.

PROJECT REPORT

ON
“COMPARISON OF THE BRANDS OF
TWO WHEELER SEGMENT”

(A case study of Rohtak)

MASTER OF BUSINESS ADMINISTRATION

(Session 2009-11)

SUBMITTED TO:- SUBMITTED BY:-

Dr. Ashutosh Nigam Varun Pandit (55)
Lect. M.B.A. Deptt. Saurabh Arora (47)

VAISH COLLEGE OF ENGINEERING , ROHTAK

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 DECLARATION

We Varun Pandit, Roll No. 55 & Saurabh Arora Roll No. 47 student of
M.B.A (1st Year). Of Vaish College of Engg. hereby declare that the
Project Report entitled “Comparison of the brands of Two wheeler
segment” is an original work and the same has not been submitted to any
other Institute for award of any degree. The project report was presented to
the supervisor of the project. The feasible suggestions have been duly
incorporated in consultation with the supervisor of the project.

Signature of the Presentation Incharge Signature of the Candidates

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 ACKNOWLEDGEMENT
We hereby thanks to the Dr. Ashutosh Nigam Lect. In M.B.A. Deptt. Of
V.C.E, for their valuable contribution & guidance in preparation of this
project report. It has been a real pleasure working on this project as this has
lent me an opportunity to gather a plethora of knowledge.
.

Varun Pandit
Sourabh Arora

3
 Content

S.No TOPIC PAGE

NO.
1 Introduction 5

2 Industrial Profile 7

3 Company Profile 10

4 Objectives 14

5 Scope 16

6 Research Methodology 18

7 Data & Analysis 22

8 Findings 34

9 Conclusion 36

10 Recommendations 38

11 Limitation 40

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12 Bibliography 42

13 Annexure 44

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6
 INTRODUCTION

As a part of the economic reforms initiated by the government in the last decade,
liberalization –privatization- globalization has their feet firmly on the Indian society.
Many companies entered in India causing widespread changes in the market during the
last decade. The increase in population spread of education, higher urbanization, rising
income. Increasing media penetration and move, women joining the workforce are the
conspicuous change that has taken place during the last decade. As a result of which the
traditionally ignorant buyers of yesterday has changed into a well informed and educated
buyer of today. Today’s consumer is educated, well informed and plays an important role
in buying various products for himself and his family.

In this concert a research study is undertaken to study customer preference with respect to
various motorcycle brands. A case study of Rohtak.
1. Hero Honda
2. Honda
3. Bajaj

There are various brands in the market which are selling motorcycles as mentioned
above. Each company has its own features which are leading to a cut throat competition
in the market and also this will increase the no. of options available for a consumer in the
market.

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8
INDUSTRIAL PROFILE

INDIAN MOTORCYCLE INDUSTRY EVOLUTION

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.
Until1958, 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. The agreement expired in 1971.

In the initial stages, the scooter segment was dominated by API; it was later overtaken by
Bajaj Auto. 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 seller 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. And 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.

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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.

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. A factor 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.

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 BAJAJ

Bajaj Auto is a major Indian automobile manufacturer. It is India's largest and the
world's 4th largest two- and three-wheeler maker. It is based in Pune, Maharashtra, with
plants in Akurdi and Chakan (Pune),Waluj (near Aurangabad) and Pantnagar in
Uttaranchal. Bajaj Auto makes and exports motor scooters, motorcycles and the auto
rickshaw.

The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946.

Over the last decade, the company has successfully changed its image from a scooter
manufacturer to a two wheeler manufacturer. Its product range encompasses scooterettes,
scooters and motorcycles. Its real growth in numbers has come in the last four years after
successful introduction of a few models in the motorcycle segment.

The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.

Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading
Corporation Private Limited. It started off by selling imported two- and three-wheelers in
India. In 1959, it obtained license from the Government of India to manufacture two- and
three-wheelers and it went public in 1960. In 1970, it rolled out its 100,000th vehicle. In
1977, it managed to produce and sell 100,000 vehicles in a single financial year. In 1985,
it started producing at Waluj in Aurangabad. In 1986, it managed to produce and sell
500,000 vehicles in a single financial year. In 1995, it rolled out its ten millionth vehicle
and produced and sold 1 million vehicles in a year.

According to the authors of Globality: Competing with Everyone from Everywhere for
Everything, 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

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 HERO HONDA

The Hero Honda story began with a simple vision – the vision of a mobile and an
empowered India, powered by Hero Honda. This vision was driven by Hero Honda’s
commitment to customer, quality and excellence, and while doing so, maintains the
highest standards of ethics and societal responsibilities. Twenty five years and 25 million
two wheelers later, Hero Honda is closer to fulfilling this dream. This vision is the
driving force behind everything that we do at Hero Honda. We understood that the fastest
way to turn that dream into a reality is by remaining focused on that vision.

Over the course of two and a half decades, and three successive joint venture agreements
later, both partners have fine-tuned and perfected their roles as joint venture partners.
What the two partners did was something quite basic. They simply stuck to their
respective strengths. As one of the world's technology leaders in the automotive sector,
Honda has been able to consistently provide technical know-how, design specifications
and R&D innovations. This has led to the development of world class, value - for- money
motorcycles and scooters for the Indian market. In the process, Hero Honda is recognized
today as one of the most successful joint ventures in the world. It is therefore no surprise
that there are more Hero Honda bikes on this country's roads than the total population of
some European countries put together!

The company's meteoric growth in the two-wheeler market in India stems from an
intrinsic ability to reach out and come closer to its customers, with every passing year.
Hero Honda's bikes are sold and serviced through a network of over 3500 customer touch
points, comprising a mix of dealers, service centres and stockists located across rural and
urban India. Hero Honda has built two world-class manufacturing facilities at Dharuhera
and Gurgaon in Haryana, and its third and most sophisticated plant at Haridwar has just

13
completed a full year of operations. It is difficult to imagine that all this has happened in
the span of just two and a half decades!

HONDA

Soichiro Honda began producing motorcycles in 1946 to satisfy a thirst for cheap
transportation in war devastated Japan. Honda began his effort by installing military
surplus engines in bicycles. As Honda became more prosperous, he designed his own
50cc engine for the bicycles. The first motorcycle that featured a completely Honda
designed motor and frame was produced in 1949. It was called the Model D for Dream.
The success of this model was quickly followed by the model J Benly.
The story of Honda actually begins in Yamahigashi, Japan on November 17 1906. On that
day Soichiro was born to Gihei and Mika Honda. Gihei was the local blacksmith and
Mika was a weaver.

Gihei Honda gave his son an interest in mechanical devices at an early age. Soichiro, as a
young child was able to help his father repair farm machinery and build his own toys. He
became familiar with gasolene engines by studying the small engine that powered the
local rice mill.

Honda began to refine his mechanical skills working on bicycles that his father began
selling. By 1922, Honda was ready to work on something more complicated and at the
age of 15 he moved to Tokyo and began working in an auto repair shop.
Starting out as an apprentice, Honda developed into a highly skilled mechanic. By the
time Honda was 17 years old, he was the trused mechanic of famous Japanese race car
driver Shinichi Sakibahara. This led to a victory at Tsurumi, Japan where the team won
the Chairman's Trophy.

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Four years after that victory, Honda opened his own auto repair shop in Hamamatsu
where he continued to refine his mechanical and engineering skills.

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 OBJECTIVES OF THE STUDY

Each project report has some objectives on which main emphasis in given. The various

primary and secondary objectives of the study are as follows

PRIMARY OBJECTIVE:-

 To represent the market positioning, segmentation, target policies and pricing

strategies of the various motor cycle brands.

SECONDARY OBJECTIVE:-

 To determine the role of customer regarding particular brand of motor cycle

 To understand the influence of brand preference of customers

 To find the impact of customer preference regarding motor cycle.

 To do the comparative analysis of various motor cycle brands.

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SCOPE OF THE STUDY

This study is confined to those company agencies or brand agencies that sell consumer

goods (particularly motor cycles) and which have permanent location in the sample of

Rohtak. The study doesn’t include shops or agencies which deal in the resale of or spare

parts of the various kinds of motor cycles hence we can say that they are out of the scope.

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20
 RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem i.e. it

signifies how the research is being carried out. Here we study the various steps that are
adopted in studying the research problem. The methodology gives the researcher a chance
to put forth his views, contentions and justifications for having adopted a certain way of
doing research and ruling out other possibilities. It is with this view that this chapter has
been incorporated in the present work and has been divided into following sections:-

1) Research Design
2) Sample Design

3) Data Collection

4) Data Analysis

1) RESEARCH DESIGN

After formulating the research objectives, the next step is to select the suitable
Research Design. A Research Design is the conceptual structure within which the
research is conducted. It constitutes the blueprint for collection, measurement and
analysis of data. The literature has been scanned primarily from the textbook, website,
company journals, publications and magazines etc. Research Design has been
classified into following three categories:-

 Exploratory
 Descriptive

 Causative

Then a working hypothesis was evolved which consisted of personal investigation of

descriptive nature involving original field interview on a limited scale with a view to
secure greater insight into the practical aspects of the present research study. The
available data was then organized in such a way that leads to right path and selecting

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 pre-determined approach of data collection by administering questions using
convenient sampling.

In the project “ANALITICAL STUDY OF CUSTOMRERS PREFERENCE

TOWARDS VARIOUS MOTOR CYCLE BRANDS” “EXPLORATIVE RESEARCH
DESIGN” is being used.

Explorative research design is also termed as formulative research design. The main
purpose of such studies is that of formulating a problem for more precise
investigation or of developing the work hypotheses from an operational point of view.
The major emphasis in this design is on the discovery of ideas and insights. This
research design is appropriate for such studies which are flexible enough to provide
opportunity for considering different aspects of a problem which is under study.

2) SAMPLE DESIGN

Examining the entire sample accurately is rewarded, but practically it is impossible

because of time and money constraints. In such a case Sampling is the only technique.
As such a sample design is a definite plan for obtaining a sample from a given
population. Sample Design needs to be determined before data are collected. Sample
Design includes the following:-

 POPULATION

The sample used in the study includes the people from the Rohtak.

 SAMPLING METHOD

Convenient Random Sampling method has been used to get the responses from
various people.

 SIZE OF THE SAMPLE

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The size of the sample is 50. This sample population includes all types of people
within the Rohtak city

 RESEARCH INSTRUMENT

Questionnaire has been used as research instrument to obtain information. The

responses from the concerned respondents were collected personally.

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24
 OCCUPATION of the Respondents.
 Student
 Private service
 Business
 Govt. Service
 Professional

STUDENT PRIVATE BUSINESS GOVT. PROFESSIONAL

SERVICE SERVICE
74% 12% 6% 4% 4%

INTERPRETATION: - Mostly respondents are the students they are 74% of the
total respondents. Private Service people are 12%. Business person are 6%. Govt. Service
person are 4%. Professionals are 4%.

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Which company would you prefer at the time of purchasing a bike?
 Bajaj
 Hero Honda
 Honda
 Others

HONDA HEROHONDA BAJAJ OTHERS

20% 42% 30% 8%

INTERPRETATION: - Most of the persons in Rohtak city own a motorcycle.

People generally purchase the various models of motorcycle. 42% people prefer to

purchase the bikes of Hero Honda brand. 30% people prefer to purchase the bikes of

Bajaj. 20% people prefer to purchase the bikes of Honda brand and 8% people prefer to

purchase the bikes of other brand like TVS, Royal Enfield & Yamaha.

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Which brand would you prefer in following company?

Bajaj
 Pulsar
 Platina
 Discover
 Other

PULSAR PLATINA DISCOVER OTHERS

58% 14% 24% 4%

INTERPRETATION: - 58% people in the Rohtak city have preferred the Pulsar

brand of the Bajaj Company. Second choice is Discover it is preferred by 24%

people14% people prefer the Platina and 4% people are who prefer other brands like

CT100, XCD.

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 Which brand would you prefer in following company?

Hero Honda
 Splendor
 Passion
 Karizma
 Other

SPLENDOR PASSION KARIZMA OTHERS

52% 13% 29% 6%

 INTERPRETATION: - 52% people in the Rohtak city have preferred the

Splendor brand of the Hero Honda Company. Second choice is Karizma it is

preferred by 29% people. 13% people prefer the Passion and 6% people are who

prefer other brands like HUNK, CBZ.

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 Which brand would you prefer in following company?

Honda
 Shine
 Stunner
 Unicorn
 Other

SHINE STUNNER UNICORN OTHERS

22% 46% 30% 2%

INTERPRETATION: - 46% people in the Rohtak city have preferred the Stunner

brand of the Honda Company. Second choice is Unicorn it is preferred by 30% people.

22% people prefer the Shine and 4% people are who prefer other brands.

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What factor would you see in a bike?
 Engine Power
 Looks
 Price
 Services
 Mileage

ENGINE LOOKS PRICE SERVICE MILEAGE

POWER
20% 23% 12% 18% 37%

INTERPRETATION: - 37% of the people see the mileage in the bike.23% people

see the looks of the bike. 20% people see the engine power. 18% people see services.

12% see the price of the brand.

Now you have the bike of which company?

 Bajaj
 Honda
 Hero Honda

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  other

HONDA HERO HONDA BAJAJ OTHERS

12% 45% 36% 9%

INTERPRETATION: - 45% people have the bike of Hero Honda. 36% people have

the bike of Bajaj. 12% people have the bike of the Honda Company and 9% people have

the bike of the other companies.

Do you have any bike before this?

 Yes
 No?

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 YES NO
91% 9%

INTERPRETATION: - 91% people have the bike before purchasing the existing

bike. Only 9% people does not have the bike before the existing bike.

If yes than of which company?

 Bajaj
 Honda
 Hero Honda
 other

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 HONDA HERO HONDA BAJAJ OTHERS

12% 45% 36% 9%

INTERPRETATION: - 45% have the bike of Hero Honda company before

purchasing the existing bike. 36% people have the bike of Bajaj. 12% people have the

bike of Honda. 9% people have the bike of the other companies.

Rate the companies according to your preferences.

Excellent Good Average Poor Very Poor

Bajaj 22 9 13 5 1
Hero Honda 15 26 6 1 2
Honda 12 18 13 2 5

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INTERPRETATION: - Most of the people are giving high rating to Bajaj Company

but they are giving a good rating to Hero Honda & Honda also.

What are the sources of information?

 Print Media
 Television
 Internet
 Banners & Hoardings

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PRINT MEDIA TELEVISION INTERNET BANNERS & HORDINGS
10% 72% 12% 6%

INTERPRETATION: - Most of the persons got aware from television advertisement

they are 72% of the total respondents. Internet awareness is 12%. Print media give

awareness to 10% people. Banners & Hoardings influences the 6% people.

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 FINDINGS OF THE STUDY

Each project study has some findings. The various findings of the study are as follows:-

 Most of the persons now preferring the motorcycles rather than scooter, moped or

other two wheelers.

 Most of the persons prefer the various models of motorcycles of the company

HERO HONDA and BAJAJ Almost all the companies are providing the spare parts of

their motorcycles at their service stations.

 HERO HONDA is considered to be the best company with respect to the fuel

efficiency of the motorcycle.

 TELEVISION is the best source of advertisements of the various motorcycles.

 Most of young generation people prefer the sports bikes rather than the general

bikes which are available in the market.

 HERO HONDA and BAJAJ have a lot of competition in the Indian motorcycle

industry.

 HERO HONDA is considered as best in all respects in the Indian motorcycle

industry but BAJAJ and Honda are not far behind.

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CONCLUSION

Indian two-wheeler market is facing a tremendous growth as well as competition. The

market has had a perceptible shift from a buyers’ market to a sellers market with a variety
of choices. Players will have to compete on various fronts viz pricing, technology,
product design, productivity, after sale service, marketing and distribution. In the short
term, market shares of individual manufacturers are going to be sensitive to capacity,
product acceptance, pricing and competitive pressures from other manufacturers.

As incomes grow and people feel the need to own a private means of transport, sales of
two-wheelers will rise. Penetration is expected to increase to approximately to more than
28% by 2006.

The motorcycle segment will continue to lead the demand for two-wheelers in the
coming years. Motorcycle sales are expected to increase by 25%.

Bajaj Auto will continue to dominate the segment. In this segment, we would see players
shifting from diesel to cleaner fuels like CNG in line with norms set out by various state
governments.

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 SUGGESTION AND RECOMMENDATIONS

To increase the sales figures of motorcycles, it is necessary to understand the consumer’s

attitude and perception and therefore some suggestion and recommendation are given
below:

 First of all the company should understand the consumer’s attitude and market
demand through surveys and questionnaire before launching new models or updating old
models.
 The company should determine the factors influencing the buying behavior of the
customer.
 Every company should launch at least a new model every year so in the
competition, one must to be spontaneous.
 The mileage of the bike should be increased as rate of patrol is increasing day by
day.
 People want to buy more powerful bikes but with their low mileage capacity they
prefer middle segment bikes, which provide both power and fuel efficiency.
 The models liked by the customers should be launched with new and attractive
features.
 Company must launch new models only after analyzing the need of the
customers.
 The price should be in the reach of the customers.
 It should have solid body and flexible solid front brakes and less maintenance
cost.

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 LIMITATIONS OF THE STUDY

Primary data has also been used in this study. There could be the margin for errors due to

the use of the data. In every research there are chances of errors and constraints. I found

following errors in my study

 Because of shortage of time and so many other constraints it is possible that some

respects might have been left untouched.

 Due to the limited time the findings of the research can’t be generalized.

 Data collected could not be appropriate, as sometimes respondents did not

respond seriously.

 Sample size is very small as I have taken only 50 respondents.

 Respondents may give biased responses.

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 BIBLIOGRAPHY

BOOKS:-
 Kotler Philip, Marketing Management, Prentice Hall, New Jersey, 1987.

 Kothari C.R., Research Methodology, Wishwa Prakashan, New Delhi, 2000.

WEBSITES:-
 www.google.co.in

 www.herohonda.com

 www.herogroups.com

 www.bajajauto.com

 www.surfindia.com

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QUESTIONNAIRE

We Varun & saurabh Students of MBA 1st year (2nd sem.) doing project on the topic

“Comparison of the Brands of Two Wheeler segment”. I ensure you not to disclose

this information.

(Varun) (Saurabh)

1. Name :_____________________________________________
2. Age :_____________________________________________
3. Contact No. :_____________________________________________
4. E-Mail Id :_____________________________________________
5. Occupation :_____________________________________________

1. Do you own any motor cycle?

Yes No

2. Which company’s motor cycle you are currently using?

Hero Honda Bajaj Honda

If others please specify ______________________________________________

__________________________________________________________________

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3. How much you are satisfied with your current motorcycle?

Very Satisfied Somewhat Satisfied

Somewhat Dissatisfied Very Dissatisfied

4. What was the mode of payment for the motorcycle?

Cash Finance Loan Others

If others please specify ______________________________________________

__________________________________________________________________

5. Are you satisfied with the after sale service provided by the company whose

motorcycle you are currently using?

Yes No

6. Do you get the spare parts of your motorcycle easily from the near by service
Station of the company?

Yes No

7. Which company’s motorcycle according to you is best with respect to the price?

Hero Honda Bajaj Honda Others

If others please specify ______________________________________________

__________________________________________________________________

8. Which company’s motor cycle according to you is most fuel efficient?

Hero Honda Bajaj Honda Others

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If others please specify ______________________________________________

__________________________________________________________________

9. Which company’s motor cycle according to you is best with respect to the
Speed?

Hero Honda Bajaj Honda Others

If others please specify ______________________________________________

__________________________________________________________________

10. Which company’s motor cycle according to you is best with respect to the
Looks?

Hero Honda Bajaj Honda Others

If others please specify ______________________________________________

__________________________________________________________________

11. Any other characteristics which you prefer while purchasing the motorcycle of a
particular company?

1. _________________________

2. _________________________

12. How did you get the information about the motorcycle you are currently using?

Through Advertisement Through Tradeshows Through Catalogs

Through Friends Others

If others please specify ______________________________________________

__________________________________________________________________

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13. Which is the best source according to you for the advertisement of the motorcycle?

Television Radio Newspaper

Hoardings Tradeshows Others

If others please specify ______________________________________________

__________________________________________________________________

14. Which is your dream bike?

Hero Honda splendor Bajaj pulsar Honda Shine Yamaha FZ

Royal Enfield Suzuki GS150 Others

If others please specify ______________________________________________

__________________________________________________________________

15. Which company according to you is the best in all respects in the Indian motor cycle
industry?

Hero Honda Bajaj Honda Others

If others please specify ______________________________________________

_________________________________________________________________

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16. For your choice of Bike, please indicate how much each of the following factors are
important for you:
Most Less Likely Not Likely Desired
Likely Likely

Price of The Various Bike

Style of The Bike

Mileage of The bike

After sale service of the

Bike
Accessories services of the
Bike

Warranty period

Variety of features and

services that are offered(for
example; Cash Payment,
Installment system, Various
offers )

THANKYOU!

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