Ter m paper Of Consumer Behavior

Topic: To study the Brand Loyalty towards two Wheelers

Submitted to: Submitted by: Mr. sanjay sir Liyakat Ali Khan Section : 1803

Roll No : B50 Reg.No: 1087803
DECLARATION

I, "Liyakat Ali Khan”, hereby declare that the work presented herein is genuine work done originally by me and has not been published or submitted elsewhere for the requirement of a degree programme. Any literature, data or works done by others and cited within this dissertation has been given due acknowledgement and listed in the reference section.

_______________________ (Student's name & Signature) (Registration No.) 10807803

. I am highly obliged for the guidelines he took to help me complete my term paper. Above all. My special thanks are also due to Mr. Sanjay Sir who gave me his valuable time and guided me at each step with his expertise and provided me all the required information. thanks to almighty Allah for showing his blessings for the accomplishment of this term paper.Date: 04/12/2009 Acknowledgement I would like to express my sincere thanks towards Lovely Professional University management for providing me an opportunity to pursue my term paper.

Table of contents 1. 6 1. 9 1.78 1..….5 Introduction about TVS………………. …………….. 6 Yamaha Motor Pvt.2....………………………… 10-11 .4 Introduction about Bajaj…………………………. Current Scenario…………. ……………………………………3-5 1.3 Introduction about Hero Honda …………………………….1 Introduction to Industry…………………………… 1-3 1. Ltd …….

27 Conclusion Key findings……………………………………… Two Wheeler Industry: An Overview The two-wheeler industry (henceforth TWI) in India has been in existence since 1955. In 1971.3.9 25 2. Similarly. sales were around 0.0 Suggestions……………………………………………. Recommendations ……………………….17-24 1.28 1. .. scooters. The increase in sales volume of this industry is proof of its high growth.1 2. motorcycles.8 CONSUMER BUYING BEHAVIOU…12- Data interpretation and analysis…………………….1. and mopeds. But by 1998.1 million units per annum.3 ……………………………………………. this figure had risen to 3 million units per annum..7 ……………… 29 References and bibliography…….7 FACTORS INFLUENCING 16 1..26 2.. It consists of three segments viz.

with liberalization in the nineties. These were later able to grow (both in terms of overall sales volumes and number of players) once foreign investments were allowed in 1981. Enfield Bullet had a close competition with another sturdy bike named Rajdoot. Finally.capacities of production have also increased from about 0. Thus one can say without much of a doubt that the 1955 Bullet was one of the initial hits of the Indian two-wheeler industry and till today it continues to be a darling of the motorcycle enthusiasts. The first time-period. These bikes have remained unaltered. Regulatory policies like FERA and MRTP caused the growth of some segments in the industry like motorcycles to stagnate. was one during which the growth of the two-wheeler industry was fostered through means like permitting foreign collaborations and phasing out of non-manufacturing firms in the industry. 1960-1969. \A description of the evolution of the two wheeler industry in India is usefully split up into four ten year periods. In came the Bullets which were initially launched in England as a 350cc bike and it was upgraded to 500cc a year or so later. This division traces significant changes in economic policy making. barring some cosmetic changes which have undergone over the years. as the bike was strong enough to handle the rough Indian roads The two-wheeler industry in India has to a great extent been shaped by the evolution of the industrial policy of the country. The period 1970-1980 saw state controls. The reforms in the eighties like ‘broadbanding’ caused the entry of several new firms and products which caused the existing technologically outdated products to lose sales volume and/or exit the market. the industry witnessed a proliferation in brands. .2 million units of annual capacity in the seventies to more than 4 million units in the late nineties It was in the year 1954 that the Indian government ordered for total number of 800 motorcycles to man the Pakistani borders.

Production of automobiles was licensed. b) 1970 – 1980 This was a period during which the overall growth rate of the two-wheeler industry was high (around 15% per annum). which meant that a firm required a licensing approval in order to open a plant. FERA had a more far-reaching effect as it caused foreign investment in India to be restricted. whose growth rates were curbed as they came under the purview of this Act. The former was the result of the steep oil price hikes in 1974 following which two-wheelers became popular modes of personal transport because they offered higher fuel efficiency over cars/jeeps8. the introduction of regulatory polices such as MRTP and FERA resulted in a controlled industry. Foreign collaborations were allowed for all twowheelers up to an engine capacity of 100 cc. It also meant that a firm’s capacity of production was determined by the Government.through the use of the licensing system and certain regulatory acts over the economy. On the other hand. c) 1981 – 1990 The technological backwardness of the Indian two-wheeler industry was one of the reasons for the initiation of reforms in 1981. However. The impact of MRTP was limited as it affected only large firms like Bajaj Auto Ltd. the levels of restriction and control over the industry were also high. . Furthermore. 1968). In the motorcycle segment FERA caused technological stagnation. besides restricting import of complete vehicles. automobile assembler firms were phased out by 1952 (Tariff Commission. at their peak. In order to encourage manufacturing. as a consequence of which. neither new products nor firms entered the market since this segment depended almost entirely on foreign collaborations for technology. a) 1960 – 1969 The automobile industry being classified as one of importance under the Industrial Policy Resolution of 1948 was therefore controlled and regulated by the Government. and only manufacturing firms allowed to continue.

The scooter and moped segments on the other hand were technologically more self-sufficient and thus there were two new entrants in the scooter segment and three in the moped segment. the levels of restriction and control over the industry were also high.wheeler sales in the country have sky rocketed in the recent years. the introduction of regulatory polices such as MRTP and FERA resulted in a controlled industry. In the motorcycle segment FERA caused technological stagnation9. neither new products nor firms entered the market since this segment depended almost entirely on foreign collaborations for technology. Current Scenario Two. whose growth rates were curbed as they came under the purview of this Act.d) 1970 – 1980 This was a period during which the overall growth rate of the two-wheeler industry was high (around 15% per annum). Furthermore. Foreign collaborations were allowed for all twowheelers up to an engine capacity of 100 cc. FERA had a more far-reaching effect as it caused foreign investment in India to be restricted. c) 1981 – 1990 The technological backwardness of the Indian two-wheeler industry was one of the reasons for the initiation of reforms in 1981. and the annual sales of motorcycles in India expected to cross the 10 million mark by 2010. On the other hand. However. The impact of MRTP was limited as it affected only large firms like Bajaj Auto Ltd. The former was the result of the steep oil price hikes in 1974 following which two-wheelers became popular modes of personal transport because they offered higher fuel efficiency over cars/jeeps8. The low penetration of two-wheelers in the country 31 two-wheelers per 1000 citizens (2004) leaves . as a consequence of which.

scooterettes and mopeds have shown a negative growth or remained stagnant.34 million units during the same period thus registering an overall growth of 15% from the previous year. The company has posted a 10% growth in sales accounting for a market share of about 77%. It also commands a 62% market share in the premium segment of motorcycles with products like the Bajaj Pulsar DTSI. The share of motorcycles have increased over the years. while that of other two-wheelers like geared scooters. The two-wheelers have penetrated 7% of rural house hold and 24% of urban markets.57 million in 2005/2006. which is the largest segment in the motorcycles . the sales of the company grew by almost 31%.3 million vehicles in 2005/2006. Bajaj Auto one of the leading producers of automobiles in the country has been able to sell close to 2. The segment in which Hero Honda has emerged as a clear winner is the Deluxe segment. Bajaj Auto has emerged as a market leader in the entry level or price segment motorcycle with the Bajaj CT 100 accounting for nearly 40% of the market share. thus it leaves an immense scope for the market to grow. Where the company has emerged as a clear winner by holding onto its leadership position is in the moped segment.immense scope for the growth of the market. In the motorcycle segment the company has been able to attain a market share of about 50%. The introductions of motorcycles like the TVS Star range of motorcycles have helped the company in gaining a healthy market share in this segment. If this figures have daunted you the best is yet to come. TVS Motors which has lots of firsts to its credit in the two-wheeler sector in the country was able to sell 1.57 million in 2004/2005 to 7. In the motorcycle segment the company's growth in sales was in sync with the industry average. the country leader in two-wheelers hero honda have crossed the three million mark during the year 2005/2006 which is a good few lakhs more than its nearest competitor Bajaj Auto. The company registered a 32% growth in the sales of motorcycles much above the industry average of 19%. Overall the industry sales of two-wheelers have grown by 15% from 6. The company accounted for nearly 40% of then two-wheeler market. The buoyant Indian economy with a growth rate of around 8% per annum is further expected to fuel the growth of two wheelers in the country.

the company introduced motorcycles that were popular in India for their fuel economy and low cost. Hero Honda has three manufacturing facilities based at Dharuhera and Gurgaon in Haryana and at Haridwar in Uttarakhand.category. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda company.2 million units which is just a shade less than all the two wheelers sold by TVS during the same year. Hero Honda Hero Honda: Hero” is the brand name used by the Munjal brothers for their flagship company Hero Cycles Ltd. During the 1980s. A popular advertising campaign based on the slogan 'Fill it Shut it . with its flagship family of motorcycles splendor selling over 1.Forget it' that emphasized the motorcycle's fuel efficiency helped the company grow at a double-digit pace since inception. These plants .

BAJAJ Bajaj Auto is a major Indian automobile manufacturer. It is based in Pune. Hero Honda's customer loyalty program. claims to be one of the largest programs of its kind in the world with over 3 million members. Hero Honda's has a large sales and service network with over 3.and three-wheeler maker. . is inspired by the parental companies.9 million bikes per year. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108. The brand name has been into place from the day the two firms came into joint venture.000 dealerships and service points across India. with plants in Akurdi and Chakan (Pune). Maharashtra. It is India's largest and the world's 4th largest two. Brand Name: The name HERO HONDA.together are capable of churning out 3. the hero group and the Honda company from Japan. motorcycles and the auto rickshaw The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946.Waluj (near Aurangabad) and Pantnagar inUttaranchal. Bajaj Auto makes and exports motorscooters. the Hero Honda Passport Program.

In 1995. In 1985.5 billion. It started off by selling imported two. the company has successfully changed its image from a scooter manufacturer to a two wheeler manufacturer.000 vehicles in a single financial year. In 1977.000th vehicle.Over the last decade. Its real growth in numbers has come in the last four years after successful introduction of a few models in the motorcycle segment.000 vehicles in a single financial year. it started producing at Waluj in Aurangabad In 1986. Its product range encompasses scooterettes. Bajaj Auto came into existence on November 29/1945 as M/s Bachraj Trading Corporation Private Limited. In 1970. it managed to produce and sell 500. scooters and motorcycles. it managed to produce and sell 100. it rolled out its ten millionth vehicle and produced and sold 1 million vehicles in a year. it rolled out its 100.and three-wheelers and it went public in 1960. Brand Name: The brand name “BAJAJ” is kept after its founder member Jamnalal bajaj. In 1959. TVS . The company is headed by Rahul Bajaj who is worth more than US$1. it obtained license from the Government of India to manufacture two.and threewheelers in India.

Brand Name: The brand name TVS is after its its founder Shri T V Sundaram Iyengar. with annual turnover of more than USD 1 billion in 20072008. Ltd. However. on 15th July. Great milestone in Indian automobile history: Country’s first 2 seater 50 cc mopedTVS 50 launched. Then the company launched a new model of moped viz. Japan . `TVS Scooty'. Yamaha acquired its . and it was converted into a public limited company on 12th January. and is the flagship company of the USD 4 billion TVS Group. Subsequently. in August 2001.TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the top ten in the world. it entered into a 50-50 joint venture with the Escorts Group in 1996. TVS became the first Indian Company to introduce 100cc Indo-Japanese motorcycles.97 per cent stake of the Japanese company for Rs 9 crore. Ltd. Ltd.a joint venture between the TVS group and Suzuki Motor Corporation.was the first company to launch a 100-cc motorcycle in the Indian market. Its name was changed to Indo Suzuki Motorcycles Pvt. The company was incorporated in 1982 as Indian Motorcycle Pvt. The Company launched two new models of motor cycles viz. India Yamaha Motor Pvt. `Sumurai' and `Shogun'. 1984. In 2000 The TVS group and Suzuki Motor Corporation September 27 parted ways from their 15year-old joint venture with the former buying out the 25. TVS-Suzuki (TSL) . Yamaha made its initial foray into India in 1985.

At the core are the 5-S and TPM activities that fuel its Manufacturing Processes. YZF-R15 and other models. The plant has 3 vehicle assembly lines and 4 engine assembly lines including one dedicated for export engines. a highly satisfied customer base. IYM is highly customer-driven and has a countrywide network of over 400 dealers.E. IYM operates from its state-of-the-art-manufacturing units at Surajpur in Uttar Pradesh and Faridabad in Haryana and produces motorcycles both for domestic and export markets. Ltd.Kazikawa C. The new Surajpur plant has been inaugurated by Mr. supply and production.. YMC entered into an agreement with Mitsui & Co. Ltd. Japan (YMC). Parts Assurance through 100% kit supply on lines and synchronization of parts storage. Complete Product Assurance. FZ-S. making a purchase decision will be affected by the following three factors: 1. to become a joint investor in the motorcycle manufacturing company "India Yamaha Motor Private Limited (IYM)". In 2008.O & MD Yamaha Global on 6th July 2009. Personal Factors Psychological Factors Social Factors . T. The innovative production processes along with high tech final assurance processes are aimed to achieve Zero Claims at our dealers and thus. which have capacity to produce 6 lakh motorcycles annually including Fazer followed by FZ-16. This fully integrated assembly plant is built on the lines of Yamaha’s globally tried. With a strong workforce of more than 2000 employees.e. tested and successfully implemented standards and meets the global quality benchmarks. 3. The engine and vehicle assembly lines are synchronized and incorporate concepts of Unit Assurance i. 2..remaining stake becoming a 100% subsidiary of Yamaha Motor Co. The plant capacity can be augmented up to 1 million units. FACTORS INFLUENCING CONSUMER BUYING BEHAVIOUR A consumer.

This also played a greater role in purchasing decision of two wheelers by individuals. Data interpretation and analysis Q. Race. Psychological Factors There were many people who wanted to purchase two wheelers just because they had sense of love and belonging for bikes.Personal Factors These factors were varying from person to person. Age etc. Besides this to my surprise I found out that in today’s world boys play major role in buying decisions for themselves and for their family also. Sex. There were few people who bought their bikes for style and status. played major role in buying two wheelers for individual use. They are mostly see performance of the bike and services that provided by companies and want their bike to be smooth while driving the bike. Demographic Factors. friends and relatives opinion. Do you have a bike? . Social Factors There were many people who bought bikes because of social factors like on their parents. Boys who were in age group of 1825yrs were more interested in features as compared to other factors described. Young people in age group of 18-35yrs purchased two wheelers for different various reasons while older people in age group of 35-50yrs purchased just for travelling purpose only. This was found more among Hero Honda user.

.Yes No Bike s YES 38 NO 2 Out of 40 respondents 38 have bikes while as 2 respondents does not have bike.

Q. Using bike for which purpose? Office Traveling Both Others PU RPOSE TRAVELLING 16 OFFI CE 10 BOT H 8 OTHE RS 6 .

Q. Which company bike do you possess? Bajaj Hero Honda Others COMPANY HERO HONDA 21 BAJAJ 12 OTHERS 7 .

Why did you prefer this brand over other brand? Quality features Availability Price PREFERENCE QUALITY 12 FEATURES 19 AVAILIBILI TY 3 PRICE 5 .Q.

6. If the quality of the product deteriorates suddenly what you do? swithh over other 21% Stuck to same 50% inform 29% .

More than 6 yrs more 13% .4-6 yrs b. 0-2 yrs C.7. How long you have been using this brand 2-4 yrs 19% 0-2yrs 43% 4-6yrs 25% a. d. 2-4 yrs.

Which age group do you belong? 30-35 yrs 27% 10-30 yrs 38% 35-40 yrs 19% more than 40 16% .20.

that comes out in the perception of people for age . .  Companies should make sure that they provide good after sale service to their customers and there problems are rectified as soon as possible. their presence makes the sector viewed as a Male.  Age Group 18-30: The youth is the target market for the bikes. Today’s customers want value for money if that is not provided than company will find it difficult to position itself in the market.Findings According to the report hero Honda has great brand loyalty followed by Bajaj Looking at all the above information we can infer that the people perceive the two wheeler industry as:  Male: With these days most of the market is dominated by the motor bikes. The turnaround time should be very less that customers don’t have to wait too long for their problems so to be solved. as the youth of 18-30 id perceived for the sector.  Costumer are very much brand loyal and will not change their brand easily  Some costumers are using the same brand from last six years and have a very strong brand loyality  The quality of products should be very good.

40 samples the results need to be understood keeping in mind. This study has made conjoint design but alternate ways to measure consumer preferences which can be used in future. the study in more localities or a town may reveal difference if any in respondent preferences.Limitations and Recommendations As the study was taken in one area only. and also the sample size of doing the survey was also very limited i. In the recommendations it can be said that there should be more development in finding out the different buying behavior and preferences by the other two wheeler industries in a promotion intensive environment and also the quality. the consumers the decider. Also for the study of two wheelers reveals that.e. In future. . have only the preference of Hero Honda and Bajaj pulsar even if the price of two wheelers rises and if the same trend continues the other companies would be finding it very difficult to be stable.

Conclusion The term paper makes several contributions to the literature. It provides theoretical arguments how consumer behaviour and brand loyality can overcome unique risks of an organization. natural claims etc which may affect a portfolio. This market risk remains in a well diversified portfolio also. Paper investigated that in absence of learning a portfolio has market risk i.e. . This paper has been made by following the real examples and shows that to adapt new trends of the market and to survive in the market. state of economy. It provides comprehensive knowledge about brand loyality and methods of implementing brand loyality. political.

com http://www.com/two-wheelers/ .htm http://auto.indiamart.bajaj.herohonda.References And Bibliography http//:www.extrememachines.com http//:www.com/autoindia/yamaha-fz-16-motorcycle-a-macho-streetfighter-from-yamaha/ http://www.net/consumer.dancewithshadows.com http//:www.learnmarketing.com http//:www.twowheeler.

Which company bike do you possess? Bajaj Hero Honda Others Q4. stuck to same brand b. inform or give suggestion to manager .Annexure Questionnaire Name: …………………………………… Location: ………………………………… Contact:…………………………………. switch over to other brand c. Why did you prefer this brand over other brand? Quality Price features Availability Q5.. Occupation…………………………………. If the quality of the product deteriorates suddenly what you do? a... Using bike for which purpose? Office Others Traveling Both No Q3. Q.1 Do you have a bike? Yes Q2.

Which age group do you belong? a. b. More than 6 yrs . 10-30 yrs c . d. b. 2-4 yrs.4-6 yrs Q7.Q6. 35-40 yrs. 0-2 yrs C. 30-35 yrs d. How long you have been using this brand a.. more than 40 yrs.

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