Project Report on Bajaj and Hero Honda by Neeraj Bhandari (Surkhet,Nepal)

1. HERO HONDA AND BAJAJ
A RESEARCH PROJECT ON
COMPARATIVE STUDY ON CONSUMER BUYING
BEHAVIOUR OF HERO HONDA AND BAJAJ
NEERAJ BHANDARI
BBA VI 130241182
2013014042
SHARDA UNIVERSITY

2. 1
DECLARATION
I hereby declare that project Titled “PROJECT REPORT ON CONSUMER
BUYING BEHAVIOUR OF HERO HONDA AND BAJAJ” is an original piece of
research work carried out by me under the guidance and supervision of Ms.
Rachna Bansal. The information has been collected from genuine& authentic
sources. The work has been submitted in partial fulfillment of the requirement of
School of Business Studies Sharda University.
Neeraj Bhandari
Schoolof Business Studies
Sharda University

3. 2
CERTIFICATE
I, Rachna Bansal here by certify that Mr. Neeraj Bhandari of Sharda University of
BBA (SEM-VI) has completed the project on “COMPARITIVE STUDY ON
CONSUMER BUYING BEHAVIOUR OF HERO HONDA AND BAJAJ” in the
given period of time.
The information submitted is true and original to the best of my knowledge.
Supervisor
Ms. Rachna Bansal
Sharda University
Date :

4. 3
ACKNOWLEDGEMENT
I hereby take this opportunity to thank all those people including my friends and
colleagues who have helped me for the successful completion of this project. I
would also like to thank my entire faculty guide for the continuous support and
guidance they have rendered for the successful completion of this project. I express
my gratitude’s towards my parents and sister for their encouraging support,
incandescent sprit and endurance towards the making of this project. In the ends a
special thanks to all members who are directly or indirectly associated with the
project.

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TABLE OF CONTENT
TITLE PAGE NO.
CHAPTER 1
INTRODUCTION …………………………………………………………..6 - 14
CHAPTER 2
LITERATURE REVIEW…………………………………………………….15-19
CHAPTER 3
RESEARCH AND METHODOLOGY …………………………………20-22
CHAPTER 4
ANALYSIS AND INTERPRETATION…………………………………..23-27
CHAPTER 5
FINDINGS……………………………………………………………………..28-30
LIMITATIONS AND SUGGESTIONS…………………………………30-31
CONCLUSIONS……………………………………………………………..31-32
BIBLIOGRAPHY ……………………………………………..….…….33
APPENDIX ……………………………………………………….….……34-35

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OBJECTIVES OF THE STUDY
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

7. 6
CHAPTER 1 INTRODUCTION
BAJAJ IN INDIA
Founded in 1926, the Bajaj Group is amongst the top 10 business houses in India.
Its footprint stretches over a wide range of industries, spanning automobiles (two-
wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance,
travel and finance.
The group’s flagship company, Bajaj Auto, is ranked as the world’s fourth largest
two-and three- wheeler manufacturer and the Bajaj brand is well-known in over a
dozen countries in Europe, Latin America, the US and Asia. The present Chairman
and Managing Director of the group, Rahul Bajaj, took charge of the business in
1965.Under his leadership, the turnover of the Bajaj Auto the flagship company
has gone up from Rs.72 million to Rs.46.16 billion (USD 936 million), its product
portfolio has expanded from one to and the brand has found a global market. He is

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one of India’s most distinguished business leaders and internationally respected for
his business acumen and entrepreneurial spirit.
BAJAJ PULSAR DTSI
Bajaj Auto Ltd has launched Pulsar DTSi in its attempt to remain Distinctly ahead.
The all new Pulsar DTSi is packed with the path breaking next generation
technology of digital biking. Its
various digital systems like capacitor
discharge ignition (CDI) system,
Digital console and Digital Twin
Spark ignition(DTS i) provides
efficient fuel combustion and better
performance under all conditions. The
latest DTSi engine of Bajaj Pulsar
DTSi, with twin spark plugs and 8 bit microprocessor chip, generates the pulsating
18 ps of power to excite the bikers and its advanced exhausted technology ensures
the great performance at lower rpm.
The muscular aerodynamic shape of Pulsar DTSi and its 1350 mm of wheel base
with 17" large alloy wheels give this Bajaj bike a robust presence on the road. For
the first time in India, Pulsar DTSi is equipped with an Oil cooler, tube less tyres

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and new digital console that makes the Pulsar most sporty and stylish two wheelers
on Indian roads.
Launched in three variants of 200cc, 150cc and 180 cc, Pulsar DTSi has a price tag
of Rs.70-75,000 (approx.) and up for sale throughout the dealerships of Bajaj Auto
India.
KEY FEATURES OF BAJAJ PULSAR DTSi
• Engine Oil Cooler to control the temperature and maintain the high speed and
rpm.
• Digital Odometer, Digital Speedo Meter, Digital Fuel Gauge and two Digital Trip
Meters contribute to enhanced riding comfort.
• Tubeless tyres for better road grip and stability.
• First bike in India with large 33 mm front fork for better shock absorbing ability.
• Constant velocity (CV) carburetor for high level of performance.
• Split seat for better riding and sitting comfort.
• The new Petrol tank flaps give petrol tank an aerodynamic looks.

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HERO HONDA IN INDIA
“Hero” is the brand name used by the Munjal brothers in the year 1956 with the
flagship company Hero Cycles. The joint venture between India’s Hero Group and
Honda Motor Company, Japan has not only created the world’s single largest two
wheeler company but also one of the most successfuljoint ventures worldwide.
During the 80s, Hero Honda became the first company in India to prove that it was
possible to drive a vehicle without polluting the roads. The company introduced
new generation motorcycles that set industry benchmarks for fuel thrift and low
emission. A legendary Fill it - Shut it -Forget it campaign captured the imagination
of commuters across India, 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. Hero Honda
has consistently grown at double digits since inception; and today, every second

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motorcycle sold in the country is a Hero Honda. Every 30seconds, someone in
India buys Hero Hondas top -selling motorcycle -Splendor. This festive season, the
company sold half a million two wheelers in a single month-a feat unparalleled in
global automotive history.
HERO-HONDA UNICORN
Honda Unicorn is the first motorcycle
in India to have hi-tech Mono
Suspension, which enhances the
riding comfort and control. This is the
first motorcycle to Indian market by
the company setting up new
benchmark in the motorcycle segment
with its swift acceleration, superior mileage, international styling, riding comfort
and convenience. It is engineered and styled for the taste of the younger
generation.

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KEY FEATURES OF HERO HONDA UNICORN
• Best pick up in its class.
• It delivers an incredible 60 km’s to a liter.
• It is a perfect fusion of sporty & macho design.
• With Mono Suspension & Diamond frame, it takes all kinds of road shocks with
absolute ease.
• It is the only motorcycle equipped with a puncture resistant Tupp up Tube.

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PULSAR VS UNICORN

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BAJAJ PULSAR DTSi
BENEFITS
 The pulsar is a very responsive bike and pulls with authority.
 It’s also much smoother than before, plus it packs in a lot of goodies like a
digital speedometer.
 It is one of the most powerful 150 cc bike.
 It is the bestequipped bike at present, matched only by the Apache RTR
160.
DRAWBACKS
 There are just too many pulsars on the road today so it is doubtful that
anyone will give you a second look.
 It also has typical Bajaj problems like the chain getting loose frequently.
 The engine although smooth is still not in Hondas league.
 The gear boxis an improvement on older pulsars but again doesn’tmatch
with Honda.

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HERO HONDA UNICORN
BENEFITS
 The Unicorns engine is the smoothest, quietest and most refined in this
group. Ride the bike and you will understand what Honda engineering
means.
 It is also the only bike with mono shocksuspension in India.
 It also has the best build quality.
 It delivers the best mileage. And is also suitable to you because you have
very long legs.
 Don’t worry about repairs on this bike as it comes with Hondas bullet proof
reliability.
DRAWBACKS
 Its acceleration doesn’tmatchup with other bikes in this group. But it gives
the best mileage.
 It doesn’toffer value for money and the styling may look dated.
 It doesn’tcome with goodies like digital speedometer.

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CHAPTER 2 LITERATURE REVIEW
Customer satisfaction is an ambiguous and abstract concept and the actual
manifestation of the state of satisfaction will vary from person to person and
product/service to product/service. The state of satisfaction depends on a number
of both psychological and physical variables which correlate with satisfaction
behaviors such as return and recommend rate. The level of satisfaction can also
vary depending on other options the customer may have and other products against
which the customer can compare the organizations products.
Because satisfaction is basically a psychological state, care should be taken in the
effort of quantitative measurement. These ten domains of satisfaction include:
Quality, Value, Timeliness, Efficiency, Ease of Access, Environment, Inter-
departmental Teamwork, Front line Service Behaviors, Commitment to the
Customer and Innovation. These factors are emphasized for continuous
improvement and organizational change measurement and are most often utilized
to develop the architecture for satisfaction measurement as an integrated model.
The basis for the measurement of customer satisfaction is by using the gap between
the customers expectation of performance and their perceived experience of
performance. This provides the measurer with a satisfaction "gap" which is

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objective and quantitative in nature customer satisfaction equals perception of
performance divided by expectation of performance.
Marketers in recent times have realized the importance of marketing orientation,
and this is being reflected in the application of marketing mix elements.
Consumer’s needs are fundamental to the formulation of any marketing strategy,
from developing a communication plan. It may be worthwhile to explore the
intricate aspects of consumer satisfaction level which focuses on ‘consumerneeds’.
These concepts enable marketers to analyze the acceptability of strategies planned
by them.
Even though we cannot know everything that is to be known, we do need some in
depth knowledge about the consumers, starting with who is he. Is there a real
Indian customer or there is a set of stereotype. All the conventional wisdom in
market research tends to favor the view that that there are distinct types, and we
need to isolate them according to some parameter and label them.
Customer satisfaction as the key element for success in business is a major concern
for any industry. In this paper I have tried to propose a how customer satisfaction
level can affect the performance of an organization.
Customer satisfaction, a business term, is a measure of how products and services
supplied by a company meet or surpass customer expectation. It is seen as a key

18. 17
performance indicator within business and is part of the four perspectives of a
Balanced Scorecard. In a competitive marketplace where businesses compete for
customers, customer satisfaction is seen as a key differentiator and increasingly has
become a key element of business strategy.
There is a substantial body of empirical literature that establishes the benefits of
customer satisfaction for firms.
Measuring customer satisfaction
Organizations are increasingly interested in retaining existing customers while
targeting non-customers; measuring customer satisfaction provides an indication of
how successful the organization is at providing products and/or services to the
marketplace.
Selecting Target Market
A review of marketing opportunities often helps in identifying distinct consumer
segments with very distinct wants and needs. Identifying these groups, learning
how they behave and how they make their purchase decisions enables the marketer
to design and market products or services particularly suited for their wants and
needs.

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Based on earlier done research following conclusion were drawn about Bajaj and
Hero Honda as a Brand in two wheeler industry:
A consumer, making a purchase decision will be affected by the following three
factors:
1. PERSONAL FACTORS
2. PSYCHOLOGICAL FACTORS
3. SOCIAL FACTORS
PERSONAL FACTORS
These factors were varying from person to person. Demographic Factors like Sex,
Race, Age etc. played major role in buying two wheelers for individual use.
Young people in age group of 18-35yrs purchased two wheelers for different
various reasons while older people in age group of 35-50yrspurchased just for
travelling purpose only.

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PSYCHOLOGICAL FACTORS
There were many people who wanted to purchase two wheelers just because they
had sense of love and belonging for bikes. This was found more among Hero
Honda user. They mostly see the performance of the bike and services that
provided by companies and want their bike to be smooth while driving the bike.
SOCIAL FACTORS
There were many people who bought bikes because of social factors like on their
parents, friends and relatives opinion. There were few people who bought their
bikes for style and status. Besides this to my surprise I found out that in today’s
world boys play major role in buying decisions for themselves and for their family
also. This also played a greater role in purchasing decision of two wheelers by
individuals. Boys who were in age group of 18-25 yrs were more interested in
features as compared to other factors described.

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Chapter 3 Researchand Methodology
It is well known fact that the most important step in marketing research process is
to define the problem. Choose for investigation because a problem well defined is
half solved. That was the reason that at most care was taken while defining various
parameters of the problem. After giving through brain storming session, objectives
were selected and the set on the base of these objectives. A questionnaire was
designed major emphasis of which was gathering new ideas or insight so as to
determine and bind out solution to the problems.
Research methodology is a way to systematically solve the research problem. It
may be understood as a science of studying how research is done scientifically. It
is necessary for the researcher to know not only the research methods/techniques
but also the methodology.

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DATA SOURCE
Research included gathering both Primary and Secondary data.
Primary data is the first hand data, which are selected a fresh and thus happen to be
original in character. Primary Data was crucial to know various customers and past
consumer views about bikes and to calculate the market share of this brand in
regards to other brands.
Secondary data are those which has been collected by someone else and which
already have been passed through statistical process. Secondary data has been
taken from internet, newspaper, magazines and company’s web sites.
RESEARCH APPROACH
The research approach was used survey method which is a widely used method for
data collection and best suited for descriptive type of research survey includes
research instrument like questionnaire which can be structured and unstructured.
Target population is well identified and various methods like personal interviews
and telephone interviews are employed.

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SAMPLING UNIT
It gives the target population that will be sampled. This research was carried in
Greater Noida. These were 40 respondents.
DATA COMPLETION AND ANALYSIS
After the data has been collected, it was tabulated and findings of the project were
presented followed by analysis and interpretation to reach certain conclusions.
SCOPE
Our project was based on the Comparative Study of Bajaj V/S Hero Honda and
data was taken in the Greater Noida.

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CHAPTER 4 ANALYSIS AND INTERPRETATION
QUESTIONNAIRE
1. DO YOU HAVE A BIKE
YES
NO
BIKE
YES, 38
NO, 2

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2. FOR WHAT PURPOSEDO YOU USE YOUR BIKE MOSTLY?
OFFICE
TRAVELLING
BOTH
OTHERS
PURPOSE
3. WHICH COMPANY’S BIKE DO YOU HAVE ?
BAJAJ
HERO HONDA
TRAVELLIN
G, 16
OFFICE,
10
BOTH, 8
OTHERS, 6

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OTHERS
4. WHY DID YOU JUST PREFER THIS BRAND OVER OTHERS?
QUALITY
FEATURES
AVAILABILITY
PRICE
BAJAJ, 12
HERO
HONDA, 21
OTHERS, 7

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5. WHICH TYPE OF BIKE YOU PREFER FOR TRAVELLING?
100 CC
150 CC
MORE THAN 150 CC
QUALITY,
13
FEATURES,
19
AVAILABILITY, 3
PRICE,
5

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100 cc, 12
150 cc, 19
MORE, 9

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CHAPTER 5
FINDINGS
 From the survey, it is founded that most of the people prefer Hero Honda
unicorn for office use and travelling purpose.
 If the price of Hero Honda unicorn increases there would be 5person who
will change their Brand preference.
 People prefer more quality and features of two wheelers rather than the
price.
 The brand image is been reflected in the individual’s mind rather than the
promotional strategies.
FACTORS INFLUENCING SALES OF TWO WHEELERS
FEATURES
It plays major role in sale on any bikes. Todaypeople are more attracted towards
the features of bikes and are ready to spend huge amount of money on buying a
handset having huge numbers of features. E.g. Hero Honda karizma

30. 29
PRICE
Price also plays a major role. Companies need to place their products in such a way
that it can differentiate itself from others by its price. If price of bike is kept low
and more features are provided to customer than company can create market for
itself.
AVAILABILITY
Products need to be available easily. Customer doesn’tlike to travel much to buy
bikes. They prefer to get their bikes from nearest showrooms. So in order to be
market leader, companies should make sure that their products are easily available
to customer.
AFTER SALES SERVICE
Companies should make sure that they provide good after sale service to their
customers and there problems are rectified as soonas possible. The turnaround
time should be very less that customer don’thave to wait too long for their
problems to be solved.

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QUALITY
The quality of products should be very good. Today’s customerwant value for
money if that is not provided than company will find it difficult to position itself in
the market.
LIMITATIONS AND RECOMMENDATION
As the study was taken in one area only, and also the sample size of doing the
survey was also very limited i.e. 40 samples. The results need to be understood
keeping in mind the sample size. Also for the study of two wheelers reveals that,
the consumers or the decider, have only the preference of Hero Honda and Bajaj
pulsar DTSi even if the price of two wheelers rises and if the same trend continues
the other companies would be finding it very difficult to be stable. This study has
made conjoint design but alternate ways to measure consumer preferences which
can be used in future.

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In the recommendation, it can be said that there should be more development in
finding out the different buying behavior and preferences by other two wheeler
industries in a promotion intensive environment and also the quality.
CONCLUSION
After doing extensive research on two wheelers I came to the following
conclusions:
21 people prefer Hero Honda (unicorn), therefore if the price of Hero Honda
product will increase than 5 people will look for another alternative. It was also
found that from the Survey of 40 Samples, 21 People prefer using unicorn, 12
person prefer Bajaj pulsar DTSI and 7 people uses other two wheelers for
travelling or office purpose.

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CUSTOMER
HERO HONDA
BAJAJ
OTHER

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BIBLIOGRAPHY
www.herohonda.com
www.bajaj.com
www.google.com
www.twowhellers.com
Sample Survey by making the Questionnaire

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QUESTIONNAIRE
Name:
Age:
Occupation:
1. Do you have a bike?
Yes
No
2. Using bike for which purpose?
Office
Travelling
Both
Others
3. Which company bike do you possess?

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Bajaj
Hero Honda
Others
4. Why did you prefer this brand over other brand?
Quality
Feature
Availability
Price
5. Will you prefer another bike if price is reduced?
Yes
No
6. Which type of bike you prefer for travelling?
100cc
150cc
More than 150cc