Introduction of two wheeler automobile sector:

Automobile is one of the largest industries in global market. Being the

leader in product and process technologies in the manufacturing sector,
it has been recognized as one of the drivers of economic growth. During
the last decade, well directed efforts have been made to provide a new
look to the automobile policy for realizing the sector's full potential for
the economy. Aggressive marketing by the auto finance companies have
also played a significant role in boosting automobile demand, especially
from the population in the middle income group.

1.2 Objective of Study:

The main objective is to find out the current trend going on in the
industry i.e. (about the product, piece, place and promotion). Other
objectives are as follows:
To know the image of product in the mind of consumer. 


To compare the level of satisfaction before purchasing

and after purchasing the 
 bike. 


To find out where people want to see the promotion

schemes 


To find out suitable location and preferred by consumer 


To know the most popular media for advertisement 


To check the loyalty of the consumer towards the Hero

Honda brand 


To know the most motivating factor for purchasing the

bike 


To know the preferable price from the customer 


Evolution of Two-wheeler Industry in India:
Two-wheeler segment is one of the most important components of the
automobile sector that has undergone significant changes due to shift in
policy environment. The two-wheeler industry has been in existence in
the country since 1955. It consists of three segments viz. scooters,
motorcycles and mopeds. In India there are some MNC’s and Indian
company dealing in automobile sector. The main key players who are
dealing in this sector are Hero Honda, Bajaj, Yamaha, Honda, and TVS.
Hero Honda is the biggest player in this sector in India as well as in the
world and playing a very important role in two wheeler automobile
sector. Hero Honda, Bajaj and TVS are the Indian companies and
Yamaha & Honda are international automobile brand.

Bajaj is the first Indian two wheeler automobile company

in the market since 1945 with the name M/s Bacharj trading corporation
private limited. In 1959 M/s Bacharj trading corporation private limited
change its name as Bajaj Auto Ltd. Bajaj Auto obtains license from the
Government of India to manufacture two- and three-wheelers vehicles in
1959.

Hero Honda Motors Limited was established in 1984, as a

joint venture between India's Hero Group (world's largest bicycle
manufacturers) and Japan's Honda Motor Company. And created the
world's single largest two wheeler company and also one of the most
successful joint ventures worldwide. During the 80s, Hero Honda
became the first company in India. Over 19 million Hero Honda two
wheelers running on Indian roads today.
 TVS Motors is the third largest company in the two-
wheeler industry with a market share of 16%. Infect, it is the only Indian
company without a foreign collaboration in the two-wheeler industry.
When the company opted out of the collaboration with Suzuki in 2002,
many believed that TVS was headed towards extinction. But the
company proved the doomsayers wrong and came out with a very
successful `TVS Victor'. TVS Motors Ltd. originally incorporated in
1982 to manufacture two-wheelers in collaboration with Suzuki Motors
of Japan, TVS was one of the leaders in two-wheeler industry.

Honda motors of Japan is not a new name in the two

wheeler scenario in the country, they were in a tie up with the Firodias
owned Kinetic group. However in the late 90s they parted ways after
problems arose over issues like introduction of new models, advertising
expenditure, marketing strategies and other related issues. In the mid 80
Honda motors of Japan joined hands with the largest bicycle maker of
India the Hero cycles to create Hero Honda which in a couple of decades
or so have gone on to become the single largest motorcycle company in
the world. Though Honda has come on its own on the Indian market yet
it will be providing technological support to Hero Honda for the next ten
years. Thus presenting a unique situation in which the company will be
in direct competition with the company which it has been associated for
nearly two decades. Honda Motorcycles and Scooters India limited, a
100% subsidiary of Honda motor company Japan eventually entered the
Indian market with Honda Unicorn in 2004.
Basic Manufacturing Process Raw Materials
The primary raw materials used in the manufacture of the body of
motorcycle are metal, plastic and rubber. The motorcycle frame is
composed almost completely of metal, as are the wheels. The frame may
be overlaid with plastic. The tires are composed of rubber. The seat is
made from a synthetic substance, such as polyurethane. The power
system consists of a four-stroke engine, a carburetor to transform
incoming fuel into vapor, a choke to control the air-fuel ratio,
transmission, and drum brakes. The transmission system contains a
clutch, consisting of steel ball flyweights and metal plates, a crankshaft,
gears, pulleys, rubber belts or metal chains, and a sprocket.
The electrical system contains a battery, ignition wires and coils, diodes,
spark plugs, head-lamps and taillights, turn signals and a horn.
A cylindrical piston, made of aluminum alloy (preferred because it is
lightweight and conducts heat well), is an essential component of the
engine. It is fitted with piston rings made of cast iron. The crankshaft
and crankcase are made of aluminum. The engine also contains a
cylinder barrel, typically made of cast iron or light alloy.
The Manufacturing Process
Raw materials as well as parts and components arrive at the
manufacturing plant by truck or rail, typically on a daily basis. As
part of the just-in-time delivery system on which many plants are
scheduled, the materials and parts are delivered at the place where
they are used or installed. 


Manufacturing begins in the weld department with computer-

controlled fabrication of the frame from high strength frame
materials. Components are formed out of tubular metal and/or
hollow metal shells fashioned from sheet metal. The various
sections are welded together. This process involves manual,
automatic, and robotic equipment. 


In the plastics department, small plastic resin pellets are melted and
injected into molds under high pressure to form various plastic
body trim parts. This process is known as injection molding. 


Plastic and metal parts and components are painted in booths in the
paint department using a process known as powder-coating (this is
the same process by which automobiles are painted). A powder-
coating apparatus works like a large spray-painter, dispersing paint
through a pressurized system evenly across the metal frame. 


Painted parts are sent via overhead conveyors or tow motor (similar to
a ski lift tow rope) to the assembly department where they are
installed on the frame of the motorcycle 


The engine is mounted in the painted frame, and various other

components are fitted as the motorcycle is sent down the assembly
 line 


Wheels, brakes, wiring cables, foot pegs, exhaust pipes, seats,

saddlebags, lights, radios, and hundreds of other parts are installed
on the motorcycle frame. A Honda Gold Wing motorcycle, for
example, needs almost as many parts to complete it as a Honda
Civic automobile. 


A motorcycle engine. 

Accessories and Finished Products
Side mirrors 


Lock box 


Tool box 


Seat cover 


Fog light 


Shocker lock 


Leg guard 


Helmet lock 


Stephaney for scooters 


Foot rest 


Promotional tools or promotion mix

There are various forms or mediums through which can advertise.

A. Broadcast Media:
Television Radio
 Cinema
B. Print media:
Newspapers Magazines Leaflets
C. Outdoor media:
Posters and billboards.


DISCOUNTS/OFFERS:
The company has started giving discounts and other offers to the
customers on the purchase of a new bike, for instance, with the
World Cup offer, in which the consumer was to get a 1 gm gold
coin with every purchase.
But after all these schemes and benefits may be because of cut-
throat competition in the segment with heavyweight competition
such as Bajaj, kinetic, Yamaha, and TVS the company (HERO
HONDA) officially says:
“Our aim is to proactively and consistently deliver value to the
customer. We are giving back to the customer after becoming
successful. Most companies give discounts only when their
products are not doing well in the market. There is lost of
competition in the segment, especially from Bajaj. But the reason
for Hero Honda’s success it that we are consumer-focused while
other companies such as Bajaj tends to be more competitor-
focused.

BRAND AMBASSADORS :
Hrithik, Saurav Ganguly, brand ambassadors of Hero-Honda (Free
press journal, Mumbai, 4th December 2000)
Hero Honda, a leading manufacturer of motorcycles, has roped in
film actor Hrithik Roshan and captain of Indian Cricket team
Saurav Ganguly as its brand ambassadors for three years till 2003.
They would endorse the company products, attend corporate and
brand events and help promote its “We care” campaign comprising
safely riding, environment and friendliness.
Hrihik and Gauguly said they were glad to be associated with Hero
 Honda. Honda has embarked upon an ambitious project to achieve
sale of one million bikes this year with a market share of 47 per
cent. The turnover would be in excess of Rs. 3000 crore.
In October alone, 11, 22,000 motorcycles have been sold.
Compared to 66,063 units in the corresponding period. Last year,
the increase in sales is a phenomenal 69 per cent. Cumulative sales
jumped up by 41.58 per cent to 5.72 lacks units during April-
October as against 4.04 lacks units in the same period last year.

No. of players in the two wheeler automobile sector (India): 


Hero Honda motors ltd.

Bajaj auto ltd.


TVS motors company ltd

Yamaha motors India 


Honda motorcycle and scooters India

Royal Enfield

Suzuki Motors


LML 




Hero Honda Motors Limited
Hero Honda Motors Limited was established in 1984, as a joint venture
between India's Hero Group (world's largest bicycle manufacturers) and
Japan's Honda Motor Company. In 1985 production began with the
launch of its first motorcycle, the CD100, which gave 80 km to the liter.
In 1987 the engine plant was started and in 1989 the Company produced
its 3,00,000th motorcycle. In 2001 Hero Honda manufactured its
50,00,000th motorbike. Hero Honda has a reputation of being the most
fuel-efficient and the world's single largest two wheeler Company. Shri
Brijmohan Lall Munjal is the chairman and managing director of this
Company.
As early as in 1960’s very few Indian bicycle manufacturers were
interested in exports. However, the hero groups foray into the overseas
markets in 1963 pioneered Indian exports in the bicycle segment. It was
more prompted essentially by the need to remain attuned to the global
marketplace. While initial exports were restricted to Africa and the
middle east, today more than 50% of the exports from Hero Cycles Ltd.
Meet the demands of sophisticated markets in Europe and America. This
is primarily because of appropriate product development and excellent
quality that hero offers..
Hero Honda has grown like no other company in the auto business.
Several times in the path, savvy observers have insisted that it has grown
just too big and that no company its size can continue to show growth
rates. But Hero Honda has ignored that opinion and continued growing
at the place it has set many years ago.
Hero Honda today faces more competitor than it has ever in the history.
Now that is the undisputed two wheeler Numero Uno in the country.
Every single two wheeler manufacturer in India if looking market share
away from it. More over for the first time there are so many four- stroke
challengers in the market. And Hero Hondas best selling products are
ageing.
STRENGTHS:

Hero Honda introduced First stroke bike in the Indian market. 


Hero Honda gives 80 Km/Liter Avg. 


Huge sale network (3500 Dealers). 


Better sale service. 


It has the highest share in automobile sector. 


It has a good brand image. 


It gives better service for customers. 


Best customer preference. 


Debt equity ratio is only 0.1. 


The company has clarified about its intention of setting a

third plant in addition to 
 its existing two plants. The company has
embarked upon a green field expansion plan and has earmarked Rs
2 bn for the same. It should be noted that the company has a strong
cash flow position; it generated Rs 9 bn from operation in FY04
and is virtually a debt free company. 


Bajaj Auto Ltd.

Since 1986, there is a technical tie-up of Bajaj Auto Ltd. with Kawasaki
Heavy Industries of Japan to manufacture state-of-art range of latest
two-wheelers in India. The JV has already given the Indian market the
KB series, 4S and 4S Champion, Boxer, the Caliber series, and Wind125
Kawasaki Heavy Industries is a Fortune 500 company with a turnover of
USD 10 billion (Rs. 45,840 crore). It has crafted new technologies for
more than hundred years. The technologies of KHI have redefined space
systems, aircrafts, jet engines, ships, locomotive, energy plants,
automation system, construction machinery, and of course high
reliability two-wheelers
KHI has given the world its legendary series of 600-1200cc Ninja and
1600 Vulcan bikes. Straight from its design boards, the Kawasaki Bajaj
Eliminator, India's first real cruiser bike, redefines the pleasure of
"biking" in looks as well as performance.

WEAKNESS:
Hero Honda introduced First stroke bike in the Indian market.



Hero Honda gives 80 Km/Liter Avg. 


Huge sale network (3500 Dealers). 


Better sale service. 


It has the highest share in automobile sector. 


It has a good brand image. 


It gives better service for customers. 


Best customer preference. 


 Debt equity ratio is only 0.1. 


The company has clarified about its intention of setting a

third plant in addition to 
 its existing two plants. The company has
embarked upon a green field expansion plan and has earmarked Rs
2 billion for the same. It should be noted that the company has a
strong cash flow position; it generated Rs 9 bililion from operation
in FY04 and is virtually a debt free company. 


Corporate Profile of Bajaj

'Inspiring Confidence,' the tagline, has build up confidence, through
excitement engineering, not only to domestic consumers but also
internationally. Established just eight decades back in 1926 by Jamnalal
Bajaj, the company has been vested with India's largest exporter of two
and three wheelers, 196,710 units in 2004-05, a great 26 per cent jump
over the previous year.
Bajaj Auto Ltd. sales have increased by approximately 21 per cent in the
year 2004-05, which exceeds Rs 65.4 billion, a record in the history of
the company. The gross operating profit stands at Rs. 9.3 billion, again a
record. The profits after tax of the BAL are close to Rs. 7.7 billion, and
the pre-tax return on operating capital is at an impressive 80 per cent.
The strength of the company is its quality products, excellence in
engineering and design, and its ability to delight the customers. The
Pulsar, introduced in November 2004, is continually dominating the
premium segment of the motorcycle market, helping to maintain the
market superiority. Discover DTSi, one more successful bike on Indian
roads, is in the 'value' segment of the motorcycle market. It incorporates
a high degree of power with fuel efficiency of a 100 cc motorcycle.
BAL is committed to prevention of pollution, continual improvement of
environment performance and compliance with all environmental
legislation and regulations. They always believe in providing the
customer 'value for money' and keep an special eye upon quality, safety,
productivity, cost and delivery.

BAJAJ AUTO’S MISSION:

We at Bajaj Auto continue to firmly believe in providing the customer
Value for money, for years through our products and services. This we
shall maintain and improve,
In our decision making, quality, safety and service will be given as much
consideration as productivity, cost and delivery.
Quality shall be built into every aspect of our work life and business
operations. Quality improvements and customer satisfaction shall be the
responsibility of every employee.

TVS Motors Ltd. Profile

TVS Motors Company, a leading two wheeler company began with the
vision of the founder of the Sundaram Clayton Group, the late T.S.
Srinivasan - 'to design, develop and produce an affordable moped for the
Indian family.
This vision was realized in 1980 when TVS 50, India's first two-seater
moped rolled out of the factory at Hosur in Tamil Nadu, Southern India.
A byword for ruggedness and reliability, the TVS 50 proved to be a
promising success and paved the way for many successes for TVS
Suzuki ever since.
TVS, the first in the country to introduce computerization, achieve high
productivity, low cost and consistent high quality, now included
extensive programme to install computers at all workstations.

Background
Originally incorporated in 1982 to manufacture two-wheelers in
collaboration with Suzuki Motors of Japan, TVS was one of the leaders
in two-wheeler industry. However, disagreement on several aspects
including development of TVS brand and exports lead to severance of
ties with the joint venture partner in 2002. This forced the company to
develop its own R&D expertise and commit itself to sizeable investment.
It has presence in all the segments viz. motorcycle, scooterettee and
moped. TVS Scooty (scooterettee) and TVS Victor (Executive segment -
motorcycle) are its key brands. The company has also launched 2 new
fuel-efficient bikes - `Centra' and `Star'.

HONDA MOTORCYCLE & SCOOTER INDIA (Pvt.)

Ltd.
Honda is the world's largest manufacturer of 2-wheelers. Its symbol, the
Wings, represents the company's unwavering dedication in achieving
goals that are unique and above all, conforming to international norms.
These wings are now in India as Honda Motorcycle & Scooter India Pvt.
Ltd. (HMSI), a wholly owned subsidiary of Honda Motor Company
Ltd., Japan. These wings are here to initiate a change and make a
difference in the Indian 2-wheeler industry. Honda's dream for India is
to not only manufacture 2-wheelers of global quality, but also meet and
exceed the expectations of Indian customers with outstanding after sales
support.
About Honda Motorcycle & Scooter India Pvt. Ltd.
Honda Motorcycle & Scooter India Pvt.
Official Name
Ltd.
Established 20th Aug, 1999
Place Manesar, District Gurgaon, Haryana, India
Investment Rs. 300 Crore
Representative Mr. Shinji Aoyama, President & CEO
Factory Location Manesar, District Gurgaon, Haryana, India
Production Capacity 10,000,00 Units per Year
Honda's dream for India is to not only manufacture 2-wheelers of global
quality; but also meet and exceed the expectations of Indian customers
with outstanding after sales support. They aim to produce
technologically superior, efficient and reasonably priced 2-wheelers,
with Honda tested technology, backed up with after sales service of
Honda's global standard.

CORPORATE PROFILE
Honda Motor Co., Ltd., operates under the basic principles of "Respect
for the Individual" and "The Three Joys"-commonly expressed as The
Joy of Buying, The Joy of Selling and The Joy of Creating. Respect for
the Individual" reflects our desire to respect the unique character and
ability of each individual person, trusting each other as equal partners in
order to do our best in every situation. Based on this foundation of
Respect for the Individual, "The Three Joys" expresses our belief and
desire that each person working in, or coming into contact with our
company, directly or through our products, should share a sense of joy
through that experience.
In line with these basic principles, since its establishment in 1948,
Honda Motor Co., Ltd., has remained on the leading edge by creating
new value by providing products of the highest quality at a reasonable
price, for worldwide customer satisfaction. In addition, the Company has
conducted its activities with a commitment to protecting the
environment and enhancing safety in a mobile society.
Strength
Reliable brand name 


Affordable price 


Honda have a big share of market in scootreats segment 


Honda is the first company who introduced the

technology of central shock 
 absorption in India 


Honda having high tech engines 


HMSI is the subsidiary company of Honda Motors Ltd.

Which is the largest 
 company in the proposed sector 


Weakness 
 Less number of service center


Market share very less as compare to there competitor

Spares parts are not easily available


Low product range


Maintenance cost is very high 


Opportunity 


Increase in product range


Untapped market above 180 cc in motorcycles.


More maturity and movement towards higher-end motorcycles

Honda can be use brand image of Hero Honda 

Yamaha Motor India (YMI)
Holding the true spirit of commitment to customer satisfaction - Yamaha
Motor India is enriching lives of people with the same ingenuity and
enthusiasm as its parent company - Yamaha Motor Corporation, Japan.
Having operated in India as technology provider for almost two decades,
YMI was incorporated in August 2001 as a 100'% subsidiary of YMC,
Japan. Since then we have been in the process of redefining our business
processes and extending the awe and power associated with the legacy
of the Yamaha Group.
Adhering to our Corporate Mission - "Creating Kando - Touching Your
Heart" we are striving to touch every Heart across the length and
breadth of India

We firmly believe in “Surpassing Customer Expectations”
 We are

aware of our customers' evolving needs and provide them with quality
products
and services of exceptional value that surpass their expectations.
Establishing a Corporate environment that fosters self-esteem
We believe in nurturing and empowering our employees to the fullest.
Whilst cultivating our employees’ creativity and all round abilities, we
have also established an equitable system of evaluation and rewards to
encourage our people to strive towards newer benchmarks.
Fulfilling social responsibilities
As a good corporate citizen, we continually strive towards creating a
better social as well as natural environment.

Strengths
Yamaha motors India is the subsidiary company of
Yamaha motors ltd, which is the MNC company having a good
 brand name. 


Good share in Indian two wheeler automobiles sector 


It is the one of the oldest company in the Indian market. 


Bikes are available at very cheap price. 


Popular in rural area. 


Weakness 


Bikes are not attractive.


No presences in scooter segment.


No presences in above 150cc bike segment.