PROJECT REPORT OF

INTERNATIONAL BUSINESS
ENVIORNMENT ON

COMPARATIVE STUDY
OF
BAJAJ V/S HERO HONDA

SUBMITED TO SUBMITED BY
Ms. Rishu Sharma PULKIT
CHAWLA
VIJAY
ARYA
ANKIT
KUMAR
SANTO
SH KUMAR
VICKY
KUMAR

MBA 2ND Semester

1
NSB SCHOOL OF BUSINESS

Vs.

2
 ACKNOWLEDGEMENT

The research on “Comparative Study between Bajaj and Hero Honda” has
been given to me as part of the curriculum in 2-Years Masters Degree in Business
Administration.
I have tried my best to present this information as clearly as possible using basic
terms that I hope will be comprehended by the widest spectrum of researchers, analysts
and students for further studies.
I have completed this study under the able guidance and supervision of Ms. Rishu
Sharma I.will be failed in my duty if I do not acknowledge the esteemed scholarly
guidance, assistance and knowledge. I have received from them towards fruitful and
timely completion of this work.
Mere acknowledgement may not redeem the debt I owe to my parents for their
direct/indirect support during the entire course of this project.
.

PULKIT CHAWLA
VIJAY ARYA
ANKIT KUMAR
SANTOSH KUMAR
VICKY KUMAR

3
 INDEX
Sr No. Particulars Page no

1. OBJECTIVES

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

3. HISTORY OF HERO HONDA

- Board of Directors
- Company Profile

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

5. LIMITATION OF RESEARCH STUDY

6. ANALYSIS AND INTERPRETATION

7. CONCLUSION

8. RECOMMENDATION

9. BIBLIOGRAPHY

10. ANNEXURE

4
OBJECTIVES:-

1. To know the market share of Bajaj & Hero Honda.

2. To know the perception of customers regarding bikes.

3. To determine the customers satisfaction regarding bikes.

4. To determine the factors influencing the choice of customers regarding bikes.

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

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

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

6
Bajaj Auto

Bajaj Auto was one of the earliest two wheeler manufacturers in India and is now one of
the worlds largest two-wheeler and three-wheeler manufacturers.

MOTORCYCLES

Bajaj has redefined both the value and the premium segments
with its motorcycles offering unique features not seen in their
competitors in those classes.

The entry level Platina features push to cancel indicators, unique

throttle control, chrome graphics, fuel gauge and alloy wheels
which are not seen on more expensive executive class machines
of its competitors.

The Bajaj XCD 125 offers an excellent value proposition with

its larger engine, LED tail lamp and Digital meter at the price
point of 100cc vehicles from its competitors.

The Discover 135 is available in Disc and Drum brake variants falls between the
executive and premium segments and is ideal for those looking for a bit of additional
power without sacrificing too much on fuel effeciency. Recently a Sport variant has been
announced which is expected to hit the markets shortly.

In the premium segment the Bajaj range includes the Pulsar 150, 200 and 220cc variants
in the sports segment and the Avenger 200 in the cruiser segment.

SCOOTERS

With the launch of the Kristal, Bajaj Auto have reentered the autogeared scooter segment
and borrows a lot of technologies from the successful motorcycle range such as DTSi,
ExhausTec and SNS suspension.

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 PROFILE:
Founder Jamnalal Bajaj
Year of Establishment 1926
Industry Automotive - Two & Three Wheelers
Business Group The Bajaj Group
Listings & its codes BSE – Code: 500490; NSE - Code: BAJAJAUTO
Presence Distribution network covers 50 countries.
Dominant presence in Sri Lanka, Bangladesh, Columbia,
Guatemala, Peru, Egypt, Iran and Indonesia.
Joint Venture Kawasaki Heavy Industries of Japan
Registered & Head Office Akurdi
Pune - 411035
India
Tel.: +(91)-(20)-27472851
Fax: +(91)-(20)-27473398
Works • Akurdi, Pune 411035
• Bajaj Nagar, Waluj Aurangabad 431136

• Chakan Industrial Area, Chakan, Pune 411501

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

KEY PERSONS:
Board of Directors
Rahul Bajaj Chairman
Madhur Bajaj Vice Chairman & Whole-Time Director
Rajiv Bajaj Managing Director
Sanjiv Bajaj Executive Director
D.S. Mehta Whole-Time Director
Kantikumar R. Podar Director

8
Shekhar Bajaj Director
D.J. Balaji Rao Director
J.N. Godrej Director
S.H. Khan Director
Mrs. Suman Kirloskar Director
Naresh Chandra Director
Nanoo Pamnani Director
Manish Kejriwal Director
P Murari Director
Niraj Bajaj Director

Committees of the Board

Audit Committee
S.H. Khan Chairman
D.J. Balaji Rao
J.N. Godrej
Naresh Chandra
Nanoo Pamnani

Shareholders’ & Investors’ Grievance committee

D.J. Balaji Rao Chairman
J.N. Godrej
Naresh Chandra
S. H. Khan

Remuneration committee
D.J. Balaji Rao Chairman
S.H. Khan
Naresh Chandra

Registered under the Indian Companies Act, VII of 1913

REGISTERED OFFICE Akurdi, Pune 411 035
WORKS Akurdi, Pune 411 035
Bajaj Nagar, Waluj Aurangabad 431 136
Chakan Industrial Area, Chakan, Pune 411 501

9
Bajaj Autos Ltd.
Bajaj Auto Limited

Type Public
Founded 1945
Headquarters Pune, India
Key people Rahul Bajaj (Chairman)
Rs. 1,01,063 billion (2006) or USD
Revenue
1.87 billion
Net income Rs. 17,016 billion
Employees ???
Website www.bajajauto.com

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

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

• 8 References

Company's history
Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading
Corporation Private Limited. It started off by selling imported two- and three-wheelers in

10
India. In 1959, it obtained license from the Government of India to manufacture two- and
three-wheelers and it went public in 1960. In 1970, it rolled out its 100,000th vehicle. In
1977, it managed to produce and sell 100,000 vehicles in a single financial year. In 1985,
it started producing at Waluj in Aurangabad. In 1986, it managed to produce and sell
500,000 vehicles in a single financial year. In 1995, it rolled out its ten millionth vehicle
and produced and sold 1 million vehicles in a year.

Timeline of new releases

• 1971 - three-wheeler goods carrier

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

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

Scooters
o Bajaj Sunny
o Bajaj Chetak
o Bajaj Cub
o Bajaj Super
o Bajaj Wave
o Bajaj Legend

Motorcycles
o Kawasaki Eliminator
o Bajaj Pulsar
o Bajaj Kawasaki Wind 125

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 o Bajaj Boxer
o Bajaj CT 100
o Bajaj Platina
o Bajaj Caliber
o Bajaj Discover
o Bajaj Avenger

Upcoming Models
• Bajaj Pulsar 220 DTS-Fi
• Bajaj Krystal
• Bajaj Blade
• Bajaj Sonic

New Image
The company, over the last decade has successfully changed its image from a scooter
manufacturer to a two wheeler manufacturer, product range ranging from Scooterettes to
Scooters to Motorcycle. Its real growth in numbers has come in the last 4 years after
successful introduction of a few models in the motorcycle segment.

The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.

DETAILS OF SOME BIKES OF BAJAJ

Bajaj Platina
Style and fuel economy at a bargain price. The Bajaj Platina offers features not yet
found on more expensive models in the 100cc range

12
 Using the 97.2cc, 8.2BHP powerplant that does duty on the CT100 the Bajaj Platina
gives excellent mileage.

Alloy Wheels and chrome decals make it one of the best looking 100cc motorcycles
around.

Optoprism headlamp for better lighting and safety.

Spring in Spring rear suspension built to handle the rough Indian roads.

Price on Road
Individual : Rs. 39,500
Company : Rs. 44,350
Fuel Efficiency (Kmpl)
City : 60 +/- 10%
Normal : 70 +/- 10%
Delivery Time
3 to 7 Days

Bajaj Discover 135 ES

Add some big bike muscle without breaking the bank with the Bajaj Discove 135.
With over 13BHP on tap, Disc brakes and broad rubber this is a mean machine.

The bike is fully equipped with a self start, front disc brakes, six spoke alloy wheels
and a tachometer

Improved handling thanks to gas charged rear shock absorbers and a broad 100/90
rear tyre.

Price on Road
Individual : Rs. 57,600

13
Company : Rs. 64,800
Fuel Efficiency (Kmpl)
City : 45 +/- 10%
Normal : 60 +/- 10%
Delivery Time
2 to 4 Days

Bajaj Pulsar 150 ES DTSi Upgrade

The Pulsar 150 in its latest avtaar sports alloy wheels, digital meters, led tail lamps
and sporty side cowls along with a revised gear box and retuned engine.

Power output has been upped to 13.9 BHP with torque figures also going up to 12.76
Nm

5 Speed gearbox now with the standard one down rest up pattern.

Digital speedo console with dual trip meters and over rev warning.

Gas charges Nitrox shock absorbers aid handling

Price on Road
Individual : Rs. 67,550
Company : Rs. 76,100
Fuel Efficiency (Kmpl)
City : 45 +/- 10%
Normal : 55 +/- 10%

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Delivery Time
2 to 4 Days

Bajaj Pulsar 200 DTSi

Powered by the smoothest engine of the Bajaj Pulsar range with perhaps the most
attractive looks in the Pulsar range this performance motorcycle never fails to
impress.

Delivering almost 20 BHP the engine delivers great performance without seeming
stressed.

Gas filled shock absorbers and broad tubeless tyres and a well sorted chassis make
for excellent handling.

Price on Road
Individual : Rs. 81,050
Company : Rs. 90,850
Fuel Efficiency (Kmpl)
City : 30 +/- 10%
Normal : 40 +/- 10%
Delivery Time
7 to 15 Days

15
Bajaj Pulsar 220 DTS Fi

With the Pulsar 220 the engineers at Bajaj Auto have pushed the envelope and
introduced the Indian motorcycle market to the world of performance biking.

The 20PS engine has fuel injection for optimum performance.

Oil cooler keeps the oil maintain the right viscosity for better lubrication.

Front and rear disc brakes, tubeless tyres and powerful headlights for improved
safety.

Price on Road
Individual : Rs. 98,150
Company : Rs. 110,100
Fuel Efficiency (Kmpl)
City : 30 +/- 10%
Normal : 40 +/- 10%
Delivery Time
7 to 15 Days

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Bajaj Avenger 200

Put your feet up and relax, enjoy the padded seat and watch the scenery as you eat
the miles away.

Featuring a slightly detuned version of the 200cc powerplant that does duty in the
Pulsar 200 this bike develops a healthy 17.5 PS.

Oil cooler ensures that the lube retains its optimum viscosity for longer engine life
and performance.

Broad tyres and disc brakes for a safe and steady ride.

Price on Road
Individual : Rs. 78,550
Company : Rs. 88,100
Fuel Efficiency (Kmpl)
City : 30 +/- 10%
Normal : 40 +/- 10%
Delivery Time
7 to 15 Days

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18
 India has the largest number of two wheelers in the world with 41.6 million
vehicles. India has a mix of 30 percent automobiles and 70 percent two wheelers in the
country. India was the second largest two wheeler manufacturer in the world starting in
the 1950’s with the birth of Automobile Products of India (API) that manufactured
scooters. API manufactured the Lambrettas but, another company, Bajaj Auto Ltd.
surpassed API and remained through the turn of the century from its association with
Piaggio of Italy (manufacturer of Vespa).

The license raj that existed between the1940s to1980s in India, did not allow foreign
companies to enter the market and imports were tightly controlled. This regulatory maze,
before the economic liberalization, made business easier for local players to have a
seller’s market. Customers in India were forced to wait 12 years to buy a scooter from
Bajaj. The CEO of Bajaj commented that he did not need a marketing department, only a
dispatch department. By the year 1990, Bajaj had a waiting list that was twenty-six times
its annual output for scooters.

The motorcycle segment had the same long wait times with three manufacturers; Royal
Enfield, Ideal Jawa, and Escorts. Royal Enfield made a 350cc Bullet with the only four-
stroke engine at that time and took the higher end of the market but, there was little
competition for their customers. Ideal Jawa and Escorts took the middle and lower end of
the market respectively.

In the mid-1980s, the Indian government regulations changed and permitted foreign
companies to enter the Indian market through minority joint ventures. The two-wheeler
market changed with four Indo-Japanese joint ventures: Hero Honda, TVS Suzuki, Bajaj
Kawasaki and Kinetic Honda. The entry of these foreign companies changed the Indian
market dynamics from the supply side to the demand side. With a larger selection of two-
wheelers on the Indian market, consumers started to gain influence over the products they
bought and raised higher customer expectations. The industry produced more models,
styling options, prices, and different fuel efficiencies. The foreign companies new
technologies helped make the products more reliable and with better quality. Indian
companies had to change to keep up with their global counterparts..

Hero Honda has a wide variety of models ranging from the CD Deluxe in the value for
money market to the recently upgraded Karizma R which has set the new norm in the
performance segment.

Old favourites like the Splendor + and Passion + have been upgraded and joined by
variants such as the Splendor NXG.

In the growing 125cc segment the Super Splendor and Glamour sport the new 125cc
Quantum Core engine and are gaining popularity.

The Hero Honda CBZ Xtreme and its sibling the Hunk compete with each other in the
performance segment.

19
BOARD OF DIRECTORS
No. Name of the Directors
1 Mr. Brijmohan Lall Munjal
2 Mr. Pawan Munjal
3 Mr. Toshiaki Nakagawa
4 Mr. Takao Eguchi
5 Mr. Satyanand Munjal
6 Mr. Om Prakash Munjal
7 Mr. Tatsuhiro Oyama
8 Mr. Masahiro Takedagawa
9 Mr. Narinder Nath Vohra
10 Mr. Pradeep Dinodia
11 Gen.(Retd.) Ved Prakash Malik
12 Mr. Analjit Singh
13 Dr. Pritam Singh
14 Ms. Shobhana Bhartia
15 Dr. Vijay Laxman Kelkar
Hero Honda Motorcycle Ltd.
Type Public company BSE:HEROHONDA M
Designation
Chairman & Whole-time Director
Managing Director
Jt. Managing Director
Whole-time Director
Non-executive Director
Non-executive Director
Non-executive Director
Non-executive Director
Non-executive & Independent Director
Non-executive & Independent Director
Non-executive & Independent Director
Non-executive & Independent Director
Non-executive & Independent Director
Non-executive & Independent Director
Non-executive & Independent Director
20
Founded January 19, 1984 in Gurgaon, Haryana, India
Headquarters Haryana, India
Om Prakash Munjal, Founder

Mr. Brijmohan Lall Munjal, Chairman

Key people Mr. Toshiaki Nakagawa, Joint Managing
Director

Mr. Pawan Munjal, Managing Director

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

HERO HONDA HEADQUARTERS

Hero Honda Motorcycles Limited is an Indian manufacturer of motorcycles and

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

Contents

21
 • 1 Models
o 1.1 Bikes
• 2 Company Profile
o 2.1 Just-in-Time
o 2.2 Ancillarisation
o 2.3 Dealer Network
o 2.4 Financial Planning
o 2.5 Quality
o 2.6 Diversification
• 3 External links

[ Models ]
Bikes

• Hero Honda Splendor Plus

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

Hero Honda "Splendor" Model

[ Company Profile ]

22
“Hero”, is the brand name used by the Munjal brothers in the year 1956 with the flagship
company Hero Cycles. The two-wheeler manufacturing business of bicycle components
had originally started in the 1940’s and turned into the world’s largest bicycle
manufacturer today. Hero, is a name synonymous with two-wheelers in India today. The
Munjals roll their own steel, make free wheel bicycle critical components and have
diversified into different ventures like product design. The Hero Group philosophy is:
“To provide excellent transportation to the common man at easily affordable prices and to
provide total satisfaction in all its spheres of activity”. The Hero group vision is to build
long lasting relationships with everyone (customers, workers, dealers and vendors). The
Hero Group has a passion for setting higher standards and “Engineering Satisfaction” is
the prime motivation, way of life and work culture of the Group.

In the year 1984, Mr. Brijmohan Lal Munjal, the Chairman and Managing Director of
Hero Honda Motors (HHM), headed an alliance between the Munjal family and Honda
Motor Company Ltd. (HMC). HHM Mission Statement is: “We, at Hero Honda, are
continuously striving for synergy between technology, systems, and human resources to
provide products and services that meet the quality, performance, and price aspirations of
our customers. While doing so, we maintain the highest standards of ethics and societal
responsibilities, constantly innovate products and processes, and develop teams that keep
the momentum going to take the company to excellence in the new millennium”. This
alliance became one of the most successful joint ventures in India, until the year 1999
when HMC had announced a 100% subsidiary, Honda Motorcycle & Scooter India
(HMSI). This announcement caused the HHM stock price to decrease by 30 percent that
same day. Munjal had to come up with some new strategic decisions as, HMSI and other
foreign new entry companies were causing increased intensity of rivalry for HHM.

== Growth == The business growth of Hero Honda has been phenomenal throughout its
early days. The Munjal family started a modest business of bicycle components. Hero
Group expanded so big that by 2002 they had sold 86 million bicycles producing 16000
bicycles a day. Today Hero Honda has an assembly line of 9 different models of
motorcycles available. It holds the record for most popular bike in the world by sales for
Its Splendor model. Hero Honda Motors Limited was established in joint venture with
Honda Motors of Japan in 1984, to manufacture motorcycles. It is currently the largest
producer of Two Wheelers in the world. It sold 3 million bikes in the year 2005-2006.
Recently it has also entered in scooter manufacturing, with its model PLEASURE mainly
aimed at girls. The Hero Group has done business differently right from the start and that
is what has helped them to achieve break-through in the competitive two-wheeler market.
The Group's low key, but focused, style of management has earned the company plaudits
amidst investors, employees, vendors and dealers, as also worldwide recognition.

The growth of the Group through the years has been influenced by a number of factors:

[ Just-in-Time ]

23
The Hero Group through the Hero Cycles Division was the first to introduce the concept
of just-in-time inventory. The Group boasts of superb operational efficiencies. Every
assembly line worker operates two machines simultaneously to save time and improve
productivity. The fact that most of the machines are either developed or fabricated in-
house, has resulted in low inventory levels. In Hero Cycles Limited, the just-in-time
inventory principle has been working since the beginning of production in the unit and is
functional even till date.. This is the Japanese style of production and in India; Hero is
probably the only company to have mastered the art of the just-in-time inventory
principle.

[ Ancillarisation ]

An integral part of the Group strategy of doing business differently was providing
support to ancillary units. There are over 300 ancillary units today, whose production is
dedicated to Hero's requirements and also a large number of other vendors, which include
some of the better known companies in the automotive segment. Employee Policy:

Another Striking feature within the Hero Group is the commitment and dedication of its
workers. There is no organized labor union and family members of employees find ready
employment within Hero. The philosophy with regard to labor management is "Hero is
growing, grow with Hero." When it comes to workers' benefits, the Hero Group is known
for providing facilities, further ahead of the industry norms. Long before other companies
did so, Hero was giving its employees a uniform allowance, as well as House Rent
Allowance (HRA) and Leave Travel Allowance (LTA). Extra benefits took the form of
medical check-ups, not just for workers, but also for the immediate family members.

[ Dealer Network ]

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

[ Financial Planning ]

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

[ Quality ]

24
Quality at Hero is attained not just by modern plants and equipment and through latest
technology, but by enforcing a strict discipline. At the Group factories, attaining quality
standards is an everyday practice - a strictly pursued discipline. It comes from an
amalgamation of the latest technology with deep-rooted experience derived from nearly
four decades of hard labor. It is an attitude that masters the challenge of growth and
change - change in consumers' perceptions about products and new aspirations arising
from a new generation of buyers.

Constant technology up gradation ensures that the Group stays in the global mainstream
and maintains its competitive edge. With each of its foreign collaborations, the Group
goes onto strengthen its quality measures as per the book. The Group also employs the
services of independent experts from around the world to assist in new design and
production processes.

[ Diversification ]

Throughout the years of enormous growth, the Group Chairman, Mr. Lall has actively
looked at diversification. A considerable level of backward integration in its
manufacturing activities has been ample in the Group's growth and led to the
establishment of the Hero Cycles Cold Rolling Division, Munjal and Sunbeam Castings,
Munjal Auto Components and Munjal Showa Limited amongst other component-
manufacturing units.

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

The Hero Group also took a venture into other segments like exports, financial services,
information technology, which includes customer response services and software
development. Further expansion is expected in the areas of Insurance and
Telecommunication.

The Hero Group's phenomenal growth is the result of constant innovations, a close watch
on costs and the dynamic leadership of the Group Chairman, characterized by a culture of
entrepreneurship, of right attitudes and building stronger relationships with investors,
partners, vendors and dealers and customers

DETAILS OF SOME BIKES OF HERO HONDA

25
Hero Honda Splendor Plus
The world best selling motorcycle keeps its commitment of a trouble free, economical
commuter.
The Splendor Plus is constantly evolving and features bright multi-reflector headlight, tail
light and indicators for improved safety.
Die Cast Alloy wheels are now standard and the updated graphics provide a
contemporary look to this proven performer.
Price on Road
Individual : Rs. 49,550
Company : Rs. 56,350
Fuel Efficiency (Kmpl)
City : 60 +/- 10%
Normal : 75 +/- 10%
Delivery Time
4 to 7 Days

26
Hero Honda Passion Plus
One of the most attractive bikes in the executive segment the Passion Plus integrates
the proven 100cc power mill of the Splendor in a body that exudes style.

The Passion Plus has always been a stunner with its two tone graphics, body
coloured mirrors and large instrument cluster.

New bright multi-reflector headlight, tail light and indicators provide improved
safety while the updated graphics and black finish alloy wheels and engine provide a
contemporary look to this proven performer.

Price on Road
Individual : Rs. 51,300
Company : Rs. 58,250
Fuel Efficiency (Kmpl)
City : 55 +/- 10%
Normal : 70 +/- 10%
Delivery Time
4 to 7 Days

Hero Honda Passion Plus

One of the most attractive bikes in the executive segment the Passion Plus integrates
the proven 100cc power mill of the Splendor in a body that exudes style.

The Passion Plus has always been a stunner with its two tone graphics, body
coloured mirrors and large instrument cluster.

27
 New bright multi-reflector headlight, tail light and indicators provide improved
safety while the updated graphics and black finish alloy wheels and engine provide a
contemporary look to this proven performer.

Price on Road
Individual : Rs. 51,300
Company : Rs. 58,250
Fuel Efficiency (Kmpl)
City : 55 +/- 10%
Normal : 70 +/- 10%
Delivery Time
4 to 7 Days

Hero Honda Hunk

Muscular styling and aggressive lines matched with a powerful 14.2 PS engine mqke
for an attractive machine.

Gas filled shock absorbers provide excellent suspension and great handling.

Three dial instrument console has painted dials that match the muscular over all
sporty styling of the bike.

Price on Road
Individual : Rs. 68,100
Company : Rs. 77,050
Fuel Efficiency (Kmpl)
City : 40 +/- 10%

28
Normal : 50 +/- 10%
Delivery Time
4 to 7 Days

Hero Honda Pleasure

Easy to handle and attractively packaged this scooter from Hero Honda has
tremendous appeal for ladies.

102cc engine with excellent reliability and adequate power for most applications.

Light weight ABS body in a wide variety of attractive colours.

Body coloured mirrors and large speedo console add to the looks.

Tuffup tube that immediately seals the tube in case of a puncture.

Price on Road
Individual : Rs. 44,150
Company : Rs. 49,400
Fuel Efficiency (Kmpl)
City : +/- 10%
Normal : +/- 10%
Delivery Time
15 to 20 Days

29
Hero Honda Splendor NXG
The new generation Splendor NXG has more contemporary styling and increased power
output backed by impeccable pedigree.
The engine has been fine tuned and now delivers 7.7PS without sacrificing on mileage.
Smart angular fairing, sporty tank lines and attractive 5 spoke cast alloy wheels add to the
attractive styling of the motorcycle.
Price on Road
Individual : Rs. 48,700
Company : Rs. 55,250
Fuel Efficiency (Kmpl)
City : 60 +/- 10%
Normal : 75 +/- 10%
Delivery Time
4 to 7 Days

30
Hero Honda Karizma R

Easily the most comfortable big bike in India the Karizma is a great motorcycle to
eat away the miles.

The 223cc engine develops 17 BHP and is super smooth through the rev range.
Aided by a refined gearbox the powerplant never feels stressed.

A long wheelbase (1355 mm), good suspension and excellent brakes aid the stabiltiy
and handling of this motorcycle.

The speedo console housed in its attractive fairing features a digital speedometer,
trip meter and clock.

Price on Road
Individual : Rs. 87,100
Company : Rs. 98,050
Fuel Efficiency (Kmpl)
City : 30 +/- 10%
Normal : 40 +/- 10%
Delivery Time
7 to 10 Days

31
IMPACT OF RECESSION ON THE TWO WHEELER INDUSTRY

Two Wheelers registered minor growth of 1.85 % during April – December 2008.
However, Two Wheelers sales recorded 15.43 percent fall in December 2008 over the
same month last year. In two wheeler segment, Hero Honda has witnessed 10% fall
(215,931 units in Dec 2008) in sales as compared to December 2007 (240,532 units).
Bajaj Automobile has registered 33% fall in its over all two wheeler sells, compared to
last year. The company has reported 37% negative growth in bike sells.

Due to the recession, the medium class which is the ultimate target customer of the two
wheeler industry lost their job. So they started saving money and cancelled there plan of
taking the new vehicles, which affected the two wheeler industry as the production is
going on but the demand is short. In the above described record the two major firms in
this sector are facing problem regarding their sales.

It is sacrilege to say that the world economy has been undergoing with the huge crisis.
And automobile industry is not far behind in league. Undoubtedly, the coming time
would be a challenge for the automobile industry. Bike manufacturers have already
started facing the problems, loan & finance for new bike is not available easily in semi
urban & rural market. Banks and other financial institutions have baked out from finance.

The result of layoff due to the recession affected the whole world a lot and every sector is
facing the problem in form of declining sales. Indian auto mobile industry of no
exception is also affected by it. The car manufacturers are delaying their new product
launch and waiting for the condition of the economy to get stabilize so that they can
launch the new product.

Due to the shortage of demand the production is getting affected which is affecting the
industries so they are forced to opt for the cost cutting measures resulting in the layoff.

32
33
 RESEARCH METHODOLOGY

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

DATA SOURCE

Research included gathering both Primary and Secondary data. Primary data is
the first hand data, which are selected a fresh and thus happen to be original in character.
Primary Data was crucial to know various customers and past consumer views about
bikes and to calculate the market share of this brand in regards to other brands.
Secondary data are those which has been collected by some one else and which
already have been passed through statistical process. Secondary data has been taken from
internet, newspaper, magazines and companies web sites.

RESEARCH APPROACH

The research approach was used survey method which is a widely used method
for data collection and best suited for descriptive type of research survey includes
research instrument like questionnaire which can be structured and unstructured. Target
population is well identified and various methods like personal interviews and telephone
interviews are employed.

SAMPLING UNIT

It gives the target population that will be sampled. This research was carried in
Muktsar (Distt Muktsar)

These were 100 respondents.

DATA COMPLETION AND ANALYSIS

After the data has been collected, it was tabulated and findings of the project were
presented followed by analysis and interpretation to reach certain conclusions.

SCOPE

My project was based on the Comparative Study of Bajaj V/S Hero Honda and
data was taken in the City Muktsar only.

34
LIMITATIONS

35
1. Research work was carried out in one Distt of Punjab (MUKTSAR) only the finding
may not be applicable to the other parts of the country because of social and cultural
differences.

2. The sample was collected using connivance-sampling techniques. As such result may
not give an exact representation of the population.

3. Shortage of time is also reason for incomprehensiveness.

4. The views of the people are biased therefore it doesn’t reflect true picture.

36
Q1) Which bike do you have?
47

37
Hero Honda
Bajaj 38
Any other 15

Hero honda
Bajaj
Any other

Q2) Which Model do you Have?

Hero Honda Bajaj

Splender 21 CT 100 7
Passion 13 Discover 12
Karizma 7 Pulsar 11

38
 Any other 6 Any other 8

25

20 Hero Honda
No of Persons

Splender
15
Passion
10
Karizma
5 Any other

0
1
Model Nam e

14
12
Bajaj
No of Persons

10
CT 100
8
Discover
6
Pulsar
4
Any other
2
0
1
Model Nam e

Q3) In which family Income level do you Fall?

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

39
 50
40 100000-200000
No of Persons

30 200000-300000
20 300000-400000
10 above 400000

0
1
Income level

Q4) For how long do you own a bike?

0-1 year 34
1-2 year 29
2-3 year 26
above 3 year 11

40
 40

30
No of 0-1 year
20
Persons 1-2 year
10 2-3 year
0 above 3 year
1
No of years

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

Hero Honda Bajaj

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

41
 20

15
No of Persons

Hero Honda
10
Bajaj
5

0
Office Personal Joy Other
Purpose purpose Purpose
Purpose

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

Hero Honda Bajaj

Newspaper 4 2

Television 23 16

Magazine 2 1

42
Friends &
Relative 18 19

25

20
New spaper
No of Persons

15 Television
10 Magzine
Friends & Relative
5

0
Hero Honda Bajaj
Name of Company

Q7) Does Advertisement Influence your decision

in choosing a Motor Bike?

Yes 87%
No 5%
Cant say 8%

43
 Yes
No
Cant say

Q8) Do you have full knowledge about Bikes before

buying?

Hero Honda Bajaj

Yes 25 23

No 22 15

44
 30
25
No of persons

20
Yes
15
No
10
5
0
Hero Honda Bajaj
Com pany Nam e

Q9) Which Factor below Influence your decision?

Hero Honda Bajaj

Price 72% 78%

Mileage 78% 64%
Quality 65% 48%
Resale Value 40% 28%

45
Status symbol 10% 7%

100%

80% Price
No of Persons

Mileage
60%
Quality
40%
Resale Value
20% Status symbol

0%
Hero Honda Bajaj
Com pany Nam e

Q10) How would you rate the following factors of Bikes

with respect to different company?

Hero Honda Bajaj

Mileage 74% 72%

Price 68% 65%

46
Pick up 70% 80%
Maintenance 58% 62%
Look & Shape 85% 80%
Brand Image 53% 55%

100%
80% Mileage
No of Persons

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

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

Hero Honda Bajaj

Yes 19 21
No 17 14

47
Cant say 11 3

25

20
No of Persons

15 Hero Honda
10 Bajaj

0
Yes No Cant say
View s

48
Conclusion

49
1. Most of the Pulsar, CBZ & Karizma are purchased by young generation 18 to 30
because they prefer stylish looks and rest of the models of Hero Honda are purchased
more by daily users who needs more average of bikes than looks.
2. Hero Honda is considered to be most fuel-efficient bike on Indian roads.
3. Service & Spare parts are available throughout India in local markets also.
4. While buying a motorcycle, economy is the main consideration in form of
maintenance cost, fuel efficiency.
5. Majority of the respondent had bought their motorcycle more than 3 years.

50
 RECOMMENDATIONS

1. Bajaj should introduce some more models having more engine power.

2. Hero Honda should think about fuel efficiency in case of upper segment
bikes.

3. More service centers should be opened.

51
4. Maintenance cost and the availability of the spare parts should also be given
due importance.

5. They also introduce some good finance/discount schemes for students.

6. The price should be economic.

52
BIBLIOGRAPHY

1. www.herohonda.com

2. www.google.com

53
3. www.bajaj.com

4. www.twowheeler.com

5. www.extrememachines.com

54
 QUESTIONNAIRE
NAME: - ………………………………………………

CONTACT NO ……………………………………….

AGE:- 15-20 20-25

25.30 Above 30

OCCUPATION:- Businessman Employee

55
 Student Other

Q1) Which Bike do you have?

Hero Honda Bajaj Any Other

Q2) Which Model do you have?

Hero Honda: - Splendor Passion

Karizma Other

Bajaj: - CT 100 Discover

Pulsar Other

Q3) In which Family Income do you Fall?

100000-200000 200000-300000

300000-400000 Above 400000

Q4) For how long do you own a Bike?

0-1 year 1-2 year

2-3 year above 3 years

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

Office Purpose Personal Purpose

Joy Purpose Other

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

Newspaper Television

Magazines Friends/Relatives

Q7) Does Advertisement Influence your decision in choosing a Motor Bike?

Yes No Can’t say

Q8) Do you have full knowledge about Bikes before buying?

56
 Yes No

Q9) Which factor below influence your decision?

Price Mileage Quality

Resale Value Status Symbol

Q10) How would you rate the following factors of bikes with respect to different
companies?
Hero Honda Bajaj

Mileage

Price

Pick up

Maintenance

Look/Shape

Brand Image

Q11) In new bike with good feature comes in, then would you like to change your bikes?

Yes No Can’t say

Q12) Any Suggestions for Company

……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
………

Date: (Signature)

57