelermanufacturers in the world.Hero Honda and Bajaj Auto are two ofthe Indian companies that top the list of worldcompaniesmanufacturing two-wheelers.The two-wheeler market was opened toforeign companies in the mid 1980s. The openness ofIndian marketto foreign companies lead to the arrival of new models of two-wheelers intoIndia. Easy availability of loans from the banks,relatively low rate of interest and thediscount of prices offered by thedealers and manufacturers lead to the increasing demand fortwo-wheeler vehicles in India. This lead to the strong growth of Indianautomobile industry.1.2 Evolution of Two-wheeler Industry in India:Two-wheeler segment is one of the most important components ofthe automobilesector that has undergone significant changes due toshift in policy environment. The two-wheeler industry has been inexistence in the country since 1955. It consists of pg. 11Projectsformba.blogspot.comviz. scooters, motorcycles and mopeds.In India there are some MNC‘s and Indian companydealing inautomobile sector. The main key players who are dealing in thissector are HeroHonda, Bajaj, Yamaha, Honda, and TVS. HeroHonda is the biggest player in this sector inIndia as well as in theworld and playing a very important role in two wheelerautomobilesector. Hero Honda, Bajaj and TVS are the Indiancompanies and Yamaha & Honda areinternational automobile brand.Bajaj is the first Indian two wheeler automobile company in themarket since1945 with the name M/s Bacharj trading corporationprivate limited. In 1959 M/s Bacharjtrading corporation privatelimited change its name as Bajaj Auto Ltd. Bajaj Auto obtainslicense
  • 60. from the Government of India to manufacture two- and three-wheelers vehicles in1959. Hero Honda Motors Limited wasestablished in 1984, as a joint venturebetween Indias Hero Group(worlds largest bicycle manufacturers) and Japans HondaMotorCompany. And created the worlds single largest two wheelercompany and also one of themost successful joint venturesworldwide. During the 80s, Hero Honda became the firstcompany inIndia. Over 19 million Hero Honda two wheelers running on Indianroads today. TVS Motors is the third largest company in the two-wheeler industry with amarket share of 16%. Infect, it is the onlyIndian company without a foreign collaboration inthe two-wheelerindustry. When the company opted out of the collaboration withSuzuki in2002, many believed that TVS was headed towardsextinction. But the company proved thedoomsayers wrong and cameout with a very successful `TVS Victor. TVS Motors Ltd.originallyincorporated in 1982 to manufacture two-wheelers in collaborationwith SuzukiMotors of Japan, TVS was one of the leaders in two-wheeler pg. Yamaha Motor Corporation is the automobile company of Japan(1953) which works in India since 1955and providing latest technology in India from lasttwo decades.Yamaha Motor India was incorporated in august 2001 as a 100%subsidiary ofYamaha motor corporation, Japan Honda motors ofJapan is not a new name in the two wheeler scenario in thecountry,they were in a tie up with the Firodias owned Kinetic group.However in the late 90sthey parted ways after problems arose overissues like introduction of new models,advertising expenditure,marketing strategies and other related issues. In the mid 80Hondamotors of Japan joined hands with the largest bicycle makerof India the Hero cycles to createHero Honda which in a couple ofdecades or so have gone on to become the single largestmotorcyclecompany in the world. Though Honda has come on its own on theIndian marketyet it will be providing technological support to HeroHonda for the next ten years. Thuspresenting a unique situation inwhich the company will be in direct competition with thecompanywhich it has been associated for nearly two decades. HondaMotorcycles andScooters India limited, a 100% subsidiary of Hondamotor company Japan eventually enteredthe Indian market withHonda Unicorn in pg. 13Projectsformba.blogspot.com1.3 Profile Change in Indian Two-Wheeler IndustryThe demand shift from scooters to motorcycles inthe 1990s was without parallel in anycomparable product category inIndia. This was mainly attributed to the change incustomerspreference towards fuel-efficient and aestheticallyappealing models, which scootermanufacturers failed to provide. The
  • 61. delayed launch of new, advanced scooter models, fear offour-strokescooters being prone to increased skidding risks and vibrations, andthe difficultyof maintenance also contributed to thisshift.Interestingly, the growth in the motorcycle segment was mainlydriven by the demand fromrural and semi-urban consumers. Anestimated 60% of the demand for motorcycles camefrom rural andsemi-urban customers. The rise in their disposable incomes onaccount ofgood monsoons in the 1990s provided the normallyconservative rural and semi-urbancustomers with extra money thatinduced them to experiment with new, pg. 14Projectsformba.blogspot.comShift from Scooter to MotorcycleScooter Motorcycle Moped Year Total In 000 Overall Growth No. %No. % No. % 1993 1,503.36 -6.40 709.73 47.2 379.06 25.2 414.5727.6 1994 1,770.22 17.75 840.17 47.5 472.58 26.7 457.47 25.8 19952,209.23 24.80 1,033.52 46.8 652.01 29.5 523.70 23.7 1996 2,660.0420.41 1,223.43 46.0 809.53 30.4 627.08 23.6 1997 2,963.49 11.411,301.05 43.9 978.68 33.0 683.76 23.1 1998 3,042.85 2.68 1,262.7041.5 1,131.31 37.2 648.84 21.3 1999 3,403.43 11.85 1,325.87 39.01,395.66 41.0 681.90 20.0 2000 3,745.55 -0.80 901.88 24.0 2,156.0358.0 687.64 18.0Source: (SIAM). No. Number of Units (in000)Advanced technology, larger wheelbase, higher groundclearance and the ability to ride onbad roads with less effort and lessdanger of skidding and decreased maintenance cost werethe otherfactors that encouraged customers to choose motorbikes over othertwo-wheelers.1.4 Key Earnings DriversBelow are the key factors,which strongly affect the auto industry: -Government policy impacton petrol prices: Petrol prices determine the running cost oftwo/threewheelers expressed in Rupees per kilometer.Petrol prices are thehighest in India as GOI subsidizes kerosene and diesel. But withtherecent change in GOI policy to reduce the subsidy, the prices ofpetrol will remain constant atthe current prices. This will have apositive effect on purchases of two/three wheelers.Improvement indisposable income: With the increase in salary levels, due to entryofmultinationals following liberalization process and fifth paycommission, the disposableincome has improved exponentially overthe years. This will have multiplier effect ondemand for consumerdurables including two-wheelers.Changes in prices of second-handcars: The second hand car prices of small cars havecome downsharply in the recent past. This will shift the demand from higher-end two-wheelers to cars and affect the demand for two-wheelersnegatively. A further drop pg. 15Projectsformba.blogspot.comsecond-hand car prices will lead topressure on the two-wheeler majors who plan to releasehigher-endscooters and motorcycles.Implementation of mass transport system:
  • 62. Many states have planned to implement masstransport systems instate capitals in the future. This will have negative impact ondemand fortwo-wheelers in the long run. But taking into account thedelays involved in implementationof such large infrastructureprojects the demand to be affected only five to seven years downtheline.Availability of credit for vehicle purchase: The availability andcost of finance affects thedemand for two- and three-wheelers as thetrend for increased credit purchases for consumerdurables haveincreased over the years. Therefore, any change with respect to anyof thesetwo parameters as a result of change in RBI policy has to beclosely watched to assess thedemand for two- and pg. 2.1 pg. 17Projectsformba.blogspot.com2.2 Hero Honda Motors Limited HeroHonda Motors Limited was established in 1984, as a joint venturebetweenIndias Hero Group (worlds largest bicycle manufacturers)and Japans Honda MotorCompany. In 1985 production began withthe launch of its first motorcycle, the CD100,which gave 80 km tothe liter. In 1987 the engine plant was started and in 1989 theCompanyproduced its 3,00,000th motorcycle. In 2001 Hero Hondamanufactured its 50,00,000thmotorbike. Hero Honda has areputation of being the most fuel-efficient and the worldssinglelargest two wheeler Company. Shri Brijmohan Lall Munjal is thechairman andmanaging director of this Company. As early as in1960‘s very few Indian bicycle manufacturers were interestedinexports. However, the hero groups foray into the overseas marketsin 1963 pioneered Indianexports in the bicycle segment. It was moreprompted essentially by the need to remainattuned to the globalmarketplace. While initial exports were restricted to Africa andthemiddle east, today more than 50% of the exports from HeroCycles Ltd. Meet the demands ofsophisticated markets in Europeand America. This is primarily because of appropriateproductdevelopment and excellent quality that hero offers.. Hero Honda hasgrown like no other company in the auto business. Severaltimes inthe path, savvy observers have insisted that it has grown just too bigand that nocompany its size can continue to show growth rates. ButHero Honda has ignored that opinionand continued growing at theplace it has set many years ago. Hero Honda today faces morecompetitor than it has ever in the history. Nowthat is the undisputedtwo wheeler Numero Uno in the country. Every single twowheelermanufacturer in India if looking market share away from it.More over for the first time thereare so many four- strokechallengers in the market. And Hero Hondas best selling productsareageing.2.3 Corporate pg. 18
  • 63. The joint venture between Indias HeroGroup and Honda Motor Company, Japan hasnot only created theworlds single largest two wheeler company but also one of themostsuccessful joint ventures worldwide. During the 80s, HeroHonda became the first company in India to prove that it waspossibleto drive a vehicle without polluting the roads. The companyintroduced newgeneration motorcycles that set industry benchmarksfor fuel thrift and low emission. Alegendary Fill it - Shut it - Forgetit campaign captured the imagination of commuters acrossIndia, andHero Honda sold millions of bikes purely on the commitment ofincreased mileage Over 19 million Hero Honda two wheelers treadIndian roads today. These are almostas many as the number ofpeople in Finland, Ireland and Sweden put together! Hero Honda hasconsistently grown at double digits since inception; and today,everysecond motorcycle sold in the country is a Hero Honda. Every30 seconds, someone in Indiabuys Hero Hondas top -sellingmotorcycle – Splendor. This festive season, the company soldhalf amillion two wheelers in a single month—a feat unparalleled inglobal automotivehistory. Hero Honda bikes currently roll out fromtwo globally benchmarked manufacturingfacilities based atDharuhera and Gurgaon in Haryana. These plants together arecapable ofchurning out 3.9 million bikes per year. A third state of theart manufacturing facility atHardwar in Uttranchal will soon becommissioned to cope with sustained customer demand. HeroHondas extensive sales and service network now spans over 3000customertouch points. These comprise a mix of dealerships, serviceand spare points, spare partsstockiest and authorized representativesof dealers located across different geographies.Hero Honda values itsrelationship with customers. Its unique CRM initiative - HeroHondaPassport Program, one of the largest programs of this kind inthe world, has over 3 millionmembers on its roster. The program hasnot only helped Hero Honda pg. 19Projectsformba.blogspot.comcustomers and deliver value at differentprice points, but has also created a loyal communityof brandambassadors. Having reached an unassailable pole position in theIndian two wheeler market, HeroHonda is constantly workingtowards consolidating its position in the market place. Thecompanybelieves that changing demographic profile of India, increasingurbanization and theempowerment of rural India will add millions ofnew families to the economic mainstream.This would provide thegrowth ballast that would sustain Hero Honda in the years tocome.As Brijmohan Lall Munjal, the Chairman, Hero Honda Motorssuccinctly points out, "Wepioneered India‘s motorcycle industry,and its our responsibility now to take the industry tothe next level.Well do all it takes to reach there.2.4 Mission statement: Hero
  • 64. Honda‘s mission is to strive for synergy between technology,systems and humanresources, to produce products and services thatmeet the quality, performance and priceaspirations of its customers.At the same time maintain the highest standards of ethics andsocialresponsibilities. This mission is what drives Hero Honda to newheights in excellence and helps theorganization forge a unique andmutually beneficial relationship with all its stake holders.2.5 HEROHONDAS pg. 20 Spare parts are pg. 21Its market share is reducing from last few years. They have biggap between cubic capacities of its products. Not fit for rulerIndia. Suppose to be very sophisticated. The company hasclarified about its intention of setting a third plant in addition to itsexisting two plants. The company has embarked upon a green fieldexpansion plan and has earmarked Rs 2 bn for the same. It should benoted that the company has a strong cash flow position; it generatedRs 9 bn from operation in FY04 and is virtually a debt freecompany.WEEKNESS: Debt equity ratio is only 0.1. Bestcustomer preference. It gives better service for customers. It hasa good brand image. It has the highest share in automobile sector. Better sale service. Huge sale network (3500 Dealers). HeroHonda gives 80 Km/Liter Avg. Hero Honda introduced Firststroke bike in the Indian market. Projectsformba.blogspot.comHero Honda is a world leader because of its excellent manpower,provenmanagement, extensive dealer network, efficient supply chainand world-class products withcutting edge technology from HondaMotor Company, Japan. The teamwork andcommitment aremanifested in the highest level of customer satisfaction, and this goesa longway towards reinforcing its leadership status2.6 S.W.O.TANALYSIS:STRENGTHS: Decreasing market share.2.7 HERO HONDA‘S pg. 22 The cost of theproduct is very high in comparison to other companies. Mainthreats to Hero Honda are their competitors like:- o Bajaj Auto Ltd. oTVS motors Ltd. o Yamaha Motors India. o Honda motorcycle andscooter India. As government polices are amended againstpollution in metro cities, Hero Honda being 4 stroke bikemanufacture have great opportunities to explore its new innovationsand technologies.THREATS: They have big opportunities inheavy bike segments. There is large no. of young consumers in themarket. Company has to focus on them. They should go in newsegments of bikes. Hero Hondas the first manufacture to launcheco friendly bikes with 4-stroke engines. They have attained a
  • 65. stronger good will and popularity in the industry and the consumers. Prompts transparency Enables relationship buildings. Is a caringorganization? Providing learning environment. Is self-reliant.Provide fearless, enjoyable working environment. Is striving forexcellence. Is a boundary less organization? Is a responsiveorganization? Respect for Human Beings. & Is performance oriented?2.8Product range of pg. 23 Is creativitypromoting. • HeroHonda Pleasure Hero HondaPleasure Manufacturer Hero Honda motorcycle Ltd. Production2005 -present Price Rs. 37990 Engine 102 cc, 7bhp@ 7000 rpm,torque 0.78 kg- m @5000 rpm Motorcycles • CD Dawn • CD Deluxe• Splendour + • Splendour NXG • Passion pro • Passion plus • SuperSplendour • Glamour • Glamour pg. • Achiever CD Dawn • CBZ XTREME• HUNK • Karizma • Karizma ZMR Features of a few bikes fromabove mentioned list from HERO HONDA are as follows.. CDDawn Manufacturer Hero Honda motorcycle Ltd. Production 2003-present Price Rs. 37990 Engine 97.2 cc, 7.7 ps@ 7500 rpm,torque0.77 kg -m @6000 rpm CD Deluxe CD Deluxe ManufacturerHero Honda motorcycle Ltd. Production 2007-present Price Rs.40,000 Engine 97.2 cc, 7.7 ps@ 7500 rpm, torque0.77 kg -m pg. Splendor + Splendor + ManufacturerHero Honda motorcycle Ltd. Production 2003-present Price Rs.40,400 Engine 97.2 cc, 7.7 ps@ 8000 rpm, torque7.95 N-m @5000rpm Hunk Karizma ZMR Hunk Manufacturer Hero Hondamotorcycle Ltd. Production 2007-present Price Rs. 63,000 Engine150 cc, 14.4 ps@ 8500 rpm, Manufacturer torque12.8 N-m @6500rpm Hero Honda motorcycle Ltd. Production 2009-present Price Rs.91, Engine 223 cc, 17.6bhp@ 7000rpm, pg. 26 torque18.35 N-m @6000 • Karizma ZMR2.9 BAJAJ auto ltdSince 1986, there is a technical tie-up of Bajaj Auto Ltd. withKawasaki HeavyIndustries of Japan to manufacture state-of-art rangeof latest two-wheelers in India. The JVhas already given the Indianmarket the KB series, 4S and 4S Champion, Boxer, theCaliberseries, and Wind125 Kawasaki Heavy Industries is a Fortune
  • 66. 500 company with a turnover of USD 10billion (Rs. 45,840 crore). Ithas crafted new technologies for more than hundred years.Thetechnologies of KHI have redefined space systems, aircrafts, jetengines, ships, locomotive,energy plants, automation system,construction machinery, and of course high reliability pg. KHI has given the world its legendaryseries of 600-1200cc Ninja and 1600 Vulcanbikes. Straight from itsdesign boards, the Kawasaki Bajaj Eliminator, Indias first realcruiserbike, redefines the pleasure of "biking" in looks as well asperformance.2.10 Corporate Profile Inspiring Confidence, thetagline, has build up confidence, through excitementengineering, notonly to domestic consumers but also internationally. Established justeightdecades back in 1926 by Jamnalal Bajaj, the company has beenvested with Indias largestexporter of two and three wheelers,196,710 units in 2004-05, a great 26 per cent jump overthe previousyear. Bajaj Auto Ltd. sales have increased by approximately 21 percent in the year2004-05, which exceeds Rs 65.4 billion, a record inthe history of the company. The grossoperating profit stands at Rs.9.3 billion, again a record. The profits after tax of the BAL arecloseto Rs. 7.7 billion, and the pre-tax return on operating capital is at animpressive 80 percent. The strength of the company is its qualityproducts, excellence in engineering anddesign, and its ability todelight the customers. The Pulsar, introduced in November 2004,iscontinually dominating the premium segment of the motorcyclemarket, helping to maintainthe market superiority. Discover DTSi,one more successful bike on Indian roads, is in thevalue segment ofthe motorcycle market. It incorporates a high degree of power withfuelefficiency of a 100 cc motorcycle. BAL is committed toprevention of pollution, continual improvement ofenvironmentperformance and compliance with all environmentallegislation and regulations. pg. 28Projectsformba.blogspot.combelieve in providing the customer valuefor money and keep an special eye upon quality,safety, productivity,cost and delivery. Extensive R Product design and developmentcapabilities. Highly experienced management. 2.11 BAJAJAUTO‘S MISSION: We at Bajaj Auto continue to firmly believe inproviding the customer Value formoney, for years through ourproducts and services. This we shall maintain and improve, In ourdecision making, quality, safety and service will be given asmuchconsideration as productivity, cost and delivery. Quality shallbe built into every aspect of our work life and businessoperations.Quality improvements and customer satisfaction shall bethe responsibility of everyemployee.2.12 SWOT AnalysisLets
  • 67. analyze the position of Bajaj in the current market set-up, evaluatingits strengths,weaknesses, threats and opportunitiesavailable.Strengths & High performance products across pg. 29 Widespreaddistribution network. D focus. The competition catches-up any new innovation in pg. 30 Growing world demandfor entry-level motorcycles especially in emerging marketsThreatsThe growing gearless trendy scooters and scooterette market.More maturity and movement towards higher-end motorcycles.Untapped market above 180 cc in motorcycles. Double-digitgrowth in two-wheeler market. Not a globally recognizable brand(unlike the JV partner Kawasaki)Opportunities Not a global playerin spite of huge volumes. Still has no established brand to matchHero Hondas Splendor in commuter segment. Hasnt employed theexcess cash for long. High economies of scope.WeaknessesHigh economies of scale. Great financial support network (Forfinancing the automobile) High export to domestic sales ratio. Margins getting squeezed from both the directions (Price as well asCost)2.13 The Inevitable ChangeBajaj on internal analysis found thatit lacked –1. The technical expertise to deliver competitive goods.2.The design know-how.3. And the immediate inability to support theonslaught of competitors. All these forced Bajaj to look for aninternational partner who could bring intechnology and also offersome basic platforms to be manufactured and marketed inIndia.Kawasaki of Japan is a world-renowned manufacturer of highperformance bikes. Bajajentered into a strategic tie-up withKawasaki in late 1990s to enhance its product line andknowledgeup-gradation to support long-term strategies. This served the purposeof sustaining the market competition for a while. From 1996to 2000,Bajaj invested hugely in infrastructure while simultaneouslydeveloping productdesign and innovation capabilities, which is theprime reason behind the energetic Bajaj of21st century. Bajajintroduced a slew of products right from entry-level motorcycle tothehigh premium segment right from 2001 onwards, and since thenits raining success all theway for Bajaj.Projectsformba.blogspot.compg. 31 Threat of cheap imported motorcycles from China. Last quarter, Bajaj had impressiveperformance growing at a rate of 20%+ when thelargestmanufacturer grew at just 6%. This stands a testimony to the variousimportantstrategic decisions over the past decade.2.14 Product range
  • 68. of BajajMotorcycles: • PULSAR 135 LS • PULSAR 150 DTS-i •PULSAR 180 DTS-i • PULSAR 220 DTS-i • DISCOVER 135 pg. • DISCOVER DTS-i • PLATINA 125• PLATINA 100 • AVENGER 200 DTS-i • KAWAZAKI NINJA250RFeatures of a few bikes from above mentioned list from BAJAJare as follows.. Bajaj Pulsar 220 DTS-i PULSAR 220 DTS-i BajajDiscover DTS-i Manufacturer Bajaj Auto Production 2008-presentPrice Rs. 78,200 Engine 220 cc ,21.04 @ 8500 (Ps @ RPM) 19.12@ 7000 (Nm @ RPM) Manufacturer Bajaj Auto Production 2005-present Price pg. 33Engine 135 CC ,9.64kw (13.10 ps) @ 8500rpm,11.88 nm @ 6500rpm / 1.21 kgmProjectsformba.blogspot.comDISCOVER135 DTS-i Bajaj PlatinaPLATINA 125 cc Bajaj Avenger DTS-i Manufacturer Bajaj AutoProduction 2006-present Price Rs. 38621 Engine 125CC,8.5PS@7000rpm,10NM@4000rpm. Manufactur Bajaj Auto er Production2005-present Price Rs. 64,524AVENGER 200 DTS-i Engine 200cc,17.51 PS @ 8000 rpm 16.78 Nm @ pg. 34Projectsformba.blogspot.com2.15 Current SituationCurrentPerformance.C BAL is currently outperforming the industry growthrate in two-wheeler segment with32% growth in year 2004-05 v/sindustry growth of 19%.3 Market share in Motorcycles is improvingwith every passing year. It has also increasedfrom 28% in 2004-05 to31% in 2005-06.f Annual turnover for the year 2005-06 is Rs. 81.06billion v/s Rs. 63.23 billion a yearbefore - an increase of 28% whichis very healthy.b BAL has significant presence in all the three basicsegments - Price Segment, ValueSegment and Performance Segment- and has been showing increased sales in all thesegments overyears.Besides this, BAL is a market leader in two-wheeler exportsand it consists a great chunk ofthere overall revenues. Currently,BAL is selling over 1 lac motorcycles annually in SriLanka, further,they are commanding 50% market share in pg. 35Projectsformba.blogspot.com2.16 The Industry Analysis - FiveForces Analysis-BALExternal EnvironmentIndustry: Automobiles:Two WheelersSegments: Presence in all segmentsEntryBarriers:Entry barriers are high.E The market runs on higheconomies of scale and on high economies of scope.E The need fortechnical expertise is high.E Owning a strong distribution network isimportant and is very costly.All these make the barrier high enoughto be a deterrent for new entrants.Supplier Bargaining
  • 69. Power:Suppliers of auto components are fragmented and areextremely critical for this industry sincemost of the component workis outsourced. Proper supply chain management is a costly yetcriticalneed.Buyers Bargaining Power:Buyers in automobile market havemore choice to choose from and the increasingcompetition is drivingthe bargaining power of customers uphill. With more models tochoosefrom in almost all categories, the market forces haveempowered the buyers to a large extent.Industry Rivalry:Theindustry rivalry is extremely high with any product being matched ina few months bycompetitor. This instinct of the industry is primarilydriven by the technical capabilitiesacquired over years of gestationunder the technical collaboration with internationalplayers.Substitutes:There is no perfect substitute to this industry.Also, if there is any substitute to a two-wheeler,Bajaj has presence init. Cars, which again are a mode of transport, do never pg. 36Projectsformba.blogspot.comor come in consideration whileselecting a two-wheeler, cycles do never even compete withthe lowentry level moped for even this choice comes at a comparativelyhigher economicpotential.Summarizing the industry analysis, it canbe said that the two-wheeler market is attractive asit scores well onthree out of five categories2.17 Product & Advertising Strategies OFBALThe focus of BAL off late has been on providing the best of theclass models at competitiveprices. Most of the Bajaj models comeloaded with the latest features within the price bandacceptable by themarket. BAL has been the pioneer in stretching competition intoprovidinglatest features in the price segment by updating the lowprice bikes with the latest featureslike disk-brakes, anti-skidtechnology and dual suspension, etc.BAL adopted differentmarketing strategies for different models, few of them arediscussedbelow: -Kawasaki 4S - First attempt by bajaj to make amark in the motorcycle segment. The targetcustomer was the fatherin the family but the target audience of the commercial was the soninthe family. The time at which Kawasaki 4S was launched HeroHonda was the marketleader in fuel-efficient bikes and Yamaha inthe performance bikes.The commercial of Kawasaki 4S had thepunch line "Kyun Hero" means "now what hero"which reflected theaggressiveness in the marketing front by the company.Boxer - It tookthe reins from where the Kawasaki 4S left. Target was the ruralpopulationand the price sensitive customer. Boxer marketed as avalue for money bike with pg. 37Projectsformba.blogspot.commileage. Larger wheelbase, highground clearance and high mileage were the selling factorsand it wasin direct competition to Hero Honda Dawn and SuzukiMX100.Caliber - The focus for the Caliber 115 was youth. And
  • 70. though Bajaj made the bike lookbigger and feel more powerful thanits predecessor (characteristics that will attract theaverage, 25-plus,executive segment bike buyer), its approach towards advertising isevenmore radically different this time around. Bajaj gave themandate for the ad campaign toLowe, picking them from the cliqueof three agencies that do promos for the company (theother twobeing Leo Burnett and O&M). Going by the initial market response,the campaignwas clearly a hit in the 5-10 years age bracket. So, theteaser campaign and the emphasis onthe 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 Hondas CBZmodel in 150cc plus segment. The campaign beared innovativepunch line of "Definitely Male" positioningPulsar to be a masculine-looking model with an appeal to the performance sensitivecustomers.The Pulsar went one step ahead of Hero Hondas CBZ and launched atwinvariant of Pulsar with the 180 cc model. The model was a greatsuccess and has alreadycrossed 1 million mark in sales.Discover -The same DTSI technology of Pulsar extended to 125 cc Discoverwas a greatsuccess. With this, Bajaj could realize its success ridingon the back of technologicalinnovation rather than the joint ventureway followed by competitors to gain market share.2.18 Strategies &ImplementationFMCG Business ModelBAL now is taking a leaf outof the FMCG business model to take the company togreaterheights.Bajaj has kicked off a project to completelyrestructure the companys retail network andcreate multiple pg. 38Projectsformba.blogspot.comOver the next few months, thecompany will set-up separate sales channels for every segmentof itsbusiness and consumers. Bajaj Autos entire product portfolio, fromthe entry-level tothe premium, is being sold by the same dealers. Therestructuring will involve separate dealernetworks catering to theurban and rural markets as well as its three-wheeler andpremiumbikes segments.Bajaj Auto also plans to set-up anindependent network of dealers for the rural areas. Theneeds offinancing, selling, distribution and even after-sales service arecompletely differentin the rural areas and do not makes sense for citydealers to control this. The company alsoplans to set-up exclusivedealerships for its three-wheeler products instead of having themsoldthrough an estimated 300 of its existing dealers.2.19 Other StrategicIssuesCash is strength: Bajaj Auto has been sitting on a cash pile forover five years now. Over thenext couple of years, competition in thetwo-wheeler market is set to intensify. TVS Motorsand Hero Hondaare on a product expansion binge. To fight this battle and retain itshard-earned market share in the motorcycle segment, Bajaj Auto willneed its cash muscle. A lookat its own story over the past five years
  • 71. provides valuable insight.Delisting worry: What is worrying is thatthere is an idea to delist the investment company(also an indirectindication that it would be listed initially). This would be closing thevalve ofequitable ownership distribution.There is a hint of a buybackof shares of the investment company as this is the only way it canbedelisted. The company would not be short of cash to put throughsuch a buyback.Factors such as low valuation, low trading interestand the need to provide shareholders maybe cited as plausiblereasons for the buyback.Stake for Kawasaki: Bajaj Autos attempt tovest the surplus cash in a separate companymay be a prelude tooffering a stake to Kawasaki of Japan in the equity of theautomobilecompany. The latter has been playing an increasinglyactive role in Bajajs recent models, andits brand name is also morevisible in Bajaj bikes than in the past.Projectsformba.blogspot.compg. 39Projectsformba.blogspot.comBetter value proposition: Shareholderinterests may be better served if the cash is retained topursue growthin a tough market. This would also obviate the need to fork-out fancysums asstamp duty to the government for the de-merger. Acombination of a large one-time dividendand a regular buybackprogram through the tender route may offer better value. Astrategicstake for Kawasaki would only positively influence thestocks valuation.2.20 Strategies for the Overseas MarketsBajaj Autolooks at external markets primarily with three strategies: -1) Amarket where all BAL need to do is distribute through CKD or CBUroutes.2) Markets where BAL need to create new products.3)Markets where BAL need to enter with existing products andprobably with a gooddistributor or a production facility or a jointventure.Earlier, most of the products that Bajaj exported werescooters and some motorcycles.However, in its target markets, likein India, the shift was towards motorcycles. With theexpansion inBajajs own range to almost five-six platforms of motorcycles, it hada betteroffering to export, also the reason for its stronger showing.For the last fiscal, 60 per cent ofits exports were two-wheelers andthe rest three-wheelers. Of the two-wheeler exports, closeto 90 percent were motorcycles.Bajaj has identified certain key markets,which hold potential. Its first overseas officeestablished at the JebelAli free trade zone has been the focal point for exports tomiddleAfrica and the Saharan nations. Egypt and Iran also continueto be strong markets for Bajaj.The other market, which would be afocus area, is South America, where the company feels itis fairlywell represented in most countries, except in Brazil, the largestmarket. The pg. 40Projectsformba.blogspot.comrecently participated in a large autoexhibition in Brazil and found good consumer acceptanceto products
  • 72. like Pulsar and Wind 125.The other focus area is the ASEANnations, which constitute the third biggest consumer oftwo-wheelers.The biggest among them is Indonesia, where Bajaj distributors arelooking tointroduce eco-friendly four-stroke auto rickshaws. Buttwo-wheeler market requires greatdeal of effort from BAL.Everybody is there with Honda leading the show. TheresSuzuki,Kawasaki and some Korean and Chinese models. BALshould look at the right product mixfor two-wheelers. Bajajs Pulsarmodel has taken off well there. It also wants to develop anew step-through model for the Indonesian market, but for now it will create abase therewith its motorcycle models.Bajaj has also made abeginning by selling bikes in the Philippines branded in the name ofitstechnical partner, Kawasaki. The two signed an MoU in February.Kawasaki, a large multi-product conglomerate, only makes high-endbikes and does not have sub-200cc models.Kawasaki is marketingthe new model, Wind 125, developed by both companies, inthePhilippines. The Bajaj-developed models, Caliber and Byk, whichis a fuel-efficient bike, arealso being distributed by Kawasaki. Thisis a good beginning strategically for Kawasaki toevince interest inBajaj products for markets which can still buy less than 150 cc.2.21R&DBajaj Auto has a huge, extensive and very well-equippedResearch and Development winggeared to meet two criticalorganizational goals: development of exciting new productsthatanticipate and meet emerging customer needs in India andabroad, and development of eco-friendly automobiletechnologies.While the manpower strength of the R&D represents across-section of in-depth design andengineering expertise, thecompany has also been investing heavily in the latest,sophisticatedtechnologies to scale down product developmentlifecycles and enhance testing capabilitiesBajaj Auto R&D alsoenjoys access to the specialized expertise of leadinginternationaldesign and automobile engineering companies workingin specific pg. 41Projectsformba.blogspot.comBased on their own brand ofglobalization, they have built their distribution network over60countries worldwide and multiplied the exports from 1% of totalturnover in Fiscal 1989-90to over 5% in Fiscal 1996-97.Thecountries where their products have a large market are USA,Argentina, Colombia, Peru,Bangladesh, Sri Lanka, Italy, Sweden,Germany, Iran and Egypt. Bajaj leads Colombia with65% of thescooter market, in Uruguay with 30% of the motorcycle market andin Bangladeshwith 95% of the three-wheeler market.Several newmodels are being developed specifically for global markets and withthese thecompany will progressively endeavor to establish itspresence in Europe too.2.22 The FutureAlthough the avalanche ofmotorcycles offered Indian consumers a wide variety of models
  • 73. tochoose from, it also resulted in increased pressure on thecompanies to concentrate on cost-cuts, technology enhancementsand up-gradations and styling. Their margins came underpressure asmarketing costs escalated.The companies were forced to reduceprices and offer discounts to survive the competition.Moreover,analysts were skeptical about the segments ability to maintain thegrowth rate inthe years to come. One of the major assumptionsunderlying the motorcycles rush was that ifthe market wasconsiderably large and was growing at a constant pace, there wasroom for aprofitable existence for all brands.In 2001, there were over30 motorcycle brands in the market. However, with the topfivebrands accounting for more than 60% of the market, only 40% ofthe market was availablefor all other new brands put together.Despite the launch of more vehicles, the survivalprospects of manyof the individual brands were deemed to be pg. 42Projectsformba.blogspot.comFurther, the growth in the motorcyclesegment was dependant on continuing favorable marketconditions.Analysts claimed that to sustain this growth rate, the segment wouldhave tocompletely cannibalize the market for scooters and aconsiderable part of the market forscooters and mopeds.Consideringthe fast growing scooter segment, with high demand from femalecustomers,followed by the moderately growing moped segment andthe restructuring in the scootersegment with major national andforeign players reinforcing their presence, it was unlikelythat theentire growth in the two-wheeler sector would be due tomotorcycles.Analysts also commented that as the two-wheelerindustry had grown steadily for eight years,stages in the product lifecycle would apply to the field sooner, rather than later and thedeclinestage would invariably come some day. There was littledifferentiation between thebrands being launched apart from stylingas most companies had introduced their four-strokevehicles.With thefailure of the joint ventures, the expected introduction of cheaperChinese brands,stringent emission norms and threat from majorinternational players, the survival ofindigenous brands lookeduncertain. Constrained with the ruling price levels in themarketplace, limited infrastructure and lack of technologicalinnovations when compared to theirforeign counterparts, whether theIndian companies would succeed in generating the kind ofvolumesneeded to sustain in the competitive motorcycle market, remains tobe seen.2.23 New Strategies adopted by BajajMajor emphasis to beon new product launches.Have a new scooter market underdevelopment – will be launched early 2010.Plan to launch a three-wheeled motorcycle, to cater to a niche segment.Bajaj expectsstronger growth in the first quarter of FY10 powered by thecontinuing success of theXCD 135 DTS-Si as also the launch of
  • 74. product upgrades off the Pulsar platformAs a result of the recentstake hike by Bajaj Auto, KTM now has Rajiv Bajaj on its board andthecooperation agreement between the two companies coversproduct development, technology, vendorsourcing and distribution.Existing Products New Launchs pg. 43Projectsformba.blogspot.comBajaj Bajaj Kristal DTSi XCD 135DTSi Pulsar XCD Sprint Discover 135 DTSi Discover 100 DTS-SiPlatina 100, 125 DTSi Kawasaki Ninja 250R2.24 HONDAMOTORCYCLE & SCOOTER INDIA (Pvt.) Ltd.(HMSI) Honda isthe worlds largest manufacturer of 2-wheelers. Its symbol, theWings,represents the companys unwavering dedication in achievinggoals that are unique and aboveall, conforming to internationalnorms. These wings are now in India as Honda Motorcycle &ScooterIndia Pvt. Ltd. (HMSI), a wholly owned subsidiary of Honda MotorCompany Ltd.,Japan. These wings are here to initiate a change andmake a difference in the Indian 2-wheeler industry. Hondas dreamfor India is to not only manufacture 2-wheelers of globalquality, butalso meet and exceed the expectations of Indian customers withoutstanding aftersales support.2.25 About Honda Motorcycle &Scooter India Pvt. Ltd.Official Name Honda Motorcycle & ScooterIndia Pvt. pg. 44Projectsformba.blogspot.comEstablished 20th Aug, 1999PlaceManesar, District Gurgaon, Haryana, IndiaInvestment Rs. 300CroreRepresentative Mr. Shinji Aoyama, President & CEOFactoryLocation Manesar, District Gurgaon, Haryana, IndiaProductionCapacity 10,000,00 Units per Year Hondas dream for India is to notonly manufacture 2-wheelers of global quality; butalso meet andexceed the expectations of Indian customers with outstanding aftersalessupport. They aim to produce technologically superior, efficientand reasonably priced 2-wheelers, with Honda tested technology,backed up with after sales service of Hondas globalstandard.2.26CORPORATE PROFILE Honda Motor Co., Ltd., operates under thebasic principles of "Respect for theIndividual" and "The ThreeJoys"-commonly expressed as The Joy of Buying, The Joy ofSellingand The Joy of Creating. Respect for the Individual" reflects ourdesire to respect theunique character and ability of each individualperson, trusting each other as equal partners inorder to do our best inevery situation. Based on this foundation of Respect for theIndividual,"The Three Joys" expresses our belief and desire that eachperson working in, or coming intocontact with our company, directlyor through our products, should share a sense of joythrough thatexperience. In line with these basic principles, since its establishmentin 1948, Honda Motor Co.,Ltd., has remained on the leading edge by
  • 75. creating new value by providing products pg. 45 HMSI is the subsidiary company of Honda Motors Ltd. Which is thelargest company in the proposed sectorProjectsformba.blogspot.compg. 46 Honda having high tech engines Honda is the firstcompany who introduced the technology of central shock absorptionin India Honda have a big share of market in scootreats segmentAffordable price Reliable brand name Projectsformba.blogspot.comhighest quality at a reasonable price,for worldwide customer satisfaction. In addition, theCompany hasconducted its activities with a commitment to protecting theenvironment andenhancing safety in a mobile society. The Companyhas grown to become the worlds largest motorcycle manufacturerandone of the leading automakers. With a global network of 454*subsidiaries and affiliatesaccounted for under the equity method,Honda develops, manufactures and markets a widevariety ofproducts ranging from small general-purpose engines and scooters tospecialtysports cars, to earn the Company an outstanding reputationfrom customers worldwide.2.27 Mission Statement Maintaining aglobal viewpoint, we are dedicated to supplying products of thehighestquality at a reasonable price for worldwide customersatisfaction.2.28 SWOT AnalysisStrength Threat of cheap imported motorcycles and components fromChina2.29 PRODUCT RANGE: SCOOTERS: • pg. 47 There is high competitionin the market Honda can be use brand image of HeroHondaThreats More maturity and movement towards higher-endmotorcycles Untapped market above 180 cc in motorcycles.Increase in product range Maintenance cost is veryhighOpportunity Low product range Spares parts are not easilyavailable Market share very less as compare to there competitorLess number of service center • ACTIVA • AVIATORMOTORCYCLES: • CB TWISTER • SHINE • CBF STUNNER •UNICORN • CBF STUNNER PGM FI • CB1000R •CBR1000RRFeatures of a few bikes from above mentioned list fromHONDA are as follows.. Activa ACTIVA Manufacturer HondaMotors Ltd. Production 2004-present Price Rs. 40661 Engine 4-stroke, air cooled,7 bhp @ 7000 rpm, pg. 48
  • 76. CB Twister CB TWISTERManufacturer Honda Motors Ltd. Production 2010 ONWARDSPrice Rs 48,000 Engine 110cc,9bhp@8000 CBF STUNNER PGMFI rpm,9Nm@6000rpm CBF STUNNER Manufacturer HondaMotors Ltd. PGM FI Production 2010 ONWARDS Price Rs48, pg. 49 Engine125cc,11.6bhp@8000 rpm, UNICORNUNICORN ManufacturerHonda Motors Ltd. Production 2005-present Price Rs 63,000 Engine150cc,13.3bhp@8000 rpm,12.8N- m@5500rpm.2.30 Market growthand market size (HMSI) pg. 50Projectsformba.blogspot.comThe automobile industry has seen anoverwhelming growth in liberal India. Almost everybigmanufacturer has made its presence felt in the country. After theforeign direct investmentregulations were removed, manymanufacturers saw India as a potential market. Most of theautomanufacturers were in collaboration with the Indian companies after‘91 till ‘99, whenthe rules were changed; some of them still enjoythat. With many foreign manufacturerseyeing India as the market,the giants were no exception and most of them are alreadyhavingtheir manufacturing or assembling facilities in India. Hondawas into the Indian two-wheelerindustry from 1983, when it joinedhands with Hero to start Hero Honda and with Kinetic tostart KineticHonda. Honda broke the ties with Kinetic in ‘99 and set up its own100%subsidiary called Honda Motorcycle and Scooter India (HMSI)Pvt. Ltd.HMSI laid its foundation stone in Manesar, Haryana in thesame year and also signed anagreement with Hero that it won‘tmanufacture motorcycles for the next five years i.e. till2004 as HeroHonda was not into the scooter segment at that time. This gaveHonda a licenseto manufacture scooters at will and it did that byrolling out its first scooter, Activa in 2001and followed it with Dio inthe same year. Honda now enjoys a large chunk of market shareinthe scooter segment with Activa, Dio and now Aviator as itsproducts. Honda introducedits first motorcycle, Unicorn in 2004 inthe 150cc segment which was followed by Shine inthe 125ccsegment in 2006 followed by Stunner in the same segment in 2008.All thesemotorcycles were highly appreciated and instant hits in thegrowing Indian market whichover these years was mainly dominatedby Hero Honda and Bajaj Auto Ltd.The main rivals HMSI iscountering are BAL, Hero Honda and TVS in themotorcyclesegment and TVS, Hero Honda and Mahindra Kinetic inthe scooter segment. HMSI is themarket leader in the scootersegment and is yet to have a major share in the motorcyclesegmenteven though it is growing at 32.24% on a monthly basis.The bikesegment has a market growth rate of 43% with HMSI having a share
  • 77. of 18% Thebiggest rival in this segment is HMSI‘s sister concernHero Honda with a share of 55%. Thescooter segment is having agrowth rate of 32.24% and HMSI having a market share of57.7%.The nearest rival in this segment is TVS motors with a share of18.7%.2.31 Strategy of rivals Vs HMSIIn 2007, out of every 100two-wheelers sold in the country - only 12 were scooters.Thatnumber went up to 16 in the past financial year and is projectedto zoom to almost 20 pg. 51Projectsformba.blogspot.comyear. There‘s more: the scooter marketgrew in double digits last fiscal, outperforming thetwo-wheelermarket, which grew 2.6 per cent in the same period. The golden daysof theearly 80s, when scooters had a 64 per cent market share, arestill far away. But the revivalsignals are strong.Scootermanufacturers said the 1.14 million-strong domestic market wasexpected to cross 2million units in the next four years. That explainsthe entry of a host of newer players in thesegment, such asMahindra-Kinetic and Yamaha. Sensing competition, theestablishedplayers — Honda, TVS Motors, Bajaj Auto, Hero Hondaand Suzuki — have hit the drawingboard once again, to pull outflashy, high-powered and un-geared scooters.Scooter productionstands at roughly 20% of the overall two-wheeler productionYearTwo Wheelers Production (Bikes + scooters) 2002-03 5,076,2212003-04 5,622,741 2004-05 6,529,829 2005-06 7,608,697 2006-078,466,666 2007-08 8,026,681 2008-098,418,626( has 55 per cent market share, followed by TVSMotors with 19 per cent and HeroHonda with 14.5 per cent and Bajajmanaging a 11% market share. Sales Growth / Decline % ProjectedMarket share % * Growth% HMSI 55 32.24% 18% TVS 19 14% 7Bajaj 11 -12% NA* based on year on year comparison with sales inJuly 2008* Comparison of pg. 52Projectsformba.blogspot. The Company has entered the bikes marketsince 2004. This has led to a certain degree of cannibalism betweenHero Honda The company would focus on gearless scooters in thefuture and with the launch of the new Activa, HMSI is looking at atotal of 18% growth in its two-wheeler sales in the next fiscal, 2009-10. Honda to exit geared scooter segment in India, the Japanesetwo-wheeler major Honda will exit the geared scooter market inIndia and phase out its 150 cc model — Eterno — as the companyplans to focus on the gearless segment. com2.32 Strategy of HMSI& Honda remains committed to its promise to deliver superiortechnology and performance, even though HMSI products are pricedrelatively higher than other companies in the market.2.34 Strategyadopted by TVS HMSI has a one-month waiting period for its new
  • 78. Activa (110 cc); six months before, it was just 10 days. Encouraged,it is ramping up its monthly production to 60,000 from 40,000earlier. HMSI. However, Honda motor company stands to gain outof either company‘s success. & Bajaj for increasing sales andcounteringgrowth of HMSIMost companies currently producescooters in the 100-125cc range that are targeted atcustomers whowant higher mileage and are ready to compromise on power.Generally, anentry-level bike (100cc) is more powerful andeconomical than a gearless scooter.To counter this, companies areworking on scooter models that generate higher powerwithoutundermining the fuel economy. The result will be a productthat matches the performance ofmotorcycles while being morecomfortable, agile and easy on the pocket.They also aim atdeveloping E- pg. 53 The country‘s second largest bike maker, Bajaj Auto, is alsodeveloping a completely new, un-geared, scooter. To be launched in2011, it is aimed at taking on the products of HMSI. This productwill be high on power output, like the company‘s current bike range,but will not sacrifice on fuel economy.2.35 Review of strategiesadopted by HondaThe first bike launched by Honda, Unicorn waslaunched in the existing 150cc segmentwhich was mainly dominatedby Pulsar series and later TVS Apache also chipped in withinthecompetition. Same was the case with Shine, its second bike in the125cc segment. Afterthis, Honda slightly moved away fromconvention by adopting a new strategy ofsegmentation by creating asegment within two existing segments. In 2008, Honda launcheda125cc Stunner CBF intended for not the conventional 125ccsegment but just between 125ccand 150cc segment. Honda did notcompromise on the feature rich and technologically soundproductand not on the price either. The price of this bike was 50-60thousand, thusovercoming the price void between the 150cc and125cc bikes. The competitors sell their125cc bikes at 40-50 thousandwhile the price of 150cc segment starts somewhere around60thousand. This pricing strategy of Honda has paid well and nowthey are planning topenetrate the gap between the existing 100cc and125cc segments by launching a new featureladen and technologicallysound 100cc bike. Again Honda has clearly announced that thepriceof this bike won‘t be in the conventional 100cc range but slightlymore than that. SBU Market Market Share Market Share RelativeQuadrant Growth Rate Of Nearest Market pg. 54 Chennai-based TVSMotors, makers of Scooty, are developing a premium un-gearedscooter that will be more powerful and superior on design andstyling. The company is learnt to have developed a new platform,
  • 79. much more powerful than the 90cc Scooty. Bikes 43 18 55 0.33 Question MarkScooters 32.24 57.7 18.7 3.08 RELATIVE MARKET SHARE STARQuestion Mark (Scooters) (Bikes) 10 CASH COW pg. pg. 3.1 RESEARCH DESIGN3.2STATEMENT OF PROBLEM One of the major problem is thenegative growth being faced by companies in the two wheelerindustry. The two wheeler industry has been shrinking continuously.From a peak of over 40% growth in 2002 it is currently facing agrowth of -12% in the second quarter of 2008. Exhibit shows therecent pg. The above exhibit shows the De-growth in the pg. 59Projectsformba.blogspot.comNull Hypothesis, H0 : There is anegative growth in the two wheeler industryAlternative Hypothesis,H1: There is no negative growth in the two wheeler industry.3.4AIMS AND OBJECTIVES • To study and compare the top threecompanies HERO HONDA,BAJAJ,& HMSI • To compare andanalyze the product strategies of these three companies. • To find outthe reasons for change in growth of two wheeler industry.3.5SAMPLING TECHNIQUENon-probability sampling techniqueConvenience Sampling was used for collecting datafrom theconsumers for the survey.3.6 SAMPLE UNIT Sample units arenothing but the respondents covered during the process of collectingdata for the purpose of research. The sampling units consisted ofpeople who own a two wheeler.3.7 pg. 60Projectsformba.blogspot.comThe sample size is the total numbercount of the number of total respondents covered for theresearchpurposes.Total sample size =100Male – 88Female- 123.8STATISTICAL DESIGN The data was collected and complied inMicrosoft Excel and is analyzed using graphs and pie charts.3.9PRIMARY DATA Primary data was collected through theadministration of questionnaires to the sample units and conducting a
  • 80. pilot study to ascertain the worth of the questionnaire. •Questionnaire Design • Questionnaire Administration • ScoringProcedure • Pilot pg. 61Projectsformba.blogspot.com3.10 SECONDARY DATA Secondarydata would be collected from internet, industry journals andmagazines. This information and the previous research papers willhelp in designing the questionnaires and various attributes on whichthe companies are to be assessed. The company dealers alsoprovided valuable information.3.11 LIMITATIONS OF STUDY •Owing to the huge population size (sampling universe) spanningthroughout the country, it becomes almost impossible to cover all theplaces in the given scope of study. • The results thus obtained arejust an overview of the areas and companies covered. • The datagathered and the results interpreted are what was done in a timeframe of 6 months and hence may not reveal the depth of thesituation. • For the ease of analysis, percentage of respondents usingthe products was considered as the market share of the particularproduct in that category. • This dissertation is confined on the basisof more secondary data collected only hence it is not very much areliable data for the pg. pg. 4.1 RESPONDENT‘S PROFILE4.2SEX TABLE 3: SEX OF RESPONDENTS SEX NUMBER OFPERCENTAGE OF RESPONDENTS RESPONDENTS(%) Male 8888 Female 12 pg. 88 males and 12 females were coveredduring the survey.Hence 88% of the respondents were males and therest 12% were females.4.3 MARITAL STATUS MARITALSTATUS OF RESPONDENTS MARITAL STATUS NUMBER OFPERCENTAGE OF RESPONDENTS RESPONDENTS(%)Unmarried 70 70 Married 30 pg. MARITAL STATUS MARRIED 30%SINGLE 70% Out of the total respondents ,70% were single,30%were married and separated factor was not taken into account.4.4OCCUPATION OCCUPATION OF RESPONDENTSOCCUPATION NUMBER OF PERCENTAGE OFRESPONDENTS RESPONDENTS STUDENTS 68 68 SELFEMPLOYED 20 20 WORKING 12 12Projectsformba.blogspot.compg. Among the 100 people surveyed ,68%were students,20% were self-employed and remaining 12% belonged
  • 81. to working class like office goers, clerks pg. 67Projectsformba.blogspot.comAGE GROUP NUMBER OFPERCENTAGE OF RESPONDENTS RESPONDENTS18-22 1010%22-25 60 60%25-30 20 20%>30 10 10% AGE 18 - 22 10% > 3010% 25 - 30 20% 22 - 25 60% Of the 100 respondents, 60%belonged to 22-25 age group,20% to 25 -30 group,10% to18-22group and the remaining 10% to more than 30 pg. 68Projectsformba.blogspot.com4.6 INCOME MONTHLY NUMBEROF PERCENTAGE OF INCOME(IN RESPONDENTSRESPONDENTS 000‘S)RS. <20 30 30% 20-30 55 55% 30-40 1010% >40 5 5% 30% of the total respondents earn less than Rs.20,000 per month,55% of the respondents earn Rs. 20,000-30,000per month,10% of the respondents earn Rs .30,000-40,000 per monthand 5% of respondents earn more than Rs. 40,000 pg. pg. 5.1 DATA ANALYSIS5.2OWNERSHIP OF TWO WHEELER YES 80% pg. ANALYSIS: 80% of the respondentsown a two wheeler and 20 % of them do not have one.INTERPRETATION: Since majority of my respondents are studentsfrom colleges, they own two wheelers for daily commutation. Eachone of them own different brands according to the taste andpreferences of the two wheelers available in the market. The mostcommon brands are Hero Honda, Bajaj, Honda.TVS etc.5.3 MOSTVIEWED ADSHERO HONDA 50%BAJAJ pg. MOST VIEWED ADS HEROHONDA, 50 50 45 BAJAJ, 40 40 35 30 25 20 15 HMSI, 10 10 5 0HERO HONDA HMSI BAJAJ ANALYSIS: The viewership rate ofads among respondents is highest for Hero Honda with 50%,thencomes Bajaj with 40% and Honda with 10%. INTERPRETATION:Hero Honda and Bajaj being the long term rivals compete each otherto capture the market share. Hence if one of them comes with aneffective ad, the other will surely try to better it. In case of Hondait‘s a late entry into the Indian market and it‘s growing.5.4 MOSTINFLUENTIAL ADS HERO HONDA 35% BAJAJ 55% pg. 73
  • 82. ANALYSIS: In terms of influence ofads on the respondents, Bajaj comes with 55% , then Hero Hondawith 35% and Honda 10%. INTERPRETATION: Bajaj comes withads that has more adrenalin rush specially targeting the youth andmajority of them get inspired by the same. Hero Honda mainlydepends on celebrities to influence the viewers. Honda mainlyfocuses on the international reputation of brand name they have builtfor themselves. 5.5 BEST pg. ANALYSIS: In terms of recall ,50%of respondents were for Bajaj stunt ad, then 35% were for HeroHonda KARIZMA ad with Hrithik roshan as brand ambassador.INTERPRETATION: Bajaj came with stunt ads so that it may attractthe youth,and they positions their bike mainly high performing,aggressive, reliable. Hero Honda comes with the fan base of itsbrand ambassador who very well connects with the features of thebike .Very few recalled Honda bike ads as they were verystereotyped ads.5.6 MOST COMMON SOURCE OF ADSTV18%NEWSPAPER/ pg. 75Projectsformba.blogspot.comBILLBOARDS 5%INTERNET7%ANALYSIS:Among the common source of ads, newspaper andmagazines are marked by 70% ofrespondents, TV by 18% ,Internetby 7% and Billboards by 5%.INTERPERTATION:Newspaper andmagazines comes with a lot of information related to bikes and it is amajorsource. Latest trend of internet penetration also brings in adson bikes ,mainly through socialnetworking sites, during onlinematches, events etc.5.7 SOURCE OF RELIABLE INFORMATIONFOR PURCHASEDECISIONS pg. INTERNET 65% AUTOMOTIVE10% MAGAZINES COMPANY 20% DEALERS ANALYSIS: Outof 100 respondents ,65% found internet as a good source of reliableinformation,then with company dealers 20%,automotive magazines10%,friends 5%. INTERPRETATION: The various web sites on thenet provide valuable information regarding the bikes. With theavailability of net, people can browse about any information pg. model before going to any dealer.Company dealers provide specific information and in depth about aparticular model. The rest is from friends and auto magazines.5.8FACTORS WHICH MOTIVATE PURCHASING DECISION.DISCOUNT RATE 30% EMI 45% RESALE VALUE 12%
  • 83. ALLOWANCES 8% OTHERS ANALYSIS: EMI is one of the majormotivating factor with 45% liking it,then comes discount rate30%,resale value 12%,allowances 8%,and others 3%INTERPRETATION: EMI comes with a great motivational factor inpurchasing a bike. It is less risky ,and affordable way of purchasing.Discount rate normally comes during festival seasons wheremaximum sales happen. Resale value has few effects on certainbranded bike purchases.5.9 PREFERRED PRICE RANGE(in 000‘s)30-40 5% 40-50 5% 50-60 13% 60-70 65% pg. >80 2% ANALYSIS: The mostpreferred price range is 60-70 with 65% going for this option.13%for 50-60, 10%for 70 to 80, 5% each for 30-40 & 40-50.and 2% formore than Rs.80,000. INTERPRETATION: Most of theperformance, value segment bikes falls in the 60-70 price category,and there is huge competition among the major players. Then thepreferred ones are high performance bikes in the >Rs. 70,000 andmedium performance and high efficient ones in the <Rs.60,000category pg. 80Projectsformba.blogspot.com5.10 RATING FOR VARIOUSFACTORS(1 LEAST PREFERRED AND7 MOSTPREFERRED) pg. ANALYSIS: In this the most preferredfactor is performance with 75% going for it. Then comes service andsupport and fuel efficiency with 90% and 70% in terms ofpreferences. This is followed by price and brand value of the bike.INTERPRETATION: Performance is one factor which most of thepeople specially youth look upon in a two wheeler. Also thecompanies have come upon with a segment of this pg. have developed bikes based on this.The customers also look into the after sales and support the companyoffer when going for a two wheeler. Hence the service offered is ofprime importance. The price is an important factor for mediumsegment people that is below Rs.60,000 as they try to balance priceas well as efficiency of two-wheeler. Brand value plays a major rolefor loyal customers for eg. A person buys only HONDA, because itsone of the internationally trusted brands.5.11 IS CROSSCHECKINGDONE? YES 20% NO pg. 83
  • 84. ANALYSIS: Only 20% say that theydo cross checking of what they see in the commercial,80% do not doit INTERPRETATION: Most of the viewers see the ads and getsome information regarding it with very few doing crosscheckingabout what really is behind the scenes.Projectsformba.blogspot.compg. 6.1 DEMAND AND pg. 85Projectsformba.blogspot.comThe following factors play a major rolein increasing the demand for two wheelers in India.Personal Income,demography and penetration level are key growth drivers in thetwowheeler industry.Personal IncomeDemand increases as theincome increases, only to be substituted later by the demand forfourwheelers. Income has been steadily growing in India and isprojected to stabilise at a growthrate of 9-12 percent range by2012.Demography and InspirationThe bigger the young and workingpopulation, the greater is its need for commutation. The ITand BPOrevolution has influenced this movement. This is a favourable factorsince Indianworkforce is young.Penetration LevelThe lower thepenetration levels in the market, the better the scope for futuredemand. As thepenetration of the rural market is significantly low, itis going to be a significant long termgrowth driver.OtherFactorsImprovement in infrastructure increases competition, whilesimultaneously improving thepublic transport. The average timeperiod taken to replace an existing bike with a newermodel hasdecreased from 7 years to 5 years, resulting in replacement pg. 7.1 FINDINGSThe major findingsduring the data collection and analysis time can be summed up pg. • Interest rates are one of the primereasons for the sharp fall in demand. Many banks have increasedinterest rates which make two wheelers costlier. • Difficulty inavailing loans, rising defaults, tightening of loan recovery laws andvarious other factors have dissuaded consumers from availing loansand led to further problems in credit lending. • Increasing oil priceshave deterred many lower middle class families from buying twowheelers. • Introduction of low priced cars will directly affect themarket. The family segment would want to gradually move from twowheelers to four wheelers. The major impact of this phenomenonwould be experienced in the 100-125 cc two wheelers whereas theperformance segment i.e. > 125cc will continue to grow strongly. •With the introduction of the Bharat-4 norms, it will be more
  • 85. challenging to meet these stringent norms whilst simultaneouslyoffering competitive prices. In spite of these factors, demand driversare present for the foreseeable future and are favourable for the twowheeler industry. However, to capture this growth, any player willhave to correctly position itself to appeal to pg. 8.1 HYPOTHESIS TESTINGNullHypothesis, H0 : There is a negative growth in the two wheelerindustryAlternative Hypothesis, H1: There is no negative growth inthe two wheeler pg. 89Projectsformba.blogspot.comPARAMETERS TO TESTHYPOTHESISSince the hypothesis is stated in absolute subjectiveterms, there was a requirement to convertthis subjectivity intoobjectivity to arrive at a stage for testing the hypothesis. Forperformingthis task, 7 product categories were selected and thecompanies were tried on the grounds of: • Availability of product •Number of customer complaints • Dealers satisfaction level • Areasof operation and design of distribution channels • Hold on the marketshare Hence the companies were tested on these basis and hence theresults were compiled according to the respective product categoriesitself.RESULT OF HYPOTHESIS TESTINGThe overall researchand analysis of the two wheeler companies across these 7 categoriesledto the following result: • Null hypothesis is accepted for theproduct categories of 100cc and 125cc segment as there is intensecompetition from fuel efficient small cars in India. • Null hypothesisdoes not hold true for product categories like135cc,150cc,180cc,220cc.Since the null hypothesis does not holdtrue in majority of the product categories and hencethe nullhypothesis is not valid and hence, NULL HYPOTHESIS IS NOTPROVED. InIndian markets for majority of the two wheeler productcategories, Foreign companies havestreamlined their operations anddistribution channels in a much more effective way ensuringhigheravailability of their goods in the market in pg. 9.1 RECOMMENDATIONSThefollowing recommendations pg. • The two wheeler companies shouldfocus on gearless scooters. The market share of gearless scooters isincreasing at a healthy rate. Bajaj is virtually absent in this range thatcaters to the needs of women and families. Presently Honda, HeroHonda and TVS are big players in this segment. • Entry into fourwheeler segment Bajaj has entered into a joint venture with Renault-Nissan in the development of a small car priced at $3000. This is a
  • 86. significant move because it directly competes with Tata NANO.Bajaj has also displayed its small car prototype in the recently heldauto expo. It promises double the mileage as compared to any car inthe economy segment and is also considering the option ofintroducing Diesel and LPG variants. The four wheeler segment willalso be able to hedge any risk that might arise because of the twowheeler industry and would profit from retaining consumersswitching from two wheelers. • Scaling Up Service CentersCompanies need to scale up its service centers both in numbers andin capacity. Keeping in line with its growth target for the next 5years, the service centers should not only cater to two wheelers butshould also be upgraded to cater to the needs of four wheelers thatcompanies plans to launch. • Focus on Easy Credit Lending •Investment in Research and Development • Focus on Exports andGlobal pg. 10.1 LEARNINGSI had some majorlearnings while working on this research project which can besummarizedas pg. • Dream High because that will helpyou to Achieve Big. • Systematic Planning is the essence for theproject. • Making realistic time frame and following them ismandatory. • Data Collection requires a lot of patience and followup. It requires meticulous research to select the right sample forresearch. • Secondary data collection is also an important task andone must be aware which source is completely authentic and reliable.• SMART
  • 87. A project report on measuring customer satisfaction level and sales promotion in yamaha —Document Transcript1. SUMMER TRAINING PROJECT REPORT ON“MEASURING CUSTOMER SATISFACTION LEVEL” AND “SALES PROMOTION”IN YAMAHA AT LAKHIMPUR and UNNAOSUBMITTED IN THE PARTIALFULFILLMENT FOR THE REQUIREMENT OF MBA DEGREE SUBMITTED TO:(2008-2010) SUBMITTED BY: DR.BIMAL AGGARWAL HEMRUDRA PRATAPSINGH (DIRECTOR) MBA- III SEM. ROLL NO. 0825070024 BBS INSTITUTE OFMANAGEMENT STUDIES PLOT NO. 33, KNOWLEDGE PARK-III GREATERNOIDA, UTTAR PRADESH Projectsformba.blogspot.com2. TO WHOMESOEVER IT MAY CONCERNThis isto certify that ………………………………., a student of Post Graduate DegreeinMBA, BBS Institute of Management Studies, Greater Noida has worked intheMARKETING DEPARTMENT, under the able guidance and supervisionof……………………………., in INDIA YAMAHA MOTORS Pvt. Ltd.The period forwhich he was on training was for 8 weeks, starting from …………………..ThisSummer Internship report has the requisite standard for the partial fulfillmentthePost Graduate Degree in Marketing. To the best of our knowledge no part of thisreporthas been reproduced from any other report and the contents are based onoriginalresearch. ACKNOWLEDGEMENT Projectsformba.blogspot.com3. Projectsformba.blogspot.comI express my sincere gratitude to my industry guide……………………….. INDIAYAMAHA MOTORS, for his able guidance, continuoussupport and cooperationthroughout my project, without which the present workwould not have been possible.I would also like to thank the entire team of INDIAYAMAHA MOTORS, for the constantsupport and help in the successful completionof my project.Also, I am thankful to my faculty guide ……………………. of myinstitute, for hiscontinued guidance and invaluable encouragement. Candidatedeclaration Projectsformba.blogspot.com4. Projectsformba.blogspot.comI hereby declare that the work which is beingpresented in theproject report entitled Measuring Customer Satisfaction levelandSales promotion in the partial fulfillment of the requirement forthe award ofMaster of Business Administration of BBS Instituteof Management Studies, GreaterNoida of Uttar PradeshTechnical University, Lucknow is record of my own work andwascarried for a period of two months under the guidanceof…………………………….. of commercial work of MarketingDepartment YamahaIndia Motors. TABLE OF CONTENTS Projectsformba.blogspot.com5. Chapter TopicNo.1.0 Industry Profile 1.0 IndustryProfile 1.1 Competitors Analysis 1.2 Company Profile 1.3 Swot Analysis 1.4 Swotfor Two wheeler Industry 1.5 Swot for India Yamaha motors 1.6 Recent Launches1.7 Future Launches2.0 Critical Review of Literature3.0 Hypotheses4.0 ExecutiveSummary5.0 Research Design 5.1 Data Source 5.2 Research Approach 5.3Objectives 5.4 Research Design 5.5 Sample Design 5.6 Scope of Study 5.7Limitations of the study6.0 Data Primary Data Secondary Data7.0 Findings &
  • 88. Analysis 6.1 Results of Customer Survey 6.2 Hypotheses TestsProjectsformba.blogspot.com6. Chapter 1.01.0 Industry Profile1.1 CompetitorsAnalysis1.2 Company Profile1.3 Swot Analysis1.4 Swot for Two wheelerIndustry1.5 Swot for India Yamaha motors1.6 Recent Launches1.7 FutureLaunches Projectsformba.blogspot.com7. Projectsformba.blogspot.com1.0 INDUSTRY PROFILEAUTOMOBILEINDUSTRY TILL DATEThe automobile industry is one of the biggest industries inthe world. Being a majorrevenue and job generating sector it drives the economiesof some of the superpowersof the world. In India the automobile industry has grownby leaps and bounds since theadvent of the liberalization era the automobileindustry and especially the two wheelersegment has grown by leaps andbounds.The liberalization has done away with primitive and prohibitive practices oflicensing andrestricted foreign investment have been done away with. The result ofwhich was theentry of foreign players into the Indian market. The two wheelersegment was largelydominated by Automobile Products of India (API) and Enfieldin the 50s. Later ontowards the end of the 50s Bajaj Autos began importing Vespascooters from Italiancompany Piaggio. In the following decades the automobileindustry in India was mainlydominated by scooters with API and later Bajajdominating the market. There were veryfew products and choices available as faras motorcycle is concerned and Enfield bulletand Rajdoot dominated themarket.The 80s saw the entry of Japanese companies in the Indian market with theopening upof the market to foreign companies. Hero Honda and TVS Suzuki arecompanies formedin this era of market reform. The market was still predominantlyscooter dominated andBajaj and LML were the leading brands producing theproducts at that time. Scooter wasviewed as a more family and utility friendlyvehicle than motorcycle and hence waspreferred. Projectsformba.blogspot.com8. Projectsformba.blogspot.comThe Japanese companies not only collaboratedwith Indian companies to produce thealready existing products but also brought innew technology as a result of which theever conquering 100cc bikes which wereextremely fuel efficient with 4 stroke engineswere launched in India. These provedto be highly successful as they provided a cheapand affordable means of personaltransport to all those who could not buy a car. Theflourishing middle class took agreat liking for these bikes and the bike sales in Indiabegan to grow exponentiallyyear on year leading to Hero Honda becoming the leader inthe two wheelerindustry in India and the largest producer of two wheelers in the world.The post 90sera was the era of liberalization and weakening of restrictive measures.Thegovernment went on an overdrive to support the industry and all FDI regulationsandlicensing was abolished. 100% FDI was allowed in the automobile industry andtheexcise duty was also considerably reduced to its current level of 12% on twowheelers.All these factors combined with the rising fuel prices, the increasingdispensableincomes of households, easy access to finance, etc. have led to twowheeler industrybecoming the backbone of the automobile industry in India.The twowheeler industry in India forms a major chunk of the automobiles produced inIndia.According to Society of Indian Automobile Manufacturers statistics for the year2008
  • 89. – 2009, two – wheelers comprise 76.49% of market share among thevehiclesproduced in India.The production share of two wheelers is quite similar tothe market share. The twowheeler industry comprises around 74% of the totalautomobiles produced in India. TheSIAM data for the year 2008-09 states that8,418,626 two wheelers were producedduring the year against a total of11,175,479vehicles produced during the year.SEGMENTATION OF TWOWHEELERA Two Wheeler Sector Sub-Segmenting in the three Segments. 1.Motorcycle 2. Scooter 3. Mopeds Projectsformba.blogspot.com9. Domestic Market Share 2008 – 09 CommercialVehicles 3.95% Total Passenger Vehicles 15.96% Total Two Wheelers 76.49%Three Wheelers 3.60%1.1.1 Domestic Market Share 2008-09Projectsformba.blogspot.com10. Projectsformba.blogspot.com1.1 The Domestic Market Share of Two wheelersin 2008-09PAST YEAR REPORTIn the past year the sales of the automobilesegment has taken a setback and the twowheeler segment has not proved to beany exception. The two wheeler segment hassuffered a setback of over 7% duringthe past fiscal year but there have been signs ofrecovery in the current year.Projectsformba.blogspot.com11. 1.2 Comparative Analysis of Domestic Sales ofAutomobiles 2008-09 1.3 Sales trend of automobiles for the last severalyearsProduction Trend Projectsformba.blogspot.com12. Projectsformba.blogspot.comIf we compare to the last year production of twowheelers it was around 8,026,681 out of10,853,930 but this year we have gotgrowth of 1.78%, this year production of twowheelers is around 8,418,626 out of11,175479 total automobile productions. 1.4 The Production trend of Automobilesfor several yearsThe total sale of two wheelers in India has touched a figure of 7.86million units byMarch, 2007, up 11.42% from the previous fiscal figures of 7.05million. Productionduring the period reached 8.63 million units.The production oftwo wheelers in India is expected to reach a staggering 17.85 millionunits by 2011-12, more than double of the current production level.The two-wheeler productioncapacity is to reach 22.31 million units in 2011-12 comparedwith 10.78 million in2006-07.The export of automobiles from India has been constantly growing andwith theslowdown in the domestic market, the major companies are focusing onexporting muchmore to increase their profit margins. Projectsformba.blogspot.com13. Projectsformba.blogspot.comGROWTH PROSPECTS AND KEY DRIVERS OFINDIAN TWO WHEELER INDUSTRYThe growth witnessed by the Indian twowheeler industry indicates the growing demandfor low cost personal transportationsolutions amongst the 300 million Indian middleclass consumers. Despite thisspectacular growth rate, the two wheeler penetration(number of two wheelers per1000 inhabitants) in India remains lower than other Asiancountries. This factprovides an opportunity for continued growth in the market. India hasthe lowestPenetration of two wheelers as compared to countries like Taiwan,Thailand,Malaysia, Vietnam, Indonesia and China. In the present scenario, growth
  • 90. in the twowheelers Industry will be driven by several factorsRise in India‟s YoungWorking PopulationWith the rising levels of per capita income of people, the Indiantwo wheeler marketoffers a huge potential for Growth. This growth is relevant in thelight of the fact that 70per cent of India‟s population is below the age of 35 Yearsand 150 million people will beadded to the working Population in the next fiveyears. The number of women in theurban work force is also increasing; this willlead to the Growth of gearless scooters.Rise of India‟s Rural Economy and Growthin Middle Income HouseholdsThe growth prospects of the Indian rural economyoffer a significant opportunity for themotorcycle industry in India. The penetration ofmotorcycles amongst rural households Projectsformba.blogspot.com14. Projectsformba.blogspot.comwith income levels greater than US$ 2,200 perannum has already increased to over 50per cent. The current target Segment fortwo wheelers, i.e., households belonging to theIncome category of US$ 2,200–12,000 is expected to grow at a CAGR of 10 per cent.Greater Affordability ofVehiclesThe growth in two-wheeler sales in India has been driven by an increase inaffordabilityof these vehicles. An analysis of the price trends indicates that priceshave more or lessstagnated in the past. This has been part of the marketingstrategy adopted by themanufacturers to gain volume, as well as conscious effortsadopted to bring down costs.The operating expenses of leading manufacturershave declined by around 15 per centin the last five years. With greater avenues offinancing, the customer‟s capacity to own atwo wheeler has improved.RapidProduct Introduction and Shorter Product Life CycleThe last five years havewitnessed a sharp increase in new product launches in the two-wheeler industry. Itis estimated that close to 50 new products have been launched bymanufacturersduring this period, filling up all price points and targeted at variousconsumersegments.Inadequate Public Transport Systems in most Urban AreasThe economicboom witnessed in the country and the increased migration to urbanareas haveincreased the traffic congestion in Indian cities and worsened theexistinginfrastructure bottlenecks. Inadequate urban planning has meant thattransport systemshave not kept pace with the economic boom and the growingurban population. This hasincreased the dependence on personal modes oftransport and the two wheelers markethas benefited from this infrastructuregap.FACTORS AFFECTING THE MARKETPost 1991, the Indian two-wheelerindustry comprising of motorcycles, scooters andscooterettes opened uptremendously. The Indian motorcycle industry has expanded ata 24% CAGR overthe last five years, It Captured almost 80% of the market primarily atthe cost of thescooter and Moped segment. The scooter segment though has witnesseda revivalwith the launch of scooterettes aimed at young women and adolescents.Projectsformba.blogspot.com15. Projectsformba.blogspot.comThe two wheeler market can be segmented intothree categories on the basis of price –Entry segment (<35000), Executive segment(between 35000 and 45000) Deluxe(between 45000 and 65000) and Premiumsegment (above 65000).Motorcycles are now sold as a passion, experience ratherthan a product. New productsare being introduced at a rapid pace and brands aregaining prominence. Thus there isan increased focus on the premium segmentwhich has an increased scope fordifferentiation.Purchasing Power is relatively high
  • 91. with buyers becoming more discriminating. Reliabilityand economy have becomemore of a hygiene factor. Buyers now demand two-wheelersthat fit their personalitythus increasing the scope for differentiation and branding.Provision of financingthrough EMI‟s has provided a means to satisfy the need ofpossess a convenientand stylish mode of transport in the form of a two wheeler. Thishas resulted inhigher growth in the 125-150cc segmentWith the introduction of Governmentpolicies such as reduction in excise duty from 16%to 12% and allowing for 100%FDI Barriers to entry has reduced. However, theinvestment required for setting uplarge distribution channels and service stations can bea major entry barrier.Another significant entry barrier is the brand building required.Thus, initially foreignplayers set up Joint Ventures with indigenous companies. Afterestablishing theirbrand they have launched their own line of products. E.g. Honda withHero Groupand Yamaha with Escorts.Threat from Substitutes such as the Tata 1 Lakh carlooms large over the two-wheelerindustry. For the first time, a car has beenpositioned at a price point that fills the vacuumbetween a motorcycle and a low-endcar such as the Maruti 800. Previously, the price ofeven a low end car (2.5 – 3Lakhs) was too high to attract the customers from the entryand executive twowheeler segment. Since brand loyalty is lower for these segments vis-à-vis thepremium segment, these segments may be threatened by the Tata car.Theirbuyers will consider the convenience and status associated with owning a car,which isreasonably priced and therefore a viable substitute.Rising CustomerExpectations Projectsformba.blogspot.com16. Projectsformba.blogspot.comThe growth witnessed by the Indian two wheelerindustry has attracted a number of newentrants to the market and it is expectedthat the Indian industry will become morecompetitive in the future. The excess ofproducts introduced in the past has also raisedcustomer expectations with respectto reliability, styling, performance and economy.Inflation is a big factor that mayplay a part in moving the loyalties and aspirations ofpeople away from the four tothe much cheaper and economical two wheeler segment.Moreover, the constantlyincreasing prices of oil and increasing interest rates on financeare not helping thecause either.Environmental Concerns are also quite big on the agenda these daysand do play a partin the preference of consumer‟s choices. The rising globaltemperatures along with dailysnippets in the national and international media aboutthe thinning of ozone andimminent environmental disaster have all contributed tothe making of a present dayenvironmentally conscious consumer.Environmentaland Safety ConcernsThe increasing demand for two wheelers will need to bemanaged to address issuesrelating to overcrowding of roads. Another problem isthe insufficient infrastructure forinspection to ensure adherence to emission norms.As the industry grows, it is importantto regulate the sale of used two wheelers in amore organised manner for which amechanism needs to be evolved. Unregulatedsale of two wheelers, especially in therural areas, are likely to create issues relatedto emissions and safety of vehicles.Creation of Distribution InfrastructureLeadingcompanies need to ensure that on one hand they build adequate infrastructureinterms of dealerships and servicing stations in the urban areas and on the otherensurethat their distribution infrastructure also reaches the rural areasCurrentCompetition has intensified thus requiring greater branding and marketing. Alsodueto the presence of relatively undifferentiated products, advertising and
  • 92. promotionshave gained importance. The product has moved from a commodity to abranded Projectsformba.blogspot.com17. Projectsformba.blogspot.comproduct. However, there is still tremendous growthpotential especially in the ruralmarkets due to the under developed roadinfrastructure for which motorcycles are highlysuitable. Segment wise marketshare… 25 23.5 Growth Rates of different segments Three 3.9% CVs 4.03% 20Wheeler 13.44% 4 year CAGR 14.3 14 14.2 15 11.3 Passenger 10 vehicles 5 0Two Wheeler Commercial Passenger Two wheelers Three total 78.63% VehiclesVehicles Segments wheelers Automobiles •The industry has not experienced muchchange in its structure over the last 6 years •Two- wheelers form the major share ofdomestic sales •Passenger vehicles lead the exports market(57.4%) •2 wheelersform the bulk of exports as well, but are losing share to Passenger vehicles •Thegrowth in the two wheeler market is driven by the motorcycle market and isexpected to grow at 14-15 % YOY` Projectsformba.blogspot.com18. The Key Players… Others, 5.8% Others, 5.73Yamaha, Honda Honda, 5.33 3.8% Motors, 8.5% Tata Motors,TVS Motors, 17.1917.7% Maruti, 50.37 Hero Honda, 39.8% Bajaj Auto, Hyundai, 19.17 24.4% Twowheeler Passenger vehicle Commercial TATA Motors, Ashok Leyland, SwarajMazda,Mahindra & Mahindra ,Force vehicles motors, Eicher Motors PassengerTATA Motors, Maruti Udyog, Honda Motors, Toyata, Skoda, Mahindra & vehicleMahindra, Daimler Chrysler, Hindustan Motors Two Wheeler Hero Honda, BajajAuto, Honda Motors, TVS Motors, Yamaha , Kinetic Motors Three Wheeler BajajAuto, Piaggio India1.1COMPETITORS ANALYSIS Projectsformba.blogspot.com19. Projectsformba.blogspot.com1. Bajaj Auto Ltd.Established in 1945 Bajaj AutoLtd was incorporated as a trading company. Till 1959,they imported scooters andthree-wheelers from Italy and sold them in India. Thecompany got a productionlicense in the year 1959 and fastened a technicalcollaboration with Italian PIAGGIOin 1960.Bajaj Auto Ltd. is one among Indias top ten companies in terms of marketcapitalizationand among the top five in terms of annual turnover.The companystarted producing scooters in the year 1961 and followed three-wheelersproductionin 1962. Its collaboration with Piaggio expired in 1971 and since then, theirscootersand three-wheelers are being sold with the brand name “BAJAJ”.MaharashtraScooters Ltd., a Company with 24% equity participation by the Companyand 27%participation from Maharashtra State Governments WesternMaharashtraDevelopment Corp. was formed in the year 1975 under the "Horizontaltransfer oftechnology" policy.The first production unit is located at Satara,Maharashtra. The unit continues to collectscooters from CKDs supplied by theCompany. These scooters are marketed throughthe Companys distribution networkand under the Companys brand name.In 1984, the second production plant was setup at Aurangabad, Maharashtra. This plantstarted scooter production in 1986,three-wheeler production in 1987 and scooterettesand motorcycle facilities werecommissioned in 1990 & 1991 respectively.Today, the company has become amarket leader with annual production in excess of1.35 million units which wasabout 4000 units in 1961. These days, Bajaj Auto Ltd. hasstarted offering productsin all segments (mopeds & scooterettes, scooters, motorcycles,three wheelers).
  • 93. TWO WHEELERS>> MOTORCYCLEBajaj Avenger 180 CCProjectsformba.blogspot.com20. Projectsformba.blogspot.comBajaj CT 100 99.27 CCBajaj Discover DTSi 135CCBajaj KB 125 123 CCBajaj Platina 99.27 CCBajaj Pulsar DTS-Fi 220 CC 220CCBajaj Pulsar DTSi 180 CC • Pulsar 180 DTS-i UG 150 CC • Pulsar 150 DTS-iUG 200 CC • Pulsar 200 Cc 220 CC • Pulsar 220 DTS-FiBajaj Wind 125 124.6CCBajaj XCD 125 CC>> SCOOTERSBajaj Bravo 145 CCBajaj Chetak 145.45CCBajaj Classic SL 145.45 CCBajaj Legend 150 CC>>SCOOTERETTES/MOPEDSBajaj Blade DTSi 100 CCBajaj Cagiva CRX 145CCBajaj Fusion 145 CCBajaj Kristal DTSi 100 CCBajaj M 80 Electronic 74.08CCBajaj Rave 74.08 CCBajaj Saffire 74.4 CCBajaj Spirit 100 CCBajaj Sunny 59.86CCBajaj Sunny Spice 59.86 CCBajaj Wave DTSi 109.7 CC AWAITEDMODELSSonic DTSi Motorcycle Projectsformba.blogspot.com21. Projectsformba.blogspot.com1.1.2 Models of BAJAJ2. Hero Honda MotorsLtd.Hero Honda Motors Ltd. is a result of the joint venture betweenIndias HeroGroup and Japanese Honda Motors Company inthe year 1983. This joint venturehas not only created theworlds single largest two wheeler company but also one ofthemost successful joint ventures worldwide. Hero Honda isglobally known of beingthe most fuel-efficient and the largestCBZ selling Indian Motorcycle Company. Thisis a relationship so harmonious that HeroHonda has managed to achieveindigenisation of over 95 percent, a Honda recordworldwide.The below chart showsthe golden years in the history of HERO HONDA :- 1985 CD-100 1989 SLEEK1991 CD-100 SS 1994 Splendor 1997 Street 1999 CBZ 2001 PASSION 2002DAWN, AMBITION CD-DAWN, SPLENDOR +, PASSION +, 2003 KARIZMASUPER-SPLENDOR, CD-DELUX, 2005 GLAMOUR, ACHIEVER 1.1.3 GoldenYears of HERO HONDAThe company is committed to provide the customer withexcellence. A rich backgroundof producing high value products at reasonableprices led the worlds largestmanufacturer of motorcycles to collaborate with theworlds largest bicycle manufacturer.During 80s, Hero Honda became the firstcompany in India to prove that it was possibleto drive a vehicle without polluting theroads. They company possess three Projectsformba.blogspot.com22. Projectsformba.blogspot.commanufacturing units based at Dharuhera, Gurgaonand Haridwar are capable to produce4.4 million units per year. They introducednew generation motorcycles that set industrybenchmarks for fuel thrift and lowemission.The unique features like fuel conservation, safety riding courses andmobile workshopshelped the group reach in the interiors of the country. Well-entrenched in the domesticmarket, Hero Honda Motors Ltd. turned its attentionoverseas, and exports have beensteadily on the rise.Over the years, the Companyhas received its share of accolades, including the NationalProductivity CouncilsAward (1990-91), and the Economic Times - Harvard BusinessSchool Associationof India Award, against 200 contenders. The gross sales of HeroHonda by Marchend2008 was 33, 371, 43 Crores. TWO WHEELERS >> MOTORCYCLES HeroHonda Achiever Hero Honda CD Dawn Hero Honda CD Deluxe Hero Honda CD100 Hero Honda CD 100 SS Hero Honda Glamour Hero Honda Splendor HeroHonda Glamour • Splendor + • Glamour Hero Honda Passion Plus • Super
  • 94. Splendor • Glamour - FI • Splendor NXG Hero Honda Sleek Hero Honda CBZ X-TREME Hero Honda Karizma Hero Honda Hunk >> SCOOTERETTES/MOPEDSHero Honda Pleasure Hero Ankur Hero Gizmo Hero Panther Hero Puch AutomaticHero Sakhti 3G Hero Stepmatic Hero Street Hero Winner Hero Stepmatic HeroPuch Automatic Hero Sakthi 3G Hero Winner Projectsformba.blogspot.com23. Projectsformba.blogspot.com1.1.4 Hero Honda Models3. Honda Motorcycles &Scooters India Private LimitedEstablished in 1999, the Honda Motorcycle & ScooterIndia Pvt. Ltd. (HMSI) is a whollyowned subsidiary of Honda Motor Company Ltd.,Japan and is located at Manesar,Haryana. The companys most well known brandis the Honda Activa that revolutionizedthe Indian scooterette market in terms ofdesign and features. The company exportsscooters to the European Union.HONDA MOTORCYCLESMODEL CAPACITYHonda Shine 125 CCHonda Unicorn149.1 CCHonda Stunner CBF 125 CCHonda CBF Stunner FI 124.7 CC HONDASCOOTERSMODEL CAPACITYHonda Eterno 147.7 CC HONDASCOOTERETTES/MOPEDSMODEL CAPACITYHonda Aviator 102 CCHondaActiva 102 CCHonda Dio 102 CC4. TVS MotorTVS Motor is a leading and trustedtwo wheeler companybegan with the vision of TVS Scooty the founder oftheSundaram Clayton Group, the late T.S. Srinivasan - todesign, develop andproduce an affordable moped for the Projectsformba.blogspot.com24. Projectsformba.blogspot.comIndian family. This vision was realized in 1980when TVS 50, Indias first two-seatermoped rolled out of the factory at Hosur inTamil Nadu, Southern India.The company has been known for its ruggedness andreliability. TVS 50 was successfuland it has smoothened the way for manysuccesses for TVS Suzuki even before itslaunch in the market. The TVS 50 XL isespecially designed for individuals who wanteconomy fused with sporty looks.Recently new XL Super with a 70 cc high-tech PowerPack is all set to redefine thecategory of mopeds in the country. The Suzuki Samuraiwas launched for the timeconscious urban commuter. The Max 100 R was engineeredfor those whodemanded strength and ruggedness. Along with them all, Suzuki Shogunwas forthose who wanted raw power.TVS Motor has continually worked on innovation ofthe motorcycle segment along withtwo wheeler range. The Suzuki Shaolin,developed by TVS Suzuki is Indias first 5-speed, 140 cc motorcycle. Anotherexample of the company success is TVS Scooty, a60 cc Scooterette which keepone step ahead of its time in India.TVS Motor has been coveted 2 IT awards, oneof them is bagging the SAP ACE 2008award for Customer Excellence and theother one is 2008 Symantec South AsiaVisionary Award. Along with this, it is thefirst company in the world to be honored withThe Deming Prize for Total QualityManagement. In September 2008, the company hasgot 19% growth for registeringtotal two wheeler sales of 137,246 units.The company is the third largest two-wheeler manufacturer in India and ranks among thetop ten globally. The companywas the first in India to launch 2-seater 50cc moped and100cc Indo-Japanesemotorcycles. At present TVS Apache, TVS Victor, TVS Scooty,TVS Centra andTVS Fiero are the popular bikes in Indian market.In all, team TVS has triumphedeach and every race and rally in the country from theroad to racetrack, with each ofthe TVS bikes being a winner. And each time the TeamTVS has won on the track
  • 95. or off it; our customers have secured a better product for theirpersonaltransportation.1.1.6 TVS models Projectsformba.blogspot.com25. TWO WHEELERS>> MOTORCYCLESSuzukiHayabusa 1300 Suzuki Intruder M1800R Suzuki GS 150RTVS Apache RTR FITVS Centra TVS Fiero • TVS Fiero F2 • TVS Fiero FXSuzuki Max 100 Suzuki Max100R Suzuki SamuraiSuzuki Shogun Suzuki Shaolin TVS FlameTVS Victor TVSStar • TVS Victor GLX • TVS Star • TVS Victor GX • TVS Star City • TVS VictorEdge>> SCOOTERETTES/MOPEDSTVS Scooty Streak TVS Scooty TVS XL •TVS Scooty ES • TVS XL Super • TVS Scooty Pep • TVS XL Super HD • TVS PepPlusTVS XL Super TVS XL Super HD Scooty Teenz ElectricTVS Apache RTR TVSSpectra DX/AX AWAITED MODELTVS Taurus Fiero F35. Royal Enfield MotorsLtd.Established in 1955, Royal Enfield was the brand of theEnfield Cycle Company.Royal Enfield is one the oldest Projectsformba.blogspot.com26. Projectsformba.blogspot.combike on the road. The company is well known forproducing motorcycles, but they alsoproduce bicycle, stationary engines,lawnmowers and rifle small parts for the RoyalSmall Arms Factory in Enfield. RoyalEnfield Motors Ltd. has its headquarter situated atThiruvottiyur, Chennai, TamilNadu, India.In 1990, Royal Enfield entered into a strategic alliance with the EicherGroup, and latermerged with it in 1994. The annual turnover of the company isRs.10 billion. The EicherGroup has a range of interests in the automotive industry,including small trucks,tractors, exports, automotive gears, managementconsultancy and cartography.The corporate philosophy of Royal Enfield Motors built around quality andunflinching loyalty to the customer, a few reasons why thelegendary Bullet is not just abike but a motorcycling icon. The ruggedness andreliability of the bike is endorsed bythe army, the police, the paramilitary forces andover 500 institutions which form part ofthe die-hard customer base of the Bullet,dubbed the "Rajagadi", or royal vehicle.The innovative ideas of the Royal Enfield -Eicher nexus are exhibited in the new line ofEnfield bikes and the globaltechnological tie-ups.Royal Enfield has existing technical tie-ups with :- CriterionEngineers, UK for a new 5 speed transmission system.- DB Designs, UK forstyling.- AVL, Austria for new engines.- FW Egli for high power engines for 535ccand 624cc.Royal Enfield Motors Ltd. operates out of 12 area offices, 16 depots,over 250 dealersand 150 authorized service centers in India. The company alsoexports its products toover 20 countries including Canada, France, Japan, USA,Germany and UK.1.1.7 Royal Enfield Model Projectsformba.blogspot.com27. TWO WHEELERS>> MOTORCYCLEBullet 350Bullet 500 Enfield DieselBullet Deluxe Bullet Electra Bullet Machismo • BulletElectra • Bullet Electra 5SBullet Machismo 500 Bullet Std 12V Lightning 500TaurusThunderbird Twin sparkAt the end we can say that all the above are giving a verytight competition to INDIAYAMAHA MOTORS in India. To overcome thesecompetitors YAMAHA is constantlydoing R & D about its product and market aswell.We can classify these competitors into following groups according to theirattributes andtheir competitive forces.
  • 96. 28. S PFULLY GROUP A EDIVERSIFIED C I HighMobility Barriers, Extensive A Distribution & Product L Diversification I S HighMobility Barriers, Time A & Investment required to T GROUP restore outdatedproducts, I B build cult image O GROUP C N GROUP D Low Mobility BarriersInvestmentSPECIALISED in Brand Promotion PROMOTIONAL ACTIVITIES HIGHLOW SWOT ANALYSIS GROUP PLAYERS ATTRIBUTES COMPETITIVEFORCES A Bajaj, Hero Honda Highly diversified - High buyer power Aggressive -High competitive rivalry promotion - High entry barriers B TVS Selectivelydiversified - Low entry barriers Aggressive - Narrow product lines imply Promotionthat aggressive promotions can eat into market share C Honda, YamahaSelectively diversified - High threat of substitution Moderate Promotion (Rs 1 lakhcar) - Low entry barriers D Royal Enfield Highly specialized - Low buyer power –high Low Promotion brand loyalty - Product diversification will imply risk of branddilution Projectsformba.blogspot.com29. Projectsformba.blogspot.com1.2 COMPANY PROFILEAbout India YamahaMotor Pvt. Ltd.Yamaha made its initial foray into India in 1985. Subsequently, itentered into a 50:50joint venture with the Escorts Group in 1996. However, inAugust 2001, Yamahaacquired its remaining stake as well, bringing the Indianoperations under its completecontrol as a 100% subsidiary of Yamaha Motor Co.,Ltd, Japan.India Yamaha Motor operates from its state-of-the-art-manufacturingunits at Faridabadin Haryana and Surajpur in Uttar Pradesh and producesmotorcycles both for domesticand export markets. With a strong workforce of 2000employees, India Yamaha Motor ishighly customer-driven and has a countrywidenetwork of over 400 dealers.The company pioneered the volume bike segment withthe launch of its 100 cc 2-strokemotorcycle RX 100. Since then, it has introducedan entire range of 2-stroke and 4-stroke bikes in India. Presently, its productportfolio includes Crux (100cc), Alba (106cc)and Gladiator (125cc).VISIONToestablish YAMAHA as the "exclusive & trusted brand" of customers by"creatingKando" (touching their hearts) - the first time and every time with worldclass products &services delivered by people having "passion forcustomers".MISSIONWe are committed to:Be the Exclusive & Trusted Brandrenowned for marketing and manufacturing ofYAMAHA products, focusing onserving our customer where we can build long termrelationships by raising theirlifestyle through performance excellence, proactive design& innovative technology.Our innovative solutions will always exceed the changingneeds of our customersand provide value added vehicles.Build the Winning Team with capabilities forsuccess, thriving in a climate for action anddelivering results. Our employees arethe most valuable assets and we intend to develop Projectsformba.blogspot.com30. Projectsformba.blogspot.comthem to achieve international level ofprofessionalism with progressive careerdevelopment. As a good corporate citizen,we will conduct our business ethically andsocially in a responsible manner withconcerns for the environment.Grow through continuously innovating our businessprocesses for creating value andknowledge across our customers thereby earningthe loyalty of our partners & increasingour stakeholder value.CORECOMPETENCIESCustomer #1We put customers first in everything we do. We takedecisions keeping the customer inmind.Challenging SpiritWe strive for excellence
  • 97. in everything we do and in the quality of goods & services weprovide. We workhard to achieve what we commit & achieve results faster than ourcompetitors andwe never give up.Team-workWe work cohesively with our colleagues as a multi-cultural team built on trust, respect,understanding & mutual co-operation.Everyones contribution is equally important forour success.Frank & FairOrganizationWe are honest, sincere, open minded, fair & transparent in ourdealings. We activelylisten to others and participate in healthy & frank discussionsto achieve theorganizations goals.OVERVIEWFOUNDED: July 1, 1955Projectsformba.blogspot.com31. Projectsformba.blogspot.comCAPITAL: 48,302 million yen (as of March 31,2008)PRESIDENT: Takashi KajikawaEMPLOYEES: 46,850 (as of December 31,2007)PARENT: 9,019 (as of December 31, 2007)SALES: 1,756,707 million yen(from Jan 1, 2007 to Dec 31, 2007)PARENT: 799,209 million yen (from Jan 1, 2007to Dec 31, 2007)SALES PROFILESales (%) by product category(consolidated)Sales (%) by region (consolidated)MAJOR PRODUCTS&SERVICES: • Manufacture and sales of motorcycles, scooters, electro-hybridbicycles, boats, sail boats, Water Vehicles, pools, utility boats, fishing boats,outboard motors, diesel engines, 4-wheel ATVs, side-by-side vehicles, racing karts,golf cars, multi-purpose engines, generators, water pumps, snowmobiles, small-sized snow throwers, automotive engines, intelligent machinery, industrial-useremote control helicopters, electrical power units for wheelchairs, helmets. •Biotechnological production, processing and sales of agricultural and marineproducts and microorganisms. • Import and sales of various types of products,development of tourist businesses and management of leisure, recreationalfacilities and related services. Projectsformba.blogspot.com32. Projectsformba.blogspot.comHEADQUARTERS: 2500 Shingai, Iwata-shi,Shizuoka-ken, JapanCORPORATE PHILOSOPHYFor society, for the world…Yamaha works to realizeour corporate mission of creating KandoYamaha Motoris a company that has worked ever since its founding to build productsdefined bythe concepts of “high-quality and high-performance” and “light weightandcompactness” as we have continued to develop new technologies in the areasof smallengine technology and FRP processing technology as well as control andcomponenttechnologies.It can also be said that our corporate history has taken apath where “people” are thefundamental element and our product creation andother corporate activities havealways been aimed at touching people‟s hearts. Ourgoal has always been to provideproducts that empower each and every customerand make their lives more fulfilling byoffering greater speed, greater mobility andgreater potential.Said in another way, our aim is to bring people greater joy,happiness and create Kando*in their lives. As a company that makes the world itsfield and offers products for theland, the water, the snowfields and the sky, YamahaMotor strives to be a company that“offers new excitement and a more fulfilling lifefor people all over the world” and to useour ingenuity and passion to realizepeoples‟ dreams and always be the ones they lookto for “the next Kando.”
  • 98. 33. Projectsformba.blogspot.comWhat is Kando?Kando is a Japanese word for thesimultaneous feeling of deep satisfaction and intenseexcitement that peopleexperience when they encounter something of exceptional value.1.3 SWOTANALYSIS Projectsformba.blogspot.com34. Projectsformba.blogspot.comA scan of the internal and external environment isan important part of the strategicplanning process. Environmental factors internal tothe firm usually can be classified asstrengths (S) or weaknesses (W), and thoseexternal to the firm can be classified asopportunities (O) or threats (T). Such ananalysis of the strategic environment is referredto as a SWOT analysis.The SWOTanalysis provides information that is helpful in matching the firms resourcesandcapabilities to the competitive environment in which it operates. As such, itisinstrumental in strategy formulation and selection. The following diagram showshow aSWOT analysis fits into an environmental scan: SWOT Analysis FrameworkEnvironmental Scan / Internal Analysis External Analysis / / Strengths WeaknessesOpportunities Threats | SWOT Matrix Projectsformba.blogspot.com35. Projectsformba.blogspot.com1.4 SWOT ANALYSIS FOR THE TWO WHEELERINDUSTRY Strength • Established brands, Strong Brand Name Weaknesses • Fuelefficient • Style statement • Extremely price sensitive • Convenient in heavy traffic •Short PLC • Cheap and affordable • High R and D costs • Easy and cheap financeavailability • Patents • Good reputation among customers Threats Opportunities •The Rs.1 Lakh car • Growing premium segment • Cut throat competition •Increasing dispensable income • Increasing number of players in the •Environmental concerns market • Exports increasing • Rising raw material costs •Very strong demand in the 100cc. • Increasing rates of interest on segmentdominated by limited finance players. Projectsformba.blogspot.com36. Projectsformba.blogspot.com1.5 SWOT ANALYSIS FOR INDIA YAMAHAMOTORS Strength • Size and scale of parent company. Weaknesses • EffectiveAdvertising Capability • Small showrooms. • Committed and dedicated staff. • Notmuch emphasis on aggressive • High emphasis on R and D. selling. • Experience inthe market. • Weak product diversity. • Established brand. • Established marketchannel. • Power, Speed & Acceleration Opportunities Threats • Growing premiumsegment. • Cut throat competition • Increasing number of players in the • Globalexpansion into the Caribbean & Central America. market • Expansion of targetmarket (include • Rising raw material costs women). • Increasing rates of intereston • Increasing dispensable income. finance • 1st mover advantage.Projectsformba.blogspot.com37. Projectsformba.blogspot.com1.6 RECENT LAUNCHESYAMAHA FZ-SYamahaFZ-S 150cc, a recently launched bike by the industry giant Yamaha. After thegrandsuccess of FZ-16 Yamaha has finally launched its modified version (FZ-S) inIndia.This fabulous bike is equipped with all the necessary features one may think of.Itstands ahead in style and performance not only in its segment but beyond. Thisbike isbest suited for those who want elegance and power in one. It is designedandengineered with the capacity for active and aggressive enjoyment of around-town streetriding and styling, bringing a sense of pride for the owner of the bike. It
  • 99. is especiallydesigned to satiate riders desire for style and fashion. It is popularlyreferred as the“Stylish Macho Street Fighter” (Lord of the Streets).The primaryfeatures of Yamaha FZ-S include: • European international design • Stainless steelbody • Aerodynamic muscular design • High torque rate • Carbon pattern meterconsole • Latest graphics Projectsformba.blogspot.com38. • Disk brakes • Electric start starting system •Electronic fuel injection systemYAMAHA YZF R15This is the latest offering from theYamaha stable. The YZF R15 is the first truly sportsbike launched in India. Thelooks and design have been done keeping the bigger R1 inmind and hence theresemblance.The bike is priced at Rs.97,500 (ex-showroom) across India. It boastsof the first liquidcooled 4 valve engine in the two wheeler category which gives itbetter performance andpower. It is a 150cc bike having enough power to bringchills to the rider when he revsup the accelerator.BAJAJ PULSAR DTS FI 220CCBajaj auto has upgraded the Pulsar family with the launch of its high-end bikePulsarDTS-Fi 220 cc. This advanced variant of popular Pulsar combines newfeatures andadvanced technology. This all new version of Pulsar is priced at Rs.70,000 (ex-showroom Delhi).The 2009 edition of Bajaj Pulsar comes without fuelinjection technology but yet it willproduce more power at 21PS. The new BajajPulsar DTS – Fi 220 cc will reach the topspeed of more than 140 kmph. This twowheeler from Indias second largest two-wheeler Projectsformba.blogspot.com39. Projectsformba.blogspot.commanufacturer comes with single cylinder 4 strokeair cooled engine. This motorcycle hasa maximum power of 21.04 @ 8500rpm andmaximum torque of 19.12@7500 rpm.Bajaj Pulsar DTS-Fi 220cc will be available inall contemporary black themes as well ascan be availed in 4 different colors. Therecently launched Bajaj Pulsar DTS Fi-220 ccreflects a major difference from otherPulsar bikes launched by the automaker. Thischange is the downgrading of Pulsarmodel from Fuel Injection to carburetion.The all new Bajaj Pulsar DTS-Fi 220cc isloaded with features like engine oil cooler, splitseats, clip-on handle bar, auto chokeand fuel & battery charge indicators. This newversion of Pulsar makes the use oftemperature based ignition mapping. This kind ofmapping helps to optimize theignition timing in order to achieve good start ability,outstanding torque as well asquick warm up.The different features to look out for in Bajaj Pulsar DTS Fi includerear and front discbrakes. In fact, this is the first bike in India that comes with bothtypes of brakes. Sincethis motorcycle is designed to offer a thrilling ridingexperience it is also packed withvaried safety features for smooth running.According to the reviews of this advancedversion of Pulsar, this bike in India is sureto give competition to motorcycles of otherbrands. Projectsformba.blogspot.com40. Projectsformba.blogspot.comHONDA CBF STUNNER FIGeared with PGM-FItechnology, Honda CBF Stunner FI has made its way in India. Thenew version ofCBF Stunner sports bike from Honda Motorcycle and scootersIndia Pvt. Ltd.(HMSI) was launched and targeted for the youth in the country. Thissports bikefrom Honda Motorcycles is priced at around Rs. 66,200 (ex-showroom,Bangalore)and Rs. 64,630 (ex-showroom, Delhi).
  • 100. 41. Projectsformba.blogspot.comAn ultimate desire for every youth, Honda CBFStunner PGM FI comes equipped withsuperior technology and stunningperformance. Powered with a 4-stroke, air cooled OHCsingle cylinder engine, thistwo wheeler is offered with digital ignition. The new HondaCBF Stunner FI isbelieved to develop 11bhp at 8000 rpm and 11 nm torque at 6500rpm. Themotorbike re-defines style with amazing features like a stepped-up seat, halffairing,front and rear tubeless tires, alloy wheels for a comfortable ridingexperience.Honda CBF Stunner PGM FI 125 cc gives a top speed of 65kmph in 5.2seconds. Theeco- consciousness of the company HMSI, that is the wholly-ownedtwo-wheelersubsidiary of Japan-based Honda motor Company, is also evident fromthe PGM-FItechnology used in this sports bike. The PGM-Fi (Programmed FuelInjection) technologyof the two wheeler would keep emission level as low as 1/10 ofBS II Norm.The all new CBF Stunner PGM-FI has maintenance free battery andviscous air filter thatpromises less maintenance. Cumulated with PGM-FItechnology, this version of HondaStunner is believed to reach out to the youngstersand give them a heart racingexperience.Key Highlights:- • PGM-FI (ProgrammedFuel Injection) Technology • 125cc Air-Cooled Four-Stroke Self-Start Engine • DualTone Styling • Sporty Half-Chain Case • Bank Angle Sensor • Premium 3-DEmblem • Handle Weight • Premium Key • Stepped-up Seat • Half Fairing • Frontand Rear Tubeless Tires • Alloy Wheels Projectsformba.blogspot.com42. Projectsformba.blogspot.comTHUNDERBIRD TWINSPARKLaunched in year2008, Thunderbird Twinspark is one of the most stylish bike intendedfor those whowant and wish to be on top of the world. It is the first model that leadsRoyal Enfieldrevolutionary Unit Construction Engine.The Royal Enfield Thunderbird Twinspark isthe perfect example of unfolding mix of oldand new. Its 346 cc engine, 4 strokesingle cylinder air-cooled engine delivers maximumpower of 19.8 bhp @ 5250 rpmcapacity ensuring its smooth performance and constantvacuum (CV) carburetorassure its simple start. Delighting customers, this bike isabsolute comfort statementfor the passenger as well as rider. This bike is like a must-have for every rider andit is hard to beat in terms of pure riding pleasure and visualdelight.SpecialFeatures:Incorporated with all latest and advanced features, this bike includes: •Ergonomically designed high density foam seats • Rear gas filled shock absorber •Heat shield on silencer • Bigger CV carburetor BS-29 • Electric starterProjectsformba.blogspot.com43. • Electronic flasher • Multi focal reflector • 280mmdisc-front brake and 150mm drum-rear brake • Engine – Single cylinder, 4 Stroke,OHV, Dual spark ignition engine, aircooled • Power and Torque - 19.8 bhp @ 5250rpm/28 Nm @ 4000 rpm • Fuel tank capacity – 15.5±1LitersSUZUKI HAYABUSA1300Price range: Rs 1,248k to 1,252kSuzuki Hayabusa 1300 is the world fastestproduction bike, the ultimate choice andpreference of all bike lovers.Features:Somespecial characteristics of Suzuki Hayabusa 1300 are : Projectsformba.blogspot.com44. • Steering damper • Engine mode indicator •Vertically stacked headlight • LED taillight • Radial mount TOKICO front brakecaliperColors:Some special characteristics of Suzuki Hayabusa 1300 are : • Solidblack/ Metallic majestic gold • Pearl nebular black/ Metallic phantom
  • 101. graySpecifications: • Engine capacity - 1340 cm2 (cc) • Fuel Tank - 21.0 litres (5.5US gallons) • Type - 4-stroke, 4-cylinder, liquid-cooled, DOHC • Compression ratio -12.5:1SUZUKI GS 150RPrice range: Rs 57k to 62kAlso known for its attractiveappeal, Suzuki GS 150R is styled with inspiration fromSuzuki international superbike GSX-R. Equipped with engine balancer technology, thisbike is designed with ahigh acceleration performance in low to mid range speed, i.e.very important for citydriving. Projectsformba.blogspot.com45. Projectsformba.blogspot.comColors: • Candy max orange • Pearl nebular blackgray • Metallic flint grey • Candy dark greenish blueFeatures:Equipped with certainunique features like : • 150cc engine with new design • Digital speedometer withdual modes • Majestic and stronger fuel tank • Integrated rear turn signal • Rearsuspension with separate reservoir tankSpecifications: • Curb mass - 149 kgs •Type - Four-stroke, Air-cooled,SOHC • Displacement - 149.5 cm3 (cc) • Max Power- 13.8bhp@8500rpm • Max Torque - 13.4Nm@6000rpm • Compression ratio -9.35/1TVS APACHE RTR FI 160Aiming to strengthen its presence in the premiumsegment, countrys third largest two-wheeler maker TVS Motor Company onMonday launched an advanced version of itsbike Apache fitted with fuel injectionengine, priced at Rs 64,990.The new bike Apache RTR FI would come with an 160cc fuel injected engineTVS APACHE RTR FI is the first bike from its stable tofeature innovative Fuel Injectiontechnology. By launching the apache RTR FI TVSwill bring the its ultimate racingexperience to the streets. According to TVS, the newapache RTR FI offers instant thrill Projectsformba.blogspot.com46. Projectsformba.blogspot.comand superior performance of a fuel injected 160ccengine. The 160cc FI mill cranks out15.1bhp at 8500 rpm and 13.1Nm at 6500rpm.The figures are not much different forcarbureted apache RTR. However, the powerdelivery will be progressive and therefinement can be felt while driving. TVS claimsthe top speed of the new apache RTRFuel Injection (FI) as 120kmph. Also becauseof the improved combustion the emissionswill be minimal in the new apache RTRFuel Injection (FI).Another novel feature in thenew apache RTR Fuel Injection (FI)is the rear disc brake. This new feature will givebetter control over this beast..1.7FUTURE LAUNCHESYAMAHA R125The most advanced 125 production supersportmachine that Yamaha will launch in 2009 will be Projectsformba.blogspot.com47. Projectsformba.blogspot.comYZF-R125. This radical, high-revving, fuel-injected125 is the work of the sameengineers who created our legendary YZF-R1 and YZF-R6 super sport bikes.Main Features of Yamaha R125:-Liquid-cooled single-cylinder4-stroke-SOHC 4-valve cylinder head-Wet-sump lubrication system-Fuel injection-Electric start-6-speed transmission-R6-style mid-ship muffler-Dual catalysers-AirInduction systemExpected In: July, 2009YAMAHA R6What you will feel when youon Yamahas new R6 aquick progress, not rapid, beneath 70 mph in top,howevererst over the legal limit insignificant sixtakes off as if a scolded cat without so a lotof as adown shift. Drop to moment at this speed and youwill find yourself looking atthe sky as everythingdisappears behind you at an alarming rate and it willbeinteresting to see what the six will do in thequarter mile.ENGINESPECIFICATIONSDisplacement: 599ccEngine: 4-stroke, 4-cylinder, 16-valves,
  • 102. D0HCMaximum Power: 127 Bhp @ 14500 rpmMaximum Torque: 65.8 Nm @11000 rpmGears: 6 Manual Projectsformba.blogspot.com48. Projectsformba.blogspot.comDIMENSIONSLength: 2040.00 mmWidth: 705.00mmHeight: 1100.00 mmWeight: 185.00 kgGround Clearance: 130.00 mmFuelTank: 17.30 ltrsWheelbase: 1380.00 mmWheel Type: AlloysExpected In : July,2009YAMAHA GLADIATOR 165Yamahas 165cc Gladiator will develop around16.5PS and complete a 0 – 60 sprints in less than 5seconds and it believed thatYamaha has alreadysent the bike for homologation and will launch its midNextYear. Bike was first displayed in last year‟s AutoExpo.ENGINESPECIFICATIONSDisplacement: 165ccEngine: Air-cooled, 4-stroke, SOHC, 2-valveMaximum Power: 15 Bhp (Expected)Maximum Torque: 14 Nm (Expected)Gears: 5 SpeedDIMENSIONSLength: 2065.00 mmWidth: 730.00mmHeight: 1100.00 mmGround Clearance: 155.00 mmFuel Tank: 13.00 ltrsProjectsformba.blogspot.com49. Projectsformba.blogspot.comWheelbase: 1300.00 mmExpected In : July,2009TVS APACHE RTR MENACE 180180cc version of flagship product apacheRTR will beseen on road by mid 2009. Codenamed as themenace, the new apacheRTR 180cc would comewith few cosmetic upgrades. But what‟s moreexciting willbe the new powerful 180cc engine.TVS announced earlier that it would introducetheABS (Anti-lock Braking System) in its forthcoming powerful bikes. However thenewapache RTR 180cc menace will not have ABS as it will push up the price. Theproposed200cc version of apache RTR might come with ABS.ENGINESPECIFICATIONSDisplacement: 180ccEngine: 4 Stroke, EFiMaximum Power:18bhpGears: 5 SpeedDIMENSIONSLength: 2020.00 mmWidth: 730.00 mmHeight:1100.00 mmWeight: 130.00 kgGround Clearance: 180.00 mmFuel Tank: 16.00ltrsWheelbase: 1300.00 mmOTHER SPECIFICATIONSProjectsformba.blogspot.com50. Projectsformba.blogspot.comTop Speed: 135kphFuel Consumption (City):28.00Fuel Consumption (Highway): 42.00Expected In: July, 2009HONDA CBR 150RAfter successfully accepted in Malaysian market. It isspeculated that Honda maybring its CBR 150R inIndia by 2009 in competition with Karizma & R15competitorand may price of CBR150 will be belowone lakh.The Honda CBR150R is poweredby a 149.4cc 4-stroke carbureted single cylinder 4 valve DOHC engine with 11.0:1compression andCDI ignition, mated to a 6-speed wet clutch manual transmission.It produces 18.5 Bhpat 10500 rpm and 13.5 Nm of torque at 8500 rpm.MainFeatures of Honda CBR150R:- DOHV 4-valve 150 cc water-cooled engine withbalancer shaft.- 6-speed return manual transmission.- Front and rear disc brakes.-Key slot cover for better protection against theft.- Monoshock rear shock absorber.-Secondary Air Supply System (SASS) which delivers extra air to the exhaustsystemfor cleaner emission.- Catalytic Converter.Expected In: July, 2009HONDAINTERCEPTORThe hunger of Indian sports bikers will be satisfiedwith the HondaInterceptor 800cc. Honda VFR 800Interceptor is a Sports Touring Motorcycle i.e. itis
  • 103. 51. Projectsformba.blogspot.commeant for the highways with a relaxed andcomfortable seating position, unlike theSports bikes that we currently see on theroad. It‟s sleek, aerodynamic bodywork isfunctional yet beautiful and air flowingthrough the windscreen‟s central air vent providescool air to the rider at low speedsand increases rider comfort at higher speeds byoffering real protection from highvelocity winds. Expected In: July, 2009HONDA CBR 1000 RRThe history-makingCBR900RR Fire bladecompletely rewrote the book of Super Sportmotorcycledesign with a remarkably compact andlightweight configuration based on a „Less IsMore‟concept that achieved a breathtaking blast of litre-class performance from a900cc inline-4 engineshoehorned into a highly advanced 600cc-classchassis.TheHonda CBR1000RR Fire blade is a Moto GP race replica with many of itsfeaturestaken from Hondas top-end racing bikes. The result is a high-performancetrack andracing superbike that also makes for a perfect street bike.Expected In:July, 2009KAWASAKI NINJA 250 RMade its debut on 1986 Kawasaki Ninja afteralong wait will soon be in India by 2009. The Ninja250R features a six-speedtransmission that hasbeen revised for smoother shifting, and is mated to amoredurable clutch. An entirely new radiatorprovides better cooling while being lighter inweight.A new radiator fan is quieter.Its expected price in India will be around 1.3Lacs Projectsformba.blogspot.com52. Projectsformba.blogspot.comExpected In: July, 2009SUZUKI GSX-R1000Suzuki GSX-R 1000 offers something different whencompare to other bike insame segment amongst theusual selling points of superb handling, classleadingperformance it offers switchable ECU maps.With switchable ECU fuelmapping you can switch tolow performance for easy handling in traffic,fueleconomy and when riding with cruisers, medium forfaster rides with the 600ccand full power for the track and Hayabusa owners.Expected In: July, 2009HONDACBR600RRInspired by the Honda RC211V MotoGP theCBR600RR receives the"RR" designation for "racereplica" because of its emphasis on racingcharacteristicssuch as an advanced bracedswingarm, center-up exhaust system, andmoreaggressive riding position.Features Of Honda CBR600 RR:1) Exciting newcolors: Red/Black, Pearl Orange/Black, Metallic Silver, and Graffiti2) Exclusive,MotoGP derived Unit Pro-Link Rear Suspension3) Dual Stage Fuel InjectionSystem (PGM - DSFI) features two injectors per cylinder.4) MotoGP-derived HondaElectronic Steering Damper (HESD).5) High-revving engine redlines at 15,000rpm.6) MotoGP-style center-up exhaust system. Projectsformba.blogspot.com53. Projectsformba.blogspot.com7) Radial-mount front brake calipers combinedwith radial actuated master cylinder.8) 41mm Honda Multi-Action System (HMAS)inverted front fork.9) Centrally located fuel tank increases mass centralization for amore compact framedesign.10) Line beam headlights feature three-piece multi-reflector design.Expected In: October, 2009KAWASAKI NINJA ZX-14KawasakiNinja ZX-14 is created to do everythingright. Right from the beginning. Itsaerodynamicsreminds users that Kawasaki is indeed an aircraftmaker. TheKawasaki Ninja ZX-14 is based aroundKawasaki motorcycles 1352cc four-strokeengine.It is an advanced version of Kawasaki‟s uniquealuminum monologue frame,lightweight and verystrong.Expected In: November,
  • 104. 54. Chapter 2.0 CRITICAL REVIEW OFLITERATURE Projectsformba.blogspot.com55. 2.0 CRITICAL REVIEW OFLITERATURE„Consumer buyer behavior refers to the buying behavior of finalconsumers – individualsand households who buy goods and services for personalconsumption.‟ (Philip Kotler)„To understand the buyer, and to create a customer outof him, through thisunderstanding, is the purpose of buyer behavior.‟ (Ramaswamyand Namakumari)It needs to be specified at the outset that there is no unified,tested and universallyestablished theory of buyer behavior. What is available today,are certain ideas of buyerbehavior.FACTORS INFLUENCING BUYERBEHAVIOURA number of factors influence buyer behavior. They can be groupedunder three broadcategories. 1. Factors that are part of buyer as an individual. 2.Buyer‟s social environment (group influence). 3. Information from a variety ofsources.1. Factors that are part of the Buyer as an individualAn individual‟s religionand cultural background, his personality traits, self concept, hisgeneralendowments, his upbringing – in short, his overall biodata – play a crucial role inProjectsformba.blogspot.com56. Projectsformba.blogspot.comhis conduct as a buyer/consumer. These factorscan be grouped broadly into threecategories: i. Personal factors ii. Cultural factorsiii. Psychological factorsI. Personal Factors – Age, Education, Economic Position,Self conceptAn individual‟s age, level of education, his occupation, overalleconomic position andlifestyle all influence his role as a buyer. They decide whatproducts he will buy andconsume. A person‟s self concept and his concern abouthis about status also influencehis buying decisions. In fact today people are veryconcerned about their image andstatus in society. It‟s a direct outcome of theirmaterial prosperity. Status is announcedthrough various symbols like dress,ornaments, possessions and general lifestyle. Thedesire for self expression andself advancement is closely linked with social status. Forseveral people, status is amajor motive force guiding and shaping their life. Theirconcept of status decideswhat material possessions they should have. Even if a productthat constitutes astatus symbol is beyond their immediate reach, their aspiration topossess it willinfluence their decision making process.ii. Cultural Factors – Religion, Languageetc.Every culture, every language and every religion group dictates its own uniquepatternsof social conduct. Within each religion, there may be several sects and subsects; theremay be orthodox groups and cosmopolitan groups. In dress, food habitsor marriage – inalmost all matters of individual life – religion and culture exercise aninfluence on theindividual, though the intensity may vary from society to society.The do‟s and don‟tslisted out by religion and culture impacts the individual‟s lifestyleand buying behavior.iii.Psychological Factors – Beliefs, Attitudes, Motivation,PerceptionJust like the economic and social conditions, a man‟s disposition too hasa close bearingon his purchase decisions. Individuals coming under the sameeconomic and social Projectsformba.blogspot.com57. Projectsformba.blogspot.comgroups can be vastly different when it comes tocertain personal beliefs, faith andattitudes. One may be timid and plain, whileanother may be outgoing and aggressive.One may be traditional in the overall view
  • 105. of life, while another may be modern. Onemay be east innovative, while anothermay welcome anything new. In fact, the maximumvariations are seen here and inthe matter of analysis and assessment too, this areaposes maximum problem tothe marketer.2. Buyer‟s Social Environment (group influence)The buyer living in asociety is influenced by it and is in turn influencing its course ofdevelopment. He isa member of several organizations and groups, both formal andinformal. Hebelongs to a family, he works for a certain firm, he may be a member ofaprofessional forum, he may belong to a particular political group, or a culturalbody.There is constant interaction between the individual and the groups to whichhe belongs.And all these interactions leave some imprint on him, which influenceshim in his day today life and consequently, his buying behavior.There are two broadtypes of group influences: i. Influence of intimate group. ii. Influence of the broadsocial class.I. Influence of Intimate GroupExamples of intimate groups are family,friends, close colleagues and closely knitorganizations. These groups exercise astrong influence on the lifestyles and the buyingbehavior of its members. Amongthese groups the most influential and primary groupsare the family and peergroups. The peer groups are closely knit groups composed ofindividuals, who havea common social background and who normally belong to thesame age group. Thepeer group has the greatest influence on the individual member asa stabilizer ofstyles and behavior patterns.In any intimate group, there is likely to be an informalgroup leader. Te group respectshim and looks up to him. Though the leader maynot directly influence every member inhis day to day purchases, his judgment onmen and matters, and facts and fashion isrespected by the group; and his viewsand lifestyle influences their buying decisions. Heis normally the innovator in thegroup, who first tries new products and new ideas, andthen, he becomes thepropagator of those products and ideas. These opinion leaders orinfluencers play akey role in marketing. Marketers often try to reach these leaders firstProjectsformba.blogspot.com58. Projectsformba.blogspot.comthrough advertisements and other means ofcommunication. And if the leaders areconvinced, their groups are likely to followsuit.ii. Influence of the Broad Social ClassStructurally, the social class is a largergroup than the intimate groups. The constitutionof a social class is decided by theincome, occupation, place of residence, etc. of theindividual members. Themembers of a social class enjoy more or less the same statusor prestige in thecommunity. They share a common lifestyle and behaviour pattern. Andtheynormally select a product or brand that caters to their class norms. Often theyevendo their shopping in the same shopping are and patronize selected shops,which befittheir class image. This does not mean that all the members of a givensocial class willbuy the same products and the same brands or conform to thesame style, amounting toa sort of regimentation. Differential liking may exist amongthe members. But, in a buyingsituation in which objective standard are not availableto guide them, they may conformto the „class norms‟. Studies have shown that theextent of influence the social class hason its members will depend on the extent ofattractiveness of the group holds out tothem. The greater the attractiveness, thelarger is the behavioral conformity.Study of group influence on the individual buyingbehaviour will help the marketers todevelop right strategies for different customersegments. It is not feasible for them toappeal to the fancies of every individual
  • 106. buyer. They can find ‟commonalities‟ or „pattern‟among specific groups of buyersand work on them.iii. Information from various sourcesThe buyer today is exposedto a veritable flood of information, unleashed on him fromdifferent sources. Thesesources inform him about new products and services, improvedversions of existingproducts, new uses for existing products and so on. The informationsources thatpersuade people to try a product include: advertising, samples and trials,display inshops and salesmen‟s suggestions.Each of these sources provides someinformation to the buyer about the products. Whenthe buyer sees an advertisementfor a product, he is informed about the existence of theproducts. Later on, he maydevelop a positive or negative attitude towards the product orhe may remainneutral. In any case, a piece of information about the product is madeavailable tohim and it has some influence on his buying behavior.Projectsformba.blogspot.com59. Projectsformba.blogspot.comThe availability of the product in the shop itselfacts as an information source to te buyer.The buyer may evince an interest in theproduct and may inquire about it. The productadvertises itself.Often salesmenserve as a source of information to buyers. The salesmen may informthe prospectsabout a product, explain its advantages and may even suggest a trialpurchase. Incases where a rapport has already been established between the buyerand thesalesman, the latter‟s suggestions are normally taken as reliable. THE BUYINGPROCESS1. Problem Recognition Projectsformba.blogspot.com60. The process of buying normally starts with therecognition of a need by the consumer. He recognizes a problem and develops aperception of the problem. Then he seeks information for solving his problem.2.Awareness The customer turns to his environment /world of information aroundhim. It makes him aware of the existence of the product that would solve hisproblem.3. Comprehension (Evaluation) Comprehension comes out of his ability toreason with the information. The awareness and comprehension stages representthe information processing stage. These two stages constitute the cognitive field ofthe purchase process.4. Attitude It is the sum total of the individual‟s faith andfeelings towards a product. As a result of his awareness and comprehension, theconsumer develops an attitude – favorable or unfavorable – towards the product.The purchase process will continue only if he develops a favorable attitude or aliking for the product.5. Legitimization The buyer must be convinces that thepurchase of the product is he legitimate course of action. This stage often standsas a barrier between a favorable attitude towards the product and actual purchase.Only if the buyer is convinced about the correctness of the purchase decision, willhe proceed. At this stage, he may seek further information regarding the product, orattempt to assess the information already available. Attitude and legitimizationconstitute the attitude field of he purchase process.6. Trial Conviction leads theconsumer to try the product on a small scale ; he may buy a sample. He tries toevaluate the product from his own experience.7. Adoption A successful trial leadshim to buy/adopt the product. Trial and Adoption constitute the behavioral field inthe buying process.8. Post-Purchase Behavior The purchase leads to a specificpost purchase behavior. Usually, it creates some restless ness in the mind of the
  • 107. individual. He is not sure about the product. He may feel that „the other brand‟would have been better. He may even feel that the Projectsformba.blogspot.com61. salesman has taken him for a ride. As thisdissonance is uncomfortable, the individual, by himself will seek all means torecover his conviction and poise. He well seed reassuring advertisements of theproducts or he may deliberately avoid positive stories about the competing brand.THE YAMAHA STRATEGY IN INDIAYamaha has shifted its focus from the lowerend segments to the premium segment ofbikes. It aims to provide its customers thefull range of its engineering marvels that makeYamaha the company that it is.Yamaha has a very strong focus on the technicaldepartment, the result of whichcan be seen with Yamaha comfortably leading theconstructor‟s championship in theSuperbikes racing with Valentino Rossi and ColinEdwards as their riders.Yamahahas aimed to become the No.1 in customer satisfaction and is looking forwardtoproviding the customer with an „experience‟ with its products.The target market ofIndia Yamaha Motors is the young and enthusiastic 18-25 yr. oldswho are willing totry taking the not so much treaded path of buying the „sports bike‟rather than a„utility two wheeler‟. These young guns are very conscious of the stylequotient andlook forward to their ride being a personality statement.With the increasingdispensable income in India and growing middle and upper middleclass segmentYamaha is sure to find many prospective customers. With news of Indiabecomingthe breeding ground for millionaires Yamaha has certainly identified anopportunityand has grabbed it hands down.THE 4 P‟S FOR INDIA YAMAHAMOTORSProduct: India Yamaha Motors has recently launched its sports bike R15and FZS in the150cc. The bikes in the premium segment include MT01 and YZFR1. Yamaha isbringing its latest technologies to India and aims to come up with anew product for theIndian market every quarter. Projectsformba.blogspot.com62. Projectsformba.blogspot.comThe reliability and riding quality of a Yamaha havealready been established through itsearlier products.Price: The Yamaha range ofproducts has been very competitively priced and the pricesof its premium segmentbikes MT01 and YZF R1 are priced much below any present orprospectivecompetitor in the segment at Rs.10.5 lacs.Its other products like the R15 has alsobeen priced optimally looking at thespecifications of the bike. The bike despitebeing only 150 cc provides around 22 BHP ofpower, more than any other bike inthe 150-220cc. bracket. The bike has also broughtthe liquid cooled enginetechnology to India and other features like the styling etc. arealso quite new for theIndian market and hence considering what it gives you it is abargain atRs.97,500.Promotion: Yamaha has been constantly loosing market share over thelast few yearsand has thus decided to change its brand image with change in itsmarket strategy. Thecompany now wants to be known for its style and speed. Itlooks to be known as asports bike manufacturer and not as an economy bikesegment player.Taking these factors into consideration the company has started acomplete makeoverof its image. The recent R15 and FZS ads on numerouschannels on TV and other adson both electronic and print media vindicate thepoint.The company has also opened „Yamaha bike stations‟ which are companyownedshowrooms and completely symbolize the brand image that Yamaha wantsto achieve inIndia.Place: India Yamaha Motors has adopted a two tier marketing
  • 108. channel consisting of thePrimary dealers at tier1 and the secondary dealers orretailers at tier2. In addition tothese two tiers there are also the „company ownedshowrooms‟ and the multibrandoutlets. Projectsformba.blogspot.com63. CHAPTER 3.0 HYPOTHESESProjectsformba.blogspot.com64. Projectsformba.blogspot.com3.0 HYPOTHESESH0 = Yamaha‟s new launch ofFZ & FZS has changed customers perception regardingchoice of bikes.H1 =Yamaha new launch of FZ & FZS has not changed customers perceptionregardingchoice of bikes.H0 = Yamaha has regained its image in India after thelaunch of FZ & FZS.H1 = Yamaha has not regained its image in India after thelaunch of FZ & FZS.H0 = There is a significant relationship between income groupand the choice of featuresthey value most in a two wheeler.H1= There is nosignificant relationship between income group and the choice of featuresthey valuemost in a two wheeler.H0 = There is a significant relationship between incomegroup and the 1st informationsource for the people.H1= There is no significantrelationship between income group and the 1st informationsource for the people.H0= There is a significant relationship between age group and the choice offeaturesthey value most in a two wheeler.H1= There is no significant relationshipbetween age group and the choice of featuresthey value most in a two wheeler.H0= There is a significant relationship between age group and the 1st informationsourcefor the people.H1= There is no significant relationship between age groupand the 1st information sourcefor the people. Projectsformba.blogspot.com65. CHAPTER 4.0 EXECUTIVE SUMMARYProjectsformba.blogspot.com66. 4.01 EXECUTIVE SUMMARYThis research is ahypothesized study which was conducted to measure the CustomerSatisfactionLevel from the Yamaha‟s new products such as YAMAHA FZ & YAMAHAFZS; thisresearch was conducted in the East UP region. This research was done duringthemonths of June and July2009.Hence the data displayed has been collectedduringthe before mentioned period.To meet the research objectives, followingactivities have been performed.1. An extensive search of relevant literature fromnews articles, internet, books. This step guided the development of the methodsand instruments for collecting data.2. Designing the questionnaire.3. Survey hasbeen carried away by telephone, one-on-one interviews; The Survey included bothquantitative, forced-choice or close ended questions and qualitative, open-endedquestions.4. Analysis was done on the basis of the information.During this researchit was found that Yamaha‟s new launched bikes(FZ & FZS) hasincreased its marketshare by attracting new customers and helped to retain its oldcustomers which theyhave lost in she past after the ban of RX100 in India. FZ & FZSare awarded as aBIKE OF THE YEAR. India Yamaha Motors, a company that is knownfor combiningtechnology, quality and performance in their bikes, had taken an initiativetointroduce some of their performance driven bikes in India last year and arenowreporting an impressive growth of 48% in sales during April 2009 having sold15120units as compared to 10199 units in April last year. With their product line-up
  • 109. being theFZ-16, FZ-S and the R15, India Yamaha Motors is also providing theircustomers with Projectsformba.blogspot.com67. Projectsformba.blogspot.comDifferent experiences with their various programssuch as allowing the customers todrive their bikes on a race track.It is also seenthat Yamaha is focusing on the Premium segment of bikes which is slatedtowelcome new players. Yamaha would have to constantly innovate and come upwithnew products to maintain its dominance in the segment.Projectsformba.blogspot.com68. Chapter 5.0 RESEARCH DESIGN5.1 DataSource5.2 Research Approach5.3 Objectives5.4 Research Design5.5 SampleDesign5.6 Scope of Study5.7 Limitations of the study Projectsformba.blogspot.com69. Projectsformba.blogspot.com5.0 RESEARCH METHODOLOGYThe report hasbeen prepared on the basis of information collected fromdifferent sources. In orderto achieve the objective of the project properresearch method was applied.. Aftergiving through brain storming session,objectives were selected and the set on thebase of these objectives, Aquestionnaire was designed major emphasis of whichwas gathering newideas or insight so as to determine and bind out solution to theproblems.5.1 DATA COLLECTION SOURCEResearch included gathering bothprimary and secondary data. :PRIMARY DATA - Primary Data was very crucial tocollect so as to knowvarious past & present consumer views about bikes and tocalculate themarket share of this brand in regards to other brands. Fresh primarydatawas collected by taking direct feed back from customer which involved facetoface interview with the customer as well as through telephonic interviewwith thecustomer , all the FZ customer who visited the dealershipshowroom for the serviceof their bikes were questioned in order to find outthe customer satisfactionlevel.SECONDARY DATA- are those which has been collected by some oneelseand which already have been passed through statistical process.Secondarydata has been taken from internet, newspaper, magazines andcompaniesweb sites.5.2 RESEARCH APPROACHSURVEY METHOD: Theresearch approach used was survey method whichis a widely used method for datacollection and best suited for descriptivetype of research survey includes researchinstrument like questionnairewhich can be structured and unstructured. Targetpopulation is wellidentified and various methods like personal interviews andtelephoneinterviews are employed. Projectsformba.blogspot.com70. Projectsformba.blogspot.com5.3 OBJECTIVES• To know the customer‟sperception regarding launch of new bikes FZ & FZS by Yamaha.• To determine thecustomer‟s satisfaction regarding bikes and after sales service.• To determine thefactors influencing the choice of customers regarding bikes• To know the marketscenario of second hand bike industry.5.4 RESEARCH DESIGNThis study is a mixof explorative and formal methodologies adopting monitoring andobserving to studythe dealerships in Lakhimpur and communication to elicit responsesfromcustomers. This is a cross sectional study done during the months of JuneandJuly.For the customer satisfaction study a questionnaire was formulatedcontaining 17 closedended questions which were sent out for response through the
  • 110. internet and mainlythrough personal interviews of customers at Yamahadealerships. This data was lateranalyzed using SPSS through performing thecross-tabulations on various involvedvariables. Results of this step formed thebasis of the recommendations given to thecompany. Projectsformba.blogspot.com71. Projectsformba.blogspot.comTo know the Yamaha reputation and salespromotion in motorcycle market, censusmethod was chosen and all the dealershipwere individually visited in the area ofLakhimpur, Mosaram Auto Sales(HeroHonda), I did a market survey by taking openinterviews to the dealers and brokersof the market.5.5 SAMPLE DESIGNFor the sales promotion study a censusmethodology was adopted and all thedealerships and brokers of that region werevisited.For the customer satisfaction study a sample of 100 persons was chosenfrom theYamaha‟s dealership in Lakhimpur. The sample was judgmental andmethodology wasnon probability samplingSize of Sample 100Sampling techniqueJudgmental (Non Probabilistic Sampling)Location from which samples were takenLakhimpur5.6 SCOPE OF THE STUDYThis study is aimed at providing IndiaYamaha Motors with an insight into the success ofFZ & FZS as well as thecustomer‟s response and awareness towards the brand,products and services ofYamaha.The data has been analyzed and presented in a simple and precise wayon the basis ofwhich pertinent recommendations have been made to the companyto better theservices, policies and strategies of the company in India.Projectsformba.blogspot.com72. Projectsformba.blogspot.com5.7 LIMITATIONS OF THE STUDY • Thisresearch is geographically restricted to Lakhimpur only. Hence the result cannot beextrapolated to other places. • The study is restricted only to the organized sector oftwo wheeler industry • The seriousness of the respondents and their ability to justifytheir answers may also be a limitation. • The sample size is small due to thespecified reasons. • Findings are based on sample survey. • All interview questionsare undisguised or direct. Hence there is a scope for the respondents to be biasedor pretentious. Projectsformba.blogspot.com73. Chapter 6.0 Data6.0 DATAProjectsformba.blogspot.com74. Projectsformba.blogspot.comPRIMARY DATAIn order to find out customersatisfaction & Perception regarding newly launched bikesof Yamaha Primary Datawas collected by personally visiting the dealerships andshowrooms. With the helpof a questionnaire we took the feedback from the FZScustomers who were comingfor the services of their bikes at the dealerships. As well aswe contacted some ofthe customers through telecalling by taking the data about thecustomers from thecustomer data register of the dealership We interviewed them anddiscussed withthe showroom staff as well as with the employees at Yamaha whichhelped us toprepare our research Report .SECONDARY DATAThe Secondary Data collectioninvolved internet search, browsing magazines,newspapers and articles and papersrelated to the two wheeler industry in India.Numerous Journals and books relatedto the topic were also browsed to understand thedynamics of the
  • 111. 75. Chapter 7.0 FINDINGS AND ANALYSIS7.1RESULTS OF CUSTOMER SURVEY7.2 HYPOTHESES TESTS 7.1 RESULTS OFTHE CUSTOMER SURVEY Projectsformba.blogspot.com76. 7.1.1: The Age distribution in thesample.ANALYSIS: 7.1.1: Following points can be referred from the above piechart • The above pie chart is showing that the customers of FZS are mainlycoming from the age group of 16-25 that is around 69%, as Yamaha claims thatthey generally target their customers who are between the age group of 18 to 25,because that people of this age group are passionate and are style freaks, • So wecan say that Popularity of Yamaha is available in the age of 26-30 (around 20%)also because of its reputation in the world market. Projectsformba.blogspot.com77. 7.1.2: The Marital status distribution in thesample. Analysis: 7.1.2: In this pie chart it is very much clear that 76% of theYamaha‟scustomer is mainly the youth who are single, so Yamaha‟s new launchFZS is mostlybeing accepted by the singles instead of family oriented people.Projectsformba.blogspot.com78. 7.1.3: The Occupation distribution in thesample.Analysis: 7.1.3: Once again we found that Yamaha‟s major customers arethe students ofcolleges and schools which consists 43%, as they want somethingspecial, new, stylish,masculine and attractive and Yamaha is providing that in theform of FZS. Projectsformba.blogspot.com79. 7.1.4: The Income groups distribution in thesample.Analysis: 7.1.4: In the income group distribution we can analyze thatcustomers of FZSare coming from the Middle income group people which is around73% by including10001-40000 slab of income group. It shows that Yamaha isplacing their products in theappropriate price range. As the people of this incomebracket can easily afford this Bike. Projectsformba.blogspot.com80. 7.1.5: The Way of purchasing distribution in thesample.Analysis: 7.1.5: Here again we can prove that the products of Yamaha arein theacceptable price range, as we can see that purchasing way of the customersare leading inthe CASH sector. Customers are easily affording the price of FZS;they are not feelingmuch problem with the amount of FZS.Today‟s customers areready to pay for betterfacilities and technology and they feel that FZS deserves thatprice which YAMAHA isoffering. Projectsformba.blogspot.com81. 7.1.6: The Financing distribution in the sample.Analysis: 7.1.6: In this pie chart a very important thing can be referred thatIndianYouths are not so much independent in the financial matters, still they dependsonthe family, as Yamaha claims that they target the people of 18-25 age group, buthere wecan say that they should promote such kind of advertisements where theYamahaproducts can link to the family. Ultimately family is paying the amount soYamahashould target according to family also, so that the view of the children andfamilyshouldn‟t clash.
  • 112. 82. 7.1.7: Compared brands with FZS. Analysis:7.1.7: Majority of people is not comparing Yamaha FZS to any otherproduct and thenumber of such people is around 39%,But the second view which we have foundthat FZS is getting a very tough competitionFr BAJAJ & HERO HONDA. BAJAJ haslaunched their new edition of Pulsar 220 at avery low price (around 70000 exshowroom price), which is the reason for the toughcompetition giving by BAJAJ. Onthe other hand HERO HONDA HUNK is also givingdirect fight to the FZS becauseof its MILEAGE only. There are some more competitorswhich are stable at theirmarket share in automobile industry. Projectsformba.blogspot.com83. 7.1.8: The choice of Feature which is mostimportant in a bike.Analysis: 7.1.8: If we see the trend of Two wheeler industry wefound that earlier peoplewere looking mainly towards the mileage of the vehicle butnow In our research wecollected data and found that now customer‟s perceptionhas changed and they areshifting towards the style, design & riding comfort of thevehicle,54% customers have purchased FZS because of its Style & Design andonly 2% peopleare looking for the mileage. So in a way we can say they Yamahaexactly changed the perception of Indiancustomers. They are trying to attractcustomers with new style, design or look of the bikeand creating passion in thecustomers for the speed and power. So through this we have proved our Firsthypothesis which was regarding the Yamaha‟snew launch of FZ & FZS that haschanged the customer‟s perception regarding choice ofbikes.Projectsformba.blogspot.com84. 7.1.9: 1st Information sources and their sharesAnalysis: 7.1.9: As we can see here the major promotional tool which isinfluencingthe customers is TVCF which stands for Television Commercial, which isaround45%, after that the major source of awareness among customers, isFamily/Friends.Magazine and newspaper consists only 9% in our research, but if welook them at avery good sample size then it is around 2% only. So here we can say that Yamahashould produce better advertisements like FZSand they should link their ads withthe emotions of the customers so that the brandrecognition by the customers willbe for long time. The customers can still recall thepunch lines of Bajaj and HeroHonda such as HAMARA BAJAJ or HERO HONDADESH KI DHADKAN. YAMAHAshould also use such kind of heart loving lines. Projectsformba.blogspot.com85. 7.1.10: Customer Perception regarding YamahaImage after FZSAnalysis: 6.1.10: This is a good result for Yamaha that once againthey are creating placein the heart of the customers, after the discontinue of RX100Yamaha has lost very bigamount of customers in the last 10 years, but after thelaunching of FZS, Yamaha hasimproved their image among the customers.Ourdata is showing that 98% people are admitting that Yamaha has improvedtheirimage after the FZS and R15 launch, feedback which we have got from thecustomerswere like that Yamaha has produced something new this time and verystylish and welldesigned product..With Yamahas continued thrust on technology,quality and manufacturing excellenceand introduction of Global Yamaha standardsin its operations, the customers haveexperienced the real Yamaha and have comecloser to the brand.By this we are again proving our second HYPOTHESIS that
  • 113. YAMAHA has regained itsimage after the launch of FZ & FZS.Projectsformba.blogspot.com86. 7.1.11: Comments for FZS by PotentialCustomers.Analysis: 7.1.11: This year Yamaha FZS has got the BIKE OF THEYEAR AWARDwhich shows its popularity among the customers. It has fulfilled thedesire and demand ofthe current customers, there are very few people who stillneed some improvements in theFZS but Yamaha is taking care of those customersalso. As our data is showing that 78%people are giving good comments orresponses for Yamaha, they are feeling that FZS isthe most stylish and trendy bikein these days, 2% people are feels that spare parts ofYamaha FZS are very costlyand 16% people are complaining for the mileage of the bike,therefore Yamahashould work on these loopholes of the bike so that they can attractsome morecustomers. Projectsformba.blogspot.com87. Projectsformba.blogspot.com7.2 HYPOTHESES TESTSHYPOTHESIS IH0 =Yamaha‟s new launch of FZ & FZS has changed customers perceptionregardingchoice of bikes.H1 = Yamaha new launch of FZ & FZS has not changedcustomers perception regardingchoice of bikes. PURCHASING REASONSCumulative Frequency Percent Valid Percent PercentValid STYLE/DESIGN 5454.0 54.0 54.0 CONTOLLABILITY 7 7.0 7.0 61.0 PICK UP 8 8.0 8.0 69.0REPUTATION OF 6 6.0 6.0 75.0 MAKER RIDING COMFORT 12 12.0 12.0 87.0NEW TECHNOLOGY 8 8.0 8.0 95.0 DURABILITY 1 1.0 1.0 96.0 OTHERS 2 2.02.0 98.0 MILEAGE 2 2.0 2.0 100.0 Total 100 100.0 100.0Projectsformba.blogspot.com88. Projectsformba.blogspot.comOBSERVATIONWhen we analyze the above BarDiagram we can clearly find out that now a dayscustomer are not looking formileage at all, they are going for style and design, so byconducting this survey wehave found that after the launch of Yamaha FZS people aregiving second thoughtto mileage which was first in the previous days.So the above chart is ACCEPTINGour NULL HYPOTHESIS and REJECTING ourALTERNATE HYPOTHESIS.As it isvery clear by looking up the BAR DIAGRAM so there is no need for anyothertest.HYPOTHESIS II Projectsformba.blogspot.com89. Projectsformba.blogspot.comH0 = Yamaha has regained its image in India afterthe launch of FZ & FZS.H1 = Yamaha has not regained its image in India after thelaunch of FZ & FZS. YAMAHA IMPROVED Cumulative Frequency Percent ValidPercent PercentValid YES 98 98.0 98.0 98.0 NO 2 2.0 2.0 100.0 Total 100 100.0100.0OBSERVATIONHere again we can see clearly that 98% of total sample sizeare accepting that YAMAHAhas regained its image after the launch of FZ & FZS.There are only 2% people who are Projectsformba.blogspot.com90. Projectsformba.blogspot.comstill feeling that YAMAHA is not up to the mark. sothis observation is also proving true toour NULL HYPOTHESIS and REJECTINGthe ALTERNATE HYPOTHESIS.HYPOTHESIS IIIH0 = There is a significantrelationship between income group and the choice of featuresthey value most in atwo wheeler.H1= There is no significant relationship between income group and the
  • 114. choice of featuresthey value most in a two wheeler. Case Processing SummaryCases Valid Missing Total N Percent N Percent N PercentMONTHLY 100 100.0%0 .0% 100 100.0%HOUSEHOLD INCOME* PURCHASINGREASONSProjectsformba.blogspot.com91. MONTHLY HOUSEHOLD INCOME * PURCHASING REASONS Crosstabulation PURCHASING REASONS PICK UP OF REPUTATION MILEAGE NEWTECHNOLOGY RIDING COMFORT DESIGNSTYLE/ CONTROLLABILITYDURABILITY OTHERS TOTAL MAKERMONTHLYHOUSEHOLD INCOME UPTO 10000 Count 8 1 2 2 4 0 0 0 0 17 % within 47.1%5.9% 11.8 11.8% 23.5 .0% .0% .0% .0% 100. MONTHLY % % 0% HOUSEH OLDINCOME % within 14.8% 14.3 25.0 33.3% 33.3 .0% .0% .0% .0% 17.0 PURCHAS% % % % ING REASONS % of Total 8.0% 1.0% 2.0% 2.0% 4.0% .0% .0% .0%.0% 17.0 % 1000 Count 18 2 3 0 2 4 1 1 2 33 1-20 % within 54.5% 6.1% 9.1% .0%6.1% 12.1 3.0% 3.0% 6.1% 100. 000 MONTHLY % 0% HOUSEH OLD INCOME %within 33.3% 28.6 37.5 .0% 16.7 50.0 100. 50.0 100.0 33.0 PURCHAS % % % %0% % % % ING REASONS % of Total 18.0% 2.0% 3.0% .0% 2.0% 4.0% 1.0%1.0% 2.0% 33.0 % 2000 Count 24 4 3 2 5 1 0 1 0 40 1-40 % within 60.0% 10.07.5% 5.0% 12.5 2.5% .0% 2.5% .0% 100. 000MONTHLY % % 0% HOUSEH OLD INCOME92. Chi-Square Tests Asymp. Sig. Value df (2-sided)Pearson Chi-Square 31.685a 32 .482 Likelihood Ratio 33.007 32 .418 Linear-by-Linear .006 1 .936 Association N of Valid Cases 100 a. 42 cells (93.3%) haveexpected count less than 5. The minimum expected count is .01. SymmetricMeasures Asymp. Std. Value Errora Approx. Tb Approx. Sig.Interval by Pearsons R-.008 .092 -.080 .936cIntervalOrdinal by Spearman -.016 .100 -.154 .878cOrdinalCorrelationN of Valid Cases 100a. Not assuming the null hypothesis.b. Using theasymptotic standard error assuming the null hypothesis.c. Based on normalapproximation. Projectsformba.blogspot.com93. Projectsformba.blogspot.comOBSERVATION: 1: 60% of the people in the20001-40000 income group opt for styleand 54.5% in 10000-20000.OBSERVATION: 2: Style/Design & riding comfort are the two mostsignificant factors forpeople.OBSERVATION: 3: Chi square test has an asymptoticsignificance greater than 0.1hence there is no significant relationship between thevariables, hence H0 is rejected.HYPOTHESIS IVH0 = There is a significantrelationship between income group and the 1st informationsource for the people.Projectsformba.blogspot.com94. Projectsformba.blogspot.comH1= There is no significant relationship betweenincome group and the 1st informationsource for the people. Case ProcessingSummary Cases Valid Missing Total N Percent N Percent N PercentMONTHLY100 100.0% 0 .0% 100 100.0%HOUSEHOLD INCOME* SOURCEOFAWARENESS Projectsformba.blogspot.com95. MONTHLY HOUSEHOLD INCOME * SOURCE OF AWARENESS Crosstabulation SOURCE OF AWARENESS Total FRIENDSFAMILY/ SHOWROOM
  • 115. WEBSITE/BLOGS MAGAZINE TVCF NEWSPAPER AUTOEXPOROADSHOW/TES OTHERS TRIDEMONTHLYHOUSEHOLD INCOME UPT Count 5 4 1 3 3 0 1 0 0 17 O % within 29.4 23.5 5.9%17.6 17.6% .0% 5.9% .0% .0% 100.0 100 MONTHL % % % % 00 Y HOUSE HOLDINCOME % within 11.1 16.7 20.0% 25.0 60.0% .0% 33.3% .0% .0% 17.0%SOURC % % % E OF AWARE NESS % of 5.0 4.0% 1.0% 3.0 3.0% .0% 1.0% .0%.0% 17.0% Total % % 100 Count 16 8 1 3 1 2 1 1 0 33 01-2 % within 48.5 24.23.0% 9.1 3.0% 6.1% 3.0% 3.0% .0% 100.0 000 MONTHL % % % % 0 Y HOUSEHOLD INCOME % within 35.6 33.3 20.0% 25.0 20.0% 50.0% 33.3% 100.0 .0%33.0% SOURC % % % % E OF AWARE NESS % of 16.0 8.0% 1.0% 3.0 1.0%2.0% 1.0% 1.0% .0% 33.0% Total % % 200 Count 20 11 3 4 1 0 0 0 1 40 01-4 %within 50.0 27.5 7.5% 10.0 2.5% .0% .0% .0% 2.5% 100.0 000 MONTHL % % % %0 Y HOUSE HOLD INCOME % within 44.4 45.860.0% 33.3 20.0% .0% .0% .0% 100. 40.0% SOURC % % % 0% E OF96. Chi-Square Tests Asymp. Sig. (2- Value df sided)Pearson Chi-Square 30.288a 32 .553 Likelihood Ratio 28.748 32 .632 Linear-by-Linear .274 1 .601 Association N of Valid Cases 100 a. 40 cells (88.9%) haveexpected count less than 5. The minimum expected count is .01.OBSERVATION:1: The 10001-20000 & 20001-40000 income group mainly usesadvertisements astheir primary information source. 50% in both groups are relying ontheAdvertisement as a source of awareness for any new launch or any otherinformationregarding two wheelers.OBSERVATION: 2: Advertisements and Friendstogether constitute 69% of the total. Projectsformba.blogspot.com97. Projectsformba.blogspot.comOBSERVATION: 3: We can see that throughnewspaper and magazine we are notpassing our product details to the customerseasily, reason behind this can be that weare not positioning our AD‟s in the rightarea. So once again we should do the TargetingPositioning and segmenting ourcustomers for our product advertisement in newspaper.OBSERVATION: 4: Chisquare test has an asymptotic significance greater than 0.1hence there is nosignificant relationship between the variables, hence H0 is rejected.HYPOTHESISVH0 = There is a significant relationship between age group and the choice offeaturesthey value most in a two wheeler.H1= There is no significant relationshipbetween age group and the choice of featuresthey value most in a two wheeler.Case Processing Summary Cases Valid Missing Total N Percent N Percent NPercentPURCHASING 100 100.0% 0 .0% 100 100.0%REASONS * AGEProjectsformba.blogspot.com98. PURCHASING REASONS * AGE Crosstabulation AGE Above 16-20 21-25 26-30 30 Total STYLE/DESIGN Count 17 20 134 54 % within PURCHASING 31.5% 37.0% 24.1% 7.4% 100.0% REASONS %within AGE 60.7% 48.8% 65.0% 36.4% 54.0% % of Total 17.0% 20.0% 13.0%4.0% 54.0% CONTROLLABILI Count 3 3 0 1 7 TY % within PURCHASING 42.9%42.9% .0% 14.3% 100.0% REASONS % within AGE 10.7% 7.3% .0% 9.1% 7.0%% of Total 3.0% 3.0% .0% 1.0% 7.0% PICK UP Count 2 4 1 1 8 % withinPURCHASING 25.0% 50.0% 12.5% 12.5% 100.0% REASONS % within AGE 7.1%9.8% 5.0% 9.1% 8.0% % of Total 2.0% 4.0% 1.0% 1.0% 8.0% REPUTATION OF
  • 116. Count 0 4 0 2 6 MAKER % within PURCHASING .0% 66.7% .0% 33.3% 100.0%REASONS % within AGE .0% 9.8% .0% 18.2% 6.0% % of Total .0% 4.0% .0%2.0% 6.0%PURCHASING REASONS RIDING Count 3 5 2 2 12 COMFORT %within PURCHASING 25.0% 41.7% 16.7% 16.7% 100.0% REASONS % withinAGE 10.7% 12.2% 10.0% 18.2% 12.0% % of Total 3.0% 5.0% 2.0% 2.0% 12.0%NEW Count 1 4 3 0 8 TECHNOLOGY % within PURCHASING 12.5% 50.0%37.5% .0% 100.0% REASONS % within AGE 3.6% 9.8% 15.0% .0% 8.0% % ofTotal 1.0% 4.0% 3.0% .0% 8.0% DURABILITY Count 1 0 0 0 1 % withinPURCHASING 100.0 .0% .0% .0% 100.0% REASONS %Projectsformba.blogspot.com99. Chi-Square Tests Asymp. Sig. Value df (2-sided)Pearson Chi-Square 22.567a 24 .545 Likelihood Ratio 26.816 24 .313 Linear-by-Linear .917 1 .338 Association N of Valid Cases 100 a. 32 cells (88.9%) haveexpected count less than 5. The minimum expected count is .11. SymmetricMeasures Asymp. Std. Value Errora Approx. Tb Approx. Sig.Interval by Pearsons R.096 .102 .957 .341cIntervalOrdinal by Spearman .084 .100 .838 .404cOrdinalCorrelationN of Valid Cases 100a. Not assuming the null hypothesis.b. Using theasymptotic standard error assuming the null hypothesis.c. Based on normalapproximation. Projectsformba.blogspot.com100. Projectsformba.blogspot.comOBSERVATION: 1: Around 61% of people in the21-25 years age group and 75% of26-30 years age group opt for style, design andriding comfort. So we can say there isno combination with age and choice offeature of bike.OBSERVATION: 2: Only 2% people are demanding for Mileage soby this somewherethis result is also proving our null hypothesis of first hypothesistrue that Yamaha haschanged the perception of customers now adays.OBSERVATION: 3: Chi square test has an asymptotic significance greaterthan 0.1hence there is no significant relationship between the variables, hence H0is rejected.HYPOTHESIS VIH0 = There is a significant relationship between agegroup and the 1st information sourcefor the people.H1= There is no significantrelationship between age group and the 1st information sourcefor the people.Projectsformba.blogspot.com101. Projectsformba.blogspot.com102. SOURCE OF AWARENESS * AGE Crosstabulation AGE Above 16-20 21-25 26-30 30 Total TVCF Count 10 16 14 5 45 %within 22.2% 35.6% 31.1% 11.1% 100.0 SOURCE OF % AWARENESS % withinAGE 35.7% 39.0% 70.0% 45.5% 45.0% % of Total 10.0% 16.0% 14.0% 5.0%45.0% FAMILY/FRIENDS Count 7 8 4 5 24 % within 29.2% 33.3% 16.7% 20.8%100.0 SOURCE OF % AWARENESS % within AGE 25.0% 19.5% 20.0% 45.5%24.0% % of Total 7.0% 8.0% 4.0% 5.0% 24.0% ROADSHOW/TESTRI Count 1 4 00 5 DE % within 20.0% 80.0% .0% .0% 100.0 SOURCE OF % AWARENESS %within AGE 3.6% 9.8% .0% .0% 5.0% % of Total 1.0% 4.0% .0% .0% 5.0%SHOWROOM Count 1 8 2 1 12 % within 8.3% 66.7% 16.7% 8.3% 100.0 SOURCEOF % AWARENESS % within AGE 3.6% 19.5% 10.0% 9.1% 12.0%SOURCE OFAWARENESS % of Total 1.0% 8.0% 2.0% 1.0% 12.0% MAGAZINE Count 4 1 0 0
  • 117. 5 % within 80.0% 20.0% .0% .0% 100.0 SOURCE OF % AWARENESS % withinAGE 14.3% 2.4% .0% .0% 5.0% % of Total 4.0% 1.0% .0% .0% 5.0%NEWSPAPER Count 3 1 0 0 4 % within 75.0% 25.0% .0% .0% 100.0 SOURCE OF% AWARENESS % 2.4% within AGE 10.7% .0% .0%4.0%103. Chi-Square Tests Value df Asymp. Sig. (2-sided) Pearson Chi-Square 30.503a 24 .169 Likelihood Ratio 32.730 24 .110Linear-by-Linear 7.581 1 .006 Association N of Valid Cases 100 a. 31 cells (86.1%)have expected count less than 5. The minimum expected count is .11.Projectsformba.blogspot.com104. Projectsformba.blogspot.comOBSERVATION: 1: Around 60% of people in the16-20 years age group and 55% in21-25 age groups have TVCF and friends astheir primary information source.OBSERVATION: 2: TVCF & Family/friends are themajor source of info in every group.OBSERVATION: 3: Chi square test has anasymptotic significance greater than 0.1hence there is no significant relationshipbetween the variables, hence H0 is rejectedTo make my analysis easier I dividedthe bikes in 4 different segments1. PREMIUM SEGMENT2. DELUXE SEGMENT3.EXECUTIVE SEGMENT4. ENTRY SEGMENTHere we are doing the analysis ofevery segment one by one.1. PREMIUM SEGMENT In the premium segm 105. 2009 2008 Ex- %resaleCompany Model showroom value „09 2007 priceYamaha R15 97,425 82.1180,000 75,000 _____HHML CBZ 57,450 69.62 40,000 34,000 27,000HHMLKarizma 72,800 68.68 50,000 45,000 40,000Bajaj Pulsar 81,567 _____ ___________ _____ 220 __ _ ent we have taken Yamaha R15, Hero Honda‟s KARIZMAand CBZ and BAJAJ‟s PULSAR 200. The resale value of R15 is highest inpremium segment and is at 82.11%. • Reason - Performance - Quality of product -High level of SatisfactionSo we can say that in the premium segment bikesYAMAHA is leading in second handtwo wheeler markets.2. DELUXE SEGMENTProjectsformba.blogspot.com106. Projectsformba.blogspot.comCompany Model Ex- price % resale2009 20082007 valueYamaha FZ - S 67,000 N.A N.A N.AYamaha FZ 16 65,000 93.84 61,00057,000Bajaj Pulsar 180 63,653 86.40 55000 46,000 40,000HHML Hunk 56,17587.22 49,000 46,000Bajaj Pulsar 150 60,143 88.12 53000 38k-44k 30,000TVSApache RTR 60,825 88.77 54000 40,000 36,000Honda unicorn 55,954 71.4840,000 29,000 25,000 In this segment also YAMAHA is leading with 93.84% ofresale value. Dealers and brokers were giving good response for the YAMAHA FZ16, they were saying customer is satisfy with its all facilities, everybody isappreciating for its style, design and macho look. In the Deluxe segment TVSAPACHE & HMSI Unicorn is less preferred by costumer as well as Broker 3.EXECUTIVE SEGMENT HHML Hunk is alsopreferable in this segment. Models FZ were available low in number. Yamahais leading in deluxe segment. HUNK as well PULSAR 150 is giving close fight toYAMAHA FZ16.
  • 118. 107. Projectsformba.blogspot.comCompany Model Ex- % 2009 2008 2007 priceresale valueYamaha Glad ss 52,100 71.51 38,000 30,000 26,000Yamaha Glad rs52,600 72.24 38,000 30,000 26,000HHMl Super 44,450 94.48 42,000 38,000splendorTVS Flame 48,550 86.50 42,000 34,000Bajaj Discover 50,145 40,00035,000 1354 .ENTRY SEGMENTCompany Model Ex Price %resale 2009 20082007 valueBajaj Platina 35,196 78.13 27,500 25,000 22,000 100TVS Star 39,06064.00 25,000 22,000 20,000Yamaha Alba 43,890 63.79 28,000 23,00018,000HHML Splendor + 38,250 83.66 32,000 26,000 22,000Projectsformba.blogspot.com108. Projectsformba.blogspot.comHHML Passion 41,750 83.83 35,000 28,00024,000Hero Honda is leading in entry and executive segmentReasons- Reliabilityperception of the customer- Brand Image and loyalty- Focus of company on thesesegmentsIn this segment Hero Honda is leader because they have establishedthemselves as avery good established brand, customers and they are loyal to eachother, company isvery much target oriented in this segment. CHAPTER 8.0RECOMMENDATION Projectsformba.blogspot.com109. 8.0 RECOMMENDATIONS• SHOULDIMPROVE THE AFTER SALE SERVICES: During the survey we found thatYamaha is not satisfying their customers in after sales services, employees atdealership sometimes use harsh words and become rude to the customers, parts ofthe bike are not easily available in the market. This is the major drawback incapturing the market share so Yamaha should take some better steps to satisfyand retain their customers.• WEAK FOLLOW UP FROM DEALERSHIPS: Weobserved during the course of our studies that Yamaha was quite weak in followingup with prospective customers. There was no communication from Yamahashowrooms asking the customers if and when they are willing to buy their bikes.Hero Honda, Bajaj and Honda showrooms were extremely attentive in this regardand perform maximum follow up on prospective customers.Projectsformba.blogspot.com110.• MEASURES SHOULD BE TAKEN TOIMPROVE ITS DEALERSHIP: Yamaha which is trying to build a brand new imageof a high tech and stylish brand of sports bikes should take appropriate steps toshow it in their showrooms. Showrooms like Oswal Yamaha, and Shiva Yamahawere very small in size and do not reflect the quality and scale of Yamaha in themarket. Shiva motors was very dirty ambience and customer will feel that companyis not working good that‟s why they are not taking any actions toward theirshowrooms and this will definitely hamper the sales, so Yamaha should take careof these things.• POOR PROMOTIONAL CAMPAGIN: The Yamaha ads seen onelectronic and print media are absolutely out of touch with the Indian culture andthought process. If we see that Bajaj and Hero Honda has produced a very goodlink with the Indian family and customers can easily recall their Ads by well knowpunch lines like HAMARA BAJAJ or HERO HONDA DESH KI DHADKAN-DHAKDHAK. Yamaha is also focusing on this as we can see the AD of YAMAHA ALBA.An Indian consumer irrespective of their income level has a soft corner for traditionsand culture of India. Hence, all companies including market leaders like Hero
  • 119. Honda and Bajaj capitalize on this behavior of customers and design their adcampaigns keeping India in mind.• YOUTH ORIENTED PROMOTION: Yamahaclaims that they target the customers of age group 18-25 but their ad neverrepresents this so they should make such kind of AD where youth should taken inas centre of attraction. They should do this earliest to capture the market becausevast majority of people depending on ads and friends as their chief sources ofinformation about the products.• AGGRESSIVE SELLING: The Company shouldfollow an aggressive selling concept. A non-aggressive selling concept which isclearly visible in its advertising campaign which does not hit on the customer ratheraims to provide information in a subtle manner. These days they have hit on theright target as we can prove through our survey that people who purchasedYAMAHA FZS, 54% people have seen the TVCF of Yamaha before purchasing thebike. Emotional advertising which is the norm in India and which is very successfulis not followed.• INDIAN BRAND AMBASSADOR: The Company‟s brandambassador is VALENTINO ROSSY earlier we had JOHN ABRAHAM too but nowYAMAHA does Projectsformba.blogspot.com111. not have any Indian brand ambassador ascompared to its competitors like Hero Honda who have Hrithik Roshan doing theirads and M.S. Dhoni doing the job for TVS. It is necessary for Yamaha to have abrand ambassador from India to connect with the Indian customer.• VARIETY ISNEEDED TO BE PROVIDED: Yamaha at the moment has a very weak productportfolio and its products are not that visible in the market or displays in dealershipsexcept the Gladiator and now R15. The lack of product range visibility indealerships and in the media and advertisements is adversely affecting the brandof Yamaha. If a customer want to switch from one bike to another Yamaha is notproviding them options so here Yamaha should work to maintain their loyalcustomers. Yamaha should maintain and produce the bikes in quarterly or halfyearly so that customers can avail options.• BRAND EXPOSURE SHOULD BEINCREASED OR TO TAP THE NICHES : There is a large market of unsatisfiedcustomers in India. This effort would be in the direction to capture the unsatisfiedcustomers and who are willing to change their brands on bike replacement.•FOCUSSED ADVERTISEMENT ON PRODUCT USP: The maximum demandamong customers constituting the target market of India Yamaha Motors is for thepower and style features of bikes. Hence, the company should produce productskeeping the above factors in mind. Projectsformba.blogspot.com112. LIMITATIONS OF THIS SURVEY1. Specific toLakhimpur and Unnao2. Prices may vary depending upon Bike condition.3. Bikeavailable in stock was pushed by the brokers/dealers Projectsformba.blogspot.com113. CHAPTER 9.0 BIBLIOGRAPHY &REFERENCES Projectsformba.blogspot.com114. Projectsformba.blogspot.com9.1 BIBLIOGRAPHY 1) Phillip Kotler; Principlesof marketing, 7th Edition; Pearson Publication. 2) Saxena and Rajan; MarketingManagement; Tata McGraw Hill; 3rd Edition 3) Ramaswami, V.S. and Namakumari,S.; Marketing Management; Macmillan India; 2002. 4) Batra Satish & Kazmi SHH ;
  • 120. Consumer behaviour text & cases; 1999. 5) Gupta, S.P. and Gupta, M.P.; BusinessStatistics; 14th Edition; Sultan Chand Publications. 6) Robert W and Boockholdt,James L.; Factors Leading To change in consumer behavior: A Study of ManagersPerspectives; Creativity Research Journal, 11(4), Page No. 245-307; 1998.Projectsformba.blogspot.com115. Projectsformba.blogspot.com9.2 REFERENCES 1. The Yamaha Indiawebsite; 2. Overview of performance of the IndianAutomobile Industry 3.Overview of economy of automobile industry website seen on 26th June 4. OverviewOn BAJAJ AUTO, website seen on 6th July 5.Overview On HERO HONDA, website seen on 6th July 6. Overview On HONDA, website seen on6th July 7. Overview On TVSSUZUKI, website seen on 6th July 8.Overview On ROYAL ENFIELD, website seen on 6th July 9. Overview of Recent Launchesof different brands, website seen on 7 July 10. Upcoming bikes in India,seen on 6th July Projectsformba.blogspot.com116. Projectsformba.blogspot.com11. Overview of Total Turnover, seen on 6th July Overview of Domesticmarket share, seen on 6th July Overview of Production Trend of automobile industry CHAPTER 10.0 ANNEXURES 10.1QUESTIONNAIRE Projectsformba.blogspot.com118. Projectsformba.blogspot.com10.1 SAMPLE QUESTIONNAIREQUESTIONNAIRE (For FZ customers)Contact- Place: Model: cc: Date ofpurchase:1. Name: 2. Age:3. Marital status: a) married b) single4. What is youroccupation? a) Student b) Office employee c) Factory employee d) Shop owner e)Business Person f) Other: ________5. Monthly household income: a) Up toRs.10,000 b) Rs.10,001-20,000 c) Rs.20,001-40,000 d)Rs.40,001-60,000 e) Rs.60,001-80,000 f) Rs.80, 001-100,000 g) Above Rs. 100,0006. How did you buy theMC? a) Cash b) Loan [D/P: ]7. Who paid for your MC? a) Self b) Family c)Others:8. Did you considered other motorcycle while buying this model? a) Yes b)No9. Which model did you compare with? Model: cc:10. Have you seen FZ 16TVCF? a) Yes b) No11. Have you seen FZ 16 newspaper advertisement? a) Yes b)
  • 121. No12. Have you seen FZ 16 magazine advertisement? a) Yes b) No13. Do youtake information from internet blogs? a) Yes b) No Which blog?14. What was thereason you finally purchased your Bike? a) Style/design b) Mileage c) Resale valued) Reputation of maker e) Riding comfort f) Pick up g) Controllability h) newtechnology i) Maneuverability j) Riding position k) Quality l) Color/ graphics m) Bigvehicle size n) Durability o) Price p) Low maintenanceProjectsformba.blogspot.com119. q) After sales support r) others: _______15.Please specify your source of awareness for your Bike? a) TVCF b) Newspaper c)Magazine d) Showroom e) Family/Friends f) Mall display g) Road show/Test ride h)Website/Blogs i) Radio j) Hoardings k) Auto expo l) TV news m) Others_______16.Do you think Yamaha has improved after FZS and R15? a) Yes b) No17. How doesyour friend say to your Motor Cycle? a) Trendy b) Macho c) Stylish d) Low Mileagee) After sales service f) Poor Resale value g) Expensive spare parts h)Others______ Projectsformba.blogspot.com120. Projectsformba.blogspot.comCASE STUDY ON YAMAHA IssuesProjectsformba.blogspot.com121. Projectsformba.blogspot.comFrom this case study following points can bestudied : • Motorcycle industry in India (various players operating in it). • VariousProblems faced by a Multinational organization while operating in an other country.• How in an organization Japanese culture was successfully implemented in placeof Indian culture after the failure of a joint venture. • Various strategic movesadopted by an organization to breakthrough the competition or to consolidate itsposition in to Indian marketOverview of the automobile industry – the bikesegment(Reasons behind the Growth of Motorcycle industry in India)Projectsformba.blogspot.com122. Projectsformba.blogspot.comBikes or two wheelers in India cater to variousneeds of the consumers. With the choiceof the Indians improving from bicycles totwo wheelers, the Indian two-wheeler markethas seen a significant growth over theyears. Now owing a bike has become a must formost Indians. Even if people own acar they prefer to have a bike as it is veryeconomical and fuel efficient. With thegrowth in the economy the demand for twowheelers is increasing over the years. Itis one of the most dynamic industries today andwith the increasing competitioncompanies are bringing in new products withsophisticated technologies andinnovative features to capture a major pie of the Indianmarket and it‟s the consumerwho is benefited from it..With the availability of reduced consumer loans and highdisposable income the Indiantwo-wheeler industry has perceived an exceptionalgrowth over the past few yearsthereby making India the second largest market fortwo wheelers in the world only afterChina. The motorcycle has now become onemost popular mode of transportationamong the Indian middle class familiesbecause of it is cost effective, economical andeasy to navigate through the traffic.Moreover, the people have started preferring bikesinstead of scooters and mopedsand today bikes form a major part of the Indiantwo wheelers.Indian companies areone of the largest two wheeler manufacturers in the world. Thenumber one bike
  • 122. manufacturer in the world, Hero Honda is in close competition with theIndianmanufacturer Bajaj India. The motorcycle industry in India has witnessedatremendous change in the 90‟s with the invention of 4 stroke engine which makesthebikes more fuel efficient. Further companies are trying to bring in moreinnovations tomake the motorcycle ride more comfortable, safe and user friendlyand economical.In a nut shell the followings factors can be distinguished for thegrowth of motorcycleindustry in India: • Easy accessibility to cheap consumer loans• The increase in the average income of the family. • The reduction in duties andtaxes. • Convenience with regards to commuting as compared to the publictransport system. • Continuous innovations in technology making the bikeseconomic and fuel- efficient. • The first choice among youths and teenagers.AnOverview of IndustryThere are many popular and renowned motorcycles in India.The most popular amongthem are Hero Honda and Royal Enfield. Bajaj Auto Ltd. isone of them. Projectsformba.blogspot.com123. Projectsformba.blogspot.comBajaj Auto Limited, manufacturing a range ofmotorcycles and scooters, was founded in1945 on 29th November. With the onsetin the Indian market, the company was onlymanufacturing two wheelers and later italso made a benchmark in the three wheelerindustry. This popular companybecame a public limited company in 1960.Hero Honda Motors Ltd. is anotherpopular motorcycle company in India. This company,started in 1984, was asuccessful joint venture between Hero Cycles and Honda MotorCompany of Japan.Since the commencement of the company, Hero Honda hasmanufactured and soldmore than 15 million motorcycles. The company has establisheda niche in thecompetitive Indian and international market for manufacturing lowmaintenance andhigh fuel efficient motorcycles. When it comes to Indian motorcycle,Royal Enfieldhits the mind of every Indian motorcycle lovers because it isone of the premier bikecompanies in India..TVS Motor Company Ltd and Yamaha Motor India Ltd alsohave carved a niche in theIndian motorcycle market.TVS Motor Company,established by T. V. Sundaram Iyengar in 1911, is believed to bethe thirdlargestmanufacturer of two-wheeler in India.TVS came up with the first two-seatermoped in 1980 that eventually defined thedominion of personal transportation inIndia. This company entered into a joint venturewith Suzuki Motor Corporation ofJapan in 1982. This collaboration was the firstcompany to introduce a 100-ccmotorcycle in the markets of India.Yamaha Motor India Ltd. is continuously makingefforts to break down the competitivetwo wheeler market in India and win the battlewith its business strategies. The businessstrategies and principles of this companyis customer fulfillment through quality service,research and development forintroducing high end motorcycles and optimization of theworking systemThe 3.8million two-wheeler market in India included scooters, motorcycles and mopeds.Inthe late 1990s, the domestic two-wheeler industry had undergone manystructuralchanges. Motorcycles consistently gained market share from the scooterand the moped. The trend was expected to continue in 2001-02. 150cc vehiclesfrom Bajaj Auto andLML dominated the scooter market. Northern India was themajor market accounting fornearly 46% of the total scooter sales. The Indianmotorcycle market could be broadlycategorized into Indian motorcycles and Indo-Japanese motorcycles. The Hero group,Bajaj and Escorts dominated the Indo-Japanese motorcycle segment in collaborationwith Japanese vehicle
  • 123. manufacturers Honda, Kawasaki and Yamaha respectively. Entry segmentlevelMarket Segmentation The market for two wheeler can be segmented intoPremium Executivefollowing categories segment Deluxe segment124. 1. Entry Segment ( Entry Level Area) ( UP ToRS 35000)This category basically includes: People living in rural areas ,HeroHonda is marketleader In this segment as they have penetrated in to rural areascovering 550000people in rural areas only For ex : Bikes in this segment are likeCrux,CD dawn ,CDDelux ,Patina ,Star City , Star Sports , Heat 2. Executivecategory (35000 -45000)This category includes: Office goers, Family orientedpersons ,Whose Income variesbetween 2 to 3 lakhs , Finance is very important forthis segment For ex – YamahaGladiator comes in this segment as they havespecially made the sitting style of the bikeas per this segment people. Bikes in thissegment : G5 , AlBA , Passion Pro,Splendor+ ,XCD 135 ,XCD 125 , Splendor NXG,Platina . 3. Delux Segment (45000 – 70000)Pulsar basically defined thiscategoryThis category is basically characterized by: Youngsters , having passionfor bike ,College goers , Style is needed (Macho look) ,Basically known as girlfriendbikes For ex– Bikes catering to this segment are Yamaha FZS, Pulsar, CBZxtreme, TVS Apache,Honda Unicorn , GS150.4 . Premium Segment ( Above70000) For people with passion Projectsformba.blogspot.com125. “I WANT A BIKE‟‟Like IT people in the city likeBANGALOREBikes catering to this segment basically includes Yamaha R15 ,Karizma, Pulsar 220 cc ,Apache RTR .In this segment best seller is ApacheSWOTANALYSIS of THE TWO WHEELER INDUSTRYStrengthEstablished brands,Strong Brand NameFuel efficient WeaknessesStyle statement Extremely pricesensitiveConvenient in heavy traffic Short PLCCheap and affordable High R and DcostsEasy and cheap finance availabilityPatentsGood reputation amongcustomersOpportunities ThreatsGrowing premium segment The Rs.1 LakhcarIncreasing dispensable income Cut throat competitionEnvironmental concernsIncreasing number of players in the marketExports increasing Rising raw materialcostsVery strong demand in the 100cc. segment Increasing rates of interest onfinancedominated by limited players.COMPETITORS ANALYSIS (PlayersOperating in The Market)1. Bajaj Auto Ltd.Established in 1945 Bajaj Auto Ltd wasincorporated as a trading company. Till 1959,they imported scooters and three-wheelers from Italy and sold them in India. Thecompany got a production license inthe year 1959 and fastened a technicalcollaboration with Italian PIAGGIO in1960.Bajaj Auto Ltd. is one among Indias top ten companies in terms of marketcapitalization Projectsformba.blogspot.com126. Projectsformba.blogspot.comand among the top five in terms of annualturnover.Today, the company has become a market leader. These days, Bajaj AutoLtd. hasstarted offering products in all segments (mopeds & scooterettes, scooters,motorcycles,three wheelers).2. Hero Honda Motors Ltd.Hero Honda Motors Ltd. isa result of the joint venture betweenIndias Hero Group and Japanese HondaMotors Company inthe year 1983. This joint venture has not only created theworldssingle largest two wheeler company but also one of themost successful joint
  • 124. ventures worldwide. Hero Honda isglobally known of being the most fuel-efficientand the largestCBZ selling Indian Motorcycle Company. This is a relationshipsoharmonious that Hero Honda has managed to achieveindigenisation of over 95percent, a Honda record worldwide.The company is committed to provide thecustomer with excellence. A rich backgroundof producing high value products atreasonable prices led the worlds largestmanufacturer of motorcycles to collaboratewith the worlds largest bicycle manufacturer.During 80s, Hero Honda became thefirst company in India to prove that it was possibleto drive a vehicle withoutpolluting the roads.The unique features like fuel conservation, safety riding coursesand mobile workshopshelped the group reach in the interiors of the country. Well-entrenched in the domesticmarket, Hero Honda Motors Ltd. turned its attentionoverseas, and exports have beensteadily on the rise.3. Honda Motorcycles &Scooters India Private LimitedEstablished in 1999, the Honda Motorcycle & ScooterIndia Pvt. Ltd. (HMSI) is a whollyowned subsidiary of Honda Motor Company Ltd.,Japan and is located at Manesar,Haryana. The companys most well known brandis the Honda Activa that revolutionizedthe Indian scooterette market in terms ofdesign and features. The company exportsscooters to the European Union.4. TVSMotorTVS Motor is a leading and trusted two wheeler company began withthevision of TVS Scooty the founder of the Sundaram Clayton Group,the late T.S.Srinivasan - to design, develop and produce anaffordable moped for the Indianfamily. This vision was realized in1980 when TVS 50, Indias first two-seater mopedrolled out of thefactory at Hosur in Tamil Nadu, Southern India.The company hasbeen known for its ruggedness and reliability.TVS Motor has continually worked oninnovation of the motorcyclesegment along with two wheeler range. The SuzukiShaolin,developed by TVS Suzuki is Indias first 5-speed, 140 cc motorcycle.Another example of Projectsformba.blogspot.com127. Projectsformba.blogspot.comthe company success is TVS Scooty, a 60 ccScooterette which keep one step ahead ofits time in India..The company is the thirdlargest two-wheeler manufacturer in India and ranks among thetop ten globally.The company was the first in India to launch 2-seater 50cc moped and100cc Indo-Japanese motorcycles. At present TVS Apache, TVS Victor, TVS Scooty,TVSCentra and TVS Fiero are the popular bikes in Indian market.5. Royal EnfieldMotors Ltd.Established in 1955, Royal Enfield was the brand of theEnfield CycleCompany. Royal Enfield is one the oldestbike on the road. The company is wellknown forproducing motorcycles, but they also produce bicycle,stationary engines,lawnmowers and rifle small parts forthe Royal Small Arms Factory in Enfield. In1990, RoyalEnfield entered into a strategic alliance with the EicherGroup, and latermerged with it in 1994. The annualturnover of the company is Rs.10 billion. TheEicher Group has a range of interests inthe automotive industry, including smalltrucks, tractors, exports, automotive gears,management consultancy andcartography.The corporate philosophy of Royal Enfield Motors Ltd. is built aroundquality andunflinching loyalty to the customer, a few reasons why the legendaryBullet is not just abike but a motorcycling icon. The ruggedness and reliability of thebike is endorsed bythe army, the police, the paramilitary forces and over 500institutions which form part ofthe die-hard customer base of the Bullet, dubbed the"Rajagadi", or royal vehicle.At the end we can say that all the above are giving avery tight competition toINDIA YAMAHA MOTORS in India. To overcome these
  • 125. competitors YAMAHA isconstantly doing R & D about its product and market aswell. SWOT ANALYSISGROUP PLAYERS ATTRIBUTES COMPETITIVEFORCESA Bajaj, Hero Honda Highly diversified - High buyer power Aggressive -High competitive rivalry promotion - High entry barriersB TVS Selectively diversified- Low entry barriers Aggressive - Narrow product lines imply Promotion thataggressive promotions Projectsformba.blogspot.com128. can eat into market shareC Honda, YamahaSelectively diversified - High threat of substitution Moderate Promotion (Rs 1 lakhcar) - Low entry barriersD Royal Enfield Highly specialized - Low buyer power –high Low Promotion brand loyalty - Product diversification will imply risk of branddilution YAMAHA (AN INTRODUCTION)Yamaha made its initial foray into India in1985. Subsequently, it entered into a 50:50joint venture with the Escorts Group in1996. However, in August 2001, Yamahaacquired its remaining stake as well,bringing the Indian operations under its completecontrol as a 100% subsidiary ofYamaha Motor Co., Ltd, Japan.India Yamaha Motor operates from its state-of-the-art-manufacturing units at Faridabadin Haryana and Surajpur in Uttar Pradesh andproduces motorcycles both for domesticand export markets. With a strongworkforce of 2000 employees, India Yamaha Motor ishighly customer-driven andhas a countrywide network of over 400 dealers.The company pioneered the volumebike segment with the launch of its 100 cc 2-strokemotorcycle RX 100. Since then,it has introduced an entire range of 2-stroke and 4-stroke bikes in India. Presently,its product portfolio includes Crux (100cc), Alba (106cc)and Gladiator(125cc).VISIONTo establish YAMAHA as the "exclusive & trusted brand" ofcustomers by "creatingKando" (touching their hearts) - the first time and every timewith world class products &services delivered by people having "passion forcustomers".MISSIONWe are committed to:Be the Exclusive & Trusted Brandrenowned for marketing and manufacturing ofYAMAHA products, focusing onserving our customer where we can build long termrelationships by raising theirlifestyle through performance excellence, proactive design& innovative technology.Our innovative solutions will always exceed the changingneeds of our customersand provide value added vehicles.Build the Winning Team with capabilities forsuccess, thriving in a climate for action anddelivering results. Our employees arethe most valuable assets and we intend to developthem to achieve internationallevel of professionalism with progressive careerdevelopment. As a good corporatecitizen, we will conduct our business ethically andsocially in a responsible mannerwith concerns for the environment.Grow through continuously innovating ourbusiness processes for creating value andknowledge across our customers therebyearning the loyalty of our partners & increasingour stakeholder value.CORECOMPETENCIESCustomer #1We put customers first in everything we do. We takedecisions keeping the customer inmind.Challenging SpiritProjectsformba.blogspot.com129. Projectsformba.blogspot.comWe strive for excellence in everything we do andin the quality of goods & services weprovide. We work hard to achieve what wecommit & achieve results faster than ourcompetitors and we never give up.Team-workWe work cohesively with our colleagues as a multi-cultural team built on trust,respect,understanding & mutual co-operation. Everyones contribution is equally
  • 126. important forour success.Frank & Fair OrganizationWe are honest, sincere, openminded, fair & transparent in our dealings. We activelylisten to others andparticipate in healthy & frank discussions to achieve theorganizationsgoals.OVERVIEWFOUNDED: July 1, 1955CAPITAL: 48,302 million yen (as ofMarch 31, 2008)PRESIDENT: Takashi KajikawaEMPLOYEES: 46,850 (as ofDecember 31, 2007)PARENT: 9,019 (as of December 31, 2007)SALES: 1,756,707million yen (from Jan 1, 2007 to Dec 31, 2007)PARENT: 799,209 million yen (fromJan 1, 2007 to Dec 31, 2007)SALES PROFILESales (%) by product category(consolidated)Sales (%) by region (consolidated)SWOT ANALYSIS FOR INDIAYAMAHA MOTORS Projectsformba.blogspot.com130. Projectsformba.blogspot.comStrength • Size and scale of parent company. •Effective Advertising Capability Weaknesses • Committed and dedicated staff. •Small showrooms. • High emphasis on R and D. • Not much emphasis onaggressive selling. • Experience in the market. • Weak product diversity. •Established brand. • Established market channel. • Power, Speed &AccelerationOpportunities • Growing premium segment. Threats • Global expansioninto the Caribbean • Cut throat competition & Central America. • Increasing numberof players in the market • Expansion of target market (include • Rising raw materialcosts women). • Increasing rates of interest on finance • Increasing dispensableincome. • 1st mover advantage.Beginning Of A Journey(Beginning Of a Marriage)(Escort Yamaha Tie The Not)In 1985, Yamaha Motors entered into a technicalsupport agreement with Escorts, andstarted local production of Yamahamotorcycles. In 1995, Yamaha and Escorts signedanother contract, establishingEYML to manufacture and market motorcycles in India.Each company invested50% of the capital for the original venture EYML produced awide range ofmotorcycles for the urban and rural markets at its Faridabad (Haryana)and Surajpur(Uttar Pradesh) plants. The joint venture manufactured Rajdootmotorcycles atFaridabad and the RX and four-stroke YBX series at Surajpur... From 1995 to early2000, EYML took several steps to become the number one player inIndias two-wheeler market. However, in mid 2000, Escorts divested 24% equity toYamahaMotors and as a result, Yamaha Motors became a majority stakeholder intheventure (74:26). In May 2001, Escorts sold its remaining 26% equity, thus,exiting fromthe joint venture.Role of Escorts Group In the Joint VentureThe role ofthe Escorts group was always minuscule since Yamaha has been graduallyhikingits stake in the joint venture. The Nandas of the Escorts were only promoters intheJV They were just on the drivers seat & Yamaha‟s Technology was not the partoftheir expertise .Reason For Break up : Projectsformba.blogspot.com131. Projectsformba.blogspot.comThe macro cause for the change was EscortsYamaha‟s sliding share in the MotorcycleMarket. In the light of growing competition,both parties deemed it fit to part ways.Hari prashad Nanda of Escort Group thenidentified four thrust areas for Escorts-agri-business, telecom, software andhealthcare. The idea behind giving Yamaha Motors themajority stake in the jointventure was to focus more on the four thrust areas. AsYamaha‟s technology wasnot their area of specialization.With the change in the equity pattern, YamahaMotors would control the management ofthe joint venture. Yamaha Motors wouldnow hold 100% stake in the company.Commenting on Escorts exit from the joint
  • 127. venture, an official said, "We would like to getout of businesses where we are not inthe drivers seat and in the case of Yamahatechnology it was not a part of ourexpertise." He said Escorts would now concentrate onagri-business, telecom andhealthcare..The first ever Press release made by Y.M.I was as follows :“Anagreement has recently been reached between Yamaha Motor Co., Ltd. (YMC)andits joint venture partner in India, Escorts Limited (Chairman and ManagingDirector: Mr.Rajan Nanda. Location: Faridabad, suburbs of New Delhi) under whichYMC will acquireall of the 26% of the stock presently held by Escorts Limited in thetwo companiesmotorcycle manufacturing and marketing joint venture, YamahaMotor Escorts Ltd.(YMEL).The aims of this move to make Yamaha Motor Escorts a100% YMC subsidiary are toincrease the overall speed of managerial and businessdecisions, to improve productdevelopment capabilities and production efficiency,while also strengthening themarketing organization. Plans call for the change in thecompanys name and otherprocedures to be completed by the end of June.Inaddition to YMC acquiring Escorts 26% of YMEL stock, the companys name willbechanged to Yamaha Motor India Private Limited (YMI) and concerted efforts willbemade to heighten its competitiveness in the Indian market and promote thespread of theYamaha brand with target themes of developing products with greaterappeal and adistribution network that can respond more quickly to user needs.”EndOf Honey Moon After the Failure of a Joint Venture The next logical progression forYamaha wasobviously assuming full control of Indian operationsAs a company ,YMI is only 7 years old in the Indian Motorcycle market . HoweverYamaha has hada presence in this sector for over 21 years ever since it entered into atechnicalcollaboration with Escorts motors in 1985 .Ever since the establishment of the firsttechnical assistance agreement between thetwo companies in 1985, YMC andEscorts Limited have built a cooperative relationshipdedicated to the manufactureand sales of Yamaha brand motorcycles in anenvironment of growing motorcycledemand in the Indian market. In November of 1995,the two companies establishedthe joint venture company Escorts Yamaha MotorLimited, based on a 50-50 capitalinvestment. In June of 2000, that investment ratio waschanged to 74% for YMCand 26% for Escorts Limited . Projectsformba.blogspot.com132. Projectsformba.blogspot.comFormation of “Yamaha Motor India PrivateLimited” (YMI)After the separation from Escorts Yamaha undertook a lot ofmeasures to consolidateitself in to Indian market YMC assumed managerial controlof the company with the name being changed toYMEL and undertook numerousmeasures to build the companys motorcyclemanufacturing and marketingoperations.Various Strategic Measures Undertaken to consolidate in toIndianMarketAfter Escorts hugely successful motorcycle brand, Rajdoot, the group hadnot been ableto replicate the success with the offerings under the Yamaha brand.While the YamahaRX 100 model, which before being withdrawn due to newemission norms, seemed toachieve considerable success, the other modelsincluding the Yamaha YBX, its first four-stroke bike, have only received lukewarmresponse from the marketYamaha believed that operating on an individual basiswould help in building its separateBrand Name. A strategy was formulated in orderto facilitate new product launches and the entireMarketing policy wasoverhauled.As part of the strategy, Yamaha Motors also planned to convert its Indiaoperations intoa sourcing base for parts and fully-built two-wheelers.In essence the
  • 128. decision to separate was on grounds of mutual consent by both parties. Itmadebusiness sense to part ways now and the timing could not have been better inthelight of prevailing competitive environment.Introduction of Japanese culture onIndian soilYAMAHA Motor Company of Japan renamed its wholly-owned Indiansubsidiary(Yamaha Motor India Pvt Ltd), after buying out the entire equity holdingof the Escortsgroup in the erstwhile joint venture Yamaha Motor EscortsLtd.Following are the main 8 changes which have been implemented after YamahaPartedits way from Escorts 1. Administrative changes: Each department now has aJapanese representative called Deputy General Manager. As far as hierarchy in thetop brass is concerned, the C.E.O, President, Vice President and Associate VicePresident are all now Japanese. The first Indian involvement in the topmanagement begins at General Manager Level of individual departments. 2.Eliminating Indian Culture: As long as Escorts had a say in the organization,atypical Indian Culture prevailed Employees used to work in the office at their ownwill , used to walking in at 9:15 for a shift which starts at 9:00.But After theProjectsformba.blogspot.com133. separation from Escorts full Japanese culturewas implemented in the organization in Place of Indian culture .Every employeehas to Remember: • Switch off A.Cs, fans and lights. • Keep the gangway clear ofany hindrances. • Put yours tools in appropriate closet. • Keep your worksurroundings clean and hygienic. • Call each other by using the word “SAN” whichis a word used to give the respect to each other , each employee of theorganization call each other by using the word SAN which means “JI” in Japanese3. Japanese work ethos – They are built around a single minded devotion todiscipline.No employee is offered preferential treatment and some rules apply foreverybody. Ifyour Japanese manager walks in at 8:45 for a 9‟o clock shift, imaginethe example it setsfor subordinates. That‟s exactly what happened at YamahaMotors India strict financialpenalties were put in place for those who reported late atwork.4. Developing Team Spirit - every employee was given the same uniform.Regardless ofthe fact that whether you are a Foreman or Chief General manager,everyone isexpected to turn up in the same uniform. The obvious benefits are anincreased sense ofcamaraderie and team spirit.5. Life Time Involvement with theEmployee : Japanese Companies believe in life timeinvolvement with it‟semployees. In return, they expect their employees to treat theorganization as theirown family6. Japanese work on the premise- “ A happy Employee is a productiveemployee” Thestandards for employees safety and general sanitation are same inIndia as in Japan.After Yamaha took over, an entire new department was created,just to look aftergeneral7. Quality Conscious: Japanese are a quality consciousbreed who has traditionallybelieved that a technologically superior product will sellitself against any competition.After Yamaha took over, every six months, a batch of4-5 employees is selected to betrained at the Yamaha production plant in Japan. .They also get a first hand experienceof Japanese work culture and discipline.8.Quality Circles: A concept, originally pioneered by the Japanese, wassuccessfullyimplemented at Yamaha Motors IndiaQuality control, or qualityassurance as they like to call it, is something Japanese areobsessed with. Qualityassurance became a key performance area only after Yamahatook over. During theera of Escorts when Yamaha was just a technical collaborator,professionals from
  • 129. Japan visited only to collect date regarding rejection rate, efficiency,Projectsformba.blogspot.com134. Projectsformba.blogspot.comvolumes per hour etc. Now, realizing that profitlevels, quality assurance is given it‟s dueshare of importance.So the above 8 pointsare showing how an organization has to cope up with thechanging conditions, as alot of changes are required when such an event takes place inan organization, andYamaha is a perfect example in understanding the strategies anorganization has toform in order to survive in the odd circumstances.The culture change which cameas a shock two years ago has now become a norm.Discipline has become a way oflife. The professional approach which Yamahaintroduced is no more imposed onthe workers. It has become a part of their socialconditioning at theworkplace.Yamaha is still to turn the corner in the highly competitive motorcyclemarket. However,Yamaha has recognized the enormous potential of the marketand it‟s penchant toswitch brands according to latest trends and technology. Theprofits are showing anupward trend recently. The progress made is painstakinglyslow but sure Employees atall levels showcase a deep rooted belief that theircompany can once again repeat thesuccess stories of mid 1990s.Various RecentStrategic Moves Adopted By theOrganization To Break Through The Competition &ToConsolidate in to Indian MarketTHE YAMAHA STRATEGY IN INDIAYamaha hasshifted its focus from the lower end segments to the premium segment ofbikes. Itaims to provide its customers the full range of its engineering marvels thatmakeYamaha the company that it is. Yamaha has a very strong focus on thetechnicaldepartment, the result of which can be seen with Yamaha comfortablyleading theconstructor‟s championship in the Superbikes racing with ValentinoRossi and ColinEdwards as their riders.Yamaha has aimed to become the No.1 incustomer satisfaction and is looking forwardto providing the customer with an„experience‟ with its products.The target market of India Yamaha Motors is theyoung and enthusiastic 18-25 yr. oldswho are willing to try taking the not so muchtreaded path of buying the „sports bike‟rather than a „utility two wheeler‟. Theseyoung guns are very conscious of the stylequotient and look forward to their ridebeing a personality statement.With the increasing dispensable income in India andgrowing middle and upper middleclass segment Yamaha is sure to find manyprospective customers. With news of Indiabecoming the breeding ground formillionaires Yamaha has certainly identified anopportunity and has grabbed ithands down.So the Yamaha‟s Strategies to get success are : 1. Focus OnPremium Segment of Indian Society. Projectsformba.blogspot.com135. 2. Focus on Style & Racing (as It Is aiming atyouths (Between the age of 18 – 24), as these young guns are very conscious ofthe style quotient and looking forward to their ride being a Personality Statement. 3.To make a trading path of buying the “Sport Bike” rather than a “utility TwoWheeler”. 4. To Become No. 1 in customer Satisfaction and is looking forward toproviding the customer with an „experience‟ with its products. 5. Strong Focus Ontechnical Department. 6. To come up with as much as new model as it could so asto provide customer with a wide variety of choice. 7. The business strategies andprinciples of this company is customer fulfillment through quality service, researchand development for introducing high end motorcycles and optimization of the
  • 130. working systemTHE 4 P‟S OF INDIA YAMAHA MOTORSProduct : India YamahaMotors has recently launched its sports bike R15 and FZS inthe 150cc. The bikesin the premium segment include MT01 and YZF R1. Yamaha isbringing its latesttechnologies to India and aims to come up with a new product for theIndian marketevery quarter.The reliability and riding quality of a Yamaha have already beenestablished through itsearlier products.Price: The Yamaha range of products hasbeen very competitively priced and theprices of its premium segment bikes MT01and YZF R1 are priced much below anypresent or prospective competitor in thesegment at Rs.10.5 lacs.Its other products like the R15 has also been pricedoptimally looking at thespecifications of the bike. The bike despite being only 150cc provides around 22 BHP ofpower, more than any other bike in the 150-220cc.bracket. The bike has also broughtthe liquid cooled engine technology to India andother features like the styling etc. arealso quite new for the Indian market andhence considering what it gives you it is abargain at Rs.97, 500.Projectsformba.blogspot.com136. Projectsformba.blogspot.comPromotion: Yamaha has been constantly loosingmarket share over the last fewyears and has thus decided to change its brandimage with change in its marketstrategy. The company now wants to be known forits style and speed. It looks to beknown as a sports bike manufacturer and not asan economy bike segment player.Taking these factors into consideration thecompany has started a complete makeoverof its image. The recent R15 and FZSads on numerous channels on TV and other adson both electronic and print mediavindicate the point.The company has also opened „Yamaha bike stations‟ which arecompany ownedshowrooms and completely symbolize the brand image thatYamaha wants to achieve inIndia.Place: India Yamaha Motors has adopted a twotier marketing channel consisting ofthe Primary dealers at tier1 and the secondarydealers or retailers at tier2. In addition tothese two tiers there are also the „companyowned showrooms‟ and the multibrandoutlets.In order to Execute its AboveStrategies Yamaha has Recently Launched ItsTwo Brand New Motor Cycles Fzs &R15 Which have been highlyappreciated by the Indian consumers , Following arethe main features ofits new bikes .RECENT LAUNCHYAMAHA FZ-SYamaha FZ-S150cc, a recently launched bike by the industry giant Yamaha. After thegrandsuccess of FZ-16 Yamaha has finally launched its modified version (FZ-S) inIndia.This fabulous bike is equipped with all the necessary features one may think of.Itstands ahead in style and performance not only in its segment but beyond. Thisbike isbest suited for those who want elegance and power in one. It is designedandengineered with the capacity for active and aggressive enjoyment of around-town streetriding and styling, bringing a sense of pride for the owner of the bike. Itis especiallydesigned to satiate riders desire for style and fashion. It is popularlyreferred as the“Stylish Macho Street Fighter” (Lord of the Streets).The primaryfeatures of Yamaha FZ-S include: Projectsformba.blogspot.com137. Projectsformba.blogspot.comYAMAHA YZF R15This is the latest offering fromthe Yamaha stable. The YZF R15 is the first truly sportsbike launched in India. Thelooks and design have been done keeping the bigger R1 inmind and hence theresemblance.The bike is priced at Rs.97,500 (ex-showroom) across India. It boastsof the first liquidcooled 4 valve engine in the two wheeler category which gives it
  • 131. better performance andpower. It is a 150cc bike having enough power to bringchills to the rider when he revsup the accelerator.In addition to the above Launchedbikes Yamaha is planning to roll out Following BikesToo in the near future theseare:FUTURE LAUNCHES Projectsformba.blogspot.com138. Projectsformba.blogspot.comYAMAHA R125The most advanced 125production super sportmachine that Yamaha will launch in 2009 will beYZF-R125.This radical, high-revving, fuel-injected125 is the work of the same engineers whocreatedour legendary YZF-R1 and YZF-R6 super sportbikes.Expected In: July,2009YAMAHA GLADIATOR 165Yamahas 165cc Gladiator will develop around16.5PS and complete a 0 – 60 sprints in less than 5 seconds and it believed thatYamahahas already sent the bike for homologation and will launch its mid NextYear. Bike wasfirst displayed in last year‟s Auto Expo.Expected In: July, 2009ConclusionAfter The Separation Main focus of Yamaha has been to Capture theIndian MarketThrough its Product Which are Best In terms Of style & Design and istrying to achievethe target of 14% which it has laid down for the coming years itsRecent Launched BikeFzS & R15 have shaken the market leader Like Bajaj & HeroHonda & is giving them atough competition & soon going Launch Few More Bikesin the market. But in a countrylike India where customer generally appreciatesmileage it becomes necessary for acompany like Yamaha which produces Bikeswhose prices are towards the higher end tofocus on other factors too whichinfluence the consumer choice of Product like Prices ,After sale services and Manymore. Projectsformba.blogspot.com139. Projectsformba.blogspot.com140. SYNOPSIS Intern‟s Name: Mr. HemrudraPratap Singh Industry Guide: Mr. Mohit Sharma Faculty Guide: Mr. Bipin SinghObjective: The objective of our study was to know the market scenario of Secondhand bike industry, to know the customer perception and satisfaction with aftersales services regarding launching of new bikes FZ & FZS by Yamaha & todetermine the factors influencing the choice of customers regarding bikes.Findings: We found that product of Yamaha is superb but consumers INDIA are notsatisfied with the after sales services and pricing of the product.YAMAHA Therewere significant findings in the customer perception &MOTORS satisfaction studyshowing the impact of Gender, Income and Age on their choice of brands and otherfeatures in the bikes. Implications: The study would be of great help to the companygiving out valuable insights about to improve their after sales services and wouldhelp in planning to reduce the prices as well as about the factors affecting customerchoices. Perception of Industry Guide: Our industry guide was extremelyknowledgeable and helped us in understanding the dynamics governing theindustry. He was a constant guide in every step towards the completion of thisproject. He not only provided us with subjective knowledge but also emphasized onus being groomed for the corporate world and follow the virtues of discipline,dedication and righteousness towards the path of success.Projectsformba.blogspot.com141.