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Final varun mrp (1)

  1. 1. A MAJOR RESEARCH PROJECT ON A COMPARATIVE STUDY ON BUYING BEHAVIOUR OF COSTOMERS BETWEEN HERO HONDA AND TVS MOTORS A PARTIAL ANALYSIS OF INDORE Submitted to DAVV (Indore) In partial fulfillment of The degree of MASTER OF BUSINESS ADMINISTRATION (2009-11) Guided by Submitted byAMIT VIJAY PATIL VARUN CHANDWANIAsst.Prof. ABHINAV TRIVEDI university –DAVV, Roll no.-09150404 Vindhya Institute of technology & science Devi AhilyaVishwa Vidyalaya, Indore 1 (M.P.) Page
  2. 2. Vindhya Institute of technology & science Devi AhilyaVishwa Vidyalaya, Indore (M.P.) Certificate This is to certify that Mr/ VARUN CHANDWANI of MBA 4th Sem in the academic year (2009-2011) of Vindhya Institute of technology & scienceDAVV, Indore has completed the project report entitled “…A COMPARATIVE STUDY ON BUYING BEHAVIOUR OF COSTOMERS BETWEEN HERO HONDA AND TVS MOTORS A PARTIAL ANALYSIS OF INDORE.” towards thepartial fulfillment of degree of Master of Business Administration (Full Time) Under my guidance. He/She has carried out this project with full dedication & sincerity and this report is a satisfactory account of his/her work Date: Guide Name 2 Page
  3. 3. Vindhya Institute of technology & science __ Devi AhilyaVishwa Vidyalaya, Indore (M.P.) Declaration I VARUN CHANDWANI hereby declare that the Major Research Project entitled “…A COMPARATIVE STUDY ON BUYING BEHAVIOUR OF COSTOMERS BETWEEN HERO HONDAAND TVS MOTORS A PARTIAL ANALYSIS OF INDORE” submitted by me to Vindhya Institute of ___________ & __________, Indore towards the partial fulfillment of the Degree of Master of Business Administration (full time) represents my own work except for the guidance and / or suggestion received which has been suitably acknowledged. Date: (VARUN CHANDWANI) 3 Page
  4. 4. AcknowledgmentThe feeling of acknowledgement some thing and expressing it in words are two things apart. Itis weakness, but we honestly admit that when we truly wish to express our warm gratitude andindebtedness towards somebody, we are always at loss of word.The project could not have been completed without support extended to me by “GUIDENAME”. He/She had faith in me and urged me to do things innovatively, which helped me tosuccessfully complete my project. I also like to express my gratitude towards “HELPING PERSON/MANAGER OF THEFIRM / COMPANY (A COMPARATIVE STUDY ON BUYING BEHAVIOUR OF COSTOMERS BETWEEN HERO HONDA AND TVS MOTORS A PARTIAL ANALYSIS )”to undertake my research from “COMPANY / FIRM”I would also like to thank “Abhinav Trivedi / Helping”, whose invaluable support wasnecessary for me to achieve my objective and finally a word of gratitude to my parents & all myfriends who were always there with their support and encouragement. (VARUN CHANDWANI) 4 Page
  5. 5. INDEXCHAPTER CONTENTS PAGE NO. • Title Page. • Certificate from . • Acknowledgement. • Declaration • Table of Content.CHAPTER Abstract / Executive Summary1CHAPTER INRODUCTION2 Conceptual Framework Rationale of Study Objective of StudyCHAPTER3 Literature Review.CHAPTER Methodology4 The Design.(Hypothesis ) The Sampling. Data Collection Methods. The ToolsCHAPTER5 Result Findings and Discussion 5 Summary of Result PageCHAPTER
  6. 6. 6 Conclusion and Suggestion Conclusion SuggestionCHAPTER7 Future Implications of the StudyCHAPTER Limitation8CHAPTER9 BIBLIOGRAPHYCHAPTER WEBLIOGRAPHY10 REFERENCESCHAPTER Appendices.11 (Questionnaire, Sample, Statistical tables, and any other additional relevant material)CHAPTER12 6 Page
  7. 7. 6- EXECUTIVE SUMMARY:- • The Automobile sector is one of the fastest growing manufacturing sectors in India. • In the 90s the industry witnessed an average growth rate of above 20 percent. • Indian Automobile Industry is characterized by a very high percentage (75 per cent) of two wheeler production, ranking second only to Taiwan. • The world leaders in the sector are evincing keen interest in establishing manufacturing facilities for manufacturing and assembling components. • A politically stable and vibrant State, is centrally located with the support of seaports, international airports, assured and reliable power supply, abundant water, broad base of auto component manufacturers, highly trained, skilled and disciplined manpower and is therefore, the preferred location for Automobile industries. • The interest of the state has been duly noted by Global Auto Majors, who have indicated their interest to consider Andhra Pradesh for establishing manufacturing facility. • The Government is also formulating an Auto Policy, which would give a proper direction to the growth of the sector. • There are more than 20 auto –component manufacturing companies in the State, manufacturing components such as grey-iron castings, precision aluminum castings, leaf springs, oils and lubricants, diesel fuel injection equipment, electronics and auto electronics and auto electrical, front axles, gears, forging, machined components, pressed metal components, pistons, cylinder liners, nozzles, delivery valves, starter motors, alternators, electronic regulators, high pressure die castings, clutch covers, fuel 7 Page
  8. 8. 7 - INTRODUCTION :-INTRODUCTION OF TVSThe TVS Group is one of Indias largest industrial conglomerates. TV Sundram Iyengar and SonsLimited, established in 1911, is the parent and holding company of the TVS Group.TVS Motor Company is the third largest two-wheeler manufacturer in India and one among thetop ten in the world, with annual turnover of more than USD 1 billion in 2008-2009, and is theflagship company of the USD 4 billion TVS Group. With a workforce of over 5000, thecompany has 4 plants - located at Hosur and Mysore in South India, in Himachal Pradesh, NorthIndia and one at Indonesia. The company has a production capacity of 300 thousand units a year.TVS and Sons also distribute Heavy Duty Commercial Vehicles, Jeeps and Cars. It representspremier automotive companies like Ashok Leyland, Mahindra and Mahindra Ltd., Fiat andHonda. It also distributes automotive spare parts for several leading manufacturers.TVS & Sons has grown into a leading logistics solution provider and has set up state-of-the-artwarehouses all over the country. It has also diversified into distributing Garage equipment thatranges from paint booths to engine analyzers and industrial equipment products.GROUP COMPANIESWith steady growth, expansion and diversification, today TVS commands a strong presence invarious fields-two-wheelers, automotive components, automotive spares, computer peripheralsand finance.Lakshmi Auto Components Limited - Large OE supplier of two wheeler gears and camshafts. 8LUCAS INDIAN Service Limited (www.lucasindia.com) - Company looks after the distribution Pageof auto electrical components all over India.
  9. 9. AXLES INDIA LIMITED - A joint venture with Eaton Limited, U.K. Manufactures axlehousings andCOMPANY AT PRESENT & IN FUTURE Successfully launched the Victor and Fiero-F 2 models after parting ways with Suzuki. Two wheeler markets show sign of revival after a lackluster first half. The company is suffering a decline in volumes due to poor response of its two strokes Max motorcycles. Recently launched the TVS Centra and 125 cc TVS Victor GLX and four stroke Max in the pipeline, which would be launched later this year. Plans major foray into three-wheeler and quadricycles market through fresh investments of Rs 500 crore. Actively looking to set up manufacturing unit in Indonesia or Vietnam. Strong focus on R&D and product development. drive heads for heavy and light commercial vehicle APACHE THE SAVIOR TVS launched Apache RTR 160 cc model in September 2008, with its ultra modern technology for Indian bikes has proved to be a big success. The success of TVS Apache is especially significant because it was developed with indigenous technology. Two stroke Max Range – On the way out The company is currently looking forward to phase out its two stroke Max range, which is perceived to be less fuel efficient with a new four stroke range. The changeover is expected to take place by the end of June 2009. Two new launches could out TVS on a high growth Trajectory 9 Page
  10. 10. TVS Centra a new 100 cc model has recently been launched and the company has setambitions targets of achieving monthly sales in the range of 15000-20000 bikes permonth.Also, a new upgraded 125 cc TVS Victor has been launched which will improve thetrajectory of the company.Three wheeler project- entering a new marketTVS Motor has set the stage for entry into the three-wheeler markets with the setting upof a new plant at Nanjangud, near Mysore in Karnataka. We understand that thecompany would be targeting the sub-one ton passenger and goods carriers segment ofthe market.With an investment of about Rs 50 crore in phase-1, it will cater to both passenger andcargo segments. The total investments for the three wheeler and four-wheelerquardricycle project are expected to be in the range of Rs 500 crore in the next two-three years. It plans to go with petrol version of three wheelers and expects higherdemand to come from B class towns. The company expects higher margin and lowcompetition in three-wheeler business as compared to its two-wheeler business. Threewheeler sales have grown at a CAGR of 7% over the last 9 years to 2.26 lakh units FY03, and are expected to grow at the same rate for the next five years. TVS is expected toroll out its first three-wheeler by the end of FY05 to garner a 30% market share witharound 100,000 unit sales by the end of FY08.TVS MOTOR COMPANYTVS Motor Company Limited, part of the TVS Group, is one of Indias leading two-wheeler manufacturers. With a turnover of over Rs.2700 crores, the Companymanufactures a wide range of motorcycles, scooters, mopeds and scooterettes. Littlewonder, it boasts of more than 7 million happy customers. 10The chapter called two wheelers in India begins….. Page
  11. 11. The year was 1980. And it is a year to remember for the Indian two-wheeler industry.For it was this year that saw Indias first two-seater moped, TVS 50, rolling out on theIndian roads. For some it was freedom to move. For some, shorter distances to span.For the Indian Automobile sector, a breakthrough to be etched in history.With the joint venture with Suzuki Motor Corporation in 1983, TVS-Suzuki became thefirst Indian company to introduce 100 cc Indo-Japanese motorcycles in September1984. Through an amicable agreement the two companies parted ways in September2001.Unmatched PerformanceToday TVS Motor Company has the largest market share in the moped category with awhopping 65.3% and is also the undisputed leader in the scooterette segment with34.3% share. It also holds 18.3% market share in motorcycles. GraphWide NetworkWith a strong sales and service network of 500 Authorized Dealerships, 1018Authorized Service Centres and over 864 Certified Service Points, TVS is growingfrom strength to strength.World Class FacilitiesThe company manufactures its motorcycles, scooterettes and mopeds at its state-of-the-art factories in Mysore and Hosur.Product RangeTVS offers a wide range of two-wheelers- Motorcycles - TVS Centra / TVS Victor / TVS Fiero F2/ TVS Max 100/ TVS Max100 R- Scooterettes - TVS Scooty Pep/ TVS Scooty 2S 11- Mopeds - TVS XL Super/ TVS XL Super HD Page
  12. 12. VISIONTVS Motor - Driven by the customerTVS Motor will be responsive to customer requirements consonant with its corecompetence and profitability. TVS Motor will provide total customer satisfaction bygiving the customer the right product, at the right price, at the right time.TVS Motor - The Industry LeaderTVS Motor will be one among the top two two-wheeler manufacturers in India and oneamong the top five two-wheeler manufacturers in Asia.TVS Motor - Global overviewTVS Motor will have profitable operations overseas especially in Asian markets,capitalizing on the expertise developed in the areas of manufacturing, technology andmarketing. The thrust will be to achieve a significant share for international business inthe total turnover.TVS Motor - At the cutting edgeTVS Motor will hone and sustain its cutting edge of technology by constantbenchmarking against international leaders.TVS Motor - Committed to Total QualityTVS Motor is committed to achieving a self-reviewing organization in perpetuity byadopting TQM as a way of life. TVS Motor believes in the importance of the process. 12People and projects will be evaluated both by their end results and the process adopted. Page
  13. 13. TVS Motor - The Human FactorTVS Motor believes that people make an organization and that its well-being isdependent on the commitment and growth of its people. There will be a sustained effortthrough systematic training and planning career growth to develop employees talentsand enhance job satisfaction. TVS Motor will create an enabling ambience where themaximum self-actualization of every employee is achieved. TVS Motor will supportand encourage the process of self-renewal in all its employees and nurture their sense ofself worth.TVS Motor - Responsible Corporate CitizenTVS Motor firmly believes in the integration of Safety, Health and Environmentalaspects with all business activities and ensures protection of employees andenvironment including development of surrounding communities. TVS Motor strivesfor long-term relationships of mutual trust and inter- dependence with its customers,employees, dealers and suppliers.MILESTONESLaunched Centra in January 2004, a TECHNOLOGY Uncompromising Quality, TECHNOLOGYTVS Motor Companys R&D division has an imposing pool of talent and one of themost contemporary labs, capable of developing innovative designs.Committed to achieving total customer satisfaction through Total Quality Control(TQC), the Company continuously strives to give the customer, the best value formoney. 13 PageECO-FRIENDLY
  14. 14. TVS is committed to protecting the environment. The companys manufacturingfacilities at Mysore & Hosur have state-of-the-art facilities & air pollution controlmeasures. Even the suppliers are encouraged to ensure that their products meet eco-friendly norms.ALWAYS FIRST- Launched TVS 50, Indias first 2-seater, 50cc moped in Aug 1980.- First Indian Company to introduce 100cc Indo-Japanese motorcycles in Sept 1984.Launched Indias first indigenous Scooterette, TVS Scooty in June 1994.- Introduced Indias first catalytic converter enabled motorcycle, the 110cc Shogun inDec 1996.- Launched Indias first 5-speed motorcycle, the Shaolin in Oct 1997.- Launched Indias first high performance moped - the XL Super, with a 70 cc engine inNov 1997.- Launched Victor in August 2001, a world-class 4-stroke 110 cc motorcycle.World-class 4-stroke 100 cc motorcycle with VT-i Engines for best-in-class mileage.AWARDS Deming AwardTVS Motor is the third Indian company to win the Deming Prize. Only two other TVScompanies have managed this before.Its been a long time since the Union of Japanese Scientists and Engineers instituted theDeming Prize. But very, very few organizations outside Japan have had the honor of 14receiving it. In fact, the TVS Motor Company is the worlds first motorcycle Pagecompany to be awarded the prize.
  15. 15. As for the TVS Group, its a third. Sundaram -Clayton Ltd. (Brakes Division) and Sundaram Brake Linings Ltd. have already won it. The Deming Prize is the ultimate confirmation of our commitment to quality control. A confirmation known to every TVS rider across the country.PRODUCT PROFILETVS APACHE (RTR)The recently launched TVS Apache RTR FI 160 has added an another stunner on the roads.Stylish alloys, unique grab rails, classy silencer, larger & sharp lined fuel tank, all theseelements combine perfectly to give TVS Apache RTR 160 a sporty eye-catching looks.The Apache RTR 160 has been upgraded with electronic fuel injection (EFI) and becomesApache RTR 160 Fi. The EFI technology has enabled TVS to boost peak power of thisbike. TVS has priced the new model at Rs. 65000.TVS SCOOTY PEP – First LoveA sleek duo-tone body. Body colored coordinated mirrors. A smiley headlamp. Winkyindicators. Looks even better with you on it. POWER75cc 4stroke engine to pep up your ride. A bigger, more comfortable seat for two andstrong hydraulic shock absorbers for a smoother ride.TECHNOLOGYA unique power/economy mode for extra mileage. An auto reserve fuel tap. No more 15turning knob from main to reserve. Auto chokes for instant starts. Every time. Page
  16. 16. SAFETYPuncture Resistant Tvs that come with a special sealant inside, minimizing chances of aflat. A side stand alarm that beeps if you forget to take off the stand. Multi focal reflectorheadlamp and side reflectors for enhanced visibility. Now all you need is an equally funkyhelmet and you” re all set to pep.INTRODUCTION OF THE PROJECTSomeone has rightly said that practical knowledge is far better than classroom teaching.During this project I fully realized this and I came to know about how a consumer choosesamong a varied range of products available to him.The subject of my study is market survey of customer buying behavior in bikes taking TVSfor comparison, which has slowly but steadily evolved, from a beginner to a corporate giantearning laurels and kudos throughout.The report contains first of all brief introduction about the company. Finally there comesdata presentation and analysis in the end of my report. I also put forward some of mysuggestion hoping that they help TVS Motor Company move a step forward to being thevery best.SCOPE OF THE STUDYThe scope of the study is to study the customer buying behavior of the respondents in NewDelhi and attain the awareness level of the customers. The scope is that the services of thedealer, advertising media as well as celebrity has made an effect on the customer or not andhow much.This study also allows knowing the future prospects of the company and where it is at 16present in the market Page
  17. 17. TVS MOTOR REVENUES GROW AT 23.2% IN Q2 EXPORTS UP52%Bangalore, October 30, 2008: TVS Motor Company today reported a 23.2 % increase inrevenues, registering Rs. 1034 crores for the quarter ended September 2008 of the financialyear 2008-09, when compared to Rs. 839 crores in the corresponding quarter of theprevious year. Despite the challenging environment caused by increasing input materialcosts, general inflationary trends and lack of availability of retail finance, the company hasposted Profit before Tax of Rs. 13.9 crores and Profit after Tax of Rs. 10.4 crores whencompared to Rs. 16.9 crores and Rs. 11.9 crores in the corresponding period of the previousyear. The last years September Quarter had the benefit of Rs. 10.2 crore (net) on account ofexceptional items. Profit before exceptional items for the quarter is higher at Rs. 13.9 crorein comparison with Rs. 6.7 crores of the corresponding quarter of last year.The company has recorded growth in sales despite adverse retail financing. Motorcycleswitnessed higher sales at 1.81 lakh during the quarter compared to 1.44 lakh units over theprevious period. Scooters clocked sales of 0.77 lakh in comparison to 0.76 lakh unitsduring the corresponding quarter of the previous year.During the quarter, the company crossed yet another milestone when it reached two millionunits of TVS Scooty in July 2008. Indian Tennis star, Sania Mirza became the new BrandAmbassador for the Scooty brand. The company chose to associate with Sania as brandambassador since she emanates the brand qualities of independence, progress andaccomplishment.During the quarter, the company further broadened the horizons of its TVS Scooty brandwith the launch of Balancing Wheels 17 Page
  18. 18. SUB DIVISION OF SHARESIn order to improve the shareholder value and to facilitate greater liquidity in its equityshares, TVS Motor Company recently subdivided the face value of its shares to Re. 1/-each. Earlier the face value of the shares was Rs. 10/-MERGER OF LAKSHMI AUTO COMPONENTS WITH TVS MOTORCOMPANYThe Shareholders of TVS Motor Company and Lakshmi Auto Components (LAC) have on19th January 2004 approved the merger of Engine Division of LAC with TVS MotorCompany and transfer of Rubber and Plastics division of LAC to Sundaram AutoComponents Limited, a wholly owned subsidiary of TVS Motor Company. The companyexpects to obtain the approval of High Court of Tamil Nadu and complete other statutoryformalities in the next few months. This merger is expected to improve the overallprofitability of TV INTRODUCTION & HISTORY OF HERO HONDA 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 in the1950‟s with the birth of Automobile Products of India (API) that manufactured scooters.API manufactured the Lambrettas but, another company, Tvs Auto Ltd. surpassed API andremained through the turn of the century from its association with Piaggio of Italy(manufacturer of Vespa). 18The license raj that existed between the1940s to1980s in India, did not allow foreign Pagecompanies to enter the market and imports were tightly controlled. This regulatory maze,
  19. 19. before the economic liberalization, made business easier for local players to have a seller‟smarket. Customers in India were forced to wait 12 years to buy a scooter from Tvs. TheCEO of Tvs commented that he did not need a marketing department, only a dispatchdepartment. By the year 1990, Tvs had a waiting list that was twenty-six times its annualoutput 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 andpermitted foreign companies to enter the Indian market through minority joint ventures.The two-wheeler market changed with four Indo-Japanese joint ventures: Hero Honda,TVS Suzuki, Tvs Kawasaki and Kinetic Honda. The entry of these foreign companieschanged the Indian market dynamics from the supply side to the demand side. With a largerselection of two-wheelers on the Indian market, consumers started to gain influence overthe products they bought and raised higher customer expectations. The industry producedmore models, styling options, prices, and different fuel efficiencies. The foreign companiesnew technologies helped make the products more reliable and with better quality. Indiancompanies had to change to keep up with their global counterparts.BOARD OF DIRECTORS  No. Name of the Directors Designation  Mr. Brijmohan Lall Munjal Chairman & Whole-time Director  Mr. Pawan Munjal Managing Director  Mr. Toshiaki Nakagawa Jt. Managing Director  Mr. Takao Eguchi Whole-time Director  Mr. Satyanand Munjal Non-executive Director  Mr. Om Prakash Munjal Non-executive Directo 19  Mr. Tatsuhiro OyamaNon-executive Director Page  Mr. Masahiro TakedagawaNon-executive Director
  20. 20.  Mr. Narinder Nath Vohra Non-executive & Independent Director  Mr. Pradeep Dinodia Non-executive & Independent Director  Gen.(Retd.) Ved Prakash Malik Non-executive & Independent Director  Mr. Analjit Singh Non-executive & Independent Director  Dr. Pritam Singh Non-executive & Independent Director  Ms. Shobhana Bhartia Non-executive & Independent Director  Dr. Vijay Laxman Kelkar Non-executive & Independent DirectorHERO HONDA MOTORCYCLE LTD.Type Public company BSE:HEROHONDA MFounded 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.asp 20 HERO HONDA HEADQUARTERS Page
  21. 21. Hero Honda Motorcycles Limited is an Indian manufacturer of motorcycles and scooters. HeroHonda is a joint venture that began in 1984 between the Hero group of India and Honda fromJapan. It has been the worlds biggest manufacturer of 2-wheeled motorized vehicles since 2001,when it produced 1.3 million motorbikes in a single year. Hero Hondas Splendor is the worldslargest selling motorcycle[citation needed] . Its 2 plants are in Dharuhera and Gurgaon, both inHaryana, India. It specializes in dual use motorcycles that are low powered but very fuelefficient.Contents 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 DiversificationModels Bikes Hero Honda Splendor Plus Hero Honda Passion Plus 21 Hero Honda Karizma Page Hero Honda CBZ
  22. 22. Hero Honda Super Splendor Hero Honda CD Dawn Hero Honda CD Deluxe Hero Honda Achiever Hero Honda Glamour Hero Honda AmbitionHero Honda "Splendor" Model [Company Profile]“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 components hadoriginally started in the 1940‟s and turned into the world‟s largest bicycle manufacturer today.Hero, is a name synonymous with two-wheelers in India today. The Munjals roll their own steel,make free wheel bicycle critical components and have diversified into different ventures likeproduct design. The Hero Group philosophy is: “To provide excellent transportation to thecommon man at easily affordable prices and to provide total satisfaction in all its spheres ofactivity”. The Hero group vision is to build long lasting relationships with everyone (customers,workers, dealers and vendors). The Hero Group has a passion for setting higher standards and“Engineering Satisfaction” is the prime motivation, way of life and work culture of the Group.In the year 1984, Mr. Brijmohan Lal Munjal, the Chairman and Managing Director of HeroHonda Motors (HHM), headed an alliance between the Munjal family and Honda MotorCompany Ltd. (HMC). HHM Mission Statement is: “We, at Hero Honda, are continuously 22striving for synergy between technology, systems, and human resources to provide products and Pageservices that meet the quality, performance, and price aspirations of our customers. While doing
  23. 23. so, we maintain the highest standards of ethics and societal responsibilities, constantly innovateproducts and processes, and develop teams that keep the momentum going to take the companyto excellence in the new millennium”. This alliance became one of the most successful jointventures in India, until the year 1999 when HMC had announced a 100% subsidiary, HondaMotorcycle & Scooter India (HMSI). This announcement caused the HHM stock price todecrease by 30 percent that same day. Munjal had to come up with some new strategic decisionsas, HMSI and other foreign new entry companies were causing increased intensity of rivalry forHHM.== Growth == The business growth of Hero Honda has been phenomenal throughout its earlydays. The Munjal family started a modest business of bicycle components. Hero Group expandedso big that by 2002 they had sold 86 million bicycles producing 16000 bicycles a day. TodayHero Honda has an assembly line of 9 different models of motorcycles available. It holds therecord for most popular bike in the world by sales for Its Splendor model. Hero Honda MotorsLimited was established in joint venture with Honda Motors of Japan in 1984, to manufacturemotorcycles. It is currently the largest producer of Two Wheelers in the world. It sold 3 millionbikes in the year 2005-2006. Recently it has also entered in scooter manufacturing, with itsmodel PLEASURE mainly aimed at girls. The Hero Group has done business differently rightfrom the start and that is 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 companyplaudits amidst investors, employees, vendors and dealers, as also worldwide recognition.The growth of the Group through the years has been influenced by a number of factors:[ Just-in-Time ]The Hero Group through the Hero Cycles Division was the first to introduce the concept of just-in-time inventory. The Group boasts of superb operational efficiencies. Every assembly lineworker operates two machines simultaneously to save time and improve productivity. The factthat most of the machines are either developed or fabricated in-house, has resulted in lowinventory levels. In Hero Cycles Limited, the just-in-time inventory principle has been workingsince the beginning of production in the unit and is functional even till date.. This is the Japanese 23style of production and in India; Hero is probably the only company to have mastered the art of Pagethe just-in-time inventory principle.
  24. 24. [ Ancillarisation ]An integral part of the Group strategy of doing business differently was providing support toancillary units. There are over 300 ancillary units today, whose production is dedicated to Herosrequirements and also a large number of other vendors, which include some of the better knowncompanies in the automotive segment. Employee Policy:Another Striking feature within the Hero Group is the commitment and dedication of its workers.There is no organized labor union and family members of employees find ready employmentwithin Hero. The philosophy with regard to labor management is "Hero is growing, grow withHero." When it comes to workers benefits, the Hero Group is known for providing facilities,further ahead of the industry norms. Long before other companies did so, Hero was giving itsemployees a uniform allowance, as well as House Rent Allowance (HRA) and Leave TravelAllowance (LTA). Extra benefits took the form of medical check-ups, not just for workers, butalso for the immediate family members.[ Dealer Network ]The relationship of Hero Group with their dealers is unique in its closeness. The dealers areconsidered a part of the Hero family. A nation-wide dealer network comprising of over 5,000outlets, and have a formidable distribution system in place. Sales agents from Hero travels to allthe corners of the country, visiting dealers and send back daily postcards with information on thestock position that day, turnover, fresh purchases, anticipated demand and also competitor actionin the region. The manufacturing units have a separate department to handle dealer complaintsand problems and the first response 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 has one of thehighest labor productivity rates in the world. In Hero Honda Motors Limited, the focus is onfinancial and raw material management and a low employee turnover.[ Quality ] 24Quality at Hero is attained not just by modern plants and equipment and through latest Pagetechnology, but by enforcing a strict discipline. At the Group factories, attaining quality
  25. 25. standards is an everyday practice - a strictly pursued discipline. It comes from an amalgamationof the latest technology with deep-rooted experience derived from nearly four decades of hardlabor. It is an attitude that masters the challenge of growth and change - change in consumersperceptions about products and new aspirations arising from a new generation of buyers.Constant technology up gradation ensures that the Group stays in the global mainstream andmaintains its competitive edge. With each of its foreign collaborations, the Group goes ontostrengthen its quality measures as per the book. The Group also employs the services ofindependent experts from around the world to assist in new design and production processes.[ Diversification ]Throughout the years of enormous growth, the Group Chairman, Mr. Lall has actively looked atdiversification. A considerable level of backward integration in its manufacturing activities hasbeen ample in the Groups growth and led to the establishment of the Hero Cycles Cold RollingDivision, Munjal and Sunbeam Castings, Munjal Auto Components and Munjal Showa Limitedamongst other component-manufacturing units.Then there were the expansion into the automotive segment with the setting up of Majestic AutoLimited, where the first indigenously designed moped, Hero Majestic, went into commercialproduction in 1978. Then came Hero Motors which introduced Hero Puch, in collaboration withglobal technology leader Steyr Daimler Puch of Austria. Hero Honda Motors was established in1984 to manufacture 100 cc motorcycles.The Hero Group also took a venture into other segments like exports, financial services,information technology, which includes customer response services and software development.Further expansion is expected in the areas of Insurance and Telecommunication.The Hero Groups phenomenal growth is the result of constant innovations, a close watch oncosts 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 25 Page
  26. 26. CONCEPTUAL FRAME WORK:These questions will help in understanding the factors that influence the decision making processof the consumers. The buyer‟s decision making process includes the following:- 1. Problem recognition 2. Information search 3. Evaluation of alternatives 4. Purchase decision 5. Post purchase behavior 1. Problem recognition: - First and the foremost step is to identify the problem i.e. what actually one wants with regard to the product. 2. Information Search: - Second step is to search the relevant information regarding the Product which one wants. 3. Evaluation of alternatives: - Third step is to evaluate the collected information i.e. analyze the information. 4. Purchase decision: - In forth step the product is actually purchased. 5. Post purchase behaviour: - In fifth step the consumer actually reacts against the quality, quantity etc received after the purchasing the product i.e. in this stage he reacts on the basis of his getting satisfied after the purchase of the product. The buyer‟s decisions include the following:-  Product choice  Brand choice  Dealer choice  Purchase timing  Purchase amount. 26 Page
  27. 27. Consumer perception How do Buyers form their preference? Their preferences are influenced by their pastbuying experience, friend‟s and associate‟s advice, and the marketer‟s and competitor‟sinformation and promises. Though customer preference is a very qualitative term and it is verydifficult to measure. In this study an effort has been made to measure the customer preferencelevel.Customer Satisfaction “Satisfaction is a person‟s feelings of pleasure or disappointment resulting fromcomparing a product‟s perceived performance in relation to his or her expectation” As the definition makes it clear, satisfaction is a function of perceived performance andexpectations. If the performance falls short of the expectations of the customer, the customer isdissatisfied. If the performance exceeds the expectations, the customer is highly satisfied ordelighted.The detailed study of Consumer Behaviour or Consumer Preferences focuses on-  Who Buys products or services?  How do they buy products or services?  Where do they buy them?  How often do they buy them? 27 Page  When do they buy them?
  28. 28.  Why do they buy them?  How often do they use them? Many companies are aiming for high satisfaction because customers who are justsatisfied still find it easy to switch, when a better offer comes along. Those who are highlysatisfied are much less ready to switch. High satisfaction or delight creates an emotional affinitywith the brain, not just a rational preference. The result is high customer loyalty. In this highly competitive world customers plays a very important role. Thus, if acompany wants to survive then it should look forward to the determinants of customersatisfaction. Though it is a very subjective issue that differs from individual to individual yet,identifying some basic parameters of customer satisfaction is important. Satisfaction is a person‟s feeling of pleasure and disappointment resulting fromcomparing a product‟s perceived performance in relation to his or her expectations. It is only thecustomer delight that marketer aims for. 28 Page
  29. 29. RATIONALE OF STUDY:- To know about the customer preference and decision process with regard to 150cc bike. To know the Basic consumer buying behaviour and the reasons because of which they switch from one company to another. To know about the company‟s details (profile, Products) This study would help in revealing the type and specific qualities of the bikes offered by the company to their consumers. To study the satisfaction level of consumers who uses bikes. To study the factors influencing consumers to buy 150cc bikes. To study effect of advertisement on the purchasing decision of the consumers 29 Page
  30. 30. OBJECTIVE OF STUDY: The objective of the study is to analyze the customer buying behavior of the respondents in motorbikes of different brands . To study the future prospects of TVS motorbikes. To provide a fair picture of technology used by TVS motors. To study the sales trends of tvs motors. To analyze the quality of after sales services being provided by tvs motors. . To analyze the customer satisfaction. . To analyze the customer preference. 3To know which manufacturer is providing better services. . To analyze after sales services of bikes. To study the behavioral factors of consumers in motor bikes. . To suggest various factors to improve sales 30 Page
  31. 31. 7 -LITERATURE REVIEW:-A literature review is a body of text that aims to review the critical points of current knowledgeincluding substantive findings as well as theoretical and methodological contributions to aparticular topic. Literature reviews are secondary sources, and as such, do not report any new ororiginal experimental work.Simai Haji Mati was quoted saying that literature review should be referred to as reviewingand analyzing the work of literature in relation to the specified topic in research. Most often associated with academic-oriented literature, such as a thesis, a literature review usually precedes a research proposal and results section. Its ultimate goal is to bring the reader up to date with current literature on a topic and forms the basis for another goal, such as future 2 Gupta.C .B and Dr. Nair. N.Rajan - A business is based on understanding the customer and providing the kind of products that the customer wants. 3 Mamoria C.B. and Mamoria Satish - Consumer behaviour is the process where by individuals decide what, when, where, how and from whom to purchase goods and services. Buying behaviour may be viewed as an orderly process here by individual interacts with his environment for the purpose of making market decision on products and services. Nair Suja. R.4 - The success of the firm will be determined by how effective it has been in meeting the diverse customer needs and wants by treating each customer as unique and offering products and services to suit his/her needs.research that may be needed in the area.treatment of a torn ACL. And a review does not necessarily mean that your reader wants you togive your personal opinion on whether or not you liked these sources.Consumers buy not the products but bundle of emotions. Modern goods are recognized as 31essentially psychologically things, which are symbolic of personal attributes and goals and of Pagesocial patterns and strivings. All commercial objects have a symbolic character, and making a
  32. 32. purchase involves an assessment implicit on explicit of this symbolism to decide whether or notit fits (Sidney Levey, 1959).The research has shown repeatedly that positive free choice Beliefs are related to concurrentlyclaim purchasing as brand usage (Barwise and Fhournberg 1985; Bind, Channan andEhrenberg 1970; Costlebeny and Ehrenbag 1990). A “Usage factor” runs through the data.Many more people tend to associate a positive attribute with longer brands than associate it withsmaller brands. The explanation is that a larger brand has more claimed user than a smaller brandand the users of brand are more likely than non-users to give a positive Attribute response. Thisobservation also lies in much evidence in the literature that familiarity in users liking (e.g.,Harinsar 1977; Payme 1981; Sluckin, Hargreaves and Calman 1982; Zajanc 1968. Forcedchoice degree of association attitude done were similarly co-related with claimed usage in ourstudy of six packaged goods categories (Haley and case 1979).Barwise and Ehrenberg (1985) in addition showed that a smaller brand tended to get fewerpositive belief brand associations than a larger brand even within each claimed brand usagegrouping. Thus regular users of the brand leader scored that branch. This effect in known moregenerally as double jeopardy or DJ effect (e.g. Ehrenberg, Goodhardt, Cd Barwise 1990;McPhee 1963). DJ occurs simply as statistical selection effect due to the offering popularitieson making shows of the brands. There need not be any perceived differences between the brands.In contrast to these relationships with brand usage or market shares, very difference influencesshow up in respondent associates for same belief and brand combinations. For example, an eithera physical attribute or an advertising claim that is particularly connected with a brand canenhance it score for that belief of the attribute. The aggregate score for that brand/beliefcombination then deviates markedly from what would be expected on the basis of brand usagealone. (Barwise and Ehrenberg 1985); Bird and Ehrenberg 1970; castteben and Ehrenberg 1990).Pamela L. Alreck and Robert B.Settle (1999) felt that the principle objective of themarketer‟s is not simply to have a simple sale relation ship with buyer but also build relationship 32with buyer in the form of linking the brand to a particular need, associating it with a pleasant Pagemood, appealing to subconscious motives; conditioning buyers to prefer the brand through
  33. 33. KOTLER (2000) his book mentioned that a company practicing market segmentation realizesthat buyers differ in their needs and wants, purchasing behavior, demographic characteristics,product/service usage patterns, geographic locations, buying habits and other characteristicsA summary of literature review in branding reveals that the brand perception is notpredominantly depend upon on external parameters like age, income and education but dependson more on personality and psychological dimensions. The research is conducted to prove thatthe brand preference is independent of the above parameters age, income and education8 - METHODOLOGY:-SAMPLE DESIGN-It is well known fact that the most important step in marketing research process is to define theproblem. Choose for investigation because a problem well defined is half solved. That was thereason that at most care was taken while defining various parameters of the problem. Aftergiving through brain storming session, objectives were selected and the set on the base of theseobjectives. A questionnaire was designed major emphasis of which was gathering new ideas orinsight so as to determine and bind out solution to the problems.DATA SOURCE Research included gathering both Primary and Secondary data. Primary data is the firsthand data, which are selected a fresh and thus happen to be original in character. Primary Datawas crucial to know various customers and past consumer views about bikes and to calculate the 33market share of this brand in regards to other brands. Page
  34. 34. Secondary data are those which has been collected by some one else and which alreadyhave been passed through statistical process. Secondary data has been taken from internet,newspaper, magazines and companies web sites.RESEARCH APPROACH The research approach was used survey method which is a widely used method for datacollection and best suited for descriptive type of research survey includes research instrumentlike questionnaire which can be structured and unstructured. Target population is well identifiedand various methods like personal interviews and telephone interviews are employed.SAMPLING UNIT It gives the target population that will be sampled. This research was carried in Muktsar(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 Tvs V/S Hero Honda and data wastaken in the City Muktsar only. 34 Page
  35. 35. SAMPLING Method: Simple Random Sampling Area: Circle Office in Jaipur and also other offices in Jaipur of Reliance. Unit: Employees of Reliance communications in circle office. Sample size: 100 employees Research tool: Questionnaire. Sampling may be defined as the selection of some parts of an agreement or totality for the purpose of study. All the items in any field of inquiry constitute a universe or population, a complete enumeration of all the items in the population is known as Census inquiry. But when the field of inquiry is large this method becomes difficult to adopt because of the limited no. of resources involved in the case sample survey method is chosen under which units are selected in such a way that they represent the entire universe. SAMPLING DESIGN CENSUS METHOD: - All the items in any field of inquiry constitute a „Universe‟ or „Population‟. A complete enumeration of all the items in the „Population‟ is known as a Census inquiry. It can be presumed that in such an inquiry, when all items are covered, no element of chance is left and highest accuracy is obtained. But in practical it is not true in all cases. This type of inquiry involves a great deal of time, money and energy. Therefore, when the field of inquiry is large, this method becomes difficult to adopt because of the resources involved. SAMPLING METHOD:- When field studies are undertaken in practical life, consideration of time and cost almost invariably lead to a selection of respondents i.e. 35 selection of only few items. The respondent selected should be as representative of total Page population. These respondents constitute what is technically called a „Sample‟ and the
  36. 36. selection process is called „Sampling Technique‟. The survey so conducted is known as „Sample Survey‟. Implementation of Sample Design: - A sample design is a definite plan for obtaining asample from a given population. It refers to the technique or the procedure the researcher wouldadopt in selecting items for the sample. Sampling design may as well lay down the number ofitems to be included in the sample i.e. the size of sample. Sample design is determined before thedata are colleted.  Steps In Sampling Design :- While developing a research design following items are taken into consideration:- I. Type of universe: - First and the foremost step is to clearly define the universe to be studied. As I have taken the area of Yamuna Nagar City (Haryana), so for me here the universe is Yamuna Nagar area. No doubt it is a finite universe but the area is very big and can‟t be covered easily due to shortage of time. II. Sampling unit: - A decision has to be taken concerning a sampling unit before selecting sample. Here my sample unit includes college going students who own bikes. III. Size of sample: - This refers to the number of items to be selected from the universe to constitute a sample. Here I have taken the sample of 200 College going students who have bikes. IV. Parameters of interest: - In determining the sample design, one must consider the question of the specific population parameters which are of interest. Here I had taken only college going students who own their bike. 36 V. Sampling procedure: - Finally the technique of selecting the sample is to be Page dealt with. That means through which method the sample has been collected.
  37. 37. DATACOLLECTION METHODSData collection is an integral part of the marketing research. There are several ways of collectingthe appropriate data, which differ considerably in context of money costs, time and otherresources at the disposal of the researcher. The researcher should keep in mind two types of dataviz. Primary and Secondary.THE PRIMARY DATAare those, which are collected afresh and for the first time, and thus happen to be original incharacter.Primary Data is collected through: Questionnaire- in which division of questions are as follows: (a) No. of close ended questions -9 (b) No. of open ended questions-3 Observation Unsturctured interviewsTHE SECONDARY DATAare those, which have already been collected by some one else like various journals andpublications of the company and that are used for quick compilation of the report.Both the methods were used for the compilation of the project. 37 Page
  38. 38. HYPOTHESIS TESTING: - During this research project I came in to contact with many customers who are havingbikes. It has been found that in Hero Honda mostly the customers are having splendor while theratio of the customers using Passion, Karizma and other bikes are comparatively low. In Bajajthe customers are giving more preference to Discover and Pulsar models and in case of TVSBikes the customers are givig more preference to the other models rather than Flame,StarcityandApache. The maximum numbers of customers that are using these bikes fall in the income groupof 200000-300000. It has been observed that the customers are using their bikes mostly for official andpersonal purpose. It is observed that the awareness of Hero Honda bikes mostly comes fromfriends while of Bajaj and TVS the awareness comes from newspapers and televisions. Out ofthe sample size of 90 customers, 65 customers agree with the fact that advertisements play a verysignificant role in influencing their behavior to choose the bike. On the other hand 15 customersdo not agree to this fact. While remaining 10 customers are not sure about it. When the customers are asked that are they satisfied with the performance of their bikesthen most of them agrees to the fact. Out of the sample size of 90 customers, 55 customers saysthat they are satisfied with the performance of their bikes. On the other hand 28 customers arenot satisfied with the performance of the bikes that they are having. While the remaining 10customers are unable to say anything. It is observed that most of the customers are having fullknowledge of the bike before purchasing It has been seen that In Hero Honda bikes the mileage of the bike and the value that itadds to the status symbol of the customers influences the decision criteria of most of thecustomers. In Bajaj bikes customers gets more influenced by the price and quality of the bike andalso they think that it adds value to their prestige. While in case of TVS bike the economic priceof the bikes influences the buying behavior of the customers. 38 Page
  39. 39. CALCULATION:-Observed data income Total 1-2 lack 2-3 lack 3-4 lack above 4 lackhero Honda 4 21 2 3 30Bajaj 8 18 4 2 30TVS 10 8 7 5 30Total 22 45 13 10 90Expected frequency income 1-2 lack 2-3 lack 3-4 lack above 4 lackhero Honda 7.33 15 4.3 3.33 29.96Bajaj 7.33 15 4.3 3.33 29.96TVS 7.33 15 4.3 3.33 29.96 21.99 45 12.9 9.99(Observed data-expected frequency) income 1-2 lack 2-3 lack 3-4 lack above 4 lackhero Honda -3.33 6 -2.3 -0.33 0.04Bajaj 0.67 3 -0.3 -1.33 2.04TVS 2.67 -7 2.7 1.67 0.04 0.01 2 0.1 0.01(Observed data-expected frequency)2 1-2 lack 2-3 lack 3-4 lack above 4 lackhero Honda 11.0889 36 5.29 0.1089Bajaj 0.4489 9 0.09 1.7689TVS 7.1289 49 7.29 2.7889 39 Page
  40. 40. X2(calculated chi-square) = (OD-EF)2/EF 1-2 lack 2-3 lack 3-4 lack above 4 lackhero Honda 1.512810368 2.4 1.2302326 0.0327027Bajaj 0.061241473 0.6 0.0209302 0.5312012TVS 0.972564802 3.266666667 1.6953488 0.83750751Calculated chi-square value 13.16120635degree of freedom column 4 row 3DF (c-1) * (r-1)DF 6level of significant 10%from table value on 10% significant & 6 DFchi-square value 10.645conclusion :- calculated value is greater than table value so, null hypothesis is rejected, means Brand preference across all income categories is not equal 40 Page
  41. 41. ANALYSIS AND INTERPRETATION:- Q1) Which bike do you have? Hero Honda 47 Tvs 38 Any other 15 Hero honda TVS Any otherAnalysis : Hero Honda market share is more than 45 % and so we can say that hreo Honda dominate the whole market 41 Page
  42. 42. Q2) Which Model do you Have? Hero Honda Tvs Splender 21 apache 7 Passion 13 Star city 12 Karizma 7 Tvs scooty 11 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 No of Persons Tvs 10 apache 8 Star cityr 6 Tvs scootyr 4 Any other 2 0 1 Model Name 42Analysis : In hero honda Customer prefer splender and tvs customer prefer apache. Page
  43. 43. Q3) In which family Income level do you Fall? 100000-200000 22 200000-300000 45 300000-400000 23 above 400000 10 50 No of Persons 40 100000-200000 30 200000-300000 20 300000-400000 10 above 400000 0 1 Income levelAnalysis : IN THIS GRAFE MORE THAN 45% FAMILY IN BETWEEN 2 TO 3 LACK 43 Page
  44. 44. Q4) For how long do you own a bike? 0-1 year 34 1-2 year 29 2-3 year 26 above 3 year 11 40 30 No of 0-1 year 20 Persons 1-2 year 10 2-3 year 0 above 3 year 1 No of yearsAnalysis : IN THIS GRAPH ALMOST 34 % OF CUSTMER USING THE BIKE AT PRESENT TIME IN 1 YEAR.. 44 Page
  45. 45. Q5) For what purpose do you use your Motor Bike? Hero Honda Tvs Office Purpose 9 4 Personal purpose 13 15 Joy Purpose 19 16 Other 6 3 No of Persons 20 15 Hero Honda 10 Tvs 5 0 Office Personal Joy Other Purpose purpose Purpose PurposeAnalysis : In hero honda customer using the bike official used. and tvs customer using the bike personal purpose. 45 Page
  46. 46. Q6) How do you come to know about this Motor Bike? Hero Honda Tvs Newspaper 4 2 Television 23 16 Magazine 2 1 Friends & Relative 18 19 No of Persons 25 20 Newspaper 15 Television 10 Magzine Friends & Relative 5 0 Hero Honda TVS Name of CompanyAnalysis : Television adverting is the best for knowing the customer. for selling our product 46 Page
  47. 47. Q7) Does Advertisement Influence your decision in choosing a Motor Bike? Yes 87% No 5% Cant say 8% Yes No Cant sayAnalysis : Yes advertising influence the bike market because 87% people influencd by theadvertising 47 Page
  48. 48. Q8) Do you have full knowledge about Bikes before buying? Hero Honda Tvs Yes 25 23 No 22 15 30 25 No of persons 20 Yes 15 No 10 5 0 Hero Honda TVS Company NameAnalysis; in hero Honda people are less aware as comparison to tvs 48 Page
  49. 49. Q9) Which Factor below Influence your decision? Hero Honda Tvs Price 72% 78% Mileage 78% 64% Quality 65% 48% Resale Value 40% 28% Status symbol 10% 7% No of Persons 100% 80% Price Mileage 60% Quality 40% Resale Value 20% Status symbol 0% Hero Honda Tvs Company NameAnalsis price and milage is major facter for purchasing the bike because the ratio is high 49 Page
  50. 50. Q10) How would you rate the following factors of Bikes with respect to different company? Hero Honda Tvs Mileage 74% 72% Price 68% 65% Pick up 70% 80% Maintenance 58% 62% Look & Shape 85% 80% Brand Image 53% 55% No of Persons 100% 80% Mileage 60% Price 40% Pick up 20% Maintenance 0% Look & Shape Hero Honda Tvs Brande Image Company NameAnalsis in hero Honda people more think about the milage and look and shape and in tvs peoplemore concern about pick up 50 Page
  51. 51. Q11) If new Bike with good features comes in, then would you like to change your bike? Hero Honda Tvs Yes 19 21 No 17 14 Cant say 11 3 No of Persons 25 20 15 Hero Honda 10 Tvs 5 0 Yes No Cant say Views Analysis -In hero Honda and tvs both many people think about to change our brand if newfeature are come 51 Page
  52. 52.  9-RESULT:- To know about the customer preference and decision process with regard to 150cc bike. To know the Basic consumer buying behaviour and the reasons because of which they switch from one company to another. To know about the company‟s details (profile, Products) This study would help in revealing the type and specific qualities of the bikes offered by the company to their consumers. To study the satisfaction level of consumers who uses bikes. To study the factors influencing consumers to buy 150cc bikes. To study effect of advertisement on the purchasing decision of the consumers Most of the Flame, Apache, Pulsar, CBZ & Karizma are purchased by young generation 18 to 30 years because they prefer stylish looks and rest of the models of Hero Honda, TVS and Bajaj are purchased more by daily users who needs more average of bikes than looks. . Hero Honda is considered to be most fuel-efficient bike on Indian roads. Service & Spare parts are available throughout India in local markets also. While buying a motorcycle, economy is the main consideration in form of maintenance cost, fuel efficiency. Majority of the respondent had bought their motorcycle more than 3 years 52 Page
  53. 53. It has been seen that In Hero Honda bikes the mileage of the bike and the value that it adds to the status symbol of the customers influences the decision criteria of most of the customers. In While in case of TVS bike the economic price of the bikes influences the buying behavior of the customers.It is observed that in rating of different features of different bikes people give maximum ratingto the look and shape of the bike. At the second level they givetheir rating to the pick up. At thethird level they rate mileage. And at the fourth level they give points to maintenance. At last theyrate price and brand image. 53 Page
  54. 54. Findings:- • During this research project I came in to contact with many customers who are having bikes. It has been found that in Hero Honda mostly the customers are having splendor while the ratio of the customers using Passion, Karizma and other bikes are comparatively low. In the customers are giving more preference to Discover and Pulsar models and in case of TVS Bikes the customers are givig more preference to the other models rather than Flame,Starcityand Apache. The maximum numbers of customers that are using these bikes fall in the income group of 200000-300000. • It has been observed that the customers are using their bikes mostly for official and personal purpose. It is observed that the awareness of Hero Honda bikes mostly comes TVS the awareness comes from newspapers and televisions. Out of the sample size of 90 customers, 65 customers agree with the fact that advertisements play a very significant role in influencing their behavior to choose the bike. On the other hand 15 customers do not agree to this fact. While remaining 10 customers are not sure about it. • When the customers are asked that are they satisfied with the performance of their bikes then most of them agrees to the fact. Out of the sample size of 90 customers, 55 customers says that they are satisfied with the performance of their bikes. On the other hand 28 customers are not satisfied with the performance of the bikes that they are having. having full knowledge of the bike before purchasing • It has been seen that In Hero Honda bikes the mileage of the bike and the value that it adds to the status symbol of the customers influences the decision criteria of most of the customers. In While in case of TVS bike the economic price of the bikes influences the buying behavior of the customers. • It is observed that in rating of different features of different bikes people give maximum rating to the look and shape of the bike. At the second level they 54 givetheir rating to the pick up. At the third level they rate mileage. And at the Page
  55. 55. fourth level they give points to maintenance. At last they rate price and brand image.  .SUMMARY:-Ever since man evolved into social animal he felt the need for “Transportation”. As he formeda civilization he felt the need for “Better Transportation”. Today on the threshold of exploringthe universe he feels the need of “Best Transportation”.Truly the modern world relies on transportation which can be airways, roadways, railways andon water. Bicycle was the most important part of road transportation in early days and as thescenario changed bicycle was transformed into a fast, stylish and trendy mode of transportknown as Motorcycle nowadays known as Motorbike.Each human being that is living in this social world knows the importance of bikes because itserves the purpose in any kind of situation and in any part of this world.The topic of the project is Customer Buying Behavior taking TVS for comparison. TVSmotor company is one of the leading bike manufacturers in India. The analysis of the project wasbased on customer‟s point of view. For the study, both primary data and secondary data wererequired. The primary data was collectedbased on a survey research, using a structured questionnaire with both open ended and closed-ended questions.The sampling procedure used was random sampling for the 1st objective i.e. to understandconsumer needs on motorbikes. For the 2nd objective i.e. to understand the awareness levels ofTVS I went to the prospects and met the respondents to fill the questionnaire. The mode ofsurvey was of personal interview, where the respondents filled up the questionnaires. Thesecondary data was collected from business newspapers, magazines, 55 Page
  56. 56. Company brochures, journals and the Internet. The major conclusion from this study was thatTVS has to improve itself to gain the 1st position in the market as it is doing well to maintain its3rd position in the market.In terms of competition TVS has neck-to-neck competition with Hero Honda and Bajaj. TVS hasa lot of work to do if it has to take lead and remain the leading manufacturer in India. 10- CONCLUSION AND SUGGESTION:-The Indian two wheeler industry today offers more than 70 models to a buyer. Andmanufacturers are launching new models every day…… More than 20 models were launched inthe last year.Top this up with a variety of promises ranging from free gifts and financial schemes to theattractive looking models and jingles in the advertisement.In this whirlwind of speed and confusion maze, choosing the right pair of wheels can be a tryingexperience for the common man.In such a situation, the buyer has to first narrow down his search to a given category of twowheeler. A lady doctor may decide to look only at gearless scooters while a collegian with a richfather may only look at premium bikes. CONCLUSION:-  Most of the Pulsar, CBZ & Karizma are purchased by young generation 18 to 30 because they prefer stylish looks and rest of the 56 models of Hero Honda are purchased more by daily users who Page needs more average of bikes than looks.
  57. 57.  Hero Honda is considered to be most fuel-efficient bike on Indian roads.  Service & Spare parts are available throughout India in local markets also.  While buying a motorcycle, economy is the main consideration in form of maintenance cost, fuel efficiency.  The facts and figures shown in the analysis is correct and the survey has been done in a good faith and responsibility  As HERO HONDA, BAJAJ and YAMAHA have taken the 1st, 2nd and 3rd position. Thus TVS motor co. has to make some more efforts to increase the awareness among the people in the context of bikes.  The respondents have been asked about the most effective slogan in different brands of bikes in which again HONDA and BAJAJ have taken the lead. TVS motor co. has emphasized only on VICTOR and not on other bikes, thus people only know about VICTOR and not other bikes. Print media and different types of media should be used to make people know about the slogan.  The respondents in the factors, which they consider while purchasing a bike, have done the ranking. MILEAGE is the first factor following with POWER and STYLE and also with an adaptable PRICE. The company has to make efforts for making a product that should have all these three factors with considerable price.  The most influencing factor in purchasing decision of the bike is FAMILY and after that FRIENDS which is not at all linked with the company investment. The company generally invests in Dealer promotion and Media,which is not appropriate as analyzed in this question. Awareness level through Media and dealershould be increased.  When asked about the experience at the TVS dealership most of the respondents had a good and average experience with a small number having bad experience. The small number of bad experience can be avoided by giving warm welcome and good behavior 57 by the staff. Page
  58. 58.  The respondents who have not visited the TVS dealership are either not interested in TVS bikes or they are not satisfied with TVS products. In this matter the dealer should increase the road shows as well as arrange regular customers meeting which will create interests in other prospects. Most of the respondents had knowledge about the TVS bikes, which is a good sign for the TVS motor company. In TVS motor company VICTOR is the most popular bike and very interestingly without any media interaction FIERO F2 has taken the 2 nd spot with CENTRA on the 3rd spot which has taken a lead with only one place from MAX-R .It is recommended that FIERO F2 should be given equal sales promotion than CENTRA because of its popularity has come through people network and not through channel media. The respondents have liked the service facility and the staff but the important factor is the lack of space. The dealership in Bhilai has to improve the staff as well as the after sales services and the customer relations. Celebrity endorsement does not affect most of the respondents whereas only 34% of the respondents have an affect over the purchasing decision of bike. Company should give more importance to the product so as to give the best in quality to the customer. In context to popularity TVS ranks 3rd according to this sample size and thus the company should introduce new products as well as reposition its product according to the demand in the market. In the case of no price consideration TVS ranks 4th and according to survey analysis the respondent wants to purchase his dream bike which TVS Company has to make in comparison with HERO HONDA, BAJAJ and ENFIELD BULLET. 58 Page
  59. 59. SUGGESTION:- Tvs should introduce some more models having more engine power. Hero Honda should think about fuel efficiency in case of upper segment bikes. More service centers should be opened. Maintenance cost and the availability of the spare parts should also be given due importance. They also introduce some good finance/discount schemes for students. The price should be economic. In the analysis the respondents have shown that they consider TVS motor company after HERO HONDA and BAJAJ and this is a major concern for the company. TVS motor company has to make some arrangements to increase the awareness level among the prospects through media. The company should also emphasize on other bikes excluding TVS VICTOR and TVS CENTRA because some of the bikes in TVS like Apache RTR are more popular than these bikes in the surveyed area. In Bhilai the respondents who have visited the dealership are not satisfied with the service facilities which can be improved by regular visit of the service managers as well as providing regular training to the staff as well as the owner. The dealership in Bhilai also lacks in space, which is a major concern because the first impression on the mind of the customer is about the window display, which can be improved with the help of the professionals. 59 Page
  60. 60. 11 - FUTURE IMPLICATIONS OF THE STUDY :-The global financial crisis, the consequent serious liquidity issues and higher financing costs arelikely to impact the growth prospects of the two-wheeler industry. Retail finance has becomeeven more difficult. The tight liquidity will affect the ability of dealers to stock two-wheelers.The drop in the commodity prices, however, is a welcome break.The company will continue the vigorous implementation of its improved value-engineeringprogram to reduce costs. The company continues to maintain the highest quality standards of allits products.SCOPE OF THE STUDYThe scope of the study is to study the customer buying behavior of the respondents in New Delhiand attain the awareness level of the customers. The scope is that the services of the dealer,advertising media as well as celebrity has made an effect on the customer or not and how much.This study also allows knowing the future prospects of the company and where it is at present inthe market.Although 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 under pressure asmarketing 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 in theyears to come. One of the major assumptions underlying the motorcycles rush was that if the 60market was considerably large and was growing at a constant pace, there was room for aprofitable existence for all brands. Page
  61. 61. In 2001, there were over 30 motorcycle brands in the market. However, with the top five brandsaccounting for more than 60% of the market, only 40% of the market was available for all othernew brands put together. Despite the launch of more vehicles, the survival prospects of many ofthe individual brands were deemed to be rather bleak.Further, 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 for scootersand 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 scooter segmentwith major national and foreign players reinforcing their presence, it was unlikely that the entiregrowth 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 the declinestage would invariably come some day. There was little differentiation between the brands beinglaunched apart from styling as most companies had introduced their four-stroke vehicles. 61 Page
  62. 62. 12 - LIMITATION OF THE STUDY: – • This report incorporates sincere efforts to submit the best possible dossier on the topic assigned because no study can be perfect. There are bound to be limitations that I faced and within which I had to work. • The data used in most part of the report is secondary data, it has inherent discrepancy. • As TVS is still not a household brand name, some of the respondents were not completely aware of its products and track record • Research work was carried out in one Distt of indore only the finding may not be applicable to the other parts of the country because of social and cultural differences. • The sample was collected using connivance-sampling techniques. As such result may not give an exact representation of the population. • Shortage of time is also reason for incomprehensiveness. • The views of the people are biased therefore it doesn‟t reflect true picture. 62 Page
  63. 63. 13- BIBLOGRAPHY :–BOOKS:  Name of the book :- Marketing research Author : - Dr. C.B.Mamoria  Name of the book :- Marketing research Author : - Mr. Kothari.MAGAZINES, JOURNALS AND NEWSPAPERS:  Journals published by Hero Honda, Annual Report  Journals published by TVs Anural Report 63 Page
  64. 64. 14- WEBLIOGRAPHY :- 1. www.herohonda.com 2. www.google.com 3. www.tvs.com 4. www.twowheeler.com 5. www.extrememachines.com 64 Page

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