PROJECT REPORT

ON
MARKET RESEARCH
COMPARATIVE STUDY
OF
BAJAJ V/S HERO HONDA

SUBMITED TO SUBMITED BY
Prof.JOYDEB BANERJEE VIKASH KUMAR
Roll No.720692025
BBA 6th Semester

1
Vs.

2
 ACKNOWLEDGEMENT

The research on “Comparative Study between Bajaj and Hero

Honda” has been given to me as part of the curriculum in 3-year’s Bachelor
Degree in Business Administration.
I have tried my best to present this information as clearly as possible
using basic terms that I hope will be comprehended by the widest spectrum
of researchers, analysts and students for further studies.
I have completed this study under the able guidance and supervision
of Prof. JOYDEB BANERJEE; I will be failed in my duty if I do not
acknowledge the esteemed scholarly guidance, assistance and knowledge. I
have received from them towards fruitful and timely completion of this
work.
Mere acknowledgement may not redeem the debt I owe to my parents for
their direct/indirect support during the entire course of this project.
I also thankful to my friend who helped me a lot in the completion of
this project.

VIKASH KUMAR

3
 INDEX
Sr No. Particulars Page no

1. OBJECTIVES 6

2. HISTORY OF BAJAJ 7
- Profile
- Bajaj Intro
- Company History
- Timeline of new releases

3. HISTORY OF HERO HONDA 14

- Company Profile

4. RESEARCH METHODOLOGY 23
- Data Source
- Research Approach
- Sampling unit
- Data Completion and Analysis
- Scope

5. LIMITATION OF RESEARCH STUDY 25

6. ANALYSIS AND INTERPRETATION 27

7. CONCLUSION 39

8. RECOMMENDATION 41

9. BIBLIOGRAPHY 43

10. ANNEXURE 45

4
OBJECTIVES:-

1. To know the market share of Bajaj

& Hero Honda

2. To know the perception of

customers regarding bikes.

3. To determine the customers

satisfaction regarding bikes

4. To determine the factors

influencing the choice of customers
regarding bikes.

5
6
7
Bajaj Auto limited is one of the largest two wheeler manufacturing
company in India apart from producing two wheelers they also
manufacture three wheelers. The company had started way back in 1945.
Initially it used to import the two wheelers from outside, but from 1959 it
started manufacturing of two wheelers in the country. By the year 1970
Bajaj Auto had rolled out their 100,000th vehicle. Bajaj scooters and motor
cycles have become an integral part of the Indian milieu and over the years
have come to represent the aspirations of modern India. Bajaj Auto also
has a technical tie up with Kawasaki heavy industries of Japan to produce
the latest motorcycles in India which are of world class quality The Bajaj
Kawasaki eliminator has emerged straight out of the drawing board of
Kawasaki heavy industries. The core brand values of Bajaj Auto limited
includes Learning, Innovation, Perfection, Speed and Transparency.

Bajaj Auto has three manufacturing units in the country at Akurdi, Waluj
and Chakan in Maharashtra, western India, which produced 2,314,787
vehicles in 2005-06. The sales are backed by a network of after sales
service and maintenance work shops all over the country.

Bajaj Auto has products which cater to every segment of the Indian two
wheeler market Bajaj CT 100 Dlx offers a great value for money at the entry
level. Similarly Bajaj Discover 125 offers the consumer a great performance
without making a big hole in the pocket.

PROFILE:
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

8
Registered & Head Office Akurdi
Pune - 411035
India
Tel.: +(91)-(20)-27472851
Fax: +(91)-(20)-27473398
Works • Akurdi, Pune 411035
• Bajaj Nagar, Waluj Aurangabad 431136

• Chakan Industrial Area, Chakan, Pune

411501
E-mail rahulbajaj@bajajauto.co.in
Website www.bajajauto.com

Bajaj Autos Ltd.

Bajaj Auto Limited

Type Public
Founded 1945

9
Headquarte
Pune, India
rs
Key people Rahul Bajaj (Chairman)
Rs. 1,01,063 billion
Revenue
(2006) or USD 1.87 billion
Net income Rs. 17,016 billion
Employees ???
Website www.bajajauto.com

Bajaj Auto is a major Indian automobile manufacturer. It

is India's largest and the world's 4th largest two- and
three-wheeler maker. It is based in Pune, Maharashtra,
with plants in Waluj near Aurangabad, Akurdi and
Chakan, near Pune. Bajaj Auto makes motorscooters,
motorcycles and the auto rickshaw.

Contents
• 1 Company's history
o 1.1 Timeline of new releases
• 2 Scooters
• 3 Motorcycles
• 4 Upcoming Models
• 5 New Image
• 6 Forbes Global 2000 Ranking - 2005
• 7 External links

• 8 References

Company's history

10
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
Aurangabad. In 1986, it managed to produce and sell
500,000 vehicles in a single financial year. In 1995, it
rolled out its ten millionth vehicle and produced and
sold 1 million vehicles in a year.

Timeline of new releases

• 1971 - three-wheeler goods carrier

• 1972 - Bajaj Chetak
• 1976 - Bajaj Super
• 1977 - Rear engine Autorickshaw
• 1981 - Bajaj M-50
• 1986 - Bajaj M-80, Kawasaki Bajaj KB100
• 1990 - Bajaj Sunny
• 1994 - Bajaj Classic
• 1995 - Bajaj Super Excel
• 1997 - Kawasaki Bajaj Boxer, Rear Engine Diesel Autorickshaw
• 1998 - Kawasaki Bajaj Caliber, Legend(India's first four-stroke scooter)
• 2000 - Bajaj Saffire
• 2001 - Eliminator, Pulsar
• 2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar
• 2004 - Bajaj CT 100, New Bajaj Chetak 4-stroke with Wonder Gear, Bajaj
Discover DTS-i
• 2005 - Bajaj Wave, Bajaj Avenger, Bajaj Discover
• 2006 - Bajaj Platina
• 2007 - Bajaj Pulsar-200

Some of the models that Bajaj makes (or has made) are:

Scooters
o Bajaj Sunny

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 o Bajaj Chetak
o Bajaj Cub
o Bajaj Super
o Bajaj Wave
o Bajaj Legend

Motorcycles
o Kawasaki Eliminator
o Bajaj Pulsar
o Bajaj Kawasaki Wind 125
o Bajaj Boxer
o Bajaj CT 100
o Bajaj Platina
o Bajaj Caliber
o Bajaj Discover
o Bajaj Avenger
o Bajaj pulsar 220 DTS-Fi

Upcoming Models
• Bajaj Krystal
• Bajaj Blade
• Bajaj Sonic

New Image
The company, over the last decade has successfully
changed its image from a scooter manufacturer to a two
wheeler manufacturer, product range ranging from
Scooterettes to Scooters to Motorcycle. Its real growth
in numbers has come in the last 4 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 .

12
13
 India has the largest number of two
wheelers in the world with 41.6 million vehicles.
India has a mix of 30 percent automobiles and
70 percent two wheelers in the country. India
was the second largest two wheeler
manufacturer in the world starting in the 1950’s
with the birth of Automobile Products of India
(API) that manufactured scooters. API
manufactured the Lambrettas but, another
company, Bajaj Auto Ltd. surpassed API and
remained through the turn of the century from
its association with Piaggio of Italy
(manufacturer of Vespa).

The license raj that existed between the1940s

to1980s in India, did not allow foreign
companies to enter the market and imports were
tightly controlled. This regulatory maze, before
the economic liberalization, made business
easier for local players to have a seller’s
market. Customers in India were forced to wait
12 years to buy a scooter from Bajaj. The CEO of
Bajaj commented that he did not need a
marketing department, only a dispatch
department. By the year 1990, Bajaj had a
waiting list that was twenty-six times its annual
output for scooters.

14
The motorcycle segment had the same long wait
times with three manufacturers; Royal Enfield,
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 little competition for their
customers. Ideal Jawa and Escorts took the
middle and lower end of the market
respectively.

In the mid-1980s, the Indian government

regulations changed and permitted 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, Bajaj Kawasaki and
Kinetic Honda. The entry of these foreign
companies changed the Indian market dynamics
from the supply side to the demand side. With a
larger selection of two-wheelers on the Indian
market, consumers started to gain influence
over the products they bought and raised higher
customer expectations. The industry produced
more models, styling options, prices, and
different fuel efficiencies. The foreign
companies new technologies helped make the
products more reliable and with better quality.
Indian companies had to change to keep up with
their global counterparts.

15
Hero Honda Motorcycle Ltd.

Type Public company BSE:HEROHONDA M

January 19, 1984 in Gurgaon, Haryana,
Founded
India
Headquarte
Haryana, India
rs
Om Prakash Munjal, Founder

Mr. Brijmohan Lall Munjal, Chairman

Key people Mr. Toshiaki Nakagawa, Joint
Managing Director

Mr. Pawan Munjal, Managing Director

Industry Automotive
Products Motorcycles, Scooters
Revenue U$ 2.8 billion
http://www.herohonda.com/site/home/ho
Website
me.asp

16
HERO HONDA HEADQUARTERS

Hero Honda Motorcycles Limited is an Indian

manufacturer of motorcycles and scooters. Hero Honda
is a joint venture that began in 1984 between the Hero
group of India and Honda from Japan. It has been the
world's biggest manufacturer of 2-wheeled motorized
vehicles since 2001, when it produced 1.3 million
motorbikes in a single year. Hero Honda's Splendor is
the world's largest selling motorcycle [citation needed] . Its 2
plants are in Dharuhera and Gurgaon, both in Haryana,
India. It specializes in dual use motorcycles that are low
powered but very fuel efficient.

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 Diversification
• 3 External links

17
[ Models ]
Bikes

• Hero Honda Splendor Plus

• Hero Honda Passion Plus
• Hero Honda Karizma
• Hero Honda CBZ
• Hero Honda Super Splendor
• Hero Honda CD Dawn
• Hero Honda CD Deluxe
• Hero Honda Achiever
• Hero Honda Glamour
• Hero Honda Ambition

Hero Honda "Splendor" Model

[ Company Profile ]
“Hero”, is the brand name used by the Munjal brothers in
the year 1956 with the flagship company Hero Cycles.
The two-wheeler manufacturing business of bicycle
components had originally 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 like product design. The Hero
Group philosophy is: “To provide excellent

18
transportation to the common man at easily affordable
prices and to provide total satisfaction in all its spheres
of activity”. 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 Hero Honda Motors (HHM),
headed an alliance between the Munjal family and Honda
Motor Company Ltd. (HMC). HHM Mission Statement is:
“We, at Hero Honda, are continuously striving for
synergy between technology, systems, and human
resources to provide products and services that meet
the quality, performance, and price aspirations of our
customers. While doing so, we maintain the highest
standards of ethics and societal responsibilities,
constantly innovate products and processes, and
develop teams that keep the momentum going to take
the company to excellence in the new millennium”. This
alliance became one of the most successful joint
ventures in India, until the year 1999 when HMC had
announced a 100% subsidiary, Honda Motorcycle &
Scooter India (HMSI). This announcement caused the
HHM stock price to decrease by 30 percent that same
day. Munjal had to come up with some new strategic
decisions as, HMSI and other foreign new entry
companies were causing increased intensity of rivalry
for HHM.

== Growth == The business growth of Hero Honda has

been phenomenal throughout its early days. The Munjal
family started a modest business of bicycle components.
Hero Group expanded so big that by 2002 they had sold
86 million bicycles producing 16000 bicycles a day.
Today Hero Honda has an assembly line of 9 different

19
models of motorcycles available. It holds the record for
most popular bike in the world by sales for Its Splendor
model. Hero Honda Motors Limited was established in
joint venture with Honda Motors of Japan in 1984, to
manufacture motorcycles. It is currently the largest
producer of Two Wheelers in the world. It sold 3 million
bikes in the year 2005-2006. Recently it has also
entered in scooter manufacturing, with its model
PLEASURE mainly aimed at girls. The Hero Group has
done business differently right from the start and that is
what has helped them to achieve break-through in the
competitive two-wheeler market. The Group's low key,
but focused, style of management has earned the
company plaudits 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 line worker operates two
machines simultaneously to save time and improve
productivity. The fact that most of the machines are
either developed or fabricated in-house, has resulted in
low inventory levels. In Hero Cycles Limited, the just-in-
time inventory principle has been working since the
beginning of production in the unit and is functional
even till date.. This is the Japanese style of production
and in India; Hero is probably the only company to have
mastered the art of the just-in-time inventory principle.

[ Ancillarisation ]

20
An integral part of the Group strategy of doing business
differently was providing support to ancillary units.
There are over 300 ancillary units today, whose
production is dedicated to Hero's requirements and also
a large number of other vendors, which include some of
the better known companies 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 employment within Hero. The philosophy with
regard to labor management is "Hero is growing, grow
with Hero." 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 its employees a uniform allowance, as
well as House Rent Allowance (HRA) and Leave Travel
Allowance (LTA). Extra benefits took the form of medical
check-ups, not just for workers, but also for the
immediate family members .

[ Dealer Network ]

The relationship of Hero Group with their dealers is

unique in its closeness. The dealers are considered a
part of the Hero family. A nation-wide dealer network
comprising of over 5,000 outlets, and have a formidable
distribution system in place. Sales agents from Hero
travels to all the corners of the country, visiting dealers
and send back daily postcards with information on the
stock position that day, turnover, fresh purchases,
anticipated demand and also competitor action in the
region. The manufacturing units have a separate
department to handle dealer complaints and problems
and the first response is always given in 24 hours.

[ Financial Planning ]

21
The Hero Group benefits from the Group Chairman's
financial acumen and his grasp on technology,
manufacturing and marketing. Group Company, Hero
Cycles Limited has one of the highest labor productivity
rates in the world. In Hero Honda Motors Limited, the
focus is on financial and raw material management and
a low employee turnover.

[ Quality ]

Quality at Hero is attained not just by modern plants and

equipment and through latest technology, but by
enforcing a strict discipline. At the Group factories,
attaining quality standards is an everyday practice - a
strictly pursued discipline. It comes from an
amalgamation of the latest technology with deep-rooted
experience derived from nearly four decades of hard
labor. It is an attitude that masters the challenge of
growth and change - change in consumers' perceptions
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 and maintains its
competitive edge. With each of its foreign
collaborations, the Group goes onto strengthen its
quality measures as per the book. The Group also
employs the services of independent 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 at diversification.
A considerable level of backward integration in its
manufacturing activities has been ample in the Group's
growth and led to the establishment of the Hero Cycles

22
Cold Rolling Division, Munjal and Sunbeam Castings,
Munjal Auto Components and Munjal Showa Limited
amongst other component-manufacturing units.

Then there were the expansion into the automotive

segment with the setting up of Majestic Auto Limited,
where the first indigenously designed moped, Hero
Majestic, went into commercial production in 1978. Then
came Hero Motors which introduced Hero Puch, in
collaboration with global technology leader Steyr
Daimler Puch of Austria. Hero Honda Motors was
established in 1984 to manufacture 100 cc motorcycles.

The Hero Group also took a venture into other segments

like exports, financial services, information technology,
which includes customer response services and
software development. Further expansion is expected in
the areas of Insurance and Telecommunication.

The Hero Group's phenomenal growth is the result of

constant innovations, a close watch on costs and the
dynamic leadership of the Group Chairman,
characterized by a culture of entrepreneurship, of right
attitudes and building stronger relationships with
investors, partners, vendors and dealers and customers

23
24
RESEARCH METHODOLOGY

25
 It is well known fact that the most important step
in marketing research process is to define the problem.
Choose for investigation because a problem well defined
is half solved. That was the reason that at most care
was taken while defining various parameters of the
problem. After giving through brain storming session,
objectives were selected and the set on the base of
these objectives. A questionnaire was designed major
emphasis of which was gathering new ideas or insight
so as to determine and bind out solution to the
problems.

DATA SOURCE

Research included gathering both Primary and

Secondary data. Primary data is the first hand data,
which are selected a fresh and thus happen to be
original in character. Primary Data was crucial to know
various customers and past consumer views about bikes
and to calculate the market share of this brand in
regards to other brands.
Secondary data are those which has been collected
by some one else and which already have 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 data collection and
best suited for descriptive type of research survey
includes research instrument like questionnaire which can be
structured and unstructured. Target population is well
identified and various methods like personal interviews
and telephone interviews are employed.

SAMPLING UNIT

26
 It gives the target population that will be sampled.
This research was carried in chandigarh

These were 100 respondents.

DATA COMPLETION AND ANALYSIS

After the data has been collected, it was tabulated

and findings of the project were presented followed by
analysis and interpretation to reach certain conclusions.

SCOPE

My project was based on the Comparative Study of

Bajaj V/S Hero Honda and data was taken in the
Chandigarh only.

27
 LIMITATIONS

1. Research work was carried out in

chandigarh only the finding may not be
applicable to the other parts of the

28
 country because of social and cultural
differences.

2. The sample was collected using

connivance-sampling techniques. As
such result may not give an exact
representation of the population.

3. Shortage of time is also reason for

incomprehensiveness.

4. The views of the people are biased

therefore it doesn’t reflect true picture.

29
30
Q1) Which bike do
you have?

Hero
Honda 47
Bajaj 38
Any other 15

Hero honda
Bajaj
Any other

31
Q2) Which Model do you Have?

Hero Honda Bajaj

Splender 21 CT 100 7
Passion 13 Discover 12
Karizma 7 Pulsar 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

32
 14
12
No of Persons Bajaj
10
CT 100
8
Discover
6
Pulsar
4
Any other
2
0
1
Model Nam e

Q3) In which family Income level do you Fall?

100000-200000 22
200000-300000 45
300000-400000 23
above 400000 10

33
 50
No of Persons 40 100000-200000
30 200000-300000
20 300000-400000
10 abov e 400000

0
1
In co m e le ve l

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

34
 40

30
No o f 0-1 y ear
20
Pe r s o n s 1-2 y ear
10 2-3 y ear
0 abov e 3 y ear
1
No o f ye ar s

Q5) For what purpose do you use your Motor Bike?

Hero Honda Bajaj

Office Purpose 9 4
Personal purpose 13 15
Joy Purpose 19 16
Other 6 3

35
 20

15
No of Persons

Hero Honda
10
Bajaj
5

0
Of f ic e Pers onal Joy Other
Purpos e purpos e Purpos e
Pu r p o s e

Q6) How do you come to know about this Motor Bike?

Hero Honda Bajaj

Newspaper 4 2

Television 23 16

Magazine 2 1

Friends &
Relative 18 19

36
 25

20
New s paper
No of Persons

15 Televis ion
10 Magzine
Friends & Relativ e
5

0
Hero Honda Bajaj
Nam e of Com pany

Q7) Does Advertisement Influence your decision

in choosing a Motor Bike?

Yes 87%
No 5%
Cant say 8%

37
 Y es
No
Cant s ay

Q8) Do you have full knowledge about Bikes before

buying?

Hero Honda Bajaj

Yes 25 23

No 22 15

38
 30
No of persons 25
20
Y es
15
No
10
5
0
Hero Honda Bajaj
Com pany Nam e

Q9) Which Factor below Influence your decision?

Hero Honda Bajaj

Price 72% 78%

Mileage 78% 64%
Quality 65% 48%
Resale Value 40% 28%
Status symbol 10% 7%

39
 100%

80% Price
No of Persons

Mileage
60%
Quality
40%
Resale V alue
20% Status s ymbol

0%
Hero Honda Bajaj
Com pany Nam e

Q10) How would you rate the following factors of Bikes

with respect to different company?

Hero Honda Bajaj

Mileage 74% 72%

Price 68% 65%
Pick up 70% 80%
Maintenance 58% 62%
Look & Shape 85% 80%

40
Brand Image 53% 55%

100%
80% Mileage
No of Persons

60% Price
40% Pick up
20% Maintenanc e
0% Look & Shape
Hero Honda Bajaj Brande Image
Com pany Nam e

Q11) If new Bike with good features comes in, then would
you like to change your bike?

Hero Honda Bajaj

Yes 19 21
No 17 14
Cant say 11 3

41
 25

20
No of Persons

15 Hero Honda
10 Bajaj

0
Y es No Cant s ay
V ie w s

42
 Conclusion

1. Most of the Pulsar, CBZ & Karizma are

purchased by young generation 18 to 30
because they prefer stylish looks and rest of

43
 the models of Hero Honda are purchased
more by daily users who needs more average
of bikes than looks.
2. Hero Honda is considered to be most fuel-
efficient bike on Indian roads.
3. Service & Spare parts are available
throughout India in local markets also.
4. While buying a motorcycle, economy is the
main consideration in form of maintenance
cost, fuel efficiency.
5. Majority of the respondent had bought their
motorcycle more than 3 years.

44
45
 RECOMMENDATIONS

1. Bajaj should introduce some more models

having more engine power.

2. Hero Honda should think about fuel

efficiency in case of upper segment bikes.

3. More service centers should be opened.

4. Maintenance cost and the availability of the

spare parts should also be given due
importance.

5. They also introduce some good

finance/discount schemes for students.

6. The price should be economic.

46
47
BIBLIOGRAPHY

1. www.herohonda.com

2. www.google.com

3. www.bajaj.com

4. www.twowheeler.com

5. www.extrememachines.com

48
THANK YOU

49