PROJECT REPORT

ON

“A COMPARATIVE STUDY OF MARKETING MIX STRATEGY

TOWARD PERFORMANCE OF HERO HONDA AND BAJAJ (TWO
WHEELER INDUSTRIES)

Submitted in partial fulfillment of the requirement of degree in

Bachelor of Business Administration
MAHARSHI DAYANAND UNIVERSITY

Session 2019 - 2022

SUBMITTED TO : SUBMITTED BY:

CONTROLLER OF EXAMINATION ASHOK

MDU. UNIVERSITY ROHTAK MBA 4TH SEMESTER

D.A.V. INSTITUTE OF

MANAGEMENT NH-3 NIT,

FARIDABAD

1
 ACKNOWLEDGEMENT

It was delightful learning experience to be associated with TWO WHEELER INDUSTRIES.

The eight weeks spent at MOTOR BIKES, one of the integrated production units of HERO
HONDA , BAJAJ , taught me many things which will be with me throughout my life.

It is with greatest pleasure and pride that I present this report before you. At this moment of
triumph it would be unfair to neglect all those who helped me in the successful completion of
this project.

First of all, I would like to thank the Dean of DAV INSTITUTE OF MANAGEMENT OF
MBA DEPARTMENT and my entire faculties for the help and guidance rendered for the
completion of the project.

It is beyond words to express our immense gratitude to our project guide Mrs. DHRITY
AHUJA (MARKETING). I am also very much thankful to senior managers of all the sections of
Marketing department for their co-operation while I visited their respective divisions.

Last but not the least I thank my family members for their encouragement and support.

2
 PREFACE

Field experience is an essential and integral part of management studies. Every student of MBA
has to undergo this phase of practical study before he can consider himself fully equipped as a
potential manager. To fulfill this requirement, every student of BBA has to undergo some
practical work. I underwent my practical work Mrs. DHRITY AHUJA pertaining to my interest
and area of specialization; I was assigned a project on “consumer satisfaction” At first the things
appeared and sophisticated, but with time I found that management had given me sound
fundamentals, but much depends upon their application and implementation by an individual. It
is in fact a matter of practical application of theoretical knowledge and in the congenial and
appropriate direction.

ASHOK

3
 TABLE OF CONTENTS

S.NO PARTICULARS PAGE NO

1. CHAPTER I

Introduction of the project

2. CHAPTER II

Review of Literature

3. CHAPTER III

Study of Industry

4. CHAPTER IV

Study of Company

5. CHAPTER V

Research Methodology
• Object of the study
• Research Design
° Methods ofData collection
° Define Population
° Sampling unit
° Sampling Method
° Size of Sample
• Limitation of the study
6. CHAPTER VI

Data analysis and interperation

7. CHAPTER VII

Conclusion and suggestion

8. • Bibliography

• Questionaire

4
 CHAPTER– 1

INTRODUCTION
OF THE
PROJECT

5
MARKETING MIX
“Marketing Mix is the set of controllable variables that the firm can use to influence the buyer’s
response”. The controllable variables in this context refer to the 4 ‘P’s [product, price, place
(distribution) and promotion]. Each firm strives to build up such a composition of 4‘P’s, which
can create highest level of consumer satisfaction and at the same time meet its organisational
objectives. Thus, this mix is assembled keeping in mind the needs of target customers, and it
varies from one organisation to another depending upon its available resources and marketing
objectives. Let us now have a brief idea about the 7-P’s of marketing mix.

Product:

Product refers to the goods and services offered by the organisation. A pair of shoes, cars, a
lipstick, all are products. All these are purchased because they satisfy one or more of our needs.
We are paying not for the tangible product but for the benefit it will provide. So, in simple
words, product can be described as a bundle of benefits which a marketeer offers to the
consumer for a price. While buying a pair of shoes, we are actually buying comfort for our feet,
while buying a lipstick we are actually paying for beauty because lipstick is likely to make us
look good. Product can also take the form of a service like an air travel, telecommunication, etc.
Thus, the term product refers to goods and services offered by the organization for sale.

Price:

Price is the amount charged for a product or service. It is the second most important element in
the marketing mix. Fixing the price of the product is a tricky job. Many factors like demand for a
product, cost involved, consumer’s ability to pay, prices charged by competitors for similar
products, government restrictions etc. have to be kept in mind while fixing the price. In fact,
pricing is a very crucial decision area as it has its effect on demand for the product and also on
the profitability of the firm

Place:

6
 Goods are produced to be sold to the consumers. They must be made available to the consumers
at a place where they can conveniently make purchase. Woollens are manufactured on a large
scale in Ludhiana and you purchase them at a store from the nearby market in your town. So, it is
necessary that the product is available at shops in your town. This involves a chain of
individuals and institutions like distributors, wholesalers and retailers who constitute firm’s
distribution network (also called a channel of distribution). The organisation has to decide
whether to sell directly to the retailer or through the distributors/wholesaler etc. It can even plan
to sell it directly to consumers. The choice is guided by a host of factors about which you will
learn later in this chapter

Promotion:

If the product is manufactured keeping the consumer needs in mind, is rightly priced and made
available at outlets convenient to them but the consumer is not made aware about its price,
features, availability etc, its marketing effort may not be successful. Therefore promotion is an
important ingredient of marketing mix as it refers to a process of informing, persuading and
influencing a consumer to make choice of the product to be bought. Promotion is done through
means of personal selling, advertising, publicity and sales promotion. It is done mainly with a
view to provide information to prospective consumers about the availability, characteristics and
uses of a product. It arouses potential consumer’s interest in the product, compare it with
competitors’ product and make his choice. The proliferation of print and electronic media has
immensely helped the process of promotion.

People :

All companies are reliant on the people who run them from front line Sales staff to the
Managing Director. Having the right people is essential because they are as much a part of your
business offering as the products/services you are offering.

Processes:

The delivery of your service is usually done with the customer present so how the service is
delivered is once again part of what the consumer is paying for.

Physical Evidence:

7
Almost all services include some physical elements even if the bulk of what the consumer is
paying for is intangible. For example a hair salon would provide their client with a completed
hairdo and an insurance company would give their customers some form of printed material.
Even if the material is not physically printed (in the case of PDF’s) they are still receiving a
“physical product” by this definition.

Factors Affecting Marketing Mix

Literature review indicates that the effectiveness of marketing strategies initiated by M&S along
with other supermarkets and businesses are subject to the external environment. Pride et al
(2009) specify the forces of external environment to be the following:

a) Economic forces . The impact of economic conditions to the ability and willingness of
customers to buy. The impact of economic forces to M&S and other supermarkets is huge due to
the fact that in times of economic hardships retail industry is among the first to experience the
negative consequences (Ball and Ball, 2005).

b) Sociocultural forces . These forces to effect society and culture in a way that attitudes,
beliefs, norms, customs, and lifestyles of people are going to change. The importance of
sociocultural forces to M&S is great because studying these forces allows M&S to be proactive
in terms of meeting changing customer expectations.

c) Political forces . A type of influence that is generated through the actions of elected and
appointed officials. M&S and all of its marketing efforts are also subject to the political forces
within the UK as well as the political forces of any other counties the company operates in.

8
d) Competitive forces . The activities of competitors who are formulating and undertaking their
own marketing plans. This includes the activities of M&S major competitors such as Waitrose,
TESCO, Sainsbury’s etc. their manipulation with product, place, promotion and price and how
this is going to affect M&S performance.

e) Legal and regulatory forces . Laws and regulations introduced in order to protect consumers
and competition, as well as government regulations affecting marketing. For instance,
government regulations such as prohibition on the sale of alcoholic beverages after eleven hours
of the evening is going to affect M&S marketing mix strategies.

f) Technological forces . Technological changes affecting many aspects of business. Business

processes involved in M&S marketing mix components might be improved through the
application of the latest technological achievement.

9
 CHAPTER – 2

REVIEW OF LITERATURE

MARKETING STRATEGY

10
Marketing strategy is the complete and unbeatable plan designed specifically for attaining the
marketing objectives of the firm.

The marketing objectives indicate what the firm wants to achieve; the marketing strategy
provides the design for achieving them.

It is the marketing strategy that decides the success at the business unit level which in turn
decides the total corporation’s success. The link between marketing strategy & overall success

is indeed direct & vital & in this linkage lies the significance of marketing strategy.

Honda Ltd. has an aggressive marketing strategy which is very well understood when one goes
through the in-depth study of 7-P’s of marketing and price strategies with respect to its products
as explained in the previous section. One comes to the conclusion that Honda has a well defined
roadmap to success i.e. to reach its ultimate objective of realizing Customer Satisfaction through
value for price products.

FORMULATING MAKETING STRATEGY

Marketing strategy is not a nebulous idea. It is a well oriented game plan & there are definite

ways of formulating it. Basically formulation of marketing strategy consists of two main steps-

 Selecting the target market

 Assembling the marketing mix

Selecting the target market

Honda has successfully selected the car market which is going to cater to these are Mid Size Cars

 Segment-A Cars (catering to Middle Income group)

 Segment-B Cars (catering to Upper-Middle Income group)

 Segment-C Cars (catering to High Income group)

The details of these are provided in previous sections.

Assembling the marketing mix

11
Assembling the marketing mix means assembling the 4-P’s of marketing in the right
combination as explained in the previous section. Involved in this process are the choice of the
appropriate marketing activities and the allocation of the appropriate marketing effort to each
one of them. The firm has to find out how it can generate the best sales and make profit. It plans
different marketing mixes with varying levels of expenditure in terms of the possible sales and
profit. It then chooses the combination that is the best according to its judgment.

It is not though that the firm can take rest, once it has assembled and put through its marketing
mix. The marketing mix is a dynamic entity. The mix has to be modified and manipulated
depending on requirements.

Marketing Strategies Fall Under Two Generic Categories:

 Price Based Marketing Strategy

 Strategy

Price Based Marketing Strategy

Honda Basically plays the pricing game to cut down the competition in market. This the real
trump card which has worked for past many years in India. But now this strategy has failed for
automobile sector. Now it can work only a new trump card which is technology and Honda has
started using this along with price to win even in international markets.

Honda is continuously winning the price game for the past many years and to this habit to win
Honda is planning to launch many cars in near future as the price difference of just

Rs. 25,000 for each sub category. This product differentiation will provide Honda a niche in the
market to cater to different market segments of customers effectively. This product launch will
be so fast that within an year we will be familiar with at least five new models of Honda.

But another card to win this competition is technology. Honda is trying very hard to get this card
along with its global technology partner Suzuki. Recently launched Baleno is a technological
milestone for Honda. Other forthcoming cars will be technologically way high. In light of
growing sluggishness in the automobile market as a result of uncertainty over the sales tax issue,
Honda as the leader of automobile market announces strong initiative to kick start the market.

Differentiation based Marketing Strategy

12
Market Strategy based on Differentiation works on the principle that any aspect of the offer &
any activity of the firm can be made a distinctive compared with the competing offer.

Honda time and again have been successful in using this strategy in gaining a competitive edge
over its own previously launched models (discussed in the Price section of the Marketing Mix) &
in the market over its competitors.

The host of products that Honda encases within itself is unmatched till date by any Indian or
Foreign car manufacturer. All this have been discussed in the Product section of the Marketing..

STRATEGIES

It has described a category scheme consisting of 3 general types of strategies that are commonly
used by businesses to achieve and maintain competitive advantage. These three generic strategies
are defined along two dimensions : strategic scope & strategic strength. Strategic scope is a
demand-side dimension and looks at the size & composition of the market you intend to target.
Strategic strength is a supply-side dimension & looks at the strength or core competency of the
firm. In particular he identified two competencies that he felt were most important: product
differentiation and product cost (efficiency).

He originally ranked each of the three dimensions (level of differentiation, relative product cost,
and scope of target market) as either low, medium, or high, and juxtaposed them in a three
dimensional matrix. That is, the category scheme was displayed as a 3 by 3 by 3 cubes. But most
of the 27 combinations were not viable.

13
In his 1980 classic Competitive Strategy: Techniques for Analyzing Industries & Competitors
Porter simplifies the scheme by reducing it down to the three best strategies. They are cost
leadership, differentiation, and market segmentation (or focus). Market segmentation is narrow
in scope while both cost leadership and differentiation are relatively broad in market scope.

Empirical research on the profit impact of marketing strategy indicated that firms with a high
market share were often quite profitable, but so were many firms with low market share. The
least profitable firms were those with moderate market share. This was sometimes referred to as
the hole in the middle problem. Porter’s explanation of this is that firms with high market share
were successful because they pursued a cost leadership strategy & firms with low market share
were successful because they used market segmentation to focus on a small & profitable market.
Firm in the middle were less profitable because they did not have a viable generic strategy.

Porter suggested combining multiple strategies is successful only in one case. Combining a
market segmentation strategy with a product differentiation strategy was seen as an effective way
of matching a firm’s product strategy (supply side) to the characteristics of your target market
segments (demand side). But combinations like cost leadership with product differentiation were
seen as hard (but not impossible) to implement due to the potential for conflict between cost
minimization and the additional cost of value-added differentiation.

Since that time, empirical research has indicated companies pursuing both differentiation and
low- cost strategies may be more successful than companies pursuing only one strategy.

Some commentators have made a distinction between cost leadership, that is, low cost strategies,
and best cost strategies. They claim that a low cost strategy is rarely able to provide a sustainable
competitive advantage. In most cases firms end up in price wars. Instead, they claim a best cost
strategy is preferred. This involves providing the best value for a relatively low price.

PROMOTION

If the product is manufactured keeping the consumer needs in mind, is rightly priced and made
available at outlets convenient to them but the consumer is not made aware about its price,
features, availability etc, its marketing effort may not be successful. Therefore promotion is an
important ingredient of marketing mix as it refers to a process of informing, persuading and
influencing a consumer to make choice of the product to be bought. Promotion is done through
means of personal selling, advertising, publicity and sales promotion. It is done mainly with a
view to provide information to prospective consumers about the availability, characteristics and
uses of a product. It arouses potential consumer’s interest in the product, compare it with
competitors’ product and make his choice. The proliferation of print and electronic media has
immensely helped the process of promotion.

14
15
 CHAPTER -3

STUDY OF INDUSTRY

16
INDUSTRY OVERVIEW

(TWO-WHEELERS AND THREE-WHEELERS)

Two-Wheelers

India is the second largest manufacturer and producer of two-wheelers in the world. It stands
next only to Japan and China in terms of the number of two-wheelers produced and domestic
sales respectively. This distinction was achieved due to variety of reasons like restrictive policy
followed by the Government of India towards the passenger car industry, rising demand for
personal transport, inefficiency in the public transportation system etc.

The Indian two-wheeler industry made a small beginning in the early 50s when Automobile
Products of India (API) started manufacturing scooters in the country. Until 1958, API and
Enfield were the sole producers. In 1948, Bajaj Auto began trading in imported Vespa scooters
and three- wheelers. Finally, in 1960, it set up a shop to manufacture them in technical
collaboration with Piaggio of Italy. Although various government and private enterprises entered
the fray for scooters, the only new player that has lasted till today is LML. Under the regulated
regime, foreign companies were not allowed to operate in India. It was a complete sellers market
with the waiting period for getting a scooter from Bajaj Auto being as high as 12 years.

The motorcycles segment was no different, with only three manufacturers viz Enfield, Ideal Jawa
and Escorts. While Enfield bullet was a four-stroke bike, Jawa and the Rajdoot were two-stroke
bikes. The motorcycle segment was initially dominated by Enfield 350cc bikes and Escorts
175cc bike. The two-wheeler market was opened to foreign competition in the mid-80s.
Moreover, the then market leaders -Escorts and Enfield - were caught unaware by the onslaught
of the 100cc bikes of the four Indo-Japanese joint ventures. With the availability of fuel-efficient
low power bikes, demand swelled, resulting in Hero Honda - then the only producer of four
stroke bikes (100cc category), gaining a top slot. The first Japanese motorcycles were introduced
in the early eighties. TVS Suzuki and Hero Honda brought in the first two-stroke and four-stroke
engine motorcycles respectively. These two players initially started with assembly of CKD kits,
and later on progressed to indigenous manufacturing. In the 90s the major growth for motorcycle
segment was brought in by Japanese motorcycles, which grew at a rate of nearly 25% CAGR in
the last five years. The industry had a smooth ride in the 50s, 60s and 70s when the Government
prohibited new entries and strictly controlled capacity expansion. The industry saw a sudden
growth in the 80s. The industry witnessed a steady growth of 14% leading to a peak volume of
1.9mn vehicles in 1990. The entry of Kinetic Honda in mid-eighties with a variometric scooter
helped in providing ease of use to the scooter owners. This helped in inducing youngsters and
working women, towards buying scooters, who were earlier inclined towards moped purchases.
In the 90s, this trend was reversed with the introduction of scooterettes. In line with this, the
scooter segment has consistently lost its part of the market share in the two-wheeler market.

17
In 1990, the entire automobile industry saw a drastic fall in demand. This resulted in a decline of
15% in 1991 and 8% in 1992, resulting in a production loss of 0.4mn vehicles. Barring Hero
Honda, all the major producers suffered from recession in FY93 and FY94. Hero Honda showed
a marginal decline in 1992. The reasons for recession in the sector were the incessant rise in fuel
prices, high input costs and reduced purchasing power due to significant rise in general price
level and credit crunch in consumer financing. Factors like increased production in 1992, due to
new entrants coupled with the recession in the industry resulted in companies either reporting
losses or a fall in profits

Three-Wheelers

India is one of the very few countries manufacturing three-wheelers in the world. It is the world's
largest manufacturer and seller of three-wheelers. Bajaj Auto commands a monopoly in the
domestic market with a market share of above 80%, the rest is shared by Bajaj Tempo, Greaves
Ltd and Scooters India.

The Super Cub made TWO WHEELER INDUSTRY what it is today. In 2008, 50 years and 60
million units later, the Super Cub still continues to evolve worldwide. The Super Cub had a
convenient automatic centrifugal clutch and a four stroke economical and clean engine even back
in 1957.

When R&D was done, the motorcycle was so revolutionary at that time that Honda targeted sales
of 30,000 units a month at a time where the total sales for motorcycles a month in Japan was
40,000 units. Today it is still very much relevant in the current economic situation with, close to
5 million units produced annually.

Honda has produced a new global advertisement for the Super Cub and if whatever they are
saying in the ad is true, they are determined to make a product that will open roads to a much
larger success compared to the Super Cub. It could
be, as the commercial video shows two people riding what seems to be a bike… but the
background is silent, as if the bike runs on a quiet motor.

MARKETING STRATEGIES OF TWO WHEELER INDUSTRY

PRODUCT RELATED STRATEGIES OF MOTOR BIKES .

18
Product Range and New Models:

The Company's product range includes "Splendor" which is the largest selling motorcycle brand
in the world with over 6.9 lacs vehicles sold in 2000-01. A cumulative over 4 million customers
are the real foundation of the company's strength. The total shall soon cross the 5 million mark.
Its volumes have been growing at a strong pace of 40% p.a. over the last five years.

The Company launched a new 100 cc model "Passion" in January 2001. The motorcycle is
focused on style and contemporary design, compared to the Company's earlier motorcycles that
were focused on utility and/or style. "Passion" has received an excellent response from the
market and has established itself well, with sales reaching a level of 19000 units in March 2001,
within just three months of its launch.

In April 2001, another 100 cc model "Joy" was launched successfully. Its focus is on better
styling and improved riding comfort. Hero Honda launches cheapest bike to ‘stall’ Bajaj
Auto19.03 IST 16th Apr 2003 By India Express Bureau

In an attempt to beat competition from its rival Bajaj Auto, Hero Honda Motors launched its
cheapest 100cc motorbike yet on Wednesday. The motorbike maker, in which India's Munjal
family and Japan's Honda Motor Co each hold 26 per cent stakes, said the new model, CD-
Dawn, would carry a showroom price of Rs 31,899 in Delhi. The company expects to sell 7,000-
8,000 units of the bike in April and hopes sales will touch 20, 000 a month in six months. Hero
Honda, which accounts for 45 per cent share of the domestic market, has faced slowing demand
and cutthroat competition after two consecutive years of 30 per cent-plus growth in the world's
biggest motorcycle market. But the firm has forecast at least 10 per cent growth in sales volume
in the current financial year to March 2004. Its sales in the past year to March grew 17.7 per cent
to 1.68 million bikes.

PLACE STRATEGY OF MOTOR BIKES.

Today Hero Honda has managed to achieve indigenization of over 95 percent, a Honda record
worldwide. Hero Honda is at present the largest-selling Indian motorcycle and the most fuel-
efficient in its category - the outcome of Hero Group's foresight and another classic example of
how the Group strives to provide the customer with excellence and satisfaction.

Hero Honda became the first company in the country to introduce four-stroke motorcycles and
set the standards for fuel efficiency, pollution control and quality. It has a production capacity of
1.2 million motorcycles, which shall be enhanced to 1.5 million motorcycles in the coming years.
It has an excellent distribution and service network spread throughout the country. Hero Honda
is the market leader in motorcycles, with sales of over a million motorcycles and a strong market
share of 47% during 2000-01.

This is proved by the company's sales over the years:

19
As economies open up, are Asian enterprises ready for the global battle for export markets and
investment?Hero Honda sales decline 1.2 pc Our Bureau NEW DELHI, May 1 HERO Honda,
the country's largest motorcycle manufacturer, saw its sales decline by 1.2 per cent to 1,34,318
units in April 2003 from 1,35,961 units in the same month last year. According to industry
sources, sales of the company could have been affected by sluggish rural demand combined with
the 10-day trucker's strike affecting production as well as distribution of products in April. The
company saw a growth of 16.06 per cent in sales volume during April compared to March.
Meanwhile, Hero Honda is planning to launch new 200 plus cc motorcycle during May, a
company release said. The company today announced that it has achieved a milestone with its
Daruhera plant, in Haryana, becoming the first Indian two-wheeler plant to produce 5 million
units. The 5 millionth motorcycle was a Splendor. The first motorcycle, CD100, had rolled off
the assembly line in April 1985. Customer satisfaction, a high quality product, the strength of
Honda technology and the Hero group's dynamism have helped HHML scale new frontiers and
exceed limits. In the words of Mr. Brijmohan Lall Munjal, the Chairman and Managing Director,
"We will continue to make every effort required for the development of the motorcycle industry,
through new product development, technological innovation, investment in equipment and
facilities and through and through efficient management."

PRICING STRATEGY OF MOTOR BIKES .

A rich background of manufacturing high value, reasonably priced products; an uncompromising

pursuit of the goals to attain quality along with customer satisfaction; the resulting affinity in
working cultures - brought the world's largest manufacturer of motorcycles in collaboration with
the world's largest bicycle manufacturer, bringing forth a market leader. Honda Motor Company
of Japan and the Hero Group entered a joint venture to setup Hero Honda Motors Limited in
1984.The Karizima features a 223cc, 17PS power pack that accelerates you from 0-60 in 3.8
seconds. Distinctive styling and Mag alloy wheels make this bike stand out before it races away
from the pack. Digital ignition and a constant vacuum carburetor facilitate better control of
ignition timingThat’s why Priced at Rs. 76,206/- on road Mumbai the Karizma is available in
seven attractive shades. If we take the example of Karizma (A bike of Hero Honda).

20
PROMOTION STRATEGY OF MOTOR BIKES .

A thorough understanding of the fast-changing consumer behavior, new market segments and
product opportunities along with sensitivity to changing customer needs, form the core of Hero's
marketing strategy and philosophy. At Hero, we essentially have a completely customer-driven
approach. A nation-wide dealer network comprising of over 3,500 bicycle dealers, 350 dealers
for mopeds and 225 franchise holders for motorcycles, ensures convenient access to the Group's
products across the country. With a deep sense of belonging to the Hero fraternity, the Group's
dealer network has catalyzed growth and acted as a strong bridge between the customers and the
Group. Conventionally, very few Indian bicycle manufacturers were interested in exports.
However, the Hero Group's foray into the overseas markets pioneered Indian exports in the
bicycle segment as early as 1963. It was a move prompted primarily by the need to be attuned to
the global marketplace. While initial exports were restricted to Africa and the Middle East, today
more than 50 percent of the Group's bicycle exports meet the demands of sophisticated markets
in Europe and America. This is primarily because of appropriate product development and
excellent quality that Hero offers. The Group has undertaken a steady up gradation of
technologies and there has been diversifications and setting up of newer establishments to meet
stringent international standards. At the core of it all is a customer-centric scheme of policies and
production ... and the bottom line is to "Add Value while Engineering Satisfaction.

Advertisement strategy

Hero Honda has snagged the brat pack — Virender Sehwag, Mohammad Kaif, Yuvraj Singh
and Zaheer Khan. The two-wheeler maker, an official sponsor of the World Cup tournament to
be played in South Africa in February, has brought the young and exciting cricketers of the
Indian team on board as brand ambassadors. The Fab Four — along with team captain Sourav
Ganguly
— will feature in the ads for its latest motorcycle model: the Ambition. Hero Honda is extremely
cagey about saying how much they had to fork out to bring the top cricketers to feature in the
ads. Atul Sobti, senior vice-president, marketing and sales declined to say how much they
planned to invest in the ad campaign. "It will give a lot of leverage to the new product Ambition
by giving the image of a powerful and efficient motorcycle. The powerfu-e-l bike will be well
represented by the leadership qualities, power and the capacity to face any challenges," he
added.The current ad for Ambition is tame; it shows an important file reaching a destination in
time because of the power of the motorcycle. "It does not properly appeal to the customers about
the power and efficiency of the product. 'Team Ambition' will be much better suited to represent
the product," sources said.Hero Honda is hoping to crank up sales of Ambition because of the
endorsements by the top cricketers during the World Cup when cricket fever will be at its
highest. One major advantage is that none of its rivals will be able to use cricketers to endorse
their products before and after the World Cup because of the ambush-marketing clause that the
International Cricket Council (ICC) has worked into the players contracts.The issue had sparked
a row when it was raised just before the ICC champions trophy in Sri Lanka in September but
was resolved after a stand-off between ICC, the cricket boards of several nations and the players.
21
Hero Honda plans to

22
increase its market-share to 50 per cent this fiscal and is targeting sales of 10,000 Ambitions a
month. Its share dipped from 48 per cent to 45 per cent. The 133 cc Ambition generates 11 bhp
of thrust, which has been kept low in order to improve fuel efficiency. It has been placed in
between the 125cc and 150cc motorcycle categories to draw the maximum clientele. The bike
accelerates from 0-60 kmph in only six seconds.While launching the new campaign with the
cricketers, Hero Honda is also drawing up plans for a couple of ads with the other brand
ambassador, Hrithik Roshan. Hero Honda's association with cricket goes back to 1993, when it
sponsored the Hero Cup. It was the official sponsor of the recent ICC Champions Trophy in Sri
Lanka and will have the same status for the ICC World Cup in 2003.

PURPOSE OF THE STUDY

Whenever we think of the origin of Indian Two-wheelers market, we think of old and stodgy
Vespa based models of scooters and Japanese models of motorcycles, but now in the era of
globalization the situation has completely changed as the many industries are sizzling hot with
continuous poaching of scooters by motorcycles as well as regular launching of new models of
motor bikes. Earlier the shelf life of models was in tune of 10-15 years but now it has come
down drastically due to intense competition in motor bike industry. Hero Honda is trying to save
its dominance in motorbike market from rigorous attacks of Bajaj Auto and TVS while Bajaj
Auto is changing its portfolio by heavy inclusion of motorcycles in it. In this battle LML Group,
Kinetic Group, Yamaha Motors, Honda Motors and Royal Enfield are also trying to provide
something new to the customers.

BACKGROUND

When we think of Indian Two-wheelers market, we think of stodgy Vespa based models of
scooters and Japanese models of motorcycles, but now the situation is completely changed as the
industry is sizzling hot with continuous poaching of scooters by motorcycles as well as regular
launches of new models by all players. Earlier the shelf life of models was in tune of 10-15 years
but now it has come down drastically due to intense competition. Hero Honda is trying to save its
dominance in motorcycles market from rigorous attacks of Bajaj Auto and TVS while Bajaj Auto
is changing its portfolio by heavy inclusion of motorcycles in it. In this battle LML Group,
Kinetic Group, Yamaha Motors, Honda Motors and Royal Enfield are also trying to have a say.

23
Two-wheeler sales last grew in double digits in fiscal 2012, when the increase was 14%. Since
then, the growth has been between 3% and 8%. MUMBAI: India's two-wheeler industry is set to
record its fastest growth in at least five years in fiscal 2017, boosted by plentiful monsoon rains
that invigorated the key rural market and higher spending expected in cities because of a salary
hike to government staff. Industry players are predicting the market to grow at least in high
single digit in current fiscal year through March 2017. If the monsoon rains continue to be
plentiful, the rate may even break into double digits. With softening fuel prices and easing
interest rates, fundamentals are already in place to drive demand, they said. Two-wheeler sales
last grew in double digits in fiscal 2012, when the increase was 14%. Since then, the growth has
been between 3% and 8%.

"The prospective buyer has been deferring his purchase for way too long. He is expected to come
back thanks to the improved macro-economic sentiment," said YS Guleria, the head of sales and
marketing at Honda Motorcycle & Scooter, the country's second largest two-wheeler maker.
"The festive season this year is going to be among the best we have seen in recent years. We
expect the market to grow by 9-10%." If the monsoon is good, growth may even exceed this
forecast, he added.

The two-wheeler market grew 14% in the April to June period, the first quarter of the fiscal year,
albeit on a low base. Scooter sales have grown at a rapid pace of 27.12% due toincreased supply
from Honda and with other companies getting aggressive in the segment. The motorcycle
segment, which has been a laggard in recent years, expanded 8%. Motorcycle sales in the past
four to five years had increased at less than 4%. Industry experts cite abnormal rainfall, which
hurt the rain- dependent rural economy that drives motorcycle sales, for the weak performance.

24
 CHAPTER – 4

STUDY OF

COMPANY / COMPANIES

25
 COMPANY PROFILE

“Hero”, is the brand name used by the Munjal brothers in the year 1956 with the flagship
company Hero Cycles. The two-wheeler manufacturing business of bicycle components had
originally started in the 1940’s and turned into the world’s largest bicycle manufacturer today.
Hero, is a name synonymous with two-wheelers in India today. The Munjals roll their own steel,
make free wheel bicycle critical components and have diversified into different ventures like
product design. The Hero Group philosophy is: “To provide excellent transportation to the
common man at easily affordable prices and to provide total satisfaction in all its spheres of
activity”. The Hero group vision is to build long lasting relationships with everyone (customers,
workers, dealers and vendors). The Hero Group has a passion for setting higher standards and
“Engineering Satisfaction” is the prime motivation, way of life and work culture of the Group. In
the year 1984, Mr. Brijmohan Lal Munjal, the Chairman and Managing Director of Hero Honda
Motors (HHM), headed an alliance between the Munjal family and Honda Motor Company Ltd.
(HMC). HHM Mission Statement is: “We, at Hero Honda, are continuously striving for synergy
between technology, systems, and human resources to provide products and services that meet
the quality,performance, and price aspirations of our customers. While doing so, we maintain the
highest standards of ethics and societal responsibilities, constantly innovate products and
processes, and develop teams that keep the momentum going to take the company to excellence
in the new millennium”. This alliance became one of the most successful joint ventures in India,
until the year 1999 when HMC had announced a 100% subsidiary, Honda Motorcycle & Scooter
India (HMSI). This announcement caused the HHM stock price to decrease by 30 percent that
same day. Munjal had to come up with some new strategic decisions as, HMSI and other foreign
new entry companies were causing increased intensity of rivalry for HHM.

GROWTHThe business growth of Hero Honda has been phenomenal throughout its early
days. The Munjal family started a modest business of bicycle components. Hero Group expanded
so big that by 2002 they had sold 86 million bicycles producing 16000 bicycles a day. Today
Hero Honda has an assembly line of 9 different models of motorcycles available. It holds the
record for most popular bike in the world by sales for Its Splendor model. Hero Honda Motors
Limited was established in joint venture with Honda Motors of Japan in 1984, to manufacture
motorcycles. It is currently the largest producer of Two Wheelers in the world. It sold 3 million
bikes in the year 2005-2006. Recently it has also entered in scooter manufacturing, with its
model PLEASURE mainly aimed at girls. The Hero Group has done business differently right from
the start and that is what has helped them to achieve break-through in the competitive two-
wheeler market. The Group's low key, but focused, style of management has earned the
company plaudits amidst investors, employees, vendors and dealers, as also worldwide .

26
Just-in-TimeThe Hero Group through the Hero Cycles Division was the first to introduce the
concept of just-in-time inventory. The Group boasts of superb operational efficiencies. Every
assembly line worker operates two machines simultaneously to save time and improve
productivity. The fact that most of the machines are either developed or fabricated in-house,
has resulted in low inventory levels. In Hero Cycles Limited, the just-in-time inventory principle
has been working since the beginning of production in the unit and is functional even till date..
This is the Japanese style of production and in India; Hero is probably the only company to have
mastered the art of the just-in-time inventory principle.

Ancillarisation An integral part of the Group strategy of doing business differently was
providing support to ancillary units. There are over 300 ancillary units today, whose production
is dedicated to Hero's requirements and also a large number of other vendors, which include
some of the better known companies in the automotive segment. Employee Policy: Another
Striking feature within the Hero Group is the commitment and dedication of its workers. There
is no organized labor union and family members of employees find ready employment within
Hero. The philosophy with regard to labor management is "Hero is growing, grow with Hero."
When it comes to workers' benefits, the Hero Group is known for providing facilities, further
ahead of the industry norms. Long before other companies did so, Hero was giving its
employees a uniform allowance, as well as House Rent Allowance (HRA) and Leave Travel
Allowance (LTA). Extra benefits took the form of medical check-ups, not just for workers, but
also for the immediate family members.

Dealer Network The relationship of Hero Group with their dealers is unique in its closeness.
The dealers are considered a part of the Hero family. A nation-wide dealer network comprising
of over 5,000 outlets, and have a formidable distribution system in place. Sales agents from
Hero travels to all the corners of the country, visiting dealers and send back daily postcards with
information on the stock position that day, turnover, fresh purchases, anticipated demand and
also competitor action in the region. The manufacturing units have a separate department to
handle dealer complaints and problems and the first response is always given in 24 hours.

Financial Planning The Hero Group benefits from the Group Chairman's financial acumen and his
grasp on technology, manufacturing and marketing. Group Company, Hero Cycles Limited has one of the
highest labor productivity rates in the world. In Hero Honda Motors Limited, the focus is on financial and
raw material management and a low employee turnover.

Quality Quality at Hero is attained not just by modern plants and equipment and through
latest technology, but by enforcing a strict discipline. At the Group factories, attaining quality
standards

27
is an everyday practice - a strictly pursued discipline. It comes from an amalgamation of the
latest technology with deep-rooted experience derived from nearly four decades of hard labor.
It is an attitude that masters the challenge of growth and change - change in consumers'
perceptions about products and new aspirations arising from a new generation of buyers.
Constant technology up gradation ensures that the Group stays in the global mainstream and
maintains its competitive edge. With each of its foreign collaborations, the Group goes onto
strengthen its quality measures as per the book. The Group also employs the services of
independent experts from around the world to assist in new design and production processes.

Diversification Throughout the years of enormous growth, the Group Chairman, Mr. Lall
has actively looked at diversification. A considerable level of backward integration in its
manufacturing activities has been ample in the Group's growth and led to the establishment of
the Hero Cycles Cold Rolling Division, Munjal and Sunbeam Castings, Munjal Auto
Components and Munjal Showa Limited amongst other component-manufacturing units. Then
there were the expansion into the automotive segment with the setting up of Majestic Auto
Limited, where the first indigenously designed moped, Hero Majestic, went into commercial
production in 1978. Then came Hero Motors which introduced Hero Puch, in collaboration with
global technology leader Steyr Daimler Puch of Austria. Hero Honda Motors was established in
1984 to manufacture 100 cc motorcycles. The Hero Group also took a venture into other
segments like exports, financial services, information technology, which includes customer
response services and software development. Further expansion is expected in the areas of
Insurance and Telecommunication. The Hero Group's phenomenal growth is the result of
constant innovations, a close watch on costs and the dynamic leadership of the Group Chairman,
characterized by a culture of entrepreneurship, of right attitudes and building stronger
relationships with investors, partners, vendors and dealers and customers.

28
Different models of Hero Honda 4-strokes bikes:

Presenting CD deluxe, the stylish, true value 100 cc motorcycle from Hero Honda.
Encompassing the legendary Hero Honda values of fuel efficiency, economy and rock solid
dependability.

29
The world's best-selling motorcycle just got better. The Splendor+, a bike that will stop you right in your
tracks. Both by its looks and performance. Needless to add, owning a Splendor+ means a lot of other
things too. Like getting admiring looks. Or the pride of riding a motorcycle that meets the pollution
control standards of this decade. That's the Splendor+. The new face of trust.

30
31
New two-tone body colours PLUS Body colour rear view mirrors PLUS Aluminum die cast rear
grip PLUS Heat protector on the muffler. All this and much more to make the biker and his bike
stay married for eve.

32
33
 BAJAJ AUTO LIMITED

The Bajaj Group came into existence during the turmoil and the heady euphoria of India's
freedom struggle. Jamnalal Bajaj, founder of the Bajaj Group, was a confidante and disciple of
Mahatma Gandhi, and was deeply involved in the effort for freedom. The integrity, dedication,
resourcefulness and determination to succeed which are characteristic of the Company today, are
often traced back to its birth during those long days of relentless devotion to a common cause.

Kamalnayan, the eldest son of Jamnalal Bajaj, succeeded his father in 1942, at the age of twenty-
seven. Putting the Nation before business, he devoted himself to the latter only after India
achieved independence in 1947. But when he did so, he put his heart and soul into it. Within a
short while, he not only consolidated the Group, but also diversified into various manufacturing
activities, elevating the Group to the status it enjoys till this day.

Rahul Bajaj today heads the Group. He has been the Chief Executive Officer of Bajaj since 1968
and is recognized as one of the most outstanding business leaders in India. As dynamic and
ambitious as his illustrious predecessors, he has been recognised for his achievements at various
national and international forums. Bajaj is currently India's largest two and three-wheeler
manufacturer and one of the biggest in the world. Bajaj has long left behind its annual turnover
of Rs.72 million (1968), to currently register an impressive figure of Rs.42.16 billion (US$ 936
million).

Group/ Management
Mr. Jamanalal Bajaj founded the Bajaj Group in the 30s. The group now has 24 companies,
including 6 listed companies. Besides BAL, the major companies in the group are Mukand Ltd.
(Alloy/ Special Steel, term key projects), Bajaj Electricals Ltd.(Electrical equipments, fans, and
appliances) and Bajaj Hindustan Ltd.(Sugar, industrial alcohol) .

BELIEFS

 Transparency: A commitment that the business is managed along transparent lines.

 Fairness: To all stakeholders in the Company, but especially to minority shareholders.

 Disclosure: Of all relevant financial and non-financial information in an easily understood

manner.

 Supervision: Of the Company’s activities by a professionally competent and independent

board of directors.

34
PRESENCE
 Distribution network covers 50 countries.

 About 150,000 units likely to be exported this year.

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

 Largest exporter of three-wheelers; over 40.875 units exported last year.

 All products customized as per market needs .

 83% growth in total exports in 2002-03.

Different models of Bajaj 4-stroke bikes:

35
Bajaj Discover Electricstart

36
Bajaj Pulsar 150 ES DTSi

37
 CHAPTER - 5

RESEARCH

METHODOLOGY

38
RESEARCH METHODOLOGY
Meaning of Research
Research is a common parlance refers to a search for knowledge. One can also define research as
a scientific and systematic search for pertient information on a specific topic. In fact, research is
an art of scientific investigation. The Advance Learner’s Dictionary of current English lays down
the meaning of research as “A careful investigation or inquiry specially through search for new
facts in any branch of knowledge.” Redman and Mory defines research as a ”Systematized
efforts to gain new knowledge.” Some people consider research as a movement, a movement to
from the known to unknown. It is actually a voyage of discovery. We possess the vital instinct of
inquisitiveness for, when the unknown confronts us, we wonder and our Inquisitiveness make us
probe and attain full and fuller understanding of the unknown.

Methodology
In planning and designing a specific research project, it is necessary to anticipate all the steps
that must be undertaken if the project is to be successful in collecting valid and reliable
information.

OBJECTIVE OF THE STUDY

 To study the marketing mix strategies of MOTOR BIKES.

 To find out the effectiveness of promotional strategies of motor bikes.

 To ascertain the impact of promotional activity on purchase decision.

 To find out the measures tools to boost up sales.

 To conduct promotional sales activity in various places like shopping malls, PVT. LTD
residential areas, corporate areas etc.

RESEARCH DESIGN
Research Design is the arrangement for conditioned for data collection & analysis of data in a manner that
aims to combined relevance to research purpose with economy in procedure. A research design is a
master plan or model for the conduct of formal investigation. It is blue print that is followed in
completing study. The research conducted by me is a descriptive research. This is descriptive in nature
because study is focused on fact investigation in a well structured from and is based on primary data.

RESEARCH PLAN
39
Type of study: For completing my study I have gone for sample study because looking at the size of
population & the time limitation it was not convenient for me to cover entire population. Hence, I have
gone for sample study rather than census study.

SAMPLING PLAN
A sample design is a definite plan for obtaining a sample from a given population. It refers to the
technique or the procedure that researcher would adopt in selecting items to be inched in the sample
i.e. the size of sample. Sampling plan is determined before data are collected.

Steps in Sampling:

 Defining the target population

 Specifying the sampling frame
 Specifying the sampling unit

Selecting the sampling method

 Determination of sample size

 Specifying the sampling size

 Selecting the sampl

• Sampling Frame:

 The list of sampling units from which sample is taken is called sampling frame.

 Sampling Size:

 Total sample size is 50.

 Sampling Procedure:

 The selection of respondents were accordingly to be in a right place at a right time & so the

 sampling were quite easy to measure, evaluate and co-operative. It was a randomly area

 sampling method that attempts to obtain the sample of convenient.

SAMPLING TECHNIQUES

40
The type of sampling that was carried out was probability (convenience) Sampling due to limited
resources available.

In non-probability sampling, I have chosen RANDOM sampling. Because this was best sampling
method to do market survey. On the other aspect, to cover all consumers in Ghaziabad was easy
task.

SAMPLE SIZE
The total number of these selected persons is called sample size. In this case, study sample units
are Two Hundred Eighty Two.

SAMPLE AREA: Ghaziabad (Raj Nagar, Rajendra Nagar, Nehru Nagar, G.T. Road)
DATA SOURCES

Primary Data
Primary data is that kind of data which is collected directly by the investigator himself for the
purpose of the specific study through interviews of company employees, vendors, distributor etc.
Data such collected is original in character. The advantage of this method of collection is that the
data is authentic. A questionnaire of about 50 questions was made and it was given to the dealers
to fill it up for our research. The research was a kind of conclusive research as it helps in the
testing of hypothesis. The method of sampling was the Random method as it is unbiased.

Secondary Data
When an investigator uses the data that has been already collected by others, is called secondary
data. The secondary data could be collected from Journals, Reports, libraries, magazines, fair &
conference and other publications. The advantages of the secondary data can be –It is
economical, both in terms of money and time spent .The researcher of the report also did the
same and collected secondary data from various internet sites like www.google.com,
www.airtel.com, www.hutch.co.in and many more. The researcher of the report also visited
various libraries for collection of the introduction part.

QUESTIONNAIRE DESIGN

We make questionnaire to know which category of people opts for which kind of plans. In this
category the factors included are such as income, background, age, etc. This includes 2 types of
questions Open ended :

In this respondents are not bounded to answer within a set of choices and can give their own
views Close-ended: in this respondents are bounded to answer within a set of choices. I had

41
designed my questionnaire on the basis of close-ended questions as it is more feasible to
calculate data from it.

SAMPLE DESIGN:

While developing a sample design, following points should be kept in mind:

Sampling unit: A decision has to be taken concerning a sampling unit before selecting sample.
Sampling unit may be a geographical like- state, district, village or a construction unit like-
house, flat etc or social unit like- family, club, School etc or an individual. The researcher will
have to decide one or more of such units that he has to select for his study. Size of the sample:
This refers to the number of items to be selected from the universe to constitute a sample. This is
a major problem before a researcher. The size of the sample should be neither is excessively
large, nor too small. it should be optimum An optimum sample is one which fulfills the
requirements of efficiency, representatives, reliability & flexibility. Sample element and sample
unit: 45 people have been interviewed to know their opinion about insurance and finance Extent
Delhi Time frame: 8weeksSampling technique: Average method technique.

LIMITATIONS OF STUDY
 Due to the following unavoidable and uncontrollable factors the results might not be
accurate. Some of the problems might face while conducting the survey are as follows:
 Certain open-ended questions have been put in the questionnaire to give respondents
freedom to express their perception.
 Time and cost constraints were also there
 Chances of some biasness couldn’t be eliminated.

A sample size of 50 has been used due to time limitations.

The data has been collected from Delhi and the perception of the people from the smaller towns
could not be judged

42
 CHAPTER -6

DATA ANALYSIS
AND
INTERPRETATION

43
DATA ANALYSIS AND INTERPRETATIONS

PURCHASE OF 2-STROKE AND 4-STROKE BIKES:

INTERPRETATION:
 Most of the consumers i.e. 73% want to purchase a 4-strokes bike.

 Whereas, 27% consumers want to purchase a 2-strokes bike.

44
INFLUENCING FACTORS:

INTERPRETATION:
 Most of the consumers i.e. 39% are influenced by the friends.

 25% consumers out of 282 respondents are influenced by advertisement.

 18% consumers out of 282 respondents are influenced by the family.

 Whereas, rest of the consumers i.e. 18% are influenced by sales team while making the
purchase decision.

45
RESPONSE OF THE CONSUMERS REGADING MODELS AND
COLOURS:

INTERPRETATION:
 Most of the consumers i.e. 50% like colours and models of Bajaj motorcycles.

 Whereas, equal 14% consumers like colours and models of Hero Honda and
LML motorcycles.

 Moreover, rest equal 11% consumers like colours and models of TVS and
YAMAHA motorcycles.

46
PREFERENCE FACTOR:

INTERPRETATION:

 40 % consumers prefer mileage in their bike.

 48 % consumers prefer power in their bike.

 12 % consumers prefer low maintenance in their bike.

47
PREFERENCE OF BIKE REGARDING CC:

INTERPRETATION:
 Most of the consumers i.e. 51% like to purchase the bike in between 125 cc and 150 cc.

 And 30% of consumers like to purchase the bike in between 100 cc and 125 cc.

 Whereas, rest 19% of consumers like to purchase the bike in 150 cc and above.

48
FACTORS AFFECTING CONSUMER BUYING BEHAVIOUR:

INTERPRETATION:
 31% consumers out of 282 are influenced by Looks Factors (Most Influencing Factor).

 20% consumers out of 282 are influenced by pick up factor.

 13% consumers out of 282 are influenced by mileage.

49
COMPARATIVE ANALYSIS:

INTERPRETATION:

 41% respondents out of 282 consumers like to purchase Hero Honda

(Surva Guna Smpana).

 27% respondents out of 282 consumers like to purchase Bajaj.

 13% respondents out of 282 consumers like to purchase TVS.

50
 7 –7 % respondents out of 282 consumers like to purchase LML
and YAMAHA.

POST PURCHASE ANALYSIS:

INTERPRETATION:

 Only 15% consumers are full satisfied with their bike.

 Whereas 57% and 28% consumers are satisfied and dissatisfied with their bike respectively.

51
 CHAPTER - 7

CONCLUSIONS
AND
SUGGESTION

52
CONCLUSION
From the analysis of the data, it can be concluded that the Bajaj and Hero Honda motorbikes are
most familiar by people. An ideal by as suggested by responded should have the following
figures:

 Good looks

 Good mileage

 Affordable price

 After sales services

• Most of the Flame, Apache, Pulsar, CBZ & Karizma are purchased by young generation 18 to
30 years because they prefer stylish looks and rest of the models of Hero Honda, TVS and Bajaj
are purchased more by daily users who needs more average of bikes than looks.

• Hero Honda is considered to be most fuel-efficient bike on Indian roads.

• Service & Spare parts are available throughout India in local markets also.

• While buying a motorcycle, economy is the main consideration in form of maintenance cost,
fuel efficiency.

• Majority of the respondent had bought their motorcycle more than 3 years.

• Customer satisfaction of the hero bikes is good.

• Customer satisfaction of the Hero(Hero Honda) bikes are very Good.

• Middle class people(70%) are Highly using the Hero bikes.

• Battery complaints are high & due to battery problems night time lighting is not good.

• Major complaints are night time lighting problem & Brakes.

• Most of the customers prefer the hero bikes due to the high mileage.

• Focus should be on young teenagers and executives as they represent largest portion of the bike
user segment.

53
• Hero does not have any successful 150cc bike.

• 360 degree marketing approach with aggressive promotional campaigns should be followed.

SUGGESTIONS

 The best target market for any new product is 20 to 35 yrs and income group of 8000 to 12000

 Before the launch an aggressive advertising must be carried out in order to inform the
consumer about the new bike

 The media adopted for such purpose should be electronic as it is wildly accepted

 Continuous innovation in product process and services too are recommended to get the
competitive edge

 Nicely designed and fuel efficient vehicle Is must to find better prospects and widen its market

 Easily available spare parts at reasonable price backed by efficient sales as competitions

 An eye on competitors policies and review of its own according to changing market
condition will help in formulation of effective strategies from time to time

 The pricing TAG which BAJAJ is going to put on its bikes should not be more Rs.35,000 –
50,000 in any case, because it is the price which is going to determine the success of the
product

 Through demonstration in rural area so that they can get specification of bike

 Bajaj should introduce some more models having more engine power.

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

 More service centers should be opened.

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

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

 The price should be economic.

 Indain customer generally do not use bike for fashion but as a necessity so mileage should be
a concern.

 Hero company better to concentrate on the low price bikes

54
 High priority should be given to the mileage because middle class people are using the bikes.

 Company has to rectify the battery problems & lights.

 Company has to lauch a bike 150cc bike with in budget.

 Ligts are not good enough for night traveling.

 Company has to solve the problems related to thr battery.

 Company should also fulfill the demad of teenager.

 Should make a bike with less price.

 Company has to rectify the battery problem.

55
BIBLIOGRAPHY &
QUESTIONNAIRE

56
BIBLIOGRAPHY
In this project while finalizing and for analyzing quality problem in detail the following books,
magazines and websites have been referred.

Books Consulted:

 Marketing Management – Philip Kotler

 Research Methodology – Kothari

 Business Statistics – S.P. Gupta

Magazines Consulted:

 Indian Journal of Marketing

 IBAT Journal of Management

 Journal of Indian Management & Strategy

 Auto Expo of India

Newspapers:

 Hindustan times

 Times of India

 The Hindu

 Financial Express

 Economics times

Websites Consulted:

 www.bajajauto.com

 www.herohonda.com

 www.lml.com

 www.yamaha.com

 www.google.com

57
 S.No: Date:

QUESTIONNAIRE

Name of……………………………………………………………………………………..
customer..........................................................................Center..............................

Postal address...........................................................................................................

Contact no……………………………………………………………………………………

Q1) Which Bike do you have?

A). Hero Honda B). Bajaj C). TVS

Q2) Which Model do you have?

HERO HONDA : -

A). Splendor Passion B). Karizma C). Other

BAJAJ : -

A). CT 100 Discover B).Pulsar C). Other

TVS :-

A).Flame Apache B).Star city C). Other

Q3). Have you purchased HERO BIKES ever?

YES [ ] NO [ ]

Q4) . IF YES, How did you come to know about HERO BIKES?

a.TV commercial b.Dealer/wholesaler

58
 c.news paper d.suroundings

Q5). What are the influencing factors for your preferences?

a.Price b.Quality

c.Convenience d.All of above

Q6). Are you satisfied with HERO BIKES?

Yes [ ] No [ ]

Q7). Do you think convenience is matter?

YES [ ] NO [ ]

Q8). IF the HERO BIKES are not convenience to you than will you shift to other brands?

YES [ ] NO [ ]

Q9) . Are you satisfied with the price as per the quality?

YES [ ] NO [ ]

Q10) . IT is reliable as compare to the competitors?

YES [ ] NO [ ]

59
Q11). IF YES, Do you think the quality is better as compare to the competitors?

YES [ ] NO [ ]

Q12) . Out of 5 which rank you want to give to the HERO

BIKES? a.GOOD b.BETTER

c.AVERAGE d.BAD

Q13) Any Suggestions for Company

……………………………………………………………………………………………..

……………………………………………………………………………………………...

………………………………………………………………………………………………

Date: (Signature)

60