Project Report

On
Comparative study
Of
Hero Honda Motorcycles and Bajaj Motorcycles
UNDER GUIDANCE
Mr.
(Submitted in partial fulfillment of the requirement for the degree)
MASTER OF BUSINESS ADMINISTRATION
(MARKETING)
2008-2011
Jyoti Parkash
SUBMITTED BY
BBA- 6th SEM.
Roll No.-80907320015

Dr. I.T. BUSINESS SCHOOL

BANUR
 CERTIFICATE

It is certified that the project work entitled “Comparative Study Of Hero Honda
Motorcycles & Bajaj Motorcycles” done by Jyoti Parkash to be submitted to Dr. I.T.
BUSINESS SCHOOL in Partial fulfillment of the requirement of the reward of the degree
of MASTER OF BUSINESS ADMINISTRATION (Marketing) has been carried out
under my guidance and supervision.

PROJECT GUIDE:
Mr. Bhart Bhushan
Lecturer,

Dr. I.T. Business School

 ACKNOWLEDGEMENT

With deep sense of gratitude I would like to take this opportunity to thank my honorable
project guide Mr.Bhart Bhushan (Lect), Dr.I.T. Business School, who has always been a
sincere advisor and inspiring force behind this report. He has been extremely generous with
his time and rendered me all possible help to seek this work complete. I could not have
asked for more co-operative guide, his invaluable support has always given me the
confidence to do hard work. Without his guidance this project report would not have been
light of the day.
I would also like to thank my friends who were of immense help to me. I would
thank all the respondents who gave their invaluable time during the survey.
Last but not least I would like to thank my parents, their support throughout the
making of this report.

(Jyoti Parkash)

CONTENTS
1. Indian Motorcycle Industry

2. Hero Honda Motor Limited.

2.1 Introduction.
2.2 History.
2.3 Company Profile
2.4 Hero Honda’s Mandate
2.5 Group Companies.
2.6 Products.
2.7 Social Responsibility.
2.8 Key Milestone of Hero Honda.

3. Bajaj Auto Limited.

3.1 Introduction.
3.2 History.
3.3 Company Profile.
3.4 Bajaj Mandate.
3.5 Group Companies.
3.6 Products.
3.7 Social Responsibility.
3.8 Key Milestone of Bajaj Auto Limited.

4. Consumer Behavior.
4.1 Introduction.
4.2 Consumer Decision Making Process.
4.3 Factors Affecting the Motorcycle Purchase.

5. Objective of Study.
6. Research Methodology.

7. Finding.

8. Conclusion.

9. Suggestions.

10. Bibliography.

11. Questionnaire.
1. INDIAN MOTORCYCLE

INDUSTRY
 1. INDIAN MOTORCYCLES INDUSTRY

Motorcycles have come a long way since they were first introduced in the country way
back in the 1950s. The Indian government had got the first set of these mean machines
from the Royal Enfield Company of UK for its' Army and Police to patrol the border
highways on the rough and tough terrain of the West. Today these sets of two wheelers not
Only cater to the men in uniform, but also common people who have different needs and
expectations from their motorcycles. Today motorcycle companies are taking special care
to make their products more user friendly comfortable, safe, and ergonomic without
compromising on the fun and thrills of riding. Some bikes like the hero Honda Karizma can
touch speeds up to 125kmph thus truly satisfying the riders need for speed. motorcycles
have also invaded the Hindi film industry where Bollywood heart throbs like John
Abraham, Hrithik Roshan , Uday Chopra and Fardeen Khan are seen setting the roads on
fire with their set of two wheels. Thus the trend of motorcycles have caught up with the
average Indian and there a bike to suit everyone's needs and usage. Premium Segment bikes
like the hero Honda Karizma and Bajaj Pulsar provides the Generation a chance to emulate
their idols on screen. These motorcycles come with 5 speed gear box and disc brakes to
provide one the extra throttle with the adequate safety measure. These motorcycles also
come with factory fitted allow wheels to provide the extra strength and stability.
India has a burgeoning middle class, which means that value for money bikes like the hero
Honda splendor, Bajaj “Discover” have retained their importance with every passing day.
These bikes are a hit among the office goers and small time business men who demand
maximum output from their two wheelers. Motorcycles like the hero Honda splendor come
in a wide range of colors and give an average mileage of 70 km per liter.
The entry level segment of motorcycles also has a cut throat competition with the two
wheeler manufacturers trying to outdo each other by providing that extra edge in economy
biking. Some of the bikes which are available at the entry level include the Hero Honda CD
Dawn, and Bajaj CT 100.
If you are planning to buy a motorcycle, now is the right time. You couldn’t have
bargained for better deals as a new price war has been unleashed in the market by the
leading motorcycle manufacturers and the prices have hit an all time low. Walk into any
bike showroom, not only you will get a red carpet welcome but you will be surprised by the
offers: huge discounts, zero per cent finance, free insurance, free accessories, etc, etc. As
the bike makers are offering a variety of stylish and technologically advanced vehicles.

The motorcycle is being increasingly used by youngsters/bachelors in urban areas and by

rural folk as a sturdy means of personal transportation. Bigger wheels, better road grip,
higher ground clearance, power, fuel efficiency, low maintenance cost are the major
attraction of this segment. In the last two years, the motorcycle segment has witnessed the
launch of several new models from existing players. Majority of these have been in the
four-stroke engine category for which the technology has come from Japanese parents.
Increasing product differentiation and competition has resulted in new sub-segments
emerging. The efficiency segment is currently the fastest growing and constitutes four-
stroke motorcycles. This has caused a dent in the demand for two-stroke motorcycles,
which is expected to further drop in the future. Taking in to consideration the limited
availability of mass transportation in rural and semi-urban areas and suitability of
motorcycles to these conditions, there are better chances of growing the Motorcycle
segment in the future.

The major growth in motorcycle segment will be coming from Japanese segment and in
particular four-stroke motorcycles, leading to marginalization of Indian motorcycles. The
Japanese motorcycles will continue to improve penetration in the rural areas by providing
additional features like luggage carrying provision etc. The rush of new models in the small
car market combined with up gradation of small car users to new mid-size cars has lead to
sharp drop in prices of second hand cars. In some cases the price of a second hand car is
just twice the price of a brand new motorcycle. This will accelerate shift of two-wheeler
users to cars and hence affect the demand for high-end motorcycles. Therefore, in the
coming years the high end motorcycle manufacturers will have to take into consideration
prices of second hand cars, while positioning the vehicle. Nearly 80% of the motorcycle
sales are of Japanese motorcycles with the rest coming from Indian motorcycles. Eight
major players Hero Honda Motors Ltd, Bajaj Auto Ltd, LML, Kinetic Motors Limited,
Escorts Yamaha Motors Ltd, TVS LTD, Suzuki Motors and Royal Enfield control the
Indian Motorcycle industry. Among this Hero Honda is the market leader in the
Motorcycle segment with healthy market share of 48%, followed by the Bajaj Auto with
market share of around 29%. There is a full dominance of two players Hero Honda and
Bajaj Auto at present in the Indian Motorcycle industry The manufacturers of Motorcycle
manufacturer distinguish there products based on power, fuel efficiency, maintenance
requirement, Looks, style, Comfort, price etc

The Indo-Japanese segment is catered by three to five models from each of the players viz
Bajaj Auto Ltd., Hero Honda, TVS, and Escorts Yamaha. But majority of the sales is of
100cc-125cc vehicles. The motorcycle segment will be broadened on the high price front
by introducing high powered bikes priced above Rs55000. These bikes have been targeted
at college going students who have a flavor for high-powered rides. To cater to this
segment, Hero Honda launched CBZ, a 156cc four-stroke motorcycle, in March 1999.

It is priced around Rs 49000. 'Fiero' from TVS has been the one addition in this list. Bajaj
Auto is with its 220cc d pulsar, competition will hot up in the Japanese motorcycle segment
with players like LML and Kinetic Motors standing ready with their offerings. THE fiscal
year ended March 2007. May have been particularly good for the stock market, also for
two-wheeler stocks. The market's affinity for two-wheeler stocks - Bajaj Auto, Hero Honda
and TVS Motor is explained by the robust demand for motorcycles.

More players are jostling for space in the market. Global majors — Honda and Kawasaki
already have a presence in the Indian market through their local technological partners,
while Yamaha has a full-fledged production base in India.Suzuki, the other global major,
which recently severed its ties with TVS Motor Company, has now decided to set-up
manufacturing facilities in the country. Apart from international companies, there is
growing competitive pressure from existing domestic producers as well.
2. HERO HONDA MOTORS
 LIMITED

2. Hero Honda Motors Limited

2.1 Introduction

Hero Honda has a reputation of being the most fuel-efficient and the largest selling Indian
motorcycle. Its commitment of providing the customer with excellence is self-evident. A
rich background of producing high value products at a reasonable price led the world's
largest manufacturer of motorcycles to collaborate with the world's largest bicycle
manufacturer.

It was this affinity in working cultures of Honda Motor Company of Japan and the Hero
Group that resulted in the setting up of Hero Honda Motors Ltd. A relationship so
harmonious that Hero Honda has managed to achieve indigenization of over 95 percent, a
Honda record worldwide. Tactical promotions and excellent marketing helped Hero Honda
establish itself as an intelligent purchase. Its unique features like fuel conservation, safety
riding courses and mobile workshops helped the group reach in the interiors of the country.
Finance services helped facilitate purchase, as did an efficient dealer network across the
country.

Well-entrenched in the domestic market, Hero Honda Motors Ltd. turned its attention
overseas, and exports have been steadily on the rise. Over the years, the Company has
received its share of accolades, including the National Productivity Council's Award (1990-
91), and the Economic Times - Harvard Business School Association of India Award.
Hero Honda Motors Ltd is the World's largest manufacturer of motorcycles (by quantity).
Hero Honda is a 50:50 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. Its 2 plants are in

Dharuhera and Gurgaon, both in India. Third plant at Haridwar, Uttranchal is also under
commissioning stage & will start production by April, 2008. It will have world class
production facilities like Lean Manufacturing concept, more flexible lines & Stream line
material flow, within & proximity (Planning to set vendors in nearby location constituting
HHML Park). It specializes in dual use motorcycles that are low powered but very fuel
efficient.

2.2 History

The success of the Hero Group lies in the determination and foresight of the Munjal
brothers, who shared their vision with their workers and led the Group to a position where
its name has become synonymous with top-quality two wheelers.
The flame kindled by the Munjal brothers in 1956 with the flagship company Hero Cycles;
Mr. Satyanand Munjal, Mr. Brijmohan Lall Munjal and Mr. O. P. Munjal continue to carry
the torch and are actively involved in the day-to-day operations of the Hero Group.

The saga is being continued with the same zeal by the second and third generations of the
family and by the large working force of the Hero Group.

The spirit of enterprise which dominates the progress of the Group is characteristic of the
land where it all began - the City of Ludhiana, in Punjab - home to some of lndia's finest
workers and entrepreneurs.
The Hero Group is a thriving example of three generations of a family working and striving
together to ensure quality, satisfaction and extensive growth.
The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at
108.

Growth

Hero Honda experienced great growth throughout its early days. The Munjal family started
a modest business of bicycle components. By 2002 Hero Group had sold 86 million
bicycles producing 16000 bicycles a day. Today Hero Honda has an assembly line of nine
different 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 growth of the Group through the years has been influenced by a number of factors
discussed below.

Just-in-Time Manufacturing

The Hero Group through the Hero Cycles Division was the first to introduce the concept of
just-in-time manufacturing. 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. This is the Japanese style of production. In India, Hero
is probably the only company to have mastered the art of the just-in-time inventory
principle.

Ancillarisation

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.

Labor relations

In Hero Group 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." Hero workers receive a uniform allowance, as well as House
Rent Allowance (HRA) and Leave Travel Allowance (LTA).

Extra benefits include medical check-ups not just for workers, but also for the immediate
family members. For the majority of the production workers, who are hired through
contractors, these benefits are out of reach. This and other problems lead to a strike and
factory occupation by 4,000 temp workers in the Gurgaon plant in spring 2006.

Diversification

Throughout the years of enormous growth, the Group Chairman, Mr. Lall has actively
looked at diversification. A considerable level of vertical integration in its manufacturing
activities has been ample in the Group's growth and led to the establishment of the Hero
Cycles 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.

2.3 Company profile

Founder Munjal Brothers: Mr. Satyanand Munjal, Mr.

 Brijmohan Lall Munjal and Mr. O. P. Munjal.
Year of 1984 (The Hero Group was established in 1956)
Establishment
Mission "Its our mission to strive for synergy between
technology, systems and human resources, to
produce 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."
- Mr. Brijmohan Lall Munjal, Chairman & MD
Foundational Work Before the establishment of the Hero Group in
1956, Munjal Brothers use to manufacture
bicycle components in the early 1940's.
Industry Automotive - Two Wheelers
Business Group The Hero Group
Capitalization Hero Group - 26%
Ratio Honda Motor Co., Ltd. - 26%
Others - 48% (listing)
Listings & its BSE - Code: 500182
codes NSE - Code: HERO HONDA
Bloomberg - Code: HH@IN
No. of Sales 1500+
Outlets
Joint Venture The Hero Group (India) with Honda Motor Co.,
Ltd. (Japan)
Registered & 34, Community Centre
Corporate Office Basant Lok, Vasant Vihar
New Delhi - 110057
Tel.: +(91)-(11)-26142451 - 59
Fax: +(91)-(11)-26143321 / 3198 / 1830;
26152453 / 2132
Work Station 69 Km Stone
New Delhi-Jaipur Highway
Daruhera - 121106, Haryana
Website www.herohonda.com
www.herogroup.com

2.4 HERO HONDA'S MANDATE

Hero Honda is a world leader because of its excellent manpower, proven management,
extensive dealer network, efficient supply chain and world-class products with cutting edge
technology from Honda Motor Company, Japan. The teamwork and commitment are
manifested in the highest level of customer satisfaction, and this goes a long way towards
reinforcing its leadership status.

BOARD OF DIRECTORS

No Name of the Category of

Directors
1 Mr. Brijmohan Lal Munjal
2 Mr. Pawan Munjal
3 Mr. Toshiaki Nakagawa
4 Mr. Yutaka Kudo
5 Mr. Om Prakash Munjal
6 Mr. Sunil Kant Munjal
7 Mr. Tatsuhiro Oyama
8 Mr. Masahiro Takedagawa
Directorship
Chairman & Whole- time
Director
Managing Director
Joint Managing Director
Whole time Director
Non-executive Director
Non-executive Director
Non-executive Director
Non-executive Director

9 Mr. Takashi Nagai Director Non-executive &

Independent Director
10 Mr. Narinder Nath Vohra Non-executive &
Independent Director
11 Mr. Pradeep Dinodia Non-executive &
Independent Director
12 Gen.(Retd.) Ved Prakash Non-executive &
Malik Independent Director
13 Mr. Analjit Singh Non-executive &
Independent Director
14 Dr. Pritam Singh Non-executive &
Independent Director
15 Ms. Shobhana Bhartia Non-executive &
Independent Director
16 Dr. Vijay Laxman Kelkar Non-executive &
Independent Director

BRIEF PROFILE OF DIRECTOR:

MR. BRIJMOHAN LALL MUNJAL

Mr. Brijmohan Lall Munjal is the founder Director and Chairman of the Company and the
$ 2.8 billion Hero Group. He is the Past President of Confederation of Indian Industry
(CII), Society of Indian Automobile Manufacturers (SIAM) and was a Member of the
Board of the Country's Central Bank (Reserve Bank of India). In recognition of his country.

Mr. Brijmohan Lall Munjal is currently on the board of the following companies Mr. Lall
was conferred the Padma Bhushan Award by the Union Government.

1923
Born
Kamalia, Pakistan

Occupatio
Chairman
n

Salary INR 11.71 crore

Net worth $ 1.2 Billion

Children 4

Website www.herogroup.com

Dr. Brijmohan Lall Munjal is founder of The Hero Group which owns Hero Honda
Motors
2.5 Group Companies

No. Name of Company

1 Hero Honda Motors
Limited
2 Hero Cycles Limited
3 Hero Honda Finlease
Limited
4 Munjal Showa Limited
5 Sunbeam Auto Limited
6 Easy Bill Limited
7 Hero Financial Services
Limited
8 Munjal Auto Industries
Limited
9 Shivam Autotech Limited

CHANGES IN BOARD OF DIRECTORS DURING 2008-09

No. Name Designation Date Status

1 Mr. Takao Eguchi Whole-time Director 01-April-07 Resigned

2 Mr. Yutaka Kudo Whole-time Director 01-April-07 Appointed

3 Mr. Tatsuhiro Oyama Non-executive Director 11-May-07 Resigned

4 Mr. Takashi Nagai Non-executive Director 11-May-07 Appointed

2.6 Products

Hero Honda Motors Limited is currently manufacturing the following models of two
wheelers:

Bikes

• Hero Honda CD Super Dawn

• Hero Honda CD Deluxe

• Hero Honda Splendor

• Hero Honda Splendor+

• Hero Honda Passion

• Hero Honda Passion Plus

• Hero Honda Glamour

• Hero Honda Glamour-FI

• Hero Honda Achiever

• Hero Honda Karizma

• Hero Honda CBZ

• Hero Honda CBZ* (pronounced CBZ-Star)

• Hero Honda CBZ X-Treme

• Hero Honda Karizma R

Scooters

• Hero Honda Pleasure

2.7 Social Responsibility:

Hero Group's humane approach is manifest in all aspects of commercial production.

The Group undertakes various projects and activities of socio-humanitarian nature to
contribute to the National Mainstream. Group Companies, Hero Cycles Limited and Hero
Honda Motors Limited has been pioneers within the Group, in undertaking socially
productive-work-of-myriad.

Healthcare:

Raman Munjal Memorial Hospital is a 100-bed hospital with a well-equipped laboratory, a

fully functional operation theatre, an out patient department as well as a casualty section.
A fully equipped mobile clinic provides comprehensive health care to the rural masses.
The medical centre on the factory premises of the Group Companies is open for the sub-
urban and rural communities of the surrounding areas. The medical centre is also equipped
to provide First Aid and ambulance facility for road accident victims.

Other efforts, under the auspices of Hero Honda Motors Limited include:

Eye Camps: With over 15,000 patients examined and about 1700 cataract operations
performed so far, these Eye Camps have also aided patients with free accommodation, food
and medicines.
Family Planning Camps: Held since 1993 at the Civil Hospital, Rewari and Bawal, these
camps offer monetary incentives to the masses to adopt family planning measures. Blood
Donations Camps: These camps are being organised on a regular basis since 1992. 464
units have been donated to Indian Red Cross Society in the last camps.

ENT Check up Camps: Conducted by specialists from AIIMS, these camps have been
organized-since-November-1997.
Heart Check-up Camps: Since July 1988, free camps are being organized in collaboration
with Escorts Heart Institute and Research Centre, where specialized diagnosis methods like
Echocardiography and ECG are used.

Rehabilitation Camps: Conducted with the assistance of the District Rehabilitation Centre,
Red Cross Society, Rewari, these camps help physically challenged villagers to rehabilitate
and re-employ themselves. Many patients have found a new lease of life on account of the
physical-aids-given-to-them.
Dermatology Camps: Held for the first time in October 1999, the camp saw around 460
patients, where 365 patients underwent treatment for various skin ailments. Furthermore,
three Acupressure camps were also held in January 2000 where 450 persons were offered
treatment-and-advice.
School Health Programmes: The Raman Munjal Vidya Mandir was the first school to
participate in this programme. Students underwent annual medical check up to detect
nutritional deficiencies and were advised on improving and monitoring personal hygiene,
immunisation as well as prevention & control of communicable diseases.
Immunisation Programmes: All Hero Honda employees and their families benefit from
immunisation programmes for Hepatitis and Typhoid fever. More than 6,000 people have
been immunised so far. The company is also an active participant in the National Pulse
Polio-immunisation-programmes.
In-house Health Activities: The company takes a keen interest in the welfare of its
employees with the dissemination of health information among them by means of lectures,
group sessions, printed material, audio visual aids, display boards, etc.
AIDS Awareness Programmes: In association with CIL Hero Honda has done immense
work to promote awareness about AIDS.
Education:

The Raman Kant Munjal Trust fund, instituted in 1992, has helped set up a primary school
in Dharuhera. Today the Raman Kant Munjal Vidya Mandir has grown into one of the best
senior secondary schools in Daruhera. The school is affiliated to the Central Board of
Secondary Education.

Engineering:

Innovative engineering for Hero Honda means using the right and specifically designed
technology that meets the Indian consumer's requirements as well as testing road
conditions. This is exemplified by Honda's reliable 4 stroke engines and their amazing fuel
efficiency. No wonder then, that Hero Honda has manufactured 4-stroke engines ever since
its inception in 1985. Hero Honda has received ISO 14001 certification for Environmental
Conservation.

Environment:

Hero Group Companies have strived to provide environmental friendly products as well as
manufacturing units. Hero Honda's "We Care" programme was initiated with a focus on
environmental conservation and awareness, and now extends its influence to multi-
dimensional activities, for the socio-economic betterment of society.
The 4-stroke Hero Honda motorcycles undergo a high technology process to meet the most
demanding of pollution norms at every level. Hero mopeds and motorcycles having the
lowest pollution emission levels in their categories on Indian roads
 Year Event

1983 Joint Collaboration Agreement with Honda

Motor Co., Ltd., Japan signed.
2.8 KEY Shareholders Agreement signed
MILESTONES OF
HERO HONDA
1984 Hero Honda Motors Ltd. Incorporated

Hero Honda success

1985 First motorcycle "CD 100" rolled out
saga contains an
element of spirit and
1987 100,000th motorcycle produced
enterprise; of
achievement through
1989 New motorcycle model - "Sleek" introduced
grit and determination,
coupled with vision and 1991 New motorcycle model - "CD 100 SS"
meticulous planning. introduced
500,000th motorcycle produced

1992 Raman Munjal Vidya Mandir inaugurated - A

School in the memory of founder Managing
Director, Mr. Raman Kant Munjal

1994 New motorcycle model - "Splendor" introduced

1,000,000th motorcycle produced

1995 Hero Corporate Services Limited as the service

segment for the Hero Group Companies,
ancillaries, suppliers, dealers and other associates

3. 1996 Hero Winner, a large-wheeled scooter was

BAJAJ introduced by Hero Motors Limited with a choice

of 50 cc and 75 cc engines.

AUTOS 1997 New motorcycle model - "Street" introduced

Hero Honda's 2nd manufacturing plant at
Gurgaon inaugurated

1998 2,000,000th motorcycle produced

 LIMITED

3. BAJAJ AUTO LIMITED

3.1 Introduction

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 and exports
motorscooters, 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.

3.2 Company's history

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.

3.3 Company Profile

Founder Jamnalal Bajaj

Year of 1926
Establishment
Industry Automotive - Two & Three Wheelers
Business Group The Bajaj Group
Listings & its BSE - Code: 500490; NSE - Code: BAJAJAUTO
codes
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 Akurdi
Office 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

3.4 BAJAJ`S MANDATE

ABOUT BOARD OF DIRECTORS

 Name Designation
Rahul Bajaj Chairman
Madhur Bajaj Vice Chairman & Whole-Time
Director

Rajiv Bajaj Managing Director

3.5 Sanjiv Bajaj Executive Director

Group D.S. Mehta Whole-Time Director
Companies Kantikumar R. Director
Podar
Bajaj Auto is Shekhar Bajaj Director
the flagship
of the Bajaj D.J.Balaji Rao Director
group of
companies. J.N. Godrej Director
The group S.H. Khan Director
comprises of Mrs. Suman Director
Kirloskar
26 companies
and was Naresh Director
Chandra
founded in
the year 1926. Nanoo Director
Pamnani
The
companies in Manish Director
Kejriwal
the group are:
P Murari Director
Niraj Bajaj Director
Bajaj Auto Ltd. Mukand International Ltd.
Mukand Ltd. Mukand Engineers Ltd.
Bajaj Electricals Ltd. Mukand Global Finance Ltd

Bajaj Hindustan Ltd Bachhraj Factories Pvt. Ltd

 Maharashtra Scooters Ltd.
Bajaj Auto Finance Ltd.
Hercules Hoists Ltd.
Bajaj Sevashram Pvt Ltd.
Bajaj Consumer Care Ltd.
Bajaj Auto Holdings Ltd.
Jamnalal Sons Pvt. Ltd.
Bachhraj & Company Pvt.
Ltd.

Hind Lamps Ltd. Jeevan Ltd.

Bajaj Ventures Ltd. The Hindustan Housing Co
Ltd.

Bajaj International Pvt Ltd. Stainless India Ltd.

Hind Musafir Agency Pvt Ltd. Bombay Forgings Ltd.

Bajaj Allianz General Insurance Bajaj Allianz Life Insurance

Company Ltd. Company Ltd.

3.6 Products

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

Motorcycle (Presently available in market)

Bajaj Avenger
Bajaj CT 100
Bajaj Discover
Bajaj Discover DTSi
Bajaj Platina
Pulsar:
Pulsar 180 DTS-i UG
Pulsar 150 DTS-i UG
Pulsar 200 Cc
Pulsar 220 DTS-Fi

Upcoming Models
Bajaj Blade
Bajaj Sonic
Pulser135Cc
Discontinued Models

Bajaj Sunny

Bajaj Chetak

Bajaj Cub

Bajaj Super

Bajaj Wave

Bajaj Legend

Bajaj Bravo

Kawasaki Eliminator

Bajaj Kawasaki Wind 125

Bajaj Kawasaki 4s Champion

Bajaj Kawasaki KB 100 RTZ

Bajaj Boxer

Bajaj Caliber
3.7 SOCIAL RESPONSIBILY
Bajaj in the community: Bajaj Auto is committed to nation-building and contributing to
the uplift and development of the weaker sections of society. This is a legacy of our
founders, Jamnalal and Kamalnayan Bajaj. Because of their close links with Mahatma
Gandhi and the freedom struggle, they sincerely believed that as businessmen they were
trustees of the community and the profits they earned must be ploughed back for the
development of the community.

• Jankidevi Bajaj Gram Vikas Sanstha (JBGVS)

• Samaj Seva Kendra

• Kamalnayan Bajaj Hospital

Jankidevi-Bajaj-gram-Vikas-Sanstha-(JBGVS):
Bajaj Auto’s philanthropic activities among the rural poor are carried out by a trust, the
Jankidevi Bajaj Gram Vikas Sanstha (JBGVS). This trust was formed 15 years ago by
Ramakrishna Bajaj in memory of his mother, Jankidevi Bajaj. JBGVS acts as a catalyst to
development at the grass root level in 32 villages around Bajaj Auto’s Pune and
Aurangabad plants.

Vision-Statement-of-JBGVS:
JBGVS is a non-political and secular organization, which strives to improve the quality of
life of the rural poor by creating self employment opportunities at the grass-root level,
through the use of appropriate technologies, in harmony with nature.
Samaj-Seva-Kendrass:
Social activities in semi urban areas on the outskirts of Pune are undertaken by the Samaj
Seva Kendra (SSK), set up by Bajaj Auto in 1975. SSK provides local industrial workers
with opportunities for self development, education, healthcare, sports and recreation. It
involves local institutions and municipal bodies, local Rotary Clubs and NGOs in its
activities.
SSK has helped empower wives of factory workers by providing them earning
opportunities. Last year, its Laxmi Mahila Cooperative Credit Society (started in 1990)
earned Rs 1 Lakh by supplying chapattis, prepared by its members, to industrial canteens.
SSK also organises weekly medical consultation and health awareness programmes, child
and adult education, vocational training and personality development programmes, leisure
and recreational facilities for women.

Kamalnayan Bajaj Hospital:

A modern, 135-bed hospital at Aurangabad in Western Maharashtra, the Kamalnayan Bajaj
Hospital provides high-quality secondary and tertiary healthcare and specialist facilities
under one roof.

Its panel of renowned full-time consultants provides comprehensive multi-specialty care

and advanced surgical procedures such as coronary artery bypass, beating heart graft
surgeries, joint replacements, complex neurosurgical procedures, kidney transplants. The
hospital's well-designed suite of five operation theatres is equipped to cater to complex
surgical procedures.

The hospital has state-of-the-art facilities like a cardiac catheterisation lab, advanced spiral
computer topography (CT) scanner, a colour Doppler — all from GE Medical Systems — a
Mac 5000-series stress test machine, a holter monitor from GE-Marquette, ultra-touch
dialysis equipment from Baxter and an advanced reverse osmosis plant.

A well-equipped, 26-bed multi-specialty intensive care unit (ICU) provides emergency and
post-operative care that is on par with the best in the country.
 The hospital has a critical-care ambulance (a hospital on wheels) with a defibrillator,
portable ventilator, pulse oximeter, ECG machine and Glucometer. The ambulance is
attended round the clock by a physician, a nurse and support team of qualified paramedics.

The hospital’s facilities range from spacious and hygienically maintained general wards
with all essential amenities to large deluxe rooms furnished with sofas, telephones,
refrigerator, television and a small kitchenette. For relatives of patients, the hospital provides
guesthouse-facilities-and-a-professionally-managed-cafeteria.
.
The large hospital campus with its wide open spaces, pleasing landscape, ample parking are
meticulously maintained.
The hospital offers a specially designed health insurance and annual medical check-up plan
in association with Bajaj Allianz General Insurance, which provides cash-less
hospitalization and treatment.

3.8 KEY MILESTONES OF BAJAJ AUTO LIMITED

 Year Milestones
2007
April Bajaj Auto Commissions New Plant at Pantnagar, Uttarakhand
February 200 cc Pulsar DTS-i launched
January Bajaj Kristal DTS-i launched
20066
April Bajaj Platina launched
2005
December Bajaj Discover launched
June Bajaj Avenger DTS-i launched
February Bajaj Wave DTS-i launched
42004
October Bajaj Discover DTS-i launched
August New Bajaj Chetak 4 stroke with Wonder Gear launched
May Bajaj CT100 Launched
January Bajaj unveils new brand identity, dons new symbol, logo and
brandline
32003
October Pulsar DTS-i is launched
July Bajaj Wind 125,The World Bike, is launched in India.
February Bajaj Auto launched its Caliber115 "Hoodibabaa!" in the
executive motorcycle segment.
12001
November Bajaj Auto launches its latest offering in the premium bike
segment ‘Pulsar’
January The Eliminator is launched
02000
The Bajaj Saffire is introduced.
1999
Caliber motorcycle notches up 100,000 sales in record time of
12 months
Production commences at Chakan plant.
81998
June 7th Kawasaki Bajaj Caliber rolls out of Waluj.
July 25th Legend, India’s first four-stroke scooter rolls out of Akurdi.
October Spirit launched
1997
The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw are
introduced
1995
November Bajaj Auto is 50.
29
Agreements signed with Kubota of Japan for the development
of diesel engines for three-wheelers and with Tokyo R&D for
ungeared Scooter and moped development
The Bajaj Super Excel is introduced while Bajaj celebrates its
ten millionth vehicle
One million vehicles were produced and sold in this financial
year.
1994
The Bajaj Classic is introduced.
 1991
1991
The Kawasaki Bajaj 4S Champion is introduced
11990
The Bajaj Sunny is introduced.
1986
1986
The Bajaj M-80 and the Kawasaki Bajaj KB100 motorcycles
are introduced
500,000 vehicles produced and sold in a single financial year.
61985
November The Waluj plant inaugurated by the erstwhile President of
5 India, Shri Giani Zail Singh
Production commences at Waluj, Aurangabad in a record time
of 16 months
1984
1984
January Foundation stone laid for the new Plant at Waluj, Aurangabad
19
1981
1981
The Bajaj M-50 is introduced.
71977
The Rear Engine Autorickshaw is introduced
Bajaj Auto achieves production and sales of 100,000 vehicles
in a single financial year
61976
The Bajaj Super is introduced
1975
BAL & Maharashtra Scooters Ltd. joint venture

71972
The Bajaj Chetak is introduced.
11971
The three-wheeler goods carrier is introduced
1970
Bajaj Auto rolls out its 100,000th vehicle
11960
Bajaj Auto becomes a public limited company. Bhoomi Poojan
of Akurdi Plant
41959
Bajaj Auto obtains licence from the Government of India to
manufacture two- and three-wheelers
41948
Sales in India commence by importing two- and three-
wheelers.
4. CONSUMER BEHAVIOUR

4. CONSUMER BEHAVIOR
4.1 Introduction

The actions a person takes in purchasing and using products and services,
including the mental and social processes that precede and follow these actions. The
behavioral sciences help answer questions such as:

Why people choose one product or brand over another, how they make these choices, and
how companies use this knowledge to provide value to consumers.

Psychology + Marketing = Consumer Behavior

Consumer Behavior is defined as "the dynamic interaction of affect and cognition,

behavior, and environmental events by which human beings conduct the exchange aspects
of their lives." More generally, Consumer Behavior is the psychology behind Marketing
and the behavior of consumers in the Marketing environment. Two major psychological
disciplines come into play when observing and trying to explain Consumer Behavior. The
first is Cognitive Psychology. Cognitive Psychology is the study of all knowledge related
(mental) behaviors. The Attention, Perception ,Memory/Comprehension, and Decision
Making links on this website are the various aspects of cognitive psychology that play an
important role in Consumer Behavior. The second psychological discipline that has
theories to explain certain phenomenon of Consumer Behavior is Social Psychology. Social
Psychology is "the study o the manner in which the personality, attitudes, motivations, and
behaviors of the individual influence and are influences by social groups. The Affect and
Social Influence and Reference Groups links are two important topics studied in social
psychology that have an important impact on Consumer Behavior.

A consumer is a living bundle or needs and to a great extent he dictates the nature of
products to be made, distribution channels to be used and prices. It is paramount for the
marketers to know the consumer needs and wants and what he is ready to pay for them.
This helps in deciding about the marketing mix i.e. product, price, place and promotion.
The study of consumer behaviour offers the marketers an insight into the purchase
decision-making process. Accordingly, he can chalk out a strategy so as to reap maximum
benefit from it.

4.2 CONSUMER DECISION-MAKING PROCESS

Problem Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post Purchase Behaviour

Five stage model of Consumer Buying Process

Problem Recognition: -

The starting point of consumer buying process is the Problem recognition. Problem
recognition is the awareness of the want or a desire or a consumption problem without
whose satisfaction the consumer feels restless and tension charged i.e. he or she feels that a
desire or want has arisen, which has to be satisfied.

Information Search: -
A need aroused and recognized can be satisfied only when the product or service is
available. Consumer interest is indicated in the consumer’s willingness to seek further
information about product or service. Since there are varieties of products and he seeks to
have maximum satisfaction, he searches relevant information. Consumers have many
alternative sources of information to tap such as friends, relatives, neighbors, salesman,
dealers, advertisements etc.

Evaluation of Alternatives: -

Its consumer’s deep interest in the product or service that paves the way for evaluation. The
evaluation is the stage of the mental trial of the product. Once he evaluates, he develop the
intention to accept or reject a given product or service. The final purchase depends on the
relative strength of the positive intention to buy. In evaluation of alternatives many values
are taken into consideration like product characteristics, brand image etc.

Purchase Decision: -

It’s the positive intention of the consumer that leads to a purchase decision. Decision to
purchase implies consumer commitment for a product or a service. Practically it is the stage
in which consumer is taken into a purchase of the product which is selected by the
consumer in the earlier stages.

Post Purchase Behavior: -

Post purchase behaviour reaction stands for the behaviour of a consumer after a
commitment to product has made. This post purchase behaviour may be a set of positive or
negative feelings. Positive feelings go toward satisfaction and negative feelings go for
dissatisfaction

4.3 FACTORS AFFECTING THE MOTORCYCLE PURCHASE

The motorcycle purchase decision is affected by the personality and life style of an
individual as well as the product features. On the basis of this they can be divided personal
into personal and product factors.

o Personal Factors: -Personal factors are related to individual traits and personality
characteristics. They differ form person to person and affect the consumer perception,
motivation and attitude formation.

o Product Factors:-Product characteristics affect the final purchase decision of the

consumer / buyer. Before purchasing any buyer or customer gives due consideration to its
physical characteristics and the services provided.

1. Availability of Finances: -This factor has a strong bearing on the purchase

decision. An individual will first of all analyze the available resources including his income
and saving. If these fall short of the required amount, he will have to ascertain the sources
of finance open to him (example installment payment; zero% loans by various banks and
companies etc.)

2. Product Features: A consumer is affected by the product characteristics its, Looks.

Pick Up, Fuel Efficiency etc. this known as “effective appeal” There can be emotional for a
particular purchase decision. An individual may opt for a particular brand if he thinks it
adds to his prestige. This is known as “symbolic appeals”

3. Brand Image: There is cut throat competition in the motor cycle market. The
leaders in this arena are Hero Honda and Bajaj. Brand preference and consumer regarding
quality; looks distribution networks, after sale services and supporting network.
5. OBJECTIVE OF
STUDY.
5. OBJECTIVE OF STUDY

 To know the Factors which affect the consumer behavior regarding the motor-cycle
purchase.

 To know the Advertisement source which more attracts the consumer.

 To know the Purpose of consumer behind the purchase of motorcycle.

 To know the level of Satisfaction with their present motorcycle.

6. LIMITATIONS
 Limitation of the Study

1 Research work is carried out in the local area of Banur , Distt.Patiala only, so the
findings may not applicable to the different other parts of the Country because of Social
and Cultural differences.

2 Sample size is very small as compared to the population.

3 Personal biasness of consumer also affected the survey.

4 Time and Money constraints were also there.

7. RESEARCH METHODOLOGY
7. RESEARCH METHODOLOGY
Each and every project requires good research study. Success of the project and
getting genuine results, all depends upon the research method used by a researcher.

Secondary Data:

I have also collected the secondary data for research work, which I have taken from
Bajaj and Hero Honda’s internal records, trade and business publications, and various sites
related to Bajaj and Hero Honda.

SAMPLE DESIGN:

Sample design is that part of universe, which we select for the purpose of
investigation. A sample should exhibit characteristics of the universe. The researcher must
decide the way of selecting sample. Sample can be either probability samples or non-
probability samples. So here in this project I have taken the non- probability samples of the
research works.

SAMPLE FRAME

It is also known as “Source of list” from which sample is to be drawn. The sample
frame is as following: Chandigarh,Banur.

SAMPLE SIZE (100)

. An optimum sample is one, which fulfills the requirement of efficiency,

representative, reliability, and flexibility. So my sample size for this study is 100.

SAMPLE PROCEDURE
The sampling design, I have chosen to decide the sample for study is based on convenient
sampling.

DATA COLLECTION

Primary Data:

Whatever the data I have collected, it is primary data which was collected with help
of a questionnaire by asking directly to the consumers.

a) Questionnaire:

For the above purpose and to get a better insight I needed to conduct a consumer
survey. I gave questionnaire to respondent so that they can fill it and return to me. I
preferred questionnaire method because it does not pressurize the consumer and in this way
he gives correct information about the questions, which are asked to him in the
questionnaire.

b) Secondary Data:

I have also collected the secondary data for research work, which I have taken from
Bajaj and Hero Honda’s internal records, trade and business publications, and various sites
related to Bajaj and Hero Honda
8. FINDINGS

8. Findings
1. Income Group (Monthly In Rupees)

Income
Group(Monthly 0-10,000 10,000-15,000 15,000-20,000 20,000 or More
in Rupees)
Number of 49 21 22 8
Respondents

60 49
Number of Respondents

50
40
30 21 22 S eries 1
20 8
10
0
0-10,000 10,000- 15,000- 20,000
15,000 20,000 or M ore
In co m e G ro u p (M o n th ly in Ru p e e s)

From the above chart it is clear that majority of respondents i.e. 49 have motorcycle whose
monthly income lies between 0- 10,000 Rupees. 21 respondents lies between Rs.10,000-
15,000 income groups, 22 respondents lies between income group 15,000-20,000 Rupees
and very small group of respondents who have motorcycle i.e. 8 lies between income
group more than Rupees 20,000.

2. What your profession?

Category Professional Student Serviceman Businessman
Number of 16 22 44 18
Respondents

50 44
40
Number of Respondents

30 22 18
16 S e ries 1
20
10
0
t

n
en
al

an
ma
ion

ud

sm
ce
ss

St

es
rvi
ofe

Se

sin
Pr

Bu

C a te g o ry o f S o c ie ty

In the above chart it shows the categories of society that include 16 respondents are
professional (include Teachers, Lawyers, Doctors, CA`s etc.), 22 respondents are students,
44 respondents are serviceman and 18 respondents are those who run their own business..

3. Among these two which company’s motorcycle you have?

 Company’s Hero Honda Bajaj
Name
Number of 59 41
Respondents
Number of Respondents

70
59
60
50 41
40
Series1
30
20
10
0
hero Honda Bajaj
Response

Out of 100 respondents, 59 have Hero Honda motorcycles and rest of them i.e. 41
respondents has Bajaj motorcycles. It shows that majority of respondents like Hero Honda
Company motorcycles.
 4. Which of the following motorcycle you have?

Motorcycle CBZ Passion Splendor Discover Pulsor Platina others

Name Plus
Number of 5 14 37 19 11 6 8
Respondent
s
Number of Respondents

37
40
30 19
20 14 11 Series1
5 6 8
10
0
er
or

a
r
Z

s
Sp s

lso
lu

er
in
CB

ov
nd

at
P

th
Pu
sc
le

Pl

O
on

di
i
ss
Pa

Motorcycle`s Name

Out of Hero Honda motorcycles 37 respondents have Splendor which is leader in

Hero Honda motorcycles then 14 respondents have Passion Plus ,5 respondents have CBZ
and in case of Bajaj 19 respondents have Discover ,11 respondents have Pulsor , 6
respondents have Platina and 8 respondents have other motorcycle( it include 2 Hero
Honda CD 100,2 Hero Honda Dawn,2Bajaj Caliber ,2 Bajaj CT 100)
 5. How long you have been driving your motorcycle?

Years 0-1 year 1-3 Year 3-5 year More than 5

Year
Number of 21 45 25 9
Respondents

50 45
40
Number of Respondents

30 25
21
S e ries 1
20 9
10
0
0 -1 Y e ar 1 -3 3 -5 Y e a r M o re
Y e a rs th a n 5
Y e a rs
Ye a rs

Out of the 100 respondents 45 respondents are those who have been driving their
motorcycle for last 3 years , 21 respondents are those who recently bought the
motorcycle,, 25 respondents are those who have been driving their motorcycle for last 5
years and only 9 respondents are those who have been driving their motorcycle for more
than last 5 years.
 6. Which factor influences you to buy this motorcycle?

Brand Image
Functional
Performanc Price
e, 8 Brand
Image, 25 Status
Comfort, 13

Product Design
Resale
Value, 19 Price, 16 Resale Value

Product Status, 8
Comfort
Design, 11

Functional
Performance

In the above chart 19 respondents are those who get influenced by good resale value in the
market, 11 respondents get influenced by product design, 8 respondents bought motorcycle
due to the status symbol, 16 respondents bought due to the price factor, majority of
respondents i.e. 25 bought due to the brand image and only 8 respondents consider
functional performance while buying the motorcycle and 13 respondents bought
motorcycle due to the conformability of motorcycle.
7. For what purpose you have taken motorcycle?

Purpose Business Joy Riding College Going Office Going

Number of 24 18 20 38
Respondents

38
40
30 24 20
Number of Respondents

18
20 S eries 1
10
0
ng
s

g
ing
es

oin
idi
sin

Go

eG
yR
Bu

ge
Jo

fic
lle

Of
Co

P u rp o se

Out of 100 respondents, 24 respondents buy motor-cycle for business purpose, 18

for joy riding, 20 for college going, and 38 respondents for office going.
8. Are you aware of all the models of motorcycles made available to people by these
two company’s (Hero Honda and Bajaj)?

Response Yes No
Number of Respondents 92 8

100 92
Number of Respondents

80
60
Series1
40
20 8
0
Yes No
Re sponse

Above chat shows that 92 respondents are those who are fully aware of all the models of
Hero Honda and Bajaj company’s motorcycles. Only 8 respondents are those who are not
fully aware about all the models available by these two companies.
9. What is source of information that made you opt for this motorcycle?

Source of TV Ads Newspaper Magazines Friends and Bike Dealers

Information Ads Relatives Suggestions
Number of 32 8 10 33 17
Respondent
s
Number of Respondents

32 33
35
30
25 17
20 10 Series1
15 8
10
5
0
TV Ads

Friends and

Suggestions
Newspapers

Magazines

Bike Dealer
Relatives
Ads

Source of Information

The above chart shows that sources of information from where the respondents get
information before the purchase of motorcycle. 32 respondents said that they get
information from TV Ads, 8 respondents get information from Newspaper, 10 respondents
get information from Magazines, 33 respondents get information from Friends and
Relatives, 17 respondents get information from Bike Dealers.
10. How much are you satisfied with your present motorcycle?

Response Very Much Satisfied Average Dissatisfied Very Much

Satisfied Dissatisfied
Number of 43 40 16 1 0
Respondent
s
Number of Respondents

50 43 40
40
30 16 Series1
20
10 0 1
0
Average

Dissatisfied
Satisfied

Dissaisfied
Very Much

Very Much
Satisfied

Level of Satisfaction

The above chart shows the level of satisfaction of respondents. 43 respondents said
that they are very much satisfied with their present motorcycle, 40 respondents are only
satisfied, 16 respondents are those whose level of satisfaction regarding their present
motorcycle is average and there is no respondent who is very much dissatisfied with their
present motorcycle and one respondent is there who is dissatisfied with their present
motorcycle.
11. Do you find finance schemes offered by motorcycle companies worthwhile? If yes
please specify the name of the company?

Response HeroHonda Bajaj No

Number of 37 32 31
Respondents

38 37
36
Number of Respondents

34
32 S e rie s 1
32 31
30
28
H e ro H o n d a B a ja j No
R e sp o n se

Out of 100 respondents, 69 respondents said that company’s financial schemes are
worthwhile and 31 respondents said that financial schemes offered by the company were
not worthwhile. Out of 69 respondents who are satisfied with financial schemes of
company’s it include 37 consumer of Hero Honda and 32 consumers of Bajaj.
12. Which factor do you suggest the company should lay emphasis to enhance its
sales?

Factors Quality Product Design Advertisement After Sale

Improvement Campaign Services
Number of 30 19 20 31
Respondents
Number of Respondents

30 31
35
30 19 20
25
20 Series1
15
10
5
0
Improvement

Advertiseme

After Sale
nt Compaign
Product

Services
design
Quality

Factor

In the above chart 30 respondents gave suggestions to company regarding quality

Improvement, 19 respondents gave suggestion regarding improvement of their current
product design of motorcycle ,20 gave suggestions regarding improvement in their
advertisement campaign and 31 respondents suggested that company should improve their
after sale services.
9. CONCLUSION
 CONCLUSION

At the end we can say that India have very good position in two-wheeler industry. Bajaj
and Hero Honda are the two major player of two wheeler industry. But the Hero Honda’
volume is more from Bajaj. In Hero Honda motorcycle’s “Splendor” is the most saleable
motorcycle. According to the research in local areas the Brand Image of the motorcycle
more influences the consumer behavior. Consumer mostly gets information for buying the
motorcycle from T.V ads, friends and relatives .Consumers are very much satisfied with
their current motorcycle. They have no planning to change their present motorcycle. HERO
HONDA more satisfies the customer with comparison to BAJAJ motorcycles. Because
Bajaj have less resale value than Hero Honda. And its pick up is not good. At the end we
can say that the consumer wants that both companies should improve their present Quality
of motorcycle and after sale services.
10. SUGGESTION
 Suggestions

• Both the companies should build-up their services centers in small towns as well as
distant areas for the better of their services.

• Bajaj should launch one bike which could be considered as durable for e.g. as in
case of Hero Honda, Splendor is one model which is durable and has been selling for long
time.

• Both companies should work on the concept of most economical bike for lower-
income group. It is concluded from the survey, such people wants a bike which costs up to
Rs 25,000-30,000 approximate.

• Both companies should provide consumer with all the financial resources they need
(Include low interest loan schemes, exchange offers, installment system etc) under one roof
i.e. authorized dealer center.

• There should be original spare parts available at the authorized services centers.

• Well qualified and experienced staff should be recruited for better services to the
customers.
11. ANNEXURE
 BIBLIOGRAPHY

Web Sites

1 www.Indiainfoline.com

2 http://www.herohonda.com

3 http://www.bajajauto.com

4 http://www.answers.com/topic/hero-honda

Book
Kotler Philip,” Buying Behavior Process”, Marketing Management, Pearson
Education, Eleventh Edition,
QUESTIONNAIRE
 QUESTIONNAIRE

Dear Respondent,
This survey will help us understand consumer behaviour for motorcycles. Please
note that there is no right or wrong answers to this questionnaire. It will only take 10
minutes of your time.

Name _____________
Age _____________

Q 1: Income Group (Monthly in Rupees)?

(a) 0-10,000 (b) 10,000-15,000
(c) 15,000-20,000 (d) 20,000 or above
Q2: What your profession?
(a) Professional (b) Student
(c) Serviceman (d) Businessman
Q3: Among these two which company’s motorcycle you have?
(a)Hero Honda (b) Bajaj
Q4: Which of the following motorcycle you have?
(a)CBZ (b) Discover
(c) Passion Plus (d) Pulsor
(e) Splendor (f) Platina
If any other please specify________________
Q5: How long you have been driving your motorcycle?
(a) 0-1 year (b) 1-3 year
(c) 3-5 year (d) More than 5 year
Q6: What influence you to buy this motorcycle?
(a)Brand Image (b) Price
(c)Status (d) Product Design
(e) Resale value (f) Comfort
(g) Functional Performance
 Q7: For what purpose you have taken motorcycle?
(a) Business (b) Joy Riding
(c) College Going (d) Office Going
If any other purpose please specify ________________

Q8: Are you aware of all the models of motorcycles made available to people by these
two company’s (Bajaj and Hero Honda)?
(a) Yes (b) No

Q9: Which are the sources of information that made you opt for this bike?
(a) TV Ads (b) Newspaper Ads
(c) Magazines (d) Friends and Relatives
(e) Bike Dealers
Suggestions

Q10: How much are you satisfied with your present motorcycle?
(a) Very Much Satisfied (b) Satisfied
(c) Average (d) Dissatisfied
(e) Very Much Dissatisfied

Q11: Do you find finance schemes offered by motorcycle companies worthwhile?

(a) Yes (b) No
If yes please specify the name of the company_____________________

Q12: which factor do you suggest the company should lay emphasis to enhance its sales?
(a) Quality Improvement (b) Product design
(c) Advertisement Campaign (d) After Sale Services