MAHARANA PRATAP COLLEGE OF

PROFESSIONAL STUDIES, KANPUR

(Affiliated to C.S.J.M. University ,Kanpur)

A comparative analysis of BAJAJ & HERO

Motor corp on the basis of consumer
satisfaction

Bachelor of Business Administration

Department of Business Administration
(session-2015-18)
Under the guidance of Submitted by:
Manisha ma’am Umang Maheshwari
Shruti ma’am Roll No.-0903227
Batch BBA 2015-18
 Acknowledgement
The research on Comparative Study between BAJAJ & HERO
has been given to me as part of the curriculum in 3 years
bachelor degree in Business Administration.
I have tried my best to present this information as clearly as
possible using basic terms that I hope will be comprehended by
the widest spectrum of researchers, analysts and students for
further studies.
I have completed this study under the able guidance and
supervision of Miss Manisha Gautam. I will be failed in my duty
if I do not acknowledge the esteemed scholarly guidance,
assistance and knowledge. I have received from them towards
fruitful and timely completion of this work.
I also thankful to my friend who helped me a lot in the
completion of this project. And special thanks to all the
respondents who helped me in collection of data required for
the study.
 Preface

A professional course in (Bachelor of business administration )is

incomplete unless the theoretical knowledge acquired in the class room
is backed up by practical exposure ,as theories alone do not give
perfection to any discipline .The gap between theory and practiced is
bridged by the summer training ,which has been an integral part of the
syllabus.

This present Project report is an image of what I have done and

observed during my market survey in BAJAJ AND HERO MOTOR CORP.

I was assigned a project COMPARATIVE ANALYSIS OF BAJAJ AND

HERO MOTOR CORP.

This report is the result of the work done during the research period...

I have tried my level best to be as a systematic as possible and to avoid

any sort of biases.
 Student Declaration

I, Umang Maheshwari student of BBA at Maharana Pratap

College of professional studies, Kanpur of hereby declare
that the Project work entitled a comparative analysis on
the BAJAJ & HERO MOTOR CORP is compiled and
submitted under the guidance of Manisha Ma’am. This is
my original work.
Whatever information furnished in this project report is true to
the best of my knowledge.

Name: Umang Maheshwari

BBA II year
Roll No.-0903227
 INTRODUCTION

India has the largest number of two wheelers

in the world with 41.6 million vehicles. India
has a mix of 30 percent automobiles and 70
percent two wheelers in the country. India was
the second largest two wheeler manufacturer
in the world starting in the 1950’s with the
birth of Automobile Products of India (API)
that manufactured scooters. API
manufactured the Lambrettas but, another
company, Bajaj Auto Ltd. surpassed API and
remained through the turn of the century from
its association with Piaggio of Italy
(manufacturer of Vespa).
The license raj that existed between the1940s
to1980s in India, did not allow foreign
companies to enter the market and imports
were tightly controlled. This regulatory maze,
before the economic liberalization, made
business easier for local players to have a
seller’s market. Customers in India were
forced to wait 12 years to buy a scooter from
Bajaj. The CEO of Bajaj commented that he
did not need a marketing department, only a
dispatch department. By the year 1990, Bajaj
had a waiting list that was twenty-six times its
annual output for scooters.
The motorcycle segment had the same long
wait times with three manufacturers; Royal
Enfield, Ideal Jawa, and Escorts. Royal Enfield
made a 350cc Bullet with the only four-stroke
engine at that time and took the higher end of
the market but, there was little competition for
their customers. Ideal Jawa and Escorts took
the middle and lower end of the market
respectively.
In the mid-1980s, the Indian government
regulations changed and permitted foreign
companies to enter the Indian market through
minority joint ventures. The two-wheeler
market changed with four Indo-Japanese joint
ventures: Hero Honda, TVS Suzuki, Bajaj
Kawasaki and Kinetic Honda. The entry of
these foreign companies changed the Indian
market dynamics from the supply side to the
demand side. With a larger selection of two-
wheelers on the Indian market, consumers
started to gain influence over the products
they bought and raised higher customer
expectations. The industry produced more
models, styling options, prices, and different
fuel efficiencies. The foreign companies new
technologies helped make the products more
reliable and with better quality. Indian
companies had to change to keep up with
their global counterparts.
 HISTORY OF BAJAJ

Bajaj Auto limited is one of the largest two wheeler

manufacturing company in India apart from
producing two wheelers they also manufacture
three wheelers. The company had started way
back in 1945. Initially it used to import the two
wheelers from outside, but from 1959 it started
manufacturing of two wheelers in the country. By
the year 1970 Bajaj Auto had rolled out their
100,000th vehicle. Bajaj scooters and motor cycles
have become an integral part of the Indian milieu
and over the years have come to represent the
aspirations of modern India. Bajaj Auto also has a
technical tie up with Kawasaki heavy industries of
Japan to produce the latest motorcycles in India
which are of world class quality The Bajaj
Kawasaki eliminator has emerged straight out of
the drawing board of Kawasaki heavy industries.
The core brand values of Bajaj Auto limited
includes Learning, Innovation, Perfection, Speed
and Transparency.
Bajaj Auto has three manufacturing units in the
country at Akurdi, Waluj and Chakan in
Maharashtra, western India, which produced
2,314,787 vehicles in 2005-06. The sales are
backed by a network of after sales service and
maintenance work shops all over the country.
Bajaj Auto has products which cater to every
segment of the Indian two wheeler market Bajaj
CT 100 Dlx offers a great value for money at the
entry level. Similarly Bajaj Discover 125 offers the
consumer a great performance without making a
big hole in the pocket.
HISTORY OF HERO
“Hero”, is the brand name used by the Munjal
brothers in the year 1956 with the flagship
company Hero Cycles. The two-wheeler
manufacturing business of bicycle components
had originally started in the 1940’s and turned into
the world’s largest bicycle manufacturer today.
Hero, is a name synonymous with two-wheelers in
India today. The Munjals roll their own steel, make
free wheel bicycle critical components and have
diversified into different ventures like product
design. The Hero Group philosophy is: “To provide
excellent transportation to the common man at
easily affordable prices and to provide total
satisfaction in all its spheres of activity”. The Hero
group vision is to build long lasting relationships
with everyone (customers, workers, dealers and
vendors). The Hero Group has a passion for
setting higher standards and “Engineering
Satisfaction” is the prime motivation, way of life
and work culture of the Group.
In the year 1984, Mr. Brijmohan Lal Munjal, the
Chairman and Managing Director of Hero Honda
Motors (HHM), headed an alliance between the
Munjal family and Honda Motor Company Ltd.
(HMC). HHM Mission Statement is: “We, at Hero
Honda, are continuously striving for synergy
between technology, systems, and human
resources to provide products and services that
meet the quality, performance, and price
aspirations of our customers. While doing so, we
maintain the highest standards of ethics and
societal responsibilities, constantly innovate
products and processes, and develop teams that
keep the momentum going to take the company to
excellence in the new millennium”. This alliance
became one of the most successful joint ventures
in India, until the year 1999 when HMC had
announced a 100% subsidiary, Honda Motorcycle
& Scooter India (HMSI). This announcement
caused the HHM stock price to decrease by 30
percent that same day. Munjal had to come up
with some new strategic decisions as, HMSI and
other foreign new entry companies were causing
increased intensity of rivalry for HHM.
== Growth == The business growth of Hero Honda
has been phenomenal throughout its early days.
The Munjal family started a modest business of
bicycle components. Hero Group expanded so big
that by 2002 they had sold 86 million bicycles
producing 16000 bicycles a day. Today Hero
Honda has an assembly line of 9 different models
of motorcycles available. It holds the record for
most popular bike in the world by sales for Its
Splendor model. Hero Honda Motors Limited was
established in joint venture with Honda Motors of
Japan in 1984, to manufacture motorcycles. It is
currently the largest producer of Two Wheelers in
the world. It sold 3 million bikes in the year 2005-
2006. Recently it has also entered in scooter
manufacturing, with its model PLEASURE mainly
aimed at girls. The Hero Group has done business
differently right from the start and that is what has
helped them to achieve break-through in the
competitive two-wheeler market. The Group's low
key, but focused, style of management has earned
the company plaudits amidst investors, employees,
vendors and dealers, as also worldwide
recognition.
SWOT ANALYSIS OF
BAJAJ
SWOT ANALYSIS Of HERO
MOTOR CORP
COMPANY PROFILE

BAJAJ
PROFILE:
Founder Jamnalal Bajaj

Year of Establishment 1926

Industry Automotive - Two & Three Wheelers

Business Group The Bajaj Group

Listings & its codes BSE – Code: 500490; NSE - Code: BAJAJAUTO

Presence Distribution network covers 50 countries.

Dominant presence in Sri Lanka, Bangladesh, Columbia,
Guatemala, Peru, Egypt, Iran and Indonesia.

Joint Venture Kawasaki Heavy Industries of Japan

Registered & Head Office Akurdi

Pune - 411035
India
Tel.: +(91)-(20)-27472851
Fax: +(91)-(20)-27473398

Works
 Akurdi, Pune 411035
 Bajaj Nagar, Waluj Aurangabad 431136
 Chakan Industrial Area, Chakan, Pune 411501

E-mail rahulbajaj@bajajauto.co.in

Website www.bajajauto.com

Revenue Year Revenue in million Indian Rupees

2011 170,080

2012 202,010

2013 207,927

2014 208,559

2015 221,944
 2016 236,009

KEY PERSONS:

Board of Directors

Rahul Bajaj Chairman

Madhur Bajaj Director

Rajiv Bajaj Director

Sanjiv Bajaj Managing Director

D.J. Balaji Rao Director

Naresh Chandra Director

Nanoo Pamnani Director

Manish Kejriwal Director

P Murari Director

Dr. Gita Piramal Director

Committees of the Board

Audit Committee  

Naresh Chandra Chairman

Manish Kejariwal Member

Nanoo Pamnani Member

Stakeholders’ Relationship committee 

P. Murari Chairman

Nanoo Pamnani Member  

Manish Kejriwal Member

Dr. Gita Piramal Member

Nomination and Remuneration committee

D.J. Balaji Rao Chairman

Nanoo Pamnani Member

Naresh Chandra Member

Rahul Bajaj Member  

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
HERO MOTOR CORP
BOARD OF DIRECTORS

No. Name of the Directors Designation

1 Mr. Pawan Munjal Chairman, Managing Director and CEO

2 Mr. Pradeep Dinodia Non-executive & Independent Director

3 Gen.(Retd.) Ved Prakash Malik Non-executive & Independent Director

4 Mr. Suman Kant Munjal Non-executive Director

5 Mr. Paul Edgerley Non-executive & Independent Director

6 Mr. Anand C. Burman Non-executive & Independent Director

7 Mr. M. Damodaran Non-executive & Independent Director

8 Dr. Pritam Singh Non-executive & Independent Director

9 Mr. Ravi Nath Non-executive & Independent Director

10 Ms. Shobana Kamineni Non-executive & Independent Director

11 Mr. Vikram Kasbekar Executive Director Operations (Plants)

PROFILE:

Type Public company BSE:HEROHONDA M

Founded January 19, 1984 in Gurgaon, Haryana, India

Headquarter Haryana Village Malkumajra, Nalagarh Rao

s New Delhi 110057

Om Prakash Munjal, Founder

Mr. Brijmohan Lall Munjal, Chairman

Key people Mr. Toshiaki Nakagawa, Joint Managing
Director

Mr. Pawan Munjal, Managing Director

Industry Automotive

Products Motorcycles, Scooters

Revenue US$ 3.6 billion(241.7 billion INR)

http://www.herohonda.com/site/home/home.
Website
asp
OBJECTIVES OF THE
STUDY:-

Every organization has to achieve its organization

goals. For this it is very essential for an
organization to know about the view of consumers
and their competitive products. This survey
research may be also aimed as to estimate
potential buyer for the product. The objective of
the study is as under:-

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

2.To know the perception of customers regarding

bikes.

3.To determine the customers satisfaction.

4.To determine the factors influencing the choice

of customers.
5. To know the demand of Automobiles.

6. Competition from other bike manufacturers.

7. To know the trend in Market.

8. To identify the difference between market

performance of hero and bajaj.

9. To study the market of hero motor corp and

bajaj motor on big scale automobile sector.

10. To compare various parameters of marketing

strategies, manufacturing process, technology
adopted production policy, advertising,
collaboration, export scenario,future prospect for
the two companies and government policies.

11. To know how the company has been

successful in encountering the aggressive
marketing strategies of competitors.
12. To know which bike is more demanded by
Customers.

13. Through which strategies maximum

customers are attracted.

Scope of study:-

- Company will come to know what attracts Customers.

- Company as well as Dealers of Hero motor corp and Bajaj will come to
know that which are the criterias customers look for before buying bike.

- Company and Dealers will also come to know the future changes which
will be require to satisfy customer needs and wants.
 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve

the research problem. It may be
understood as a science of studying how research is
done scientifically. In it we study the various
steps that are generally adopted by a researcher in
studying his research problem along with the logic
behind them. It is necessary for the researcher to know
not only the research methods/techniques
but also the methodology. Researchers not only need to
know how to develop certain indices or tests,
how to calculate the mean, the mode, the median or the
standard deviation or chi-square, how to
apply particular research techniques, but they also need
to know which of these methods or techniques,
are relevant and which are not, and what would they
mean and indicate and why. Researchers also
need to understand the assumptions underlying various
techniques and they need to know the criteria
by which they can decide that certain techniques and
procedures will be applicable to certain problems
and others will not. All this means that it is necessary for
the researcher to design his methodology
for his problem as the same may differ from problem to
problem.

Meaning of research:-

Research in common parlance refers to a search for

knowledge. Once can also define research as
a scientific and systematic search for pertinent
information on a specific topic. In fact, research is an
art of scientific investigation. The Advanced Learner’s
Dictionary of Current English lays down the
meaning of research as “a careful investigation or
inquiry specially through search for new facts in
any branch of knowledge.”1 Redman and Mory define
research as a “systematized effort to gain
new knowledge.”2 Some people consider research as a
movement, a movement from the known to
the unknown. It is actually a voyage of discovery. We all
possess the vital instinct of inquisitiveness
for, when the unknown confronts us, we wonder and our
inquisitiveness makes us probe and attain
full and fuller understanding of the unknown. This
inquisitiveness is the mother of all knowledge and
the method, which man employs for obtaining the
knowledge of whatever the unknown, can be
termed as research.

TYPES OF RESEARCH:-
There are various types of research:

Descriptive vs Analytical research

Qualitative vs Quantitative research
Applied vs Fundamental research
Empirical vs Conceptual research
RESEARCH HYPOTHESIS

Ordinarily, when one talks about hypothesis, one simply

means a mere assumption or some supposition
to be proved or disproved. But for a researcher
hypothesis is a formal question that he intends to
resolve. Thus a hypothesis may be defined as a
proposition or a set of proposition set forth as an
explanation for the occurrence of some specified group
of phenomena either asserted merely as a
provisional conjecture to guide some investigation or
accepted as highly probable in the light of
established facts. Quite often a research hypothesis is a
predictive statement, capable of being tested
by scientific methods, that relates an independent
variable to some dependent variable.
RESEARCH DESIGN

MEANING OF RESEARCH DESIGN

The formidable problem that follows the task of defining

the research problem is the preparation of
the design of the research project, popularly known as
the “research design”. Decisions regarding
what, where, when, how much, by what means
concerning an inquiry or a research study constitute
a research design. “A research design is the
arrangement of conditions for collection and analysis of
data in a manner that aims to combine relevance to the
research purpose with economy in procedure.”1
In fact, the research design is the conceptual structure
within which research is conducted; it constitutes
the blueprint for the collection, measurement and
analysis of data. As such the design includes an
outline of what the researcher will do from writing the
hypothesis and its operational implications to
the final analysis of data. More explicitly, the desing
decisions happen to be in respect of:
(i) What is the study about?
(ii) Why is the study being made?
(iii) Where will the study be carried out?
(iv) What type of data is required?
(v) Where can the required data be found?
(vi) What periods of time will the study include?
(vii) What will be the sample design?
(viii) What techniques of data collection will be used?
(ix) How will the data be analysed?
(x) In what style will the report be prepared?
RESEARCH PROCESS:-

Define research problem

Review of literature
Formulate hypothesis
Determine research design
Determine sample design
Collection of data
Execution of project
Analysis of data
Hypothesis testing
Generalization & interpretation of data
Preparation of report & thesis
RESEARCH PROBLEM

It is well known fact that the most important step

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

Research included only Primary 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.

SAMPLE DESIGN

SAMPLING UNIT

Population & location

It gives the target population that will be
sampled. This research was carried in Kanpur.
These were 100 respondents

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.

Objective of research:-

The purpose of research is to discover answers to

questions through the application of scientific
procedures. The main aim of research is to find
out the truth which is hidden and which has not
been
discovered as yet. Though each research study
has its own specific purpose, we may think of
research objectives as falling into a number of
following broad groupings:

1. To gain familiarity with a phenomenon or to

achieve new insights into it (studies with this
object in view are termed as exploratory or
formulative research studies);

2. To portray accurately the characteristics of a

particular individual, situation or a group
(studies with this object in view are known as
descriptive research studies);

3. To determine the frequency with which

something occurs or with which it is associated
with something else (studies with this object in
view are known as diagnostic research
studies);

4. To test a hypothesis of a causal relationship

between variables (such studies are known as
hypothesis-testing research studies).

DATA COLLECTION

We collect primary data during the course of doing

experiments in an experimental research but in
case we do research of the descriptive type and perform
surveys, whether sample surveys or census
surveys, then we can obtain primary data either through
observation or through direct communication
with respondents in one form or another or through
personal interviews.

ANALYSIS OF DATA

After the data has been collected, it was

tabulated and findings of the project were
presented followed by analysis and interpretation
to reach certain conclusions.
DATA ANALYSIS AND
INTERPRETATION:-
Analysis:- By this question we analyse
that most of people have hero's bike.
Analysis:- Most of the customers have
passion in comparison of splendor
and others.
Analysis:- Most of the person who
purchased bike comes under 50000
-100000 family income.
Analysis:- Almost all person have their
bike from more than 1 year and
some have from more than 3 years.
Analysis:- In most of the cases people
use their bike for personal purpose
so they more millage and quality
than style.
Analysis:- Advertising of television
influence more people than
newspapers and magazine.
Analysis:- Advertisements are
beneficial for the marketer because
many customers are influence by ads.
Analysis:- Almost all the person had
full knowledge before buying bike
because most of them had saw the ad
of bike which gave knowledge about
that bike.
Analysis:- Most of the customers
focus on the quality and mileage of
bike because they use their bike for
personal purpose as we discussed
above.
Analysis:- Mileage, Price, Maintenance,
Brand image etc.of Hero are better
than the bajaj.
Conclusion / Findings:-

1. Most of the Passion & Pleasure are purchased by

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

 ANNEXURE

BIBLIOGRAPHY

www.herohonda.com

www.google.com

www.bajaj.com

www.twowheeler.com

www.extrememachines.com
Copy of questionnaire

NAME: - ………………………………………………

CONTACT NO:- ……………………………………….

ADRESS:-……………………………………………..

AGE:- …… 15-20 20-25

Above 30

OCCUPATION:- Businessman Employee

Student Other

Q1) Which Bike do you have?

Hero Honda Bajaj Any Other

Q2) Which Model do you have?

Hero Honda: - Splendor Passion

Karizma Other

Bajaj: - CT 100 Discover

Pulsar Other

Q3) In which Family Income do you Fall?

100000-200000 200000-300000

300000-400000 Above 400000

Q4) For how long do you own a Bike?

0-1 year 1-2 year

2-3 year above 3 years

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

Office Purpose Personal Purpose

Joy Purpose Other

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

Newspaper Television

Magazines Friends/Relatives

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

Yes No Can’t say

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

Yes No

Q9) Which factor below influence your decision?

Price Mileage Quality

 Resale Value Status Symbol

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

Hero Honda Bajaj

Mileage

Price

Pick up

Maintenance

Look/Shape

Brand Image