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Report On

The analysis of the consumer buying behaviour for Economy segment motorcycles in domestic market. (TVS Motor Company Limited) Bangalore

Prepared by Vaibhav Anand

Registration no: 10SBCM0117

The Project was completed under the Guidance of Prof Sunil. D. Anto In partial fulfilment of the Course-Industry Internship Programme (IIP) in Semester II of the Post Graduate Programme in Management.

(Batch: Aug. 2010 ± 2012)

Industry Internship Report 2011

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Master of Business Administration Industry Internship Programme (IIP) Declaration
This is to declare that the Report entitled Analysis of consumer buying behaviour for economy segment motorcycles in the domestic market has been made for the partial fulfillment of the Course: Industry Internship Programme (IIP) in Semester II

(Batch: August 2010-12) by me at TVS motor company limited under the guidance of Prof Prasanna Mohan Raj. I confirm that this Report truly represents my work undertaken as a part of my Industry Internship Program (IIP). This work is not a replication of work done previously by any other person. I also confirm that the contents of the report and the views contained therein have been discussed and deliberated with the Faculty Guide.

Signature of the Student

:

Name of the Student

:

VAIBHAV ANAND

Registration No

:

10SBCM0117

Industry Internship Report 2011

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Master of Business Administration Certificate

This is to certify that Mr. Vaibhav Anand, Registration No. 10SBCM0117 has completed the Report entitled Analysis of consumer buying behaviour for economy segment motorcycles in the domestic market. Under my guidance for the partial fulfillment of the Course: : Industry Internship Programme (IIP) in Semester II of the Master of Business Administration (Batch: Aug. 2010 ± 2012).

Signature of Faculty Guide :

Name of the Faculty Guide :

Prof Prasanna Mohan Raj

Industry Internship Report 2011

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My thanks to all other faculties. seniors and batch mates of Alliance who have been of immense help and have always been ready to help me irrespective of their other commitments. They were flexible in allowing me do work that was useful for the company while at the same time was in alignment to the college needs. Mr.ACKNOWLEDGEMENT First and foremost. I would also like to thank my Industrial Guides. I would like to thank my Faculty Guide.Vikas Sikka for giving me the opportunity to work at TVS Motor Company Limited marketing unit. Vaibhav Anand Industry Internship Report 2011 Page 4 . Prof Prasanna Mohan Raj for him closely monitoring my work and giving me continuous feedback ensuring that the work I did was relevant to the market as well in keeping with the academic requirements. Shyam Mrithyunjayan and Mr.

.............5...... ............ .. ..... ...1........ 11 2.....1.............. . .................3 2................ 9 2................................................................................. 7 INTRODUCTION ................................ ......... ............4 2..............................8 2....... .............................. .4 2........... 14 Benefits of Two-Wheelers ..... .... 31 2.......4 2............... .................5...... ....... .................1 2...1 ...........4 2........................2 2......... 25 MAJOR PLAYERS ... ...............................................6 2.................................. . 13 Evolution of Two-wheeler Industry in India .............................. ...................2 INDIAN AUTOMOBILE INDUSTRY: AN INTRODUCTION ....................... ..5...1... ..............5.....................3 2..........................................7 2.. ......... ....... 33 2.......... ...........................2 2............................................................ 15 A Growth Perspective ........ 31 2............................. ...........................................................................................................................1.1............2........... .................................................................. ..... . 36 PORTER S 5 FORCES ANALYSIS .................. ................................................2.. 40 The Early Years .... ...................... .......................... ........................2... 11 Indian Two-Wheeler Industry: A Perspective ....................................1 2....................... 16 Two-wheelers: Market Size ..... .1..................... 41 The TVS Suzuki Relationship.... 41 Rise to Present Prominence .............. ..... ........ ..........................5...............................5 MARKET SHARE... 22 TWO WHEELER: CATEGORIES AND SEGEMENTS..... 2 EXECUTIVE SUMMARY ...........1 INDUSTRY OVERVIEW ...... ................................ 21 Rise in GDP per Capita has increased affordability of Two Wheelers ............................................. 40 The Legacy of TV Sundaram Iyengar......................1. ............. 32 2...................................... .............................3 2................... ..................................9 2..............2............... ........................... ............................................ ...................5.. 37 COMPANY PROFILE ...6 ................................. .......... .. 41 2.......... 41 Industry Internship Report 2011 Page 5 .............. ........5 2....1....... .. ................... 35 PEST ANALYSIS ON TWO-WHEELER INDUSTRY: .............5 2.............................1............................... ........ .. ............................................................................................................. ........ ... 40 History .......2 .................. 20 Demand Drivers .3 .................Table of Contents 1.........................................................................

.................... .......................................... .................. ......................................................2.......... 48 Sampling Profile: ...... 48 Data Collection: . .............. 48 Sample Size: ................ 51 4.......................................................2 2......................................1....... . .................................1 4....2 4....................................1........ .... 96 RECOMMENDATIONS ... 42 2........... .........1 Project Implementation and Observation ..... ...................................................2.................................... ..... .......... ........................................................................1 2..... . . 46 3........... 45 3 PROJECT PROFILE ............... 46 3.....4 3............... ......................................................................................................... .........................2 4...... 104 BIBLIOGRAPHY .. 49 4 OBSERVATIONS AND ANALYSIS ............................................................................. . ..................................... 49 Tools Used To Conduct The Research............................................................3 3............................ ................................... 53 5 6 7 8 9 FINDINGS ..................... 42 Vision Statement ....5................. .. ............. ............6 Awards .......................... 48 3........ ........... .. .......2 3................. 48 Research Methodology Adopted: .......... 51 THE REASON FOR RESEARCH....... ..... 51 BUYING BEHAVIOUR ............................3 3................. ......... .... 101 CONCLUSION ..................................... .............................2................ . ........................ ............................... ........................................................ 42 TVS Motor Company ........................................ 52 Data Analysis on the basis of the survey( Open & Close Ended) ...Mission ...........................................................................103 LEARNING OUTCOME ................................................ ................2........ ......... ............. .................. ........ ...........3 UNDERSTANDING THE NEED .......1 3.............................................. 52 FACTORS AFFECTING CONSUMER BUYING BEHAVIOUR ....................8 MOTORCYCLE MODELS ............ ........... ............................................. ... . 51 4... . ......................... ....................................1 OBJECTIVES OF THE STUDY ...................... .........................7 2.....................6 3..2.......4 Limitations of the Study .................... 48 Sampling Method : ... ............. 42 TVS Motor Company Mission & Vision ................. ..................6................. .......................................7 2............................................. .... ......105 Page 6 Industry Internship Report 2011 ...............2...3 4... ....... 47 Data Source: ...................................... 44 SWOT ANALYSIS OF TVS MOTOR COMPANY LIMITED..................................6...2....................... ... ...................... ............1...................... ....................... ......2 RESEARCH METHODOLOGY...............5 3............ ................

Indian two-wheeler industry had a small beginning in the early 50's..... Bikes are a major segment of Indian two wheeler industry. .. two -wheelers offer a great deal of convenience and mobility for the Indian family......106 1... The research reveals various facts regarding consumer perception about various economy Industry Internship Report 2011 Page 7 .... Kinetic. India is the second largest producer and manufacturer of two-wheelers in the world. The trend of owning two-wheelers is due to a variety of facts peculiar to India....10 ANNEXURE ... .......... Indus.. Currently there are around 10 two-wheeler manufacturers in the country... TVS... we would see swanky four wheels jostling with our ever reliable and sturdy steed: the two wheeler. Hero Honda.. Additionally........ The change in the government's policy owning to pollution control norms and the Kyoto agreement saw the phasing out of two stroke two-wheelers from production.. Suzuki. It stands next only to Japan and China in terms of the number of two -wheelers produced and domestic sales respectively..... Royal Enfield... in India...... the other two being scooters and mopeds.affecting the purchasing behaviour of consumers.. Thus. low maintenance and pricing and easy loan repayments....... Indian two-wheeler industry has got spectacular growth in the last few years... ..... The Automobile Products of India (API) started manufac turing scooters in the country....... The study tries to find out the factors . they being Bajaj... It also tries to find out the market penetration level of these brands in urban and rural market...... Hero..... Indian streets are full of people of all age groups riding a two wheeler. EXECUTIVE SUMMARY The feeling of freedom and being one with the Nature comes only from riding a two wheeler. One of the chief factors is poor public transport in many parts of India. Indian companies are among the largest two-wheeler manufacturers in the world.... Indians prefer the two wheelers because of their small manageable size.. Honda. Motorized two wheelers are seen as a symbol of status by the populace... and Yamaha.............

This report is prepared to communicate about the consumer perception towards the economy segment motorcycles broadly in Bangalore. mileage. Industry Internship Report 2011 Page 8 . Factor analysis attempts to identify major attributes which are critical in initiating a purchase decision as well as for companies to keep in mind certain factors which consumers expect.segment motorcycle brands. This report states various factors on which consumers make a purchase decision. The study also evaluates the impact of various attributes such as price. India. looks and style etc for brand success.

Road .V. Therefore. consumers who already own a motorcycle and also the consumers who are intending to own one. after the analysis of the exploratory research.Ejipura. The Survey was conducted keeping the Target Group (TG) in mind i. the problems occurred were encountered and taken care off. P. An absolute mix of 60 responses was recorded and administered under the guidance of the industry guides. Tristar Auto. Followed by random sampling at Cambridge layout and Anekal. Many errors occurred due to statistical lag which was encountered which converting the data into a binary format from the hard copy to the excel sheets.Jagadish nagar. The data accounting was then done on Microsoft excel which is supposedly the first leg of research methodology.e.G. I Prepared a Questionnaire keeping into consideration the Primary Objective i. However. Vikas Sikka chalked down an action plan to go about the project with exploratory research first.M Pallya and Koramangla to collect data from 200 respondents and a draft copy of the Questionnaire was put on Facebook and Orkut to get more reviews from the customers. The next plan of action was to deploy me under various dealers of TVS in Bangalore so that I can carry out the survey and get the questionnaire filled . a crisp close-ended questionnaire was drafted which was surveyed in Anekal . The study helped me to learn how consumers help firms and organizations improve their marketing strategies by understanding issues such as Industry Internship Report 2011 Page 9 . Beml Gate.Chandapur.Bomnahalli. Domalur and Meghdoot Auto. Eventually. I Carried an Exploratory Survey on the basis of convenient sampling at two designated TVS showrooms i. M.Kargdaspura. To Understand the Consumer Buying Behaviour for economy segment motorcycles.G. Attibele.2 INTRODUCTION My internship started on 25/April/2011 and I was given the research topic as Study of the consumer buying behavior for the economy segment motorcycles in the domestic market. Shyam Mrithyunjayan and Mr. Under the esteemed guidance of the industry guide Mr. after thorough re -checks.e.e. I was expected to draft a questionnaire which is the base and the most important part of my internship project.

and select between different alternatives (example brands. The behaviour of consumers while shopping or making other marketing decisions. reason. and retailers). signs. The psychology of how the consumer is influenced by his or her environment (example culture. Industry Internship Report 2011 Page 10 .The psychology of how consumers think. feels. family. products. And lastly how marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. media).

the auto industry is one of the largest industries.2. as in many other countries. India today has the second largest volume of human resource in the world. the strong fundamentals of the Indian economy have not permitted pace of growth to decelerate much. in the current year. passenger cars. The incidence of poverty has continued to decline and population growth has also decelerated below 2 per cent for the first time in four decades. It is one of the key sectors of the economy.1 INDUSTRY OVERVIEW 2. a five decade young nation and the largest democracy in the world.7 per cent in the 1980s to an average of 6. This results in the auto industry being the driver of economic growth and India is keen to use it as a lever of accelerated growth in the country. It has deep forward and backward linkages with the rest of the economy. minerals and metals. Industry Internship Report 2011 Page 11 .5 per cent of global land but is the home of one sixth of the world's population of more than 1. multi utility vehicles. tractors and related auto components. India possesses one of the richest reserves of biodiversity. However.1. More than five decades of sustained and planned developmental INITIATIVE IN Ind ia has fielded substantive results on social and economic fronts. three wheelers. The industry comprises of automobile and the auto component sectors and encompasses commercial vehicles.1p er cent in the last decade. last two years of general economic slowdown has adversely affected India also.1 INDIAN AUTOMOBILE INDUSTRY: AN INTRODUCTION With five thousand years of history behind it. India is world's fourth largest economy. has a strong multiplier effect. In India. two wheelers. and hence.1 billion. India is amongst five fastest growing economies of the world. like the rest of the world. In terms of purchasing power parity (PPP). soils and water. GDP growth in the post perform period has improved from an average of about 5. Indeed. flora and fauna in this part of the globe and has climatic conditions suitable for round the year economic activity in any part of the nation. It has no more than 2. The industry has shown great advances since de-licensing and opening up of the sector to Foreign Direct Investment (FDI) in 1993. However. Assisted by a comprehensive performs programmed since early 1990s. making India one of the fastest growing developing countries.

since the early 1940s when the auto industry rolled out first passenger car. During 1999-2000 the turnover of the automotive industry as a whole was US$ 12. There are at present 13 manufacturers of passenger cars and multi utility vehicles. etc. fro m its early days until the mid-1980s for two-wheelers and LCVs and until the early 1990s for passenger cars.In India. Public policy dispensation requiring new joint venture car manufactures to commit certain levels of phased indigenization. the industry has shown great advances since abolition of licensing in 1991 and automatic approval permitted up to 51 per cent foreign investment in priority sectors that included the automotive industry. With this. absorb new technologies. on the other hand. minimum investments in manufacturing facilities.5 Billion Industry Internship Report 2011 Page 12 . this has significantly increased industry's contribution to overall industrial growth in the country. passenger cars and two wheelers and under -exploitation of the potential of this industry to foster the growth of the economy have resulted in the auto industry contributing a relatively low (nearly 5 per cent) share of industrial output in India compared to the 8-10 percent range in other developing countries and around 15 per cent in mature economies. The current low penetration levels in India in all three segme nts of the industry. The industry has an investment of a sum ex ceding US$ 10 billion. During last decade. the focus of development of the automotive industry has been on import substitution. namely commercial vehicles. its significance in the economy has progressively increased. The freeing of the industry from restrictive environment has on the one hand helped it to restructure. 11 of 2 or 3-wheelers and 10 of tractors besides 4 manufacturers of engines. However. Thus Industrial licensing and foreign investment regime in the country has been progressively liberalized. The quantitative restrictions on imports were removed with effect from 1st April 2001. was withdrawn in September 2001 as a major initiative to bring policy framework in step with WTO requirements. except passenger car manufacture. neutralization of foreign exchange on imports with the exports of cars and components. align itself to the global developments and realize its potential. 7 manufacturers of commercial vehicles. conscious efforts have been made to find-tune state policy perspective in a manner that this industry realizes its full potential in the economy. Motor car manufacture was freed from licensing in April 1993.

the arrival of new and contemporary models has stimulated demand for vehicles in the market. However. Being the leader in product and process technologies in the manufacturing sector.5 per cent by 1996 -1997.1.4 per cent by 1996 -1997.00. This has led to an increase in its contribution to industrial output from 4. At the same time.3 per cent in 1992 -1993 to 5.000 people directly and more than 10 million people indirectly and is now inhabited by global majors in keen competition. 13 to 14 per cent in real terms) outstripping industries production growth by about 30 per cent.The component industry in the same period has grown by a CAGR of 28 percent. During the last decade.7 per cent of GDP in 1992 1993 to 4. quality and competitiveness. with a worldwide economic slowdown. auto industry's growth pattern has shown a downward trend in last two years. well¬-directed efforts have been made Industry Internship Report 2011 Page 13 .approximately. The auto industry has achieved a cumulative annual growth rate (CAGR) of 22 per cent 1992-1997 (or approx. The arrival of most international automotive giants in India has set the stage for an exponential growth in the component industry's levels of technology. 2.2 Indian Two-Wheeler Industry: A Perspective Figure 1: Indian 2W Industry snapshot Automobile is one of the largest industries in global market. The industry employees 5. it has been recognised as one of the drivers of economic growth. With this the contribution of automobile industry to the GDP has risen from 2.

removal of quantitative restrictions and initiatives to bring the policy framework in consonance with WTO requirements have set the industry in a progressive track. However. motorcycles and mopeds. Aggres sive marketing by the auto finance companies have also played a significant role in boosting automobile demand. The lapses in the system had invited fresh policy options that came into being in late sixties. and (c) usage of outdated technology. especially from the population in the middle income group . aligning itself with the global developme nt and also to realise its potential in the country. 2. Two major results of Industry Internship Report 2011 Page 14 . and enabled industry to absorb new technologies. were effectively controlled by the State machinery. The indus trial policies shifted from a regime of regulation and tight control to a more liberalised and competitive era. the major set of reforms was launched in the year 1991 in response to the major macroeconomic crisis faced by the economy. It consists of three segments viz. Removal of the restrictive environment has helped restructuring. The two -wheeler industry has been in existence in the country since 1955. (b) under-utilisation of capacity. In the initial years. This high figure itself is suggestive of the importance of the sector. the share of two-wheelers in automobile sector in terms of units sold was about 80 per cent during 2003-¬04. This controlling mechanism over th e industry resulted in: (a) several firms operating below minimum scale of efficiency. Steps like abolition of licensing. Monopolies and Restrictive Trade Practices (MRTP) and Foreign Exchange Regulation Act (FERA) were aimed at regulating monopoly and foreign investment respectively. Recognition of the damaging effects of licensing and fettering policies led to initiation of ref orms. According to the figures published by SIAM. all critical areas of functioning of an industry.to provide a new look to the automobile policy for realising the sector's full potential for the economy.3 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. which ultimately took a more prominent shape with the introduction of the New Economic Policy (NEP) in 1985. capacity expansion.1. Amongst these policies. The liberalisation policies have led to continuous increase in competition which has ultimately resulted in modernisation in line with the global standards as well as in substantial cut in prices. choice of products including capacity mix and technology. entry of firms. scooters.

Majority of Indians. the two-¬wheeler industry in the country has been able to witness a proliferation of brands with introduction of new technology as well as increase in number of players.policy changes during these years in two-wheeler industry were that the. scooters and mopeds represent style and class for both men and women in India. India is the second largest producer of two -wheelers in the world. 2. However. Indian bikes. In the last few years. The trend of owning a two-wheeler is due to its: y y y y Economical Price Safety Fuel Efficiency Comfort level Industry Internship Report 2011 Page 15 . The country stands tall next to China and Japan in terms of production and sales respectively. known for their latest technology and enhanced mileage. Capturing a large share in two wheeler industry. the Indian two-wheeler industry has seen a spectacular growth. as they help in easy communication. Bikes are considered to be favourite among the youth generation. deregulation of the industry has not really resulted in higher level of competition. especially the youngsters prefer motorbikes rather than cars. though the degree of concentration has been lessened over time.1. Large varieties of two-wheelers are available in the market.4 Benefits of Two-Wheelers Two-wheelers are the most popular and highly sought out medium of transport in India. weaker players died out giving way to the new entrants and superior products and a sizeable increase in number of brands entered the market that compelled the firms to compete on the basis of product attributes. bikes and scooters cover a major segment. with various policy measures undertaken in order to increase the competition. Finally.

A clear picture of the motorcycle segment's gaining importance during this period is exhibited by the Figures 1. Hero Honda Karizma. the domestic market share in 2009-10 for two-wheelers industry is 76.6% 76. the share of motorcycles increased to 78 per cent of the total two -wheelers while the shares of scooters and mopeds declined to the level of 16 and 6 per cent respectively.95 and 3. 3.1. INDUSTRY COMPARISON: According to SIAM (Society of Indian Automobile Manufacturers). the share of scooters was about 50 per cent of the total 2 -wheeler demand in the Indian market. Honda CBR.1. 2 and 3 depicting total sales.95% 3. TABLE: 1 Passenger Vehicles Commercial Vehicles Three wheelers Two wheelers DOMESTIC MARKET SHARE FOR 2009-10 15. In 2003-04. few Indian bike enthusiasts prefer high performance imported bikes. Some of the most popular high-speed bikes are Suzuki Hayabusa.49% which is highest when compared to the category wise market share with passenger vehicles. commercial vehicles and three wheelers which has market share of 15.96.However. Suzuki Zeus. share and annual growth during the period 199 3-94 through 2003 -04. Bajaj Pulsar and TVS Apache. 2.96% 3.5 A Growth Perspective The composition of the two-wheeler industry has witnessed sea changes in the post-reform period. In 1991. These super bikes are specially designed for those who have a zeal for speedy drives. Kawasaki Ninja.6 respectively as shown in Table no. Motorcycle and moped had been experiencing almost equal level of shares in the total number of two -wheelers.49% Industry Internship Report 2011 Page 16 .

Figure 2 Industry Internship Report 2011 Page 17 .

The all-India and region-wise projected growth trends for the motorcycles and scooters are presented in Table 1. The models considered a large number of macro-economic. The forecasts had been made using econometric technique along with inputs obtained from a primary survey conducted at 14 prime cities in the country. demographic and socio-economic variables to arrive at the best estimations for different two-wheeler segments. The dem and for scooters will be the maximum in the northern region. Estimations were based on Panel Regression. The most likely scenario assumed annual growth rate of Gross Domestic Product (GDP) to be 5. However. Another important thing to keep in mind while interpreting these growth rates is that the forecast could consider the trend till 1999 and the model could not capture the recent developments that have taken place in last few years. Different scenarios have been presented based on different assumptions regarding the demand drivers of the two-wheeler industry. The demand for mopeds is not presented in this analysis due to its already shrinking status compared to' motorcycles and scooters. which takes into account both time series and cross section variation in data. The high grow th rate in motorcycle segment at present will stabilise after a certain point beyond which a condition of equilibrium will set the growth path. the demand for motorcycles will be almost 10 times of that of the scooters. The south and the north-central region will follow this. A panel data of 16 major states over a period of 5 years ending 1999 was used for the estimation of parameters. The region-wise numbers of motorcycle and scooter suggest the future market for these segments.5 per cent during 2011¬-12. It is also evident from the table that motorcycle will find its major market in the western region of the country.5 per cent during 2002¬ -03 and was anticipated to increase gradually to 6. Industry Internship Report 2011 Page 18 . this will not alter the regional distribution to a significant extent Table 1 suggests two important dimensions for the two-¬wheeler industry.National Council of Applied Economic Research (NCAER) had forecast two -wheeler demand during the period 2002¬ -03 through 2011 -12. The same in the western region will be almost 20 times. which will account for more than 50 per cent of the demand for scooters in 2011 -12. At the all India level. It is important to remember that the above -mentioned forecast presents a long -term growth for a period of 10 years. The projections have been made at all India and regional levels. which will account for more than 40 per cent of its total demand.

Its mid-term forecast suggests an expected growth of 7. inflation and export growth.7 per cent during the tenth five-year plan. Very recently.5) (2. NCAER has projected an average growth of GDP at 6. foreign invest ment.0) (2. Both industry and the service sectors have shown high growth during this period at the rates of 8. particularly for the motorcycle segment. There is a large untapped market in semi-urban and rural areas of the country.08) Note: Compound Annual Rate of Growth during 2002 -03 and 2011-12 is presented in parenthesis Source: Indian Automobile Industry: Optimism in the Air. However. poor rainfall last year will pull down the GDP growth to some extent.4 per cent during the first quarter of 2004.6) (3. Combining all these factors. one may visualise a higher growth rate in two -wheeler demand than presented in Table 1. The finance companies are also more aggressive in their marketing compared to previous years.8) 2624 (12. NCAER The present economic situation of the country makes the scenario brighter for short -term demand. Any strategic planning for the two¬-wheeler industry needs to identify these markets with the help of available statistical techniques. Real GDP growth was at a high level of 7.4 per cent in GDP during 2004-05 to 2008-09.0) 203 219 602 99 1124 (2. Industry Insight.5 per cent respectively.Table 1 Demand Forecast for Motorcycles and Scooters 2011 -12 2-Wheeler Segment Regions South West North-Central East & North-East All India Motorcycle Scooter 2835 4327 (12. IMF has portrayed a sustained global recovery in World Economic Outlook.5) 883 (11. Potential markets can be identified as well as prioritised Industry Internship Report 2011 Page 19 . Taking into account all these factors along with other leading indicators including government spending. A significant shift has also been observed in Indian households from the lower income group to the middle income group in recent years.9) (16.8) (2.1) 10669 (14.0 and 9.

24. sales picked up thereafter mainly on the strength of an increase in the disposable income of middle-income salaried people (following the implementation of the Fifth Pay Commission's recommendations). Adequate incentives for promoting exports and setting up of institutional mechanism such as Automobile Export Promotion Council would be of great help for further surge in demand for the Indian two -wheeler industry. However. The total two -wheeler sales of the Indian industry accounted for around 87. After facing its worst recession during the early 1990s. It is also imperative to initiate measures to make the presence of Indian two-wheeler industry felt in the global market. The economic slowdown in FY1998 took a heavy toll of two -wheeler sales. Although. with the year-on-year sales (volume) growth rate declining to 3% that year.765 units exported. the overall two-wheeler sales increased in FY2007.613. FY2009 also witnessed a healthy growth in overall twowheeler sales led by higher growth in motorcycles even as the sales of scooters and mopeds continued to decline. the momentum could not be sustained and sales growth dipped to 20% in FY1996 and further down to 12% in FY1997. and increasing availability of fuel efficient two-wheeler models.5% of the total vehicles sold in the period mentioned . this phenomenon proved short -lived and the two-wheeler sales declined marginally in FY2006 . Healthy growth in two -wheeler sales during FY2004 was led by growth in motorcycles even as the scooters segment posted healthy growth while the mopeds Industry Internship Report 2011 Page 20 . 2.6 Two-wheelers: Market Size In terms of volume. higher access to relatively inexpensive financing. For the two-wheeler industry. With the formal introduction of second -hand car market by the reputed car manufacturers and easy loan availability for new as well as used cars. However. Availability of easy credit for two-wheelers in rural and smaller urban areas also requires more focussed attention. This was followed by a revival in sales growth for the industry in FY2007. it is also important to identify the target groups for various categories of motorcycles and scooters. the two-wheeler industry needs to upgrade its market information system to capture the new market and to maintain its already existing markets.256. the industry bounced back wi th a 25% increase in volume sales in FY1995.436 units of two -wheelers were sold in the country in 9MFY2010 with 12.using these techniques with the help of secon dary data on socio-economic parameters. the scooter and moped segments faced de-growth.1. Nevertheless.

Increased availability of cheap consumer financing in the past 3 -4 years.continued to decline.7 Demand Drivers The demand for two-wheelers has been influenced by a number of fac tors over the past five years. Figure below presents the variations across various product subsegments of the two-wheeler industry between FY2009 and FY2010 . especially in the semi -urban and rural areas.1. Industry Internship Report 2011 Page 21 . Figure 3: Market Size 2. The key demand drivers for the growth of the two -wheeler industry are as follows: Inadequate public transportation system.

which creates a need for personal transportation .000. which in turn has been one of the key drivers of growth for the country s automobile industry.Increasing availability of fuel-efficient and low-maintenance models. Difference between two-wheeler and passenger car prices.8 Rise in GDP per Capita has increased affordability of Two Wheelers India s per capita real GDP growth of 7% (CAGR) over the last six years (refer Chart 1) has contributed substantially towards raising the standard of living of households. As per NCAER s estimates. Changes in the demographic profile. However. this scale-up is almost similar to the expansion in the domestic 2W industry size (by volumes) during this period. Increasing urbanisation.000 is estimated to have increased to 22 million in 2009-10.5x over 2001-02 (refer Chart2).1. Industry Internship Report 2011 Page 22 . and Increasing number of models with different features to satisfy diverse consumer needs. 200. income growth is likely to have been uneven across the different income deciles.00. a scale-up by a factor of 2. 2. Yet economic well-being has led to a significant increase in the number of households coming within the 2W target segment over the past few years. Income at the lower end of the distribution scale. is likely to have grown at a rate below the overall per capita income growth rate. which makes two-wheelers the entry-level vehicle. which comprises the 2W target segment 2. Steady increase in per capita income over the past five years. the number of households having annual income between Rs. Incidentally.

8. The characteristics of each of the three broad segments are discussed in Table 2. other sub-segments emerged. Besides. 100-125 cc gearless scooters. 125. the introduction of 4 stroke scooters has followed the imposition of stringent pollution control norms in the early 2000. While the first two emerged as a response to demographic changes. these prominent sub -segments.000 Stroke 2-stroke. However.MARKET CHARACTERISTICS 2. gearless scooters.Mainly stroke 4- 2-stroke Engine Capacity (cc) Ignition Engine Power (bhp) Weight (kg) 100.8. scooterettes.5-9 90-100 7-8 and above > 100 2-3 60-70 Industry Internship Report 2011 Page 23 .000 > 12. > 125 50. etc. as in January 2005) Motorcycle Moped > 22.000 > 30.1. Table 2: 2W. motorcycles and mopeds.1. viz.1 Demand 2. in response to evolving demographics and various other factors. 60 Kick/Electronic Kick/Electronic Kick/Electronic 6. and 4-stroke scooters. stroke 90-150 4. Examples include 125cc motorcycles.Comparative Characteristics Two-Wheelers: Comparative Characteristics Scooter Price*(Rs.2 Segmental Classification and Characteristics The three main product segments in the two-wheeler category are scooters. product groups within these sub-segments have gained importance in the recent years.

offer higher fuel efficiency.Fuel Efficiency (kms per litre) Load Carrying *Ex-showroom Compiled by INGRES 50-75 50-80+ 70-80 High Highest Low Bangalore Segmental Market Share The Indian two-wheeler industry has undergone a significant change over the past 10 years with the preference changing from scooters and mopeds to motorcycles. another factor that has weighed in favour of motorcycles is the high re -sale value they offer. the preference has shifted towards motorcycles. Nevertheless. the motorcycles segment that had witnessed high growth (since FY1994) became larger than the scooter segment in terms of market share for the first time in FY1999. the mo torcycles segment more than doubled its share of the two-wheeler industry to 79% even as the market shares of scooters and mopeds stood lower at 16% and 5%. Besides a change in demographic profile. out. the past few years have witnessed a shift in preference towards ge arless scooters (that are popular among women) within the scooters segment. greater acceleration and more environment-friendliness. Thus. However. Given the declining difference in prices of scooters and motorcycles in the past few years. The scooters segment was the largest till FY1998. respectively. accounting for around 42% of the two -wheeler sales (motorcycles and mopeds accounted for 37% and 21 % of the market respectively. Industry Internship Report 2011 Page 24 . the customer is willing to pay an up-front premium while purchasing a motorcycle in exchange for lower maintenance and a relatively higher resale value. that year). Motorcycles. technology and reduction in the price difference between motorcycles and scooters. Between FY1996 and 9MFY2005.

then trying to match their product and marketing mix more closely to the needs of one or more segments. Market segmentation allows a small business to develop a product and a marketing mix that fit a relatively homogenous part of the total market.1 MARKET SEGMENTATION Market segmentation is the science of dividing an overall market into key customer subsets. A number of customer characteristics. income. Most businesses realize that since no two people are exactly alike. geographical area. it is unlikely that they will be able to please all customers in a market with a single product. market segmentation can be costly.2. and buying behaviour. most businesses attempt to improve their odds of attracting a significant base of customers by dividing the overall market into segments. known as segmentation bases. which often lack the resources to target large aggregate markets or to maintain a wide range of differentiated products for varied markets. Some commonly used bases include age.e. When we talk about categories in two-wheeler industry. it is exclusive into three variances. a small business may be able to carve out a market niche that it can serve well than its larger competitors. But it is particularly important for small businesses.9.1. Instead. or segments. By focusing its resources on a specific customer base in this way. i. Because it involves significant market research.9 TWO WHEELER: CATEGORIES AND SEGEMENTS 2. can be used to define market segments. They also realize that it is rarely feasible to create a distinct product for every customer. y y y Motorcycles Scooters Mopeds Industry Internship Report 2011 Page 25 . whose members share similar characteristics and needs. gender.1. Market segmentation lies somewhere near the middle of a continuum of marketing strategies that range from mass marketing in which a single product is offered to all customers in a market to one-to one marketing in which a different product is specifically designed for each individual customer in a market.

To have an adequate knowledge of these segments is of utmost importance. I would not touch the other two categories as it gets extensive as well as deviates from the prime objective. There are majorly three segments in the Indian motorcycle industry. the objective of my study and project is confined to Motorcycles. The following are the three segments in motorcycle industry: y y y Premium Segment Executive Segment Economy Segment 2.9. draws an impact on consumer buying behaviour and also helps in understanding the consumer s spending pattern. segments are required to be discussed as it helps to distinguish between vario us brands.1. Based on these segments.2 PREMIUM SEGMENT Industry Internship Report 2011 Page 26 . However.Since. the motorcycles are categorized and differentiate itself from the other. both for the consumers as well as the companies so that they can position their products to the right target audience with an overtly impactful message that generates a craving amongst the consumers and thus creates a demand for the particular product.

In that sense. Suzuki¶s Hayabusa and Yamaha¶s YZF-R1. and TVS¶ Apache RTR. (b) Cruiser bikes such as Royal Enfield¶s Bullet and Bajaj Auto¶s Avenger (c) Ultra biking range consisting of Bajaj Auto¶s Kawasaki Ninja. 50. In most ways. Bajaj Auto¶s Pulsar family.Premium refers to a segment of a company's brands or products that carries tangible or imaginary surplus value in the upper mid. Frequently. Hunk and Karizma. especially in the mass markets. Honda Motorcycles & Scooters¶ CB 1000R.to high price range. Industry Internship Report 2011 Page 27 . CBZ Extreme. This category is the most segmented and includes: (a) Performance bikes. the term "premium" replaces the traditional attribute "luxury ". Motorcycle models with a price of over Rs. companies will invent different (sub) brands to differentiate their product lines into a premium and a general segment. besides models from the stables of Suzuki and Yamaha.000 comprise the Premium segment. Premium brands are designed to convey an impression of exclusiveness. Achiever. which consists largely of greater than 150 cc engine capacity bikes. Honda Motorcycles & Scooter¶s Unicorn Dazzler. The targeted high income customer group is also frequently referred to as "premium". ranging from 150cc to 220 cc and consisting of Hero Honda¶s Glamour. the premium segment can be thought o f as the contrary to generic brands.

besides the steady and secure replacement demand. which is largely concentrated around the 100-125 cc models.000-50. Industry Internship Report 2011 Page 28 . money can buy in India.000 comprise the Executive segment. By entry-level we mean the entrylevel bike is the cheapest motorcycle. the segment s share in the domestic motorcycles segment has risen from 48% in 2005-06 to 65% in 2010-11.2.9.3 EXECUTIVE SEGMENT It is a segment Just above the entry-level motorcycles. Motorcycle models with a price between Rs. Being the largest volume generator. the Executive segment has also seen the largest number of new model launches and portfolio refurbishments by all players and involves the highest product and brand clutter. Accordingly. The segment has benefited the most due to up-trading from the Entry segment consequent to the growing sophistication of customers.1. 40.

9. SS125 Jive CB Twister Flame CB Shine Super Splendor BRANDS 125cc 2. G5 Stallio Slingshot YBR125.Existing brands in Executive Segment COMPANY HERO HONDA BRANDS 100cc Splendor Plus Splendor NXG Passion Plus Passion Pro BAJAJ AUTO Discover 100 Platina 125 Discover 125 TVS HONDA MOTORCYCLES & SCOOTERS SUZUKI YAMAHA MAHINDRA YBR.1.4 ECONOMY SEGMENT Industry Internship Report 2011 Page 29 .

The Entry segment has faced continual volume pressures in the domestic market over the last several years and was also the worst hit during the credit squeeze in H2. Platina of BAL. Spectra. reluctance of organized financiers to increase credit exposure on this segment and the OEMs own strategy of reducing focus on this relatively less profitable segment. 2007-08 and the economic slowdown of 2008-09. Max 100 Platina TVS StaR City.Motorcycle models with a sticker price of up to Rs. Boxer. Joy EXISTING BRANDS CD Dawn HERO HONDA BAJAJ AUTO CT 100. Sport Industry Internship Report 2011 Page 30 . Star Sport of TVS and Crux and Alba of Yamaha. These include the gradual shift in preference of consumers in favour of the more feature-rich Executive segment.000 constitute the Entry segment. Byk Centra. Several factors have contributed to the waning importance of the entry segment in the Indian 2W market. Although sales volumes in this segment have remained flat over 2009 -10 and 2010 -11. 40. the segment s share in the domestic 2W market has steadily declined from 43% in 2005-06 to 16% in 2010-11. This segment largely consists of 100cc bikes and is currently composed of the CD Dawn and CD Deluxe models of HHML. Street. Brand Churn in Economy Segment COMPANY BRANDS DISCONTINUED CD 100.

Munjal family and Honda group both own 26 § ¦ ¥ ¤ £ ¢ ¡ stake in the Company. The company is the largest two wheeler manufacturer in India.2 2 MAJ LA y y y y y y y HERO HONDA BAJAJ AUTO TVS MOTOR ROYAL ENF ELD HONDA MOTORCYCLES & SCOOTERS SUZUKI YAMAHA   2. During the 1980s the company introduced motorcycles that were popular in India for their fuel economy and low cost. Hero Honda is a joint venture between the Hero Group of India and Honda of Japan.Shut it . A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda Motors Limited At Dharuhera India.Forget it' that emphasized the motorcycle's fuel efficiency helped the company grow at a double -digit pace since inception.1 Hero Hond Motors Li ited is a two whee e manufacturer base in India. In 2010 it was reported that Honda planned to sell its stake in the venture to the Munjal family. The technology in the bikes of Hero Honda for almost 26 years (1984 2010 has come from the Japanese counterpart Honda ¨ § I ustr I t r shi R rt P . A popular advertising campaign based on the slogan 'Fill it. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108. Hero is the brand name used by the Munjal brothers for their flagship company Hero Cycles Ltd.2.

© © y y y y y y y y y y Achiever Ambition 133 Ambition 135 CBZ CBZ Star. Its product range encompasses scooterettes. The oldest plant at Akurdi (Pune) now houses the R&D centre Ahead.   I ustr I t r shi R     2.2 B j j Auto is a major Indian vehicle manufacturer started by a Rajasthani merchant. It is based in Pune. Karizma ZMR FI Passion. the company has successfully changed its image from a scooter manufacturer to a two wheeler manufacturer. CD 100 SS. Splendor+ (Limited Edition). Splendor PRO   2.Hero Honda has a large sales and service network with over 3 000 dealerships and service points d across India. Maharashtra. CD Deluxe. Passion+. CD Dawn. Karizma R. CBZ Xtreme CD 100. Splendor NXG.2. Super Splendor. MO O C CL MO L rt 2011     P 32 . Glamour F. motorcycles and the auto rickshaw. Bajaj Auto manufactures and exports automobiles scooters. Hero Honda has a customer loyalty program since 2000 calle the Hero Honda Passport Program.I Hunk Karizma. although it does not feature in the 2010 list. Passion Pro Pleasure Splendor.946. CD Deluxe (Self Start) Glamour. The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1.2. . Waluj (near Aurangabad) and Pantnagar in Uttaranchal. Splendor+. with plants in Chakan (Pune). Over the last decade.

2.2. Bajaj has grown operations in 50 countries by creating a line of value -for-money bikes targeted to the different preferences of entry-level buyers. after Hero Honda. 3 02 1 0 0 I ustr I t r shi R & $ # 2. Limited. it was the fourth Honda automotive venture in India.scooters and motorcycles. The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.2. ! ! ! According to the authors of Globality: Co p ting with Ev yon "! ! fro Ev rywh re for Everything. y y y y y y y y y y y y B j j Pl ti B j j Pl ti B j j Di cover 135 DTS-i B j j XCD 125 DTS-Si B j j XCD 135 DTS-Si B j j Pul r 135 DTSi B j j Pul r 150 DTSi B j j Pul r 180 DTSi B j j Pul r 200 DTSi B j j Pul r 220 DTS-Fi B j j Pul r 220 DTSi B j j Avenger 220 DTS-i 2. Japan.3 Hond Motorcycle & Scooter Indi Pri te Li ited (HMSI) is the wholly owned Indian subsidiary of Honda Motor Company. Its real growth in numbers has come in the last four years after successful introduction of a few models in the motorcycle segment. Kinetic Honda Motor Ltd and Honda Siel Cars India Limited. MO O C CL MO 100cc L 125 DTS-Si rt 2011 ) '( ' % P 33 . Founded in 1999.

1 MOTORCYC E MODE S y y y y y y Honda Unicorn Honda Shine Honda CBF Stunner Honda CB Unicorn Dazzler Honda CB Twister Honda CBR 220 Industry Internship Report 2011 4 4 Page 34 .The entry of Honda into the Indian market as HMSI began with the launch of the Honda Activa. The Honda Shine has since been released.2. 2. A slightly modified trendier version of the Activa was soon launched.3. a 100 cc scooter. The Honda Unicorn was the first motorcycle released by HMSI. Honda Eterno was launched thereafter to add to the portfolio of HMSI's scooters. as the Honda Dio.

Bajaj Discover helped the company to climb up a huge margin of 9 percent in one year. However.4 MARKET SHARE The following data is extracted from http://business.htm The following figure helps to determine the growth of the companies in the financial year 2009-2010.rediff.com/report/2010/jul/07/auto-bajaj- rides-on-discover-to-regain-market-share. Surprisingly. there have been no signs of improvement with TVS Motor and Honda Motorcycles. The reports say that the flagship motorcycle of the company s executive segment i. Sales has smashed all records and apparently there does not seems to be any looking back for Bajaj Auto as of now.e. the good news is that they haven t incurred any losse s as well.2.2. Hero Honda loses out on 9 percent from the last year whereas we can see a progressive growth of 9 percent with Bajaj Auto. Industry Internship Report 2011 Page 35 .

India is the second largest motorcycle markets in the world next to China. Social Aspects ± Social aspects of two-wheelers industry are Popularity. social and technology are those factors which affects the external environment. economic. This would encourage industry that much because this price hike isn¶t expected to impact sales in a significant way as a majority of two-wheeler buyers were prepared.2. Socially many motor cycle organization raise money for charities through organized ride and events. CARE Research anticipant¶s buoyant growth in two-wheelers exports as well. Subculture. Many people ride motorcycle for various reasons. In numerous cultures. Abundant and low cost labour coupled with local availability of raw material like steel. and to certain extend braced up and ready to shell out extra money for their favourite set of wheels. Motor-cycle gives a great advantage to the specified designation where other buses cannot enter. those reasons are increasingly practical. motorcycles are the primary means of motorized transport. Since there is a rule in some of the main states and cities in India to wear helmet while Industry Internship Report 2011 Page 36 . The corrections in Excise duty on electric vehicles which will enable the manufacturers take CENVAT credit and exemption of customs duty on Electric Vehicles parts and also weighted deduction for in-house R&D to 200% from 150% and outsourced R&D from 125% to 175%. or as a means of avoiding or reducing the effect of urban congestion. aluminium and natural rubber has placed India amongst the low cost producing centres of two-wheelers. Abundance of low labour and raw material gives India an upper hand in the export. Consequently. with riders opting for a powered two-wheeler as a cost-efficient alternative to infrequent and expensive public transport system. political influence and some of the rules and regulation of government policies which is considered in political analysis. interest rate. Mobility and safety. Since many auto finance company laid easy instalment rules with less interest rate it makes more segment people to go for it. Political Aspects ± Tax policies. trade regulation. Economic Aspects ± Economic factor are those which is influenced by economic growth.3 PEST ANALYSIS ON TWO-WHEELER INDUSTRY: Political. exchange rate and inflation rate.

Invention of Electric motorcycle gives an added advantage since the two-wheeler users can avoid using petrol. aluminium frame. telescopic forks and disc brakes.riding two-wheelers to make them safe from accidents makes two-wheeler riders to have a safe journey. 2. RIVALRY: The key players in two-wheeler industries are Hero Honda motor ltd. Yamaha. Royal Enfield ltd and Honda motorcycle & scooter India. Construction of two-wheeler includes steel. fuel economy. manufacturing.49% which is very high when compared to that of three wheelers.Technical Aspects in Two-wheeler industry includes construction. Two-wheeler construction is the engineering. Technical Aspects . Motorcycle is the best fuel economy mode of transport.seller relations: Bargaining power Competitive pressures from seller ± buyer relations: Bargaining power. Majestic auto ltd. Since sufficient bike accessories are available in many place two-wheeler riders has a privilege to change the broken parts very easily. Bajaj Auto ltd and TVS motor Company ltd. and assembly of components and systems for two-wheelers which results in performance. aluminium and rubber. cost and aesthetics desired by the designers. because there are many Industry Internship Report 2011 Page 37 . Passenger and commercial vehicles. Two -wheelers domestic market growth rate for 2008-09 is 76.4 PORTER S 5 FORCES ANALYSIS Porter¶s five forces Model of Competition are as follows: y y y y y Rivalry among competing sellers Potential new entrants Substitute products Competitive pressures from supplier . The other players are Kinetic. Nowadays two-wheelers is designed to give more than 80km mileage per litre with low maintenance cost. dynamics and accessories. Different types of two-wheelers have different dynamics and these plays a vital role in their performance. electric motorcycles. LML. The standardized product used in manufacturing of two-wheelers is steel. (HHML).

Since each company in industry change the model on going basis to show differentiation among their competitors because of this there is more learning and experience in this field. Sales of two-wheelers are very high when compared to that of three wheelers. Indian Auto policy 2002 gives added advantage to twowheeler manufacturers to enter even other countries outside India. Auto transportation and even low-end cars. but people using two-wheelers can only use the service of buses and auto as a substitute product. Because nowadays there is lot of segment in buses in urban areas and the private companies also influenced very much. Since high technology and raw material resources are abundant to produce the production cost is less in producing two-wheelers. These are the substitute product available to two-wheelers. Since big manufacturer plant with high technology and good R&D team needed many of them dose not enter in two two-wheeler Industries.industries in India for manufacturing those standardized product the production is going smooth. Only the companies which are in automobile line will expand their product line like Mahindra. Since they change their models ongoing basis they create good relationship between their suppliers. Sometimes low-end car is a substitute product for the people using high-end motor cycles. Substitute Product: Substitute products for two-wheeler industries are bus transportation. this industry enjoys good growth rate and profitability. Because of low cost production. Supplier ± Seller Relations: Since their selling units are very high in two-wheeler industry and because of many competitors supplier are very high. Potential New Entrants: Capital investment is very huge in two-wheeler industries since large plant and large machineries needed with skilled labours and good R&D team needed for producing two-wheelers. Industry Internship Report 2011 Page 38 . Since only two people can travel in a bike most of them uses auto when they go out with their family and if they are affordable to buy car will use car instead of auto. buses are available from normal buses to hi-tech ac buses which is threat to two-wheeler industry. Passenger and commercial vehicles. Each company in industry not only makes differentiation in their product strategy but also makes differentiation in the promotional strategy to create´ brand preference and loyalty´. Some of the components in two-wheeler industry are very common for all the two-wheeler industries like steel. Since bus service has increased when compared to five years back people who are aged above 45 years uses buses because of their health condition.

Industry Internship Report 2011 Page 39 . because it attracts most of the middleincome group¶s seller cannot price their product very high. Buyers are very conscious in spending their money to purchase two-wheeler. Because service centers and spare parts shop available to their customer very near to their place buyer sometimes do not mind spending little money extra. so that they can switch brand from one another. These factors create good relationship between them. Since full information is available to the buyers about their product details and their prices buyers are fully aware of seller costs and products. This makes them to drive a smooth production of their finished products. Nowadays people go to unique brand because of the good service they provide after purchase. these material are available in abundant. Seller ± Buyer Relations: Buyer has added advantage than seller because there are five to six big popular brands of two-wheelers are available in India. tyres and tubes.aluminium.

It manufactures motorcycles. 2. When he died in 1955 his sons took the com pany ahead with several forays in the automobile sector.5.Sundaram Iyengar and Sons Limited. received in 2002. He began with Madurai's first bus service n 1912 and founded i T. with annual turnover of more than USD 1 billion in 2008 -2009.2 Th L of TV Su r I r TVS Motor traces its origins back to the entrepreneurial spirit of Trichur Venkagaruswamy Sundaram Iyengar who gave up lucrative careers in the Indian Railways and in banking to set up his own business. It is India's only two -wheeler company to have won the Deming Prize awarded for commitment to quality control. I ustr I t r shi R rt 2011 P 40 .1 Hist r 2. including finance.V. scooters. mopeds and auto rickshaws.2 5 C MPAN PROFIL T MOTOR TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the top ten in the world. manufacture of two -wheelers. and is the flagship company of the USD 4 billion TVS Group. insurance. a company that consolidated its presence in the transportation business with a large fleet of trucks and buses under the name of Southern Roadways Limited.5.

5 Rise to Present Prominence 2. It manufactured brakes. Rechristened TVS-Suzuki. A technical collaboration with the Japanese auto giant resulted in the joint-venture Ind Suzuki Limited in 1982 between Sundaram Clayton Ltd and Suzuki Motor Corporation. Suzuki Shogun and Suzuki Fiero. 2. Mysore and Nalagarh in India and Karawang in Indonesia. the company brought out several models such as the Suzuki Samurai.5. The company also got over a period of labour unrest that required Chairman Venu Srinivas an to take tough measures to resurrect a company that was in a state of turmoil.5. and implement Toyota-style quality programs.5. 2. United Kingdom.6 Over the years TVS Motor has grown to be the largest in the group. He would go on to invest in new technology. TVS Motor is credited with many innovat ions in the Indian automobile industry. then the flagship company. relinquishing rights to use the Suzuki name. compressors and various other automotive parts. The company set up a plant at Hosur in 1978 to manufacture mopeds as part of a new division. The group has managed to run 33 companies that account for a combined turnover of nearly $3 billion. both in terms of size and turnover. There was also a 30 month moratorium period during which Suzuki promised not to enter the Indian market with competing two-wheelers. Commercial production of motorcycles began in 1984. with four state of the art manufacturing plants in Hosur.3 The Early Years Sundaram Clayton. 2. Differences in opinion on how to run the joint venture eventually led to the partners going their separate ways in 2001 with the company being renamed TVS Motor. nurture in -house design.4 The TVS Suzuki Relationship TVS and Suzuki shared a 19 year long relationship that was aimed at technology transfer to enable design and manufacture of two-wheelers specifically for the Indian market. notable among them being the introduction of India's first two -seater Industry Internship Report 2011 Page 41 . was founded in 1962 in collaboration with Clayton Dewandre Holdings.tyres and components.5. exhausts.

dealers and suppliers. Mohamed Nasheed. 2.6 TVS Motor Company Mission & Vision 2. which is India's second largest brand in the scooterettes segment. featuring body-balance technology for easier handling.Driven by the customer TVS Motor will be responsive to customer requirements consonant with its core competence and profitability.6.6.1 TVS Motor Company .Mission We are committed to being a highly profitable.7 Awards "TVS Motor Company has been awarded 'Star Performer Silver Shield' in two/three wheelers category.2 Vision Statement 2. 2. for customers predominantly in Asian markets and to provide fulfilment and prosperity for employees. socially responsible. by EEPC India.The Industry eader 5 TVS Motor will be one among the top two two-wheeler manufacturers in India and one among the top five two-wheeler manufacturers in Asia. for excellent export performance for year 2007-08. Mr. the TVS 50cc. It also introduced the TVS S cooty. at a glittering function at Maldives on 21st Feb'10" 2. having sold 7 million units.6. lifetime personal transportation products under the TVS brand.2. and leading manufacturer of high value for money.2. TVS Motor will provide total customer satisfaction by giving the customer the right product. at the right time.2 TVS Motor . environmentally friendly. The award was presented by the Hon'ble President of Republic of Maldives. Industry Internship Report 2011 Page 42 .moped. The company became the leader in its category of sub 100 cc mopeds. at the right price. 2.1 TVS Motor .5. The TVS Jive launched in November 2009 became India's first clutch-free motorbike aimed at a stress-free rider experience while the unisex scooter Wego is targeted at urban couples.6.

6.4 TVS Motor . 2.2. Industry Internship Report 2011 Page 43 .2. capitalizing on the expertise developed in the areas of manufacturing. The thrust will be to achieve a significant share for international business in the total turnover.6 TVS Motor . TVS Motor believes in the importance of the process. There will be a sustained effort through systematic training and planning career growth to develop employees¶ talents and enhance job satisfaction.6.2. TVS Motor will create an enabling ambience where the maximum selfactualisation of every employee is achieved.6.The Human Factor TVS Motor believes that people make an organization and that its well-being is dependent on the commitment and growth of its people.Global overview TVS Motor will have profitable operations overseas especially in Asian markets. 2. People and projects will be evaluated both by their end results and the process adopted.3 TVS Motor .6.2.2. 2.Committed to Total Quality TVS Motor is committed to achieving a self-reviewing organization in perpetuity by adopting TQM as a way of life.5 TVS Motor . TVS Motor will support and encourage the process of self-renewal in all its employees and nurture their sense of self worth. technology and marketing.At the cutting edge TVS Motor will hone and sustain its cutting edge of technology by constant benchmarking against international leaders.

7 MOTORCYCLE MODELS International Range-Two Wheeler Three Wheeler Industry Internship Report 2011 Page 44 .2.

Monitoring: TVS Motor Company Ltd. Opportunity to enter new business areas because of the well established brand name. 4. Machine: Using all top machines of the world and Money: Finance has never been a problem for: 1. 3. has got excellent monitoring System. Management: TVS Motor Company Ltd. WEAKNESS: Huge amount of money is blocked in raw materials which are needed as a production process and also spent in procuring parts of the machines. Due to composite unit they have to follow all the rules & regulation of governments. never faces problem in case of raw Materials because of good contacts. Motor: Because of its proper financial management and reputation it has a huge group of investors. THREATS: Threat from the competitor regarding the way of doing business. which helps in smooth working of industry. a huge amount of money is spend on new machines every now and then due to advancement in technology. Opportunity to capture more market shares if it increases its strength. 2.2. if it uses its brand name effectively and advertises it effectively. Material: TVS Motor Company LTD. Threat of new entrants Industry Internship Report 2011 Page 45 .8 SWOT ANALYSIS OF TVS MOTOR COMPANY LIMITED Strength of TVS Motor Company LTD. OPPORTUNITY: There is a golden opportunity for the company. has got excellent Management because workers are relived without any chaos.

collection method and selection of subjects. case studies etc and qualitative approach such as informal discussions with Consumers. The objectives of the study are: y To determine the consumer perception and choice towards different motorcycle brands and also determine the most preferred motorcycle in the economy segment.3 PROJECT PROFILE 3. Details of the tests performed are as follows: Industry Internship Report 2011 Page 46 . employees and management. perception and buying behaviour towards the economy segment motorcycles in the domestic market. To understand the impact of media on consumer buying behaviour and also zero in the most suitable means to promote the brand and products The project was started by developing an open ended Questionnaire and doing an extensive exploratory research on the consumer buying behaviour. The second part of the study involved analysis of the data collected and then the collected data was used to design a close ended final questionnaire which was surveyed in the rural areas and domestic market of Bangalore by the target group . magazines.It was filled by 260 respondents. this was done by collecting data and views of the customers in the service stations and of those who visited the showrooms in Bangalore. Transmitting the collected data from hard copy format to Microsoft Excel and finally to SPSS was the last and eminent operation that was performed and various tests were run in order to analyse the data.1 OBJECTIVES OF THE STUDY The primary objective of the research is to Investigate consumer attitude. It was performed in the stipulated time frame of two weeks and relied on Secondary Data such as books. It was undertaken to draw definitive conclusions only with extreme caution. y y y To analyze various attributes consumers look for while making their purchase To examine whether income accounts for future purchasing preferences. The exploratory study was done in order to understand the nature of problem so as to determine the best research design.

1. Npar Tests 5. and also what are the criteria that enable them to buy a particular brand. Factor Analysis 3. The major portions covered are the competitor description and the major players. Bar Chart Representation 4. and proper tools for data collection suitable to the problem given. Descriptive Statistical Test 2. The basis data collection and research technique adopted for the research work was: y y Primary research technique Secondary research technique Primary research was conducted in order to find out different brands of motorcycles that people are aware off and buy. Industry Internship Report 2011 Page 47 . Friedman Test 6.2 RESEARCH METHODOLOGY The effectiveness of the marketing research largely depends on the formulation of an appropriate research design considering adequate sample size. Cross tabulation 7. Secondary research was conducted to carry out the market analysis of Two-wheeler automobile sector and the latest market trends in motorcycle industry. variables. Discriminant Analysis 9. Chi-Square Test 8. Frequency Analysis 3.

1 Data Source: There are two types of data sources i.3. databases and brand surveys. Working men and students are also been administered during the course of this research.4 Data Collection: The nature of research can be either qualitative or quantitative.2.2. The primary research data required for this study is of a quantitative nature. The secondary data was collected from various published sources. or qualitative research approaches such as informal discussions with consumers.2. how and when something occurs. websites.2. The sample is comprised exclusively of male respondents.e. 3. primary and secondary data. 3. Exploratory research can be quite informal. The quantitative research data was collected by means of a questionnaire on a face -to-face basis and via telephonic interviews.2.3 Research Methodology Adopted: The basic research methodology adopted was exploratory research. Primary data is original data collected specifically for the purpose of the research in question. 3. Secondary sources included journals. relying on secondary research such as reviewing available literature and data. dealers in the city.5 Sampling Profile: The primary audience for the research conducted was males within an age group of 20-50 years. 3.2 Sample Size: For this specific research I have taken a sample size between 261 respondents residing in and around the Bangalore city. The primary data for this study was obtained from the questionnaire used in sampling the respondents. It includes consumers from different buying points i.6 Sampling Method: Industry Internship Report 2011 Page 48 . 3. The results of exploratory research are useful for decision making while the qualitative research can give some indication as to why. formal approaches through in-depth interviews or proje ctive methods.2.e. books.

Continuous and reliable information was not available due to differences in opinion. Target audience is identified. 3. so the information is liable to change. Data collected and analyzed. Initial set of questions framed and tested with initial few samples. Questionnaire filled by the targeted audience. Avoidance by the respondents amidst their busy schedule did not permit detailed study because they couldn¶t give sufficient time to discuss the questionnaire. Question/Scale Measurements is being evaluated. The following tools were used to complete the above stated study: Industry Internship Report 2011 Page 49 .1 The research was undertaken in following steps based action plan: y y y y y y y y y y Research objectives are being transformed into the action plan. Location of survey to be conducted is identified.3 Limitations of the Study The limitations of the study are as follows: 1.6. Respondents were reluctant to give detailed responses. Revised questionnaire is implemented. In the extended sample the findings could have been different. Necessary literature read and applied few techniques as applicable. 3. Modified the questionnaire as required.2. 3.4 Tools Used To Conduct The Research. 2.The sampling method used for the study is the convenient sampling method. 3. 4.

SPSS software is used and techniques like:  Factor analysis is used in order to determine the number of factors highly responsible for consumer buying decision. MS Excel software is used to have the percentage analysis of the various data obtained through survey and to draw the graphs subsequently.  Chi-Square is use to understand the relationship between the brand preference and other variables like age.1. income and gender. 2. Industry Internship Report 2011 Page 50 .

Buyer behaviour involves both simple and complex mental processes.2 THE REASON FOR RESEARCH Consumers are not perfectly rational. Many of these nonrational reasons are hidden deep in our subconscious. The truth is that many purchases are influenced by a whole host of emotional reasons like esteem and image.1 UNDERSTANDING THE NEED Why do customers buy? What goes on inside a customer's mind before. money and expertise. Once the reasons why people buy or don't buy are discovered.1. observation and thinking. during and after a purchase? How do buyers choose? What are the hidden influences? How do buyers process information? 4. Surprisingly many other organisations don't really know exactly why their customers buy or don't buy from them.1 Project Implementation and Observation Study was initiated with the understanding of Consumer buying behaviour before further proceedings were done. Yet understanding customers is at the heart of marketing. They do not always choose goods and services solely on price. the marketing mix can be changed to suit the buyer's needs and wants. Industry Internship Report 2011 Page 51 . Following Observations were made: 4. This requires time.4 OBSERVATIONS AND ANALYSIS 4.1. Marketers cannot capture human nature in its entirety but we can learn a lot about customers through research. Research helps find the real reasons why we buy what we buy. sensible buyers. In-depth research probes into the darker depths of their unconscious. performance and availability.

Cultural Factor 02. clothes etc the purchase is frequent and the purchase cycle will be short. The stimuli may be social.2 FACTORS AFFECTING CONSUMER BUYING BEHAVIOUR The ultimate objective of the business firm is to create a consumer who is said to pivot around whom the business of the firm is said to revolve. This purchase cycle determines when the consumer is going to buy a product. The essence of modern marketing lies in building profit along with creating meaningful satisfaction for the consumers. A consumers decision process to purchase a particular motor bike is being resulted as a complex interplay of a consumer variables the starting point for the company provides the decision process marketing stimuli in shape of brand . 4. Thus a business firm¶s marketing concept is consumer oriented and emphasis is done more on the consumer rather than the product.price. Thus the marketing success depends upon its ability to create a community of satisfied consumers. technological and political in nature. For instance. Following are the factors affecting the consumer buying behavior: 01. All the business activities should be carried out in ways which are directed towards the satisfaction of consumer needs. The consumer¶s frequency of buying products varies with the type of products he buys. Personal Factor Industry Internship Report 2011 Page 52 . economic.4. whose needs and desires have to be coordinated within the set of products and production programmes.promotion . purchase of a two-wheeler is infrequent whereas non durable products like food.1.3 BUYING BEHAVIOUR The consumer buying behaviour is somewhat repetitive. In repetitive buying behaviour the consumer always forms a routine in his decision process. The potential consumer along with the other stimuli already exciting him receives the marketing stimuli in the environment. cultural. Social Factor 03. For a durable product this purchase cycle will be lengthy. and distribution strategy.

Thippasandra and Anekal. SALES OF THE DIFFERENT BRANDS OF MOTORCYCLES Sales BAJAJ TVS OYAL ENFIELD 6 YAMAHA HONDA 98 8 S Z Hero Honda 11-Splendors 3-Passion plus 2-Passion Bajaj 7-Discover 5-Pulsar 2-Platina TVS 8.Fiero 2.Victor Yamaha 1-RX-100 1-RXZ Industry Internship Report 2011 76 HE HONDA I Page 53 .Star city 1. 1.04. 2days in Meghdoot motors (Trinity circle).3 Data Analysis on the basis of the survey( Open & Close Ended) The survey was done 3 days in Tristar (Ring road Koramangla) which included both the showroom and the service station. 2 days in Cambridge layout. Psychological Factor 4.

Industry Internship Report 2011 Page 54 .2-CBZ 2-CD 100 1-CD dawn Others-4-Royal Enfield¶s 1.Honda Unicorn 3-Suzuki Zeus 4. IMPORTANCE OF ATTRIBUTES I rta ce f ttri tes Mileage @@ @ @ A L ks Price Durability E D CB @ S ee P erf r X-Fact r C ntr l Safety @ F @ F P wer W eight Rati The most important attributes according to survey done were Mileage looks& style and price and the least important attributes were Colour.Apache Out of 60 respondents 12 respondents were for Hero Honda and the least were for Honda 2. Brand and Speed.

EXPECTED MILEAGE Industry Internship Report 2011 G Nee Page 55 . FACTORS WHICH MOTIVATED THE RESPONDENTS TO PURCHASE THE MOTORCYCLE Reason for purchase Local conveyance Bran Affinity o f ort G I H Style Bu get G Need. 4.3. Brand affinity. Comfort. Style and Budget respectively were the following reasons for motivation. Local conveyance.

5. AMOUNT OF MONE RE ONDENT WERE WILLING TO SPEND TO PURCHASE A MOTORCYCLE Resp 25 20 15 10 5 0 ses Responses I ustr I t r shi R ort 2011 P 56 .50 15 50-70 19 >70 5 The maximum number of respondents were between 50-70 Kmpl and the least under the range of More than 70 Kmpl.Expected Mileage 20 P 1 10 Responses P 0 P Less than 30 Kmpl 30-40Kmpl 40.0Kmpl 50-70kmpl More than 70kmpl < 30 9 30-40 12 40 .

The reason being people have more disposable income.<40k&Second hand 9 40-50 50-70 70+ Gifts 17 23 7 3 Maximum number of respondents were under 50-70k category . ANALYSIS ON PREFERENCE OF COLOURS Colours Black Bl e Red Grey Q White Combinations Colours Responses Blue 12 Black 21 Red 6 Grey 4 White 7 Combinations 10 Industry Internship Report 2011 Page 57 . 6.

for a premium segment bike they can still think about it.7. WOULD CUSTOMERS GO FOR A LOAN PAYMENT FOR PURCHASING AN ECONOMY SEGMENT MOTORCYCLE? Preference of loan payment Yes No ay e S R Industry Internship Report 2011 Page 58 . 8. ANALYSIS OF WETHER PEOPLE WOULD PAY MORE FOR THEIR FAVOURITE COLOUR Blue YES NO 9 3 Black 17 12 Red 2 3 Grey 3 1 Others 7 3 People said they won¶t mind paying extra money for the motorcycle provided they get the colour which they prefer the most and even said that for an economy segment bike it¶s not worth it.

000 Rs is too small an amount to go for loan as they will end up paying a lot of interest and it is too cumbersome as it involves a lot of time and paperwork. (Depreciation of 10% every year) Industry Internship Report 2011 Page 59 . 9. But majority said its one important attribute before buying the bike as they expect to get half the value after 4-5 years. IMPORTANCE OF RESALE VALUE BEHIND THE PURCHASE DECISION Importance of Resale value Yes U Does ot Maybe T atter YES 32 Does not matter 24 Maybe 4 The ratio of resale value is 4:3 as people develop an emotional attach with the bike so they don¶t think about selling it.YES 16 NO 42 MAYBE 2 The respondents said they will certainly go for a down payment because less than 50.

Motorcycles are mostly bought by people for local conveyance and need of transport as analysed before. Prices of petrol are soaring high day by day. Economy segment motorcycles are bought considering mostly the Mileage attribute. ANALYSIS OF THE TIME AND TYPE OF SERVICE Most of the individuals get their motorcycles serviced by authorised dealers once in 2 -3 months (2000kms) odd and opt for Routine general wash and service 11. 2. Industry Internship Report 2011 Page 60 . 3. WHICH CATEGORY OF MOTORCYCLE IS PREFERRED THE MOST Category Ex e sive it a a zi g looks a style low ileage Dece tly sylis wit economical rice good mileage Y Y b W V W ` ` Y X b W V aW Majority of the people preferred the motorcycle with decent looks and good mileage because of the following reasons 1.10.

FAMOUS TV CHANNELS Industry Internship Report 2011 Page 61 . 13.MEDIA 12. NEWSPAPER PREFERENCES Newspapers TOI Praja vani Kannada Prabha Deccan Chronicle Deccan Herald The Hindu Bangalore Mirror Hindi Patrika TOI is read the most by the people followed by Praja Vani and Deccan Chronicle.

Channel V and Surya TV are the most watched TV channels 14. Star plus.T a els Sony Zee TV MTV Channel V NDTV Ten Sports Aaj Tak Set Max Star o ld c Sony. NDTV. Orkut and Gmail are the only networking sites respondents were aware of moreover only the people dwelling in the urban areas are aware of social networking sites. Industry Internship Report 2011 Page 62 . majority of the people in rural areas were not aware of it. AWARENESS OF SOCIAL NETWORKING SITES Social Networki g Sites Orkut Facebook m ail d Rediff Mail Yahoo Linkd In Facebook.

15. FAVOURITE TV COMMERCIAL OF MOTORCYCLES AND THE REASON FOR ITS REMEMBERANCE.´ 5. RATING OF THE MOTORCYCLE BRANDS BASED ON TECHNICAL SPECIFICATIONS. the definitely male campaign. 6. Industry Internship Report 2011 Page 63 . 2-Hero Honda Hunk-Teaser campaign (looks sturdy) 3-Hero Honda Splendor-Old classic advertisement. 4-Hero Honda Karizma ± Because of Hrithik Roshan and Slogan ³Desh Ki Dhadkan Dhak Dhak go.Stunts.. Rating based on Technical specifications Yamaha Hero Honda Bajaj Suzuki T S e Honda Mahindra Yamaha was preferred by the customers on the first place followed by Hero Honda and Bajaj. CONSUMER PERCEPTION ANALYSIS ON ECONOMY SEGMENT MOTORCYCLES 16.Bajaj Pulsar. Looks and style..Royal Enfield ± Background appearances. 1-Tvs Apache RTR ± Theme background and latest vision.

Hero Honda 2-Yamaha 3-Bajaj 4-Tvs 18.17. RATING OF THE MOTORCYCLE BRANDS BASED ON LOOKS AND STYLE Rating based on looks & style Hero Honda Yamaha ajaj f Honda TVS ahindra g Suzuki 1. AWARENESS OF NEW FEATURES PRESENT IN MOTORCYCLES 1-Automatic indicators 2-puncture resistant tyres as in Honda Activa 3-Engine shield 4-Mobile Charger 5-Free gear start Industry Internship Report 2011 Page 64 .

Below Rs. ii. 15000 15000-25000 25000-35000 Above 35000 N/A Table 4-1.Aware ess Automatic indicators uncture resistant tyres h Engine shield Mobile Charger Free gear start Your monthly Income? i. 15000 15000-25000 25000-35000 Above 35000 N/A 18 26 49 28 33 Industry Internship Report 2011 Page 65 . v. iv. iii.Monthly Income % of Respondent Monthly Income Below Rs.

e. 15000 12% 1500025000 17% 25000-35000 32% Figure 4-1 Monthly Income Analysis: From the data obtained through survey it can be analyzed that most of the respondent belongs to the income group of Rs. Marital Status - Married ( ) Bachelor ( ) Tick mark the right option Martial Cumulative Frequency Valid Married Bachelor Total 83 178 261 Percent 29. also it includes the one who intend to buy a new one. 32%. The income group having income above Rs.9 70. It shows that most of the respondents are the working category people who majorly own a motorcycle.0 Industry Internship Report 2011 Page 66 .35000 represents 18%.Mont ly income N/A 21% Above 35000 18% Below Rs. They are basically the student groups who are dependent on their parents and representing 21%.1 100.9 70. 25000 -35000 i.0 Valid Percent 29. The income group below Rs.15000 has the minimum representation.9 100.1 100.0 Percent 29. The second category of respondents is those who don t have any income as such.

0 Total 154 100.9 29. This question would help to identify the difference between the buying behaviours and spending patterns of both Married as well as Bachelor respondents in the questions to come. ii.0 39.8 Valid Percent 13.0 26.0 Industry Internship Report 2011 Page 67 .6 33. 70 percent of the total sample size and the remaining 30% is comprised of the married respondents.0 Percent 13.Maritial Married 30 i Bachelor 70 p Analysis: From the data obtained through survey it can be analyzed that most of the respondents are Bachelor i.1 32. iv.e.8 26. iii.2 25.6 100.6 73. How old are you? i.4 100. 18-25 26-30 31-35 Above 36 Age Cumulative Frequency Valid 18-25 26-30 31-35 above 36 20 41 52 41 Percent 12.

2 57.2 57. Do you own a motorcycle? i) ii) YES NO [ ] [ ] Do you own a motorcycle Cumulative Frequency Valid No yes Total 65 89 154 Percent 42.0 Valid Percent 42. It clearly indicates that the majority of the survey¶s respondents are of mid-age. 50.0 Percent 42.0 Industry Internship Report 2011 Page 68 . 30%. This analysis can be supported by the various cross tabulations which are performed keeping into consideration the change in preferences and how they differ from every age-segment.Age 18-25 12% Above36 30% 26-30 25% 31-35 33% Analysis: From the data obtained through survey it can be analyzed that most of the respondents are in the age group of 31-35 i. who apparently does not want to spend more than Rs.8 100.e.8 100.2 100.000 on a new motorcycle. 33% followed by the Above 36 age slab i.e.

Do you own a motorcycle No 42% Yes 58% Analysis: From the data obtained through survey it can be analyzed that most of the respondents own a motorcycle i. This can be considered as a potential market for the organization as most of the respondents who do not own a motorcycle do intend to buy one in future. age * Do you own a motorcycle Cross-tabulation Do you own a motorcycle No age 18-25 26-30 31-35 above 36 Total 9 16 22 18 65 Yes 11 25 30 23 89 Total 20 41 52 41 154 Industry Internship Report 2011 Page 69 . 58 percent whereas there are still 42 percent who do have one.e.

YES NO [ ] [ ] Industry Internship Report 2011 Page 70 . Do you intend to buy one in future? I. This particular age group people identifies the target group which wants to invest in a product that is good value for money and also economic in nature.Age*Do you own a motorcycle rossta ulation 35 30 25 20 15 10 5 0 18-25 26-30 age No Yes 31-35 above 36 Analysis: The given data above illustrates the Age and Do you own a motorcycle Cross-tabulation. II. Clearly indicates that maximum number of people owning motorcycles lie in the age group of 31-35.

90 percent of the respondents want to buy a new motorcycle. There are few cross-tabulations that are performed. This clearly addresses the demand in the market. irrespective of whether they own one as of now or not. Now what is it that they look in for before buying a new motorcycle is to be understood. Industry Internship Report 2011 r Yes 90 Page 71 . which would help to analyze the relations and intentions of people from various age groups.Do you intend to uy one in future q No 10 Analysis: From the data obtained through survey it can be analyzed that most of the respondents intend to buy a new motorcycle.

0% Total 24 100.7% 6 15.0% electric bike can t say don t want 1 4.0% 0 .1% 2 2.9% 0 .0% 0 .0% 0 . Case Processing Summary Cases Valid N Affordability purchase * Future 261 Percent 100.7% 0 .3% 0 .4% 0 .0% N 261 Total Percent 100.3% 0 .0% Affordability Total Count 210 8 9 22 12 261 Industry Internship Report 2011 Page 72 .0% 49 100.4% 3 3.0% 21 100.3% 0 .2% 5 5.2% 2 8.0% 0 .0% Affordability 40001-50000 Count % within 70 76.ANALYSIS OF OBJECTIVES 1.0% Affordability 50001-60000 Count % within 29 78.0% 1 2.0% 37 100.3% 2 5.0% 38 100.0% Affordability * Future purchase Cross tabulation Future purchase Affordability Less than 30000 Count % within motorbike 21 87.0% 8 16.0% Affordability 60001-80000 Count % within 41 83.0% N 0 Missing Percent .3% 12 13.8% 2 5.0% Affordability 30001-40000 Count % within 28 73.5% scooter 0 .0% 0 .0% 92 100.7% 7 18. This objective can be analysed with the help of Cross Tabulation and the associated ChiSquare value to assess if a relationship exists between two nominal scaled variables.0% Affordability More than 80000 Count % within 21 100. To examine whether income accounts for future purchasing preferences.

5% scooter 0 .0% 0 .0% 38 100.634 261 The Chi-Square analysis is the examination of frequencies of two-nominal scaled variables in cross tabulation to determine whether the variables have a relationship.426 65.8% 2 5.4% 3 3.0% Total 24 100.0% 1 2.0% Affordability 40001-50000 Count % within 70 76.1% 9 3.0% 8 16.2% 2 8. Industry Internship Report 2011 Page 73 .1% 2 2.3% 2 5.Affordability * Future purchase Cross tabulation Future purchase Affordability Less than 30000 Count % within motorbike 21 87.3% 0 .0% electric bike can t say don t want 1 4.0% 0 .0% 21 100.0% Affordability 60001-80000 Count % within 41 83.4% 0 .0% Affordability Total Count within Affordability Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 65.0% Affordability More than 80000 Count % within 21 100.0% 0 .000 .3% 0 .551 a 210 80.319 .4% 22 8.3% 0 .0% 37 100.7% 0 .0% Affordability 50001-60000 Count % within 29 78.7% 7 18.000 .0% df 20 20 1 Asymp.6% 261 100.0% Affordability 30001-40000 Count % within 28 73.0% 49 100.7% 6 15.2% 5 5.0% 0 .0% 0 .9% 0 .4% 12 4.5% 8 3. .0% 92 100.3% 12 13.

001-80. .001-40. Bartlett's Test of Sphericity Approx. The second table Chi-Square tests shows that at 95% significance level the value is less than .497 38.000-50. Chi-Square df Sig. To analyse various attributes considered by consumers while making their purchase.Afforda ility to future urc ase Motorbike Scooter Electric Bike Can't say Don. KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy.000 s Less t an 30000 30.000 The case processing summary above clearly depicts that out of 300 respondents.5% of the total intenders. The crosstab table above shows that out of 261 respondents 210 respondents wanted to purchase a motorcycle in future that is 80.001-60.000 category. 2. 261 respondents who were intenders answered this question.010 Industry Internship Report 2011 Page 74 .001-50.959 21 .000 7 8 0 1 0 0 0 0 0 0 0 More t a n 80. the majority falls under the Rs 40.05 which shows that there is a significant relationship between income and future purchase.000 50.000 60.t want 70 41 28 21 29 21 12 0 1 2 0 s 6 2 2 0 5 3 2 40.

439 12.209 35.743 89.083 1.781 15.142 1.345 1.5 so the table above shows the value of 0.497 there is a slight difference which could be rectified if the sample size is more.717 % of Variance 19.209 16.781 15.107 % of Variance 17.209 35.175 1.083 1.900 Extraction Method: Principal Component Analysis.011 .460 65.091 65.460 65.809 Cumulative % 17.990 51. Total Variance Explained Initial Eigenvalues Component Factors 1 2 3 4 5 6 7 Total 1.133 15.471 14.899 .The Kaiser-Meyer-Olkin measure of sampling adequacy should be between 0-1 and should not be less than 0.129 1.010 10.248 Cumulative % 19.900 78.637 33.209 16.011 Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings % of Variance 19. Industry Internship Report 2011 Page 75 .958 50.235 1.175 1.471 14.345 1.439 Cumulative % 19.000 Total 1.990 51.843 11.900 Total 1.637 16.771 .321 16.752 100.

765 looks& .725 .783 .The screen plot graphs the Eigen-values against the factor number Rotated Component Matrixa Component 1 Factor price Factor mileage Factor style Factor maintenance Factor resale Factor performance Factor safety .719 .862 2 3 .729 4 Extraction Method: Principal Component Analysis.710 . Industry Internship Report 2011 Page 76 . Rotation Method: Varimax with Kaiser Normalization.

The above table shows how the 7 factors are finally reduced to 4 factors which are the most important factors in making the purchase decision.862 2 3 .719 .Factor mileage and Factor Maintenance can be grouped together likewise in 2 component Factor performance and factor Safety.862 which shows that looks and style is the most preferred and important attribute taken into consideration before buying a motorcycle followed by Performance .710 .783 . Industry Internship Report 2011 Page 77 .729 4 Extraction Method: Principal Component Analysis.Rotated Component Matrixa Component 1 Factor price Factor mileage Factor style Factor maintenance Factor resale Factor performance Factor safety .765 looks& . Rotation Method: Varimax with Kaiser Normalization. In component 4 looks and style shows a value of 0.725 . The Rotated Component Matrix shows that in the first component.Maintenance and Mileage.

2 93.2 65.9 6.0 Valid Percent 94.0 Percent 41.8 12.4 93.6 .4 .6 55.6 2.3 Valid Percent 99.6 10.8 97.6 13. TVSSTARCITY Cumulative Frequency Valid NA MOST PREFERRED PREFERRED NEUTRAL LEAST PREFFERED NOT PRFERRED Total Missing Total System 64 21 16 17 16 20 154 10 164 Percent 39.2 96.6 76.0 100.6 2.2 2. To determine the consumer perception and choice towards different motorcycle brands and also determine the most preferred motorcycle in the economy segment.0 TVSJIVE Cumulative Frequency Valid NA 153 Percent 93.0 100.8 10.4 Percent 99.6 87.4 2.9 6.4 Industry Internship Report 2011 Page 78 .0 12.0 10.1 100.0 TVSSPORT Cumulative Frequency Valid NA PREFERRED NEUTRAL NOT PRFERRED Total Missing Total System 145 4 1 4 154 10 164 Percent 88.4 100.1 100.4 11.4 13.8 9.0 Valid Percent 41.3.0 Percent 94.6 100.4 9.

6 100.7 7.3 1.0 HEROHONDASPLENDOR100 Cumulative Frequency Valid NA MOST PREFERRED PREFERRED NEUTRAL LEAST PREFFERED NOT PRFERRED Total Missing Total System 95 11 16 13 10 9 154 10 164 Percent 57.9 6.4 6.4 1.1 100.0 Valid Percent 94.7 94.2 87.6 .1 10.4 8.1 5.6 93.5 5.5 93.NOT PRFERRED Total Missing Total System 1 154 10 164 .7 9.9 1.2 1.9 6.7 68.0 Percent 94.2 100.8 1.9 6.0 Percent 61.6 93.8 100.0 HEROHONDASPLENDORNXG Cumulative Frequency Valid NA MOST PREFERRED PREFERRED NEUTRAL LEAST PREFFERED NOT PRFERRED Total Missing Total System 145 2 3 2 1 1 154 10 164 Percent 88.6 100.0 .2 95.1 100.7 99.2 1.8 79.0 100.1 100.3 .6 .0 Valid Percent 61.2 .5 97.0 Industry Internship Report 2011 Page 79 .9 6.4 100.9 6.8 7.4 98.

8 Industry Internship Report 2011 Page 80 .1 100.8 9.3 70.1 100.0 88.1 100.5 32.7 30.2 3.0 Percent 30.5 3.8 7.9 83.0 Valid Percent 30.1 100.HEROHONDAPASSIONPRO Cumulative Frequency Valid MOST PREFERRED PREFERRED NEUTRAL LEAST PREFFERED NOT PRFERRED Total Missing Total System 47 50 39 15 3 154 10 164 Percent 28.9 100.3 9.0 Percent 79.5 25.1 87.8 3.7 5.3 98.0 HEROHONDACDDELUXE Cumulative Frequency Valid NA MOST PREFERRED PREFERRED NEUTRAL LEAST PREFFERED NOT PRFERRED Total Missing Total System 123 5 6 9 5 6 154 10 164 Percent 75.7 93.7 5.0 92.5 63.9 6.0 3.7 1.0 HEROHONDACDDAWN Cumulative Frequency Valid NA MOST PREFERRED PREFERRED NEUTRAL 75 9 12 13 Percent 45.5 23.3 7.9 96.7 5.5 7.9 5.5 62.9 3.0 3.9 Valid Percent 48.0 3.7 54.2 3.9 6.4 Percent 48.8 8.1 1.8 93.0 Valid Percent 79.9 100.

2 14.9 6.0 BAJAJDISCOVER100 Cumulative Frequency Valid NA MOST PREFERRED PREFERRED NEUTRAL LEAST PREFFERED NOT PRFERRED Total Missing Total System 80 11 8 17 18 20 154 10 164 Percent 48.8 100.1 5.4 4.0 Valid Percent 51.7 13.1 100.0 Valid Percent 51.3 18.3 75.1 100.LEAST PREFFERED NOT PRFERRED Total Missing Total System 22 23 154 10 164 13.9 7.1 100.5 75.1 100.0 93.4 14.9 59.0 85.1 64.2 93.3 87.3 80.2 11.0 12.5 4.0 Industry Internship Report 2011 Page 81 .0 100.2 5.3 5.0 Percent 51.9 13.7 4.9 93.0 14.8 5.9 6.0 11.0 100.9 10.4 11.3 14.2 17.1 5.5 94.2 100.9 6.9 100.0 Percent 51.0 BAJAJDISCOVER125 Cumulative Frequency Valid NA MOST PREFERRED PREFERRED NEUTRAL LEAST PREFFERED NOT PRFERRED Total Missing Total System 79 28 9 8 22 8 154 10 164 Percent 48.8 6.3 69.

3 100.4 93.7 9.6 1.9 6.8 2.2 5.4 11.BAJAJPLATINA Cumulative Frequency Valid NA MOST PREFERRED NEUTRAL LEAST PREFFERED NOT PRFERRED Total Missing Total System 120 9 4 18 3 154 10 164 Percent 73.1 85.0 Valid Percent 52.0 Valid Percent 79.0 1.8 12.7 1.9 Percent 79.9 6.0 SUZUKISLIGSHOT Cumulative Frequency Valid NA 123 Percent 75.0 Percent 77.9 100.6 14.6 54.9 83.1 100.0 Percent 52.7 100.1 10.0 Valid Percent 77.5 61.6 11.4 1.8 93.8 13.8 86.9 5.9 Industry Internship Report 2011 Page 82 .5 2.8 6.4 13.1 100.4 98.0 HONDACBTWISTER110 Cumulative Frequency Valid NA MOST PREFERRED PREFERRED NEUTRAL LEAST PREFFERED NOT PRFERRED Total Missing Total System 81 3 11 16 21 22 154 10 164 Percent 49.7 72.9 7.1 100.

6 10.1 89.0 Valid Percent 86.0 Percent 86.1 100.9 93.0 Industry Internship Report 2011 Page 83 .2 100.0 89.6 92.4 93.2 94.0 1.1 100.8 93.4 4.9 6.4 3.8 3.0 2.3 1.2 2.4 89.8 85.6 100.0 YAMAHAYBR110 Cumulative Frequency Valid NA PREFERRED NEUTRAL LEAST PREFFERED NOT PRFERRED Total Missing Total System 133 7 7 3 4 154 10 164 Percent 81.4 90.6 9.4 100.8 100.0 YAMAHASS125 Cumulative Frequency Valid NA PREFERRED NEUTRAL LEAST PREFFERED NOT PRFERRED Total Missing System 133 5 4 4 8 154 10 Percent 81.1 4.5 1.9 2.6 5.9 6.6 100.4 100.4 2.9 3.5 4.MOST PREFERRED PREFERRED NEUTRAL LEAST PREFFERED NOT PRFERRED Total Missing Total System 3 5 6 1 16 154 10 164 1.1 Valid Percent 86.0 3.4 4.6 2.0 81.0 Percent 86.8 2.7 .9 6.2 3.3 4.5 97.9 95.1 3.9 .

. . . ‡ „ˆ „ˆ ‰„ ‰ ‰ € ‡ ‡‡ ƒ † „ „ ‚ € „† € ‡ € „ƒ … … ’ …  ‘ ‘ ‘“ y u ”‘ –– • u ”‘ . . . . . . . „ ƒ‚ P EFE E . .YA AHASS125 umul ti e Percent „ ƒ‚ x u w t Frequency V li A ED …… … €  y y ’ v u Percent €€ ‚ V li Percent . t l Most Preferred Econo y Segment Motocycle TVS StaR City 17 ˜ Hero Honda CD Dawn7 — Bajaj Discover 100 17 ˜ Hero Honda Splendor plus 19 ˜ Anal i As per the data obtained and anal ed on the basis of the mean ranks given by the respondents to their most preferred economy segment motorcycle amongst the given list in I ustr I t r shi R ort 2011 P 84 ˜ € i ing System HeroHonda Splendor 40 € ‡ ‡‡ ƒ ‰‚ ˆ ˆ‰ ‚ „‰ € ‡ ‡‡ ˆ  ƒ ˆ ƒ ˆ ˆ † v u . . . . A EAS P EFFE ED …… P FE … ED t l . . .

6% 7 8.0% Industry Internship Report 2011 Page 85 . Hero Honda Splendor plus 3.5% scooter 1 .6% 55 68. Hero Honda Splendor 2.0% 5 80 6.8% 210 80.8% 8 3.0% 12 261 4.4% don¶t want 7 Total 181 3.0% 22 8. Bajaj Discover 100 5. 1.4% can¶t say 14 7.9% 100.7% 8 10.the questionnaire.6% 100. To analyse the impact of demographic factors on choosing a two-wheeler and specific brands of motorcycles.3% 9 3. Hero Honda CD Dawn 4. the following conclusion can be drawn. TVS StaR City 4.3% 100. The above listed motorcycles in the pie-chart are the most preferred economy segment motorcycles in the market as of now. Marital * Future purchase Crosstab Future purchase motorbike Marital bachelor Count % within Marital married Count % within Marital Total Count % within Marital 155 85.1% electric bike 4 2.2% 5 6.

250

200

motorbike 150 scooter

electric bike can t say
100

don t want
Total

50

0

Married

Bachelor

Total

Out of the total respondents who were intenders 181 were Bachelors and 60 were married. 210 respondents wanted to buy a motorcycle in future that is 80.5 % of the total respondents.

Age

uue u

se
Crosstab Future purchase motorbike scooter electric bike 0 .0% 2 2.3% 6 7.3% 1 1.9% 9 can t say 3 7.9% 8 9.2% 7 8.5% 4 7.4% 22 don t want 0 .0% 5 5.7% 4 4.9% 3 5.6% 12 P 86 Total 38 100.0% 87 100.0% 82 100.0% 54 100.0% 261

age

18-25

Count % within age

34 89.5% 68 78.2% 65 79.3% 43 79.6% 210 ort 2011

1 2.6% 4 4.6% 0 .0% 3 5.6% 8

26-30

Count % within age

31-35

Count % within age

above 36 Count % within age Total I Count

ustr I t r shi R

Crosstab Future purchase motorbike scooter age 18-25 Count % within age 26-30 Count % within age 31-35 Count % within age above 36 Count % within age Total Count % within age 34 89.5% 68 78.2% 65 79.3% 43 79.6% 210 80.5% 1 2.6% 4 4.6% 0 .0% 3 5.6% 8 3.1% electric bike 0 .0% 2 2.3% 6 7.3% 1 1.9% 9 3.4% can t say 3 7.9% 8 9.2% 7 8.5% 4 7.4% 22 8.4% don t want 0 .0% 5 5.7% 4 4.9% 3 5.6% 12 4.6% Total 38 100.0% 87 100.0% 82 100.0% 54 100.0% 261 100.0%

250

200

motorbike 150 ooter
d d™

ele tric bike
can t say 100 don t want

Total 50

0

18-25

26-30

31-35

above 36

Total

The above Cross tabulation shows that maximum number of intenders fall under the age group of 26-35 years out of which the majority wants to buy a motorcycle in future.

I

ustr I t r shi R

ort 2011

P

87

Mari al

wo-w eeler
Crosstab

wo-wheeler
h f

married

19
j

26
j

8
j

18
j

2
j

2
j

2
j

0
j

3
j

80 100. 0 261 100. 0
j j j

23.8 otal 86
e

3.3E1 1.0E1 2.3E1 2.5 71 39 38 6

2.5 6

2.5 2

.0

3.8 5 1.9

8
j

300

250 200 150 100 50 0

Bachelor

Married

Total

In the above Cross Tabulation it shows that out of 181 respondents who were bachelors 67 prefer Hero Honda, 45 prefer Bajaj and 31 prefer TVS. This shows that majority of the I ustr I t r shi R ort 2011 P 88

j

j

j

j

j

j

j

33.0

2.7E1 1.5E1 1.5E1 2.3

2.3

.8

3.1

Hero Honda Bajaj
TVS Honda

Suzuki royal Enfield Mahindra
Yamaha others Total

j

j

j

j

j

j

j

j

j

j

i

Marital

ba helor

67 37.0

45

31

20

4

4 2.2

0 .0

8 4.4

2 1.1

2.5E1 1.7E1 1.1E1 2.2

e

g

e

Hero Honda Bajaj

VS

Hond royal Mahindr Ya ah a Su u i Enfield a a others otal 181 100. 0

e

bachelors prefer Hero Honda over the other brands. Out of 80 married respondents 26 prefer Bajaj, 19 prefer Hero Honda and 18 prefer Honda.

Cross Tabulation of Age * Two-wheeler

Two-wheeler Hero Honda Age 1825 14 Bajaj 7 TVS 6 Royal Honda Suzuki Enfield Mahindra Yamaha others Total 8 0 .0% 5 5.7% 1 1.2% 0 .0% 6 2.3% 1 2.6% 2 2.3% 1 1.2% 2 3.7% 6 2.3% 1 2.6% 0 .0% 1 1.2% 0 .0% 2 .8% 1 2.6% 1 1.1% 4 4.9% 2 3.7% 8 3.1% 0 38

36.8% 18.4% 15.8% 21.1% 27 30 9 10

.0% 1.0E2 % 3 87

2630

31.0% 34.5% 10.3% 11.5% 29 22 15 9

3.4% 1.0E2 % 0 82

3135

35.4% 26.8% 18.3% 11.0% 16 12 9 11

.0% 1.0E2 % 2 54

abo ve 36 Total

29.6% 22.2% 16.7% 20.4% 86 71 39 38

3.7% 1.0E2 % 5 261

33.0% 27.2% 14.9% 14.6%

1.9% 1.0E2 %

Industry Internship Report 2011

Page 89

Bajaj and TVS respectively. unt S srq more than showroom |{ showrooms }{ showrooms ~x showrooms {{ same v others w ot l v v ~ arital achelor The above table shows that 76% of the bachelors visit one or two showrooms before buying a motorcycle whereas only 68% of the married respondents visit 1 or two showrooms on the other hand only 24% bachelor¶s visit more than 3 showrooms and hardly 11 % of the married respondents visit more than 3 showrooms. I ustr I t r shi R ort 2011 P 90 v v otal w w {€ }{ }} v married t ~ u t   v  x | n Mari al S owrooms m po y ross abulation rooms twice the k x x l k w ~ x v z .Crosstab 300 250 200 Hero Honda Bajaj TVS Honda 150 100 Suzuki Royal Enfield Mahindra Yamaha 50 0 others Total 18-25 26-30 31-35 Above 36 Total From the above Cross tabulation it can be analysed that the majority of the intenders fall under the age group of 26-35 years and prefer Hero Honda.

Industry Internship Report 2011 Page 91 . Age * Information Cross tabulation Count Information newspapers/ magazines age 18-25 26-30 31-35 above 36 Total 22 60 53 29 164 TV/radio 2 4 6 4 16 internet 2 11 6 8 27 family/friends 10 10 12 10 42 bill boards/ pamphlets 1 2 2 3 8 others 1 0 2 0 3 Total 38 87 82 54 261 The above table displays out of 261 respondents 164 have collected the information about motorcycles before making the purchase decision from newspapers and magazines as it is one of the cheapest and easiest available option from the view point of customers.Age * Showrooms Cross tabulation Count Showrooms more than 3 1showroom age 18-25 26-30 31-35 above 36 Total 8 28 23 21 80 2 showrooms 17 21 24 15 77 3 showrooms 8 20 13 6 47 showrooms 5 17 20 12 54 twice the same 0 0 1 0 1 others 0 1 1 0 2 Total 38 87 82 54 261 The above table shows that respondents under the age group of 26-30 years have chosen all the options of visiting the showroom . the majority chooses to visit only one or two showrooms before buying the motorcycle and the majority is above the age of 30 years. There are only 2 respondents who chose to visit the same showroom again.

0 Industry Internship Report 2011 Page 92 .0 Percent 36.6 100.7 100.4 63.4 63.7 100.0 Percent 62.6 100.0 Valid Percent 36.4 100.3 100.3 37. To understand the impact of media on consumer buying behaviour and also zero in the most suitable means to promote the brand and products Newspaper/Magazines Cumulative Frequency Valid 0 1 Total 56 98 261 Percent 36.0 News a er/Magazines No 36% Yes 64% TV/Radio Cumulative Frequency Valid 0 1 Total 103 158 261 Percent 62.5.0 Valid Percent 62.3 37.

0 Industry Internship Report 2011 Page 93 .2 20.4 100.2 20.8 100.6 100.0 Percent 63.0 Valid Percent 63.4 100.0 Valid Percent 79.0 Percent 79.6 36.8 100.0 Internet Yes 21% No 79% Family/Friends Cumulative Frequency Valid 0 1 Total 98 56 154 Percent 63.2 100.6 36.T / adio Yes 38% No 62% Internet Cumulative Frequency Valid 0 1 Total 122 32 154 Percent 79.

9 9.0 Valid Percent 90.Family/Friends Yes 36% No 64% Bill Board/Pamphlets Cumulative Frequency Valid 0 1 Total 140 14 154 Percent 90.0 Percent 90.1 100.9 100.1 100.9 9.0 Bill Board/Pamphlets Yes 9% No 91% Others Cumulative Frequency Percent Valid Percent Percent Industry Internship Report 2011 Page 94 .

0 11. which means there is a large scope for advertisements and promotions in this particular mode to increase the public awareness. however keeping the Indian audience in mind Newspapers/Magazines are the best source to advertise the products.0 100. It is followed by TV/Radio. Internet has taken a major leap last couple of years.Valid 0 1 Total 137 17 154 89.0 100. it is a conventional mode. however it still dies a short lived death due to the lack of appropriate promotion strategies adopted by the organization.0 89. and youth is glued to the social networking sites most of the time. Newspapers/Magazines are still the most cherished and desired source of information and food for thought for the consumers. Family and Friends also play a major role these days in influencing consumer¶s buying decision. this still remains a secondary source of media that influences consumers. and companies can design some innovative strategies for Word-To-Mouth Communication. However.0 Ot ers Yes 11% No 89% Analysis: When we talk about the importance of media in influencing the consumer buying behaviour. it happens that a product has every possible thing that it needs to become a success. This purely works on Word-To-Mouth Marketing. Industry Internship Report 2011 Page 95 .0 11. Often.0 89. Although.0 100.

Industry Internship Report 2011 Page 96 . 70% of the sample size is bachelor whereas 30% is married. an exploratory research was performed. Based on the facts procured and keeping the primary data into consideration. to understand the market scenario. y y y To analyze various attributes consumers look for while making their purchase To examine whether income accounts for future purchasing preferences. perception and buying behaviour towards the economy segment motorcycles in the domestic market.´ As I carried on with the research. The average income of the sample size lies between Rs. the analysis performed has helped to reach out to the desired out. A proper cross-tabulation has been done for respondents from both the categories.5 FINDINGS The primary objective of the study was to ³Investigate consumer attitude. To understand the impact of media on consumer buying behaviour and also zero in the most suitable means to promote the brand and products The survey was conducted amongst 261 respondents keeping the target audience into consideration. to understand the opinion and attitude of both the groups when it comes to consumer buying behaviour. The responses were taken exclusively from the males in an d around the Bangalore city.10000-20000 per month which is appropriate for the target group being worked upon for this particular research which is confined to understand the consumer buying behaviour for economy segment motorcycles in the domestic market. To understand the consumer behaviour. the following secondary objectives were chalked out: y To determine the consumer perception and choice towards different motorcycle brands and also determine the most preferred motorcycle in the economy segment.

Age being one of the most important parameter. This particular target group synchronizes with the income they earn.Demographic vitals play an important role to understand the consumer behaviour. 60.000 for buying a new motorcycle. Around 58% of the sample size owns a motorcycle. Majority of the respondents are willing to spend somewhere around Rs. around 90% of the respondents are intending to buy a new motorcycle. Industry Internship Report 2011 Page 97 . clarifies that there is a massive demand for economical segment motorcycles in the market. that if people would want to buy a new motorcycle. people in the age group of 30 and above are the ones who own hav e a majority amongst the other age group. clearly. low on maintenance. 000-50. this particular age group either belongs to the working class or rural business class. who when asked during the exploratory research.40. Keeping the Indian social scenario in mind.000-80. and does not dig a hole in their pockets with the price tag. It can also be interpreted. the key is to identify the target audience well and position the products in such a way that the consumer is left with no other option but to go for it. This particular analysis. would only invest in something that is a good value for money. A consumer will spend money on something only if he seeks value out of it. defining the demand in the market for economy segment motorcycles. and are willing make an economical investment. When cross-tabulated with the age and income they earn.000 as there are some amazing brands available in the executive segment as well. When cross-tabulated age with are you intending to buy a new motorcycle. irrespective of already owning one. majority of the sample size belongs to the age group of 30 and above. they will mostly buy an economy segment motorcycle. When surveyed. On the other hand. of already owning one. without any doubt it has to be a motorcycle. irrespective. there is still a good demand of motorcycles ranging from Rs. with almost 85% of the respondents prefer to buy a motorcycle over any other format of a two-wheeler. Talking about the most preferred two-wheeler category in the market. majority of the responses were from the age group of 31 and above. A perfect fit for economy segment motorcycles.

000-50. however keeping the Indian audience in mind Newspapers/Magazines are the best source to advertise the products. It is followed by TV/Radio. 40. hero Honda stand s tall with maximum number of responses. First. it happens that a product has every possible thing that it needs to become a success. this still remains a secondary source of media that influences consumers. Family and Friends also play a major role these days in influencing consumer s buying decision. However. When we talk about the importance of media in influencing the consumer buying behaviour. On the contrary. Internet has taken a major leap last couple of years. Yamaha and Honda have also started creating a buzz in the market with most of the youngsters following the brand and recognizing its motorcycles on the road and advertisem ents. and brand they recognize. Thus. it is a conventional mode. a great opportunity and potential consumer base waits on the sites to be flooded with promotion s and information.Age and spending cross-tabulation identified that the target group of the research is the one with majority who is willing to spend Rs. This purely works on Word -To-Mouth Marketing. it explains the purchasing pattern of the consumers. how much are they willing to spend. however it still dies a short lived death due to the lack of appropriate promotion strategies adopted by the organization. the entire data of 261 respondents was segregated into two divisions. which means there is a large scope for advertisements and promotions in this particular mode to increase the publi c awareness. i. and youth is glued to the social networking sites most of the time. the respondents who do not own a motorcycle and intend to buy one. Their respons es have been recorded and analyzed separately. and companies can design some innovative strategies for Word-To-Mouth Communication. Although. Talking about the brand they have used.000 for a new motorcycle. To analyze various attributes consumers look for while making their purchase.e. Newspapers/Magazines are still the most cherished and desired source of information and food for thought for the consumers. followed by Bajaj and TVS. Often. The attribute with the least mean is the one Industry Internship Report 2011 Page 98 . Perhaps.

So. Hero Honda Splendor Hero Honda Splendor Plus TVS StaR City Industry Internship Report 2011 Page 99 . the following con clusion can be drawn. it was figured out that there are three major components that accounts for the most important attributes in an economy segment motorcycle. Mileage plays an important role in influencing a consumer s buying decision. Since they have been conglomerated a specific name can be defined for these three components and they can be used during the New Product Development (NPD) and be prioritised according to the needs and demands in the market.that is preferred the most. With the help of factor analysis. whereas. Majority of them just visit one showroom and make their decision. therefore. Mileage (2. People in the age group of above 36 have a very stable and calm approach when they go ahead to buy a new bike. As per the data obtained and analyzed on the basis of the mean ranks given by the respondents to their most preferred economy segment motorcycle amongst the given list in the questionnaire. these components can be worked upon collectively or individually and probably can be useful for the organization as they go on with their marketing plans and design new strategies for the same.65) is the second most preferred attribute by the respondents who do not own a motorcycle and intend to buy one. they end up visiting two or maximum 3 showrooms to make their final decision.77) stand at number 3. Similarly Looks & Style (4. when it comes to the preference of consumers according to the attribute. Mileage is followed by Price (3. In this case.38) is the attribute which has been ranked 1 by the respondents who do not own a motorcycle and intend to buy o ne. young people in the age group of 18-25 find it difficult to come to a decision by visiting one showroom. The above listed motorcycles in the pie-chart are the most preferred economy segment motorcycles in the market as of now.

e. demographic and perception of the sample size. i. Industry Internship Report 2011 Page 100 .Bajaj Discover 100 Hero Honda CD Dawn Therefore. social. all objectives have been met keeping into consideration all the aspects.

6 RECOMMENDATIONS The research undergone simplifies a lot of ambiguity about the market and its dynamics in today¶s scenario. Certain areas can be worked upon like. There is always a demand for a good product in the market. the target group is majorly an audience which is in the age group of 30-40 years. However. There requirements are minimal and they believe in true value for money. During the exploratory research phase of the project. However. Consumers are generally not aware of what they are consuming. earning not more than 25000-35000 rupees per month. I observed that people in South India prefer a TVS motorcycle over any other eminent brand available in the market. the company must leverage on this fact and flood the market with such economical segment products which caters the need of the masses and also satisfies them. the irony is there has been no product differentiation as of now. TVS StaR City is a famous motorcycle in the economy segment. T V Sundaram lyengar. However. TVS as an organization differs from the above statement. by probably finetuning some selling strategies or the promotion strategies. We can term it as the pompous tradition of the marketers. Although the letters TVS represent the initials of our founder. to keep the consumers blindfolded and flooding them with loads of options always so that they remain confused and keep downing whatever comes their way. An appropriate addressing of the audience is required and thus positioning it to the right audience is extremely important. Mileage and Price. to us within TVS they have always stood for Trust. and it is giving a cut-throat competition to the legacy of Hero Honda Splendor. If these two Industry Internship Report 2011 Page 101 . Value and Service. It has been able to change the perception of people about the most reliable motorcycle after Hero Honda Splendor. consumers are still unaware about TVS Sport. It has happened a lot of times when the greatest of the products just die as they fail to appeal the audience. which needs to be worked upon. partly working class and partly rural business class. TVS enjoys an esteemed reputation in the Indian market and is known for its commitment. this does brings TVS motor into an advantageous position over the competitors. Call it nepotism of soil or probably the proximity from the manufacturing unit. According to the analysis.

Industry Internship Report 2011 Page 102 . just like TVS Apache. a lot of difference can be made. One particular brand can become a flagship brand for the whole organization.attributes are addressed to the correct audience with proper positioning and continuous promotions.

and the guidance of our industry and faculty guides. the connect was made. Being on the field and observing things were different when they were analyzed on the computer screen. The automobile market is massive with lots of R&D and NPD going on every day. Based on the responses. Cross-tabulations helped a lot in identifying a relation between the given data. overall. A questionnaire was drafted. and the objective to understand and determine the behaviour. The survey was carried out pan Bangalore and some rural areas like anekal and attible. the consumer behaviour research really teaches one the physiology of the consumers when we interact with them and record their reactions and demeanour with the flow of questions as well as the time consumed on each questionnaire. In a country like India. however. Lot of secondary data was collected and analysed. keeping into consideration the target group and their preferences that they are aware of. which eventually elucidated a lot of ambiguity regarding the consumer¶s buying preference. it was compiled in the excel format and thus uploaded on SPSS for the analysis. attitude and perception was identified fruitfully. Nothing was pre defined and it had to start from a scratch. an exploratory research program was designed. two-wheelers are the life-line of Indian household. identification of the target group. All these enactments of the respondents accounts to the consumer behaviour which apparently cannot be quantified. After a thorough assessment of the data collected. Various tests were performed and each and every particular question was analysed in order to reach the desired objective. in order to get a general opinion of the respondents. a final close ended questionnaire was drafted. For example: preferences of consumers. The research was started with an aim to achieve the desired objectives. Based on that. With the analysis of the exploratory data. Industry Internship Report 2011 Page 103 . expectations and scope of the study. certain parameters were chalked-out.7 CONCLUSION The research was performed to understand and analyze the consumer behaviour towards the economy segment motorcycles in the domestic market. This study helped in understanding the market and also the opportunities that lies ahead for the companies.

Insights of Two-Wheeler industry. Never the less. Working dynamics and characteristics of TVS Motor Company Ltd. 4. A snapshot of learning outcome: 1. 5. however. Able to relate the theories studied (in marketing) to what is being practised in the industry. breaking the ice. it did help me improve my interpersonal skills.8 LEARNING OUTCOME Consumer behaviour however. Reaching out to random people. All in all. TVS experience was enriching as well as tiresome too. convincing them to give their responses was not as easy as expected. broaden my learning curve and also the ability to adapt and work in the new environment. 2. 3. Industry Internship Report 2011 Page 104 . From being a layman to the industry and finally ending up doing a consumer behaviour research for the same has definitely. is a vast ocean and is a never ending learning process. Understand the consumer buying behaviour and buying pattern. Sales and Promotion practises adopted by TVS Motor Company Ltd. this project brought me closer to the ground reality of the market and its dynamics.

9 BIBLIOGRAPHY

y y y y y y y y

http://www.tvsmotor.in/ http://www.visiontraininginstitute.com.au/Media/DocumentLibrary/ http://www.tvsiyengar.com// www.ibef.org www.cii.com www.scribd.com/ www.amazon.com/ www.google.co.in

Industry Internship Report 2011

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10 A
ANNE URE I

QUESTIONNAIRE NAME AGE OCCUPATION: INCOME LE EL PER ANNUM: a) 30000-45000 b) 46000-60000 c) 61000-75000 d) 76,000-100000 e) 100000 and above

QUES: Do you own a motorcycle? a) Yes b) No

QUES:) Which brand of motorcycle do you own? a) Hero Honda b) Bajaj c) TVS d) Others

QUES:) How old is your bike? I ustr I t r shi R ort 2011 P 106

a) b) c) d)

Less than 1 year 1 to 3 years 3 to 5 years More than 5 years

QUES:) What motivated you to purchase your current motorcycle? a) Advertisements b) Family & friends c) Brand Affinity d) Word-of-Mouth e) Peer Pressure f) Others QUES:)What was your top-most priority when you purchased your motorcycle Please rate them out of 1 to 5? a) Fuel efficiency b) Looks and style c) Performance d) Mileage e) Brand Image f) Maintenance cost QUES:) What is the current mileage of your motorcycle? Please specify ( ) Kms/litre

QUES:) How do you measure the mileage of your motorcycle? a) Approximation b) Resetting the meter QUES:) Are you satisfied with the mileage of your bike? a) Yes b) No
Industry Internship Report 2011 Page 107

000 and above ) QUES:) What Price did you intend to spend on your bike? a) 35.000 ) ( 55.40.000 -55000 c) 55000 and above QUES:) What is the colour of your motorcycle? Please specify ( ) QUES:) Did you request the dealer for the colour? a) Yes b) No QUES:) How many service centers do you know for your motorcycle? a) 0 b) 1 c) 2 d) 3 Industry Internship Report 2011 Page 108 .000 .000 -40.000 b) 40.000 ± 55.000 ) ( 40.c) Maybe QUES:) If no what is the reason? a) b) c) d) e) f) More than one user Over-promise by the company Over-Weight Bad Quality of tyres Poor Shock-Absorbers Others ( ) please specify QUES:) What price segment does your motorcycle fall in? a) Low price b) Medium price c) High price ( 35.

( ) QUES:) Do you think the maintenance cost is high? a) b) c) d) e) Strongly disagree Disagree Neutral Agree Strongly agree QUES:) If. then what is the reason? a) b) c) d) e) f) Frequent Foot peg problem Poor Quality of tyre and tubes Poor shock absorbers Clutch handling problem Frequent Lightning and horn problems Frequent Battery and spark plug problems Page 109 Industry Internship Report 2011 .QUES:) How often your motorcycle needs services and maintenance? a) After every 1 month b) After every 2 months c) After every 3 months d) More than 3 months QUES:) What kind of service do you generally opt for? a) b) c) d) e) f) Over-all service Carburettor and Air-filter wash Engine Oil replacement Air pressure and alignment General wash and oiling Others QUES:) What is the approximate cost of services and maintenance that you spend every year? Please specify Rs. strongly agree.

g) Accelerator wire displacement issues h) Others QUES:) Which type of service centers you use? a) Authorized Service Station b) Local Service Station c) Depending upon situation QUES:) What is the reason for such a decision? a) Cost b) Availability c) Reliability QUES:) What engine does your motorcycle has? a) DTSi engine b) CVTi engine c) I don¶t know QUES:) Mark Yes if your motorcycle has a) Twin sparks b) Carburetored engine c) Digital speedometer d) Halogen bulbs e) Disc brakes f) High resolution stickers g) Electric automatic self start h) Alloy wheels i) Puncture resistant tyres QUES:) What do you like the most about your bike? a) Style Industry Internship Report 2011 Page 110 .

b) c) d) e) f) Looks Comfort Performance Mileage others QUES:) Is there anything which you don¶t like in your bike? ( ) Please specify QUES:) What is the impact of different types of media while purchasing a motorcycle? a) High Impact b) Medium Impact c) Low Impact QUES:) Do u think it¶s important? a) Yes b) No c) Maybe QUES:) Rank the following media options according to your preference? a) b) c) d) e) f) g) h) i) j) k) Newspapers Magazines Brochures Posters Hoardings Billboards Television Radio & F.M Internet Flyers Others ( ) Please specify QUES:) Rank the following newspapers according to your convenience? a) Times of India Industry Internship Report 2011 Page 111 .

b) c) d) e) f) g) h) Hindustan Times The Hindu Deccan Herald Economic Times Statesman Indian Express The Telegraph QUES:) Rank the following magazines according to your preference? a) b) c) d) e) f) g) h) i) j) k) Filmfare magazine Woman¶s era magazine Femina magazine Front line magazine India today magazine Outlook magazine The Week magazine Overdrive magazine Top gear magazine The 4 P¶s magazine Others ( ) Please specify QUES:) Rank the following Television channels according to your preference? a) b) c) d) e) f) g) h) i) j) k) l) NDTV MTV CHANNEL [V] STAR SPORTS STAR CRICKET TEN SPORTS ESPN SONY SET MAX STAR PLUS ZEE TV DISCOVERY QUES:) What programs do you love watching on television? ( ) Please specify with a reason QUES:) Mark Yes to all the social networking sites you are associated with? a) Facebook b) Twitter Industry Internship Report 2011 Page 112 .

Internet etc ) c) Social media ( word of mouth etc) [ ] hours [ ] minutes [ ] hours [ ] minutes [ ] hours [ ] minutes QUES:) Do you recall coming across a Motorcycle commercial in the past month? a) Yes b) No QUES:) What makes you remember the commercial? a) b) c) d) e) f) g) The Brand ambassador The Jingle The slogan and Tagline The appearances and characters of the advertisement The theme The message delivered Others ( ) Please specify QUES:) Which advertisement comes in your mind when you think about motorcycles ? ( ) Please specify QUES:) Have you ever disliked any motorcycle advertisement. magazines etc ) b) Electronic media ( TV. Radio . Please answer giving a specific reason to why you did not like it? ( ) Industry Internship Report 2011 Page 113 .Net WAYN Hi 5 Yahoo Gmail Rediff Others ( ) Please specify QUES:) In 24 hours how much time do you spend on the following media? Please specify the time spent a) Print media(newspapers .c) d) e) f) g) h) i) j) k) l) My space Orkut Ibibo Tribe.

QUES:) Do you think resale value is also a parameter behind the purchasing decision? a) Yes b) No c) Maybe QUES:) Please mark yes if you are aware of the following brands of motorcycles? a) Hero Honda b) TVS c) Bajaj d) Yamaha e) Honda f) Royal Enfield g) Mahindra h) Suzuki [ [ [ [ [ [ [ [ ] ] ] ] ] ] ] ] QUES:) Please rank each brand in terms of your preference (place 1 by your first choice. 2 by your second choice and so on). a) Hero Honda b) TVS c) Bajaj d) Yamaha e) Honda f) Royal Enfield Industry Internship Report 2011 Page 114 .

g) Mahindra h) Suzuki QUES:) Are you aware of the Economy segment motorcycles? a) Yes b) No c) Maybe QUES:) Mark yes if you have heard. PARAMETERS HERO HONDA Price Reliability BAJAJ TVS HONDA SUZUKI MAHINDRA YAMAHA Industry Internship Report 2011 Page 115 . 4 by your second choice and so on) TAKING THE ABOVE MENTIONED BIKES INTO CONSIDERATION. seen or driven the following bikes? a) b) c) d) e) f) g) h) i) j) k) l) m) n) o) p) q) TVS STAR CITY 110 TVS SPORTS 100 TVS JIVE 110 HERO HONDA SPLENDOR 100 HERO HONDA SPLENDOR NXG HERO HONDA PASSION PLUS HERO HONDA PASSION PRO HERO HONDA CD DAWN HERO HONDA CD DELUXE BAJAJ DISCOVER 100 BAJAJ DISCOVER 125 BAJAJ PLATINA HONDA CB TWISTER 110 SUZUKI SLING SHOT 125 YAMAHA YBR 110 YAMAHA SS 125 MAHINDRA STALLIO 110 QUES :) Rate out of 1 to 5(place 5 by your best choice.

Comfort Mileage Style Resale Value Technology Color Safety Looks QUES:) Please rate TVS star city and sports by checking the line that best corresponds to your evaluation of each item listed? TVS STAR CITY Slow pickup_ _ _ _ _ Fast pickup Bad design _ _ _ _ _ Good design Low price_ _ _ _ _ High price Low maintenance cost _ _ _ _ _ High maintenance cost Low mileage _ _ _ _ _ High mileage TVS SPORTS Slow pickup_ _ _ _ _ Fast pickup Bad design _ _ _ _ _ Good design Low price_ _ _ _ _ High price Low maintenance cost _ _ _ _ _ High maintenance cost Low mileage _ _ _ _ _ High mileage QUES:) How did you buy you motorcycle? Industry Internship Report 2011 Page 116 .

4 by your second choice and so on) REFER TO THE MOTORCYCLES OF THE ECONOMY Industry Internship Report 2011 Page 117 . 2600 and above QUES:) Are TVS star city and TVS Sports TV and Print commercials appealing? a) Strongly disagree b) Disagree c) Neutral d) Agree e) Strongly agree QUES) If you strongly disagree. 2100-2500 Rs. what makes you feel that the commercials are not appealing? ( ) QUES:) Rate out of 1 to 5 on technical specifications (place 5 by your best choice. 1600-2000 Rs.a) b) c) d) Cash payment Loan from the bank Gift from family or friends Others ( ) Please specify QUES: Please justify the above answer? ( ) QUES :) If you got your motorcycle financed ( loan from the bank ) how much did you pay each month? a) b) c) d) Rs. 1000-1500 Rs.

Mahindra stallion in specific ). Bajaj discover . Bajaj discover . PARAMETERS HERO HONDA Engine Power Ignition Brakes Ground Clearance Fuel Capacity Wheel Base Seat Height Battery Weight BAJAJ TVS HONDA SUZUKI MAHINDRA YAMAHA QUES:) Rate out of 1 to 5 on style (place 5 by your best choice. Honda CB twister. PARAMETERS HERO HONDA Front fairings BAJAJ TVS HONDA SUZUKI MAHINDRA YAMAHA Industry Internship Report 2011 Page 118 . 4 by your second choice and so on) REFER TO THE MOTORCYCLES OF THE ECONOMY SEGMENT MENTIONED ABOVE (TVS star city . Suzuki sling shot. Honda CB twister.SEGMENT MENTIONED ABOVE ( TVS star city . Mahindra stallion in specific ). Suzuki sling shot. Hero Honda splendor and passion. Hero Honda splendor and passion.

Honda CB twister.Handle bars Fuel tank Mud guard Side panel Foot pegs Seating Exposed engine Side mirrors Indicators Head lamp Horn Number placement Finishing Alloy wheels Leg guard Plate view QUES:) Rate out of 1 to 5 on Accessories (place 5 by your best choice. Suzuki sling shot.4 by your second choice and so on) REFER TO THE MOTORCYCLES OF THE ECONOMY SEGMENT MENTIONED ABOVE ( TVS star city . Bajaj discover . Mahindra stallion in specific ) PARAMETERS HERO BAJAJ TVS HONDA SUZUKI MAHINDRA YAMAHA Industry Internship Report 2011 Page 119 . Hero Honda splendor and passion.

HONDA Mobile charger Bottle Holder Helmet Hanger Trunk Windscreen Tool Kit Luggage Rack QUES:) Would your next motorcycle be a TVS star city or TVS Sports? 1 Yes 2 No 3 Maybe ANNEXURE II Industry Internship Report 2011 Page 120 .

Which particular motorcycle do you aim to buy? Why? 3. Do you think resale value is also a parameter behind the purchasing decision? Industry Internship Report 2011 Page 121 . If you¶re planning to buy a new motorcycle. Would you prefer to buy a motorcycle of your favourite colour? Even if you have to spend more? 7.NAME: __________________________ AGE: ____________________________ OCCUPATION: ____________________ 1. What motivates you when you think of purchasing a motorcycle? 5. how much do you intend to spend? 6. What according to you is the most important attribute while purchasing a particular motorcycle? 4. Would you like to go for a loan while purchasing your new motorcycle? 8. Do you own a motorcycle? If no do you intend to buy one? 2.

list the first 3? 11.9. How many economy segment motorcycles are you aware of list few? 14. Do you think TVS commercials are appealing? If no what is the reason for it? Give separate views for different modes of media? CONSUMER PERCEPTION ANALYSIS ON ECONOMY SEGMENT MOTORCYCLES 13. Mahindra. A-List the newspapers according to your preference and convenience? B. Taking technical specifications like Engine. brakes. Suzuki. Mention by giving a reason to it? Industry Internship Report 2011 Page 122 . TVS.List the TV channels which you love watching the most? C-Which all social networking sites are you associated with. Bajaj. fuel capacity. Which is your favourite motorcycle commercial which you remember? And what is the reason for its recall? 12. Yamaha. Would you like to go for an expensive motorcycle with amazing looks and style and low on mileage or would you like to buy a decently stylish and modern motorcycle with a good mileage at an economical price? MEDIA 10. What is the impact of media while purchasing a motorcycle do you think it¶s important. battery and weight where you would rate the following Hero Honda. seat height.

Do you wish to buy one in future? If yes why and if no what is the reason? 19. What is you perception about TVS motorcycles. alloy wheels etc)? 17. indicators and head lamp) into consideration which brand do you think is the best? 16. Taking style and looks(Handle bars. What according to you a motorcycle of economy segment should ideally have? ANNEXURE III Industry Internship Report 2011 Page 123 . side panel . mud.15.guard. What are the new features that you are aware of in the economy segment motorcycles (example self start. seats. Fuel tank. Which motorcycle do you like the most and you want to buy in the economy segment bikes? What is the reason for it? 18.

001 -50. (a) Motor bike ) (d) Can¶t say ( ) (b) Scooter (e) ( ) (c) Electric bike ( ) ( ( ) I don¶t want to buy one Q4.001 -80.Do you intend to buy one in future? III.000 [ ] (b) 30.Do you own a motorcycle? iii) iv) YES NO [ ] [ ] Q2.001-60.If motorcycle.000 [ ] (d) 50.000 [ ] Q5. VI. IV. YES NO [ ] [ ] Q3.Which two-wheeler would you purchase in future? V.How do you intend to purchase your motorcycle in future? e) f) g) h) Cash payment Loan from the bank Gift from family or friends Others ( ) Please specify Industry Internship Report 2011 Page 124 . then how much are you willing to spend on a motorcycle in future? (a) Less than 30.000 [ ] (c) 40.000 [ ] (e) 60.000 [ ] (f) More than 80.Name Date of Birth Address Telephone/Mobile Occupation Marital Status - : ______________________ : ______________________ : ______________________ : ______________________ : ______________________ Married ( ) Bachelor ( ) Tick mark the right option Q1.001-40.

ATTRIBUTES Price Mileage Style& looks Safety& control Resale Value Color Technology Speed & Performance Durability Maintenance cost RANK Q9.Q6.How do you learn about a particular motorcycle before buying it? (a) (b) (c) (d) (e) (f) (g) Discussing with friends & family Watching TV and Reading newspaper commercials Doing an online Survey Discussing with the prevalent users Visiting different dealers and personally gathering information By test drive Others( Please specify) Q8 ± Rank the following attributes of the bike as per your preference? Mark 1 against the most important attribute and 10 against the least important attribute.You have collected information about the particular brand from which source? i) Newspaper &Magazines ( )` Page 125 Industry Internship Report 2011 .Which was the last brand of motorcycle used by you? (a) Hero Honda (c) TVS (e) Suzuki (g) Mahindra ( ( ( ( ) ) ) ) (b) Bajaj (d) Honda (f) Royal Enfield (h) Yamaha ( ( ( ( ) ) ) ) (i) Others (Please specify) _______________ Q7.

Only 1 2 showrooms 3 showrooms More than 3 Twice the same showroom Others please specify Q11. or Radio Internet Family.How important is LOOKS & STYLE to you when you are planning to purchase a new economy segment motorcycle? Please rank out of 1 to 5? Industry Internship Report 2011 Page 126 . Friends Bill boards and pamphlets Others ( Please Specify) ( ( ( ( ( ) ) ) ) ) Q10.V.How important is MILEAGE to you when you are planning to purchase a new economy segment motorcycle? Please rank out of 1 to 5? Strongly Disagree 1 Disagree 2 Neutral 3 4 Agree Strongly Agree 5 Q13.How important is PRICE to you when you are planning to purchase a new economy segment motorcycle? Please rank out of 1 to 5? Strongly Disagree 1 Disagree 2 Neutral 3 4 Agree Strongly Agree 5 Q12. VI. V. II.ii) iii) iv) v) vi) T. III. IV.How many showrooms do you visit before purchasing the motorcycle? I.

Rank the following motorcycles in order of your preference? HONDA CB SHINE HERO HONDA SPLENDOR 100 TVS STAR CITY 110 HERO HONDA SPLENDOR NXG HERO HONDA PASSION PRO TVS SPORTS 100 BAJAJ DISCOVER 100 HERO HONDA PASSION PLUS TVS JIVE 110 HERO HONDA CD DAWN BAJAJ PLATINA HONDA CB TWISTER 110 SUZUKI SLING SHOT 125 BAJAJ DISCOVER 125 HERO HONDA CD DELUXE YAMAHA YBR 110 MAHINDRA STALLIO 110 YAMAHA SS 125 Industry Internship Report 2011 Page 127 .How important is LOW MAINTENANCE to you when you are planning to purchase a new economy segment motorcycle? Please rank out of 1 to 5? Strongly Disagree 1 Disagree 2 Neutral 3 4 Agree 5 Strongly Agree Q15.Strongly Disagree 1 Disagree 2 Neutral 3 4 Agree Strongly Agree 5 Q14.How important is RESALE VALUE to you when you are planning to purchase a new economy segment motorcycle? Please rank out of 1 to 5? Strongly Disagree 1 Disagree 2 Neutral 3 4 Agree 5 Strongly Agree Q16.

Q17.´ Industry Internship Report 2011 Page 128 . YOUR VALUABLE OPINION AND SUPPORT IS OUR INSPIRATION.Give a reason for your ranking in the above answer? __________________________________________________________________________ Dated_______________ Signature ³WE THANK YOU FOR THE TIME THAT YOU HAVE INVESTED IN OUR QUESTIONNAIRE.