PROJECT REPORT ON

COMPARATIVE STUDY OF HERO HONDA VS BAJAJ

SUBMITTED TO :
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION (H.N.B. GARHWAL UNIVERSITY)
SUBMITTED TO: MR.HIMANSHU SIR SINGH SUBMITTED BY: ABHISHEK KUMAR

FACULTYMANAGEMENT STUDIES

BBA VTH SEM.

ALPINE INSTITUTE MANAGEMENT & TECNOLOGY, DEHRADUN

BONAFIDE CERTIFICATE This is to certify that MR. MOHD. UMER is a bonafied student of ALPINE INSTITUTE OF MANAGEMENT & TECHNOLOGY, registered for BBA PROGRAMME for the session 2007-2010. He has under taken winter training at COMPARATIVE STUDY ON HERO HONDA VS BAJAJ practical training is a part of BBA program.

DECLARATION

I, Mohd. Umer student of ALPINE INSTITUTE OF MANAGEMENT& TECHNOLOGY, DEHRADUN Batch 2007-10, hereby declares that this winter training project report work entitled COMPARATIVE STUDY ON HERO HONDA VS BAJAJ is the out come of my own research and prepared by me and the same has not been submitted to any other university or institute for the award of any degree or diploma.

Place: Dehradun [MOHD. UMER]

CONTENTS
ACKNOWLEDGEMENT 1. Introduction 2. Changing Trend 3. Automobiles as part of life 4. Indian Perspective 5. Objectives of the study 6. Research Methodology 7. Significance and scope of the study 8. Limitations 9. Bajaj Auto Limited Profile 10.Hero Group Company Profile 11.Mission 12.Product Gallery 13.Changing Living Standard of People in India 14.Findings Graphical Representations 15.Conclusion 16.Recommendations Bibliography

ACKNOWLEDGEMENT
I would be failing in my duty if I do not thank all those persons who have helped me in successful completion of this Project Report. Grateful appreciation is offered to all of them on my behalf. In particular, I acknowledge the help and encouragement received from my Project Guide, MR. HIMANSHU SIR who in spite of her busy schedule dedicated me with him invaluable suggestions from time to time and helped me in successful completion of work and for providing me the wonderful and stimulating environment to work in.

I am sincerely indebted to the Showroom incharge of Hero Honda and Bajaj Auto Ltd. and also to all my faculty members. I express my deep gratitude to them for their kind and unending guidance, right with the basic information regarding the preparation of project report.

MOHD. UMER

INTRODUCTION
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 1950s 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 sellers 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 fourstroke 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 IndoJapanese 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.

CHANGING TREND
As the Indian economy developing day by day purchasing power is also increasing day by day .This has been created a great change in the market and in consumer behaviour also .If talk about the market of Automobiles Industry ,purchasing power and development in economy has brought a revolution in the market . Due to liberalization competition is also increasing day by day. There are lots of MNCs or foreign giants and domestic brands are now present in the Aotomobile market of India. This has been bought a great competition in the market. Because now consumers have lots of option in brands of motorbikes, like Hero Honda, TVS, Bajaj, Suzuki, Kawasaki etc So on the basis of above we can say that today it is very much necessary for the companies that they have to maintain their quality and quantity in the market and must have do careful analysis of the changing behavior of the consumer .If we talk about the motorbikes market Hero Honda is the biggest brand of motorbikes among other brands available in the market. If we see some years back then we find that Hero Honda was dominated in the

motorbikes market, we can say Hero Honda was having the monopoly in the motorbikes market, But now Hero Honda is aware ,what is the liking and disliking of consumer of motorbikes, this is the main motive of my study because now situations of motorbikes market is totally change. Today companies are focusing on customers delight as they know that to retain their customers, only satisfaction is not enough and they know that they have to give bit extra over others.

AUTOMOBILES AS PART OF LIFE

Motorcycle travel is becoming more popular in India. A major advantage of traveling by motorcycle is that you can travel at your own pace, stopping when you want and where you want. You can travel to small villages and stop for a picnic in the middle of nowhere. A good rule is to never drive at night unless it is essential. Better to stop a few hours early then to risk the dangers of night driving in India. Automobiles have become an indispensable part of our lives, an extension of the human body that provides us faster, cheaper and more convenient mobility every passing day. Behind this betterment go the efforts of those in the industry, in the form of improvement through technological research. What actually lie behind this betterment of the automobiles are the opinions, requirements, likes and dislikes of those who use these vehicles.

These wheeled machines affect our lives in ways more than

one.

Numerous

surveys

and

research

are

conducted

throughout the world every now and then to reveal one or the other aspect of automobiles, be it about the pollution caused due to vehicle population in cities, or rising motor accidents and causes, vehicular technology, alternative medicine and so on.

INDIAN PERSPECTIVE
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, 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.

OBJECTIVE OF THE STUDY

1. 2. 3. To know the market share of Bajaj & Hero Honda. To know the perception of customers regarding bikes. To determine the customers satisfaction regarding

bikes. 4. To determine the factors influencing the choice of customers regarding bikes. 5. 6. both brands. 7. to increase the sales of two wheeler. To study the sales promotion activities of both brand To study the customers brand preference. To study the features and other facilities provided by

SIGNIFICANCE AND SCOPE OF THE STUDY

Today when consumers are more educated and more capable to purchase the luxuries for themselves ,and. competition is very high in the market, then if any company wants to stand in the market it is mandatory to analyse the market and consumers time to time. Other wise It is not easy for the companies to cope up with the challenges of the market . In my study I tried to analyse the preference of consumers which reflect the

consumers behaviour, because consumer's behaviour is not static and continuously changes time to time, along with this I tried to analyse the market trend also. My study is confined to the Dehra Dun city only if this study have been carried out in large scale then further descriptive studies of this topic would definitely help to the companies in making their marketing strategies and policies

LIMITATIONS
My market research also suffered from several limitations during the survey. Following were the limitations which limited my study :

The survey was only confined to Dehradun city only.

Unwillingness on the part of the respondents due to which it became a tough job to get the questionnaires filled. Biased information by the dealers as they did not disclosed the actual facts. Few respondents were not confident while responding to some of the questions; specifically in concern with the services as some of the respondents said they dont know about the services provided by the company but still they are using it. Time limit was one of the major limiting factors of the study; the survey was very much time consuming as it was person-to person interview.

While doing the survey many consumers and dealers were not cooperative. They were not ready to devote some time for filling the questionnaire.

RESEARCH METHODOLOGY
RESEARCH PROJECT DEFINED A study of Motorbikes used by the consumer in Dehradun and to find out the Consumers Preference for Motorbikes in Dehradun city with special reference to Bajaj Honda. and Hero

RESEARCH Research in common parlance refers to a search for knowledge. One can also define research as a scientific investigation. The advanced Learners dictionary of current English lays down the meaning of research as a careful investigation or inquiry specially though search for new facts in any branch of knowledge. Some people consider research as a movement, movements from unknown to the

known. Research is thus an original contribution to the existing stock of knowledge making for its advancement.

RESEARCH METHODOLOGY Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. The most desirable approach with regards to the selection of the research methodology depends on the nature of particular problem, time and resources available along with the desire level of accuracy. Much depends upon the skill and aptitude of the researcher. This project has been undertaken as a research work and the findings are compiled in the form of Research Report.

PROBLEM IDENTIFICATION The research is being conducted to find out the consumers preference and satisfaction level towards different

Motorbikes available in Dehradun city. It is also intended to find out the factors being considered important by the customers at the time of purchasing a new motorbikes and it

is also done to find out the consumers preference among the motorbikes available in Dehradun city.

RESEARCH DESIGN The research design specifies the method for data collection and data analysis. The research design that I selected for my research work was descriptive. Descriptive research includes surveys and fact-finding enquiries of different kinds. SAMPLE DESIGN The researcher must decide the way of selecting a sample or what is popularly known as sample design. In other words sample design is a definite plan determined before any data or actually collected for obtaining a sample from a given population. Sample design is determined before data are collected. There are many sample designs from which a researcher can choose. Researcher must select/prepare a sample design that should be reliable and appropriate for his research study. Sampling Plan

To conduct a research, it is important to design proper sampling plan which includes the following decisions:

Sampling Unit

This takes into account target population that will be sampled in other words, who are the people to be surveyed ? In undertaken research work sampling units are the respondents belonging to different socio-economic

backgrounds of Dehradun. Sample area At which level, one collects the information that is known as a sample area. There were two type of areas which were considered, namely Consumers of different brands of motorbikes
Different dealers of motorbikes in Dehradun city.

Sampling Method I did my sampling by using the convenience sampling method. Sample size This takes into account the number of respondents selected from the universe those who should be surveyed i.e., number of persons who were involved under the collection are called sample size.

For Consumers : Area Dehradun Number of Consumers 90

For Dealers : Area Dehradun

Number of Dealers 10

BAJAJ AUTO LIMITED

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 200506. 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. The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance. The group's flagship company, Bajaj Auto, is ranked as the world's fourth largest two- and three- wheeler manufacturer and the Bajaj brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia. Founded in 1926, at the height of India's movement for independence from the British, the group has an illustrious history. The integrity, dedication, resourcefulness and determination to succeed which are characteristic of the group today, are often traced back to its birth during those days of relentless devotion to a common cause. Jamnalal Bajaj, founder of the group, was a

close confidant and disciple of Mahatma Gandhi. In fact, Gandhiji had adopted him as his son. This close relationship and his deep involvement in the independence movement did not leave Jamnalal Bajaj with much time to spend on his newly launched business venture. His son, Kamalnayan Bajaj, then 27, took over the reigns of business in 1942. He too was close to Gandhiji and it was only after Independence in 1947, that he was able to give his full attention to the business. Kamalnayan Bajaj not only consolidated the group, but also diversified into various manufacturing activities. The present Chairman of the group, Rahul Bajaj, took charge of the business in 1965. Under his leadership, the turnover of the Bajaj Auto the flagship company has gone up from Rs.72 million to Rs.46.16 billion (USD 936 million), its product portfolio has expanded and the brand has found a global market. He is India's one of the most distinguished business leaders and internationally respected for his business acumen and entrepreneurial spirit.

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. 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 1950s 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 sellers 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 fourstroke 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 twowheelers 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. Bajaj Pulsar 150cc DTS-i Pulsar has been major hit in the market; it comes in four variants: Pulsar 150 DTSi, Pulsar 180 DTSi, Pulsar 200 DTSi & Pulsar 220 DTSi. Bajaj Pulsar DTSi comes with a throttle actuated ignitioncontrol system that works in conjunction with a chip-controlled digital capacitor discharge ignition (CDI) system for accurate ignition timing under all

conditions. The dual spark design accelerates and evens out flame propagation, which results in more efficient

combustion and hence leads to better performance. Pulsar's 150cc engine delivers a power output of 13.5bhp at 8000 rpm. It has wonderful pickup with 0-60kmph in 5.66 seconds. It develops a maximum torque of 12.28 Nm @ 6500 rpm. It looks great with its mean muscular

aerodynamic shape. Apart from the smashing look, Pulsar has lighter yet stronger alloy wheels, which when coupled with the longest wheelbase (1330mm) enhance the stability of the bike. VEHICLE SUMMARY Name: Pulsar 150 (2008) Type: Commuter Top Speed: 113kph OTHER SPECIFICATIONS Weight: 137.00 kg Ground Clearance: 155.00 mm Fuel Tank: 8.00 ltrs Wheelbase: 1330.00 mm Electrical System: NA Headlamp: NA Horn: NA 17 Alloy Single Wheel Type: wheels Air 2.75 X 18 Wheel Size: Tubeless: 13.90nm@6500rpm 5 Speed 0 NA NA of 1 Colors: Black, Silver, Blue & Red Rear 100/90 X 18 mm ENGINE SPECIFICATIONS Displacement: 149.01cc 4

Stroke, Engine: Maximum Power: Maximum Torque: Gears: Clutch: Bore: Stroke: No. Cylinders: Cylinder Cylinder, Cooled, 2 Plug 13.50ps@8500rpm NA Configuration: Engine Block NA Material: Chassis Type: NA Cooling Type: Air Cooling Carburetor: NA ACTIVE AND PASSIVE SAFETY Suspension(Front):

Telescopic Triple rate Suspension(Rear): springs Brakes: 240mm Disc Brakes(Rear): 130mm Drum Stand Alarm:

DIMENSIONS COMFORT AND CONVENIENCE Fuel Guage: Digital Self Start: Tacho Meter: Analogue Trip Meter: None Alloys: Warranty: NA Speedometer: Digital Passenger Footrest: Passenger Backrest: Step-up Seat:

BAJAJ MOTORCYCLES
MODEL Bajaj Avenger Bajaj CT 100 Bajaj Discover

CAPACITY 180 CC 99.27 CC 111.63 CC 124.52 CC 111.6 CC 111.6 CC 123 CC 99.35 CC 99.27 CC 180 CC 150 CC 124.6 CC

Bajaj Discover Bajaj Discover DTSi Kawasaki Caliber Kawasaki Boxer KB 125 4S Champion Platina Pulsar DTSi

Bajaj Bajaj Bajaj Bajaj Bajaj Bajaj

Pulsar 180 DTS-i UG Pulsar 150 DTS-i UG

Bajaj Wind 125

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.

COMPANY PROFILE HERO GROUP

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 1940s and turned into the worlds 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 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. 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: 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 inhouse, 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

HERO HONDA MOTORCYCLES MODEL CAPACITY

Hero Hero Hero Hero Hero Hero Hero

Honda Honda Honda Honda Honda Honda Honda

Achiever CBZ CD Dawn CD Deluxe CD 100 CD 100 SS Glamour

149.1 CC 156 CC 97.2 CC 97.2 CC 97.2 CC 97.2 CC 124.7 CC 124.8 CC 223 CC 97.2 CC 97.2 CC 97.2 CC 124.7 CC

Glamour Glamour - FI Honda Honda Honda Honda Karizma Passion Plus Sleek Splendor

Hero Hero Hero Hero

Splendor + Super Splendor

MISSION
Hero Hondas mission is to strive for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers. At the same time maintain the highest standards of ethics and social

responsibilities This mission is what drives Hero Honda to new heights in excellence and helps the organization forge a unique and mutually beneficial relationship with all its stake holders

KEY HIGHLIGHTS
Hero Honda enjoys a significant brand premium. Its

aggressive pricing strategy to take on the competition has helped it in volume growth. Variant launches in each of Splendor and Passion has helped in stemming the loss in market share in the face of the competition. Hero Honda now plans to launch two new models in the 100cc segment in FY05 on a new platform. The company has started logging good volume growth after the launch of Passion Plus and Splendor Plus as well as the CD-Dawn, which has also rejuvenated its product range. Volumes should improve further, due to the base effect and improved rural sentiment on the back of higher farm incomes. Aggressive cost controls and significant economies of scale are expected to aid Hero Honda in retaining margins. Hero Honda will continue to be an attractive dividend yield play as the company continues to generate significant free cash flows as its capital requirements are limited.

PRODUCT GALLERY
AMBITION 135 CC This bike has a contemporary style with a tubular single cradle, diamond type which adds extra beauty to it. Over and above the bike has good acceleration and power with a maximum power of 11 BHP / 11.15 PS @ 8000 rpm and a maximum speed of 100 KMPH. It has also been added with adequate fuel efficiency of 55 KMPL. The Trapezoidal 35 / 35 W headlight gives the woah look. CBZ Transient Power Fuel Control (TPFC) System Hydraulic Dampers Gear Box: Equipped with five gears and a 156cc engine that generates 12.5 bhp powers. Touch the top speed of 100kmph. Multi Lever Locking Seat Adjustable Rear-Shock Absorbers & Dynamic Vibration SPLENDOR+ The Splendor+ has been upgraded in both its looks and performance. New, clear, bright multi-reflector head light with 12V 35/35W multi-reflector with halogen lamp, multi-

reflector tail light and stylish graphics. This motorcycle meets the pollution control standards of this decade. That's the Splendor+-the new face of trust. PASSION PLUS 9 New two-tone body colours PLUS Body colour rear view mirrors PLUS Aluminum die cast rear grip PLUS Heat protector on the muffler PLUS New dials on the instrument panel PLUS Headlight with halogen lamp PLUS Multi-reflector winkers. All this and much more to make the biker and his bike stay married forever. CD DAWN (Value Nayae Zamane Ki!) CD Dawn, the true-value 4 stroke, 100cc motorcycle. A motorcycle that encompasses the legendary Hero Honda values of fuel-efficiency, Tough Track economy Suspension and rock-solid Strong

dependability.

Doubly

Tubular Frame Other features - like the legendary mileage, KARIZMA the first-of-its-kind 2-year warranty in the

category, Superior technology plus advanced features plus captivating looks equals KARIZMA. The future of the Indian motorcycle market should be seen through KARIZMA. It is

certain to change the way in which the Indian customer looks at a premium bike. With a maximum power of 17 PS @ 7000 rpm, KARIZMA is targeted at customers seeking to enjoy the 'thrill of power on wheels of style'. A product of combined R&D efforts of Hero Honda-Honda, the motorcycle guarantees exceptional performance with unmatchable style and utmost comfort. HEROHONDA BIKE MODELS Model: Achiver ES Model: Start Model: CBZ Xtreme Kick Model: CD Dawn Start Model: Glamour Electric Model: Glamour FI ES Start Model: Glamour FI Kick Start Model: CD Deluxe Achiver Kick Model: CBZ Xtreme ES Model: Start Glamour Kick Model: Hunk ES

Model: Hunk Kick Start Model: New Karizma Model: Passion Plus Model: Pleasure

Model: Splendor NXG Model: Splendor NXG Model: Splendor Plus (Alloy) Model: Super Splendor (Spoke) Model: Ambition Model: CBZ Model: CBZ* Kick Start Model: Start CBZ* Electric Model: CD 100 SS Model: Dawn Model: Karizma Model: Passion Model: Splendor Model: Street Dlx Model: KS Super Splendor

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 twowheeler market. The Group's low key, but focused, style of management has earned the company plaudits amidst investors, employees, vendors and dealers, as also

worldwide recognition. The growth of the Group through the years has been influenced by a number of factors: Just-in-Time The Hero Group through the Hero Cycles Division was the first to introduce the concept of just-in-time inventory. The Group boasts of superb operational efficiencies. Every assembly line worker operates two machines simultaneously to save time and improve productivity. 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:. 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 nationwide 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 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. 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.

CHANGING LIVING STANDARD OF PEOPLE IN INDIA

The standard of living in India is constantly improving. However the gap between the poor and rich is ever more visible. The single most common indicator which is used to quantify standard of living is the per capita purchasing power parity (PPP) adjusted gross domestic product (GDP). In 2003, the per capita PPP adjusted GDP for India was US$ 3100. These figures can be compared to $33,000 for the USA, $4,900 for China and approximately $26,000 for most western European nations. With one of the fastest growing economies in the world, clocked at an average growth rate of 7% between 20002003, India is fast on way to become a large and globally important consumer economy. However there is no

indication how the growth rate will narrow the gap between one of world's richest men, Indian billionaire Lakshmi Mittal, and the poor woman working so hard in the photo. For example 70% of the Indian population don't have toilets at home and usually go to the footpath, farm or any outdoor

place for ablutions. In 2006, 22 percent of Indians lived under the poverty line, down from 50 percent in 1995. With consistently high economic growth over the next decade, however, India is aiming to eradicate poverty by 2020. The Indian middle class, touted to be anywhere between 100 and 300 million depending on the data used, is fast becoming used to the Western consumer lifestyle. Though large disparities exist, the standard of living of the average Indian is slowly but definitely rising and, if current trends continue, will grow to be approximately one third that of the developed world (in PPP dollars) by the middle of the 21st century. In the field of technology, India has entered the industry earning a good reputation, as well as a positive stereotype. The standard of living refers to the quality and quantity of goods and services available generally measured by

standards such as income inequality, poverty rate, real (i.e. to people and the way these services and goods are distributed within a population. It is inflation adjusted) income per person. Other measures such as access and quality of health care, educational standards and social

rights are often used too. Examples are access to certain goods (such as number of refrigerators per 1000 people), or measures of health such as life expectancy . It is the ease by which people living in a country are able to satisfy their needs. The idea of a 'standard' may be contrasted with the quality of life, which takes into dual account not only the material standard of living, but also other more subjective factors that contribute to human life, such as leisure, safety, cultural resources, social life, mental health, environmental quality issues etc. More complex means of measuring wellbeing must be employed to make such judgements, and these are very often political, thus controversial. Even among two nations or societies that have similar material standards of living, quality of life factors may in fact make one of these places more attractive to a given individual or group. There are many factors being considered before measuring standard of living. Some factors are gross domestic product, the per capita income, population, infrastructural opment, stability (political and social), and many other indicators.

DATA ANALYSIS

Q1) Which bike do you have? Hero Honda 52 Bajaj 35 Any other

13

Q2) Which Model do you Have? Hero Honda Bajaj Splendor21 Passion 13 Karizma 7 Any other 6 CT 100 Pulsar 7 11 8 Discover 12 Any other

Q3) In which family Income level do you Fall? 100000-200000 22 200000-300000 45 300000-400000 23 above 400000 10

4)

For how long 0-1 year 1-2 year 2-3 year above 3 year

do you own a bike? 34 29 26 11

Q5) For what purpose do you use your Motor Bike? Hero Honda Office Purpose Personal purpose Joy Purpose Other 9 13 19 6 15 16 3 Bajaj 4

Q6) How do you come to know about this Motor Bike? Hero Honda Newspaper 4 Television 23 Magazine 2 Friends & Relative 18 Bajaj 2 16 1 19

Q7) Does Advertisement Influence your decision in choosing a Motor Bike? Yes 87% No 5% Cant say 8%

Q8) Do you have full knowledge about Bikes before buying? Yes No Hero Honda 25 22 Bajaj 23 15

Q9) Which Factor below Influence your decision? Hero Honda Price 72% Mileage 78% Quality 65% Resale Value 40% Status symbol l10% Bajaj 78% 64% 48% 28% 7%

Q10) How would you rate the following factors of Bikes with respect to different company? Hero Honda Mileage 74% Price 68% Pick up 70% Maintenance 58% Look & Shape 85% Brand Image 53% Bajaj 72% 65% 80% 62% 80% 55%

Q11) If new Bike with good features comes in, then would you like to change your bike? Yes No Cant say Hero Honda 19 17 11 Bajaj 21 14 3

CONCLUSION Due to economic development purchasing power of peoples increasing day by day. Therefore market of consumer durable or white goods expanding day by day. By the policy of liberalization lots of MNCs are now present in the market this has been create a competition in the market we can say rivalry like situation is aroused between the companies. I found maximum number of Hero Honda consumers, this shows the monopoly of Hero Honda in old days but now situation is changed. Although Bajaj & TVS are giving more features as compare to Hero Honda but also there is image of Hero Honda is much more in the mind of the consumers. Definitely Bajaj is the second one in this segment and doing a much more in comparison to other bikes. In my research report I came to know that the price and the mileage are the biggest factors in the purchase decision of the consumers. And the schemes that are provided by the company also affect the purchase decision but not more in comparison to brand image.

Automobile industry has a large potential in all the segments like four wheelers and even in two wheelers in Indian market. For my study I have taken two highly competitive automobile in India that is Hero Honda and Bajaj Auto. Both of them have captured the Indian market with its own unique features, such as looks, efficiency, mileage, technical specification etc. Both the products have approximately same pricing strategy. They make different in their features & performance on road. But all said and done, in the 150cc segment on the marketing front Pulsar 150 DTSi kicked off Hero Honda Hunk, but in core biking (by which I mean quality, handling and reliability) Hunk kicked off Pulsar and there is no debate to this. Still better I would say, ask an owner who who owns a Hunk for 2 years or so, he is still a happy man to have spent very little on maintenance and the Pulsar 150cc DTSi owner would have changed clutch plates, shock absorbers and is already looking for an upgrade of Pulsar (if he is a diehard Pulsar fan) or some other better model. The spares of Bajaj maybe cheaper than Honda but even Auto Car India acknowledged that Bajaj as a whole suffers from quality problems. In the last I want to conclude

stating that there is a passion towards cars in India. But there is still higher passion towards bike among youngsters. Both the companies need to work more towards technical efficiency which suits Indian roads. 1. Most of the Pulsar, CBZ & Karizma are purchased by young generation of 18 to 30 age group 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 efficiency. 5. Majority of the respondent had bought their motorcycle more than 3 years. in form of maintenance cost, fuel

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. 4. More service centers should be opened. 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.

BIBLIOGRAPHY
Annual Report Hero Honda Annual Report Bajaj Auto Ltd. www.bajajauto.com www.herogroup.com

QUESTIONNAIRE
NAME: - .. CONTACT NO . AGE:15-20 Above 30 OCCUPATION:Student 25.30 Businessman Employee Other
======================================= =============== Q1) Which bike do you have?

20-25

Hero Honda Bajaj Any Other

Q2) Which Model do you Have? Hero Honda Bajaj other Q3) In which family Income level do you Fall? Splender Passion Karizma Any other Any

CT 100

Discover

Pulsar

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 year

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 Magazine Friends & Relative Q7) Does Advertisement Influence choosing a Motor Bike? Yes No your decision in

Cant say

Q8) Do you have full knowledge about Bikes before buying? Hero Honda Bajaj Yes Yes No No

Q9) Which Factor below Influence your decision? Hero Honda Price Quality Resale Value Bajaj Mileage Quality symbol Q10) How would you rate the following factors of Bikes with respect to different company? Resale Value Status Mileage

Status symbol Price

Company Name

Hero Honda up

Mileage

Price Look & Shape

Pick

Maintenance Brand Image Bajaj Company Name Pick up Brand Image Q11) Maintenance

Mileage

Price

Look & Shape

If new Bike with good features comes in, then would you like to change your bike? Hero Honda Bajaj

Q12) Any Suggestions for Company