Professional Documents
Culture Documents
The analysis of the consumer buying behaviour for Economy segment motorcycles in domestic market. (TVS Motor Company Limited) Bangalore
The Project was completed under the Guidance of Prof Sunil. D. Anto In partial fulfilment of the Course-Industry Internship Programme (IIP) in Semester II of the Post Graduate Programme in Management.
Page 1
(Batch: August 2010-12) by me at TVS motor company limited under the guidance of Prof Prasanna Mohan Raj. I confirm that this Report truly represents my work undertaken as a part of my Industry Internship Program (IIP). This work is not a replication of work done previously by any other person. I also confirm that the contents of the report and the views contained therein have been discussed and deliberated with the Faculty Guide.
VAIBHAV ANAND
Registration No
10SBCM0117
Page 2
This is to certify that Mr. Vaibhav Anand, Registration No. 10SBCM0117 has completed the Report entitled Analysis of consumer buying behaviour for economy segment motorcycles in the domestic market. Under my guidance for the partial fulfillment of the Course: : Industry Internship Programme (IIP) in Semester II of the Master of Business Administration (Batch: Aug. 2010 2012).
Page 3
ACKNOWLEDGEMENT
First and foremost, I would like to thank my Faculty Guide, Prof Prasanna Mohan Raj for him closely monitoring my work and giving me continuous feedback ensuring that the work I did was relevant to the market as well in keeping with the academic requirements. I would also like to thank my Industrial Guides, Mr. Shyam Mrithyunjayan and Mr.Vikas Sikka for giving me the opportunity to work at TVS Motor Company Limited marketing unit. They were flexible in allowing me do work that was useful for the company while at the same time was in alignment to the college needs. My thanks to all other faculties, seniors and batch mates of Alliance who have been of immense help and have always been ready to help me irrespective of their other commitments.
Vaibhav Anand
Page 4
Table of Contents
1. 2
EXECUTIVE SUMMARY ................................ ................................ .......................... 7 INTRODUCTION ................................ ................................ ................................ ....... 9 2.1 INDUSTRY OVERVIEW ................................ ................................ ........................... 11 2.1.1 2.1.2 2.1.3 2.1.4 2.1.5 2.1.6 2.1.7 2.1.8 2.1.9
2.2 INDIAN AUTOMOBILE INDUSTRY: AN INTRODUCTION ................................ ... 11 Indian Two-Wheeler Industry: A Perspective ................................ ................. 13 Evolution of Two-wheeler Industry in India ................................ .................... 14 Benefits of Two-Wheelers ................................ ................................ .............. 15 A Growth Perspective ................................ ................................ .................... 16 Two-wheelers: Market Size ................................ ................................ ............ 20 Demand Drivers ................................ ................................ ............................. 21 Rise in GDP per Capita has increased affordability of Two Wheelers .............. 22 TWO WHEELER: CATEGORIES AND SEGEMENTS................................ ............. 25
2.2.1 ................................ ................................ ................................ ............................ 31 2.2.2 ................................ ................................ ................................ ............................ 32 2.2.3 ................................ ................................ ................................ ............................ 33 2.2.4
2.3 2.4 2.5 MARKET SHARE................................ ................................ .............................. 35
PEST ANALYSIS ON TWO-WHEELER INDUSTRY: ................................ ..................... 36 PORTER S 5 FORCES ANALYSIS ................................ ................................ .............. 37 COMPANY PROFILE ................................ ................................ ............................... 40 History ................................ ................................ ................................ ........... 40 The Legacy of TV Sundaram Iyengar................................ ............................... 40 The Early Years ................................ ................................ .............................. 41 The TVS Suzuki Relationship................................ ................................ ........... 41 Rise to Present Prominence ................................ ................................ ........... 41
2.5.7
2.6
TVS Motor Company Mission & Vision ................................ ............................... 42 TVS Motor Company - Mission ................................ ................................ ....... 42 Vision Statement ................................ ................................ ........................... 42
MOTORCYCLE MODELS ................................ ................................ ......................... 44 SWOT ANALYSIS OF TVS MOTOR COMPANY LIMITED................................ ............ 45
PROJECT PROFILE ................................ ................................ ................................ 46 3.1 OBJECTIVES OF THE STUDY ................................ ................................ ................... 46
3.2 RESEARCH METHODOLOGY................................ ................................ ................... 47 Data Source: ................................ ................................ ................................ .. 48 Sample Size: ................................ ................................ ................................ ... 48 Research Methodology Adopted: ................................ ................................ .. 48 Data Collection: ................................ ................................ ............................. 48 Sampling Profile: ................................ ................................ ............................ 48 Sampling Method : ................................ ................................ ........................ 48
Limitations of the Study ................................ ................................ ........................ 49 Tools Used To Conduct The Research. ................................ ................................ ... 49
OBSERVATIONS AND ANALYSIS ................................ ................................ ........ 51 4.1 Project Implementation and Observation ................................ ............................. 51 4.1.1 4.1.2 4.1.3
4.2 4.3 UNDERSTANDING THE NEED ................................ ................................ .......... 51 THE REASON FOR RESEARCH................................ ................................ .......... 51 BUYING BEHAVIOUR ................................ ................................ ...................... 52
FACTORS AFFECTING CONSUMER BUYING BEHAVIOUR ................................ ........ 52 Data Analysis on the basis of the survey( Open & Close Ended) ............................ 53
5 6 7 8 9
FINDINGS ................................ ................................ ................................ ................. 96 RECOMMENDATIONS ................................ ................................ .......................... 101 CONCLUSION ................................ ................................ ................................ .........103 LEARNING OUTCOME ................................ ................................ ......................... 104 BIBLIOGRAPHY ................................ ................................ ................................ .....105
Page 6
10
1. EXECUTIVE SUMMARY
The feeling of freedom and being one with the Nature comes only from riding a two wheeler. Indians prefer the two wheelers because of their small manageable size, low maintenance and pricing and easy loan repayments. Indian streets are full of people of all age groups riding a two wheeler. Motorized two wheelers are seen as a symbol of status by the populace. Thus, in India, we would see swanky four wheels jostling with our ever reliable and sturdy steed: the two wheeler.
The trend of owning two-wheelers is due to a variety of facts peculiar to India. One of the chief factors is poor public transport in many parts of India. Additionally, two -wheelers offer a great deal of convenience and mobility for the Indian family. India is the second largest producer and manufacturer of two-wheelers in the world. It stands next only to Japan and China in terms of the number of two -wheelers produced and domestic sales respectively. Indian two-wheeler industry has got spectacular growth in the last few years. Indian two-wheeler industry had a small beginning in the early 50's. The Automobile Products of India (API) started manufac turing scooters in the country. Bikes are a major segment of Indian two wheeler industry, the other two being scooters and mopeds. Indian companies are among the largest two-wheeler manufacturers in the world. The change in the government's policy owning to pollution control norms and the Kyoto agreement saw the phasing out of two stroke two-wheelers from production. Currently there are around 10 two-wheeler manufacturers in the country, they being Bajaj, Hero, Hero Honda, Honda, Indus, Kinetic, Royal Enfield, Suzuki, TVS, and Yamaha.
The study tries to find out the factors - affecting the purchasing behaviour of consumers. It also tries to find out the market penetration level of these brands in urban and rural market. The research reveals various facts regarding consumer perception about various economy Industry Internship Report 2011 Page 7
segment motorcycle brands. The study also evaluates the impact of various attributes such as price, mileage, looks and style etc for brand success. This report is prepared to
communicate about the consumer perception towards the economy segment motorcycles broadly in Bangalore, India. This report states various factors on which consumers make a purchase decision. Factor analysis attempts to identify major attributes which are critical in initiating a purchase decision as well as for companies to keep in mind certain factors which consumers expect.
Page 8
2 INTRODUCTION
My internship started on 25/April/2011 and I was given the research topic as Study of the consumer buying behavior for the economy segment motorcycles in the domestic market. I was expected to draft a questionnaire which is the base and the most important part of my internship project. Therefore, I Prepared a Questionnaire keeping into consideration the Primary Objective i.e. To Understand the Consumer Buying Behaviour for economy segment motorcycles. Under the esteemed guidance of the industry guide Mr. P.V. Shyam Mrithyunjayan and Mr. Vikas Sikka chalked down an action plan to go about the project with exploratory research first. The next plan of action was to deploy me under various dealers of TVS in Bangalore so that I can carry out the survey and get the questionnaire filled . I Carried an Exploratory Survey on the basis of convenient sampling at two designated TVS showrooms i.e. Tristar Auto, Domalur and Meghdoot Auto, M.G. Road . Followed by random sampling at Cambridge layout and Anekal. The Survey was conducted keeping the Target Group (TG) in mind i.e. consumers who already own a motorcycle and also the consumers who are intending to own one. An absolute mix of 60 responses was recorded and administered under the guidance of the industry guides. Eventually, after the analysis of the exploratory research, a crisp close-ended questionnaire was drafted which was surveyed in Anekal , Attibele,Jagadish nagar, Beml
Gate,Bomnahalli,Chandapur,Kargdaspura,Ejipura,G.M Pallya and Koramangla to collect data from 200 respondents and a draft copy of the Questionnaire was put on Facebook and Orkut to get more reviews from the customers. The data accounting was then done on Microsoft excel which is supposedly the first leg of research methodology. Many errors occurred due to statistical lag which was encountered which converting the data into a binary format from the hard copy to the excel sheets. However, after thorough re -checks, the problems occurred were encountered and taken care off.
The study helped me to learn how consumers help firms and organizations improve their marketing strategies by understanding issues such as Industry Internship Report 2011 Page 9
The psychology of how consumers think, feels, reason, and select between different alternatives (example brands, products, and retailers).
The psychology of how the consumer is influenced by his or her environment (example culture, family, signs, media).
And lastly how marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer.
Page 10
Page 11
In India, since the early 1940s when the auto industry rolled out first passenger car, its significance in the economy has progressively increased. However, fro m its early days until the mid-1980s for two-wheelers and LCVs and until the early 1990s for passenger cars, the focus of development of the automotive industry has been on import substitution. The current low penetration levels in India in all three segme nts of the industry, namely commercial vehicles, passenger cars and two wheelers and under -exploitation of the potential of this industry to foster the growth of the economy have resulted in the auto industry contributing a relatively low (nearly 5 per cent) share of industrial output in India compared to the 8-10 percent range in other developing countries and around 15 per cent in mature economies. During last decade, conscious efforts have been made to find-tune state policy perspective in a manner that this industry realizes its full potential in the economy. With this, the industry has shown great advances since abolition of licensing in 1991 and automatic approval permitted up to 51 per cent foreign investment in priority sectors that included the automotive industry, except passenger car manufacture. Motor car manufacture was freed from licensing in April 1993. Public policy dispensation requiring new joint venture car manufactures to commit certain levels of phased indigenization, minimum investments in manufacturing facilities, neutralization of foreign exchange on imports with the exports of cars and components, etc. was withdrawn in September 2001 as a major initiative to bring policy framework in step with WTO requirements. The quantitative restrictions on imports were removed with effect from 1st April 2001. Thus Industrial licensing and foreign investment regime in the country has been progressively liberalized. The freeing of the industry from restrictive environment has on the one hand helped it to restructure, absorb new technologies, align itself to the global developments and realize its potential; on the other hand, this has significantly increased industry's contribution to overall industrial growth in the country. There are at present 13 manufacturers of passenger cars and multi utility vehicles, 7 manufacturers of commercial vehicles, 11 of 2 or 3-wheelers and 10 of tractors besides 4 manufacturers of engines. The industry has an investment of a sum ex ceding US$ 10 billion. During 1999-2000 the turnover of the automotive industry as a whole was US$ 12.5 Billion Industry Internship Report 2011 Page 12
approximately. The industry employees 5,00,000 people directly and more than 10 million people indirectly and is now inhabited by global majors in keen competition. The arrival of most international automotive giants in India has set the stage for an exponential growth in the component industry's levels of technology, quality and competitiveness. At the same time, the arrival of new and contemporary models has stimulated demand for vehicles in the market. The auto industry has achieved a cumulative annual growth rate (CAGR) of 22 per cent 1992-1997 (or approx. 13 to 14 per cent in real terms) outstripping industries production growth by about 30 per cent. This has led to an increase in its contribution to industrial output from 4.3 per cent in 1992 -1993 to 5.4 per cent by 1996 -1997.The component industry in the same period has grown by a CAGR of 28 percent. With this the contribution of automobile industry to the GDP has risen from 2.7 per cent of GDP in 1992 1993 to 4.5 per cent by 1996 -1997. However, with a worldwide economic slowdown, auto industry's growth pattern has shown a downward trend in last two years.
Figure 1: Indian 2W Industry snapshot Automobile is one of the largest industries in global market. Being the leader in product and process technologies in the manufacturing sector, it has been recognised as one of the drivers of economic growth. During the last decade, well-directed efforts have been made Industry Internship Report 2011 Page 13
to provide a new look to the automobile policy for realising the sector's full potential for the economy. Steps like abolition of licensing, removal of quantitative restrictions and initiatives to bring the policy framework in consonance with WTO requirements have set the industry in a progressive track. Removal of the restrictive environment has helped restructuring, and enabled industry to absorb new technologies, aligning itself with the global developme nt and also to realise its potential in the country. The liberalisation policies have led to continuous increase in competition which has ultimately resulted in modernisation in line with the global standards as well as in substantial cut in prices. Aggres sive marketing by the auto finance companies have also played a significant role in boosting automobile demand, especially from the population in the middle income group .
2.1.3
Two-wheeler segment is one of the most important components of the automobile sector that has undergone significant changes due to shift in policy environment. The two -wheeler industry has been in existence in the country since 1955. It consists of three segments viz. scooters, motorcycles and mopeds. According to the figures published by SIAM, the share of two-wheelers in automobile sector in terms of units sold was about 80 per cent during 2003-04. This high figure itself is suggestive of the importance of the sector. In the initial years, entry of firms, capacity expansion, choice of products including capacity mix and technology, all critical areas of functioning of an industry, were effectively controlled by the State machinery. The lapses in the system had invited fresh policy options that came into being in late sixties. Amongst these policies, Monopolies and Restrictive Trade Practices (MRTP) and Foreign Exchange Regulation Act (FERA) were aimed at regulating monopoly and foreign investment respectively. This controlling mechanism over th e industry resulted in: (a) several firms operating below minimum scale of efficiency; (b) under-utilisation of capacity; and (c) usage of outdated technology. Recognition of the damaging effects of licensing and fettering policies led to initiation of ref orms, which ultimately took a more prominent shape with the introduction of the New Economic Policy (NEP) in 1985. However, the major set of reforms was launched in the year 1991 in response to the major macroeconomic crisis faced by the economy. The indus trial policies shifted from a regime of regulation and tight control to a more liberalised and competitive era. Two major results of Industry Internship Report 2011 Page 14
policy changes during these years in two-wheeler industry were that the, weaker players died out giving way to the new entrants and superior products and a sizeable increase in number of brands entered the market that compelled the firms to compete on the basis of product attributes. Finally, the two-wheeler industry in the country has been able to witness a proliferation of brands with introduction of new technology as well as increase in number of players. However, with various policy measures undertaken in order to increase the competition, though the degree of concentration has been lessened over time, deregulation of the industry has not really resulted in higher level of competition.
India is the second largest producer of two -wheelers in the world. In the last few years, the Indian two-wheeler industry has seen a spectacular growth. The country stands tall next to China and Japan in terms of production and sales respectively. Majority of Indians, especially the youngsters prefer motorbikes rather than cars. Capturing a large share in two wheeler industry, bikes and scooters cover a major segment. Bikes are considered to be favourite among the youth generation, as they help in easy communication. Large varieties of two-wheelers are available in the market, known for their latest technology and enhanced mileage, Indian bikes, scooters and mopeds represent style and class for both men and women in India.
Page 15
However, few Indian bike enthusiasts prefer high performance imported bikes. Some of the most popular high-speed bikes are Suzuki Hayabusa, Kawasaki Ninja, Suzuki Zeus, Honda CBR, Hero Honda Karizma, Bajaj Pulsar and TVS Apache. These super bikes are specially designed for those who have a zeal for speedy drives.
INDUSTRY COMPARISON: According to SIAM (Society of Indian Automobile Manufacturers), the domestic market share in 2009-10 for two-wheelers industry is 76.49% which is highest when compared to the category wise market share with passenger vehicles, commercial vehicles and three wheelers which has market share of 15.96, 3.95 and 3.6 respectively as shown in Table no.1. TABLE: 1 Passenger Vehicles Commercial Vehicles Three wheelers Two wheelers DOMESTIC MARKET SHARE FOR 2009-10 15.96% 3.95% 3.6% 76.49%
Page 16
Figure 2
Page 17
National Council of Applied Economic Research (NCAER) had forecast two -wheeler demand during the period 2002 -03 through 2011 -12. The forecasts had been made using econometric technique along with inputs obtained from a primary survey conducted at 14 prime cities in the country. Estimations were based on Panel Regression, which takes into account both time series and cross section variation in data. A panel data of 16 major states over a period of 5 years ending 1999 was used for the estimation of parameters. The models considered a large number of macro-economic, demographic and socio-economic variables to arrive at the best estimations for different two-wheeler segments. The projections have been made at all India and regional levels. Different scenarios have been presented based on different assumptions regarding the demand drivers of the two-wheeler industry. The most likely scenario assumed annual growth rate of Gross Domestic Product (GDP) to be 5.5 per cent during 2002 -03 and was anticipated to increase gradually to 6.5 per cent during 2011-12. The all-India and region-wise projected growth trends for the motorcycles and scooters are presented in Table 1. The demand for mopeds is not presented in this analysis due to its already shrinking status compared to' motorcycles and scooters. It is important to remember that the above -mentioned forecast presents a long -term growth for a period of 10 years. The high grow th rate in motorcycle segment at present will stabilise after a certain point beyond which a condition of equilibrium will set the growth path. Another important thing to keep in mind while interpreting these growth rates is that the forecast could consider the trend till 1999 and the model could not capture the recent developments that have taken place in last few years. However, this will not alter the regional distribution to a significant extent Table 1 suggests two important dimensions for the two-wheeler industry. The region-wise numbers of motorcycle and scooter suggest the future market for these segments. At the all India level, the demand for motorcycles will be almost 10 times of that of the scooters. The same in the western region will be almost 20 times. It is also evident from the table that motorcycle will find its major market in the western region of the country, which will account for more than 40 per cent of its total demand. The south and the north-central region will follow this. The dem and for scooters will be the maximum in the northern region, which will account for more than 50 per cent of the demand for scooters in 2011 -12.
Page 18
Table 1 Demand Forecast for Motorcycles and Scooters 2011 -12 2-Wheeler Segment Regions
South West North-Central East & North-East All India Motorcycle Scooter 2835 4327 (12.9) (16.8) 2624 (12.5) 883 (11.1) 10669 (14.0)
203 219 602 99 1124 (2.6) (3.5) (2.8) (2.0) (2.08) Note: Compound Annual Rate of Growth during 2002 -03 and 2011-12 is presented
in parenthesis
Source: Indian Automobile Industry: Optimism in the Air, Industry Insight, NCAER
The present economic situation of the country makes the scenario brighter for short -term demand. Real GDP growth was at a high level of 7.4 per cent during the first quarter of 2004. Both industry and the service sectors have shown high growth during this period at the rates of 8.0 and 9.5 per cent respectively. However, poor rainfall last year will pull down the GDP growth to some extent. Taking into account all these factors along with other leading indicators including government spending, foreign invest ment, inflation and export growth, NCAER has projected an average growth of GDP at 6.7 per cent during the tenth five-year plan. Its mid-term forecast suggests an expected growth of 7.4 per cent in GDP during 2004-05 to 2008-09. Very recently, IMF has portrayed a sustained global recovery in World Economic Outlook. A significant shift has also been observed in Indian households from the lower income group to the middle income group in recent years. The finance companies are also more aggressive in their marketing compared to previous years. Combining all these factors, one may visualise a higher growth rate in two -wheeler demand than presented in Table 1, particularly for the motorcycle segment. There is a large untapped market in semi-urban and rural areas of the country. Any strategic planning for the two-wheeler industry needs to identify these markets with the help of available statistical techniques. Potential markets can be identified as well as prioritised Industry Internship Report 2011 Page 19
using these techniques with the help of secon dary data on socio-economic parameters. For the two-wheeler industry, it is also important to identify the target groups for various categories of motorcycles and scooters. With the formal introduction of second -hand car market by the reputed car manufacturers and easy loan availability for new as well as used cars, the two-wheeler industry needs to upgrade its market information system to capture the new market and to maintain its already existing markets. Availability of easy credit for two-wheelers in rural and smaller urban areas also requires more focussed attention. It is also imperative to initiate measures to make the presence of Indian two-wheeler industry felt in the global market. Adequate incentives for promoting exports and setting up of institutional mechanism such as Automobile Export Promotion Council would be of great help for further surge in demand for the Indian two -wheeler industry.
Page 20
continued to decline. Figure below presents the variations across various product subsegments of the two-wheeler industry between FY2009 and FY2010 .
Page 21
Increasing availability of fuel-efficient and low-maintenance models. Increasing urbanisation, which creates a need for personal transportation . Changes in the demographic profile. Difference between two-wheeler and passenger car prices, which makes two-wheelers the entry-level vehicle. Steady increase in per capita income over the past five years; and Increasing number of models with different features to satisfy diverse consumer needs.
2.1.8 Rise in GDP per Capita has increased affordability of Two Wheelers
India s per capita real GDP growth of 7% (CAGR) over the last six years (refer Chart 1) has contributed substantially towards raising the standard of living of households, which in turn has been one of the key drivers of growth for the country s automobile industry. However, income growth is likely to have been uneven across the different income deciles. Income at the lower end of the distribution scale, which comprises the 2W target segment 2, is likely to have grown at a rate below the overall per capita income growth rate. Yet economic well-being has led to a significant increase in the number of households coming within the 2W target segment over the past few years. As per NCAER s estimates, the number of households having annual income between Rs. 200,000- 00,000 is estimated to have increased to 22 million in 2009-10, a scale-up by a factor of 2.5x over 2001-02 (refer Chart2). Incidentally, this scale-up is almost similar to the expansion in the domestic 2W industry size (by volumes) during this period.
Page 22
MARKET CHARACTERISTICS 2.1.8.1 Demand 2.1.8.2 Segmental Classification and Characteristics The three main product segments in the two-wheeler category are scooters, motorcycles and mopeds. However, in response to evolving demographics and various other factors, other sub-segments emerged, viz. scooterettes, gearless scooters, and 4-stroke scooters. While the first two emerged as a response to demographic changes, the introduction of 4 stroke scooters has followed the imposition of stringent pollution control norms in the early 2000. Besides, these prominent sub -segments, product groups within these sub-segments have gained importance in the recent years. Examples include 125cc motorcycles, 100-125 cc gearless scooters, etc. The characteristics of each of the three broad segments are discussed in Table 2. Table 2: 2W- Comparative Characteristics
> 22,000
> 30,000
> 12,000
Stroke
4- Mainly stroke
4-
2-stroke
Kick/Electronic Kick/Electronic Kick/Electronic 6.5-9 90-100 7-8 and above > 100 2-3 60-70
Page 23
Fuel Efficiency (kms per litre) Load Carrying *Ex-showroom Compiled by INGRES
50-75
50-80+
70-80
High
Highest
Low Bangalore
Page 24
2.1.9.1 MARKET SEGMENTATION Market segmentation is the science of dividing an overall market into key customer subsets, or segments, whose members share similar characteristics and needs. Because it involves significant market research, market segmentation can be costly. But it is particularly important for small businesses, which often lack the resources to target large aggregate markets or to maintain a wide range of differentiated products for varied markets. Market segmentation allows a small business to develop a product and a marketing mix that fit a relatively homogenous part of the total market. By focusing its resources on a specific customer base in this way, a small business may be able to carve out a market niche that it can serve well than its larger competitors. Market segmentation lies somewhere near the middle of a continuum of marketing strategies that range from mass marketing in which a single product is offered to all customers in a market to one-to one marketing in which a different product is specifically designed for each individual customer in a market. Most businesses realize that since no two people are exactly alike, it is unlikely that they will be able to please all customers in a market with a single product. They also realize that it is rarely feasible to create a distinct product for every customer. Instead, most businesses attempt to improve their odds of attracting a significant base of customers by dividing the overall market into segments, then trying to match their product and marketing mix more closely to the needs of one or more segments. A number of customer characteristics, known as segmentation bases, can be used to define market segments. Some commonly used bases include age, gender, income, geographical area, and buying behaviour. When we talk about categories in two-wheeler industry, it is exclusive into three variances, i.e. y y y Motorcycles Scooters Mopeds
Page 25
Since, the objective of my study and project is confined to Motorcycles; I would not touch the other two categories as it gets extensive as well as deviates from the prime objective. However, segments are required to be discussed as it helps to distinguish between vario us brands, draws an impact on consumer buying behaviour and also helps in understanding the consumer s spending pattern. There are majorly three segments in the Indian motorcycle industry. Based on these segments, the motorcycles are categorized and differentiate itself from the other. To have an adequate knowledge of these segments is of utmost importance, both for the consumers as well as the companies so that they can position their products to the right target audience with an overtly impactful message that generates a craving amongst the consumers and thus creates a demand for the particular product. The following are the three segments in motorcycle industry: y y y Premium Segment Executive Segment Economy Segment
Page 26
Premium refers to a segment of a company's brands or products that carries tangible or imaginary surplus value in the upper mid- to high price range. The targeted high income customer group is also frequently referred to as "premium". Premium brands are designed to convey an impression of exclusiveness, especially in the mass markets. Frequently, companies will invent different (sub) brands to differentiate their product lines into a premium and a general segment. In most ways, the premium segment can be thought o f as the contrary to generic brands. In that sense, the term "premium" replaces the traditional attribute "luxury ". Motorcycle models with a price of over Rs. 50,000 comprise the Premium
segment, which consists largely of greater than 150 cc engine capacity bikes. This category is the most segmented and includes:
(a) Performance bikes, ranging from 150cc to 220 cc and consisting of Hero Hondas Glamour, Achiever, CBZ Extreme, Hunk and Karizma; Bajaj Autos Pulsar family, Honda Motorcycles & Scooters Unicorn Dazzler, and TVS Apache RTR, besides models from the stables of Suzuki and Yamaha.
(b) Cruiser bikes such as Royal Enfields Bullet and Bajaj Autos Avenger
(c) Ultra biking range consisting of Bajaj Autos Kawasaki Ninja, Honda Motorcycles & Scooters CB 1000R, Suzukis Hayabusa and Yamahas YZF-R1.
Page 27
It is a segment Just above the entry-level motorcycles. By entry-level we mean the entrylevel bike is the cheapest motorcycle, money can buy in India. Motorcycle models with a price
between Rs. 40,000-50,000 comprise the Executive segment, which is largely concentrated around the 100-125 cc models. The segment has benefited the most due to up-trading from the Entry segment consequent to the growing sophistication of customers, besides the steady and secure replacement demand. Accordingly, the segment s share in the domestic motorcycles segment has risen from 48% in 2005-06 to 65% in 2010-11. Being the largest volume generator, the Executive segment has also seen the largest number of new model launches and portfolio refurbishments by all players and involves the highest product and brand clutter.
Page 28
Existing brands in Executive Segment COMPANY HERO HONDA BRANDS 100cc Splendor Plus Splendor NXG Passion Plus Passion Pro BAJAJ AUTO Discover 100 Platina 125 Discover 125 TVS HONDA MOTORCYCLES & SCOOTERS SUZUKI YAMAHA MAHINDRA YBR, G5 Stallio Slingshot YBR125, SS125 Jive CB Twister Flame CB Shine Super Splendor BRANDS 125cc
Page 29
Motorcycle models with a sticker price of up to Rs. 40,000 constitute the Entry segment. This segment largely consists of 100cc bikes and is currently composed of the CD Dawn and CD Deluxe models of HHML, Platina of BAL, Star Sport of TVS and Crux and Alba of Yamaha. The Entry segment has faced continual volume pressures in the domestic market over the last several years and was also the worst hit during the credit squeeze in H2, 2007-08 and the economic slowdown of 2008-09. Although sales volumes in this segment have remained flat over 2009 -10 and 2010 -11, the segment s share in the domestic 2W market has steadily declined from 43% in 2005-06 to 16% in 2010-11. Several factors have contributed to the waning importance of the entry segment in the Indian 2W market. These include the gradual shift in preference of consumers in favour of the more feature-rich Executive segment, reluctance of organized financiers to increase credit exposure on this segment and the OEMs own strategy of reducing focus on this relatively less profitable segment.
Brand Churn in Economy Segment COMPANY BRANDS DISCONTINUED CD 100, Street, Joy EXISTING BRANDS CD Dawn
Platina
TVS
Page 30
2 2 MAJ
LA
y y y y y y y
HERO HONDA BAJAJ AUTO TVS MOTOR ROYAL ENF ELD HONDA MOTORCYCLES & SCOOTERS SUZUKI YAMAHA
2.2.1
Hero Hond Motors Li ited is a two whee e manufacturer base in India. Hero Honda is a joint venture between the Hero Group of India and Honda of Japan. The company is the largest two wheeler manufacturer in India. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108.
Hero is the brand name used by the Munjal brothers for their flagship company Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda Motors Limited At Dharuhera India. Munjal family and Honda group both own 26
stake in the Company. In 2010 it was reported that Honda planned to sell its stake in the venture to the Munjal family. During the 1980s the company introduced motorcycles that were popular in India for their fuel economy and low cost. A popular advertising campaign based on the slogan 'Fill it- Shut it - Forget it' that emphasized the motorcycle's fuel efficiency helped the company grow at a double -digit pace since inception. The technology in the bikes of Hero Honda for almost 26 years (1984 2010 has come from the Japanese counterpart Honda
ustr I t r shi R
rt
Hero Honda has a large sales and service network with over 3 000 dealerships and service points d across India. Hero Honda has a customer loyalty program since 2000 calle the Hero Honda Passport Program.
y y y y y y y y y y
Achiever Ambition 133 Ambition 135 CBZ CBZ Star, CBZ Xtreme CD 100, CD 100 SS, CD Dawn, CD Deluxe, CD Deluxe (Self Start) Glamour, Glamour F.I Hunk Karizma, Karizma R, Karizma ZMR FI Passion, Passion+, Passion Pro Pleasure Splendor, Splendor+, Splendor+ (Limited Edition), Super Splendor, Splendor NXG, Splendor PRO
2.2.2
B j j Auto is a major Indian vehicle manufacturer started by a Rajasthani merchant. It is based in Pune, Maharashtra, with plants in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttaranchal. The oldest plant at Akurdi (Pune) now houses the R&D centre Ahead. Bajaj Auto manufactures and exports automobiles scooters, motorcycles and the auto rickshaw. The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1,946, although it does not feature in the 2010 list. 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,
ustr I t r shi R
2.2. .
MO O C CL MO
rt 2011
32
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.
! ! !
fro
Ev rywh re for
Everything, Bajaj has grown operations in 50 countries by creating a line of value -for-money bikes targeted to the different preferences of entry-level buyers.
y y y y y y y y y y y y
B j j Pl ti B j j Pl ti
B j j Di cover 135 DTS-i B j j XCD 125 DTS-Si B j j XCD 135 DTS-Si B j j Pul r 135 DTSi B j j Pul r 150 DTSi B j j Pul r 180 DTSi B j j Pul r 200 DTSi B j j Pul r 220 DTS-Fi B j j Pul r 220 DTSi B j j Avenger 220 DTS-i
2.2.3
Hond Motorcycle & Scooter Indi Pri te Li ited (HMSI) is the wholly owned Indian subsidiary of Honda Motor Company, Limited, Japan. Founded in 1999, it was the fourth Honda automotive venture in India, after Hero Honda, Kinetic Honda Motor Ltd and Honda Siel Cars India Limited.
3 02 1 0 0
ustr I t r shi R
&
2.2.2.
MO O C CL MO 100cc
125 DTS-Si
rt 2011
'(
'
33
The entry of Honda into the Indian market as HMSI began with the launch of the Honda Activa, a 100 cc scooter. A slightly modified trendier version of the Activa was soon launched, as the Honda Dio. Honda Eterno was launched thereafter to add to the portfolio of HMSI's scooters. The Honda Unicorn was the first motorcycle released by HMSI. The Honda Shine has since been released.
Honda Unicorn Honda Shine Honda CBF Stunner Honda CB Unicorn Dazzler Honda CB Twister Honda CBR 220
Page 34
rides-on-discover-to-regain-market-share.htm
The following figure helps to determine the growth of the companies in the financial year 2009-2010. Hero Honda loses out on 9 percent from the last year whereas we can see a progressive growth of 9 percent with Bajaj Auto. The reports say that the flagship motorcycle of the company s executive segment i.e. Bajaj Discover helped the company to climb up a huge margin of 9 percent in one year. Sales has smashed all records and apparently there does not seems to be any looking back for Bajaj Auto as of now. Surprisingly, there have been no signs of improvement with TVS Motor and Honda Motorcycles. However, the good news is that they haven t incurred any losse s as well.
Page 35
Page 36
riding two-wheelers to make them safe from accidents makes two-wheeler riders to have a safe journey. Technical Aspects - Technical Aspects in Two-wheeler industry includes construction, fuel economy, electric motorcycles, dynamics and accessories. Two-wheeler construction is the engineering, manufacturing, and assembly of components and systems for two-wheelers which results in performance, cost and aesthetics desired by the designers. Construction of two-wheeler includes steel, aluminium frame, telescopic forks and disc brakes. Motorcycle is the best fuel economy mode of transport, Nowadays two-wheelers is designed to give more than 80km mileage per litre with low maintenance cost. Invention of Electric motorcycle gives an added advantage since the two-wheeler users can avoid using petrol. Different types of two-wheelers have different dynamics and these plays a vital role in their performance. Since sufficient bike accessories are available in many place two-wheeler riders has a privilege to change the broken parts very easily.
Rivalry among competing sellers Potential new entrants Substitute products Competitive pressures from supplier - seller relations: Bargaining power Competitive pressures from seller buyer relations: Bargaining power.
RIVALRY: The key players in two-wheeler industries are Hero Honda motor ltd. (HHML), Bajaj Auto ltd and TVS motor Company ltd. The other players are Kinetic, LML, Yamaha, Majestic auto ltd, Royal Enfield ltd and Honda motorcycle & scooter India. Two -wheelers domestic market growth rate for 2008-09 is 76.49% which is very high when compared to that of three wheelers, Passenger and commercial vehicles. The standardized product used in manufacturing of two-wheelers is steel, aluminium and rubber, because there are many
Industry Internship Report 2011 Page 37
industries in India for manufacturing those standardized product the production is going smooth. Sales of two-wheelers are very high when compared to that of three wheelers, Passenger and commercial vehicles. Indian Auto policy 2002 gives added advantage to twowheeler manufacturers to enter even other countries outside India. Since big manufacturer plant with high technology and good R&D team needed many of them dose not enter in two two-wheeler Industries. Only the companies which are in automobile line will expand their product line like Mahindra.
Potential New Entrants: Capital investment is very huge in two-wheeler industries since large plant and large machineries needed with skilled labours and good R&D team needed for producing two-wheelers. Since high technology and raw material resources are abundant to produce the production cost is less in producing two-wheelers. Since each company in industry change the model on going basis to show differentiation among their competitors because of this there is more learning and experience in this field. Each company in industry not only makes differentiation in their product strategy but also makes differentiation in the promotional strategy to create brand preference and loyalty. Because of low cost production, this industry enjoys good growth rate and profitability. Substitute Product: Substitute products for two-wheeler industries are bus transportation, Auto transportation and even low-end cars, but people using two-wheelers can only use the service of buses and auto as a substitute product. Sometimes low-end car is a substitute product for the people using high-end motor cycles. Because nowadays there is lot of segment in buses in urban areas and the private companies also influenced very much, buses are available from normal buses to hi-tech ac buses which is threat to two-wheeler industry. Since only two people can travel in a bike most of them uses auto when they go out with their family and if they are affordable to buy car will use car instead of auto. Since bus service has increased when compared to five years back people who are aged above 45 years uses buses because of their health condition. These are the substitute product available to two-wheelers. Supplier Seller Relations: Since their selling units are very high in two-wheeler industry and because of many competitors supplier are very high. Since they change their models ongoing basis they create good relationship between their suppliers. Some of the components in two-wheeler industry are very common for all the two-wheeler industries like steel,
Page 38
aluminium, tyres and tubes, these material are available in abundant. This makes them to drive a smooth production of their finished products. Seller Buyer Relations: Buyer has added advantage than seller because there are five to six big popular brands of two-wheelers are available in India, so that they can switch brand from one another. Since full information is available to the buyers about their product details and their prices buyers are fully aware of seller costs and products. Buyers are very conscious in spending their money to purchase two-wheeler, because it attracts most of the middleincome groups seller cannot price their product very high. Nowadays people go to unique brand because of the good service they provide after purchase. Because service centers and spare parts shop available to their customer very near to their place buyer sometimes do not mind spending little money extra. These factors create good relationship between them.
Page 39
2 5 C MPAN PROFIL
MOTOR
TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the top ten in the world, with annual turnover of more than USD 1 billion in 2008 -2009, and is the flagship company of the USD 4 billion TVS Group. It manufactures motorcycles, scooters, mopeds and auto rickshaws. It is India's only two -wheeler company to have won the Deming Prize awarded for commitment to quality control, received in 2002.
of TV Su
TVS Motor traces its origins back to the entrepreneurial spirit of Trichur Venkagaruswamy Sundaram Iyengar who gave up lucrative careers in the Indian Railways and in banking to set up his own business. He began with Madurai's first bus service n 1912 and founded i T.V.Sundaram Iyengar and Sons Limited, a company that consolidated its presence in the transportation business with a large fleet of trucks and buses under the name of Southern Roadways Limited. When he died in 1955 his sons took the com pany ahead with several forays in the automobile sector, including finance, insurance, manufacture of two -wheelers, I ustr I t r shi R rt 2011 P 40
tyres and components. The group has managed to run 33 companies that account for a combined turnover of nearly $3 billion.
Page 41
moped, the TVS 50cc. The company became the leader in its category of sub 100 cc mopeds, having sold 7 million units. It also introduced the TVS S cooty, which is India's second largest brand in the scooterettes segment. The TVS Jive launched in November 2009 became India's first clutch-free motorbike aimed at a stress-free rider experience while the unisex scooter Wego is targeted at urban couples, featuring body-balance technology for easier handling.
2.5.7 Awards
"TVS Motor Company has been awarded 'Star Performer Silver Shield' in two/three wheelers category, by EEPC India, for excellent export performance for year 2007-08. The award was presented by the Hon'ble President of Republic of Maldives, Mr. Mohamed Nasheed, at a glittering function at Maldives on 21st Feb'10"
TVS Motor will be responsive to customer requirements consonant with its core competence and profitability. TVS Motor will provide total customer satisfaction by giving the customer the right product, at the right price, at the right time.
2.6.2.2 TVS Motor - The Industry eader
5
TVS Motor will be one among the top two two-wheeler manufacturers in India and one among the top five two-wheeler manufacturers in Asia.
Industry Internship Report 2011 Page 42
TVS Motor will have profitable operations overseas especially in Asian markets, capitalizing on the expertise developed in the areas of manufacturing, technology and marketing. The thrust will be to achieve a significant share for international business in the total turnover.
2.6.2.4 TVS Motor - At the cutting edge
TVS Motor will hone and sustain its cutting edge of technology by constant benchmarking against international leaders.
2.6.2.5 TVS Motor - Committed to Total Quality
TVS Motor is committed to achieving a self-reviewing organization in perpetuity by adopting TQM as a way of life. TVS Motor believes in the importance of the process. People and projects will be evaluated both by their end results and the process adopted.
2.6.2.6 TVS Motor - The Human Factor
TVS Motor believes that people make an organization and that its well-being is dependent on the commitment and growth of its people. There will be a sustained effort through systematic training and planning career growth to develop employees talents and enhance job satisfaction. TVS Motor will create an enabling ambience where the maximum selfactualisation of every employee is achieved. TVS Motor will support and encourage the process of self-renewal in all its employees and nurture their sense of self worth.
Page 43
Three Wheeler
Page 44
Machine: Using all top machines of the world and Money: Finance has never been a problem for: 1. Motor: Because of its proper financial management and reputation it has a huge group of investors. 2. Material: TVS Motor Company LTD. never faces problem in case of raw Materials because of good contacts. 3. Management: TVS Motor Company Ltd. has got excellent Management because workers are relived without any chaos. 4. Monitoring: TVS Motor Company Ltd. has got excellent monitoring System, which helps in smooth working of industry.
WEAKNESS: Huge amount of money is blocked in raw materials which are needed as a production process and also spent in procuring parts of the machines, a huge amount of money is spend on new machines every now and then due to advancement in technology. Due to composite unit they have to follow all the rules & regulation of governments.
OPPORTUNITY:
There is a golden opportunity for the company, if it uses its brand name effectively and advertises it effectively. Opportunity to capture more market shares if it increases its strength. Opportunity to enter new business areas because of the well established brand name.
THREATS:
Threat from the competitor regarding the way of doing business. Threat of new entrants
Industry Internship Report 2011 Page 45
3 PROJECT PROFILE
3.1 OBJECTIVES OF THE STUDY
The primary objective of the research is to Investigate consumer attitude, perception and buying behaviour towards the economy segment motorcycles in the domestic market.
To determine the consumer perception and choice towards different motorcycle brands and also determine the most preferred motorcycle in the economy segment.
y y y
To analyze various attributes consumers look for while making their purchase To examine whether income accounts for future purchasing preferences. To understand the impact of media on consumer buying behaviour and also zero in the most suitable means to promote the brand and products
The project was started by developing an open ended Questionnaire and doing an extensive exploratory research on the consumer buying behaviour, this was done by collecting data and views of the customers in the service stations and of those who visited the showrooms in Bangalore. The exploratory study was done in order to understand the nature of problem so as to determine the best research design, collection method and selection of subjects. It was undertaken to draw definitive conclusions only with extreme caution. It was performed in the stipulated time frame of two weeks and relied on Secondary Data such as books, magazines, case studies etc and qualitative approach such as informal discussions with Consumers, employees and management.
The second part of the study involved analysis of the data collected and then the collected data was used to design a close ended final questionnaire which was surveyed in the rural areas and domestic market of Bangalore by the target group .It was filled by 260 respondents. Transmitting the collected data from hard copy format to Microsoft Excel and finally to SPSS was the last and eminent operation that was performed and various tests were run in order to analyse the data. Details of the tests performed are as follows:
Page 46
1. Descriptive Statistical Test 2. Frequency Analysis 3. Bar Chart Representation 4. Npar Tests 5. Friedman Test 6. Cross tabulation 7. Chi-Square Test 8. Discriminant Analysis 9. Factor Analysis
The effectiveness of the marketing research largely depends on the formulation of an appropriate research design considering adequate sample size, variables, and proper tools for data collection suitable to the problem given. The basis data collection and research technique adopted for the research work was:
y y
Primary research was conducted in order to find out different brands of motorcycles that people are aware off and buy, and also what are the criteria that enable them to buy a particular brand. Secondary research was conducted to carry out the market analysis of Two-wheeler automobile sector and the latest market trends in motorcycle industry. The major portions covered are the competitor description and the major players.
Page 47
The sampling method used for the study is the convenient sampling method.
3.2.6.1 The research was undertaken in following steps based action plan:
y y y y y y y y y y
Research objectives are being transformed into the action plan. Target audience is identified. Necessary literature read and applied few techniques as applicable. Initial set of questions framed and tested with initial few samples. Question/Scale Measurements is being evaluated. Modified the questionnaire as required. Location of survey to be conducted is identified. Revised questionnaire is implemented. Questionnaire filled by the targeted audience. Data collected and analyzed.
The following tools were used to complete the above stated study:
Page 49
1. MS Excel software is used to have the percentage analysis of the various data obtained through survey and to draw the graphs subsequently. 2. SPSS software is used and techniques like:
Factor analysis is used in order to determine the number of factors highly responsible for consumer buying decision. Chi-Square is use to understand the relationship between the brand preference and other variables like age, income and gender.
Page 50
Page 51
4.3 Data Analysis on the basis of the survey( Open & Close Ended)
The survey was done 3 days in Tristar (Ring road Koramangla) which included both the showroom and the service station, 2days in Meghdoot motors (Trinity circle), 2 days in Cambridge layout, Thippasandra and Anekal.
Sales
YAMAHA HONDA
98 8
S Z
76
HE
HONDA
Page 53
2-CBZ 2-CD 100 1-CD dawn Others-4-Royal Enfields 1- Honda Unicorn 3-Suzuki Zeus 4- Apache
Out of 60 respondents 12 respondents were for Hero Honda and the least were for Honda
2. IMPORTANCE OF ATTRIBUTES
rta ce f ttri
tes
Mileage
@@ @ @ A
ks
Price
Durability
E D CB @
S ee
P erf r
The most important attributes according to survey done were Mileage looks& style and price and the least important attributes were Colour, Brand and Speed.
Page 54
Style
Bu get
G
Need, Local conveyance, Brand affinity, Comfort, Style and Budget respectively were the following reasons for motivation.
4. EXPECTED MILEAGE
Nee
Page 55
Expected Mileage
20
P
10 Responses
P
0
P
< 30 9
30-40 12
40 - 50 15
50-70 19
>70 5
The maximum number of respondents were between 50-70 Kmpl and the least under the range of More than 70 Kmpl. 5. AMOUNT OF MONE RE ONDENT WERE WILLING TO SPEND TO
PURCHASE A MOTORCYCLE
Resp
25 20 15 10 5 0
ses
Responses
ustr I t r shi R
ort 2011
56
<40k&Second hand 9
40-50
50-70
70+
Gifts
17
23
Maximum number of respondents were under 50-70k category .The reason being people have more disposable income.
Colours
Black Bl e
Red Grey
Q
White Combinations
Colours Responses
Blue 12
Black 21
Red 6
Grey 4
White 7
Combinations 10
Page 57
7. ANALYSIS OF WETHER PEOPLE WOULD PAY MORE FOR THEIR FAVOURITE COLOUR
Blue YES NO 9 3
Black 17 12
Red 2 3
Grey 3 1
Others 7 3
People said they wont mind paying extra money for the motorcycle provided they get the colour which they prefer the most and even said that for an economy segment bike its not worth it, for a premium segment bike they can still think about it.
8. WOULD CUSTOMERS GO FOR A LOAN PAYMENT FOR PURCHASING AN ECONOMY SEGMENT MOTORCYCLE?
Yes
No ay e
S R
Page 58
YES 16
NO 42
MAYBE 2
The respondents said they will certainly go for a down payment because less than 50,000 Rs is too small an amount to go for loan as they will end up paying a lot of interest and it is too cumbersome as it involves a lot of time and paperwork.
Yes
U
Does ot Maybe
T
atter
YES 32
Maybe 4
The ratio of resale value is 4:3 as people develop an emotional attach with the bike so they dont think about selling it. But majority said its one important attribute before buying the bike as they expect to get half the value after 4-5 years. (Depreciation of 10% every year)
Industry Internship Report 2011 Page 59
10. ANALYSIS OF THE TIME AND TYPE OF SERVICE Most of the individuals get their motorcycles serviced by authorised dealers once in 2 -3 months (2000kms) odd and opt for Routine general wash and service
Category
Ex e sive it a a zi g looks a style low ileage Dece tly sylis wit economical rice good mileage
Y Y b W V W ` ` Y X b W V aW
Majority of the people preferred the motorcycle with decent looks and good mileage because of the following reasons 1. Prices of petrol are soaring high day by day. 2. Motorcycles are mostly bought by people for local conveyance and need of transport as analysed before. 3. Economy segment motorcycles are bought considering mostly the Mileage attribute.
Industry Internship Report 2011 Page 60
MEDIA
Newspapers
TOI is read the most by the people followed by Praja Vani and Deccan Chronicle.
Page 61
els
Sony
Zee TV MTV
Sony, Star plus, NDTV, Channel V and Surya TV are the most watched TV channels 14. AWARENESS OF SOCIAL NETWORKING SITES
Facebook, Orkut and Gmail are the only networking sites respondents were aware of moreover only the people dwelling in the urban areas are aware of social networking sites, majority of the people in rural areas were not aware of it.
Page 62
15. FAVOURITE TV COMMERCIAL OF MOTORCYCLES AND THE REASON FOR ITS REMEMBERANCE. 1-Tvs Apache RTR Theme background and latest vision. 2-Hero Honda Hunk-Teaser campaign (looks sturdy) 3-Hero Honda Splendor-Old classic advertisement. 4-Hero Honda Karizma Because of Hrithik Roshan and Slogan Desh Ki Dhadkan Dhak Dhak go... 5- Bajaj Pulsar- Stunts, the definitely male campaign. 6- Royal Enfield Background appearances, Looks and style.
CONSUMER
PERCEPTION
ANALYSIS
ON
ECONOMY
SEGMENT
Honda Mahindra
Yamaha was preferred by the customers on the first place followed by Hero Honda and Bajaj.
Industry Internship Report 2011 Page 63
Honda
TVS ahindra
g
Suzuki
1- Hero Honda 2-Yamaha 3-Bajaj 4-Tvs 18. AWARENESS OF NEW FEATURES PRESENT IN MOTORCYCLES 1-Automatic indicators 2-puncture resistant tyres as in Honda Activa 3-Engine shield 4-Mobile Charger 5-Free gear start
Page 64
Aware ess
Automatic indicators
uncture resistant tyres
h
Engine shield
Your monthly Income? i. ii. iii. iv. v. Below Rs. 15000 15000-25000 25000-35000 Above 35000 N/A
Table 4-1- Monthly Income % of Respondent
Monthly Income Below Rs. 15000 15000-25000 25000-35000 Above 35000 N/A
18 26 49 28 33
Page 65
Mont ly income
N/A 21%
25000-35000 32%
Analysis:
From the data obtained through survey it can be analyzed that most of the respondent belongs to the income group of Rs. 25000 -35000 i.e. 32%. It shows that most of the respondents are the working category people who majorly own a motorcycle; also it includes the one who intend to buy a new one. The second category of respondents is those who don t have any income as such. They are basically the student groups who are dependent on their parents and representing 21%. The income group having income above Rs.35000 represents 18%. The income group below Rs.15000 has the minimum representation.
Marital Status -
Married ( )
Bachelor ( )
Martial Cumulative Frequency Valid Married Bachelor Total 83 178 261 Percent 29.9 70.1 100.0 Valid Percent 29.9 70.1 100.0 Percent 29.9 100.0
Page 66
Maritial
Married 30
i
Bachelor 70
p
Analysis: From the data obtained through survey it can be analyzed that most of the respondents are Bachelor i.e. 70 percent of the total sample size and the remaining 30% is comprised of the married respondents. This question would help to identify the difference between the buying behaviours and spending patterns of both Married as well as Bachelor respondents in the questions to come. How old are you? i. ii. iii. iv. 18-25 26-30 31-35 Above 36
Age Cumulative Frequency Valid 18-25 26-30 31-35 above 36 20 41 52 41 Percent 12.2 25.1 32.9 29.8 Valid Percent 13.0 26.6 33.8 26.6 100.0 Total 154 100.0 Percent 13.0 39.6 73.4 100.0
Page 67
Age
18-25 12%
Above36 30%
26-30 25%
31-35 33%
Analysis: From the data obtained through survey it can be analyzed that most of the respondents are in the age group of 31-35 i.e. 33% followed by the Above 36 age slab i.e. 30%. It clearly indicates that the majority of the surveys respondents are of mid-age, who apparently does not want to spend more than Rs. 50,000 on a new motorcycle. This analysis can be supported by the various cross tabulations which are performed keeping into consideration the change in preferences and how they differ from every age-segment.
Do you own a motorcycle Cumulative Frequency Valid No yes Total 65 89 154 Percent 42.2 57.8 100.0 Valid Percent 42.2 57.8 100.0 Percent 42.2 100.0
Page 68
No 42%
Yes 58%
Analysis: From the data obtained through survey it can be analyzed that most of the respondents own a motorcycle i.e. 58 percent whereas there are still 42 percent who do have one. This can be considered as a potential market for the organization as most of the respondents who do not own a motorcycle do intend to buy one in future.
Do you own a motorcycle No age 18-25 26-30 31-35 above 36 Total 9 16 22 18 65 Yes 11 25 30 23 89 Total 20 41 52 41 154
Page 69
No Yes
31-35
above 36
Analysis: The given data above illustrates the Age and Do you own a motorcycle Cross-tabulation. Clearly indicates that maximum number of people owning motorcycles lie in the age group of 31-35. This particular age group people identifies the target group which wants to invest in a product that is good value for money and also economic in nature.
Page 70
No 10
Analysis: From the data obtained through survey it can be analyzed that most of the respondents intend to buy a new motorcycle, irrespective of whether they own one as of now or not. 90 percent of the respondents want to buy a new motorcycle. This clearly addresses the demand in the market. Now what is it that they look in for before buying a new motorcycle is to be understood. There are few cross-tabulations that are performed, which would help to analyze the relations and intentions of people from various age groups.
Yes 90
Page 71
ANALYSIS OF OBJECTIVES 1. To examine whether income accounts for future purchasing preferences. This objective can be analysed with the help of Cross Tabulation and the associated ChiSquare value to assess if a relationship exists between two nominal scaled variables.
Case Processing Summary Cases Valid N Affordability purchase * Future 261 Percent 100.0% N 0 Missing Percent .0% N 261 Total Percent 100.0%
Affordability * Future purchase Cross tabulation Future purchase Affordability Less than 30000 Count % within motorbike 21 87.5% scooter 0 .0% electric bike can t say don t want 1 4.2% 2 8.3% 0 .0% Total 24 100.0%
Affordability 30001-40000 Count % within 28 73.7% 6 15.8% 2 5.3% 2 5.3% 0 .0% 38 100.0%
Affordability 40001-50000 Count % within 70 76.1% 2 2.2% 5 5.4% 3 3.3% 12 13.0% 92 100.0%
Affordability 50001-60000 Count % within 29 78.4% 0 .0% 1 2.7% 7 18.9% 0 .0% 37 100.0%
Affordability 60001-80000 Count % within 41 83.7% 0 .0% 0 .0% 8 16.3% 0 .0% 49 100.0%
Affordability More than 80000 Count % within 21 100.0% 0 .0% 0 .0% 0 .0% 0 .0% 21 100.0%
Page 72
Affordability * Future purchase Cross tabulation Future purchase Affordability Less than 30000 Count % within motorbike 21 87.5% scooter 0 .0% electric bike can t say don t want 1 4.2% 2 8.3% 0 .0% Total 24 100.0%
Affordability 30001-40000 Count % within 28 73.7% 6 15.8% 2 5.3% 2 5.3% 0 .0% 38 100.0%
Affordability 40001-50000 Count % within 70 76.1% 2 2.2% 5 5.4% 3 3.3% 12 13.0% 92 100.0%
Affordability 50001-60000 Count % within 29 78.4% 0 .0% 1 2.7% 7 18.9% 0 .0% 37 100.0%
Affordability 60001-80000 Count % within 41 83.7% 0 .0% 0 .0% 8 16.3% 0 .0% 49 100.0%
Affordability More than 80000 Count % within 21 100.0% 0 .0% 0 .0% 0 .0% 0 .0% 21 100.0%
Affordability Total Count within Affordability Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 65.551
a
210 80.5%
8 3.1%
9 3.4%
22 8.4%
12 4.6%
261 100.0%
df 20 20 1
The Chi-Square analysis is the examination of frequencies of two-nominal scaled variables in cross tabulation to determine whether the variables have a relationship.
Page 73
70
41
28
21
29
21
12 0 1 2 0
s
2 2 0
5 3 2
40,001-50,000
0 1
0 0
0 0 0
More t a n 80,000
s
50,001-60,000
60,001-80,000
The case processing summary above clearly depicts that out of 300 respondents, 261 respondents who were intenders answered this question. The crosstab table above shows that out of 261 respondents 210 respondents wanted to purchase a motorcycle in future that is 80.5% of the total intenders, the majority falls under the Rs 40,000-50,000 category. The second table Chi-Square tests shows that at 95% significance level the value is less than .05 which shows that there is a significant relationship between income and future purchase.
KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig. .497 38.959 21 .010
Page 74
The Kaiser-Meyer-Olkin measure of sampling adequacy should be between 0-1 and should not be less than 0.5 so the table above shows the value of 0.497 there is a slight difference which could be rectified if the sample size is more.
Total Variance Explained Initial Eigenvalues Component Factors 1 2 3 4 5 6 7 Total 1.345 1.175 1.083 1.011 .899 .771 .717 % of Variance 19.209 16.781 15.471 14.439 12.843 11.010 10.248 Cumulative % 19.209 35.990 51.460 65.900 78.743 89.752 100.000 Total 1.345 1.175 1.083 1.011 Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings % of Variance 19.209 16.781 15.471 14.439 Cumulative % 19.209 35.990 51.460 65.900 Total 1.235 1.142 1.129 1.107 % of Variance 17.637 16.321 16.133 15.809 Cumulative % 17.637 33.958 50.091 65.900
Page 75
The screen plot graphs the Eigen-values against the factor number
Rotated Component Matrixa Component 1 Factor price Factor mileage Factor style Factor maintenance Factor resale Factor performance Factor safety .719 .783 .710 .765 looks& .725 .862 2 3 .729 4
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.
Page 76
Rotated Component Matrixa Component 1 Factor price Factor mileage Factor style Factor maintenance Factor resale Factor performance Factor safety .719 .783 .710 .765 looks& .725 .862 2 3 .729 4
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.
The above table shows how the 7 factors are finally reduced to 4 factors which are the most important factors in making the purchase decision. The Rotated Component Matrix shows that in the first component- Factor mileage and Factor Maintenance can be grouped together likewise in 2 component Factor performance and factor Safety. In component 4 looks and style shows a value of 0.862 which shows that looks and style is the most preferred and important attribute taken into consideration before buying a motorcycle followed by Performance ,Maintenance and Mileage.
Page 77
3. To determine the consumer perception and choice towards different motorcycle brands and also determine the most preferred motorcycle in the economy segment.
TVSSTARCITY Cumulative Frequency Valid NA MOST PREFERRED PREFERRED NEUTRAL LEAST PREFFERED NOT PRFERRED Total Missing Total System 64 21 16 17 16 20 154 10 164 Percent 39.0 12.8 9.8 10.4 9.8 12.2 93.9 6.1 100.0 Valid Percent 41.6 13.6 10.4 11.0 10.4 13.0 100.0 Percent 41.6 55.2 65.6 76.6 87.0 100.0
TVSSPORT Cumulative Frequency Valid NA PREFERRED NEUTRAL NOT PRFERRED Total Missing Total System 145 4 1 4 154 10 164 Percent 88.4 2.4 .6 2.4 93.9 6.1 100.0 Valid Percent 94.2 2.6 .6 2.6 100.0 Percent 94.2 96.8 97.4 100.0
TVSJIVE Cumulative Frequency Valid NA 153 Percent 93.3 Valid Percent 99.4 Percent 99.4
Page 78
1 154 10 164
.6 100.0
100.0
HEROHONDASPLENDOR100 Cumulative Frequency Valid NA MOST PREFERRED PREFERRED NEUTRAL LEAST PREFFERED NOT PRFERRED Total Missing Total System 95 11 16 13 10 9 154 10 164 Percent 57.9 6.7 9.8 7.9 6.1 5.5 93.9 6.1 100.0 Valid Percent 61.7 7.1 10.4 8.4 6.5 5.8 100.0 Percent 61.7 68.8 79.2 87.7 94.2 100.0
HEROHONDASPLENDORNXG Cumulative Frequency Valid NA MOST PREFERRED PREFERRED NEUTRAL LEAST PREFFERED NOT PRFERRED Total Missing Total System 145 2 3 2 1 1 154 10 164 Percent 88.4 1.2 1.8 1.2 .6 .6 93.9 6.1 100.0 Valid Percent 94.2 1.3 1.9 1.3 .6 .6 100.0 Percent 94.2 95.5 97.4 98.7 99.4 100.0
Page 79
HEROHONDAPASSIONPRO Cumulative Frequency Valid MOST PREFERRED PREFERRED NEUTRAL LEAST PREFFERED NOT PRFERRED Total Missing Total System 47 50 39 15 3 154 10 164 Percent 28.7 30.5 23.8 9.1 1.8 93.9 6.1 100.0 Valid Percent 30.5 32.5 25.3 9.7 1.9 100.0 Percent 30.5 63.0 88.3 98.1 100.0
HEROHONDACDDELUXE Cumulative Frequency Valid NA MOST PREFERRED PREFERRED NEUTRAL LEAST PREFFERED NOT PRFERRED Total Missing Total System 123 5 6 9 5 6 154 10 164 Percent 75.0 3.0 3.7 5.5 3.0 3.7 93.9 6.1 100.0 Valid Percent 79.9 3.2 3.9 5.8 3.2 3.9 100.0 Percent 79.9 83.1 87.0 92.9 96.1 100.0
HEROHONDACDDAWN Cumulative Frequency Valid NA MOST PREFERRED PREFERRED NEUTRAL 75 9 12 13 Percent 45.7 5.5 7.3 7.9 Valid Percent 48.7 5.8 7.8 8.4 Percent 48.7 54.5 62.3 70.8
Page 80
22 23 154 10 164
85.1 100.0
BAJAJDISCOVER100 Cumulative Frequency Valid NA MOST PREFERRED PREFERRED NEUTRAL LEAST PREFFERED NOT PRFERRED Total Missing Total System 80 11 8 17 18 20 154 10 164 Percent 48.8 6.7 4.9 10.4 11.0 12.2 93.9 6.1 100.0 Valid Percent 51.9 7.1 5.2 11.0 11.7 13.0 100.0 Percent 51.9 59.1 64.3 75.3 87.0 100.0
BAJAJDISCOVER125 Cumulative Frequency Valid NA MOST PREFERRED PREFERRED NEUTRAL LEAST PREFFERED NOT PRFERRED Total Missing Total System 79 28 9 8 22 8 154 10 164 Percent 48.2 17.1 5.5 4.9 13.4 4.9 93.9 6.1 100.0 Valid Percent 51.3 18.2 5.8 5.2 14.3 5.2 100.0 Percent 51.3 69.5 75.3 80.5 94.8 100.0
Page 81
BAJAJPLATINA Cumulative Frequency Valid NA MOST PREFERRED NEUTRAL LEAST PREFFERED NOT PRFERRED Total Missing Total System 120 9 4 18 3 154 10 164 Percent 73.2 5.5 2.4 11.0 1.8 93.9 6.1 100.0 Valid Percent 77.9 5.8 2.6 11.7 1.9 100.0 Percent 77.9 83.8 86.4 98.1 100.0
HONDACBTWISTER110 Cumulative Frequency Valid NA MOST PREFERRED PREFERRED NEUTRAL LEAST PREFFERED NOT PRFERRED Total Missing Total System 81 3 11 16 21 22 154 10 164 Percent 49.4 1.8 6.7 9.8 12.8 13.4 93.9 6.1 100.0 Valid Percent 52.6 1.9 7.1 10.4 13.6 14.3 100.0 Percent 52.6 54.5 61.7 72.1 85.7 100.0
SUZUKISLIGSHOT Cumulative Frequency Valid NA 123 Percent 75.0 Valid Percent 79.9 Percent 79.9
Page 82
MOST PREFERRED PREFERRED NEUTRAL LEAST PREFFERED NOT PRFERRED Total Missing Total System
3 5 6 1 16 154 10 164
YAMAHAYBR110 Cumulative Frequency Valid NA PREFERRED NEUTRAL LEAST PREFFERED NOT PRFERRED Total Missing Total System 133 7 7 3 4 154 10 164 Percent 81.1 4.3 4.3 1.8 2.4 93.9 6.1 100.0 Valid Percent 86.4 4.5 4.5 1.9 2.6 100.0 Percent 86.4 90.9 95.5 97.4 100.0
YAMAHASS125 Cumulative Frequency Valid NA PREFERRED NEUTRAL LEAST PREFFERED NOT PRFERRED Total Missing System 133 5 4 4 8 154 10 Percent 81.1 3.0 2.4 2.4 4.9 93.9 6.1 Valid Percent 86.4 3.2 2.6 2.6 5.2 100.0 Percent 86.4 89.6 92.2 94.8 100.0
Page 83
Frequency V li A ED
y y v u
Percent
V li Percent . . . . . . . .
P EFE E
. . . .
EAS P EFFE ED
P FE
ED
t l
t l
Anal i
As per the data obtained and anal ed on the basis of the mean ranks given by the respondents to their most preferred economy segment motorcycle amongst the given list in I ustr I t r shi R ort 2011 P 84
ing
System
HeroHonda Splendor 40
v u
. . . .
y u u
the questionnaire, the following conclusion can be drawn. The above listed motorcycles in the pie-chart are the most preferred economy segment motorcycles in the market as of now. 1. Hero Honda Splendor 2. Hero Honda Splendor plus 3. TVS StaR City 4. Bajaj Discover 100 5. Hero Honda CD Dawn
4. To analyse the impact of demographic factors on choosing a two-wheeler and specific brands of motorcycles.
Crosstab Future purchase motorbike Marital bachelor Count % within Marital married Count % within Marital Total Count % within Marital 155 85.6% 55 68.8% 210 80.5% scooter 1 .6% 7 8.8% 8 3.1% electric bike 4 2.2% 5 6.3% 9 3.4% cant say 14 7.7% 8 10.0% 22 8.4% dont want 7 Total 181
3.9% 100.0% 5 80
4.6% 100.0%
Page 85
250
200
don t want
Total
50
Married
Bachelor
Total
Out of the total respondents who were intenders 181 were Bachelors and 60 were married. 210 respondents wanted to buy a motorcycle in future that is 80.5 % of the total respondents.
Age
uue u
se
Crosstab Future purchase motorbike scooter electric bike 0 .0% 2 2.3% 6 7.3% 1 1.9% 9 can t say 3 7.9% 8 9.2% 7 8.5% 4 7.4% 22 don t want 0 .0% 5 5.7% 4 4.9% 3 5.6% 12 P 86 Total 38 100.0% 87 100.0% 82 100.0% 54 100.0% 261
age
18-25
26-30
31-35
ustr I t r shi R
Crosstab Future purchase motorbike scooter age 18-25 Count % within age 26-30 Count % within age 31-35 Count % within age above 36 Count % within age Total Count % within age 34 89.5% 68 78.2% 65 79.3% 43 79.6% 210 80.5% 1 2.6% 4 4.6% 0 .0% 3 5.6% 8 3.1% electric bike 0 .0% 2 2.3% 6 7.3% 1 1.9% 9 3.4% can t say 3 7.9% 8 9.2% 7 8.5% 4 7.4% 22 8.4% don t want 0 .0% 5 5.7% 4 4.9% 3 5.6% 12 4.6% Total 38 100.0% 87 100.0% 82 100.0% 54 100.0% 261 100.0%
250
200
Total 50
18-25
26-30
31-35
above 36
Total
The above Cross tabulation shows that maximum number of intenders fall under the age group of 26-35 years out of which the majority wants to buy a motorcycle in future.
ustr I t r shi R
ort 2011
87
Mari al
wo-w eeler
Crosstab
wo-wheeler
h f
married
19
j
26
j
8
j
18
j
2
j
2
j
2
j
0
j
3
j
23.8 otal 86
e
2.5 6
2.5 2
.0
3.8 5 1.9
8
j
300
Bachelor
Married
Total
In the above Cross Tabulation it shows that out of 181 respondents who were bachelors 67 prefer Hero Honda, 45 prefer Bajaj and 31 prefer TVS. This shows that majority of the I ustr I t r shi R ort 2011 P 88
33.0
2.3
.8
3.1
Marital
ba helor
67 37.0
45
31
20
4 2.2
0 .0
8 4.4
2 1.1
VS
bachelors prefer Hero Honda over the other brands. Out of 80 married respondents 26 prefer Bajaj, 19 prefer Hero Honda and 18 prefer Honda.
Two-wheeler Hero Honda Age 1825 14 Bajaj 7 TVS 6 Royal Honda Suzuki Enfield Mahindra Yamaha others Total 8 0 .0% 5 5.7% 1 1.2% 0 .0% 6 2.3% 1 2.6% 2 2.3% 1 1.2% 2 3.7% 6 2.3% 1 2.6% 0 .0% 1 1.2% 0 .0% 2 .8% 1 2.6% 1 1.1% 4 4.9% 2 3.7% 8 3.1% 0 38
.0% 1.0E2 % 3 87
2630
3.4% 1.0E2 % 0 82
3135
.0% 1.0E2 % 2 54
abo ve 36 Total
1.9% 1.0E2 %
Page 89
Crosstab
300 250
200
150
100
Mahindra Yamaha
50
0
others Total
18-25
26-30
31-35
Above 36
Total
From the above Cross tabulation it can be analysed that the majority of the intenders fall under the age group of 26-35 years and prefer Hero Honda, Bajaj and TVS respectively.
unt S
srq
showrooms
}{
showrooms
~x
showrooms
{{
same
v
others
w
ot l
v v ~
arital
achelor
The above table shows that 76% of the bachelors visit one or two showrooms before buying a motorcycle whereas only 68% of the married respondents visit 1 or two showrooms on the other hand only 24% bachelors visit more than 3 showrooms and hardly 11 % of the married respondents visit more than 3 showrooms. I ustr I t r shi R ort 2011 P 90
otal
}{
}}
married
t
~
v
Mari al S owrooms
m po y
ross abulation
x
~
v z
Age * Showrooms Cross tabulation Count Showrooms more than 3 1showroom age 18-25 26-30 31-35 above 36 Total 8 28 23 21 80 2 showrooms 17 21 24 15 77 3 showrooms 8 20 13 6 47 showrooms 5 17 20 12 54 twice the same 0 0 1 0 1 others 0 1 1 0 2 Total 38 87 82 54 261
The above table shows that respondents under the age group of 26-30 years have chosen all the options of visiting the showroom , the majority chooses to visit only one or two showrooms before buying the motorcycle and the majority is above the age of 30 years. There are only 2 respondents who chose to visit the same showroom again.
Age * Information Cross tabulation Count Information newspapers/ magazines age 18-25 26-30 31-35 above 36 Total 22 60 53 29 164 TV/radio 2 4 6 4 16 internet 2 11 6 8 27 family/friends 10 10 12 10 42 bill boards/ pamphlets 1 2 2 3 8 others 1 0 2 0 3 Total 38 87 82 54 261
The above table displays out of 261 respondents 164 have collected the information about motorcycles before making the purchase decision from newspapers and magazines as it is one of the cheapest and easiest available option from the view point of customers.
Page 91
5. To understand the impact of media on consumer buying behaviour and also zero in the most suitable means to promote the brand and products
Newspaper/Magazines Cumulative Frequency Valid 0 1 Total 56 98 261 Percent 36.4 63.6 100.0 Valid Percent 36.4 63.6 100.0 Percent 36.4 100.0
News a er/Magazines
No 36%
Yes 64%
TV/Radio Cumulative Frequency Valid 0 1 Total 103 158 261 Percent 62.3 37.7 100.0 Valid Percent 62.3 37.7 100.0 Percent 62.3 100.0
Page 92
T / adio
Yes 38% No 62%
Internet Cumulative Frequency Valid 0 1 Total 122 32 154 Percent 79.2 20.8 100.0 Valid Percent 79.2 20.8 100.0 Percent 79.2 100.0
Internet
Yes 21%
No 79%
Family/Friends Cumulative Frequency Valid 0 1 Total 98 56 154 Percent 63.6 36.4 100.0 Valid Percent 63.6 36.4 100.0 Percent 63.6 100.0
Page 93
Family/Friends
Yes 36%
No 64%
Bill Board/Pamphlets Cumulative Frequency Valid 0 1 Total 140 14 154 Percent 90.9 9.1 100.0 Valid Percent 90.9 9.1 100.0 Percent 90.9 100.0
Bill Board/Pamphlets
Yes 9%
No 91%
Page 94
Valid
0 1 Total
137 17 154
89.0 100.0
Ot ers
Yes 11%
No 89%
Analysis: When we talk about the importance of media in influencing the consumer buying behaviour, Newspapers/Magazines are still the most cherished and desired source of information and food for thought for the consumers. Although, it is a conventional mode, however keeping the Indian audience in mind Newspapers/Magazines are the best source to advertise the products. It is followed by TV/Radio, which means there is a large scope for advertisements and promotions in this particular mode to increase the public awareness. Often, it happens that a product has every possible thing that it needs to become a success; however it still dies a short lived death due to the lack of appropriate promotion strategies adopted by the organization. Family and Friends also play a major role these days in influencing consumers buying decision. This purely works on Word-To-Mouth Marketing, and companies can design some innovative strategies for Word-To-Mouth Communication. However, this still remains a secondary source of media that influences consumers. Internet has taken a major leap last couple of years, and youth is glued to the social networking sites most of the time.
Page 95
5 FINDINGS
The primary objective of the study was to Investigate consumer attitude, perception and buying behaviour towards the economy segment motorcycles in the domestic market. As I carried on with the research, the analysis performed has helped to reach out to the desired out. To understand the consumer behaviour, an exploratory research was performed, to understand the market scenario. Based on the facts procured and keeping the primary data into consideration, the following secondary objectives were chalked out:
To determine the consumer perception and choice towards different motorcycle brands and also determine the most preferred motorcycle in the economy segment.
y y y
To analyze various attributes consumers look for while making their purchase To examine whether income accounts for future purchasing preferences. To understand the impact of media on consumer buying behaviour and also zero in the most suitable means to promote the brand and products
The survey was conducted amongst 261 respondents keeping the target audience into consideration. The responses were taken exclusively from the males in an d around the Bangalore city. The average income of the sample size lies between Rs.10000-20000 per month which is appropriate for the target group being worked upon for this particular research which is confined to understand the consumer buying behaviour for economy segment motorcycles in the domestic market. 70% of the sample size is bachelor whereas 30% is married. A proper cross-tabulation has been done for respondents from both the categories, to understand the opinion and attitude of both the groups when it comes to consumer buying behaviour.
Page 96
Demographic vitals play an important role to understand the consumer behaviour. Age being one of the most important parameter, majority of the sample size belongs to the age group of 30 and above. This particular target group synchronizes with the income they earn, and are willing make an economical investment, clearly, defining the demand in the market for economy segment motorcycles. Around 58% of the sample size owns a motorcycle. When cross-tabulated with the age and income they earn, people in the age group of 30 and above are the ones who own hav e a majority amongst the other age group. When surveyed, around 90% of the respondents are intending to buy a new motorcycle, irrespective of already owning one. When cross-tabulated age with are you intending to buy a new motorcycle, majority of the responses were from the age group of 31 and above, irrespective, of already owning one. Keeping the Indian social scenario in mind, this particular age group either belongs to the working class or rural business class, who when asked during the exploratory research, would only invest in something that is a good value for money, low on maintenance, and does not dig a hole in their pockets with the price tag. This particular analysis, clarifies that there is a massive demand for economical segment motorcycles in the market, the key is to identify the target audience well and position the products in such a way that the consumer is left with no other option but to go for it. Talking about the most preferred two-wheeler category in the market, without any doubt it has to be a motorcycle, with almost 85% of the respondents prefer to buy a motorcycle over any other format of a two-wheeler. A consumer will spend money on something only if he seeks value out of it. Majority of the respondents are willing to spend somewhere around Rs.40, 000-50,000 for buying a new motorcycle. A perfect fit for economy segment motorcycles. It can also be interpreted, that if people would want to buy a new motorcycle, they will mostly buy an economy segment motorcycle. On the other hand, there is still a good demand of motorcycles ranging from Rs. 60,000-80,000 as there are some amazing brands available in the executive segment as well.
Page 97
Age and spending cross-tabulation identified that the target group of the research is the one with majority who is willing to spend Rs. 40,000-50,000 for a new motorcycle. Thus, it explains the purchasing pattern of the consumers, i.e. how much are they willing to spend. Talking about the brand they have used, and brand they recognize, hero Honda stand s tall with maximum number of responses, followed by Bajaj and TVS. On the contrary, Yamaha and Honda have also started creating a buzz in the market with most of the youngsters following the brand and recognizing its motorcycles on the road and advertisem ents. When we talk about the importance of media in influencing the consumer buying behaviour, Newspapers/Magazines are still the most cherished and desired source of information and food for thought for the consumers. Although, it is a conventional mode, however keeping the Indian audience in mind Newspapers/Magazines are the best source to advertise the products. It is followed by TV/Radio, which means there is a large scope for advertisements and promotions in this particular mode to increase the publi c awareness. Often, it happens that a product has every possible thing that it needs to become a success; however it still dies a short lived death due to the lack of appropriate promotion strategies adopted by the organization. Family and Friends also play a major role these days in influencing consumer s buying decision. This purely works on Word -To-Mouth Marketing, and companies can design some innovative strategies for Word-To-Mouth Communication. However, this still remains a secondary source of media that influences consumers. Internet has taken a major leap last couple of years, and youth is glued to the social networking sites most of the time. Perhaps, a great opportunity and potential consumer base waits on the sites to be flooded with promotion s and information. To analyze various attributes consumers look for while making their purchase, the entire data of 261 respondents was segregated into two divisions. First, the respondents who do not own a motorcycle and intend to buy one. Their respons es have been recorded and analyzed separately. The attribute with the least mean is the one
Page 98
that is preferred the most. In this case, Mileage (2.38) is the attribute which has been ranked 1 by the respondents who do not own a motorcycle and intend to buy o ne. Mileage plays an important role in influencing a consumer s buying decision. Mileage is followed by Price (3.65) is the second most preferred attribute by the respondents who do not own a motorcycle and intend to buy one. Similarly Looks & Style (4.77) stand at number 3, when it comes to the preference of consumers according to the attribute. People in the age group of above 36 have a very stable and calm approach when they go ahead to buy a new bike. Majority of them just visit one showroom and make their decision, whereas, young people in the age group of 18-25 find it difficult to come to a decision by visiting one showroom, therefore, they end up visiting two or maximum 3 showrooms to make their final decision. With the help of factor analysis, it was figured out that there are three major components that accounts for the most important attributes in an economy segment motorcycle. Since they have been conglomerated a specific name can be defined for these three components and they can be used during the New Product Development (NPD) and be prioritised according to the needs and demands in the market. So, these components can be worked upon collectively or individually and probably can be useful for the organization as they go on with their marketing plans and design new strategies for the same. As per the data obtained and analyzed on the basis of the mean ranks given by the respondents to their most preferred economy segment motorcycle amongst the given list in the questionnaire, the following con clusion can be drawn. The above listed motorcycles in the pie-chart are the most preferred economy segment motorcycles in the market as of now. Hero Honda Splendor Hero Honda Splendor Plus TVS StaR City Industry Internship Report 2011 Page 99
Therefore, all objectives have been met keeping into consideration all the aspects, i.e. social, demographic and perception of the sample size.
Page 100
6 RECOMMENDATIONS
The research undergone simplifies a lot of ambiguity about the market and its dynamics in todays scenario. There is always a demand for a good product in the market. Consumers are generally not aware of what they are consuming. We can term it as the pompous tradition of the marketers, to keep the consumers blindfolded and flooding them with loads of options always so that they remain confused and keep downing whatever comes their way. However, TVS as an organization differs from the above statement. Although the letters TVS represent the initials of our founder, T V Sundaram lyengar, to us within TVS they have always stood for Trust, Value and Service. TVS enjoys an esteemed reputation in the Indian market and is known for its commitment, the company must leverage on this fact and flood the market with such economical segment products which caters the need of the masses and also satisfies them. During the exploratory research phase of the project, I observed that people in South India prefer a TVS motorcycle over any other eminent brand available in the market. Call it nepotism of soil or probably the proximity from the manufacturing unit, this does brings TVS motor into an advantageous position over the competitors. However, the irony is there has been no product differentiation as of now, which needs to be worked upon, by probably finetuning some selling strategies or the promotion strategies. TVS StaR City is a famous motorcycle in the economy segment, and it is giving a cut-throat competition to the legacy of Hero Honda Splendor. It has been able to change the perception of people about the most reliable motorcycle after Hero Honda Splendor. However, consumers are still unaware about TVS Sport. It has happened a lot of times when the greatest of the products just die as they fail to appeal the audience. An appropriate addressing of the audience is required and thus positioning it to the right audience is extremely important. According to the analysis, the target group is majorly an audience which is in the age group of 30-40 years, partly working class and partly rural business class, earning not more than 25000-35000 rupees per month. There requirements are minimal and they believe in true value for money. Certain areas can be worked upon like, Mileage and Price. If these two
Industry Internship Report 2011 Page 101
attributes are addressed to the correct audience with proper positioning and continuous promotions, a lot of difference can be made. One particular brand can become a flagship brand for the whole organization, just like TVS Apache.
Page 102
7 CONCLUSION
The research was performed to understand and analyze the consumer behaviour towards the economy segment motorcycles in the domestic market. The automobile market is massive with lots of R&D and NPD going on every day. In a country like India, two-wheelers are the life-line of Indian household. This study helped in understanding the market and also the opportunities that lies ahead for the companies. The research was started with an aim to achieve the desired objectives. Nothing was pre defined and it had to start from a scratch. Lot of secondary data was collected and analysed. Based on that, an exploratory research program was designed. A questionnaire was drafted, in order to get a general opinion of the respondents. Based on the responses, certain parameters were chalked-out. For example: preferences of consumers, identification of the target group, expectations and scope of the study. With the analysis of the exploratory data, and the guidance of our industry and faculty guides, a final close ended questionnaire was drafted, keeping into consideration the target group and their preferences that they are aware of. The survey was carried out pan Bangalore and some rural areas like anekal and attible, overall, the consumer behaviour research really teaches one the physiology of the consumers when we interact with them and record their reactions and demeanour with the flow of questions as well as the time consumed on each questionnaire. All these enactments of the respondents accounts to the consumer behaviour which apparently cannot be quantified. After a thorough assessment of the data collected, it was compiled in the excel format and thus uploaded on SPSS for the analysis. Various tests were performed and each and every particular question was analysed in order to reach the desired objective. Cross-tabulations helped a lot in identifying a relation between the given data, which eventually elucidated a lot of ambiguity regarding the consumers buying preference. Being on the field and observing things were different when they were analyzed on the computer screen, however, the connect was made, and the objective to understand and determine the behaviour, attitude and perception was identified fruitfully.
Page 103
8 LEARNING OUTCOME
Consumer behaviour however, is a vast ocean and is a never ending learning process. Never the less, this project brought me closer to the ground reality of the market and its dynamics. From being a layman to the industry and finally ending up doing a consumer behaviour research for the same has definitely, broaden my learning curve and also the ability to adapt and work in the new environment. All in all, TVS experience was enriching as well as tiresome too. Reaching out to random people, breaking the ice, convincing them to give their responses was not as easy as expected; however, it did help me improve my interpersonal skills. A snapshot of learning outcome: 1. Working dynamics and characteristics of TVS Motor Company Ltd. 2. Understand the consumer buying behaviour and buying pattern. 3. Sales and Promotion practises adopted by TVS Motor Company Ltd. 4. Insights of Two-Wheeler industry. 5. Able to relate the theories studied (in marketing) to what is being practised in the industry.
Page 104
9 BIBLIOGRAPHY
y y y y y y y y
Page 105
10 A
ANNE URE I
QUESTIONNAIRE NAME AGE OCCUPATION: INCOME LE EL PER ANNUM: a) 30000-45000 b) 46000-60000 c) 61000-75000 d) 76,000-100000 e) 100000 and above
QUES:) Which brand of motorcycle do you own? a) Hero Honda b) Bajaj c) TVS d) Others
QUES:) How old is your bike? I ustr I t r shi R ort 2011 P 106
a) b) c) d)
QUES:) What motivated you to purchase your current motorcycle? a) Advertisements b) Family & friends c) Brand Affinity d) Word-of-Mouth e) Peer Pressure f) Others QUES:)What was your top-most priority when you purchased your motorcycle Please rate them out of 1 to 5? a) Fuel efficiency b) Looks and style c) Performance d) Mileage e) Brand Image f) Maintenance cost QUES:) What is the current mileage of your motorcycle? Please specify ( ) Kms/litre
QUES:) How do you measure the mileage of your motorcycle? a) Approximation b) Resetting the meter QUES:) Are you satisfied with the mileage of your bike? a) Yes b) No
Industry Internship Report 2011 Page 107
c) Maybe QUES:) If no what is the reason? a) b) c) d) e) f) More than one user Over-promise by the company Over-Weight Bad Quality of tyres Poor Shock-Absorbers Others ( ) please specify
QUES:) What price segment does your motorcycle fall in? a) Low price b) Medium price c) High price ( 35,000 - 40,000 ) ( 40,000 55,000 ) ( 55,000 and above )
QUES:) What Price did you intend to spend on your bike? a) 35,000 -40,000 b) 40,000 -55000 c) 55000 and above QUES:) What is the colour of your motorcycle? Please specify ( )
QUES:) Did you request the dealer for the colour? a) Yes b) No QUES:) How many service centers do you know for your motorcycle? a) 0 b) 1 c) 2 d) 3
Industry Internship Report 2011 Page 108
QUES:) How often your motorcycle needs services and maintenance? a) After every 1 month b) After every 2 months c) After every 3 months d) More than 3 months
QUES:) What kind of service do you generally opt for? a) b) c) d) e) f) Over-all service Carburettor and Air-filter wash Engine Oil replacement Air pressure and alignment General wash and oiling Others
QUES:) What is the approximate cost of services and maintenance that you spend every year? Please specify Rs. ( )
QUES:) Do you think the maintenance cost is high? a) b) c) d) e) Strongly disagree Disagree Neutral Agree Strongly agree
QUES:) If, strongly agree, then what is the reason? a) b) c) d) e) f) Frequent Foot peg problem Poor Quality of tyre and tubes Poor shock absorbers Clutch handling problem Frequent Lightning and horn problems Frequent Battery and spark plug problems
Page 109
QUES:) Which type of service centers you use? a) Authorized Service Station b) Local Service Station c) Depending upon situation
QUES:) What is the reason for such a decision? a) Cost b) Availability c) Reliability QUES:) What engine does your motorcycle has? a) DTSi engine b) CVTi engine c) I dont know QUES:) Mark Yes if your motorcycle has a) Twin sparks b) Carburetored engine c) Digital speedometer d) Halogen bulbs e) Disc brakes f) High resolution stickers g) Electric automatic self start h) Alloy wheels i) Puncture resistant tyres QUES:) What do you like the most about your bike? a) Style
Industry Internship Report 2011 Page 110
b) c) d) e) f)
QUES:) Is there anything which you dont like in your bike? ( ) Please specify
QUES:) What is the impact of different types of media while purchasing a motorcycle?
a) High Impact b) Medium Impact c) Low Impact QUES:) Do u think its important? a) Yes b) No c) Maybe QUES:) Rank the following media options according to your preference? a) b) c) d) e) f) g) h) i) j) k) Newspapers Magazines Brochures Posters Hoardings Billboards Television Radio & F.M Internet Flyers Others ( ) Please specify
QUES:) Rank the following newspapers according to your convenience? a) Times of India
Industry Internship Report 2011 Page 111
b) c) d) e) f) g) h)
Hindustan Times The Hindu Deccan Herald Economic Times Statesman Indian Express The Telegraph
QUES:) Rank the following magazines according to your preference? a) b) c) d) e) f) g) h) i) j) k) Filmfare magazine Womans era magazine Femina magazine Front line magazine India today magazine Outlook magazine The Week magazine Overdrive magazine Top gear magazine The 4 Ps magazine Others ( ) Please specify
QUES:) Rank the following Television channels according to your preference? a) b) c) d) e) f) g) h) i) j) k) l) NDTV MTV CHANNEL [V] STAR SPORTS STAR CRICKET TEN SPORTS ESPN SONY SET MAX STAR PLUS ZEE TV DISCOVERY
QUES:) What programs do you love watching on television? ( ) Please specify with a reason
QUES:) Mark Yes to all the social networking sites you are associated with? a) Facebook b) Twitter
Industry Internship Report 2011 Page 112
c) d) e) f) g) h) i) j) k) l)
My space Orkut Ibibo Tribe.Net WAYN Hi 5 Yahoo Gmail Rediff Others ( ) Please specify
QUES:) In 24 hours how much time do you spend on the following media? Please specify the time spent a) Print media(newspapers , magazines etc ) b) Electronic media ( TV, Radio , Internet etc ) c) Social media ( word of mouth etc) [ ] hours [ ] minutes [ ] hours [ ] minutes [ ] hours [ ] minutes
QUES:) Do you recall coming across a Motorcycle commercial in the past month? a) Yes b) No
QUES:) What makes you remember the commercial? a) b) c) d) e) f) g) The Brand ambassador The Jingle The slogan and Tagline The appearances and characters of the advertisement The theme The message delivered Others ( ) Please specify
QUES:) Which advertisement comes in your mind when you think about motorcycles ? ( ) Please specify
QUES:) Have you ever disliked any motorcycle advertisement, Please answer giving a specific reason to why you did not like it? ( )
Page 113
QUES:) Do you think resale value is also a parameter behind the purchasing decision? a) Yes b) No c) Maybe
QUES:) Please mark yes if you are aware of the following brands of motorcycles? a) Hero Honda b) TVS c) Bajaj d) Yamaha e) Honda f) Royal Enfield g) Mahindra h) Suzuki [ [ [ [ [ [ [ [ ] ] ] ] ] ] ] ]
QUES:) Please rank each brand in terms of your preference (place 1 by your first choice, 2 by your second choice and so on). a) Hero Honda b) TVS c) Bajaj d) Yamaha e) Honda f) Royal Enfield
Industry Internship Report 2011 Page 114
g) Mahindra h) Suzuki
QUES:) Are you aware of the Economy segment motorcycles? a) Yes b) No c) Maybe QUES:) Mark yes if you have heard, seen or driven the following bikes? a) b) c) d) e) f) g) h) i) j) k) l) m) n) o) p) q) TVS STAR CITY 110 TVS SPORTS 100 TVS JIVE 110 HERO HONDA SPLENDOR 100 HERO HONDA SPLENDOR NXG HERO HONDA PASSION PLUS HERO HONDA PASSION PRO HERO HONDA CD DAWN HERO HONDA CD DELUXE BAJAJ DISCOVER 100 BAJAJ DISCOVER 125 BAJAJ PLATINA HONDA CB TWISTER 110 SUZUKI SLING SHOT 125 YAMAHA YBR 110 YAMAHA SS 125 MAHINDRA STALLIO 110
QUES :) Rate out of 1 to 5(place 5 by your best choice, 4 by your second choice and so on) TAKING THE ABOVE MENTIONED BIKES INTO CONSIDERATION. PARAMETERS HERO HONDA Price Reliability BAJAJ TVS HONDA SUZUKI MAHINDRA YAMAHA
Page 115
QUES:) Please rate TVS star city and sports by checking the line that best corresponds to your evaluation of each item listed? TVS STAR CITY Slow pickup_ _ _ _ _ Fast pickup Bad design _ _ _ _ _ Good design Low price_ _ _ _ _ High price Low maintenance cost _ _ _ _ _ High maintenance cost Low mileage _ _ _ _ _ High mileage
TVS SPORTS Slow pickup_ _ _ _ _ Fast pickup Bad design _ _ _ _ _ Good design Low price_ _ _ _ _ High price Low maintenance cost _ _ _ _ _ High maintenance cost Low mileage _ _ _ _ _ High mileage
a) b) c) d)
Cash payment Loan from the bank Gift from family or friends Others ( ) Please specify
QUES :) If you got your motorcycle financed ( loan from the bank ) how much did you pay each month?
a) b) c) d)
Rs. 1000-1500 Rs. 1600-2000 Rs. 2100-2500 Rs. 2600 and above
QUES:) Are TVS star city and TVS Sports TV and Print commercials appealing? a) Strongly disagree b) Disagree c) Neutral d) Agree e) Strongly agree
QUES) If you strongly disagree, what makes you feel that the commercials are not appealing? ( )
QUES:) Rate out of 1 to 5 on technical specifications (place 5 by your best choice, 4 by your second choice and so on) REFER TO THE MOTORCYCLES OF THE ECONOMY
Industry Internship Report 2011 Page 117
SEGMENT MENTIONED ABOVE ( TVS star city , Hero Honda splendor and passion, Bajaj discover , Suzuki sling shot, Honda CB twister, Mahindra stallion in specific ). PARAMETERS HERO HONDA Engine Power Ignition Brakes Ground Clearance Fuel Capacity Wheel Base Seat Height Battery Weight BAJAJ TVS HONDA SUZUKI MAHINDRA YAMAHA
QUES:) Rate out of 1 to 5 on style (place 5 by your best choice, 4 by your second choice and so on) REFER TO THE MOTORCYCLES OF THE ECONOMY SEGMENT MENTIONED ABOVE (TVS star city , Hero Honda splendor and passion, Bajaj discover , Suzuki sling shot, Honda CB twister, Mahindra stallion in specific ).
Page 118
Handle bars Fuel tank Mud guard Side panel Foot pegs Seating Exposed engine Side mirrors Indicators Head lamp Horn Number placement Finishing Alloy wheels Leg guard Plate view
QUES:) Rate out of 1 to 5 on Accessories (place 5 by your best choice,4 by your second choice and so on) REFER TO THE MOTORCYCLES OF THE ECONOMY SEGMENT MENTIONED ABOVE ( TVS star city , Hero Honda splendor and passion, Bajaj discover , Suzuki sling shot, Honda CB twister, Mahindra stallion in specific )
PARAMETERS HERO
Page 119
HONDA Mobile charger Bottle Holder Helmet Hanger Trunk Windscreen Tool Kit Luggage Rack
QUES:) Would your next motorcycle be a TVS star city or TVS Sports? 1 Yes 2 No 3 Maybe
ANNEXURE II
Page 120
3. What according to you is the most important attribute while purchasing a particular motorcycle?
5. If youre planning to buy a new motorcycle, how much do you intend to spend?
6. Would you prefer to buy a motorcycle of your favourite colour? Even if you have to spend more?
7. Would you like to go for a loan while purchasing your new motorcycle?
8. Do you think resale value is also a parameter behind the purchasing decision?
Page 121
9. Would you like to go for an expensive motorcycle with amazing looks and style and low on mileage or would you like to buy a decently stylish and modern motorcycle with a good mileage at an economical price?
MEDIA
10. What is the impact of media while purchasing a motorcycle do you think its important.
A-List the newspapers according to your preference and convenience? B- List the TV channels which you love watching the most? C-Which all social networking sites are you associated with, list the first 3?
11. Which is your favourite motorcycle commercial which you remember? And what is the reason for its recall?
12. Do you think TVS commercials are appealing? If no what is the reason for it? Give separate views for different modes of media?
CONSUMER
PERCEPTION
ANALYSIS
ON
ECONOMY
SEGMENT
MOTORCYCLES 13. How many economy segment motorcycles are you aware of list few?
14. Taking technical specifications like Engine, brakes, fuel capacity, seat height, battery and weight where you would rate the following Hero Honda, Bajaj, Yamaha, TVS, Mahindra, Suzuki. Mention by giving a reason to it?
Industry Internship Report 2011 Page 122
15. Taking style and looks(Handle bars, Fuel tank, side panel , mud- guard, seats, indicators and head lamp) into consideration which brand do you think is the best?
16. What are the new features that you are aware of in the economy segment motorcycles (example self start, alloy wheels etc)?
17. Which motorcycle do you like the most and you want to buy in the economy segment bikes? What is the reason for it?
18. What is you perception about TVS motorcycles, Do you wish to buy one in future? If yes why and if no what is the reason?
19. What according to you a motorcycle of economy segment should ideally have?
ANNEXURE III
Page 123
: ______________________ : ______________________ : ______________________ : ______________________ : ______________________ Married ( ) Bachelor ( ) Tick mark the right option
Q3- Which two-wheeler would you purchase in future? V. VI. (a) Motor bike ) (d) Cant say ( ) (b) Scooter (e) ( ) (c) Electric bike ( ) (
( )
Q4- If motorcycle, then how much are you willing to spend on a motorcycle in future? (a) Less than 30,000 [ ] (d) 50,001-60,000 [ ] (b) 30,001-40,000 [ ] (e) 60,001 -80,000 [ ] (c) 40,001 -50,000 [ ] (f) More than 80,000 [ ]
Q5- How do you intend to purchase your motorcycle in future? e) f) g) h) Cash payment Loan from the bank Gift from family or friends Others ( ) Please specify
Page 124
Q6- Which was the last brand of motorcycle used by you? (a) Hero Honda (c) TVS (e) Suzuki (g) Mahindra ( ( ( ( ) ) ) ) (b) Bajaj (d) Honda (f) Royal Enfield (h) Yamaha ( ( ( ( ) ) ) )
(i) Others (Please specify) _______________ Q7- How do you learn about a particular motorcycle before buying it? (a) (b) (c) (d) (e) (f) (g) Discussing with friends & family Watching TV and Reading newspaper commercials Doing an online Survey Discussing with the prevalent users Visiting different dealers and personally gathering information By test drive Others( Please specify)
Q8 Rank the following attributes of the bike as per your preference? Mark 1 against the most important attribute and 10 against the least important attribute. ATTRIBUTES Price Mileage Style& looks Safety& control Resale Value Color Technology Speed & Performance Durability Maintenance cost RANK
Q9- You have collected information about the particular brand from which source? i) Newspaper &Magazines ( )`
Page 125
T.V. or Radio Internet Family, Friends Bill boards and pamphlets Others ( Please Specify)
( ( ( ( (
) ) ) ) )
Q10- How many showrooms do you visit before purchasing the motorcycle? I. II. III. IV. V. VI. Only 1 2 showrooms 3 showrooms More than 3 Twice the same showroom Others please specify
Q11- How important is PRICE to you when you are planning to purchase a new economy segment motorcycle? Please rank out of 1 to 5?
Strongly Disagree 1
Disagree 2
Neutral 3 4
Agree
Strongly Agree 5
Q12- How important is MILEAGE to you when you are planning to purchase a new economy segment motorcycle? Please rank out of 1 to 5? Strongly Disagree 1 Disagree 2 Neutral 3 4 Agree Strongly Agree 5
Q13- How important is LOOKS & STYLE to you when you are planning to purchase a new economy segment motorcycle? Please rank out of 1 to 5?
Page 126
Strongly Disagree 1
Disagree 2
Neutral 3 4
Agree
Strongly Agree 5
Q14- How important is LOW MAINTENANCE to you when you are planning to purchase a new economy segment motorcycle? Please rank out of 1 to 5? Strongly Disagree 1 Disagree 2 Neutral 3 4 Agree 5 Strongly Agree
Q15- How important is RESALE VALUE to you when you are planning to purchase a new economy segment motorcycle? Please rank out of 1 to 5? Strongly Disagree 1 Disagree 2 Neutral 3 4 Agree 5 Strongly Agree
Q16- Rank the following motorcycles in order of your preference? HONDA CB SHINE HERO HONDA SPLENDOR 100 TVS STAR CITY 110 HERO HONDA SPLENDOR NXG HERO HONDA PASSION PRO TVS SPORTS 100 BAJAJ DISCOVER 100 HERO HONDA PASSION PLUS TVS JIVE 110 HERO HONDA CD DAWN BAJAJ PLATINA HONDA CB TWISTER 110 SUZUKI SLING SHOT 125 BAJAJ DISCOVER 125 HERO HONDA CD DELUXE YAMAHA YBR 110 MAHINDRA STALLIO 110 YAMAHA SS 125
Industry Internship Report 2011 Page 127
Q17- Give a reason for your ranking in the above answer? __________________________________________________________________________ Dated_______________ Signature
WE THANK YOU FOR THE TIME THAT YOU HAVE INVESTED IN OUR QUESTIONNAIRE, YOUR VALUABLE OPINION AND SUPPORT IS OUR INSPIRATION.
Page 128