PROJECT REPORT OF     INTERNATIONAL BUSINESS         ENVIORNMENT ON COMPARATIVE STUDY          OFBAJAJ V/S HERO HONDASUBMI...
Vs.      2
ACKNOWLEDGEMENT       The research on “Comparative Study between Bajaj and Hero Honda” hasbeen given to me as part of the ...
INDEXSr No.     Particulars                      Page no1.          OBJECTIVES2.          HISTORY OF BAJAJ             - P...
OBJECTIVES:-1. To know the market share of Bajaj & Hero Honda.2. To know the perception of customers regarding bikes.3. To...
Bajaj Auto limited is one of the largest two wheeler manufacturing company in Indiaapart from producing two wheelers they ...
Bajaj AutoBajaj Auto was one of the earliest two wheeler manufacturers in India and is now one ofthe worlds largest two-wh...
Year of Establishment      1926 Industry                   Automotive - Two & Three Wheelers Business Group             Th...
Nanoo Pamnani                 DirectorManish Kejriwal               DirectorP Murari                      DirectorNiraj Ba...
Type             PublicFounded          1945Headquarters        Pune, IndiaKey people       Rahul Bajaj (Chairman)        ...
500,000 vehicles in a single financial year. In 1995, it rolled out its ten millionth vehicleand produced and sold 1 milli...
o   Bajaj Discover           o   Bajaj AvengerUpcoming Models   •   Bajaj Pulsar 220 DTS-Fi   •   Bajaj Krystal   •   Baja...
Alloy Wheels and chrome decals make it one of the best looking 100cc motorcycles  around.  Optoprism headlamp for better l...
City : 45 +/- 10%Normal : 60 +/- 10%Delivery Time2 to 4 DaysBajaj Pulsar 150 ES DTSi Upgrade  The Pulsar 150 in its latest...
Bajaj Pulsar 200 DTSi  Powered by the smoothest engine of the Bajaj Pulsar range with perhaps the most  attractive looks i...
Bajaj Pulsar 220 DTS Fi  With the Pulsar 220 the engineers at Bajaj Auto have pushed the envelope and  introduced the Indi...
Bajaj Avenger 200  Put your feet up and relax, enjoy the padded seat and watch the scenery as you eat  the miles away.  Fe...
18
India has the largest number of two wheelers in the world with 41.6 millionvehicles. India has a mix of 30 percent automob...
BOARD OF DIRECTORSNo. Name of the Directors           Designation1      Mr. Brijmohan Lall Munjal    Chairman & Whole-time...
Founded           January 19, 1984 in Gurgaon, Haryana, IndiaHeadquarters         Haryana, India                     Om Pr...
•   1 Models         o 1.1 Bikes  •   2 Company Profile         o 2.1 Just-in-Time         o 2.2 Ancillarisation         o...
“Hero”, is the brand name used by the Munjal brothers in the year 1956 with the flagshipcompany Hero Cycles. The two-wheel...
The Hero Group through the Hero Cycles Division was the first to introduce the conceptof just-in-time inventory. The Group...
Quality at Hero is attained not just by modern plants and equipment and through latesttechnology, but by enforcing a stric...
Hero Honda Splendor PlusThe world best selling motorcycle keeps its commitment of a trouble free, economicalcommuter.The S...
Hero Honda Passion Plus  One of the most attractive bikes in the executive segment the Passion Plus integrates  the proven...
New bright multi-reflector headlight, tail light and indicators provide improved  safety while the updated graphics and bl...
Normal : 50 +/- 10%Delivery Time4 to 7 DaysHero Honda Pleasure  Easy to handle and attractively packaged this scooter from...
Hero Honda Splendor NXGThe new generation Splendor NXG has more contemporary styling and increased poweroutput backed by i...
Hero Honda Karizma R  Easily the most comfortable big bike in India the Karizma is a great motorcycle to  eat away the mil...
IMPACT OF RECESSION ON THE TWO WHEELER INDUSTRYTwo Wheelers registered minor growth of 1.85 % during April – December 2008...
33
RESEARCH METHODOLOGY        It is well known fact that the most important step in marketing research process isto define t...
LIMITATIONS              35
1. Research work was carried out in one Distt of Punjab (MUKTSAR) only the finding   may not be applicable to the other pa...
Q1) Which bike do you have?                47                              37
Hero HondaBajaj           38Any other       15                                     Hero honda                             ...
Any other       6             Any other            8                 25                 20                             Her...
50                  40                  100000-200000  No of Persons                  30                  200000-300000   ...
40             30    No of                                          0-1 year           20   Persons                       ...
20                  15  No of Persons                                                              Hero Honda             ...
Friends &Relative                            18             19                  25                  20                    ...
Yes                                                    No                                                    Cant sayQ8) D...
30                  25  No of persons                  20                                                          Yes    ...
Status symbol                  10%             7%                  100%                  80%                              ...
Pick up                       70%                      80%Maintenance                   58%                      62%Look &...
Cant say                     11              3                  25                  20  No of Persons                  15 ...
Conclusion             49
1. Most of the Pulsar, CBZ & Karizma are purchased by young generation 18 to 30   because they prefer stylish looks and re...
RECOMMENDATIONS1.   Bajaj should introduce some more models having more engine power.2.   Hero Honda should think about fu...
4.   Maintenance cost and the availability of the spare parts should also be given     due importance.5.   They also intro...
BIBLIOGRAPHY1.   www.herohonda.com2.   www.google.com                         53
3.   www.bajaj.com4.   www.twowheeler.com5.   www.extrememachines.com                               54
QUESTIONNAIRENAME: - ………………………………………………CONTACT NO ……………………………………….AGE:-          15-20          20-25               25.30 ...
Student                 OtherQ1) Which Bike do you have?           Hero Honda                   Bajaj                     ...
Yes                          NoQ9) Which factor below influence your decision?                 Price                     M...
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A project report of international business enviornment on comparative study of bajaj vs hero honda

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  1. 1. PROJECT REPORT OF INTERNATIONAL BUSINESS ENVIORNMENT ON COMPARATIVE STUDY OFBAJAJ V/S HERO HONDASUBMITED TO SUBMITED BY MBA 2ND Semester 1
  2. 2. Vs. 2
  3. 3. ACKNOWLEDGEMENT The research on “Comparative Study between Bajaj and Hero Honda” hasbeen given to me as part of the curriculum in 2-Years Masters Degree in BusinessAdministration. I have tried my best to present this information as clearly as possible using basicterms that I hope will be comprehended by the widest spectrum of researchers, analystsand students for further studies. I have completed this study under the able guidance and supervision of……………. I will be failed in my duty if I do not acknowledge the esteemed scholarlyguidance, assistance and knowledge. I have received from them towards fruitful andtimely completion of this work.Mere acknowledgement may not redeem the debt I owe to my parents for theirdirect/indirect support during the entire course of this project. . 3
  4. 4. INDEXSr No. Particulars Page no1. OBJECTIVES2. HISTORY OF BAJAJ - Profile - Key Person - Bajaj Intro - Company History - Timeline of new releases3. HISTORY OF HERO HONDA - Board of Directors - Company Profile4. RESEARCH METHODOLOGY - Data Source - Research Approach - Sampling unit - Data Completion and Analysis - Scope5. LIMITATION OF RESEARCH STUDY6. ANALYSIS AND INTERPRETATION7. CONCLUSION8. RECOMMENDATION9. BIBLIOGRAPHY10. ANNEXURE 4
  5. 5. OBJECTIVES:-1. To know the market share of Bajaj & Hero Honda.2. To know the perception of customers regarding bikes.3. To determine the customers satisfaction regarding bikes.4. To determine the factors influencing the choice of customers regarding bikes. 5
  6. 6. Bajaj Auto limited is one of the largest two wheeler manufacturing company in Indiaapart from producing two wheelers they also manufacture three wheelers. The companyhad started way back in 1945. Initially it used to import the two wheelers from outside,but from 1959 it started manufacturing of two wheelers in the country. By the year 1970Bajaj Auto had rolled out their 100,000th vehicle. Bajaj scooters and motor cycles havebecome an integral part of the Indian milieu and over the years have come to representthe aspirations of modern India. Bajaj Auto also has a technical tie up with Kawasakiheavy industries of Japan to produce the latest motorcycles in India which are of worldclass quality The Bajaj Kawasaki eliminator has emerged straight out of the drawingboard of Kawasaki heavy industries. The core brand values of Bajaj Auto limitedincludes Learning, Innovation, Perfection, Speed and Transparency.Bajaj Auto has three manufacturing units in the country at Akurdi, Waluj and Chakan inMaharashtra, western India, which produced 2,314,787 vehicles in 2005-06. The sales arebacked by a network of after sales service and maintenance work shops all over thecountry.Bajaj Auto has products which cater to every segment of the Indian two wheeler marketBajaj CT 100 Dlx offers a great value for money at the entry level. Similarly BajajDiscover 125 offers the consumer a great performance without making a big hole in thepocket. 6
  7. 7. Bajaj AutoBajaj Auto was one of the earliest two wheeler manufacturers in India and is now one ofthe worlds largest two-wheeler and three-wheeler manufacturers. MOTORCYCLES Bajaj has redefined both the value and the premium segments with its motorcycles offering unique features not seen in their competitors in those classes. The entry level Platina features push to cancel indicators, unique throttle control, chrome graphics, fuel gauge and alloy wheels which are not seen on more expensive executive class machines of its competitors. The Bajaj XCD 125 offers an excellent value proposition with its larger engine, LED tail lamp and Digital meter at the price point of 100cc vehicles from its competitors.The Discover 135 is available in Disc and Drum brake variants falls between theexecutive and premium segments and is ideal for those looking for a bit of additionalpower without sacrificing too much on fuel effeciency. Recently a Sport variant has beenannounced which is expected to hit the markets shortly.In the premium segment the Bajaj range includes the Pulsar 150, 200 and 220cc variantsin the sports segment and the Avenger 200 in the cruiser segment.SCOOTERSWith the launch of the Kristal, Bajaj Auto have reentered the autogeared scooter segmentand borrows a lot of technologies from the successful motorcycle range such as DTSi,ExhausTec and SNS suspension.PROFILE:Founder Jamnalal Bajaj 7
  8. 8. Year of Establishment 1926 Industry Automotive - Two & Three Wheelers Business Group The Bajaj Group Listings & its codes BSE – Code: 500490; NSE - Code: BAJAJAUTO Presence Distribution network covers 50 countries. Dominant presence in Sri Lanka, Bangladesh, Columbia, Guatemala, Peru, Egypt, Iran and Indonesia. Joint Venture Kawasaki Heavy Industries of Japan Registered & Head Office Akurdi Pune - 411035 India Tel.: +(91)-(20)-27472851 Fax: +(91)-(20)-27473398 Works • Akurdi, Pune 411035 • Bajaj Nagar, Waluj Aurangabad 431136 • Chakan Industrial Area, Chakan, Pune 411501 E-mail rahulbajaj@bajajauto.co.in Website www.bajajauto.com KEY PERSONS:Board of Directors Rahul Bajaj Chairman Madhur Bajaj Vice Chairman & Whole-Time Director Rajiv Bajaj Managing Director Sanjiv Bajaj Executive Director D.S. Mehta Whole-Time Director Kantikumar R. Podar Director Shekhar Bajaj Director D.J. Balaji Rao Director J.N. Godrej Director S.H. Khan Director Mrs. Suman Kirloskar Director Naresh Chandra Director 8
  9. 9. Nanoo Pamnani DirectorManish Kejriwal DirectorP Murari DirectorNiraj Bajaj DirectorCommittees of the BoardAudit CommitteeS.H. Khan ChairmanD.J. Balaji RaoJ.N. GodrejNaresh ChandraNanoo PamnaniShareholders’ & Investors’ Grievance committeeD.J. Balaji Rao ChairmanJ.N. GodrejNaresh ChandraS. H. KhanRemuneration committeeD.J. Balaji Rao ChairmanS.H. KhanNaresh ChandraRegistered under the Indian Companies Act, VII of 1913REGISTERED OFFICE Akurdi, Pune 411 035WORKS Akurdi, Pune 411 035 Bajaj Nagar, Waluj Aurangabad 431 136 Chakan Industrial Area, Chakan, Pune 411 501Bajaj Autos Ltd.Bajaj Auto Limited 9
  10. 10. Type PublicFounded 1945Headquarters Pune, IndiaKey people Rahul Bajaj (Chairman) Rs. 1,01,063 billion (2006) or USDRevenue 1.87 billionNet income Rs. 17,016 billionEmployees ???Website www.bajajauto.comBajaj Auto is a major Indian automobile manufacturer. It is Indias largest and theworlds 4th largest two- and three-wheeler maker. It is based in Pune, Maharashtra, withplants in Waluj near Aurangabad, Akurdi and Chakan, near Pune. Bajaj Auto makesmotorscooters, motorcycles and the auto rickshaw.Contents • 1 Companys history o 1.1 Timeline of new releases • 2 Scooters • 3 Motorcycles • 4 Upcoming Models • 5 New Image • 6 Forbes Global 2000 Ranking - 2005 • 7 External links • 8 ReferencesCompanys historyBajaj Auto came into existence on November 29, 1945 as M/s Bachraj TradingCorporation Private Limited. It started off by selling imported two- and three-wheelers inIndia. In 1959, it obtained license from the Government of India to manufacture two- andthree-wheelers and it went public in 1960. In 1970, it rolled out its 100,000th vehicle. In1977, it managed to produce and sell 100,000 vehicles in a single financial year. In 1985,it started producing at Waluj in Aurangabad. In 1986, it managed to produce and sell 10
  11. 11. 500,000 vehicles in a single financial year. In 1995, it rolled out its ten millionth vehicleand produced and sold 1 million vehicles in a year.Timeline of new releases • 1971 - three-wheeler goods carrier • 1972 - Bajaj Chetak • 1976 - Bajaj Super • 1977 - Rear engine Autorickshaw • 1981 - Bajaj M-50 • 1986 - Bajaj M-80, Kawasaki Bajaj KB100 • 1990 - Bajaj Sunny • 1994 - Bajaj Classic • 1995 - Bajaj Super Excel • 1997 - Kawasaki Bajaj Boxer, Rear Engine Diesel Autorickshaw • 1998 - Kawasaki Bajaj Caliber, Legend(Indias first four-stroke scooter) • 2000 - Bajaj Saffire • 2001 - Eliminator, Pulsar • 2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar • 2004 - Bajaj CT 100, New Bajaj Chetak 4-stroke with Wonder Gear, Bajaj Discover DTS-i • 2005 - Bajaj Wave, Bajaj Avenger, Bajaj Discover • 2006 - Bajaj Platina • 2007 - Bajaj Pulsar-200Some of the models that Bajaj makes (or has made) are:Scooters o Bajaj Sunny o Bajaj Chetak o Bajaj Cub o Bajaj Super o Bajaj Wave o Bajaj LegendMotorcycles o Kawasaki Eliminator o Bajaj Pulsar o Bajaj Kawasaki Wind 125 o Bajaj Boxer o Bajaj CT 100 o Bajaj Platina o Bajaj Caliber 11
  12. 12. o Bajaj Discover o Bajaj AvengerUpcoming Models • Bajaj Pulsar 220 DTS-Fi • Bajaj Krystal • Bajaj Blade • Bajaj SonicNew ImageThe company, over the last decade has successfully changed its image from a scootermanufacturer to a two wheeler manufacturer, product range ranging from Scooterettes toScooters to Motorcycle. Its real growth in numbers has come in the last 4 years aftersuccessful introduction of a few models in the motorcycle segment.The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.DETAILS OF SOME BIKES OF BAJAJBajaj Platina Style and fuel economy at a bargain price. The Bajaj Platina offers features not yet found on more expensive models in the 100cc range Using the 97.2cc, 8.2BHP powerplant that does duty on the CT100 the Bajaj Platina gives excellent mileage. 12
  13. 13. Alloy Wheels and chrome decals make it one of the best looking 100cc motorcycles around. Optoprism headlamp for better lighting and safety. Spring in Spring rear suspension built to handle the rough Indian roads.Price on RoadIndividual : Rs. 39,500Company : Rs. 44,350Fuel Efficiency (Kmpl)City : 60 +/- 10%Normal : 70 +/- 10%Delivery Time3 to 7 DaysBajaj Discover 135 ES Add some big bike muscle without breaking the bank with the Bajaj Discove 135. With over 13BHP on tap, Disc brakes and broad rubber this is a mean machine. The bike is fully equipped with a self start, front disc brakes, six spoke alloy wheels and a tachometer Improved handling thanks to gas charged rear shock absorbers and a broad 100/90 rear tyre.Price on RoadIndividual : Rs. 57,600Company : Rs. 64,800Fuel Efficiency (Kmpl) 13
  14. 14. City : 45 +/- 10%Normal : 60 +/- 10%Delivery Time2 to 4 DaysBajaj Pulsar 150 ES DTSi Upgrade The Pulsar 150 in its latest avtaar sports alloy wheels, digital meters, led tail lamps and sporty side cowls along with a revised gear box and retuned engine. Power output has been upped to 13.9 BHP with torque figures also going up to 12.76 Nm 5 Speed gearbox now with the standard one down rest up pattern. Digital speedo console with dual trip meters and over rev warning. Gas charges Nitrox shock absorbers aid handlingPrice on RoadIndividual : Rs. 67,550Company : Rs. 76,100Fuel Efficiency (Kmpl)City : 45 +/- 10%Normal : 55 +/- 10%Delivery Time2 to 4 Days 14
  15. 15. Bajaj Pulsar 200 DTSi Powered by the smoothest engine of the Bajaj Pulsar range with perhaps the most attractive looks in the Pulsar range this performance motorcycle never fails to impress. Delivering almost 20 BHP the engine delivers great performance without seeming stressed. Gas filled shock absorbers and broad tubeless tyres and a well sorted chassis make for excellent handling.Price on RoadIndividual : Rs. 81,050Company : Rs. 90,850Fuel Efficiency (Kmpl)City : 30 +/- 10%Normal : 40 +/- 10%Delivery Time7 to 15 Days 15
  16. 16. Bajaj Pulsar 220 DTS Fi With the Pulsar 220 the engineers at Bajaj Auto have pushed the envelope and introduced the Indian motorcycle market to the world of performance biking. The 20PS engine has fuel injection for optimum performance. Oil cooler keeps the oil maintain the right viscosity for better lubrication. Front and rear disc brakes, tubeless tyres and powerful headlights for improved safety.Price on RoadIndividual : Rs. 98,150Company : Rs. 110,100Fuel Efficiency (Kmpl)City : 30 +/- 10%Normal : 40 +/- 10%Delivery Time7 to 15 Days 16
  17. 17. Bajaj Avenger 200 Put your feet up and relax, enjoy the padded seat and watch the scenery as you eat the miles away. Featuring a slightly detuned version of the 200cc powerplant that does duty in the Pulsar 200 this bike develops a healthy 17.5 PS. Oil cooler ensures that the lube retains its optimum viscosity for longer engine life and performance. Broad tyres and disc brakes for a safe and steady ride.Price on RoadIndividual : Rs. 78,550Company : Rs. 88,100Fuel Efficiency (Kmpl)City : 30 +/- 10%Normal : 40 +/- 10%Delivery Time7 to 15 Days 17
  18. 18. 18
  19. 19. India has the largest number of two wheelers in the world with 41.6 millionvehicles. India has a mix of 30 percent automobiles and 70 percent two wheelers in thecountry. India was the second largest two wheeler manufacturer in the world starting inthe 1950’s with the birth of Automobile Products of India (API) that manufacturedscooters. API manufactured the Lambrettas but, another company, Bajaj Auto Ltd.surpassed API and remained through the turn of the century from its association withPiaggio of Italy (manufacturer of Vespa).The license raj that existed between the1940s to1980s in India, did not allow foreigncompanies to enter the market and imports were tightly controlled. This regulatory maze,before the economic liberalization, made business easier for local players to have aseller’s market. Customers in India were forced to wait 12 years to buy a scooter fromBajaj. The CEO of Bajaj commented that he did not need a marketing department, only adispatch department. By the year 1990, Bajaj had a waiting list that was twenty-six timesits annual output for scooters.The motorcycle segment had the same long wait times with three manufacturers; RoyalEnfield, Ideal Jawa, and Escorts. Royal Enfield made a 350cc Bullet with the only four-stroke engine at that time and took the higher end of the market but, there was littlecompetition for their customers. Ideal Jawa and Escorts took the middle and lower end ofthe market respectively.In the mid-1980s, the Indian government regulations changed and permitted foreigncompanies to enter the Indian market through minority joint ventures. The two-wheelermarket changed with four Indo-Japanese joint ventures: Hero Honda, TVS Suzuki, BajajKawasaki and Kinetic Honda. The entry of these foreign companies changed the Indianmarket dynamics from the supply side to the demand side. With a larger selection of two-wheelers on the Indian market, consumers started to gain influence over the products theybought and raised higher customer expectations. The industry produced more models,styling options, prices, and different fuel efficiencies. The foreign companies newtechnologies helped make the products more reliable and with better quality. Indiancompanies had to change to keep up with their global counterparts..Hero Honda has a wide variety of models ranging from the CD Deluxe in the value formoney market to the recently upgraded Karizma R which has set the new norm in theperformance segment.Old favourites like the Splendor + and Passion + have been upgraded and joined byvariants such as the Splendor NXG.In the growing 125cc segment the Super Splendor and Glamour sport the new 125ccQuantum Core engine and are gaining popularity.The Hero Honda CBZ Xtreme and its sibling the Hunk compete with each other in theperformance segment. 19
  20. 20. BOARD OF DIRECTORSNo. Name of the Directors Designation1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director2 Mr. Pawan Munjal Managing Director3 Mr. Toshiaki Nakagawa Jt. Managing Director4 Mr. Takao Eguchi Whole-time Director5 Mr. Satyanand Munjal Non-executive Director6 Mr. Om Prakash Munjal Non-executive Director7 Mr. Tatsuhiro Oyama Non-executive Director8 Mr. Masahiro Takedagawa Non-executive Director9 Mr. Narinder Nath Vohra Non-executive & Independent Director10 Mr. Pradeep Dinodia Non-executive & Independent Director11 Gen.(Retd.) Ved Prakash Malik Non-executive & Independent Director12 Mr. Analjit Singh Non-executive & Independent Director13 Dr. Pritam Singh Non-executive & Independent Director14 Ms. Shobhana Bhartia Non-executive & Independent Director15 Dr. Vijay Laxman Kelkar Non-executive & Independent DirectorHero Honda Motorcycle Ltd.Type Public company BSE:HEROHONDA M 20
  21. 21. Founded January 19, 1984 in Gurgaon, Haryana, IndiaHeadquarters Haryana, India Om Prakash Munjal, Founder Mr. Brijmohan Lall Munjal, ChairmanKey people Mr. Toshiaki Nakagawa, Joint Managing Director Mr. Pawan Munjal, Managing DirectorIndustry AutomotiveProducts Motorcycles, ScootersRevenue U$ 2.8 billionWebsite http://www.herohonda.com/site/home/home.aspHERO HONDA HEADQUARTERSHero Honda Motorcycles Limited is an Indian manufacturer of motorcycles andscooters. Hero Honda is a joint venture that began in 1984 between the Hero group ofIndia and Honda from Japan. It has been the worlds biggest manufacturer of 2-wheeledmotorized vehicles since 2001, when it produced 1.3 million motorbikes in a single year.Hero Hondas Splendor is the worlds largest selling motorcycle[citation needed]. Its 2 plants arein Dharuhera and Gurgaon, both in Haryana, India. It specializes in dual use motorcyclesthat are low powered but very fuel efficient.Contents 21
  22. 22. • 1 Models o 1.1 Bikes • 2 Company Profile o 2.1 Just-in-Time o 2.2 Ancillarisation o 2.3 Dealer Network o 2.4 Financial Planning o 2.5 Quality o 2.6 Diversification • 3 External links[ Models ] Bikes • Hero Honda Splendor Plus • Hero Honda Passion Plus • Hero Honda Karizma • Hero Honda CBZ • Hero Honda Super Splendor • Hero Honda CD Dawn • Hero Honda CD Deluxe • Hero Honda Achiever • Hero Honda Glamour • Hero Honda Ambition Hero Honda "Splendor" Model[ Company Profile ] 22
  23. 23. “Hero”, is the brand name used by the Munjal brothers in the year 1956 with the flagshipcompany Hero Cycles. The two-wheeler manufacturing business of bicycle componentshad originally started in the 1940’s and turned into the world’s largest bicyclemanufacturer today. Hero, is a name synonymous with two-wheelers in India today. TheMunjals roll their own steel, make free wheel bicycle critical components and havediversified into different ventures like product design. The Hero Group philosophy is:“To provide excellent transportation to the common man at easily affordable prices andto provide total satisfaction in all its spheres of activity”. The Hero group vision is tobuild long lasting relationships with everyone (customers, workers, dealers and vendors).The Hero Group has a passion for setting higher standards and “Engineering Satisfaction”is the prime motivation, way of life and work culture of the Group.In the year 1984, Mr. Brijmohan Lal Munjal, the Chairman and Managing Director ofHero Honda Motors (HHM), headed an alliance between the Munjal family and HondaMotor Company Ltd. (HMC). HHM Mission Statement is: “We, at Hero Honda, arecontinuously striving for synergy between technology, systems, and human resources toprovide products and services that meet the quality, performance, and price aspirations ofour customers. While doing so, we maintain the highest standards of ethics and societalresponsibilities, constantly innovate products and processes, and develop teams that keepthe momentum going to take the company to excellence in the new millennium”. Thisalliance became one of the most successful joint ventures in India, until the year 1999when HMC had announced a 100% subsidiary, Honda Motorcycle & Scooter India(HMSI). This announcement caused the HHM stock price to decrease by 30 percent thatsame day. Munjal had to come up with some new strategic decisions as, HMSI and otherforeign new entry companies were causing increased intensity of rivalry for HHM.== Growth == The business growth of Hero Honda has been phenomenal throughout itsearly days. The Munjal family started a modest business of bicycle components. HeroGroup expanded so big that by 2002 they had sold 86 million bicycles producing 16000bicycles a day. Today Hero Honda has an assembly line of 9 different models ofmotorcycles available. It holds the record for most popular bike in the world by sales forIts Splendor model. Hero Honda Motors Limited was established in joint venture withHonda Motors of Japan in 1984, to manufacture motorcycles. It is currently the largestproducer of Two Wheelers in the world. It sold 3 million bikes in the year 2005-2006.Recently it has also entered in scooter manufacturing, with its model PLEASURE mainlyaimed at girls. The Hero Group has done business differently right from the start and thatis what has helped them to achieve break-through in the competitive two-wheeler market.The Groups low key, but focused, style of management has earned the company plauditsamidst investors, employees, vendors and dealers, as also worldwide recognition.The growth of the Group through the years has been influenced by a number of factors:[ Just-in-Time ] 23
  24. 24. The Hero Group through the Hero Cycles Division was the first to introduce the conceptof just-in-time inventory. The Group boasts of superb operational efficiencies. Everyassembly line worker operates two machines simultaneously to save time and improveproductivity. The fact that most of the machines are either developed or fabricated in-house, has resulted in low inventory levels. In Hero Cycles Limited, the just-in-timeinventory principle has been working since the beginning of production in the unit and isfunctional even till date.. This is the Japanese style of production and in India; Hero isprobably the only company to have mastered the art of the just-in-time inventoryprinciple.[ Ancillarisation ]An integral part of the Group strategy of doing business differently was providingsupport to ancillary units. There are over 300 ancillary units today, whose production isdedicated to Heros requirements and also a large number of other vendors, which includesome of the better known companies in the automotive segment. Employee Policy:Another Striking feature within the Hero Group is the commitment and dedication of itsworkers. There is no organized labor union and family members of employees find readyemployment within Hero. The philosophy with regard to labor management is "Hero isgrowing, grow with Hero." When it comes to workers benefits, the Hero Group is knownfor providing facilities, further ahead of the industry norms. Long before other companiesdid so, Hero was giving its employees a uniform allowance, as well as House RentAllowance (HRA) and Leave Travel Allowance (LTA). Extra benefits took the form ofmedical check-ups, not just for workers, but also for the immediate family members.[ Dealer Network ]The relationship of Hero Group with their dealers is unique in its closeness. The dealersare considered a part of the Hero family. A nation-wide dealer network comprising ofover 5,000 outlets, and have a formidable distribution system in place. Sales agents fromHero travels to all the corners of the country, visiting dealers and send back dailypostcards with information on the stock position that day, turnover, fresh purchases,anticipated demand and also competitor action in the region. The manufacturing unitshave a separate department to handle dealer complaints and problems and the firstresponse is always given in 24 hours.[ Financial Planning ]The Hero Group benefits from the Group Chairmans financial acumen and his grasp ontechnology, manufacturing and marketing. Group Company, Hero Cycles Limited hasone of the highest labor productivity rates in the world. In Hero Honda Motors Limited,the focus is on financial and raw material management and a low employee turnover.[ Quality ] 24
  25. 25. Quality at Hero is attained not just by modern plants and equipment and through latesttechnology, but by enforcing a strict discipline. At the Group factories, attaining qualitystandards is an everyday practice - a strictly pursued discipline. It comes from anamalgamation of the latest technology with deep-rooted experience derived from nearlyfour decades of hard labor. It is an attitude that masters the challenge of growth andchange - change in consumers perceptions about products and new aspirations arisingfrom a new generation of buyers.Constant technology up gradation ensures that the Group stays in the global mainstreamand maintains its competitive edge. With each of its foreign collaborations, the Groupgoes onto strengthen its quality measures as per the book. The Group also employs theservices of independent experts from around the world to assist in new design andproduction processes.[ Diversification ]Throughout the years of enormous growth, the Group Chairman, Mr. Lall has activelylooked at diversification. A considerable level of backward integration in itsmanufacturing activities has been ample in the Groups growth and led to theestablishment of the Hero Cycles Cold Rolling Division, Munjal and Sunbeam Castings,Munjal Auto Components and Munjal Showa Limited amongst other component-manufacturing units.Then there were the expansion into the automotive segment with the setting up ofMajestic Auto Limited, where the first indigenously designed moped, Hero Majestic,went into commercial production in 1978. Then came Hero Motors which introducedHero Puch, in collaboration with global technology leader Steyr Daimler Puch of Austria.Hero Honda Motors was established in 1984 to manufacture 100 cc motorcycles.The Hero Group also took a venture into other segments like exports, financial services,information technology, which includes customer response services and softwaredevelopment. Further expansion is expected in the areas of Insurance andTelecommunication.The Hero Groups phenomenal growth is the result of constant innovations, a close watchon costs and the dynamic leadership of the Group Chairman, characterized by a culture ofentrepreneurship, of right attitudes and building stronger relationships with investors,partners, vendors and dealers and customers DETAILS OF SOME BIKES OF HERO HONDA 25
  26. 26. Hero Honda Splendor PlusThe world best selling motorcycle keeps its commitment of a trouble free, economicalcommuter.The Splendor Plus is constantly evolving and features bright multi-reflector headlight, taillight and indicators for improved safety.Die Cast Alloy wheels are now standard and the updated graphics provide acontemporary look to this proven performer.Price on RoadIndividual : Rs. 49,550Company : Rs. 56,350Fuel Efficiency (Kmpl)City : 60 +/- 10%Normal : 75 +/- 10%Delivery Time4 to 7 Days 26
  27. 27. Hero Honda Passion Plus One of the most attractive bikes in the executive segment the Passion Plus integrates the proven 100cc power mill of the Splendor in a body that exudes style. The Passion Plus has always been a stunner with its two tone graphics, body coloured mirrors and large instrument cluster. New bright multi-reflector headlight, tail light and indicators provide improved safety while the updated graphics and black finish alloy wheels and engine provide a contemporary look to this proven performer.Price on RoadIndividual : Rs. 51,300Company : Rs. 58,250Fuel Efficiency (Kmpl)City : 55 +/- 10%Normal : 70 +/- 10%Delivery Time4 to 7 DaysHero Honda Passion Plus One of the most attractive bikes in the executive segment the Passion Plus integrates the proven 100cc power mill of the Splendor in a body that exudes style. The Passion Plus has always been a stunner with its two tone graphics, body coloured mirrors and large instrument cluster. 27
  28. 28. New bright multi-reflector headlight, tail light and indicators provide improved safety while the updated graphics and black finish alloy wheels and engine provide a contemporary look to this proven performer.Price on RoadIndividual : Rs. 51,300Company : Rs. 58,250Fuel Efficiency (Kmpl)City : 55 +/- 10%Normal : 70 +/- 10%Delivery Time4 to 7 DaysHero Honda Hunk Muscular styling and aggressive lines matched with a powerful 14.2 PS engine mqke for an attractive machine. Gas filled shock absorbers provide excellent suspension and great handling. Three dial instrument console has painted dials that match the muscular over all sporty styling of the bike.Price on RoadIndividual : Rs. 68,100Company : Rs. 77,050Fuel Efficiency (Kmpl)City : 40 +/- 10% 28
  29. 29. Normal : 50 +/- 10%Delivery Time4 to 7 DaysHero Honda Pleasure Easy to handle and attractively packaged this scooter from Hero Honda has tremendous appeal for ladies. 102cc engine with excellent reliability and adequate power for most applications. Light weight ABS body in a wide variety of attractive colours. Body coloured mirrors and large speedo console add to the looks. Tuffup tube that immediately seals the tube in case of a puncture.Price on RoadIndividual : Rs. 44,150Company : Rs. 49,400Fuel Efficiency (Kmpl)City : +/- 10%Normal : +/- 10%Delivery Time15 to 20 Days 29
  30. 30. Hero Honda Splendor NXGThe new generation Splendor NXG has more contemporary styling and increased poweroutput backed by impeccable pedigree.The engine has been fine tuned and now delivers 7.7PS without sacrificing on mileage.Smart angular fairing, sporty tank lines and attractive 5 spoke cast alloy wheels add to theattractive styling of the motorcycle.Price on RoadIndividual : Rs. 48,700Company : Rs. 55,250Fuel Efficiency (Kmpl)City : 60 +/- 10%Normal : 75 +/- 10%Delivery Time4 to 7 Days 30
  31. 31. Hero Honda Karizma R Easily the most comfortable big bike in India the Karizma is a great motorcycle to eat away the miles. The 223cc engine develops 17 BHP and is super smooth through the rev range. Aided by a refined gearbox the powerplant never feels stressed. A long wheelbase (1355 mm), good suspension and excellent brakes aid the stabiltiy and handling of this motorcycle. The speedo console housed in its attractive fairing features a digital speedometer, trip meter and clock.Price on RoadIndividual : Rs. 87,100Company : Rs. 98,050Fuel Efficiency (Kmpl)City : 30 +/- 10%Normal : 40 +/- 10%Delivery Time7 to 10 Days 31
  32. 32. IMPACT OF RECESSION ON THE TWO WHEELER INDUSTRYTwo Wheelers registered minor growth of 1.85 % during April – December 2008.However, Two Wheelers sales recorded 15.43 percent fall in December 2008 over thesame month last year. In two wheeler segment, Hero Honda has witnessed 10% fall(215,931 units in Dec 2008) in sales as compared to December 2007 (240,532 units).Bajaj Automobile has registered 33% fall in its over all two wheeler sells, compared tolast year. The company has reported 37% negative growth in bike sells.Due to the recession, the medium class which is the ultimate target customer of the twowheeler industry lost their job. So they started saving money and cancelled there plan oftaking the new vehicles, which affected the two wheeler industry as the production isgoing on but the demand is short. In the above described record the two major firms inthis sector are facing problem regarding their sales.It is sacrilege to say that the world economy has been undergoing with the huge crisis.And automobile industry is not far behind in league. Undoubtedly, the coming timewould be a challenge for the automobile industry. Bike manufacturers have alreadystarted facing the problems, loan & finance for new bike is not available easily in semiurban & rural market. Banks and other financial institutions have baked out from finance.The result of layoff due to the recession affected the whole world a lot and every sector isfacing the problem in form of declining sales. Indian auto mobile industry of noexception is also affected by it. The car manufacturers are delaying their new productlaunch and waiting for the condition of the economy to get stabilize so that they canlaunch the new product.Due to the shortage of demand the production is getting affected which is affecting theindustries so they are forced to opt for the cost cutting measures resulting in the layoff. 32
  33. 33. 33
  34. 34. RESEARCH METHODOLOGY It is well known fact that the most important step in marketing research process isto define the problem. Choose for investigation because a problem well defined is halfsolved. That was the reason that at most care was taken while defining variousparameters of the problem. After giving through brain storming session, objectives wereselected and the set on the base of these objectives. A questionnaire was designed majoremphasis of which was gathering new ideas or insight so as to determine and bind outsolution to the problems.DATA SOURCE Research included gathering both Primary and Secondary data. Primary data isthe first hand data, which are selected a fresh and thus happen to be original in character.Primary Data was crucial to know various customers and past consumer views aboutbikes and to calculate the market share of this brand in regards to other brands. Secondary data are those which has been collected by some one else and whichalready have been passed through statistical process. Secondary data has been taken frominternet, newspaper, magazines and companies web sites.RESEARCH APPROACH The research approach was used survey method which is a widely used methodfor data collection and best suited for descriptive type of research survey includesresearch instrument like questionnaire which can be structured and unstructured. Targetpopulation is well identified and various methods like personal interviews and telephoneinterviews are employed.SAMPLING UNIT It gives the target population that will be sampled. This research was carried inMuktsar (Distt Muktsar)These were 100 respondents.DATA COMPLETION AND ANALYSIS After the data has been collected, it was tabulated and findings of the project werepresented followed by analysis and interpretation to reach certain conclusions.SCOPE My project was based on the Comparative Study of Bajaj V/S Hero Honda anddata was taken in the City Muktsar only. 34
  35. 35. LIMITATIONS 35
  36. 36. 1. Research work was carried out in one Distt of Punjab (MUKTSAR) only the finding may not be applicable to the other parts of the country because of social and cultural differences.2. The sample was collected using connivance-sampling techniques. As such result may not give an exact representation of the population.3. Shortage of time is also reason for incomprehensiveness.4. The views of the people are biased therefore it doesn’t reflect true picture. 36
  37. 37. Q1) Which bike do you have? 47 37
  38. 38. Hero HondaBajaj 38Any other 15 Hero honda Bajaj Any otherQ2) Which Model do you Have? Hero Honda Bajaj Splender 21 CT 100 7 Passion 13 Discover 12 Karizma 7 Pulsar 11 38
  39. 39. Any other 6 Any other 8 25 20 Hero Honda No of Persons Splender 15 Passion 10 Karizma 5 Any other 0 1 Model Nam e 14 12 Bajaj No of Persons 10 CT 100 8 Discover 6 Pulsar 4 Any other 2 0 1 Model Nam eQ3) In which family Income level do you Fall?100000-200000 22200000-300000 45300000-400000 23above 400000 10 39
  40. 40. 50 40 100000-200000 No of Persons 30 200000-300000 20 300000-400000 10 above 400000 0 1 Income levelQ4) For how long do you own a bike?0-1 year 341-2 year 292-3 year 26above 3 year 11 40
  41. 41. 40 30 No of 0-1 year 20 Persons 1-2 year 10 2-3 year 0 above 3 year 1 No of yearsQ5) For what purpose do you use your Motor Bike? Hero Honda BajajOffice Purpose 9 4Personal purpose 13 15Joy Purpose 19 16Other 6 3 41
  42. 42. 20 15 No of Persons Hero Honda 10 Bajaj 5 0 Office Personal Joy Other Purpose purpose Purpose PurposeQ6) How do you come to know about this Motor Bike? Hero Honda BajajNewspaper 4 2Television 23 16Magazine 2 1 42
  43. 43. Friends &Relative 18 19 25 20 New spaper No of Persons 15 Television 10 Magzine Friends & Relative 5 0 Hero Honda Bajaj Name of CompanyQ7) Does Advertisement Influence your decisionin choosing a Motor Bike?Yes 87%No 5%Cant say 8% 43
  44. 44. Yes No Cant sayQ8) Do you have full knowledge about Bikes beforebuying? Hero Honda BajajYes 25 23No 22 15 44
  45. 45. 30 25 No of persons 20 Yes 15 No 10 5 0 Hero Honda Bajaj Com pany Nam eQ9) Which Factor below Influence your decision? Hero Honda BajajPrice 72% 78%Mileage 78% 64%Quality 65% 48%Resale Value 40% 28% 45
  46. 46. Status symbol 10% 7% 100% 80% Price No of Persons Mileage 60% Quality 40% Resale Value 20% Status symbol 0% Hero Honda Bajaj Com pany Nam eQ10) How would you rate the following factors of Bikeswith respect to different company? Hero Honda BajajMileage 74% 72%Price 68% 65% 46
  47. 47. Pick up 70% 80%Maintenance 58% 62%Look & Shape 85% 80%Brand Image 53% 55% 100% 80% Mileage No of Persons 60% Price 40% Pick up 20% Maintenance 0% Look & Shape Hero Honda Bajaj Brande Image Com pany Nam eQ11) If new Bike with good features comes in, then wouldyou like to change your bike? Hero Honda BajajYes 19 21No 17 14 47
  48. 48. Cant say 11 3 25 20 No of Persons 15 Hero Honda 10 Bajaj 5 0 Yes No Cant say View s 48
  49. 49. Conclusion 49
  50. 50. 1. Most of the Pulsar, CBZ & Karizma are purchased by young generation 18 to 30 because they prefer stylish looks and rest of the models of Hero Honda are purchased more by daily users who needs more average of bikes than looks.2. Hero Honda is considered to be most fuel-efficient bike on Indian roads.3. Service & Spare parts are available throughout India in local markets also.4. While buying a motorcycle, economy is the main consideration in form of maintenance cost, fuel efficiency.5. Majority of the respondent had bought their motorcycle more than 3 years. 50
  51. 51. RECOMMENDATIONS1. Bajaj should introduce some more models having more engine power.2. Hero Honda should think about fuel efficiency in case of upper segment bikes.3. More service centers should be opened. 51
  52. 52. 4. Maintenance cost and the availability of the spare parts should also be given due importance.5. They also introduce some good finance/discount schemes for students.6. The price should be economic. 52
  53. 53. BIBLIOGRAPHY1. www.herohonda.com2. www.google.com 53
  54. 54. 3. www.bajaj.com4. www.twowheeler.com5. www.extrememachines.com 54
  55. 55. QUESTIONNAIRENAME: - ………………………………………………CONTACT NO ……………………………………….AGE:- 15-20 20-25 25.30 Above 30OCCUPATION:- Businessman Employee 55
  56. 56. Student OtherQ1) Which Bike do you have? Hero Honda Bajaj Any OtherQ2) Which Model do you have?Hero Honda: - Splendor Passion Karizma OtherBajaj: - CT 100 Discover Pulsar OtherQ3) In which Family Income do you Fall? 100000-200000 200000-300000 300000-400000 Above 400000Q4) For how long do you own a Bike? 0-1 year 1-2 year 2-3 year above 3 yearsQ5) For what purpose do you use your Motor Bike? Office Purpose Personal Purpose Joy Purpose OtherQ6) How do you come to know about this Motor Bike? Newspaper Television Magazines Friends/RelativesQ7) Does Advertisement Influence your decision in choosing a Motor Bike? Yes No Can’t sayQ8) Do you have full knowledge about Bikes before buying? 56
  57. 57. Yes NoQ9) Which factor below influence your decision? Price Mileage Quality Resale Value Status SymbolQ10) How would you rate the following factors of bikes with respect to differentcompanies? Hero Honda Bajaj Mileage Price Pick up Maintenance Look/Shape Brand ImageQ11) In new bike with good feature comes in, then would you like to change your bikes? Yes No Can’t sayQ12) Any Suggestions for Company………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………Date: (Signature) 57

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