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Projectsformba.blogspot.comA COMPARISON STUDY ON THE TOP ‘THREE’ TWO WHEELER COMPANIES                                    ...
Projectsformba.blogspot.com                                 DECLARATION This is to certify that this research project titl...
Projectsformba.blogspot.com                                 CERTIFICATE  This is to certify that …………………., student of Chri...
Projectsformba.blogspot.com                              ACKNOWLEDGEMENTIt is with immense satisfaction and pride that, I ...
Projectsformba.blogspot.comContentsDECLARATION...............................................................................
Projectsformba.blogspot.com   2.12 SWOT Analysis.............................................................................
Projectsformba.blogspot.com   3.2 STATEMENT OF PROBLEM.......................................................................
Projectsformba.blogspot.com  6.1 DEMAND AND GROWTH DRIVERS...................................................................
Projectsformba.blogspot.comProjectsformba.blogspot.com   pg. 9
Projectsformba.blogspot.com1.1 Introduction to Indian Two-wheeler Sector:The Indian automotive industry consists of five s...
Projectsformba.blogspot.comprevious. The two-wheeler sales have witnessed a spectacular growth trend since the midnineties...
Projectsformba.blogspot.comviz. scooters, motorcycles and mopeds. In India there are some MNC’s and Indian companydealing ...
Projectsformba.blogspot.com                       Yamaha Motor Corporation is the auto mobile company of Japan(1953) which...
Projectsformba.blogspot.com1.3 Profile Change in Indian Two-Wheeler IndustryThe demand shift from scooters to motorcycles ...
Projectsformba.blogspot.comShift from Scooter to Motorcycle                                                               ...
Projectsformba.blogspot.comsecond-hand car prices will lead to pressure on the two-wheeler majors who plan to releasehighe...
Projectsformba.blogspot.com                       2.1 COMPANY PROFILEProjectsformba.blogspot.com                  pg. 17
Projectsformba.blogspot.com2.2 Hero Honda Motors Limited       Hero Honda Motors Limited was established in 1984, as a joi...
Projectsformba.blogspot.com       The joint venture between Indias Hero Group and Honda Motor Company, Japan hasnot only c...
Projectsformba.blogspot.comcustomers and deliver value at different price points, but has also created a loyal communityof...
Projectsformba.blogspot.com       Hero Honda is a world leader because of its excellent manpower, provenmanagement, extens...
Projectsformba.blogspot.com    Hero Hondas the first manufacture to launch eco friendly bikes with 4-stroke engines.     ...
Projectsformba.blogspot.com      Respect for Human Beings.      Is a responsive organization?      Is a boundary less o...
Projectsformba.blogspot.com   •   HeroHonda Pleasure                                           Hero Honda Pleasure        ...
Projectsformba.blogspot.com   •   Achiever                                                      CD Dawn   •   CBZ XTREME  ...
Projectsformba.blogspot.com                                     Splendor +                                                ...
Projectsformba.blogspot.com   •   Karizma       ZMR2.9 BAJAJ auto ltd       Since 1986, there is a technical tie-up of Baj...
Projectsformba.blogspot.com        KHI has given the world its legendary series of 600-1200cc Ninja and 1600 Vulcanbikes. ...
Projectsformba.blogspot.combelieve in providing the customer value for money and keep an special eye upon quality,safety, ...
Projectsformba.blogspot.com    High export to domestic sales ratio.    Great financial support network (For financing th...
Projectsformba.blogspot.com    Threat of cheap imported motorcycles from China.    Margins getting squeezed from both th...
Projectsformba.blogspot.com       Last quarter, Bajaj had impressive performance growing at a rate of 20%+ when thelargest...
Projectsformba.blogspot.com   •   DISCOVER DTS-i   •   PLATINA 125   •   PLATINA 100   •   AVENGER 200 DTS-i   •   KAWAZAK...
Projectsformba.blogspot.comDISCOVER135 DTS-i                                      Bajaj Platina                           ...
Projectsformba.blogspot.com2.15 Current SituationCurrent Performance.C BAL is currently outperforming the industry growth ...
Projectsformba.blogspot.com2.16    The Industry Analysis - Five Forces Analysis-BALExternal EnvironmentIndustry: Automobil...
Projectsformba.blogspot.comor come in consideration while selecting a two-wheeler, cycles do never even compete withthe lo...
Projectsformba.blogspot.commileage. Larger wheelbase, high ground clearance and high mileage were the selling factorsand i...
Projectsformba.blogspot.comOver the next few months, the company will set-up separate sales channels for every segmentof i...
Projectsformba.blogspot.comBetter value proposition: Shareholder interests may be better served if the cash is retained to...
Projectsformba.blogspot.comrecently participated in a large auto exhibition in Brazil and found good consumer acceptanceto...
Projectsformba.blogspot.comBased on their own brand of globalization, they have built their distribution network over 60co...
Projectsformba.blogspot.comFurther, the growth in the motorcycle segment was dependant on continuing favorable marketcondi...
Projectsformba.blogspot.comBajaj      Bajaj Kristal DTSi           XCD 135 DTSi           Pulsar                       XCD...
Projectsformba.blogspot.comEstablished                    20th Aug, 1999Place                          Manesar, District G...
Projectsformba.blogspot.comhighest quality at a reasonable price, for worldwide customer satisfaction. In addition, theCom...
Projectsformba.blogspot.comWeakness    Less number of service center    Market share very less as compare to there compe...
Projectsformba.blogspot.com          •    ACTIVA          •    AVIATOR       MOTORCYCLES:   •   CB TWISTER   •   SHINE   •...
Projectsformba.blogspot.com                    CB Twister                                                        CB TWISTE...
Projectsformba.blogspot.com                                         UNICORNUNICORN                         Manufacturer Ho...
Projectsformba.blogspot.comThe automobile industry has seen an overwhelming growth in liberal India. Almost every bigmanuf...
Projectsformba.blogspot.comyear. There’s more: the scooter market grew in double digits last fiscal, outperforming thetwo-...
Projectsformba.blogspot.com2.32 Strategy of HMSI    Honda to exit geared scooter segment in India, the Japanese two-wheel...
Projectsformba.blogspot.com    Chennai-based TVS Motors, makers of Scooty, are developing a premium un-geared       scoot...
Projectsformba.blogspot.com    Bikes             43      18     55     0.33   Question                                    ...
Projectsformba.blogspot.com                                    RELATIVE MARKET SHARE                         STAR         ...
Projectsformba.blogspot.comMARKETGROWTHProjectsformba.blogspot.com   pg. 57
Projectsformba.blogspot.com                              3.1 RESEARCH DESIGN3.2 STATEMENT OF PROBLEM       One of the majo...
Projectsformba.blogspot.com       The above exhibit shows the De-growth in the industry.3.3 HYPOTHESISProjectsformba.blogs...
Projectsformba.blogspot.comNull Hypothesis, H0 : There is a negative growth in the two wheeler industryAlternative Hypothe...
Projectsformba.blogspot.comThe sample size is the total number count of the number of total respondents covered for theres...
Projectsformba.blogspot.com3.10 SECONDARY DATA       Secondary data would be collected from internet, industry journals an...
Projectsformba.blogspot.comProjectsformba.blogspot.com   pg. 63
Projectsformba.blogspot.com                       4.1 RESPONDENT’S PROFILE4.2 SEX                              TABLE 3: SE...
Projectsformba.blogspot.com       88 males and 12 females were covered during the survey.Hence 88% of the       respondent...
Projectsformba.blogspot.com                                       MARITAL STATUS                                     MARRI...
Projectsformba.blogspot.com   Among the 100 people surveyed ,68% were students,20% were self-employed and   remaining 12% ...
Projectsformba.blogspot.comAGE GROUP                        NUMBER OF                   PERCENTAGE OF                     ...
Projectsformba.blogspot.com4.6 INCOME    MONTHLY                     NUMBER OF                     PERCENTAGE OF   INCOME(...
Projectsformba.blogspot.comProjectsformba.blogspot.com   pg. 70
Projectsformba.blogspot.com                              5.1 DATA ANALYSIS5.2   OWNERSHIP OF TWO WHEELER       YES        ...
Projectsformba.blogspot.com       ANALYSIS:       80% of the respondents own a two wheeler and 20 % of them do not have on...
Projectsformba.blogspot.com                                  MOST VIEWED ADS             HERO HONDA, 50        50        4...
Projectsformba.blogspot.com       ANALYSIS:       In terms of influence of ads on the respondents, Bajaj comes with 55% , ...
Projectsformba.blogspot.com       ANALYSIS:       In terms of recall ,50% of respondents were for Bajaj stunt ad, then 35%...
Projectsformba.blogspot.comBILLBOARDS                        5%INTERNET                          7%ANALYSIS:Among the comm...
Projectsformba.blogspot.com       INTERNET               65%       AUTOMOTIVE             10%       MAGAZINES       COMPAN...
Projectsformba.blogspot.com       model before going to any dealer. Company dealers provide specific information and      ...
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
A comparison study on the top ‘three’ two wheeler companies in india
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  1. 1. Projectsformba.blogspot.comA COMPARISON STUDY ON THE TOP ‘THREE’ TWO WHEELER COMPANIES IN INDIA DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION BY UNDER THE GUIDANCE OF PROF. …………………………… FACULTY GUIDE- CUIM CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT BANGALORE-560029Projectsformba.blogspot.com pg. 1
  2. 2. Projectsformba.blogspot.com DECLARATION This is to certify that this research project titled “A COMPARISON STUDY ON THE TOP ‘THREE’ TWO WHEELER COMPANIES IN INDIA”is an original work carried out in the 5th and 6th trimester of my MBA(2008-2010) underthe guidance of ……………………... This project is made exclusively as a part of mycurriculum and will not be submitted in future to any other university or institution.Date :Projectsformba.blogspot.com pg. 2
  3. 3. Projectsformba.blogspot.com CERTIFICATE This is to certify that …………………., student of Christ University of Management, Bangalore, has completed this research project titled “A COMPARISON STUDY ONTHE TOP ‘THREE’ TWO WHEELER COMPANIES IN INDIA” under my guidance from in partial fulfillment of the Masters of Business Administration degree. ……………………………………….. PROFESSOR ,MARKETING DEPT. CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT BANGALOREProjectsformba.blogspot.com pg. 3
  4. 4. Projectsformba.blogspot.com ACKNOWLEDGEMENTIt is with immense satisfaction and pride that, I am completing my Dissertation Project report. I therefore, would like to stop for a few moments and thank Christ University Institute of Management, Bangalore and …………….. for allowing me to take up my DissertationProject on comparison study of two wheeler companies in India . I am also very thankful for his extensive support, timely guidance and regular monitoring our progress and providing valuable inputs from time to time. Sincere thanks to all the respondents, for parting their valuable time and being so patient insharing the relevant information. I also express my overriding debts and thanks to my friends, without whose help it would have been impossible to complete my project. Last but not the least; I would like to thank all those concerned people who have directly or indirectly contributed in the completion of this entire dissertation report.Projectsformba.blogspot.com pg. 4
  5. 5. Projectsformba.blogspot.comContentsDECLARATION........................................................................................................................................2CERTIFICATE...........................................................................................................................................3ACKNOWLEDGEMENT............................................................................................................................4 1.1 Introduction to Indian Two-wheeler Sector:............................................................................10 1.2 Evolution of Two-wheeler Industry in India:..............................................................................11 1.3 Profile Change in Indian Two-Wheeler Industry........................................................................14 1.4 Key Earnings Drivers..................................................................................................................152.1 COMPANY PROFILE .......................................................................................................................17 2.2 Hero Honda Motors Limited......................................................................................................18 2.3 Corporate Profile:.......................................................................................................................18 2.4 Mission statement:....................................................................................................................20 2.5 HERO HONDAS MANDATE:.......................................................................................................20 2.6 S.W.O.T ANALYSIS:...................................................................................................................21 STRENGTHS:.....................................................................................................................................21 WEEKNESS:.......................................................................................................................................21 2.7 HERO HONDA’S CORE VALUES.................................................................................................22 2.8 Product range of HERO HONDA................................................................................................23 2.9 BAJAJ auto ltd...........................................................................................................................27 2.11 BAJAJ AUTO’S MISSION:..........................................................................................................29Projectsformba.blogspot.com pg. 5
  6. 6. Projectsformba.blogspot.com 2.12 SWOT Analysis.........................................................................................................................29 2.13 The Inevitable Change.............................................................................................................31 2.14 Product range of Bajaj.............................................................................................................32 2.15 Current Situation.....................................................................................................................35 Current Performance...................................................................................................................35 2.16 The Industry Analysis - Five Forces Analysis-BAL...................................................................36 External Environment..................................................................................................................36 2.17 Product & Advertising Strategies OF BAL................................................................................37 2.18 Strategies & Implementation..................................................................................................38 FMCG Business Model..................................................................................................................38 2.19 Other Strategic Issues..............................................................................................................39 2.20 Strategies for the Overseas Markets.......................................................................................40 2.21 R&D.........................................................................................................................................41 2.22 The Future...............................................................................................................................42 2.23 New Strategies adopted by Bajaj.............................................................................................43 2.24 HONDA MOTORCYCLE & SCOOTER INDIA (Pvt.) Ltd.(HMSI)....................................................44 2.25 About Honda Motorcycle & Scooter India Pvt. Ltd..................................................................44 2.26 CORPORATE PROFILE...............................................................................................................45 2.27 Mission Statement..................................................................................................................46 2.28 SWOT Analysis.........................................................................................................................46 2.29 PRODUCT RANGE:...................................................................................................................47 2.30 Market growth and market size (HMSI)..................................................................................50 2.31 Strategy of rivals Vs HMSI.......................................................................................................51 2.32 Strategy of HMSI.....................................................................................................................53 2.34 Strategy adopted by TVS & Bajaj for increasing sales and countering growth of HMSI...........53 2.35 Review of strategies adopted by Honda..................................................................................543.1 RESEARCH DESIGN........................................................................................................................58Projectsformba.blogspot.com pg. 6
  7. 7. Projectsformba.blogspot.com 3.2 STATEMENT OF PROBLEM.........................................................................................................58 3.3 HYPOTHESIS..............................................................................................................................59 3.4 AIMS AND OBJECTIVES..............................................................................................................60 3.5 SAMPLING TECHNIQUE.............................................................................................................60 3.6 SAMPLE UNIT............................................................................................................................60 3.7 SAMPLE SIZE..............................................................................................................................60 3.8 STATISTICAL DESIGN..................................................................................................................61 3.9 PRIMARY DATA..........................................................................................................................61 3.10 SECONDARY DATA...................................................................................................................62 3.11 LIMITATIONS OF STUDY...........................................................................................................624.1 RESPONDENT’S PROFILE................................................................................................................64 4.2 SEX.............................................................................................................................................64 4.3 MARITAL STATUS.......................................................................................................................65 4.4 OCCUPATION.............................................................................................................................66 4.5 AGE............................................................................................................................................67 4.6 INCOME.....................................................................................................................................695.1 DATA ANALYSIS............................................................................................................................71 5.2 OWNERSHIP OF TWO WHEELER..............................................................................................71 5.3 MOST VIEWED ADS...................................................................................................................72 5.4 MOST INFLUENTIAL ADS .........................................................................................................73 5.5 BEST RECALLED ADS.................................................................................................................74 5.6 MOST COMMON SOURCE OF ADS.............................................................................................75 5.7 SOURCE OF RELIABLE INFORMATION FOR PURCHASE DECISIONS............................................76 5.8 FACTORS WHICH MOTIVATE PURCHASING DECISION...............................................................78 5.9 PREFERRED PRICE RANGE(in 000’s)...........................................................................................79 5.10 RATING FOR VARIOUS FACTORS(1 LEAST PREFERRED AND 7 MOST PREFERRED)...................81 5.11 IS CROSSCHECKING DONE?.....................................................................................................83Projectsformba.blogspot.com pg. 7
  8. 8. Projectsformba.blogspot.com 6.1 DEMAND AND GROWTH DRIVERS............................................................................................85 Personal Income...........................................................................................................................86 Demography and Inspiration........................................................................................................86 Penetration Level.........................................................................................................................86 Other Factors...............................................................................................................................86 7.1 FINDINGS..................................................................................................................................87 8.1 HYPOTHESIS TESTING................................................................................................................89 9.1 RECOMMENDATIONS................................................................................................................91 Scaling Up Service Centers...........................................................................................................92 Focus on Easy Credit Lending.......................................................................................................92 Investment in Research and Development..................................................................................92 Focus on Exports and Global Market...........................................................................................92 10.1 LEARNINGS..............................................................................................................................93 11.1 BIBLIOGRAPHY.........................................................................................................................95 12.1 QUESTIONNAIRE......................................................................................................................98Projectsformba.blogspot.com pg. 8
  9. 9. Projectsformba.blogspot.comProjectsformba.blogspot.com pg. 9
  10. 10. Projectsformba.blogspot.com1.1 Introduction to Indian Two-wheeler Sector: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 in the domestic market and 753,591 units exported during the first nine months ofFY2007, the industry (excluding tractors) marked a growth of 43% over the correspondingProjectsformba.blogspot.com pg. 10
  11. 11. Projectsformba.blogspot.comprevious. The two-wheeler sales have witnessed a spectacular growth trend since the midnineties.India is the second largest producer and manufacturer of two-wheelers in the world. Indiantwo-wheeler industry has got spectacular growth in the last few years. Indian two-wheelerindustry had a small beginning in the early 50s. The Automobile Products of India (API)started manufacturing scooters in the country.Bikes are a major segment of Indian two wheeler industry, the other two being scooters andmopeds. Indian companies are among the largest two-wheeler manufacturers in the world.Hero Honda and Bajaj Auto are two of the Indian companies that top the list of worldcompanies manufacturing two-wheelers.The two-wheeler market was opened to foreign companies in the mid 1980s. The openness ofIndian market to 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 the dealers and manufacturers lead to the increasing demand fortwo-wheeler vehicles in India. This lead to the strong growth of Indian automobile industry.1.2 Evolution of Two-wheeler Industry in India: Two-wheeler segment is one of the most important components of the automobilesector that has undergone significant changes due to shift in policy environment. The two-wheeler industry has been in existence in the country since 1955. It consists of three segmentsProjectsformba.blogspot.com pg. 11
  12. 12. Projectsformba.blogspot.comviz. scooters, motorcycles and mopeds. In India there are some MNC’s and Indian companydealing in automobile sector. The main key players who are dealing in this sector are HeroHonda, Bajaj, Yamaha, Honda, and TVS. Hero Honda is the biggest player in this sector inIndia as well as in the world and playing a very important role in two wheeler automobilesector. Hero Honda, Bajaj and TVS are the Indian companies and Yamaha & Honda areinternational automobile brand. Bajaj is the first Indian two wheeler automobile company in the market since1945 with the name M/s Bacharj trading corporation private limited. In 1959 M/s Bacharjtrading corporation private limited change its name as Bajaj Auto Ltd. Bajaj Auto obtainslicense from the Government of India to manufacture two- and three-wheelers vehicles in1959. Hero Honda Motors Limited was established in 1984, as a joint venturebetween Indias Hero Group (worlds largest bicycle manufacturers) and Japans Honda MotorCompany. And created the worlds single largest two wheeler company and also one of themost successful joint ventures worldwide. During the 80s, Hero Honda became the firstcompany in India. Over 19 million Hero Honda two wheelers running on Indian roads today. TVS Motors is the third largest company in the two-wheeler industry with amarket share of 16%. Infect, it is the only Indian company without a foreign collaboration inthe two-wheeler industry. When the company opted out of the collaboration with Suzuki in2002, many believed that TVS was headed towards extinction. But the company proved thedoomsayers wrong and came out with a very successful `TVS Victor. TVS Motors Ltd.originally incorporated in 1982 to manufacture two-wheelers in collaboration with SuzukiMotors of Japan, TVS was one of the leaders in two-wheeler industry.Projectsformba.blogspot.com pg. 12
  13. 13. Projectsformba.blogspot.com Yamaha Motor Corporation is the auto mobile company of Japan(1953) which works in India since 1955 and 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 of Japan 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 over issues like introduction of new models,advertising expenditure, marketing strategies and other related issues. In the mid 80 Hondamotors of Japan joined hands with the largest bicycle maker of India the Hero cycles to createHero Honda which in a couple of decades or so have gone on to become the single largestmotorcycle company in the world. Though Honda has come on its own on the Indian marketyet it will be providing technological support to Hero Honda for the next ten years. Thuspresenting a unique situation in which the company will be in direct competition with thecompany which it has been associated for nearly two decades. Honda Motorcycles andScooters India limited, a 100% subsidiary of Honda motor company Japan eventually enteredthe Indian market with Honda Unicorn in 2004.Projectsformba.blogspot.com pg. 13
  14. 14. Projectsformba.blogspot.com1.3 Profile Change in Indian Two-Wheeler IndustryThe demand shift from scooters to motorcycles in the 1990s was without parallel in anycomparable product category in India. This was mainly attributed to the change in customerspreference towards fuel-efficient and aesthetically appealing models, which scootermanufacturers failed to provide. The delayed launch of new, advanced scooter models, fear offour-stroke scooters being prone to increased skidding risks and vibrations, and the difficultyof maintenance also contributed to this shift.Interestingly, the growth in the motorcycle segment was mainly driven by the demand fromrural and semi-urban consumers. An estimated 60% of the demand for motorcycles camefrom rural and semi-urban customers. The rise in their disposable incomes on account ofgood monsoons in the 1990s provided the normally conservative rural and semi-urbancustomers with extra money that induced them to experiment with new, innovative products.Projectsformba.blogspot.com pg. 14
  15. 15. Projectsformba.blogspot.comShift from Scooter to Motorcycle Scooter Motorcycle Moped Year Total In 000 Overall Growth No. % No. % No. % 1993 1,503.36 -6.40 709.73 47.2 379.06 25.2 414.57 27.6 1994 1,770.22 17.75 840.17 47.5 472.58 26.7 457.47 25.8 1995 2,209.23 24.80 1,033.52 46.8 652.01 29.5 523.70 23.7 1996 2,660.04 20.41 1,223.43 46.0 809.53 30.4 627.08 23.6 1997 2,963.49 11.41 1,301.05 43.9 978.68 33.0 683.76 23.1 1998 3,042.85 2.68 1,262.70 41.5 1,131.31 37.2 648.84 21.3 1999 3,403.43 11.85 1,325.87 39.0 1,395.66 41.0 681.90 20.0 2000 3,745.55 -0.80 901.88 24.0 2,156.03 58.0 687.64 18.0Source: (SIAM). No. Number of Units (in 000)Advanced technology, larger wheelbase, higher ground clearance and the ability to ride onbad roads with less effort and less danger of skidding and decreased maintenance cost werethe other factors that encouraged customers to choose motorbikes over other two-wheelers.1.4 Key Earnings DriversBelow are the key factors, which strongly affect the auto industry: -Government policy impact on petrol prices: Petrol prices determine the running cost oftwo/three wheelers expressed in Rupees per kilometer.Petrol prices are the highest in India as GOI subsidizes kerosene and diesel. But with therecent change in GOI policy to reduce the subsidy, the prices of petrol will remain constant atthe current prices. This will have a positive effect on purchases of two/three wheelers.Improvement in disposable income: With the increase in salary levels, due to entry ofmultinationals following liberalization process and fifth pay commission, the disposableincome has improved exponentially over the years. This will have multiplier effect ondemand for consumer durables including two-wheelers.Changes in prices of second-hand cars: The second hand car prices of small cars havecome down sharply in the recent past. This will shift the demand from higher-end two-wheelers to cars and affect the demand for two-wheelers negatively. A further drop inProjectsformba.blogspot.com pg. 15
  16. 16. Projectsformba.blogspot.comsecond-hand car prices will lead to pressure on the two-wheeler majors who plan to releasehigher-end scooters and motorcycles.Implementation of mass transport system: Many states have planned to implement masstransport systems in state capitals in the future. This will have negative impact on demand fortwo-wheelers in the long run. But taking into account the delays involved in implementationof such large infrastructure projects the demand to be affected only five to seven years downthe line.Availability of credit for vehicle purchase: The availability and cost of finance affects thedemand for two- and three-wheelers as the trend for increased credit purchases for consumerdurables have increased over the years. Therefore, any change with respect to any of thesetwo parameters as a result of change in RBI policy has to be closely watched to assess thedemand for two- and three-wheelers.Projectsformba.blogspot.com pg. 16
  17. 17. Projectsformba.blogspot.com 2.1 COMPANY PROFILEProjectsformba.blogspot.com pg. 17
  18. 18. Projectsformba.blogspot.com2.2 Hero Honda Motors Limited Hero Honda Motors Limited was established in 1984, as a joint venture betweenIndias Hero Group (worlds largest bicycle manufacturers) and Japans Honda MotorCompany. In 1985 production began with the launch of its first motorcycle, the CD100,which gave 80 km to the liter. In 1987 the engine plant was started and in 1989 the Companyproduced its 3,00,000th motorcycle. In 2001 Hero Honda manufactured its 50,00,000thmotorbike. Hero Honda has a reputation of being the most fuel-efficient and the worldssingle largest two wheeler Company. Shri Brijmohan Lall Munjal is the chairman andmanaging director of this Company. As early as in 1960’s very few Indian bicycle manufacturers were interested inexports. However, the hero groups foray into the overseas markets in 1963 pioneered Indianexports in the bicycle segment. It was more prompted essentially by the need to remainattuned to the global marketplace. While initial exports were restricted to Africa and themiddle east, today more than 50% of the exports from Hero Cycles Ltd. Meet the demands ofsophisticated markets in Europe and America. This is primarily because of appropriateproduct development and excellent quality that hero offers.. Hero Honda has grown like no other company in the auto business. Severaltimes in the path, savvy observers have insisted that it has grown just too big and that nocompany its size can continue to show growth rates. But Hero Honda has ignored that opinionand continued growing at the place it has set many years ago. Hero Honda today faces more competitor than it has ever in the history. Nowthat is the undisputed two wheeler Numero Uno in the country. Every single two wheelermanufacturer in India if looking market share away from it. More over for the first time thereare so many four- stroke challengers in the market. And Hero Hondas best selling productsare ageing.2.3 Corporate Profile:Projectsformba.blogspot.com pg. 18
  19. 19. Projectsformba.blogspot.com The joint venture between Indias Hero Group and Honda Motor Company, Japan hasnot only created the worlds single largest two wheeler company but also one of the mostsuccessful joint ventures worldwide. During the 80s, Hero Honda became the first company in India to prove that it waspossible to drive a vehicle without polluting the roads. The company introduced newgeneration motorcycles that set industry benchmarks for fuel thrift and low emission. Alegendary Fill it - Shut it - Forget it campaign captured the imagination of commuters acrossIndia, and Hero Honda sold millions of bikes purely on the commitment of increased mileage Over 19 million Hero Honda two wheelers tread Indian roads today. These are almostas many as the number of people in Finland, Ireland and Sweden put together! Hero Honda has consistently grown at double digits since inception; and today, everysecond motorcycle sold in the country is a Hero Honda. Every 30 seconds, someone in Indiabuys Hero Hondas top -selling motorcycle – Splendor. This festive season, the company soldhalf a million two wheelers in a single month—a feat unparalleled in global automotivehistory. Hero Honda bikes currently roll out from two globally benchmarked manufacturingfacilities based at Dharuhera and Gurgaon in Haryana. These plants together are capable ofchurning out 3.9 million bikes per year. A third state of the art manufacturing facility atHardwar in Uttranchal will soon be commissioned to cope with sustained customer demand. Hero Hondas extensive sales and service network now spans over 3000 customertouch points. These comprise a mix of dealerships, service and spare points, spare partsstockiest and authorized representatives of dealers located across different geographies.Hero Honda values its relationship with customers. Its unique CRM initiative - Hero HondaPassport Program, one of the largest programs of this kind in the world, has over 3 millionmembers on its roster. The program has not only helped Hero Honda understand itsProjectsformba.blogspot.com pg. 19
  20. 20. Projectsformba.blogspot.comcustomers and deliver value at different price points, but has also created a loyal communityof brand ambassadors. Having reached an unassailable pole position in the Indian two wheeler market, HeroHonda is constantly working towards consolidating its position in the market place. Thecompany believes that changing demographic profile of India, increasing urbanization and theempowerment of rural India will add millions of new families to the economic mainstream.This would provide the growth ballast that would sustain Hero Honda in the years to come.As Brijmohan Lall Munjal, the Chairman, Hero Honda Motors succinctly 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 Honda’s mission is to strive for synergy between technology, systems and humanresources, to produce products and services that meet the quality, performance and priceaspirations of its customers. At the same time maintain the highest standards of ethics andsocial responsibilities. This mission is what drives Hero Honda to new heights in excellence and helps theorganization forge a unique and mutually beneficial relationship with all its stake holders.2.5 HERO HONDAS MANDATE:Projectsformba.blogspot.com pg. 20
  21. 21. Projectsformba.blogspot.com Hero Honda is a world leader because of its excellent manpower, provenmanagement, extensive dealer network, efficient supply chain and world-class products withcutting edge technology from Honda Motor Company, Japan. The teamwork andcommitment are manifested in the highest level of customer satisfaction, and this goes a longway towards reinforcing its leadership status2.6 S.W.O.T ANALYSIS:STRENGTHS:  Hero Honda introduced First stroke bike in the Indian market.  Hero Honda gives 80 Km/Liter Avg.  Huge sale network (3500 Dealers).  Better sale service.  It has the highest share in automobile sector.  It has a good brand image.  It gives better service for customers.  Best customer preference.  Debt equity ratio is only 0.1.  The company has clarified about its intention of setting a third plant in addition to its existing two plants. The company has embarked upon a green field expansion plan and has earmarked Rs 2 bn for the same. It should be noted that the company has a strong cash flow position; it generated Rs 9 bn from operation in FY04 and is virtually a debt free company.WEEKNESS:  Suppose to be very sophisticated.  Not fit for ruler India.  They have big gap between cubic capacities of its products.  Its market share is reducing from last few years.  Spare parts are too costly.OPPOURTUNITIES:Projectsformba.blogspot.com pg. 21
  22. 22. Projectsformba.blogspot.com  Hero Hondas the first manufacture to launch eco friendly bikes with 4-stroke engines. They have attained a stronger good will and popularity in the industry and the consumers.  They should go in new segments of bikes.  There is large no. of young consumers in the market. Company has to focus on them.  They have big opportunities in heavy bike segments.  As government polices are amended against pollution in metro cities, Hero Honda being 4 stroke bike manufacture have great opportunities to explore its new innovations and technologies.THREATS:  Main threats to Hero Honda are their competitors like:- o Bajaj Auto Ltd. o TVS motors Ltd. o Yamaha Motors India. o Honda motorcycle and scooter India.  The cost of the product is very high in comparison to other companies.  Decreasing market share.2.7 HERO HONDA’S CORE VALUESProjectsformba.blogspot.com pg. 22
  23. 23. Projectsformba.blogspot.com  Respect for Human Beings.  Is a responsive organization?  Is a boundary less organization?  Is striving for excellence.  Provide fearless, enjoyable working environment.  Is self-reliant.  Providing learning environment.  Is a caring organization?  Enables relationship buildings.  Prompts transparency & trust.  Is creativity promoting.  Is performance oriented?2.8 Product range of HERO HONDAScootersProjectsformba.blogspot.com pg. 23
  24. 24. Projectsformba.blogspot.com • HeroHonda Pleasure Hero Honda Pleasure Manufacturer Hero Honda motorcycle Ltd. Production 2005 -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 • Super Splendour • Glamour • Glamour PGM F1Projectsformba.blogspot.com pg. 24
  25. 25. Projectsformba.blogspot.com • Achiever CD Dawn • CBZ XTREME • HUNK • Karizma • Karizma ZMR Features of a few bikes from above mentioned list from HERO HONDA are as follows.. CD Dawn 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 Manufacturer Hero Honda motorcycle Ltd. Production 2007-present Price Rs. 40,000 Engine 97.2 cc, 7.7 ps@ 7500 rpm, torque0.77 kg -m @6000 rpmProjectsformba.blogspot.com pg. 25
  26. 26. Projectsformba.blogspot.com Splendor + Splendor + Manufacturer Hero Honda motorcycle Ltd. Production 2003-present Price Rs. 40,400 Engine 97.2 cc, 7.7 ps@ 8000 rpm, torque7.95 N-m @5000 rpm Hunk Karizma ZMR Hunk Manufacturer Hero Honda motorcycle Ltd. Production 2007-present Price Rs. 63,000 Engine 150 cc, 14.4 ps@ 8500 rpm, Manufacturer torque12.8 N-m @6500 rpm Hero Honda motorcycle Ltd. Production 2009-present Price Rs. 91,000Projectsformba.blogspot.com Engine 223 cc, 17.6bhp@ 7000 rpm, pg. 26 torque18.35 N-m @6000 rpm
  27. 27. Projectsformba.blogspot.com • Karizma ZMR2.9 BAJAJ auto ltd Since 1986, there is a technical tie-up of Bajaj Auto Ltd. with Kawasaki HeavyIndustries of Japan to manufacture state-of-art range of latest two-wheelers in India. The JVhas already given the Indian market the KB series, 4S and 4S Champion, Boxer, the Caliberseries, and Wind125 Kawasaki Heavy Industries is a Fortune 500 company with a turnover of USD 10billion (Rs. 45,840 crore). It has crafted new technologies for more than hundred years. Thetechnologies of KHI have redefined space systems, aircrafts, jet engines, ships, locomotive,energy plants, automation system, construction machinery, and of course high reliability two-wheelersProjectsformba.blogspot.com pg. 27
  28. 28. Projectsformba.blogspot.com KHI has given the world its legendary series of 600-1200cc Ninja and 1600 Vulcanbikes. Straight from its design boards, the Kawasaki Bajaj Eliminator, Indias first real cruiserbike, redefines the pleasure of "biking" in looks as well as performance.2.10 Corporate Profile Inspiring Confidence, the tagline, has build up confidence, through excitementengineering, not only to domestic consumers but also internationally. Established just eightdecades back in 1926 by Jamnalal Bajaj, the company has been vested with Indias largestexporter of two and three wheelers, 196,710 units in 2004-05, a great 26 per cent jump overthe previous year. Bajaj Auto Ltd. sales have increased by approximately 21 per cent in the year2004-05, which exceeds Rs 65.4 billion, a record in the history of the company. The grossoperating profit stands at Rs. 9.3 billion, again a record. The profits after tax of the BAL areclose to Rs. 7.7 billion, and the pre-tax return on operating capital is at an impressive 80 percent. The strength of the company is its quality products, excellence in engineering anddesign, and its ability to delight the customers. The Pulsar, introduced in November 2004, iscontinually dominating the premium segment of the motorcycle market, helping to maintainthe market superiority. Discover DTSi, one more successful bike on Indian roads, is in thevalue segment of the motorcycle market. It incorporates a high degree of power with fuelefficiency of a 100 cc motorcycle. BAL is committed to prevention of pollution, continual improvement of environmentperformance and compliance with all environmental legislation and regulations. They alwaysProjectsformba.blogspot.com pg. 28
  29. 29. Projectsformba.blogspot.combelieve in providing the customer value for money and keep an special eye upon quality,safety, productivity, cost and delivery.2.11 BAJAJ AUTO’S MISSION: We at Bajaj Auto continue to firmly believe in providing the customer Value formoney, for years through our products and services. This we shall maintain and improve, In our decision making, quality, safety and service will be given as muchconsideration as productivity, cost and delivery. Quality shall be built into every aspect of our work life and business operations.Quality improvements and customer satisfaction shall be the responsibility of everyemployee.2.12 SWOT AnalysisLets analyze the position of Bajaj in the current market set-up, evaluating its strengths,weaknesses, threats and opportunities available.Strengths  Highly experienced management.  Product design and development capabilities.  Extensive R & D focus.  Widespread distribution network.  High performance products across all categories.Projectsformba.blogspot.com pg. 29
  30. 30. Projectsformba.blogspot.com  High export to domestic sales ratio.  Great financial support network (For financing the automobile)  High economies of scale.  High economies of scope.Weaknesses  Hasnt employed the excess cash for long.  Still has no established brand to match Hero Hondas Splendor in commuter segment.  Not a global player in spite of huge volumes.  Not a globally recognizable brand (unlike the JV partner Kawasaki)Opportunities  Double-digit growth in two-wheeler market.  Untapped market above 180 cc in motorcycles.  More maturity and movement towards higher-end motorcycles.  The growing gearless trendy scooters and scooterette market.  Growing world demand for entry-level motorcycles especially in emerging marketsThreats  The competition catches-up any new innovation in no time.Projectsformba.blogspot.com pg. 30
  31. 31. Projectsformba.blogspot.com  Threat of cheap imported motorcycles from China.  Margins getting squeezed from both the directions (Price as well as Cost)2.13 The Inevitable ChangeBajaj on internal analysis found that it lacked –1. The technical expertise to deliver competitive goods.2. The design know-how.3. And the immediate inability to support the onslaught of competitors. All these forced Bajaj to look for an international partner who could bring intechnology and also offer some basic platforms to be manufactured and marketed in India.Kawasaki of Japan is a world-renowned manufacturer of high performance bikes. Bajajentered into a strategic tie-up with Kawasaki in late 1990s to enhance its product line andknowledge up-gradation to support long-term strategies. This served the purpose of sustaining the market competition for a while. From 1996to 2000, Bajaj invested hugely in infrastructure while simultaneously developing productdesign and innovation capabilities, which is the prime reason behind the energetic Bajaj of21st century. Bajaj introduced a slew of products right from entry-level motorcycle to thehigh premium segment right from 2001 onwards, and since then its raining success all theway for Bajaj.Projectsformba.blogspot.com pg. 31
  32. 32. Projectsformba.blogspot.com Last quarter, Bajaj had impressive performance growing at a rate of 20%+ when thelargest manufacturer grew at just 6%. This stands a testimony to the various importantstrategic decisions over the past decade.2.14 Product range of BajajMotorcycles: • PULSAR 135 LS • PULSAR 150 DTS-i • PULSAR 180 DTS-i • PULSAR 220 DTS-i • DISCOVER 135 DTS-iProjectsformba.blogspot.com pg. 32
  33. 33. Projectsformba.blogspot.com • DISCOVER DTS-i • PLATINA 125 • PLATINA 100 • AVENGER 200 DTS-i • KAWAZAKI NINJA 250RFeatures of a few bikes from above mentioned list from BAJAJ are as follows.. Bajaj Pulsar 220 DTS-i PULSAR 220 DTS-i Bajaj Discover DTS-i Manufacturer Bajaj Auto Production 2008-present Price Rs. 78,200 Engine 220 cc ,21.04 @ 8500 (Ps @ RPM) 19.12 @ 7000 (Nm @ RPM) Manufacturer Bajaj Auto Production 2005-present Price Rs.47000-49200Projectsformba.blogspot.com pg. 33 Engine 135 CC ,9.64kw (13.10 ps) @ 8500rpm,11.88 nm @ 6500 rpm / 1.21 kgm
  34. 34. Projectsformba.blogspot.comDISCOVER135 DTS-i Bajaj Platina PLATINA 125 cc Bajaj Avenger DTS-i Manufacturer Bajaj Auto Production 2006-present Price Rs. 38621 Engine 125CC,8.5PS @7000rpm,10NM@4000rpm. Manufactur Bajaj Auto er Production 2005-present Price Rs. 64,524AVENGER 200 DTS-i Engine 200cc, 17.51 PS @ 8000 rpm 16.78 Nm @ 6000 rpmProjectsformba.blogspot.com pg. 34
  35. 35. Projectsformba.blogspot.com2.15 Current SituationCurrent Performance.C BAL is currently outperforming the industry growth rate in two-wheeler segment with32% growth in year 2004-05 v/s industry growth of 19%.3 Market share in Motorcycles is improving with every passing year. It has also increasedfrom 28% in 2004-05 to 31% in 2005-06.f Annual turnover for the year 2005-06 is Rs. 81.06 billion v/s Rs. 63.23 billion a yearbefore - an increase of 28% which is very healthy.b BAL has significant presence in all the three basic segments - Price Segment, ValueSegment and Performance Segment - and has been showing increased sales in all thesegments over years.Besides this, BAL is a market leader in two-wheeler exports and 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 Central America.Projectsformba.blogspot.com pg. 35
  36. 36. Projectsformba.blogspot.com2.16 The Industry Analysis - Five Forces Analysis-BALExternal EnvironmentIndustry: Automobiles: Two WheelersSegments: Presence in all segmentsEntry Barriers:Entry barriers are high.E The market runs on high economies of scale and on high economies of scope.E The need for technical expertise is high.E Owning a strong distribution network is important and is very costly.All these make the barrier high enough to be a deterrent for new entrants.Supplier Bargaining Power:Suppliers of auto components are fragmented and are extremely critical for this industry sincemost of the component work is outsourced. Proper supply chain management is a costly yetcritical need.Buyers Bargaining Power:Buyers in automobile market have more choice to choose from and the increasingcompetition is driving the bargaining power of customers uphill. With more models to choosefrom in almost all categories, the market forces have empowered the buyers to a large extent.Industry Rivalry:The industry rivalry is extremely high with any product being matched in a few months bycompetitor. This instinct of the industry is primarily driven by the technical capabilitiesacquired over years of gestation under the technical collaboration with international players.Substitutes:There is no perfect substitute to this industry. Also, if there is any substitute to a two-wheeler,Bajaj has presence in it. Cars, which again are a mode of transport, do never directly competeProjectsformba.blogspot.com pg. 36
  37. 37. Projectsformba.blogspot.comor come in consideration while selecting a two-wheeler, cycles do never even compete withthe low entry level moped for even this choice comes at a comparatively higher economicpotential.Summarizing the industry analysis, it can be said that the two-wheeler market is attractive asit scores well on three out of five categories2.17 Product & Advertising Strategies OF BALThe focus of BAL off late has been on providing the best of the class models at competitiveprices. Most of the Bajaj models come loaded with the latest features within the price bandacceptable by the market. BAL has been the pioneer in stretching competition into providinglatest features in the price segment by updating the low price bikes with the latest featureslike disk-brakes, anti-skid technology and dual suspension, etc.BAL adopted different marketing strategies for different models, few of them are discussedbelow: -Kawasaki 4S - First attempt by bajaj to make a mark in the motorcycle segment. The targetcustomer was the father in the family but the target audience of the commercial was the sonin the family. The time at which Kawasaki 4S was launched Hero Honda was the marketleader in fuel-efficient bikes and Yamaha in the performance bikes.The commercial of Kawasaki 4S had the punch line "Kyun Hero" means "now what hero"which reflected the aggressiveness in the marketing front by the company.Boxer - It took the reins from where the Kawasaki 4S left. Target was the rural populationand the price sensitive customer. Boxer marketed as a value for money bike with greatProjectsformba.blogspot.com pg. 37
  38. 38. Projectsformba.blogspot.commileage. Larger wheelbase, high ground clearance and high mileage were the selling factorsand it was in direct competition to Hero Honda Dawn and Suzuki MX100.Caliber - The focus for the Caliber 115 was youth. And though Bajaj made the bike lookbigger and feel more powerful than its predecessor (characteristics that will attract theaverage, 25-plus, executive segment bike buyer), its approach towards advertising is evenmore radically different this time around. Bajaj gave the mandate for the ad campaign toLowe, picking them from the clique of three agencies that do promos for the company (theother two being Leo Burnett and O&M). Going by the initial market response, the campaignwas clearly a hit in the 5-10 years age bracket. So, the teaser 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 CBZ model in 150cc plus segment. The campaign beared innovative punch 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 a twinvariant of Pulsar with the 180 cc model. The model was a great success and has alreadycrossed 1 million mark in sales.Discover - The same DTSI technology of Pulsar extended to 125 cc Discover was a greatsuccess. With this, Bajaj could realize its success riding on the back of technologicalinnovation rather than the joint venture way followed by competitors to gain market share.2.18 Strategies & ImplementationFMCG Business ModelBAL now is taking a leaf out of the FMCG business model to take the company to greaterheights.Bajaj has kicked off a project to completely restructure the companys retail network andcreate multiple sales channels.Projectsformba.blogspot.com pg. 38
  39. 39. Projectsformba.blogspot.comOver the next few months, the company will set-up separate sales channels for every segmentof its business and consumers. Bajaj Autos entire product portfolio, from the entry-level tothe premium, is being sold by the same dealers. The restructuring will involve separate dealernetworks catering to the urban and rural markets as well as its three-wheeler and premiumbikes segments.Bajaj Auto also plans to set-up an independent network of dealers for the rural areas. Theneeds of financing, selling, distribution and even after-sales service are completely differentin the rural areas and do not makes sense for city dealers to control this. The company alsoplans to set-up exclusive dealerships for its three-wheeler products instead of having themsold through an estimated 300 of its existing dealers.2.19 Other Strategic IssuesCash is strength: Bajaj Auto has been sitting on a cash pile for over five years now. Over thenext couple of years, competition in the two-wheeler market is set to intensify. TVS Motorsand Hero Honda are on a product expansion binge. To fight this battle and retain its hard-earned market share in the motorcycle segment, Bajaj Auto will need its cash muscle. A lookat its own story over the past five years provides valuable insight.Delisting worry: What is worrying is that there is an idea to delist the investment company(also an indirect indication that it would be listed initially). This would be closing the valve ofequitable ownership distribution.There is a hint of a buyback of shares of the investment company as this is the only way it canbe delisted. The company would not be short of cash to put through such a buyback.Factors such as low valuation, low trading interest and the need to provide shareholders maybe cited as plausible reasons for the buyback.Stake for Kawasaki: Bajaj Autos attempt to vest the surplus cash in a separate companymay be a prelude to offering a stake to Kawasaki of Japan in the equity of the automobilecompany. The latter has been playing an increasingly active role in Bajajs recent models, andits brand name is also more visible in Bajaj bikes than in the past.Projectsformba.blogspot.com pg. 39
  40. 40. Projectsformba.blogspot.comBetter value proposition: Shareholder interests may be better served if the cash is retained topursue growth in a tough market. This would also obviate the need to fork-out fancy sums asstamp duty to the government for the de-merger. A combination of a large one-time dividendand a regular buyback program through the tender route may offer better value. A strategicstake for Kawasaki would only positively influence the stocks valuation.2.20 Strategies for the Overseas MarketsBajaj Auto looks at external markets primarily with three strategies: -1) A market where all BAL need to do is distribute through CKD or CBU routes.2) Markets where BAL need to create new products.3) Markets where BAL need to enter with existing products and probably with a gooddistributor or a production facility or a joint venture.Earlier, most of the products that Bajaj exported were scooters and some motorcycles.However, in its target markets, like in India, the shift was towards motorcycles. With theexpansion in Bajajs own range to almost five-six platforms of motorcycles, it had a betteroffering to export, also the reason for its stronger showing. For the last fiscal, 60 per cent ofits exports were two-wheelers and the rest three-wheelers. Of the two-wheeler exports, closeto 90 per cent were motorcycles.Bajaj has identified certain key markets, which hold potential. Its first overseas officeestablished at the Jebel Ali free trade zone has been the focal point for exports to middleAfrica and the Saharan nations. Egypt and Iran also continue to be strong markets for Bajaj.The other market, which would be a focus area, is South America, where the company feels itis fairly well represented in most countries, except in Brazil, the largest market. The companyProjectsformba.blogspot.com pg. 40
  41. 41. Projectsformba.blogspot.comrecently participated in a large auto exhibition in Brazil and found good consumer acceptanceto products like Pulsar and Wind 125.The other focus area is the ASEAN nations, which constitute the third biggest consumer oftwo-wheelers. The biggest among them is Indonesia, where Bajaj distributors are looking tointroduce eco-friendly four-stroke auto rickshaws. But two-wheeler market requires greatdeal of effort from BAL. Everybody is there with Honda leading the show. Theres Suzuki,Kawasaki and some Korean and Chinese models. BAL should look at the right product mixfor two-wheelers. Bajajs Pulsar model has taken off well there. It also wants to develop anew step-through model for the Indonesian market, but for now it will create a base therewith its motorcycle models.Bajaj has also made a beginning by selling bikes in the Philippines branded in the name of itstechnical partner, Kawasaki. The two signed an MoU in February. Kawasaki, a large multi-product conglomerate, only makes high-end bikes and does not have sub-200cc models.Kawasaki is marketing the new model, Wind 125, developed by both companies, in thePhilippines. The Bajaj-developed models, Caliber and Byk, which is a fuel-efficient bike, arealso being distributed by Kawasaki. This is a good beginning strategically for Kawasaki toevince interest in Bajaj products for markets which can still buy less than 150 cc.2.21 R&DBajaj Auto has a huge, extensive and very well-equipped Research and Development winggeared to meet two critical organizational goals: development of exciting new products thatanticipate and meet emerging customer needs in India and abroad, and development of eco-friendly automobile technologies.While the manpower strength of the R&D represents a cross-section of in-depth design andengineering expertise, the company has also been investing heavily in the latest, sophisticatedtechnologies to scale down product development lifecycles and enhance testing capabilitiesBajaj Auto R&D also enjoys access to the specialized expertise of leading internationaldesign and automobile engineering companies working in specific areas.Projectsformba.blogspot.com pg. 41
  42. 42. Projectsformba.blogspot.comBased on their own brand of globalization, they have built their distribution network over 60countries worldwide and multiplied the exports from 1% of total turnover in Fiscal 1989-90to over 5% in Fiscal 1996-97.The countries 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 the scooter market, in Uruguay with 30% of the motorcycle market and in Bangladeshwith 95% of the three-wheeler market.Several new models are being developed specifically for global markets and with these thecompany will progressively endeavor to establish its presence in Europe too.2.22 The FutureAlthough the avalanche of motorcycles offered Indian consumers a wide variety of models tochoose from, it also resulted in increased pressure on the companies to concentrate on cost-cuts, technology enhancements and up-gradations and styling. Their margins came underpressure as marketing costs escalated.The companies were forced to reduce prices and offer discounts to survive the competition.Moreover, analysts were skeptical about the segments ability to maintain the growth rate inthe years to come. One of the major assumptions underlying the motorcycles rush was that ifthe market was considerably large and was growing at a constant pace, there was room for aprofitable existence for all brands.In 2001, there were over 30 motorcycle brands in the market. However, with the top fivebrands accounting for more than 60% of the market, only 40% of the market was availablefor all other new brands put together. Despite the launch of more vehicles, the survivalprospects of many of the individual brands were deemed to be rather bleak.Projectsformba.blogspot.com pg. 42
  43. 43. Projectsformba.blogspot.comFurther, the growth in the motorcycle segment was dependant on continuing favorable marketconditions. Analysts claimed that to sustain this growth rate, the segment would have tocompletely cannibalize the market for scooters and a considerable part of the market forscooters and mopeds.Considering the fast growing scooter segment, with high demand from female customers,followed by the moderately growing moped segment and the restructuring in the scootersegment with major national and foreign players reinforcing their presence, it was unlikelythat the entire growth in the two-wheeler sector would be due to motorcycles.Analysts also commented that as the two-wheeler industry had grown steadily for eight years,stages in the product life cycle would apply to the field sooner, rather than later and thedecline stage would invariably come some day. There was little differentiation between thebrands being launched apart from styling as most companies had introduced their four-strokevehicles.With the failure of the joint ventures, the expected introduction of cheaper Chinese brands,stringent emission norms and threat from major international players, the survival ofindigenous brands looked uncertain. Constrained with the ruling price levels in the marketplace, limited infrastructure and lack of technological innovations when compared to theirforeign counterparts, whether the Indian companies would succeed in generating the kind ofvolumes needed to sustain in the competitive motorcycle market, remains to be seen.2.23 New Strategies adopted by BajajMajor emphasis to be on new product launches.Have a new scooter market under development – will be launched early 2010.Plan to launch a three-wheeled motorcycle, to cater to a niche segment.Bajaj expects stronger growth in the first quarter of FY10 powered by the continuing success of theXCD 135 DTS-Si as also the launch of product upgrades off the Pulsar platformAs a result of the recent stake hike by Bajaj Auto, KTM now has Rajiv Bajaj on its board and thecooperation agreement between the two companies covers product development, technology, vendorsourcing and distribution. Existing Products New Launchs in 2009Projectsformba.blogspot.com pg. 43
  44. 44. Projectsformba.blogspot.comBajaj Bajaj Kristal DTSi XCD 135 DTSi Pulsar XCD Sprint Discover 135 DTSi Discover 100 DTS-Si Platina 100, 125 DTSi Kawasaki Ninja 250R2.24 HONDA MOTORCYCLE & SCOOTER INDIA (Pvt.) Ltd.(HMSI) Honda is the worlds largest manufacturer of 2-wheelers. Its symbol, the Wings,represents the companys unwavering dedication in achieving goals that are unique and aboveall, conforming to international norms. These wings are now in India as Honda Motorcycle &Scooter India Pvt. Ltd. (HMSI), a wholly owned subsidiary of Honda Motor Company Ltd.,Japan. These wings are here to initiate a change and make a difference in the Indian 2-wheeler industry. Hondas dream for India is to not only manufacture 2-wheelers of globalquality, but also meet and exceed the expectations of Indian customers with outstanding aftersales support.2.25 About Honda Motorcycle & Scooter India Pvt. Ltd.Official Name Honda Motorcycle & Scooter India Pvt. Ltd.Projectsformba.blogspot.com pg. 44
  45. 45. Projectsformba.blogspot.comEstablished 20th Aug, 1999Place Manesar, District Gurgaon, Haryana, IndiaInvestment Rs. 300 CroreRepresentative Mr. Shinji Aoyama, President & CEOFactory Location Manesar, District Gurgaon, Haryana, IndiaProduction Capacity 10,000,00 Units per Year Hondas dream for India is to not only manufacture 2-wheelers of global quality; butalso meet and exceed the expectations of Indian customers with outstanding after salessupport. They aim to produce technologically superior, efficient and reasonably priced 2-wheelers, with Honda tested technology, backed up with after sales service of Hondas globalstandard.2.26 CORPORATE PROFILE Honda Motor Co., Ltd., operates under the basic principles of "Respect for theIndividual" and "The Three Joys"-commonly expressed as The Joy of Buying, The Joy ofSelling and The Joy of Creating. Respect for the Individual" reflects our desire to respect theunique character and ability of each individual person, trusting each other as equal partners inorder to do our best in every situation. Based on this foundation of Respect for the Individual,"The Three Joys" expresses our belief and desire that each person working in, or coming intocontact with our company, directly or through our products, should share a sense of joythrough that experience. In line with these basic principles, since its establishment in 1948, Honda Motor Co.,Ltd., has remained on the leading edge by creating new value by providing products of theProjectsformba.blogspot.com pg. 45
  46. 46. Projectsformba.blogspot.comhighest quality at a reasonable price, for worldwide customer satisfaction. In addition, theCompany has conducted its activities with a commitment to protecting the environment andenhancing safety in a mobile society. The Company has grown to become the worlds largest motorcycle manufacturer andone 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 of products ranging from small general-purpose engines and scooters to specialtysports cars, to earn the Company an outstanding reputation from customers worldwide.2.27 Mission Statement Maintaining a global viewpoint, we are dedicated to supplying products of the highestquality at a reasonable price for worldwide customer satisfaction.2.28 SWOT AnalysisStrength  Reliable brand name  Affordable price  Honda have a big share of market in scootreats segment  Honda is the first company who introduced the technology of central shock absorption in India  Honda having high tech engines  HMSI is the subsidiary company of Honda Motors Ltd. Which is the largest company in the proposed sectorProjectsformba.blogspot.com pg. 46
  47. 47. Projectsformba.blogspot.comWeakness  Less number of service center  Market share very less as compare to there competitor  Spares parts are not easily available  Low product range  Maintenance cost is very highOpportunity  Increase in product range  Untapped market above 180 cc in motorcycles.  More maturity and movement towards higher-end motorcycles  Honda can be use brand image of Hero HondaThreats  There is high competition in the market  Threat of cheap imported motorcycles and components from China2.29 PRODUCT RANGE: SCOOTERS: • DIOProjectsformba.blogspot.com pg. 47
  48. 48. Projectsformba.blogspot.com • ACTIVA • AVIATOR MOTORCYCLES: • CB TWISTER • SHINE • CBF STUNNER • UNICORN • CBF STUNNER PGM FI • CB1000R • CBR1000RRFeatures of a few bikes from above mentioned list from HONDA are as follows.. Activa ACTIVA Manufacturer Honda Motors Ltd. Production 2004-present Price Rs. 40661 Engine 4-stroke, air cooled,7 bhp @ 7000 rpm,102 ccProjectsformba.blogspot.com pg. 48
  49. 49. Projectsformba.blogspot.com CB Twister CB TWISTER Manufacturer Honda Motors Ltd. Production 2010 ONWARDS Price Rs 48,000 Engine 110cc,9bhp@8000 CBF STUNNER PGM FI rpm,9Nm@6000rpm CBF STUNNER Manufacturer Honda Motors Ltd. PGM FI Production 2010 ONWARDS Price Rs 48,000Projectsformba.blogspot.com pg. 49 Engine 125cc,11.6bhp@8000 rpm,11.2Nm@6250rpm
  50. 50. Projectsformba.blogspot.com UNICORNUNICORN Manufacturer Honda Motors Ltd. Production 2005-present Price Rs 63,000 Engine 150cc,13.3bhp@8000 rpm,12.8N- m@5500rpm.2.30 Market growth and market size (HMSI)Projectsformba.blogspot.com pg. 50
  51. 51. Projectsformba.blogspot.comThe automobile industry has seen an overwhelming growth in liberal India. Almost every bigmanufacturer has made its presence felt in the country. After the foreign direct investmentregulations were removed, many manufacturers saw India as a potential market. Most of theauto manufacturers were in collaboration with the Indian companies after ’91 till ’99, whenthe rules were changed; some of them still enjoy that. With many foreign manufacturerseyeing India as the market, the giants were no exception and most of them are already havingtheir manufacturing or assembling facilities in India. Honda was into the Indian two-wheelerindustry from 1983, when it joined hands with Hero to start Hero Honda and with Kinetic tostart Kinetic Honda. Honda broke the ties with Kinetic in ’99 and set up its own 100%subsidiary called Honda Motorcycle and Scooter India (HMSI) Pvt. Ltd.HMSI laid its foundation stone in Manesar, Haryana in the same year and also signed anagreement with Hero that it won’t manufacture motorcycles for the next five years i.e. till2004 as Hero Honda was not into the scooter segment at that time. This gave Honda a licenseto manufacture scooters at will and it did that by rolling out its first scooter, Activa in 2001and followed it with Dio in the same year. Honda now enjoys a large chunk of market sharein the scooter segment with Activa, Dio and now Aviator as its products. Honda introducedits first motorcycle, Unicorn in 2004 in the 150cc segment which was followed by Shine inthe 125cc segment in 2006 followed by Stunner in the same segment in 2008. All thesemotorcycles were highly appreciated and instant hits in the growing Indian market whichover these years was mainly dominated by Hero Honda and Bajaj Auto Ltd.The main rivals HMSI is countering are BAL, Hero Honda and TVS in the motorcyclesegment and TVS, Hero Honda and Mahindra Kinetic in the scooter segment. HMSI is themarket leader in the scooter segment and is yet to have a major share in the motorcyclesegment even though it is growing at 32.24% on a monthly basis.The bike segment has a market growth rate of 43% with HMSI having a share of 18% Thebiggest rival in this segment is HMSI’s sister concern Hero Honda with a share of 55%. Thescooter segment is having a growth rate of 32.24% and HMSI having a market share of57.7%. The nearest rival in this segment is TVS motors with a share of 18.7%.2.31 Strategy of rivals Vs HMSIIn 2007, out of every 100 two-wheelers sold in the country - only 12 were scooters. Thatnumber went up to 16 in the past financial year and is projected to zoom to almost 20 thisProjectsformba.blogspot.com pg. 51
  52. 52. Projectsformba.blogspot.comyear. There’s more: the scooter market grew in double digits last fiscal, outperforming thetwo-wheeler market, which grew 2.6 per cent in the same period. The golden days of theearly 80s, when scooters had a 64 per cent market share, are still far away. But the revivalsignals are strong.Scooter manufacturers said the 1.14 million-strong domestic market was expected to cross 2million units in the next four years. That explains the entry of a host of newer players in thesegment, such as Mahindra-Kinetic and Yamaha. Sensing competition, the establishedplayers — Honda, TVS Motors, Bajaj Auto, Hero Honda and Suzuki — have hit the drawingboard once again, to pull out flashy, high-powered and un-geared scooters.Scooter production stands at roughly 20% of the overall two-wheeler productionYear Two Wheelers Production (Bikes + scooters) 2002-03 5,076,221 2003-04 5,622,741 2004-05 6,529,829 2005-06 7,608,697 2006-07 8,466,666 2007-08 8,026,681 2008-09 8,418,626(http://www.siamindia.com/scripts/production-trend.aspx)HMSI has 55 per cent market share, followed by TVS Motors with 19 per cent and HeroHonda with 14.5 per cent and Bajaj managing a 11% market share. Sales Growth / Decline % Projected Market share % * Growth% HMSI 55 32.24% 18% TVS 19 14% 7 Bajaj 11 -12% NA* based on year on year comparison with sales in July 2008* Comparison of scooter sales.Projectsformba.blogspot.com pg. 52
  53. 53. Projectsformba.blogspot.com2.32 Strategy of HMSI  Honda to exit geared scooter segment in India, the Japanese two-wheeler major Honda will exit the geared scooter market in India and phase out its 150 cc model — Eterno — as the company plans to focus on the gearless segment.  The company would focus on gearless scooters in the future and with the launch of the new Activa, HMSI is looking at a total of 18% growth in its two-wheeler sales in the next fiscal, 2009-10.  The Company has entered the bikes market since 2004. This has led to a certain degree of cannibalism between Hero Honda & HMSI. However, Honda motor company stands to gain out of either company’s success.  HMSI has a one-month waiting period for its new Activa (110 cc); six months before, it was just 10 days. Encouraged, it is ramping up its monthly production to 60,000 from 40,000 earlier.  Honda remains committed to its promise to deliver superior technology and performance, even though HMSI products are priced relatively higher than other companies in the market.2.34 Strategy adopted by TVS & Bajaj for increasing sales and counteringgrowth of HMSIMost companies currently produce scooters in the 100-125cc range that are targeted atcustomers who want higher mileage and are ready to compromise on power. Generally, anentry-level bike (100cc) is more powerful and economical than a gearless scooter.To counter this, companies are working on scooter models that generate higher power withoutundermining the fuel economy. The result will be a product that matches the performance ofmotorcycles while being more comfortable, agile and easy on the pocket.They also aim at developing E- scootersProjectsformba.blogspot.com pg. 53
  54. 54. Projectsformba.blogspot.com  Chennai-based TVS Motors, makers of Scooty, are developing a premium un-geared scooter that will be more powerful and superior on design and styling. The company is learnt to have developed a new platform, much more powerful than the 90cc Scooty.  The country’s second largest bike maker, Bajaj Auto, is also developing a completely new, un-geared, scooter. To be launched in 2011, it is aimed at taking on the products of HMSI. This product will be high on power output, like the company’s current bike range, but will not sacrifice on fuel economy.2.35 Review of strategies adopted by HondaThe first bike launched by Honda, Unicorn was launched in the existing 150cc segmentwhich was mainly dominated by Pulsar series and later TVS Apache also chipped in withinthe competition. Same was the case with Shine, its second bike in the 125cc segment. Afterthis, Honda slightly moved away from convention by adopting a new strategy ofsegmentation by creating a segment within two existing segments. In 2008, Honda launched a125cc Stunner CBF intended for not the conventional 125cc segment but just between 125ccand 150cc segment. Honda did not compromise on the feature rich and technologically soundproduct and not on the price either. The price of this bike was 50-60 thousand, thusovercoming the price void between the 150cc and 125cc bikes. The competitors sell their125cc bikes at 40-50 thousand while the price of 150cc segment starts somewhere around 60thousand. This pricing strategy of Honda has paid well and now they are planning topenetrate the gap between the existing 100cc and 125cc segments by launching a new featureladen and technologically sound 100cc bike. Again Honda has clearly announced that theprice of this bike won’t be in the conventional 100cc range but slightly more than that. SBU Market Market Share Market Share Relative Quadrant Growth Rate Of Nearest Market Share RivalProjectsformba.blogspot.com pg. 54
  55. 55. Projectsformba.blogspot.com Bikes 43 18 55 0.33 Question Mark Scooters 32.24 57.7 18.7 3.08 StarProjectsformba.blogspot.com pg. 55
  56. 56. Projectsformba.blogspot.com RELATIVE MARKET SHARE STAR Question Mark (Scooters) (Bikes) 10 CASH COW DOG 0Projectsformba.blogspot.com pg. 56
  57. 57. Projectsformba.blogspot.comMARKETGROWTHProjectsformba.blogspot.com pg. 57
  58. 58. Projectsformba.blogspot.com 3.1 RESEARCH DESIGN3.2 STATEMENT OF PROBLEM One of the major problem is the negative growth being faced by companies in the two wheeler industry. The two wheeler industry has been shrinking continuously. From a peak of over 40% growth in 2002 it is currently facing a growth of -12% in the second quarter of 2008. Exhibit shows the recent trends.Projectsformba.blogspot.com pg. 58
  59. 59. Projectsformba.blogspot.com The above exhibit shows the De-growth in the industry.3.3 HYPOTHESISProjectsformba.blogspot.com pg. 59
  60. 60. Projectsformba.blogspot.comNull Hypothesis, H0 : There is a negative growth in the two wheeler industryAlternative Hypothesis, H1: There is no negative growth in the two wheeler industry.3.4 AIMS AND OBJECTIVES • To study and compare the top three companies HERO HONDA,BAJAJ,& HMSI • To compare and analyze the product strategies of these three companies. • To find out the reasons for change in growth of two wheeler industry.3.5 SAMPLING TECHNIQUENon-probability sampling technique Convenience Sampling was used for collecting datafrom the consumers for the survey.3.6 SAMPLE UNIT Sample units are nothing but the respondents covered during the process of collecting data for the purpose of research. The sampling units consisted of people who own a two wheeler.3.7 SAMPLE SIZEProjectsformba.blogspot.com pg. 60
  61. 61. Projectsformba.blogspot.comThe sample size is the total number count of the number of total respondents covered for theresearch purposes.Total sample size =100Male – 88Female- 123.8 STATISTICAL DESIGN The data was collected and complied in Microsoft Excel and is analyzed using graphs and pie charts.3.9 PRIMARY DATA Primary data was collected through the administration of questionnaires to the sample units and conducting a pilot study to ascertain the worth of the questionnaire. • Questionnaire Design • Questionnaire Administration • Scoring Procedure • Pilot studyProjectsformba.blogspot.com pg. 61
  62. 62. Projectsformba.blogspot.com3.10 SECONDARY DATA Secondary data would be collected from internet, industry journals and magazines. This information and the previous research papers will help in designing the questionnaires and various attributes on which the companies are to be assessed. The company dealers also provided valuable information.3.11 LIMITATIONS OF STUDY • Owing to the huge population size (sampling universe) spanning throughout the country, it becomes almost impossible to cover all the places in the given scope of study. • The results thus obtained are just an overview of the areas and companies covered. • The data gathered and the results interpreted are what was done in a time frame of 6 months and hence may not reveal the depth of the situation. • For the ease of analysis, percentage of respondents using the products was considered as the market share of the particular product in that category. • This dissertation is confined on the basis of more secondary data collected only hence it is not very much a reliable data for the study.Projectsformba.blogspot.com pg. 62
  63. 63. Projectsformba.blogspot.comProjectsformba.blogspot.com pg. 63
  64. 64. Projectsformba.blogspot.com 4.1 RESPONDENT’S PROFILE4.2 SEX TABLE 3: SEX OF RESPONDENTS SEX NUMBER OF PERCENTAGE OF RESPONDENTS RESPONDENTS(%) Male 88 88 Female 12 12Projectsformba.blogspot.com pg. 64
  65. 65. Projectsformba.blogspot.com 88 males and 12 females were covered during the survey.Hence 88% of the respondents were males and the rest 12% were females.4.3 MARITAL STATUS MARITAL STATUS OF RESPONDENTS MARITAL STATUS NUMBER OF PERCENTAGE OF RESPONDENTS RESPONDENTS(%) Unmarried 70 70 Married 30 30Projectsformba.blogspot.com pg. 65
  66. 66. Projectsformba.blogspot.com 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.4.4 OCCUPATION OCCUPATION OF RESPONDENTS OCCUPATION NUMBER OF PERCENTAGE OF RESPONDENTS RESPONDENTS STUDENTS 68 68 SELF EMPLOYED 20 20 WORKING 12 12Projectsformba.blogspot.com pg. 66
  67. 67. Projectsformba.blogspot.com Among the 100 people surveyed ,68% were students,20% were self-employed and remaining 12% belonged to working class like office goers, clerks etc.4.5 AGEProjectsformba.blogspot.com pg. 67
  68. 68. Projectsformba.blogspot.comAGE GROUP NUMBER OF PERCENTAGE OF RESPONDENTS RESPONDENTS18-22 10 10%22-25 60 60%25-30 20 20%>30 10 10% AGE 18 - 22 10% > 30 10% 25 - 30 20% 22 - 25 60% Of the 100 respondents, 60% belonged to 22-25 age group,20% to 25 -30 group,10% to18-22 group and the remaining 10% to more than 30 age group.Projectsformba.blogspot.com pg. 68
  69. 69. Projectsformba.blogspot.com4.6 INCOME MONTHLY NUMBER OF PERCENTAGE OF INCOME(IN RESPONDENTS RESPONDENTS 000’S)RS. <20 30 30% 20-30 55 55% 30-40 10 10% >40 5 5% 30% of the total respondents earn less than Rs. 20,000 per month,55% of the respondents earn Rs. 20,000-30,000 per month,10% of the respondents earn Rs .30,000-40,000 per month and 5% of respondents earn more than Rs. 40,000 per month.Projectsformba.blogspot.com pg. 69
  70. 70. Projectsformba.blogspot.comProjectsformba.blogspot.com pg. 70
  71. 71. Projectsformba.blogspot.com 5.1 DATA ANALYSIS5.2 OWNERSHIP OF TWO WHEELER YES 80% NO 20%Projectsformba.blogspot.com pg. 71
  72. 72. Projectsformba.blogspot.com ANALYSIS: 80% of the respondents own a two wheeler and 20 % of them do not have one. INTERPRETATION: Since majority of my respondents are students from colleges, they own two wheelers for daily commutation. Each one of them own different brands according to the taste and preferences of the two wheelers available in the market. The most common brands are Hero Honda, Bajaj, Honda.TVS etc.5.3 MOST VIEWED ADSHERO HONDA 50%BAJAJ 40%HMSI 10%Projectsformba.blogspot.com pg. 72
  73. 73. Projectsformba.blogspot.com MOST VIEWED ADS HERO HONDA, 50 50 45 BAJAJ, 40 40 35 30 25 20 15 HMSI, 10 10 5 0 HERO HONDA HMSI BAJAJ ANALYSIS: The viewership rate of ads among respondents is highest for Hero Honda with 50%,then comes Bajaj with 40% and Honda with 10%. INTERPRETATION: Hero Honda and Bajaj being the long term rivals compete each other to capture the market share. Hence if one of them comes with an effective ad, the other will surely try to better it. In case of Honda it’s a late entry into the Indian market and it’s growing.5.4 MOST INFLUENTIAL ADS HERO HONDA 35% BAJAJ 55% HMSI 10%Projectsformba.blogspot.com pg. 73
  74. 74. Projectsformba.blogspot.com ANALYSIS: In terms of influence of ads on the respondents, Bajaj comes with 55% , then Hero Honda with 35% and Honda 10%. INTERPRETATION: Bajaj comes with ads that has more adrenalin rush specially targeting the youth and majority of them get inspired by the same. Hero Honda mainly depends on celebrities to influence the viewers. Honda mainly focuses on the international reputation of brand name they have built for themselves. 5.5 BEST RECALLED ADSProjectsformba.blogspot.com pg. 74
  75. 75. Projectsformba.blogspot.com ANALYSIS: In terms of recall ,50% of respondents were for Bajaj stunt ad, then 35% were for Hero Honda KARIZMA ad with Hrithik roshan as brand ambassador. INTERPRETATION: Bajaj came with stunt ads so that it may attract the youth,and they positions their bike mainly high performing, aggressive, reliable. Hero Honda comes with the fan base of its brand ambassador who very well connects with the features of the bike .Very few recalled Honda bike ads as they were very stereotyped ads.5.6 MOST COMMON SOURCE OF ADSTV 18%NEWSPAPER/MAGAZINES 70%Projectsformba.blogspot.com pg. 75
  76. 76. Projectsformba.blogspot.comBILLBOARDS 5%INTERNET 7%ANALYSIS:Among the common source of ads, newspaper and magazines are marked by 70% ofrespondents, TV by 18% ,Internet by 7% and Billboards by 5%.INTERPERTATION:Newspaper and magazines comes with a lot of information related to bikes and it is a majorsource. Latest trend of internet penetration also brings in ads on bikes ,mainly through socialnetworking sites, during online matches, events etc.5.7 SOURCE OF RELIABLE INFORMATION FOR PURCHASEDECISIONS FRIENDS 5%Projectsformba.blogspot.com pg. 76
  77. 77. Projectsformba.blogspot.com INTERNET 65% AUTOMOTIVE 10% MAGAZINES COMPANY 20% DEALERS ANALYSIS: Out of 100 respondents ,65% found internet as a good source of reliable information,then with company dealers 20%,automotive magazines 10%,friends 5%. INTERPRETATION: The various web sites on the net provide valuable information regarding the bikes. With the availability of net, people can browse about any information about anyProjectsformba.blogspot.com pg. 77
  78. 78. Projectsformba.blogspot.com model before going to any dealer. Company dealers provide specific information and in depth about a particular model. The rest is from friends and auto magazines.5.8 FACTORS WHICH MOTIVATE PURCHASING DECISION. DISCOUNT RATE 30% EMI 45% RESALE VALUE 12% ALLOWANCES 8% OTHERS 3%Projectsformba.blogspot.com pg. 78

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