AUTOMOBILE INDUSTRY IN INDIA
(SPECIAL FOCUS ON BAJAJ PULSAR BIKES)
By: Nikhil jha
3. COMPANY PROFILE (BAJAJ AUTO LTD)……………………..
5. S.W.O.T ANALYSIS………………………………………………..
6. OBJECTIVE OF STUDY………………………………………….
7. IMPORTANCE OF STUDY……………………………………….
9. MARKET SHARE AND GROWTH RATES……………………..
11. PRIMARY DATA ANALYSIS……………………………………..
I am extremely grateful to Mr. Mukesh srivastava for providing me the honor of carrying
out the project, which is helped me to put my learning’s into experience. Without his
guidance I will not be able to proceed with my project in the right direction.
I would like to express my sincere regards to the staff of marketing, whose help and
guidance enables me to know what exactly consumer’s preference towards automobile
industry is all about.
I would also like to thank my family friends and relatives who have helped me and supported me
in all possible ways.
A Project report needs co-operation, guidance and experience of many more other than
the persons whose name appears on the cover, I would like to thank each and everyone
will help me in our endeavor.
The Indian automotive industry consists of five segments: commercial vehicles; multi-
utility vehicles & passenger cars; two-wheelers; three-wheelers; and tractors. With
5,822,963 units sold in the domestic market and 453,591 units exported during the first
nine months of FY2005
(9MFY2005), the industry (excluding tractors) marked a growth of 17% over the
corresponding previous. The two-wheeler sales have witnessed a spectacular growth
trend since the mid nineties. Two-wheelers: Market Size & Growth In terms of volume,
4,613,436 units of two-wheelers were sold in the country in 9MFY2005 with 256,765
units exported. The total two-
wheeler sales of the Indian industry accounted for around 77.5% of the total vehicles
sold in the period mentioned
After facing its worst recession during the early 1990s, the industry bounced back with a
25% increase in volume sales in FY1995.However, the momentum could not be
sustained and sales growth dipped to 20% in FY1996 and further down to 12% in
FY1997. The economic slowdown in FY1998 took a heavy toll of two-wheeler sales, with
the year-on-year sales (volume) growth rate declining to 3% that year. However, sales
picked up thereafter mainly on the strength of an
increase in the disposable income of middle-income salaried people (following the
implementation of the Fifth Pay Commission's recommendations), higher access to
relatively inexpensive financing, and increasing availability of fuel efficient two-wheeler
Nevertheless, this phenomenon proved short-lived and the two-wheeler sales declined
marginally in FY2001. This was followed by a revival in sales growth for the industry in
FY2002. Although, the overall two- wheeler sales increased in FY2002, the scooter and
faced de-growth. FY2003 also witnessed a healthy growth in overall two-wheeler sales
led by higher growth in motorcycles even as the sales of scooters and mopeds continued
to decline. Healthy growth in two- wheeler sales during FY2004 was led by growth in
motorcycles even as
the scooters segment posted healthy growth while the mopeds continued to decline.
Figure 1 presents the variations across various product sub-segments of the two-
wheeler industry between FY1995 and FY2004.
The demand for two-wheelers has been influenced by a number of factors over the past
five years. The key demand drivers for the growth of the two-wheeler industry are as
• Inadequate public transportation system, especially in the semi-urban and rural
• Increased availability of cheap consumer financing in the past 3-4 years;
• Increasing availability of fuel-efficient and low-maintenance models;
• Increasing urbanization, which creates a need for personal transportation;
• Changes in the demographic profile;
• Difference between two-wheeler and passenger car prices, which makes two-
wheelers the entry-level vehicle;
• Steady increase in per capita income over the past five years; and
• Increasing number of models with different features to satisfy diverse consumer
BAJAJ Auto limited
Bajaj Auto is a major Indian automobile manufacturer. It is India's largest and the world's 4th
largest two- and three-wheeler maker With Kawasaki Heavy Industries of Japan, Bajaj
manufactures state-of-the-art range of two-wheelers. The brand, Pulsar is continually
dominating the Indian motorcycle market in the premium segment. Its Discover DTSi is
also a successful bike on Indian roads.
It is based in Pune, Maharashtra, with plants in Akurdi and Chakan (Pune),Waluj (near
Aurangabad) and Pantnagar in Uttaranchal. Bajaj Auto makes and exports motor
scooters, motorcycles and the auto Rickshaw.
The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946. Over the last
decade, the company has successfully changed its image from a scooter manufacturer
to a two wheeler manufacturer. Its product range encompasses scooterettes, scooters
and motorcycles. Its real growth in numbers has come in the last four years after
successful introduction of a few models in the motorcycle segment.
The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.
Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading
Corporation Private Limited. It started off by selling imported two- and three-wheelers in
India. In 1959, it obtained license from the Government of India to manufacture two- and
three-wheelers and it went public in 1960. In 1970, it rolled out its 100,000th vehicle. In
1977, it managed to produce and sell 100,000 vehicles in a single financial year. In
1985, it started producing at Waluj in Abramabad. In 1986, it managed to produce and
sell 500,000 vehicles in a single financial year. In 1995, it rolled out its ten millionth
vehicles and produced and sold 1 million vehicles in a year.
Bajaj's Small Car in 2010
India's second largest bike manufacturer Bajaj Auto Ltd has announced to launch its
concept car by 2010. The small 'Lite' will be in competition to Tata Nano which is tagged
as world's cheapest car. This small concept car is being designed in collaboration with
Renault and Nissan but it will not be for Rs 1 lakh. Bajaj Auto managing director Rajiv
Bajaj said that the focus is on performance of the car rather than cost. Bajaj motors has
clarified that mileage, maintenance and carbon emissions. Are the sole objectives in this
Founder Jamnalal Bajaj
Year of Establishment 1926
Industry Automotive - Two & Three Wheelers
Business Group The Bajaj Group
Listings & its codes BSE - Code: 500490; NSE - Code: BAJAJAUTO
Presence Distribution network covers 50 countries.
Dominant presence in Sri Lanka, Bangladesh, Columbia,
Guatemala, Peru, Egypt, Iran and Indonesia.
Joint Venture Kawasaki Heavy Industries of Japan
Registered & Head Office Akurdi
Pune - 411035
Works Akurdi, Pune 411035
Bajaj Nagar, Waluj Aurangabad 431136
Chakan Industrial Area, Chakan, Pune 411501
Segment and Brands
4S 4S Champion Bajaj Avenger
Bajaj Pulsar 135
Bajaj CT 100 Bajaj Discover Bajaj Platina
Bajaj Platina DTS
DTS FI 220
Bajaj XCD 125
Boxer Caliber Caliber115
KB RTZ KB100
Scooters Bajaj Chetak Bajaj Kristal Dtsi Bajaj Wave
Awards & Accolades
2005 Bajaj Discover DTS-i was chosen as Bike of the Year and
Indigenous Design of the Year by Overdrive Awards.
2004 Bajaj Auto was chosen as Bike Maker of the Year by ICICI Bank
DTS-i Technology was chosen as Auto Tech of the Year by ICICI
Bank Overdrive Awards.
Bajaj Pulsar DTS-i became Bike of the Year by ICICI Bank
Wind 125 chosen as the Two Wheeler of the Year by CNBC
Wind 125 chosen as the Bike of the Year by Business Standard
2003 Bajaj Pulsar 180 DTS-i chosen as Wheels Viewers Choice Two
Wheeler of the Year and Best Two Wheeler by BBC World Wheels
Bajaj Pulsar 150 DTS-i chosen as Best Two Wheeler between Rs.
45,000 to Rs. 55,000 by BBC World Wheels Award.
Bajaj Boxer AT KTEC chosen as Best Two Wheeler under Rs.
30,000 by BBC World Wheels Award.
Bajaj Pulsar chosen as Motorcycle Total Customer Satisfaction
Study by NFO Automotive.
Bajaj Pulsar chosen as Bike of the Year by ICICI Bank OVERDRIVE
2002 Bajaj Pulsar chosen as Most Exciting Bike of the Year by
Bajaj Eliminator chosen as Bike of the Year by OVERDRIVE Awards.
2001 Bajaj Eliminator chosen as Most Exciting Bike of the Year by
Sales 2004-05 (Nos.) 2003-04 (Nos.)
Motorcycle 1,449,710 1,023,551
Other two-wheelers 152,936 265,398
Total two wheelers 1,602,646 1,288,949
Three wheeler 222,053 229,182
Total two & three
Of the above, exports were:-
Two wheelers 130,945 90,210
Three wheelers 65,765 65,797
Total Exports 196, 710 156,007
Financials at a Glance
Automotive 20020.4 16071.8 55054.0 42852.1 59338.9
Insurance 9839.6 2917.4 20847.3 7303.1 14325.4
1074.8 873.9 3404.3 2818.3 4095.2
Total 30934.8 19863.1 79305.6 52973.5 77759.5
57.3 39.2 211.6 245.4 290.7
30877.5 19823.9 79094.0 52728.1 77468.8
Automotive 3069.5 1863.5 8067.0 5217.6 7233.4
Insurance (259.3) 59.8 (363.9) 451.5 402.1
927.8 856.4 3139.3 2683.8 3877.8
Total 3738.0 2779.7 10842.4 8352.9 11513.3
Less: Interest 1.4 2.7 2.8 5.0 6.7
3736.6 2777.0 10839.6 8347.9 11506.6
Automotive 9916.9 7931.6 9916.9 7931.6 9084.9
Insurance 3853.7 3625.1 3853.7 3625.1 3355.7
53308.0 46392.0 53308.0 46392.0 47354.6
Unallocable 1069.3 329.1 1069.3 329.1 (1729.9)
Total 68147.9 58277.8 68147.9 58277.8 58065.3
2005 Bajaj Avenger and Bajaj Wave launched.
2004 Bajaj Discover DTS-i, New Bajaj Chetak 4 stroke with Wonder Geaf
and Bajaj CT100 launched. Bajaj also unveils new brand identity, dons
new symbol, logo and brand line.
2003 Pulsar DTS-i and Bajaj Wind 125-The World Bike was launched. In the
executive motorcycle segment, its Caliber 115 "Hoodibabaa!" was
launched. 107,115 Motorcycles sold in a month.
2001 Launches Pulsar and Eliminator.
2000 Bajaj Saffire was introduced.
1999 Caliber motorcycle notches up 100,000 sales in record time of 12
months. Production commences at Chakan plant.
1998 Kawasaki Bajaj Caliber rolls out of Waluj. Legend, India's first four-
stroke scooter rolls out of Akurdi. Spirit launched
Since 1986, there is a technical tie-up of Bajaj Auto Ltd. with Kawasaki Heavy Industries
of Japan to manufacture state-of-art range of latest two-wheelers in India. The JV has
already given the Indian market the KB series, 4S and 4S Champion, Boxer, the Caliber
series, and Wind125.
Kawasaki Heavy Industries is a Fortune 500 company with a turnover of USD 10 billion
(Rs. 45,840 crore). It has crafted new technologies for more than hundred years. The
technologies of KHI have redefined space systems, aircrafts, jet engines, ships,
locomotive, energy plants, automation system, construction machinery, and of course
high reliability two-wheelers.
KHI has given the world its legendary series of 600-1200cc Ninja and 1600 Vulcan
bikes. Straight from its design boards, the Kawasaki Bajaj Eliminator, India's first real
cruiser bike, redefines the pleasure of "biking" in looks as well as performance.
'Inspiring Confidence,' the tagline, has build up confidence, through excitement
engineering, not only to domestic consumers but also internationally. Established just
eight decades back in 1926 by Jamnalal Bajaj, the company has been vested with
India's largest exporter of two and three wheelers, 196,710 units in 2004-05, a great 26
per cent jump over the previous year.
Bajaj Auto Ltd. sales have increased by approximately 21 per cent in the year 2004-05,
which exceeds Rs 65.4 billion, a record in the history of the company. The gross
operating profit stands at Rs. 9.3 billion, again a record. The profits after tax of the BAL
are close to Rs. 7.7 billion, and the pre-tax return on operating capital is at an impressive
80 per cent.
The strength of the company is its quality products, excellence in engineering and
design, and its ability to delight the customers. The Pulsar, introduced in November
2004, is continually dominating the premium segment of the motorcycle market, helping
to maintain the market superiority. Discover DTSi, one more successful bike on Indian
roads, is in the 'value' segment of the motorcycle market. It incorporates a high degree of
power with fuel efficiency of a 100 cc motorcycle.
BAL is committed to prevention of pollution, continual improvement of environment
performance and compliance with all environmental legislation and regulations. They
always believe in providing the customer 'value for money' and keeps an special eye
upon quality, safety, productivity, cost and delivery.
Bajaj Pulsar is a motorcycle brand owned by Bajaj Auto in India. The two wheeler was
developed by the product engineering division of Bajaj Auto in association with
motorcycle designer Glynn Kerr Tokyo R&D. Currently there are four variants available
-with engine capacities of 150cc, 180 and two variants with capacities of 220 cc. More
than a million units of Pulsar were sold by November 2005. A Pulsar 200
variant was discontinued in July 2009. With monthly sales of more than 48,000 units in
June 2009, Pulsar is the leader in the 150 cc segment in India with a market share of
Before the introduction of the Pulsar, the Indian motorcycle market trend was towards
fuel efficient, small capacity motorcycles (that formed the 80-125 cc class). Bigger
motorcycles with higher capacity virtually did not exist (except for Enfield Bullet). The
launch and success of Hero Honda CBZ in 1999 showed that there was demand for
performance bikes. Bajaj took the cue from there on and launched the Pulsar twins in
India on November 24, 2001. Since the introduction and success of Bajaj Pulsar, the
Indian youth began expecting high power and other features from affordable
Updates on Bajaj Pulsar
Bajaj Auto has now introduced a new colour, Metallic Orange to Bajaj Pulsar. The
availability of color variants always attract customers. Moreover metallic orange is a real
vibrant option to go for. It will be a good option for those who like lively colours and want
to look different in crowd. New Bajaj Pulsar to be launch in 2011 with new style and
Bajaj Pulsar 135 DTS-i
It is the flagship variant of Bajaj Pulsar is powered by the
135cc engine. This is the word's first 4 valve powered
Bajaj Pulsar 150 DTS-i
This is the first model of Bajaj Pulsar series in India
powered by a 150cc mill.
Bajaj Pulsar 180 DTS-i
This variant of Bajaj Pulsar is powered by the more
powerful 178.6cc engine that delivers more power and
torques that results good engine performance and
acceleration. Its wheelbase is higher than Bajaj Pulsar
Bajaj Pulsar 220 DTS-i
It is the top end variant of Bajaj Pulsar which is powered
by the more powerful 220cc, Oil-Cooled petrol engine. It
offers better engine performance and acceleration in
comparison to the lower variants.
Bajaj Pulsar Bikes
Bajaj Pulsar 220 DTSi
Price Rs.82, 165 Bajaj Pulsar 220 DTSi in Delhi
Average 35 kmpl Petrol
Engine 220 cc
Bajaj Pulsar 200cc DT
Price Rs.67, 755 Bajaj Pulsar 200cc DTSi in Delhi
Average 38.3 kmpl Petrol
Engine 200 cc
Bajaj New Pulsar 180cc DTSi
Price Rs.64, 736 Bajaj New Pulsar 180cc DTSi in Delhi
Average 45 kmpl Petrol
Engine 180 cc
Bajaj New Pulsar 150cc DTSi
Price Rs.61,605 Bajaj New Pulsar 150cc DTSi in Delhi
Average 48.4 kmpl Petrol
Engine 150 cc
Bajaj Pulsar 135
Price Rs.52,997 Bajaj Pulsar 135 in Delhi
Average 54kmpl Petrol
Competitors of bajaj pulsar
TWO WHEELERS IN INDIA
The feeling of freedom and being one with the Nature comes only from riding a two
wheeler. Indians prefer the two wheelers because of their small manageable size, low
maintenance, pricing and easy loan repayments. Indian streets are full of people of all
age groups riding a two wheeler. Motorized two wheelers are seen as a symbol of status
by the populace. Thus, in India, we would see swanky four wheels jostling with our ever
reliable and sturdy steed: the two wheeler
India is the second largest producer and manufacturer of two-wheelers in the world. It
stands next only to Japan and China in terms of the number of two-wheelers produced
and domestic sales respectively. Indian two-wheeler industry has got spectacular growth
in the last few years. Indian two-wheeler industry had a small beginning in the early 50's.
The Automobile Products of India (API) started manufacturing scooters in the country.
Bikes are a major segment of Indian two wheeler industry, the other two being scooters
and mopeds. Indian companies are among the largest two-wheeler manufacturers in the
In the initial stages, the scooter segment was dominated by API; it was later overtaken
by Bajaj Auto. Although various government and private enterprises entered the fray for
scooters, the only new player that has lasted till today is LML.
The motorcycle segment was initially dominated by Enfield 350cc bikes and Escorts
The two-wheeler market was opened to foreign competition in the mid-80s. And the then
market leaders - Escorts and Enfield - were caught unaware by the onslaught of the
100cc bikes of the four Indo-Japanese joint ventures. With the availability of fuel efficient
low power bikes, demand swelled, resulting in Hero Honda - then the only producer of
four stroke bikes (100cc category), gaining a top slot.
The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and
Hero Honda brought in the first two-stroke and four-stroke engine motorcycles
respectively. These two players initially started with assembly of CKD kits, and later on
progressed to indigenous manufacturing. In the 90s the major growth for motorcycle
segment was brought in by Japanese motorcycles, which grew at a rate of nearly 25%
CAGR in the last five years.
The industry had a smooth ride in the 50s, 60s and 70s when the Government prohibited
new entries and strictly controlled capacity expansion. The industry saw a sudden
growth in the 80s. The industry witnessed a steady growth of 14% leading to a peak
volume of 1.9mn vehicles in 1990.
In 1990, the entire automobile industry saw a drastic fall in demand. This resulted in a
decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4mn vehicles.
Barring Hero Honda, all the major producers suffered from recession in FY93 and FY94.
Hero Honda showed a marginal decline in 1992.
The reasons for recession in the sector were the incessant rise in fuel prices, high input
costs and reduced purchasing power due to significant rise in general price level and
credit crunch in consumer financing. Factors like increased production in 1992, due to
new entrants coupled with the recession in the industry resulted in company either
reporting losses or a fall in profits.
Key players in the Two-wheeler Industry:
There are many two-wheeler manufacturers in India. Major players in the 2-wheeler
industry are Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and
TVS Motor Company Ltd (TVS).
The other key players in the two-wheeler industry are Kinetic Motor Company Ltd
(KMCL), Kinetic Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors
India Ltd (Yamaha), Majestic Auto Ltd (Majestic Auto), Royal Enfield Ltd
(REL) and Honda Motorcycle & Scooter India (P) Ltd (HMSI).
Types of Two-wheelers in India:
There are mainly three types of two-wheelers available in India. They are
Motorcycles, Scooters and Scooterettes/Mopeds.
Motorcycles in India:
Bikes comprise a major segment of Indian two wheeler industry.
Company : Bajaj Auto Ltd Company : HERO HONDA
• * Bajaj Avenger
* Bajaj CT 100
* Bajaj Platina
* Bajaj Discover DTSi
* Bajaj Pulsar DTSi
* Bajaj Wave
* Bajaj Wind 125
• Sonic DTSi * Hero Honda Achiever
* Hero Honda CD Dawn
* Hero Honda CD Deluxe
* Hero Honda Glamour
* Hero Honda Glamour-Fi
* Hero Honda Karizma
* Hero Honda Passion Plus
* Hero Honda Pleasure
* Hero Honda Super Splendor
* Hero Honda Splendor NXG
* Hero Honda CBZ X-Treme
Company : Kinetic Motor Company Company : TVS Motor Company :
Yamaha Motor India
• * Kinetic Aquila
* Kinetic Boss
* Kinetic Challenger
* Kinetic Comet
* Kinetic GF
• * TVS Apache
* TVS Centra
* TVS Fiero
* TVS Star
* TVS Victor * Yamaha CruxS
* Yamaha G5
* Yamaha Gladiator
Bajaj Auto Ltd. BAJAUL
Atul Auto Ltd. ATUAUT
Hero Honda Motors Ltd. HEROHO
Kinetic Engineering Ltd. KINENG
Kinetic Motor Company Ltd. KINMOT
LML Ltd. LMLLTD
Maharashtra Scooters Ltd. MAHSCO
Majestic Auto Ltd. MAJAUT
Scooters India Ltd. SCOOIN
Sunku Auto Ltd. SUNKAU
TVS Motor Company Ltd. TVSM
VCCL Ltd. VCCLTD
Last Price Market Cap.
Net Profit Total Assets
Bajaj Auto 1,613.25 46,682.13 11,920.98 1,700.11 4,266.92
Hero Honda 1,936.55 38,670.48 15,860.51 2,231.83 3,531.05
TVS Motor 81.80 3,886.21 4,430.13 88.02 1,868.67
Mah Scooters 405.25 463.14 4.42 8.41 200.56
LML 11.90 97.56 235.92 -40.01 -75.57
Kinetic Motor 30.95 73.49 15.70 97.61 29.99
S.W.O.T. analysis of(bajaj pulsar
• Pulsar 200cc features India’s First Oil Cooled Engine which delivers maximum power
making it most powerful engine offered by Bajaj.
• New Pulsar also provides Digital Speedometer, Self Canceling Indicators which is for
the First time in this segment in India.
• Fuel efficiency: Pulsar 200cc delivers an impressive mileage of 38.2 kmpl in city as
compared to Karizma which delivers 30 kmpl in city.
• Customer Base: In past decade Bajaj has established a strong base amongst its
• Style and Design: PULSAR 200cc and 220cc derives their styling from there previous
version Pulsar 150 Dts-i and 180 Dts-i.
• Pricing; Bajaj 220cc (Rs 82449 basic price) is costlier than karizma (Rs 78000 basic
• If they derive new styling, shape, design for pulsar 200cc and 220cc then they can
attract more customers.
• Taking into consideration the reviews of the customers regarding the “fairing” of 220cc
and making the needful changes will be an opportunity to capture an even larger share
of the 200cc+ segment.
• The biggest threat is faced from the goodwill of Karizma in this segment who is the
“Four-Stroke Two Wheeler Ruler” of the Indian bike market.
• Certain technical faults in the bike design which are potentially dangerous to the rider’s
safety can be disastrous to the image of the bike.
Objective of Study
The objective of this research is to determine the customer as well as retailers
preferences regarding different brands of motorcycles which result in their market share.
It involves the study of consumers’ buying behavior and attitudes towards a variety of
attributes and factors, which help them in decision-making.
The brand I have chosen to focus on BAJAJ AUTO Ltd.’s PULSAR brand of bikes. I
studied the company profile, its market structure, the brand awareness, growth rates and
popularity among consumers so as to forecast the future sales and understand the
I have designed a questionnaire to survey various dealers and consumers to understand
the demand and supply situation of the bike market. Secondary data from the internet is
used for effective analysis.
Importance of Study
The importance of this study is to practically understand the relevance of the concepts of
managerial economics in the business organizations and here in the realm of the
The present market scenario is analyzed and future demands forecasted using the
simple regression techniques. Also, a comprehensive study of the major factor is
involved in this market will conduct so as to see how different and similar a market
structure is from the theories.
Research has been designed on the basis of both primary data and secondary data.
I. Sources Of Information
Primary data collection:
For primary data collection I designed a questionnaire to survey various dealers and
consumers. The objective of survey is to understand the consumer preferences among
various brands of motorcycles available in the market and the factors affecting consumer
Sample size for the survey will be around 150
Secondary data collection:
Internet is the major source for secondary data. Apart from understanding the bike
industry in general and Bajaj in specific, my major task is to analyze the consumer
demand for Baja’s Pulsar’s brand and project the future sales for the company.
II. Sampling Methodology
Sampling is the process of selecting a small number of elements from a larger defined
target group of elements such that the information gathered from the small group will
allow judgments to be made about the larger groups. Sampling is that part of statistical
practice concerned with the selection of individual observations intended to yield some
knowledge about a population of concern, especially for the purposes of statistical
inference. Each observation measures one or more properties.
A sample design is a definite plan for obtaining a sample from a sample frame it refers
to the technique or the procedure that the researcher would adapt in selecting some
sampling units from which inferences about the population is drawn. Basically it was
convenience sampling suiting to use.
Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot
study was done in order to know the accuracy of the Questionnaire. The final
Questionnaire was arrived only after certain important changes were done. Thus my
sampling came out to be judgmental and convenient.
• Convenience Sampling
The sampling used in the study is convenience sampling. This method is also known as
‘chunk’, which refers to the fraction of the population being investigated. This selection is
neither based on random nor on convenience. The convenience may be about place,
time and availability of resource.
A sample is a part of whole to show what the rest is like. Sampling helps to determine
the corresponding value of the population.
The respondents who were asked to fill out questionnaires are the sampling units. These
comprise of knowledgeable persons, computer programmers, computer teachers and
users at various schools and institutes.
Sampling Area: The area of the research was Dehradun Uttarakhand.
Time Period: Research was done in the months of October and November, 2010.
The marketing researchers have four choices to contact the respondents: Mail,
Telephone, and Personal and Online interview. I have chosen the personal interview
since personal interviewing is the most versatile method.
Pie chart has been used for the analysis of data.
Market share and Growth rates
Two- wheeler sales in the country have sky rocketed in the recent years, and the annual
sales of motorcycles in India expected to cross the 10million mark by 2010. The low
penetration of two-wheelers in the country 31 two-wheelers per 1000 citizens (2004)
leaves immense scope for the growth of the market. Overall the industry sales of two-
wheelers have grown by 15% from 6.57 million in 2004/2005 to 7.57 million in
2005/2006. The buoyant Indian economy with a growth rate of around 8% per annum is
further expected to fuel the growth of two wheelers in the country.
The share of motorcycles have increased over the years, while that of other two-
wheelers like geared scooters, cooperates and mopeds have shown a negative
growth or remained stagnant. The two-wheelers have penetrated 7% of rural house hold
and 24% of urban markets, thus it leaves an immense scope for the market to grow.
Bajaj Auto one of the leading producers of automobiles in the country has been
able to sell close to 2.3 million vehicles in 2005/2006, the sales of the company
grew by almost 31%. The company registered a 32% growth in the sales of
motorcycles much above the industry average of 19%. Bajaj Auto has emerged as a
market leader in the entry level or price segment motorcycle with the Bajaj CT 100
accounting for nearly 40% of the market share. It also commands a 62%
market share in the premium segment of motorcycles with products like the Bajaj
Pulsar DTSI. TVS Motors which has lots of firsts to its credit in the two-wheeler
sector in the country was able to sell 1.34 million units during the same period thus
registering an overall growth of 15% from the previous year. In the motorcycle segment
the company's growth in sales was in sync with the industry average.
. f this figures have daunted you the best is yet to come, the country leader in two-
wheelers hero Honda have crossed the three million mark during the year 2005/2006
which is a good few lakhs more than its nearest competitor Bajaj Auto. The company
accounted for nearly 40% of then two-wheeler market. In the motorcycle segment the
company has been able to attain a market share of about 50%. The segment in which
hero Honda has emerged as a clear winner is the Deluxe segment, which is the largest
segment in the motorcycles category, with its flagship family of motorcycles splendor
selling over 1.2 million units which is just a shade less than all the two wheelers sold by
TVS during the same year.
The motorcycle category is expected to see a further growth and according to industry
experts it will drive all other category of two- wheelers to the periphery.
The table below shows the over all trend of Industry Sales over a 5 year period. The
figures are provided by the Society of automobile Manufactures Association (SIAM).
Two-wheeler domestic sales trend
2001-02 2002-03 2003-04 2004-05 2005-06
2887194 3647493 4170445 4964753 5815417
Year ended 31
Market (nos.) Market growth BAL (nos.) Balk’s growth
2005 5,217,996 20.9% 1,449,710 41.6% 27.8%
2004 4,316,777 14.9% 1.023,551 17.9% 23.7%
2003 3,757,125 31.3% 868,138 32.3% 23.1%
2002 2,861,375 40.7% 656,018 55.4% 22.9%
2001 2.033,196 - 422,016 - 20.8%
This industry is a high volume, medium growth sector characterized by excess/ idle
capacities owing to in efficient operations. Imports have not been influencing prospects,
as high government regulations limit this .Characteristics
• Bikes: primarily a commodity market - price sensitive
• Effective distribution chain - through a simple network of dealers
• Regulation - Emission norms as well as import regulations are in
• Market - Urban areas are the largest market for Pulsar, followed by small
Towns and then rural centers.
The market of motorcycles shows a monopolistic structure due to the
• Different and many players in the market
• Differentiated products.
• Prices charged are different.
• The competition is a non price competition i.e. on the basis of
Advertising and delivering differentiated products.
Primary data analysis
1. AGE GROUP CLASSIFICATION OF CUSTOMER PREFFERING
18-24 24-30 30-36 Above 36
No of people 35 47 41 27
percentage 23% 32% 27% 18%
18-24, 35, 23%
24-30, 47, 32%
30-36, 41, 27%
above 36, 27,
As is clear the maximum buyers are of the age group 24-30 i.e 32%, hence it
Can be interpreted as being popular in college going youth.
2. BIKES OWNED (CATEGORIZATION)-
Bullet (old) hunk enticer
Pulsar DTS i Hero Honda
Q3.ANNUAL HOUSEHOLD INCOME
a. <I LAKH
<1 lakh 1-3 lakh 3-5 lakh 5-10 lakh >10 lakh
5 30 51 31 17
%age 3% 20% 35% 31% 11%
<1 lakh, 5, 3%
1-3 lakh, 30, 20%
3-5 lakh, 51, 35%
5-10 lakh, 47,
>10 lakh, 17, 11% <1 lakh
Which shows that a majority group belonging to the pulsar kind of bikes
Is more from the income group category 3-5 & 5-10 lakh groups.
Moreover very less of the customer was from < 1 lakh category which is also an
Important finding from the marketing point of view.
Q4.PURPOSE OF YOUR BIKE
office traveling household adventure
No of people 55 27 15 53
%age 37% 18% 10% 35%
OFFICE, 55, 37%
Which shows that a majority group buy the pulsar kind of bikes
Is more for the office purpose i.e 37%.
Moreover very less of the customer buy the pulsar bike for the household purpose
Q5. BUYING DECISION
mileage looks brand service price
38 41 31 28 12
%age 25% 27% 21% 19% 8%
LOOKS, 41, 27%BRAND, 31, 21%
PRICE, 12, 8%
People consider ‘looks’ as the most important parameter for the selection of bike. Other
than that parameters like ‘mileage’ and ‘brand’ also hold importance for the selection
of a bike. It can be inferred from the data that these three parameters need to be given
some more importance from the company’s side in order to attain or retain the
friends family dealer
No of people 70 49 31
%age 46% 33% 21%
FAMILY, 49, 33%
From the above data it can be interpreted as most of the consumers are influenced by
the friends to evaluate and to take purchase decision for the bike.
Q7.MEDIA IS NOTICED FOR AN ADVERTISEMENT
television hoarding printmedia internet
No of people 55 41 30 24
%age 37% 27% 20% 16%
From the data we can infer that television is most likely to noticed by many people for the
advertisement. This can be taken as a good opportunity for the company to increase the
frequency of advertisement through television
Q8.BRAND WHICH IS EASY TO RECALL
bajaj Hero honda yamaha honda
No of people 55 41 30 24
%age 37% 27% 20% 16%
EASY TO RECALL
BAJAJ, 55, 37%
HONDA, 24, 16% BAJAJ
From the above data it is interpreted as more people are very comfortable to recall the
bajaj.It is easily recalled.
Q9.PERCEPTION PARAMETER ABOUT PULSAR
Style power performance value brand
35 25 39 10 41
%age 23% 17% 26% 7% 27%
STYLE, 35, 23%
POWER, 25, 17%
BRAND, 41, 27%
VALUE, 10, 7% STYLE
From the above chart it can be interpreted that bajaj is the leading brand in bike market
with a very good image among its consumers. Most of the consumers evaluate that
quality of the bajaj product on the basis of their brand and their performance. It can also
improve its power & position by updating customers regularly about BAJAJ.
Questionnaire for Bike Customers
Name of the participant… project owner: - Rashmi kumari
Age… Script owner: - ICFAI university,
Q1.AGE GROUP CLASSIFICATION OF CUSTOMER PREFFERING
Q2.WHICH BIKE DO YOU OWN PRESENTLY?
Q3.ANUAL HOUSEHOLD INCOME
Q4.WHAT IS THE PURPOSE OF YOUR BIKE?
a) OFFICE b) TRAVELLING c) HOUSEHOLD d) ADVENTURE
Q5.RATE THE KEY FACTORS WHICH AFFECTED YOUR BUYING DECISION?
a) MILEAGE b) LOOKS c) BRAND d) SERVICE e) PRICE
Q6.WHICH OF THE FOLLOWING INFLUENCES YOUR PURCHASE DECISION?
a) FRIENDS b) FAMILY c) DEALER
Q7.WHICH OF THE FOLLOWING MEDIA ARE YOU MOST LIKELY TO NOTICE
a) TELEVISION b) HOARDING c) PRINT MEDIA d) INTERNET
Q8.WHICH BRAND NAME DO YOU FIND EASY TO RECALL?
a) BAJAJ b) HERO HONDA c) YAMAHA d) HONDA
Q9.RATE YOUR PERCEPTION ABOUT PULSAR ON THE FOLLOWING
a) STYLE b) POWER c) PERFORMANCE d) VALUE
Brand positioning is the first challenge of any marketing strategy. BAJAJ enjoys a good
position in the market. It can tap its huge potential by reaching to the customers
especially in the case of this study.
Many strategic possibilities wait for the company to expand its sales volume and
invariably making a scalable revenue proportion. To date, company’s marketing effort is
warped. Analysis reveals the strengths and challenges of the company with prominent
focus on immediate address to continual follow up of the prospective customers.
In my research period, I found that BAJAJ enjoys a great Brand Positioning among
customers. Most of them know BAJAJ for its good quality product like for its
performance, looks, mileage, for the adventure purpose also etc.
More and more advertisement should be shown through television to create awareness
among the customer because they are more interested in watching television and they
are also more infuenced by it.
To make BAJAJ first voice of the customers company can attract the new consumers by
providing them some good promotional schemes.
However we can’t forget the existing customers who prefer other competitor’s product
than BAJAJ. We should also make a good relation with them. We can also attract them
and persuade to buy BAJAJ product more & more by giving them any of good
promotional schemes like free after sale service, by giving free accessories (some part)
to the customer. Conclusively, I deem it fit to accelerate the marketing driven growth.
5 .www.ilovei nd i a .com/ b i ke s /index.html
6 .www.infibeam.com/bi k e s /make/herohonda.html
8 .www.b i ke s alesi nd i a .com
15 .www.autoindiaforum.com/ba j a j -to-launch-6-new-b i ke s -in-