This document summarizes a study on the sale of two-wheelers in rural Maharashtra, India. It finds that motorcycles have greater demand than scooters due to better fuel efficiency, durability, and ability to handle rural roads. Bajaj and Honda are the most popular brands. The study surveyed 500 rural consumers across Maharashtra to understand factors influencing two-wheeler purchases. It found that quality, design/power, and fuel economy are the most important factors considered. Most purchases are made at company showrooms or retailers. Two-wheeler sales in India have grown significantly in recent years and are expected to surpass 20 million annual sales by 2015.
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1. International Indexed & Refereed Research Journal, January, 2013 ISSN 0975-3486, RNI- RAJBIL- 2009-30097, VOL- IV * ISSUE- 40
Research Paper
A Study of Sale of Two Wheelers in the Indian Rural
Market With Reference To Maharashtra State
January,2013 * Surendra Patole
* Asst. Prof, School of Comm. & Mangt., Yashwantrao Chavan Maharashtra Open University, Nashik
India is a vast country with ever growing and never range of Rs. 1000000 to 10 lac.Whereas sale of Indian
ending population comprising of 72% residing in rural segment Bajaj stands first followed by TVS Star City.
areas. Totally depending upon agricultural income and Bajaj stands as the leader in economy segment. Honda
agricultural related activities for their livelihood and stands of executive segment. The new entrants happen
many of them are illiterate and people below poverty Mahindra Duro.
line. Though the lifestyle of rural masses have under- A key element in marketing strategy is brand
gone a sea of changes with the increased infrastructure name. It is extremely difficult to establish a successful
facilities, application of modern techniques in cultiva- brand name but once a brand name is established it is
tion and better access to urban areas. However in re- an invaluable asset. Marketing activities exert an enor-
cent times the situation has changed drastically with mous impact on individuals. A sound understanding of
Multi National Companies competing keenly for a share consumer behaviour is essential as well as after sales
in rural market. services plays a very important role in creating a long
Rural Marketing can be defined as the activi- run customer relationship management. Marketers try
ties taking place in rural market to influence the rural to satisfy consumer needs but the reason why any
consumers to buy specific products or services for product is purchased can vary widely. The identifica-
satisfying their needs and wants buy conveying mes- tion of consumer needs and expectations is an impor-
sages through print, electronic and mass media. There tant step towards ensuring that customer wants are
are several peculiar characteristics that can be observed satisfied.
in the rural markets and in rural consumer. With the The following are the factors that affect the sale of two
advent of modern technology media coverage has been wheelers:
far and wide. Due to increased audio and visual media • Increase in credit and financing for two wheelers.
coverage en-mass has led to a potential demand for • Increase in income
various products in rural region. The surface transpor- • Constant petrol prizes
tation is one area where vast improvement can be no-
ticed with improved road transportation and other mean. • Delay in improving public transport system.
Small and big means of transport have allowed the rural Recent Performance of Two-Wheeler in India
consumers to shop goods and services beyond his Two wheeler sales in country have sky rock-
village boundaries. An important aspect of this aspect eted in the recent years and the annual sales of two
of this development is slowly realizing the numbers of wheelers in the country is expected to cross 20 million
product, brand and services available in this market, a marks by 2015. Overall the industry sale has grown by
scope which was unnoticed earlier. 15% to 18% in the last two years i.e. 2010 & 2011. The
The Two-Wheeler market in India is the big- share of motor cycle has increased over the year cue to
gest contributor to the automobile industry with a size petrol efficiency. The two wheelers have penetrated
of nearly Rs.2, 00,000 million. The two wheeler market around 10% of rural household and 28% of urban
in India comprises of three types of vehicles namely markets. The huge population in the country with an
motorcycles, scooters, and mopeds. Foreign collabo- impressive percentage of it coming under the con-
rations have been playing a major role in the growth of sumer class category presents a vast market with the
the Indian two wheeler market and most of them are immense potential for the manufacturer. The usage
Japanese firms viz Honda, Yamaha, Suzuki, Kawasaki pattern in India with regard to two wheeler is indeed
especially in motorcycle and well known scooter brand changing and the consumers are changing over to
Honda Activa. Motorcycle has much more demand branded two wheelers as compared to their unbranded
than scooter because of petrol efficiency, sturdyness, counterparts. A brand identifies the product and re-
looks and resistance on bad-roads. Even luxury seg- veals the facts of differences. A study of consumer
ment are also entering rural market. Haya buser, Hurly behaviour can even helps in understanding the atti-
Davidson and Rx-F2 Yamaha etc costing nearly in the tudes, attributes, beliefs, values norms of the con-
RESEARCH ANALYSIS AND EVALUATION 71
2. International Indexed & Refereed Research Journal, January, 2013 ISSN 0975-3486, RNI- RAJBIL- 2009-30097, VOL- IV * ISSUE- 40
Table No.1: Preferred Brand of Two Wheelers
Sr.No. Brand Name No. of Buyers Percentage
01 Honda Activa 125 25
02 Bajaj Pulsar 50 10
03 Bajaj Platina 60 12
04 TVS Star City 32 6.4
05 Honda Umeorn 18 3.6
06 Royal Enfield 22 4.4
07 Yamaha RTZ 16 3.2
08 Suzuki Samurai 12 2.4
09 Luna 10 2
10 Kinetic 04 0.8
11 LML Vespa 05 1
12 YOYO Electric 02 0.4
13 Mahindra Duro 24 4.8
14 TVS Champ 48 9.6
15 Do Not Know 72 14.4
Total 500 100%
Table 2 Factors that influence the purchase of a particular brand of two wheelers
Sr.No. Factors No. of Buyers Percentage
01 Quality of Product 133 26.60
02 Brand Image 55 11
03 Features of Product 60 12
04 Resale Values 12 2.4
05 Low Price 6 1.2
06 Credit Facility 7 1.4
07 Retailers Advice 00 00
08 After Sales Services 6 1.2
09 Radio Advertisement 01 0.2
10 Television Advertisement 03 0.6
11 Company Advertisement 04 0.8
12 Advice from friends 36 7.2
13 Petrol Economy 63 12.6
14 Company Sale Purchase 12 2.4
15 Design/Power 102 20.4
Total 500 100%
Table No.3 reveals place of purchase
Table No.3 Place of Purchase
Sr. Place of No. of Percentage
No. Purchase Buyers
01 Company Showroom 280 56
02 Retailers 200 40
03 Gifted/Do Not Know 20 4
Total 500 100%
sumer and its analyses the way the consumer con- siderably over the years resulting in an increase in
sciously or unconsciously follows any of these con- consumer awareness and aspiration.
sumer. Their purchases are strongly influenced by The study was conducted in rural areas of
cultural, social, personal and psychological factors. Maharashtra State i.e. around Nashik, Jalgaon, Dhulia,
The markets are customer driven these days. To under- Thane, Wada, Murbad, Girnare, Javar,Akole, Sinner of
stand the customer is no easy job as his behaviour is comprising with a sample size of 500 consumers and
mostly unique and unpredictable. Moreover the latest their opinions were obtained through questionnaire
demand for products and services has increased con- method. A questionnaire was prepared for collecting
72 RESEARCH ANALYSIS AND EVALUATION
3. International Indexed & Refereed Research Journal, January, 2013 ISSN 0975-3486, RNI- RAJBIL- 2009-30097, VOL- IV * ISSUE- 40
data regarding the preferred brand and motivational Methodology
factors which influence the consumers towards the The study was largely based on primary data
purchase of a particular two wheeler brand in the con- collected from rural market as well as secondary data
sumer market. The data were collected during period based on information provided by Society of Automo-
2010 to 2011. bile Manufacturers Association. See table 1
Objectives of the Study Conclusion:
1. To study the marketing practices followed in rural Covering the purchasing of two wheelers most
market. of the rural consumers who are owners have listed
2. To study the buyers behaviour of rural consumer quality of the product as the prime factor while consid-
regarding two wheeler. ering the various brands of two wheelers, features of
3. To identify the place of purchase and measure the the product, advice of friends and relatives and brand
satisfaction levels of rural buyers. image/company reputation follow quality factor regard-
Scope of the Study ing the two wheelers. It is evident from the study that
The study is confined to the rural markets and even rural consumers have expressed their deep desire
some of the prominent villages of western Maharashtra. to own quality products. This indicates that customers
The complexity of the urban and rural markets makes it are quality conscious and are interested in making
difficult for marketers in India to adopt common strat- purchase that give them better satisfaction in the end.
egy. There are many variables over shadowing the
marketer's attempts to understand the markets.
R E F E R E N C E
1. Fundamentals of Marketing - William Stanton
2. Marketing Management - Philip Kotler
3. ICFA Journal on Marketing
4. Automobile India
5. Trade Guide to Business
6. Economic Times
7. SIAM(Society of Indian Automobile Manufacturers)
8. Fast Track Magazine
9. www.fadaweb.com
RESEARCH ANALYSIS AND EVALUATION 73