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Project Report On: Comparative Study of Hero Honda Motorcycles and Bajaj Motorcycles
Project Report On: Comparative Study of Hero Honda Motorcycles and Bajaj Motorcycles
On
Comparative study
Of
Hero Honda Motorcycles and Bajaj Motorcycles
UNDER GUIDANCE
Mr.
(Submitted in partial fulfillment of the requirement for the degree)
MASTER OF BUSINESS ADMINISTRATION
(MARKETING)
2008-2011
Jyoti Parkash
SUBMITTED BY
BBA- 6th SEM.
Roll No.-80907320015
It is certified that the project work entitled “Comparative Study Of Hero Honda
Motorcycles & Bajaj Motorcycles” done by Jyoti Parkash to be submitted to Dr. I.T.
BUSINESS SCHOOL in Partial fulfillment of the requirement of the reward of the degree
of MASTER OF BUSINESS ADMINISTRATION (Marketing) has been carried out
under my guidance and supervision.
PROJECT GUIDE:
Mr. Bhart Bhushan
Lecturer,
With deep sense of gratitude I would like to take this opportunity to thank my honorable
project guide Mr.Bhart Bhushan (Lect), Dr.I.T. Business School, who has always been a
sincere advisor and inspiring force behind this report. He has been extremely generous with
his time and rendered me all possible help to seek this work complete. I could not have
asked for more co-operative guide, his invaluable support has always given me the
confidence to do hard work. Without his guidance this project report would not have been
light of the day.
I would also like to thank my friends who were of immense help to me. I would
thank all the respondents who gave their invaluable time during the survey.
Last but not least I would like to thank my parents, their support throughout the
making of this report.
(Jyoti Parkash)
CONTENTS
1. Indian Motorcycle Industry
4. Consumer Behavior.
4.1 Introduction.
4.2 Consumer Decision Making Process.
4.3 Factors Affecting the Motorcycle Purchase.
5. Objective of Study.
6. Research Methodology.
7. Finding.
8. Conclusion.
9. Suggestions.
10. Bibliography.
11. Questionnaire.
1. INDIAN MOTORCYCLE
INDUSTRY
1. INDIAN MOTORCYCLES INDUSTRY
Motorcycles have come a long way since they were first introduced in the country way
back in the 1950s. The Indian government had got the first set of these mean machines
from the Royal Enfield Company of UK for its' Army and Police to patrol the border
highways on the rough and tough terrain of the West. Today these sets of two wheelers not
Only cater to the men in uniform, but also common people who have different needs and
expectations from their motorcycles. Today motorcycle companies are taking special care
to make their products more user friendly comfortable, safe, and ergonomic without
compromising on the fun and thrills of riding. Some bikes like the hero Honda Karizma can
touch speeds up to 125kmph thus truly satisfying the riders need for speed. motorcycles
have also invaded the Hindi film industry where Bollywood heart throbs like John
Abraham, Hrithik Roshan , Uday Chopra and Fardeen Khan are seen setting the roads on
fire with their set of two wheels. Thus the trend of motorcycles have caught up with the
average Indian and there a bike to suit everyone's needs and usage. Premium Segment bikes
like the hero Honda Karizma and Bajaj Pulsar provides the Generation a chance to emulate
their idols on screen. These motorcycles come with 5 speed gear box and disc brakes to
provide one the extra throttle with the adequate safety measure. These motorcycles also
come with factory fitted allow wheels to provide the extra strength and stability.
India has a burgeoning middle class, which means that value for money bikes like the hero
Honda splendor, Bajaj “Discover” have retained their importance with every passing day.
These bikes are a hit among the office goers and small time business men who demand
maximum output from their two wheelers. Motorcycles like the hero Honda splendor come
in a wide range of colors and give an average mileage of 70 km per liter.
The entry level segment of motorcycles also has a cut throat competition with the two
wheeler manufacturers trying to outdo each other by providing that extra edge in economy
biking. Some of the bikes which are available at the entry level include the Hero Honda CD
Dawn, and Bajaj CT 100.
If you are planning to buy a motorcycle, now is the right time. You couldn’t have
bargained for better deals as a new price war has been unleashed in the market by the
leading motorcycle manufacturers and the prices have hit an all time low. Walk into any
bike showroom, not only you will get a red carpet welcome but you will be surprised by the
offers: huge discounts, zero per cent finance, free insurance, free accessories, etc, etc. As
the bike makers are offering a variety of stylish and technologically advanced vehicles.
The major growth in motorcycle segment will be coming from Japanese segment and in
particular four-stroke motorcycles, leading to marginalization of Indian motorcycles. The
Japanese motorcycles will continue to improve penetration in the rural areas by providing
additional features like luggage carrying provision etc. The rush of new models in the small
car market combined with up gradation of small car users to new mid-size cars has lead to
sharp drop in prices of second hand cars. In some cases the price of a second hand car is
just twice the price of a brand new motorcycle. This will accelerate shift of two-wheeler
users to cars and hence affect the demand for high-end motorcycles. Therefore, in the
coming years the high end motorcycle manufacturers will have to take into consideration
prices of second hand cars, while positioning the vehicle. Nearly 80% of the motorcycle
sales are of Japanese motorcycles with the rest coming from Indian motorcycles. Eight
major players Hero Honda Motors Ltd, Bajaj Auto Ltd, LML, Kinetic Motors Limited,
Escorts Yamaha Motors Ltd, TVS LTD, Suzuki Motors and Royal Enfield control the
Indian Motorcycle industry. Among this Hero Honda is the market leader in the
Motorcycle segment with healthy market share of 48%, followed by the Bajaj Auto with
market share of around 29%. There is a full dominance of two players Hero Honda and
Bajaj Auto at present in the Indian Motorcycle industry The manufacturers of Motorcycle
manufacturer distinguish there products based on power, fuel efficiency, maintenance
requirement, Looks, style, Comfort, price etc
The Indo-Japanese segment is catered by three to five models from each of the players viz
Bajaj Auto Ltd., Hero Honda, TVS, and Escorts Yamaha. But majority of the sales is of
100cc-125cc vehicles. The motorcycle segment will be broadened on the high price front
by introducing high powered bikes priced above Rs55000. These bikes have been targeted
at college going students who have a flavor for high-powered rides. To cater to this
segment, Hero Honda launched CBZ, a 156cc four-stroke motorcycle, in March 1999.
It is priced around Rs 49000. 'Fiero' from TVS has been the one addition in this list. Bajaj
Auto is with its 220cc d pulsar, competition will hot up in the Japanese motorcycle segment
with players like LML and Kinetic Motors standing ready with their offerings. THE fiscal
year ended March 2007. May have been particularly good for the stock market, also for
two-wheeler stocks. The market's affinity for two-wheeler stocks - Bajaj Auto, Hero Honda
and TVS Motor is explained by the robust demand for motorcycles.
More players are jostling for space in the market. Global majors — Honda and Kawasaki
already have a presence in the Indian market through their local technological partners,
while Yamaha has a full-fledged production base in India.Suzuki, the other global major,
which recently severed its ties with TVS Motor Company, has now decided to set-up
manufacturing facilities in the country. Apart from international companies, there is
growing competitive pressure from existing domestic producers as well.
2. HERO HONDA MOTORS
LIMITED
2.1 Introduction
Hero Honda has a reputation of being the most fuel-efficient and the largest selling Indian
motorcycle. Its commitment of providing the customer with excellence is self-evident. A
rich background of producing high value products at a reasonable price led the world's
largest manufacturer of motorcycles to collaborate with the world's largest bicycle
manufacturer.
It was this affinity in working cultures of Honda Motor Company of Japan and the Hero
Group that resulted in the setting up of Hero Honda Motors Ltd. A relationship so
harmonious that Hero Honda has managed to achieve indigenization of over 95 percent, a
Honda record worldwide. Tactical promotions and excellent marketing helped Hero Honda
establish itself as an intelligent purchase. Its unique features like fuel conservation, safety
riding courses and mobile workshops helped the group reach in the interiors of the country.
Finance services helped facilitate purchase, as did an efficient dealer network across the
country.
Well-entrenched in the domestic market, Hero Honda Motors Ltd. turned its attention
overseas, and exports have been steadily on the rise. Over the years, the Company has
received its share of accolades, including the National Productivity Council's Award (1990-
91), and the Economic Times - Harvard Business School Association of India Award.
Hero Honda Motors Ltd is the World's largest manufacturer of motorcycles (by quantity).
Hero Honda is a 50:50 joint venture that began in 1984 between the Hero group of India
and Honda from Japan. It has been the world's biggest manufacturer of 2-wheeled
motorized vehicles since 2001, when it produced 1.3 million motorbikes in a single year.
Hero Honda's Splendor is the world's largest selling motorcycle. Its 2 plants are in
Dharuhera and Gurgaon, both in India. Third plant at Haridwar, Uttranchal is also under
commissioning stage & will start production by April, 2008. It will have world class
production facilities like Lean Manufacturing concept, more flexible lines & Stream line
material flow, within & proximity (Planning to set vendors in nearby location constituting
HHML Park). It specializes in dual use motorcycles that are low powered but very fuel
efficient.
2.2 History
The success of the Hero Group lies in the determination and foresight of the Munjal
brothers, who shared their vision with their workers and led the Group to a position where
its name has become synonymous with top-quality two wheelers.
The flame kindled by the Munjal brothers in 1956 with the flagship company Hero Cycles;
Mr. Satyanand Munjal, Mr. Brijmohan Lall Munjal and Mr. O. P. Munjal continue to carry
the torch and are actively involved in the day-to-day operations of the Hero Group.
The saga is being continued with the same zeal by the second and third generations of the
family and by the large working force of the Hero Group.
The spirit of enterprise which dominates the progress of the Group is characteristic of the
land where it all began - the City of Ludhiana, in Punjab - home to some of lndia's finest
workers and entrepreneurs.
The Hero Group is a thriving example of three generations of a family working and striving
together to ensure quality, satisfaction and extensive growth.
The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at
108.
Growth
Hero Honda experienced great growth throughout its early days. The Munjal family started
a modest business of bicycle components. By 2002 Hero Group had sold 86 million
bicycles producing 16000 bicycles a day. Today Hero Honda has an assembly line of nine
different models of motorcycles available. It holds the record for most popular bike in the
world by sales for Its Splendor model. Hero Honda Motors Limited was established in joint
venture with Honda Motors of Japan in 1984, to manufacture motorcycles. It is currently
the largest producer of Two Wheelers in the world. It sold 3 million bikes in the year 2005-
2006. Recently it has also entered in scooter manufacturing, with its model PLEASURE
mainly aimed at girls.
The growth of the Group through the years has been influenced by a number of factors
discussed below.
Just-in-Time Manufacturing
The Hero Group through the Hero Cycles Division was the first to introduce the concept of
just-in-time manufacturing. The Group boasts of superb operational efficiencies. Every
assembly line worker operates two machines simultaneously to save time and improve
productivity. The fact that most of the machines are either developed or fabricated in-
house, has resulted in low inventory levels.
In Hero Cycles Limited, the just-in-time inventory principle has been working since the
beginning of production in the unit. This is the Japanese style of production. In India, Hero
is probably the only company to have mastered the art of the just-in-time inventory
principle.
Ancillarisation
An integral part of the Group strategy of doing business differently was providing support
to ancillary units. There are over 300 ancillary units today, whose production is dedicated
to Hero's requirements and also a large number of other vendors, which include some of the
better known companies in the automotive segment.
Labor relations
In Hero Group there is no organized labor union and family members of employees find
ready employment within Hero. The philosophy with regard to labor management is "Hero
is growing, grow with Hero." Hero workers receive a uniform allowance, as well as House
Rent Allowance (HRA) and Leave Travel Allowance (LTA).
Extra benefits include medical check-ups not just for workers, but also for the immediate
family members. For the majority of the production workers, who are hired through
contractors, these benefits are out of reach. This and other problems lead to a strike and
factory occupation by 4,000 temp workers in the Gurgaon plant in spring 2006.
Diversification
Throughout the years of enormous growth, the Group Chairman, Mr. Lall has actively
looked at diversification. A considerable level of vertical integration in its manufacturing
activities has been ample in the Group's growth and led to the establishment of the Hero
Cycles Cold Rolling Division, Munjal and Sunbeam Castings, Munjal Auto Components
and Munjal Showa Limited amongst other component-manufacturing units.
Then there were the expansion into the automotive segment with the setting up of Majestic
Auto Limited, where the first indigenously designed moped, Hero Majestic, went into
commercial production in 1978. Then came Hero Motors which introduced Hero Puch, in
collaboration with global technology leader Steyr Daimler Puch of Austria. Hero Honda
Motors was established in 1984 to manufacture 100 cc motorcycles.
The Hero Group also took a venture into other segments like exports, financial services,
information technology, which includes customer response services and software
development. Further expansion is expected in the areas of Insurance and
Telecommunication.
The Hero Group's phenomenal growth is the result of constant innovations, a close watch
on costs and the dynamic leadership of the Group Chairman, characterized by a culture of
entrepreneurship, of right attitudes and building stronger relationships with investors,
partners, vendors and dealers and customers.
BOARD OF DIRECTORS
Mr. Brijmohan Lall Munjal is the founder Director and Chairman of the Company and the
$ 2.8 billion Hero Group. He is the Past President of Confederation of Indian Industry
(CII), Society of Indian Automobile Manufacturers (SIAM) and was a Member of the
Board of the Country's Central Bank (Reserve Bank of India). In recognition of his country.
Mr. Brijmohan Lall Munjal is currently on the board of the following companies Mr. Lall
was conferred the Padma Bhushan Award by the Union Government.
1923
Born
Kamalia, Pakistan
Occupatio
Chairman
n
Children 4
Website www.herogroup.com
Dr. Brijmohan Lall Munjal is founder of The Hero Group which owns Hero Honda
Motors
2.5 Group Companies
Hero Honda Motors Limited is currently manufacturing the following models of two
wheelers:
Bikes
Scooters
Healthcare:
Other efforts, under the auspices of Hero Honda Motors Limited include:
Eye Camps: With over 15,000 patients examined and about 1700 cataract operations
performed so far, these Eye Camps have also aided patients with free accommodation, food
and medicines.
Family Planning Camps: Held since 1993 at the Civil Hospital, Rewari and Bawal, these
camps offer monetary incentives to the masses to adopt family planning measures. Blood
Donations Camps: These camps are being organised on a regular basis since 1992. 464
units have been donated to Indian Red Cross Society in the last camps.
ENT Check up Camps: Conducted by specialists from AIIMS, these camps have been
organized-since-November-1997.
Heart Check-up Camps: Since July 1988, free camps are being organized in collaboration
with Escorts Heart Institute and Research Centre, where specialized diagnosis methods like
Echocardiography and ECG are used.
Rehabilitation Camps: Conducted with the assistance of the District Rehabilitation Centre,
Red Cross Society, Rewari, these camps help physically challenged villagers to rehabilitate
and re-employ themselves. Many patients have found a new lease of life on account of the
physical-aids-given-to-them.
Dermatology Camps: Held for the first time in October 1999, the camp saw around 460
patients, where 365 patients underwent treatment for various skin ailments. Furthermore,
three Acupressure camps were also held in January 2000 where 450 persons were offered
treatment-and-advice.
School Health Programmes: The Raman Munjal Vidya Mandir was the first school to
participate in this programme. Students underwent annual medical check up to detect
nutritional deficiencies and were advised on improving and monitoring personal hygiene,
immunisation as well as prevention & control of communicable diseases.
Immunisation Programmes: All Hero Honda employees and their families benefit from
immunisation programmes for Hepatitis and Typhoid fever. More than 6,000 people have
been immunised so far. The company is also an active participant in the National Pulse
Polio-immunisation-programmes.
In-house Health Activities: The company takes a keen interest in the welfare of its
employees with the dissemination of health information among them by means of lectures,
group sessions, printed material, audio visual aids, display boards, etc.
AIDS Awareness Programmes: In association with CIL Hero Honda has done immense
work to promote awareness about AIDS.
Education:
The Raman Kant Munjal Trust fund, instituted in 1992, has helped set up a primary school
in Dharuhera. Today the Raman Kant Munjal Vidya Mandir has grown into one of the best
senior secondary schools in Daruhera. The school is affiliated to the Central Board of
Secondary Education.
Engineering:
Innovative engineering for Hero Honda means using the right and specifically designed
technology that meets the Indian consumer's requirements as well as testing road
conditions. This is exemplified by Honda's reliable 4 stroke engines and their amazing fuel
efficiency. No wonder then, that Hero Honda has manufactured 4-stroke engines ever since
its inception in 1985. Hero Honda has received ISO 14001 certification for Environmental
Conservation.
Environment:
Hero Group Companies have strived to provide environmental friendly products as well as
manufacturing units. Hero Honda's "We Care" programme was initiated with a focus on
environmental conservation and awareness, and now extends its influence to multi-
dimensional activities, for the socio-economic betterment of society.
The 4-stroke Hero Honda motorcycles undergo a high technology process to meet the most
demanding of pollution norms at every level. Hero mopeds and motorcycles having the
lowest pollution emission levels in their categories on Indian roads
Year Event
3.1 Introduction
Bajaj Auto is a major Indian automobile manufacturer. It is India's largest and the world's
4th largest two- and three-wheeler maker. It is based in Pune, Maharashtra, with plants in
Waluj near Aurangabad, Akurdi and Chakan, near Pune. Bajaj Auto makes and exports
motorscooters, motorcycles and the auto rickshaw.
The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946.
Over the last decade, the company has successfully changed its image from a scooter
manufacturer to a two wheeler manufacturer. Its product range encompasses Scooterettes,
Scooters and Motorcycles. Its real growth in numbers has come in the last four years after
successful introduction of a few models in the motorcycle segment.
The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.
Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading Corporation
Private Limited. It started off by selling imported two- and three-wheelers in India. In
1959, it obtained license from the Government of India to manufacture two- and three-
wheelers and it went public in 1960. In 1970, it rolled out its 100,000th vehicle. In 1977, it
managed to produce and sell 100,000 vehicles in a single financial year. In 1985, it started
producing at Waluj in Aurangabad. In 1986, it managed to produce and sell 500,000
vehicles in a single financial year. In 1995, it rolled out its ten millionth vehicle and
produced and sold 1 million vehicles in a year.
3.6 Products
Some of the models that Bajaj makes (or has made) are:
Scooters
Bajaj Kristal DTSi
Upcoming Models
Bajaj Blade
Bajaj Sonic
Pulser135Cc
Discontinued Models
Bajaj Sunny
Bajaj Chetak
Bajaj Cub
Bajaj Super
Bajaj Wave
Bajaj Legend
Bajaj Bravo
Kawasaki Eliminator
Bajaj Boxer
Bajaj Caliber
3.7 SOCIAL RESPONSIBILY
Bajaj in the community: Bajaj Auto is committed to nation-building and contributing to
the uplift and development of the weaker sections of society. This is a legacy of our
founders, Jamnalal and Kamalnayan Bajaj. Because of their close links with Mahatma
Gandhi and the freedom struggle, they sincerely believed that as businessmen they were
trustees of the community and the profits they earned must be ploughed back for the
development of the community.
Jankidevi-Bajaj-gram-Vikas-Sanstha-(JBGVS):
Bajaj Auto’s philanthropic activities among the rural poor are carried out by a trust, the
Jankidevi Bajaj Gram Vikas Sanstha (JBGVS). This trust was formed 15 years ago by
Ramakrishna Bajaj in memory of his mother, Jankidevi Bajaj. JBGVS acts as a catalyst to
development at the grass root level in 32 villages around Bajaj Auto’s Pune and
Aurangabad plants.
Vision-Statement-of-JBGVS:
JBGVS is a non-political and secular organization, which strives to improve the quality of
life of the rural poor by creating self employment opportunities at the grass-root level,
through the use of appropriate technologies, in harmony with nature.
Samaj-Seva-Kendrass:
Social activities in semi urban areas on the outskirts of Pune are undertaken by the Samaj
Seva Kendra (SSK), set up by Bajaj Auto in 1975. SSK provides local industrial workers
with opportunities for self development, education, healthcare, sports and recreation. It
involves local institutions and municipal bodies, local Rotary Clubs and NGOs in its
activities.
SSK has helped empower wives of factory workers by providing them earning
opportunities. Last year, its Laxmi Mahila Cooperative Credit Society (started in 1990)
earned Rs 1 Lakh by supplying chapattis, prepared by its members, to industrial canteens.
SSK also organises weekly medical consultation and health awareness programmes, child
and adult education, vocational training and personality development programmes, leisure
and recreational facilities for women.
The hospital has state-of-the-art facilities like a cardiac catheterisation lab, advanced spiral
computer topography (CT) scanner, a colour Doppler — all from GE Medical Systems — a
Mac 5000-series stress test machine, a holter monitor from GE-Marquette, ultra-touch
dialysis equipment from Baxter and an advanced reverse osmosis plant.
A well-equipped, 26-bed multi-specialty intensive care unit (ICU) provides emergency and
post-operative care that is on par with the best in the country.
The hospital has a critical-care ambulance (a hospital on wheels) with a defibrillator,
portable ventilator, pulse oximeter, ECG machine and Glucometer. The ambulance is
attended round the clock by a physician, a nurse and support team of qualified paramedics.
The hospital’s facilities range from spacious and hygienically maintained general wards
with all essential amenities to large deluxe rooms furnished with sofas, telephones,
refrigerator, television and a small kitchenette. For relatives of patients, the hospital provides
guesthouse-facilities-and-a-professionally-managed-cafeteria.
.
The large hospital campus with its wide open spaces, pleasing landscape, ample parking are
meticulously maintained.
The hospital offers a specially designed health insurance and annual medical check-up plan
in association with Bajaj Allianz General Insurance, which provides cash-less
hospitalization and treatment.
71972
The Bajaj Chetak is introduced.
11971
The three-wheeler goods carrier is introduced
1970
Bajaj Auto rolls out its 100,000th vehicle
11960
Bajaj Auto becomes a public limited company. Bhoomi Poojan
of Akurdi Plant
41959
Bajaj Auto obtains licence from the Government of India to
manufacture two- and three-wheelers
41948
Sales in India commence by importing two- and three-
wheelers.
4. CONSUMER BEHAVIOUR
4. CONSUMER BEHAVIOR
4.1 Introduction
The actions a person takes in purchasing and using products and services,
including the mental and social processes that precede and follow these actions. The
behavioral sciences help answer questions such as:
Why people choose one product or brand over another, how they make these choices, and
how companies use this knowledge to provide value to consumers.
A consumer is a living bundle or needs and to a great extent he dictates the nature of
products to be made, distribution channels to be used and prices. It is paramount for the
marketers to know the consumer needs and wants and what he is ready to pay for them.
This helps in deciding about the marketing mix i.e. product, price, place and promotion.
The study of consumer behaviour offers the marketers an insight into the purchase
decision-making process. Accordingly, he can chalk out a strategy so as to reap maximum
benefit from it.
Problem Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Problem Recognition: -
The starting point of consumer buying process is the Problem recognition. Problem
recognition is the awareness of the want or a desire or a consumption problem without
whose satisfaction the consumer feels restless and tension charged i.e. he or she feels that a
desire or want has arisen, which has to be satisfied.
Information Search: -
A need aroused and recognized can be satisfied only when the product or service is
available. Consumer interest is indicated in the consumer’s willingness to seek further
information about product or service. Since there are varieties of products and he seeks to
have maximum satisfaction, he searches relevant information. Consumers have many
alternative sources of information to tap such as friends, relatives, neighbors, salesman,
dealers, advertisements etc.
Evaluation of Alternatives: -
Its consumer’s deep interest in the product or service that paves the way for evaluation. The
evaluation is the stage of the mental trial of the product. Once he evaluates, he develop the
intention to accept or reject a given product or service. The final purchase depends on the
relative strength of the positive intention to buy. In evaluation of alternatives many values
are taken into consideration like product characteristics, brand image etc.
Purchase Decision: -
It’s the positive intention of the consumer that leads to a purchase decision. Decision to
purchase implies consumer commitment for a product or a service. Practically it is the stage
in which consumer is taken into a purchase of the product which is selected by the
consumer in the earlier stages.
Post purchase behaviour reaction stands for the behaviour of a consumer after a
commitment to product has made. This post purchase behaviour may be a set of positive or
negative feelings. Positive feelings go toward satisfaction and negative feelings go for
dissatisfaction
o Personal Factors: -Personal factors are related to individual traits and personality
characteristics. They differ form person to person and affect the consumer perception,
motivation and attitude formation.
3. Brand Image: There is cut throat competition in the motor cycle market. The
leaders in this arena are Hero Honda and Bajaj. Brand preference and consumer regarding
quality; looks distribution networks, after sale services and supporting network.
5. OBJECTIVE OF
STUDY.
5. OBJECTIVE OF STUDY
To know the Factors which affect the consumer behavior regarding the motor-cycle
purchase.
1 Research work is carried out in the local area of Banur , Distt.Patiala only, so the
findings may not applicable to the different other parts of the Country because of Social
and Cultural differences.
Secondary Data:
I have also collected the secondary data for research work, which I have taken from
Bajaj and Hero Honda’s internal records, trade and business publications, and various sites
related to Bajaj and Hero Honda.
SAMPLE DESIGN:
Sample design is that part of universe, which we select for the purpose of
investigation. A sample should exhibit characteristics of the universe. The researcher must
decide the way of selecting sample. Sample can be either probability samples or non-
probability samples. So here in this project I have taken the non- probability samples of the
research works.
SAMPLE FRAME
It is also known as “Source of list” from which sample is to be drawn. The sample
frame is as following: Chandigarh,Banur.
SAMPLE PROCEDURE
The sampling design, I have chosen to decide the sample for study is based on convenient
sampling.
DATA COLLECTION
Primary Data:
Whatever the data I have collected, it is primary data which was collected with help
of a questionnaire by asking directly to the consumers.
a) Questionnaire:
For the above purpose and to get a better insight I needed to conduct a consumer
survey. I gave questionnaire to respondent so that they can fill it and return to me. I
preferred questionnaire method because it does not pressurize the consumer and in this way
he gives correct information about the questions, which are asked to him in the
questionnaire.
b) Secondary Data:
I have also collected the secondary data for research work, which I have taken from
Bajaj and Hero Honda’s internal records, trade and business publications, and various sites
related to Bajaj and Hero Honda
8. FINDINGS
8. Findings
1. Income Group (Monthly In Rupees)
Income
Group(Monthly 0-10,000 10,000-15,000 15,000-20,000 20,000 or More
in Rupees)
Number of 49 21 22 8
Respondents
60 49
Number of Respondents
50
40
30 21 22 S eries 1
20 8
10
0
0-10,000 10,000- 15,000- 20,000
15,000 20,000 or M ore
In co m e G ro u p (M o n th ly in Ru p e e s)
From the above chart it is clear that majority of respondents i.e. 49 have motorcycle whose
monthly income lies between 0- 10,000 Rupees. 21 respondents lies between Rs.10,000-
15,000 income groups, 22 respondents lies between income group 15,000-20,000 Rupees
and very small group of respondents who have motorcycle i.e. 8 lies between income
group more than Rupees 20,000.
50 44
40
Number of Respondents
30 22 18
16 S e ries 1
20
10
0
t
n
en
al
an
ma
ion
ud
sm
ce
ss
St
es
rvi
ofe
Se
sin
Pr
Bu
C a te g o ry o f S o c ie ty
In the above chart it shows the categories of society that include 16 respondents are
professional (include Teachers, Lawyers, Doctors, CA`s etc.), 22 respondents are students,
44 respondents are serviceman and 18 respondents are those who run their own business..
70
59
60
50 41
40
Series1
30
20
10
0
hero Honda Bajaj
Response
Out of 100 respondents, 59 have Hero Honda motorcycles and rest of them i.e. 41
respondents has Bajaj motorcycles. It shows that majority of respondents like Hero Honda
Company motorcycles.
4. Which of the following motorcycle you have?
37
40
30 19
20 14 11 Series1
5 6 8
10
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or
a
r
Z
s
Sp s
lso
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er
in
CB
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at
P
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Pu
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ss
Pa
Motorcycle`s Name
50 45
40
Number of Respondents
30 25
21
S e ries 1
20 9
10
0
0 -1 Y e ar 1 -3 3 -5 Y e a r M o re
Y e a rs th a n 5
Y e a rs
Ye a rs
Out of the 100 respondents 45 respondents are those who have been driving their
motorcycle for last 3 years , 21 respondents are those who recently bought the
motorcycle,, 25 respondents are those who have been driving their motorcycle for last 5
years and only 9 respondents are those who have been driving their motorcycle for more
than last 5 years.
6. Which factor influences you to buy this motorcycle?
Brand Image
Functional
Performanc Price
e, 8 Brand
Image, 25 Status
Comfort, 13
Product Design
Resale
Value, 19 Price, 16 Resale Value
Product Status, 8
Comfort
Design, 11
Functional
Performance
In the above chart 19 respondents are those who get influenced by good resale value in the
market, 11 respondents get influenced by product design, 8 respondents bought motorcycle
due to the status symbol, 16 respondents bought due to the price factor, majority of
respondents i.e. 25 bought due to the brand image and only 8 respondents consider
functional performance while buying the motorcycle and 13 respondents bought
motorcycle due to the conformability of motorcycle.
7. For what purpose you have taken motorcycle?
38
40
30 24 20
Number of Respondents
18
20 S eries 1
10
0
ng
s
g
ing
es
oin
idi
sin
Go
eG
yR
Bu
ge
Jo
fic
lle
Of
Co
P u rp o se
Response Yes No
Number of Respondents 92 8
100 92
Number of Respondents
80
60
Series1
40
20 8
0
Yes No
Re sponse
Above chat shows that 92 respondents are those who are fully aware of all the models of
Hero Honda and Bajaj company’s motorcycles. Only 8 respondents are those who are not
fully aware about all the models available by these two companies.
9. What is source of information that made you opt for this motorcycle?
32 33
35
30
25 17
20 10 Series1
15 8
10
5
0
TV Ads
Friends and
Suggestions
Newspapers
Magazines
Bike Dealer
Relatives
Ads
Source of Information
The above chart shows that sources of information from where the respondents get
information before the purchase of motorcycle. 32 respondents said that they get
information from TV Ads, 8 respondents get information from Newspaper, 10 respondents
get information from Magazines, 33 respondents get information from Friends and
Relatives, 17 respondents get information from Bike Dealers.
10. How much are you satisfied with your present motorcycle?
50 43 40
40
30 16 Series1
20
10 0 1
0
Average
Dissatisfied
Satisfied
Dissaisfied
Very Much
Very Much
Satisfied
Level of Satisfaction
The above chart shows the level of satisfaction of respondents. 43 respondents said
that they are very much satisfied with their present motorcycle, 40 respondents are only
satisfied, 16 respondents are those whose level of satisfaction regarding their present
motorcycle is average and there is no respondent who is very much dissatisfied with their
present motorcycle and one respondent is there who is dissatisfied with their present
motorcycle.
11. Do you find finance schemes offered by motorcycle companies worthwhile? If yes
please specify the name of the company?
38 37
36
Number of Respondents
34
32 S e rie s 1
32 31
30
28
H e ro H o n d a B a ja j No
R e sp o n se
Out of 100 respondents, 69 respondents said that company’s financial schemes are
worthwhile and 31 respondents said that financial schemes offered by the company were
not worthwhile. Out of 69 respondents who are satisfied with financial schemes of
company’s it include 37 consumer of Hero Honda and 32 consumers of Bajaj.
12. Which factor do you suggest the company should lay emphasis to enhance its
sales?
30 31
35
30 19 20
25
20 Series1
15
10
5
0
Improvement
Advertiseme
After Sale
nt Compaign
Product
Services
design
Quality
Factor
At the end we can say that India have very good position in two-wheeler industry. Bajaj
and Hero Honda are the two major player of two wheeler industry. But the Hero Honda’
volume is more from Bajaj. In Hero Honda motorcycle’s “Splendor” is the most saleable
motorcycle. According to the research in local areas the Brand Image of the motorcycle
more influences the consumer behavior. Consumer mostly gets information for buying the
motorcycle from T.V ads, friends and relatives .Consumers are very much satisfied with
their current motorcycle. They have no planning to change their present motorcycle. HERO
HONDA more satisfies the customer with comparison to BAJAJ motorcycles. Because
Bajaj have less resale value than Hero Honda. And its pick up is not good. At the end we
can say that the consumer wants that both companies should improve their present Quality
of motorcycle and after sale services.
10. SUGGESTION
Suggestions
• Both the companies should build-up their services centers in small towns as well as
distant areas for the better of their services.
• Bajaj should launch one bike which could be considered as durable for e.g. as in
case of Hero Honda, Splendor is one model which is durable and has been selling for long
time.
• Both companies should work on the concept of most economical bike for lower-
income group. It is concluded from the survey, such people wants a bike which costs up to
Rs 25,000-30,000 approximate.
• Both companies should provide consumer with all the financial resources they need
(Include low interest loan schemes, exchange offers, installment system etc) under one roof
i.e. authorized dealer center.
• There should be original spare parts available at the authorized services centers.
• Well qualified and experienced staff should be recruited for better services to the
customers.
11. ANNEXURE
BIBLIOGRAPHY
Web Sites
1 www.Indiainfoline.com
2 http://www.herohonda.com
3 http://www.bajajauto.com
4 http://www.answers.com/topic/hero-honda
Book
Kotler Philip,” Buying Behavior Process”, Marketing Management, Pearson
Education, Eleventh Edition,
QUESTIONNAIRE
QUESTIONNAIRE
Dear Respondent,
This survey will help us understand consumer behaviour for motorcycles. Please
note that there is no right or wrong answers to this questionnaire. It will only take 10
minutes of your time.
Name _____________
Age _____________
Q8: Are you aware of all the models of motorcycles made available to people by these
two company’s (Bajaj and Hero Honda)?
(a) Yes (b) No
Q9: Which are the sources of information that made you opt for this bike?
(a) TV Ads (b) Newspaper Ads
(c) Magazines (d) Friends and Relatives
(e) Bike Dealers
Suggestions
Q10: How much are you satisfied with your present motorcycle?
(a) Very Much Satisfied (b) Satisfied
(c) Average (d) Dissatisfied
(e) Very Much Dissatisfied
Q12: which factor do you suggest the company should lay emphasis to enhance its sales?
(a) Quality Improvement (b) Product design
(c) Advertisement Campaign (d) After Sale Services