Chapter-1 Introduction to Bajaj

Chapter1:
Introduction to the
Organisation

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.

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

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

and

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

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
J.N. Godrej
Naresh Chandra
S. H. Khan

Chairman

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

Bajaj Autos Ltd.

Bajaj Auto Limited

Type

Public

Founded

1945

Headquarters

Pune, India

Key people

Rahul Bajaj (Chairman)

Revenue

Rs. 1,01,063 billion (2006) or USD 1.87 billion

Net income

Rs. 17,016 billion

Employees

???

Website

www.bajajauto.com

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

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

Timeline of new releases

1971 - three-wheeler goods carrier

1972 - Bajaj Chetak

1976 - Bajaj Super

1977 - Rear engine Autorickshaw

1981 - Bajaj M-50

1986 - Bajaj M-80, Kawasaki Bajaj KB100

1990 - Bajaj Sunny

1994 - Bajaj Classic

1995 - Bajaj Super Excel

1997 - Kawasaki Bajaj Boxer, Rear Engine Diesel Autorickshaw

1998 - Kawasaki Bajaj Caliber, Legend(India's first four-stroke scooter)

2000 - Bajaj Saffire

2001 - Eliminator, Pulsar

2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar

2004 - Bajaj CT 100, New Bajaj Chetak 4-stroke with Wonder Gear, Bajaj
Discover DTS-i
2005 - Bajaj Wave, Bajaj Avenger, Bajaj Discover

2006 - Bajaj Platina

2007 - Bajaj Pulsar-200

Scooters

Bajaj Sunny

Bajaj Chetak
Bajaj Cub
Bajaj Super
Bajaj Wave
Bajaj Legend

Motorcycles

Kawasaki Eliminator

Bajaj Pulsar

Bajaj Kawasaki Wind 125

Bajaj Boxer

Bajaj CT 100

Bajaj Platina

Bajaj Caliber

Bajaj Discover

Bajaj Avenger

Bajaj Pulsar 220 DTS-Fi

Upcoming Models

Bajaj Krystal

Bajaj Blade

Bajaj Sonic

Bajaj XCD String

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 billio

1.2 Introduction to Hero Honda

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 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 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.

BOARD OF DIRECTORS
No. Name of the Directors

Designation

Mr. Brijmohan Lall Munjal

Chairman & Whole-time Director

Mr. Pawan Munjal

Managing Director

Mr. Toshiaki Nakagawa

Jt. Managing Director

Mr. Takao Eguchi

Whole-time Director

Mr. Satyanand Munjal

Non-executive Director

Mr. Om Prakash Munjal

Non-executive Director

Mr. Tatsuhiro Oyama

Non-executive Director

Mr. Masahiro Takedagawa

Non-executive Director

Mr. Narinder Nath Vohra

Non-executive & Independent Director

10

Mr. Pradeep Dinodia

Non-executive & Independent Director

11

Gen.(Retd.) Ved Prakash Malik

Non-executive & Independent Director

12

Mr. Analjit Singh

Non-executive & Independent Director

13

Dr. Pritam Singh

Non-executive & Independent Director

14

Ms. Shobhana Bhartia

Non-executive & Independent Director

Hero Honda Motorcycle Ltd.

Type

Public company BSE:HEROHONDA M

Founded

January 19, 1984 in Gurgaon, Haryana, India

Headquarters

Haryana, India
Om Prakash Munjal, Founder

Key people

Mr.
Brijmohan
Lall
Munjal,
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

Chairman

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 2wheeled motorized vehicles since 2001, when it produced 1.3 million motorbikes in a
single year. Hero Honda's Splendor is the world's largest selling motorcycle. Its 2
plants are in Dharuhera and Gurgaon, both in Haryana, India. It specializes in dual use
motorcycles that are low powered but very fuel efficient.

[ 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

1.3 COMPANY PROFILE

Hero, is the brand name used by the Munjal brothers in the year 1956 with the
flagship company Hero Cycles. The two-wheeler manufacturing business of bicycle
components had originally started in the 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.
GROWTHThe 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 breakthrough in the competitive two-wheeler market. The Group's low key, but focused,
style of management has earned the company plaudits amidst investors, employees,
vendors and dealers, as also worldwide recognition.The growth of the Group through
the years has been influenced by a number of factors:

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

Ancillarisation
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
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

1.3 TVS MOTOR COMPANY

The TVS group was established in 1911 by Shri. T. V. Sundaram Iyengar. As one of
Indias largest industrial entities it epitomizes Trust, Value and Service. It all began
way back in 1984 when Sundaram Clayton Limited (A TVS Group company)
introduced its 50 CC mopeds in the arena of road racing, notching up unbelievable
speeds of 105 kmph. Since then, there has been no looking back for TVS Motor

Company. TVS Racing was established in 1987 with the objective of improving the
performance of its bikes. Over the years it has provided valuable data, design inputs,
development of reliable motorcycle models, excellent vehicle dynamics & handling
etc. The true evidence of it is seen in today's TVS Victor and TVS Fiero. Today, there
are over thirty companies in the TVS Group, employing more than 40,000 people
worldwide and with a turnover in excess of USD 2.2 billion.
With steady growth, expansion and diversification, TVS commands a strong presence
in manufacturing of two-wheelers, auto components and computer peripherals. We
also have vibrant businesses in the distribution of heavy commercial vehicles
passenger cars, finance and insurance.
TVS Motor Company Limited, the flagship company of the USD 2.2 billion TVS
Group, is the third largest two-wheeler manufacturer in India and among the top ten in
the world, with an annual turnover of over USD 650 million.
The year 1980 is one to be remembered for the Indian two-wheeler industry, with the
roll out of TVS 50, India's first two-seater moped that ushered in an era of affordable
personal transportation. For the Indian Automobile sector, it was a breakthrough to be
etched in history. TVS Motor Company is the first two-wheeler manufacturer in the
world to be honoured with the hallmark of Japanese Quality The Deming Prize for
Total Quality Management It is the only automotive manufacturer in India to get the
prestigious Deming Prize. One of its subsidiaries Sundaram Clayton was the first
company in India to receive the Deming allowed by Sundaram Brake Linings also
getting the Deming Prize. This prize is "given to organizations or divisions of
organizations that have achieved distinctive performance improvement through the
application of TQM in a designated year." Sundaram Clayton went on to be awarded
the Japan Quality Medal.
The TVS group of companies is mainly situated in Padi, Tamil Nadu, in the outskirts
of Chennai (formerly Madras).

1.3.1 TVS MOTORS

TVS Motor Company has its
origin

in

SUndaram

CLayton

Limited, Moped Division, started

in 1980. The factory was started in
Hosur, Tamilnadu in southern
India. The first product launched
was a 50 cc moped, which
appealed to the masses because of
its capability to carry two people.
In the same location, the same
promotors

started

another

company in 1984, in collaboration

with Suzuki Motor Corporation of
Japan, for the manufacture of 100
cc motorcycles under the brand
name of Ind-Suzuki Motorcycles.
Subsequently

in

the

moped

division was bought by Ind Suzuki

Motorcycles in 1987 and the
company changed its name to TVS
Suzuki Ltd. Even though the
company started producing all
kinds

of

two

wheelers

like

mopeds, scooters and motorcycles,

the collaboration

with Suzuki

continued for the motorcycles

only.

The

collaboration

with

Suzuki Motor Corporation ended

in 2001 and since then the name of
the company changed to TVS
Motor Company. The company

now develops all types of twowheelers through its own in house

R&D facility and manufactures in
three locations in India, Hosur in
Tamlnadu, Mysore in Karnataka
and Baddi in Himachal Pradesh. It
has

recently

started

new

manufacturing plant in Indonesia

to cater to the South east Asian
market.

The

Managing

Chairman

Director

of

and
the

Company is Mr. Venu Srinivasan

who is the grandson of TV
Sundaram Iyengar.
TVS Group Companies

Sundaram Brake Linings

Sundaram Fastners

Southern Roadways

Sundaram Finance

Sundharams Private Limited

Brakes India Limited

THE MAJOR PRODUCTS

Motorcycles
TVS Ind Suzuki AX 100
TVS MAX 100
TVS MAX R 100
TVS Supra
TVS Suzuki Samurai
TVS Suzuki Shogun
TVS Suzuki Shaolin
TVS Suzuki Fiero
TVS Fiero
TVS Star
TVS Star City

 TVS Star city deluxe

TVS Star Sport
TVS Fiero F2
TVS Fiero FX
TVS Centra
TVS Victor (110 cc)
TVS Victor GLX (125 cc)
TVS Victor EDGE (125 cc)
TVS
Flame
technology)

(125

cc,ccvti

TVS Apache (150 cc,13.7 Ps

@8500rpm)
TVS Apache RTR 160
TVS Apache RTR 160
(Electronic Fuel Injection)

Scooters

TVS Scooty ES (60 cc)

TVS Scooty KS (60 cc)

TVS Scooty Pep (75 cc)

TVS Scooty Pep + (90 cc)

TVS Teenz

Mopeds

TVS XL 50(50 cc)

TVS XL (60 cc

TVS Eco

TVS Astra

TVS XL Super (60 cc)

TVS XL Super Heavy Duty

TVS Champ (60 cc)

TVS Super Champ (60 cc)

BAJAJ PULSAR 150

Price (ex-showroom, Mumbai)
Rs 49,400-53,000
Top speed 107kph
0-60kph 6.25sec

EFI

Kpl 59.6 (overall)

HERO HONDA CBZ X-TREME

Price Rs 56000
Displacement 150 cc
Weight: 141 Kgs (Kick Start) /
143 Kgs
(Electric Start)
4-stroke single cylinder
Idle engine speed 1400 rpm

TVS APACHE
Price: Rs.58,600/- (Pune)
Displacement 150
cc Good Balance,
Good brakes 4-stroke
single cylinder
Electric start & kick start
option Six-spoke black
alloy wheels

Chapter 2.
Reviewof
Literature

2.1.1: STUDIES RELATED TO GROWTH AND DEVELOPMENTS IN INDIAN

TELECOM SECTOR
Stern (1999) projected a target 75 million bikes by the year 2005 and s by 2010 has been
set. Indian two wheelers sector has already achieved. With over 100 million telephone
connections and an annual turnover of Rs. 61,000 crores, our present teledensity is
around 9.1%.

Wellenius (2001) analysed that information is regarded today as a fundamental factor of

production, alongside capital and labor. The information economy accounted for onethird to one-half of gross domestic product (GDP) and of employment in Organization for
Economic Cooperation and Development (OECD) countries in the 1980s and is expected
to reach 60 percent for the European Community in the year 2000. Information also
accounts for a substantial proportion of GDP in the newly industrialized economies and
the modern sectors of developing countries.
World Telecommunication Development Report (2002) explains that network
expression in India was accompanied by an increase in productivity of two wheeler staff
measured in terms of ratio of number of main lines in operation to total number of staff.

Shyamal Ghosh (2003) mentions that the most significant development since 1999 has
been the progressive reduction in tariffs which has been facilitated by competition
through multi operator environment. The most dramatic reduction in tariff has been from
very high Rs. 16 per minute to Rs. 2 per minute.
Arindham Mukherjee 2006 studied that takes out various case studies like TVS HERO
HONDA BAJAJ . to study the rising interest of foreigners for investment in Indian
industry. Various reasons of stemming growth can be rising subscriber base, rising
teledensity, rising handset requirements, saturated telecom markets of other countries,
stiff competition, requirement of huge capital, high growth curve on telecom, changing
regulatory environment, conducive FDI limits in telecom sector.
Nagasimha Kanagal 2006 analyzed that relationships as a focus on marketing aids in the
understanding of consumer needs and wants, which is useful to implement profitable
exchanges. Relationship marketing helps customising solutions to important customers,
more efficiently than otherwise, knowledge and application of relationship marketing
helps in achieving customer satisfaction, customer retention and customer acquisition.
Relationship marketing a tool of furthering the customer

Walker (2007) agreed that the traditional marketing mix has been defined as a set of
controllable instruments to manage the uncontrollable and dynamic marketing
environment and consist of four major element price, product, promotion or marketing
communication and place.
Hutchinson, 2007 concluded that Consumer decision making process is usually guided
by already formed preferences for a particular alternative. This means that consumers are
likely to make the choice between alternatives based on limited information search
activity and without detailed evaluation of the other alternatives (
Nowlis (2007). found that many decision strategies used by consumers can change due to
person, context and task specific factor It is widely accepted that the traditional problem
solving approach involving, rational decision making to the study of consumer choice
may not be suitable for all situations, or is at least incomplete understand choice behavior.
Limited information search and evaluation of alternatives led to a situation in which
consumer choice is also driven by hedonic considerations
Kalavani (2006) in their study analyzed that majority of the respondentshave given
favorable opinion towards the services but some problems exist that deserve the attention
of the service providers. They need to bridge the gap between the services promised and
services offered. The overall customers attitude towards cell phone services is that they
are satisfied with the existing services but still they want more services to be provided.

Chapter 3:
Need , Objective &
Scope of study

3.1 NEED OF THE STUDY

1. To analyze the customer satisfaction.
2. To analyze the customer preference.
3. To know which manufacturer is providing better services.
4. To analyze after sales services of bikes.
5. To study the behavioral factors of consumers in motor bikes.
6. To suggest various factors to improve sales.
3.2 Objective Of study
Consumer satisfaction procedure has a great importance in every organization. The
objectives are set up in the start of the study, because on the basis of these objectives we
have to do the research work, these are summarized as under :-

To study the customer perception regarding the Two Wheelers of the

Company
To study the customer satisfaction level regarding two Wheeler of
Bajaj,TVS, Hero Honda
To know the factors which influence the customers in availing the service
providers
To study the category of Services Provided to the customer
To study the level of customer satisfaction in Bajaj, TVS & Hero Honda

3.3 Scope of study

My project was based on the A COMPARATIVE STUDY OF CUSTOMER

SATISFACTION TOWARD PERFORMANCE OF HERO HONDA, TVS AND
BAJAJ BIKES and data was taken in the City Bareilly only

Chapter4:RESEARCH
METHODOLOGY

4.1RESEARCH 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.
4.1.1 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.
4.2 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.
4.2.1 SAMPLING UNIT
It gives the target population that will be sampled. This research was carried in
Bareilly (Distt Bareilly).
These were 90 respondents

4.3 LIMITATIONS OF STUDY

1. Research work was carried out in one Distt of U.P. (BAREILLY) 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.
The views of the people are biased therefore it doesnt reflect true picture.

Chapter 5:
Data
Presentation,
Analysis and
Interpretation

Q1) Which bike do you have?

Hero Honda

30

Bajaj

30

Any other

30

INTERPRETATION: - Out of the sample size of 90 customers, 30 customers are of

Hero Honda, 30 are of Bajaj and 30 customers of TVS bikes are taken into
consideration.

Q2) Which Model do you Have?

Hero Honda

Bajaj

TVS

Splender

13

CT 100

Flame

Passion

Discover

11

Star City

Karizma

Pulsar

10

Apache

Any other

10

Any other

Any other

10

HERO HONDA

INTERPRETATION: - In Hero Honda mostly the customers are having splendor

while the ratio of the customers using Passion, Karizma and other bikes are
comparatively low.

BAJAJ

INTERPRETATION: - In Bajaj the customers are giving more preference to Discover

and Pulsar models.
TVS

INTERPRETATION:- In TVS Bikes the customers are givig more preference

to the other models rather than Flame,Starcityand Apache.

Q3) In which family Income level do you Fall?

100000-200000

22

200000-300000

45

300000-400000

23

above 400000

10

INTERPRETATION: - The maximum numbers of customers that are using

these bikes fall in the income group of 200000-300000. While this ratio is minimum
in case of customers whose income level fall between 300000-400000.

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

INTERPRETATION: - It is observed that mostly the customers are having

new bikes.

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

Hero Honda

Bajaj

TVS

Office Purpose

13

42

38

Personal purpose

17

15

27

Joy Purpose

10

18

10

Other

40

15

15

INTERPRETATION:- The customers are using their bikes mostly for official and
personal purpose.

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

Hero Honda

Bajaj

TVS

Newspaper

28

33

22

Television

22

28

18

Magazine

16

28

Friends & Relative

37

13

22

INTERPRETATION: - It is observed that the awareness of Hero Honda bikes

mostly comes from friends while of Bajaj and TVS the awareness comes from
newspapers and televisions.

Q7) Does Advertisement Influence your decision in choosing a Motor

Bike?
Yes

65

No

15

Cant say

10

INTERPRETATION: - Out of the sample size of 90 customers, 65 customers agrees

with the fact that advertisements play a very significant role in influencing their
behavior to choose the bike. On the other hand 15 customers do not agree to this fact.
While remaining 10 customers are not sure about it.

Q8 Are you satisfied with the performance of the bike that you are
currently havin?
Yes

55

No

28

Cant say

INTERPRETATION:- Out of the sample size of 90 customers, 55 customers says that

they are satisfied with the performance of their bikes. On the other hand 28 customers
are not satisfied with the performance of the bikes that they are having. While the
remaining 10 customers are unable to say anything.

Q9) Do you have full knowledge about Bikes before buying?

Hero Honda

Bajaj

TVS

Yes

42

34

37

No

37

27

22

Cant Say

11

29

31

INTERPRETATION:- It is observed that most of the customers are having

full knowledge of the bike before purchasing.

Q10) Which Factor below Influence your decision?

Hero Honda

Bajaj

TVS

Price

17

22

28

Mileage

28

15

15

Quality

11

20

16

Resale Value

12

14

17

Status symbol

32

19

14

HERO HONDA

INTERPRETATION:- In Hero Honda bikes the mileage of the bike and the value that
it adds to the status symbol of the customers influences the decision criteria of most of
the customers.

BAJAJ

INTERPRETATION:- In Bajaj bikes customers gets more influenced by the price and
quality of the bike and also they think that it adds value to their prestige.
TVS

INTERPRETATION: - In TVS bike the economic price of the bikes influences the
buying behavior of the customers.

Q11) How would you rate the following factors of Bikes with respect to different
company?

Hero Honda

Bajaj

TVS

Mileage

74%

72%

68%

Price

68%

65%

47%

Pick up

70%

80%

62%

Maintenance

58%

62%

74%

Look & Shape

85%

80%

72%

Brand Image

53%

55%

69%

INTERPRETATION: - It is observed that in rating of different features of different

bikes people give maximum rating to the look and shape of the bike. At the second
level they give their rating to the pick up. At the third level they rate mileage. And at
the fourth level they give points to maintenance. At last they rate price and brand
image.

Q12) If new Bike with good features comes in, then would you like to change your bike?

Hero Honda

Bajaj

TVS

Yes

10

16

14

No

16

11

11

Cant say

INTERPRETATION:- It is observed that the customers of Hero Honda bikes are not
ready to change their bikes even if a new bike comes in with good features. While
majority of the customers of Bajaj and TVS are ready to change their bikes if new
bike provides some good features to them.

FINDINGS
During this research project I came in to contact with many customers who are
having bikes. It has been found that in Hero Honda mostly the customers are having
splendor while the ratio of the customers using Passion, Karizma and other bikes are
comparatively low. In Bajaj the customers are giving more preference to Discover and
Pulsar models and in case of TVS Bikes the customers are givig more preference to
the other models rather than Flame,Starcityand Apache. The maximum numbers of
customers that are using these bikes fall in the income group of 200000-300000.
It has been observed that the customers are using their bikes mostly for official
and personal purpose. It is observed that the awareness of Hero Honda bikes mostly
comes from friends while of Bajaj and TVS the awareness comes from newspapers
and televisions. Out of the sample size of 90 customers, 65 customers agree with the
fact that advertisements play a very significant role in influencing their behavior to
choose the bike. On the other hand 15 customers do not agree to this fact. While
remaining 10 customers are not sure about it.
When the customers are asked that are they satisfied with the performance of
their bikes then most of them agrees to the fact. Out of the sample size of 90
customers, 55 customers says that they are satisfied with the performance of their
bikes. On the other hand 28 customers are not satisfied with the performance of the
bikes that they are having. While the remaining 10 customers are unable to say
anything. It is observed that most of the customers are having full knowledge of the
bike before purchasing
It has been seen that In Hero Honda bikes the mileage of the bike and the
value that it adds to the status symbol of the customers influences the decision criteria
of most of the customers. In Bajaj bikes customers gets more influenced by the price
and quality of the bike and also they think that it adds value to their prestige. While in
case of TVS bike the economic price of the bikes influences the buying behavior of
the customers.
It is observed that in rating of different features of different bikes people give
maximum rating to the look and shape of the bike. At the second level they give their
rating to the pick up. At the third level they rate mileage. And at the fourth level they
give points to maintenance. At last they rate price and brand image.

It is observed that the customers of Hero Honda bikes are not ready to change
their bikes even if a new bike comes in with good features. While majority of the
customers of Bajaj and TVS are ready to change their bikes if new bike provides
some good features to them.

Conclusion
1. Most of the Flame, Apache, Pulsar, CBZ & Karizma are purchased by young
generation 18 to 30 years because they prefer stylish looks and rest of the
models of Hero Honda, TVS and Bajaj 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.

RECOMMENDATIONS
1.

Bajaj should introduce some more models having more engine power.

2.

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

3.

More service centers should be opened.

4.

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

5.

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

6.

The price should be economic.

BIBLIOGRAPHY
1. www.herohonda.com
2. www.google.com
3. www.bajaj.com
4. www.twowheeler.com
5. www.extrememachines.com

QUESTIONNAIRE
NAME: -
CONTACT NO .
AGE:-

15-20
25-30

OCCUPATION:-

Businessman
Student

20-25
Above 30
Employee
Other

Q1) Which Bike do you have?

Hero Honda

Bajaj

TVS

Q2) Which Model do you have?

Hero Honda: -

Bajaj: -

TVS:-

Splendor

Passion

Karizma

Other

CT 100

Discover

Pulsar

Other

Flame

Apache

Star city

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) Are you satisfied with the performance of the bike that you are currently having?
Yes

No

Cant say

Q8) Does Advertisement Influence your decision in choosing a Motor Bike?

Yes

No

Cant say

Q9) Do you have full knowledge about Bikes before buying?

Yes

No

Cant say

Q10). Which factor below influence your decision?

Price

Mileage

Resale Value

Status Symbol

Quality

Q11) How would you rate the following factors of bikes with respect to different companies?

Hero Honda

Bajaj

TVS
Mileage
Price
Pick up
Maintenance
Look/Shape
Brand Image

Q12) If new bike with good feature comes in, then would you like to change your bikes?
Yes

No

Cant say

Q13) Any Suggestions for Company

Date:
(Signature)