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Projectreport 141008015527 Conversion Gate01
Projectreport 141008015527 Conversion Gate01
Projectreport 141008015527 Conversion Gate01
EXECUTIVE SUMMARY
Title of the project: A Comparative Study of Customer Satisfaction toward
Performance of Hero, TVS, Honda & Bajaj Bikes
Industry: Automobile
Company: HMSI (Honda Motorcycle and Scooter India) Private Limited
Product: Two Wheeler Bikes
OBJECTIVES OF PROJECT
1.
2.
3.
4.
RESEARCH DESIGN
Success of any formal research project is a sound research design. A good
research design has Characteristics like problem identification, problem definition,
research objectives, developing the research plan, sourcing data, collection of data,
analyzing data and information, presenting the findings.
Research type -
Descriptive
Research approach-
Population-
Malegaon
Sample frame-
Sample size-
Data collection
Primary data was collected by structured questionnaires, interviews and
observations made during the visits on field.
Secondary data was collected from literature survey and internet.
LIMITATIONS
1. Research work was carried out in Malegaon City only. The findings may not be
applicable to the other parts of the country because of social and cultural
differences.
2. The sample was collected using connivance-sampling techniques. As such result
may not give an exact representation of the population.
3. Shortage of time is also reason for incomprehensiveness.
4. The views of the people are biased therefore it doesnt reflect true picture.
FINDINGS
1. It is observed that in rating of different features of different bikes people give
maximum rating to the look shape, Brand Image and Pickup of the HONDA &
HERO bikes. At the second level they give their maximum rating to the mileage
of Bajaj Bikes. Most of the customers are dissatisfied with their TVS bikes
2. It is observed that the customers of Hero, Bajaj & Honda bikes are not ready to
change their bikes even if a new bike comes in with good features. While majority
of the customers of TVS are ready to change their bikes if new bike provides
some good features to them.
Conclusion
1. Hero, Bajaj and Honda are considered to be most fuel-efficient bike on Indian
rods.
2. Service & Spare parts of Honda bikes are available throughout India in local
markets also.
3. While buying a motorcycle, economy is the main consideration in form
of maintenance cost, fuel efficiency.
4. Majority of the respondent had bought their motorcycle more than 2 years.
SUGGESTIONS
1. Honda should introduce some more models having more engine power.
2. Honda should think about fuel efficiency in case of upper segment bikes.
INDEX
SR. No.
Title
Page no.
LITTERATURE SURVEY
11
INDUSTRY PROFILE
17
COMPANY PROFILE
21
38
RESEARCH METHODOLOGY
40
49
69
CONCLUSIONS
71
10
SUGGESTIONS
73
11
75
LIST OF TABLES
Page
Table
No.
4.1.1
4.1.2
4.2.1
Page
Table
Table Name
Table Name
No.
No.
26
7.06
27
7.07
transportation revolution
No.
56
Usage Of Bikes
How did customers get to
58
29
7.08
Influence of advertisement
59
on customers decision
Owners of different bikes
49
7.09
7.01
Customer Satisfaction
60
towards performance of
bikes
Age-wise users of different
7.02
50
7.10
bikes
about
61
bikes
before buying
7.03
7.04
51
7.11
54
7.12
models
Income level of respondents
62
65
Customers
using
bikes
55
7.13
since
67
GRAPH NAME
No.
1
Respondents Ownership Of
PAGE Graph
No.
No.
49
11
Bikes
GRAPH NAME
PAGE
No.
Influence of
59
advertisement on
customers decision
50
12
Customer Satisfaction
60
towards performance of
bikes
51
13
Respondents having
61
52
14
53
15
Income Level of
53
16
63
63
factor
54
17
respondents
62
factor
64
factor
55
18
since
66
for attributes
Usage of Bikes
56
10
58
19
67
CHAPTER 1
INTRODUCTION
INTRODUCTION
In todays market the sales of the product is not the only way to get success,
the services and the customer satisfaction is also important. The companies HERO,
HONDA, BAJAJ, & TVS are the world class companies in the two wheeler bikes.
Those all are the highest two wheeler selling companies in India. But the performance
and the customers approach toward those companies is important.
The
topic
COMPARATIVE
STUDY
OF
CUSTOMER
are
their
CHAPTER 2
LITERATURE SURVEY
10
LITERATURE SURVEY
In the review of literature I found that many researchers have contributed to this
study about 'Consumer attitude toward performance of two wheeler bikes. Yet, these
remain some area on the part of consumer attitude that needs to be taken notice of in
my report.
According to Economic of times Ketan Thakkar, ET Bureau:How critical India is to Hero Motor Co's fortunes became evident at the close of the
last financial year. The Japanese company had forecast that it would sell 15.52 million
motorcycles and all terrain vehicles (TVs) by March. It ended up falling marginally
short (15.494 million) but that it was even able to get so close to the target was
because its Indian unit grew at a cracking 30% pace. The numbers pretty much tell the
story of what...
ICRA EQUITY RESEARCH SERVICE: HERO MOTOCORP LIMITED Results Update January 20, 2012, Hero Moto. Corp.
Limited (HMCL), formerly Hero Honda Motors Limited, is the worlds largest twowheeler (2W) company in terms of sales volumes, a position that it has been holding
for the last nine consecutive years. HMCL was promoted as a joint venture (JV)
between the Hero Group of the Munjal family and Honda Motor Company (HMC,
Japan), with each holding around 26% equity stake in the company. However, in
December 2010, the management of HMCL signed a new licensing agreement with
HMC. The Hero Group and HMC agreed to restructure their respective equity
positions in HMCL, as part of which, the Hero Group bought out the entire 26% of
HMCs stake in HMCL. HMCL has three manufacturing facilities located at Gurgaon
(Haryana), Dharuhera (Haryana) and Haridwar (Uttarakhand) with an aggregate
capacity to produce 6.15 million vehicles per annum as of March 31, 2011.
11
SIAM, Imams Analysis: Indian two wheeler markets, competition is intense with around 10 players competing
for the share in the industry. These players include global giants like Honda, Suzuki
and Yamaha as well as Indian players like Bajaj and TVS. The market leader in the
domestic two wheeler industry is Hero Honda Motors, with a 42 per cent market share.
It is the largest two wheeler manufacturer in the world and is closely followed by
Bajaj Auto, which has a 27 per cent market share. TVS Motor is the third largest two
wheeler manufacturer in the country; it has also established a manufacturing facility in
Indonesia. Honda Motors is present in India as Honda Motorcycles and Scooters India
Limited (HMSIL), a 100 per cent subsidiary, in addition to joint venture, Hero Honda.
Another international player, its Suzuki, has recently entered the Indian market
through its direct subsidiary. The industry is characterized by frequent product
launches, with over 20 models launched in 2006-07.
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.
two unique cultures & world market leaders i.e. Honda Motor Company of Japan &
Hero Group of India. The partnership between Hondas & Manuals to manufacture
100 CC Motor bike has been one of the most successful Indian joint Venture ever.
HHML has brought to India a revolution on Two Wheeler by famous advertising
campaign Fill it-Shut It-Forget it . Today 2 plants of HHML are located on DelhiJaipur highway.
According to Company, Media Reports, ICRA Hero Honda:Hero Honda been adding 500-600 customer touch points every year and has doubled
the count from 2,000 in March 2006 to 4,200 (includes around 800 dealers) in March
2010. To strengthen its presence in the rural markets, HHML had launched a dedicated
rural vertical in 2007 - 08, which took several new marketing initiatives including
launch of a national-level programmed to direct sales efforts in territories with a
population of 5,000 and above.
Management Punditz: Indian Two Wheeler Industries - 2011-2012:Hero Moto Corp is now worlds largest manufacturer of two-wheelers. The company
has benefited from the demand shift to motorcycles, as it focuses solely on this
product segment (although has a product called Pleasure in Scooter segment). With
fuel efficiency and riding comfort as the main selling points, HMC has been able to
address a wide market and post robust sales growth even after its separation from the
Japanese major Honda.
Honda Motorcycle and Scooter India, Private Limited (HMSI) is the wholly owned
Indian subsidiary of Honda Motor Company, Limited, Japan. Founded in 1999, it was
the fourth Honda automotive venture in India, after Hero Honda, Kinetic Honda Motor
Ltd and Honda Siel Cars India. The entry of Honda into the Indian market as HMSI
began with the launch of the Honda Activa, a 100 cc scooter. A slightly modified
trendier version of the Activa was soon launched, as the Honda Dio. Honda Eterno
was launched thereafter to add to the portfolio of HMSI's scooters. The Honda
Unicorn was the first motorcycle released by HMSI. The Honda Shine has since been
released.
13
According to Sriram on LinkedIn.... Shoppers' Stop Ltd:In 2000 from the initial investor India Book House Ltd. Sriram stepped...He curated the
Kala Ghoda Literature Festival from 2005 to 2010.Past: AVP (Research& Consulting) at
Trans Graph Consulting Pvt. Ltd., Senior Analyst at.
Nov 25, 2009 ... 13HeroCycles Limited Hero Honda Motors Limited hero Cold..... This
has helped Hero Cycles develop immense brand loyalty and customer satisfaction.
....Hero Cycles was ranked 3rd amongst top Indian Companies Review2000.... 38
CHAPTER 339 Literature review Ball and Brown (1968) were the first...
May 6, 2008 ... Customer loyalty has been universally recognized as a valuable asset....
Nearly30 years after loyalty first appeared in the academic literature ... Indica Xeta,
Bajaj Pulsar, Hero Honda, CD 100 and gold coins..... Article: NETTINGLOYALTY
Article from: Grocer Article date: October 07, 2000 is
Nov 30,
2008
...
Customer Value
Exchange
Loyalty (If
Exchange
not
Hero Honda contributes 50% motorcycles to the market. In it Honda holds 46% ... per
cent lower than in the West, have grown at 25% a year between 2000to 2005. ...
Environmental issues, web usage, lead management and customer loyalty.
According to Davis :To maximize the customer-brand relationship on review of the literature we see that
family decision-making process has been. These trust levels are not only associated
14
with brand equity and band loyalty but also Hero Honda being the key player. Bajaj by
far is the number one...
Customer's impression regarding such products will enhance the tendency to shift ...
because there salting brand loyalty lowers customers' sensitivity to price. ... Uses of a
differentiation strategy are Hero Honda, HLL, in their 1999 Harvard Business Review
article "Creating New Market Space".
15
CHAPTER 3
INDUSTRY PROFILE
16
INDUSTRY PROFILE
TWO WHEELERS INDUSTRY IN INDIA
The two wheeler industry in India is one of the largest in the world and one of the
fastest growing globally. India manufactures over 18 million vehicles including
four wheeled vehicle every year. It is the world's second largest manufacturer of
motorcycles, there are eight key players in the Indian market that produced 13.8
million units in the year 2010-11.At present the dominant products of the automobile
industry are two wheelers with a market share of over 75%. The industry has attained
a turnover of more than USD 35 billion & provides direct and indirect employment to
over 13 million people.
beginning in 1948 when Bajaj Auto started importing and selling Vespa scooters in
India. Since then, the customer preferences have changed in favor of motorcycles and
gearless scooters that score higher on technology, fuel economy and aesthetic appeal,
at the expense of metal bodied geared scooters and mopeds. These changes in
customer preference have had an impact on the fortunes of the lead manufacturers.
The erstwhile leaders have either perished or have significantly lost market share,
whereas new leaders have emerged. The two wheeler industry consists of three
segments viz., scooters, motorcycles and mopeds. With an expanding market and
entry of new players over the last few years, the Indian two wheeler industry is now
approaching a stage of maturity. Previously, there were only a handful of two wheeler
models available in the country.
At present the dominant products of the automobile industry are Two Wheelers
with a market share of over 75% and passenger cars with a market share of about
16%. Commercial vehicles and three wheelers share about 9% of the market
between them. The industry has attained a turnover of more than USD 35 billion
and provides direct and indirect employment to over 13 million people.
The Indian two-wheeler industry has come a long way since its humble beginning
in 1948 when Bajaj Auto started importing and selling Vespa Scooters in India.
Since then, the customer preferences have changed in favor of motorcycles and
gearless scooters that score higher on technology, fuel economy and aesthetic
appeal, at the expense of metal-bodied geared scooters and mopeds. These
changes in customer preferences have had an impact on the fortunes of the
Players. The former leaders have either perished or have significantly lost market
share, whereas new leaders have emerged. With an expanding market and entry of
new players over the last few years, the Indian two wheeler industry is now
approaching a stage of maturity. Previously, there were only a handful of twowheeler models available in the country.
Consumers are very important for the survival of the Motor Vehicle manufacturing
industry. In 2008-09, customer sentiment dropped, which burned on the
augmentation in demand of cars. The key to success in the industry is to improve
labor productivity, labor flexibility, and capital efficiency. Having quality
18
This
report
COMPARATIVE
STUDY
OF
CUSTOMER
19
CHAPTER 4
COMPANY PROFILE
20
COMPANY PROFILE
The wholly owned subsidiary of Honda Motor Company, Japan, Honda Motorcycle &
Scooter India has amassed impressive numbers and credibility over the past decade
with some very successful models like the Activa scooter and the Honda Shine 125cc
motorcycle. HMSI is currently the third largest two-wheeler company in India and is
steadily climbing up the ranks. And now with its third plant getting operational, the
long wait for its products also seems to be dropping effectively.
1.1 Products
Twister
21
CBR
The Honda CBR models are a series of Honda sport bikes several of which (400RR,
600RR, 900RR, 929RR, 954RR and 1000RR) are marketed as race replicas, having
the suffix RR after the engine size designation. With the exception of the single
cylinder CBR125 and CBR150, all CBR motorbikes have inline engines (as compared
to the V-twins in the VT, VTR and VF/VFR series). Less sporting models with inline
engines make up the CB Series.
Honda Shine
22
The Honda Shine is a motorcycle developed by Honda Motorcycle & Scooter India
(HMSI). It was introduced in India in 2006. It is a 125 cc motorcycle. Honda claimed
the Shine accelerated from 0 to 60 km/h (0 to 37 mph) in 5.30 seconds and had a top
speed of 95100 km/h (5962 mph).
Exchange Offer
Free gifts
1.3 USP
Extremely powerful engine and sporty design used in motorsports
23
HISTORY:The history of the Honda brand is nothing more than the history of our challenges and
achievements in creating values, invariably ahead of our time. It is also the history of
the dreams of each of our associates that have come true and have been shared by
people around the world.
The TVS group was established in 1911 by Shri. T. V. Sundaram Iyengar. As one
of Indias largest industrial entities it epitomizes Trust, Value and Service. It all
began way back in 1984 when Sundaram Clayton Li m i te d (A TVS Group
company) introduced its 50 CC mopeds in the arena of road racing, notching up
unbelievable speeds of 105 kmph. Since then, there has been no looking back
24
for TVS Motor Company. TVS Racing was established in 1987 with the
objective of improving the performance of its bikes. Over the years it has
provided valuable data, design inputs, development of reliable motorcycle
models, excellent vehicle dynamics & handling etc. The true evidence of it is
seen in today's TVS Victor and TVS Fiero. Today, there are over thirty companies
in the TVS Group, employing more than 40,000 people worldwide and with a
turnover in excess of USD 2.2 billion.
in
manufacturing
of
two-wheelers,
auto
components
and
TVS Motor Company Limited, the flagship company of the USD 2.2 billion
TVS Group, is the third largest two-wheeler manufacturer in India and among the
top ten in the world, with an annual turnover of over USD 650 million.
The year 1980 is one to be remembered for the Indian two-wheeler industry,
with the roll out of TVS 50, India's first two-seater moped that ushered in an era
of affordable p e r s o n a l t r a n s p o r t a t i o n .
For t h e Indian A u t o m o b i l e
25
1980
1984
1994
Introduced India's first catalytic converter enabled motorcycle, the 110 cc
1996
1997
2000
2001
Launched the revolutionary VT-I engine for the best in class mileage in
2004
2006
2007
TVS Flame, TVS Scooty Electric Vehicle and Three- wheeler TVS King
2008
Launched.
TVS MOTOR
26
Type
Founded
Headquarters
Key
Mr. venu srinivasan chairman
Products
Motorcycle,
mopeds,
ungeared
scooters,
components.
Revenue
Employees
5,633 (2007)
Website
www.tvsmotor.in
27
automotive
Bajaj Auto limited is onne of the largest two wheeler manufacturing coompany in
India apart from produciing two wheelers they also manufacture threee wheelers.
The company had started
ted way back in 1945. Initially it used to impo
port the two
wheelers from outside, but
bu from 1959 it started manufacturing of two w
wheelers in
the country. By the yearr 1970 Bajaj Auto had rolled out their 100,000t
00th vehicle.
Bajaj scooters and moto
or cycles have become an integral part of tthe Indian
milieu and over the yeaars have come to represent the aspirations oof modern
India. Bajaj Auto als
lso has a technical tie up with Kawasaaki heavy
industries of Japan to produce the latest motorcycles in India wh
which are of
world class quality The Bajaj
B
Kawasaki eliminator has emerged straight
ht out of the
drawing board of Kawasaaki heavy industries. The core brand values of B
Bajaj Auto
limited includes Learning
g, Innovation, Perfection, Speed and Transparenncy.
Bajaj Auto has three maanufacturing units in the country at Akurdi, W
Waluj and
Chakan in Maharashtra,, western India, which produced 2,314,787 vehicles
v
in
2005-06. The sales are
re backed by a network of after sales seervice and
maintenance work shops
Bajaj Auto has produccts which cater to every segment of the Inndian two
wheeler market Bajaj CT 100 Dlx offers a great value for money att the entry
level. Similarly
Bajaj
aj
Discover
125
offers
28
the
consumerr
great
PROFILE:-
FOUNDER
JAMUNALAL BAJAJ
Year of Establishment
1926
Industry
Business Group
BSE
Code:
500490;
NSE
Code:
BAJAJAUTO
Presence
Joint Venture
Akurdi
Pune - 411035
India
Tel.: +(91)-(20)-27472851
Works
rahulbajaj@bajajauto.co.in
Website
www.bajajauto.com
Table No. 4.2.1. Profile of Bajaj Auto Limited
29
COMPANY'S HISTORY
Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj
Trading Corporation Private Limited. It started off by selling imported twoand 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 vehicles and produced
and sold 1 million vehicles in a year.
About Us
Hero Moto Corp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest
manufacturer of two - wheelers, based in India. In 2001, the company achieved the
coveted position of being the largest two-wheeler manufacturing company in India
and also, the 'World No.1' two-wheeler company in terms of unit volume sales in a
calendar year. Hero Moto Corp Ltd. continues to maintain this position till date.
30
VISION
The story of Hero Honda
da began with a simple vision - the vision of a m
mobile and an
empowered India, powere
ered by its two wheelers. Hero MotoCorp Ltd., co
company's new
identity, reflects its com
mmitment towards providing world class mobi
bility solutions
with renewed focus on expanding
ex
company's footprint in the global arena
na.
MISSION
Hero MotoCorps missio
sion is to become a global enterprise fulfillingg its
i customers'
needs and aspirations for
fo mobility, setting benchmarks in technology
gy, styling and
quality so that it convert
erts its customers into its brand advocates.Thee ccompany will
provide an engaging env
nvironment for its people to perform to their true
rue potential. It
will continue its focus on value creation and enduring relationships withh iits partners.
31
STRATEGY
Hero MotoCorps key sstrategies are to build a robust product por
ortfolio across
categories, explore growth
gro
opportunities globally, continuously improve its
operational efficiency, aggressively
ag
expand its reach to customers, conti
ntinue to invest
in brand building activitie
ities and ensure customer and shareholder delight.
BRAND
The new Hero is rising
g aand is poised to shine on the global arena. Coompany's new
identity "Hero MotoCorp
rp Ltd." is truly reflective of its vision to strengt
gthen focus on
mobility and technologyy and creating global footprint. Building and pr
promoting new
brand identity will be central
ce
to all its initiatives, utilizing every opp
pportunity and
leveraging its strong presence
p
across sports, entertainment andd ground-level
activation.
32
MANUFACTURING
G
Hero Moto Corp. two wheelers
w
are manufactured across 3 globallyy benchmarked
manufacturing facilities.
s. Two
T of these are based at Gurgaon and Dharuhe
uhera which are
located in the state of Haryana in northern India. The third an
and the latest
manufacturing plant is based
ba
at Haridwar, in the hill state of Uttrakhand.
DISTRIBUTION
The Company's growth in the two wheeler market in India is the result
lt oof an intrinsic
ability to increase reachh in new geographies and growth markets. Hero
ro MotoCorps
extensive sales and servi
rvice network now spans over to 6000 customer
er touch points.
These comprise a mix of
o authorized dealerships, service & spare parts
rts outlets, and
dealer-appointed outletss aacross the country.
33
History
Hero is the brand name used by the Munjal brothers for their flagship company,
Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor
Company was established in 1984 as the Hero Honda Motors Limited at Dharuhera,
India. Munjal family and Honda group both owned 26% stake in the Company.
During the 1980s, the company introduced motorcycles that were popular in India for
their fuel economy and low cost. A popular advertising campaign based on the slogan
'Fill it Shut it Forget it' that emphasized the motorcycle's fuel efficiency helped the
company grow at a double-digit pace since inception. In 2001, the company became
the largest two-wheeler manufacturing company in India and globally. It maintains
global industry leadership till date. The technology in the bikes of Hero Moto.Corp
(earlier Hero Honda) for almost 26 years (19842010) has come from the Japanese
counterpart Honda.
Hero Honda Motorcycles Limited is an Indian manufacturer of motorcycles and
scooters. Hero Honda is a joint venture that began in 1984 between the Hero group
of India and Honda from Japan. It has been the world's biggest manufacturer
of 2- wheeled motorized vehicles since 2001, when it produced 1.3 million
motorbikes in a single year. Hero Honda's Splendor is the world's largest selling
motorcycle. Its 2 plants are in Dharuhera and Gurgaon, both in Haryana, India. It
specializes in dual use motorcycles that are low powered but very fuel efficient.
The company has sold over 47 million 2-wheelers since its inception in 1984 till
March 2013. It sold 6.07 million 2-wheelers in 2012, out of which 5.5 million were
motorcycles. Hero Moto.Corp sells more two wheelers than the second, third and
fourth placed two-wheeler companies put together. Its most popular bike Hero Honda
Splendor sells more than one million units per year.
In 2013, Hero MotoCorp registered best ever calendar year performance of more than
6.1 million unit sales. By selling 6.25 million units in the month of October, it became
the first-ever manufacturer to cross landmark 6 lakh unit sales in a month. In the last
quarter of the year or say in the festive season, the company sold more than 1.6
million units, while in non festive time in AprilMay 2013; it managed to sell out
quite good numbers of units- 1.1 million.
34
Termination of Honda joint venture:In December 2010, the board of directors of the Hero Honda Group had decided to
terminate the joint venture between Hero Group of India and Honda of Japan in a
phased manner. The Hero Group would buy out the 26% stake of the Honda in JV
Hero Honda.
Under the joint venture Hero Group could not export to international markets (except
Sri Lanka and Nepal) and the termination would mean that Hero Group can now
export. Since the beginning, the Hero Group relied on their Japanese partner Honda
for the technology in their bikes. So there are concerns that the Hero Group might not
be able to sustain the performance of the joint venture alone.
The Japanese auto major will exit the joint venture through a series of off market
transactions by giving the Munjal familythat held a 26% stake in the companyan
additional 26%. Honda, which also has an independent fully owned two-wheeler
subsidiaryHonda Motorcycle and Scooter India (HMSI)will exit Hero Honda at a
discount and get over $1 billion for its stake. The discount will be between 30% and
50% to the current value of Honda's stake as per the price of the stock after the market
closed on Wednesday.
The rising differences between the two partners gradually emerged as an irritant.
Differences had been brewing for a few years before the split over a variety of issues,
ranging from Honda's reluctance to fully and freely share technology with Hero
(despite a 10-year technology tie-up that expires in 2014) as well as Indian partner's
uneasiness over high royalty payouts to the Japanese company. Another major irritant
for Honda was the refusal of Hero Honda (mainly managed by the Munjal family) to
merge the company's spare parts business with Honda's new fully owned
subsidiary Honda Motorcycle and Scooter India (HMSI).
As per the arrangement, it will be a two-leg deal. In the first part, the Munjal family,
led by Brijmohan Lal Munjal group, will form an overseas-incorporated special
purpose vehicle (SPV) to buy out Honda's entire stake, which will be backed by
bridge loans. This SPV would eventually be thrown open for private equity
participation and those in the fray include Warburg Pincus, Kohlberg Kravis
Roberts (KKR), TPG, Bain Capital, and Carlyle Group.
35
Honda will continue to provide technology to Hero Honda motorbikes until 2014 for
existing as well as future models.
Formation of Hero Moto Corporation:The name of the company was changed from Hero Honda Motors Limited to Hero
Moto Corp Limited on July 29, 2011. The new brand identity and logo of Hero Moto
Corp were developed by the British firm Olins. The logo was revealed on 9 August
2011 in London, to coincide with the third test match between England and India.
Hero Moto Corp can now export to Latin America, Africa and West Asia. Hero is free
to use any vendor for its components instead of just Honda-approved vendors.
36
CHAPTER 5
OBJECTIVE AND
SCOPE OF THE STUDY
37
OBJECTIVES OF PROJECT
1.
2.
3.
4.
SCOPE
The project was based on the A COMPARATIVE STUDY OF CUSTOMER
38
C HA PT E R 6
RESEARCH
METHODOLOGY
39
RESEARCH METHODOLOGY
Introduction
Research methodology is a way to systematically solve the research problem, as
to how research is done scientifically. It consist of the different methods that
generally adopted by researcher to study his research problem along with logic behind
them. It is necessary for the researcher to develop certain tests.
Marketing research specifies the information required to address these issues; designs
the method for collection information manages and implements the data collection
process; analysis the results and communication the findings and their implication.
Research definition:
Research is careful inquiry or examination to discover new information and
relationship and to expand and to verify exiting knowledge,
Research always starts with questions or a problem. Its purpose is to find answer to
questions through the application of the scientific method. It is a systematic and
intensive study directed towards a more complete knowledge of the subject studies.
3. For the primary data collection, the researcher has preferred the survey method
to the other methods.
4. In the survey method, the researcher chose to undertaken field work. This is
because there is perception that in the geographical area in which he was to conduct
the survey, better and quicker data was possible to be collected only through direct
field work.
5. In
the
field
work,
instead
of
or
recorded
RESEARCH DESIGN
Research design is the plan, structure and strategy of investigation conceived so as to
obtain answer to research question and to control variance. - BY KERLINGER
The researcher after choosing the subject, company and the area to conduct his
research, decided to establish the theme or the important factor upon which the entire
project is to base.
At the outset, the objectives of the project were identified. Thereupon, the
conclusive research was undertaken upon consideration, the researcher chose the
statistical design as it suited the projects requirements. This method was warranted
as he had decided to embark upon a survey and the analysis and interpretation of the
findings of the surveys can only be done properly only if he chose the statistical
design.
RESEARCH PROBLEM:To know the consumer buying behavior & awareness about the HONDA bikes and in
the minds of consumer in Malegaon city, because always consumer say something and
does something. There are many companies manufacturing motorcycles into the
market, at the same time as there are many companies manufacturing motorcycles,
idea about thinking of customer on whether, what, how, and for whom to purchase the
motorcycle.
Therefore, research is required to measure present consumer buying behavior at the
purchase of hero bike. So the researcher problem is to identify what are the criteria
that prospective customer takes into consideration before buying the motorcycles.
At the outset may be noted that there are several ways of studying and tackling a
problem. There is no signal perfect design. The research design can be classified in to
true broad categories:
41
Exploratory
Descriptive
Casual
carried out to define problems and developed hypothesis to test later. An exploratory
study is generally based on the secondary data that are reading available. It does not
have to change his focus of direction, depending on the availability of new ideas and
relationship among variables.
can be complex, determining a high degree of scientific skill on the part of the
researcher.
The present study seeks to find out the consumers preference towards performance of
two wheelers bike. The study also aims at findings out the drawbacks of the marketing
set up of HONDAs two-wheeler bikes. So, this makes the study a descriptive one.
SOURCE OF DATA
The sources of data collection methods are as follows:a) Primary data:The primary data is that which details we collect first time from the market and also
used first time in the research. We also say that the information is first time in the
research decision. To collect the primary data questionnaire is prepared structure
non-disguise questionnaire is prepared.
42
b) Secondary data:Secondary data are those data which are already collected by someone for some
purpose and are available for the present study; secondary data are already collected
by the companys records and other librarys books. When the secondary data are
sufficient, the researcher has to be satisfied with the primary sources of data.
Secondary data can be used as bases for comparison with primary data have been
collected by questionnaire.
Secondary data: Magazines, Newspapers, Websites, Books, E-Journals.
Primary data i.e. collected for the first time. It is fresh and originally collected by the
survey. I have used only primary data in calculating the study and collect the data.
(A)Sampling Unit:It means Who is to be surveyed. Here target population is decided and it is who are
interested to purchase Bike and sampling frame is developed so that everyone in the
target population has known chance of being sampled. So the survey is conducted
particularly in MALEGAON City.
(B)Sample size:For the purpose of proper survey, there is need of perfect research instruments to find
out sample size for more accurate result about buying preference of bike.
These were 100 respondents.
43
(C) Sampling Method:A Stratified random sample is one where the population is divided in to mutually
exhaustive strata or sub-group and then a simple random is selected within each of
strata on age groups, occupation etc. It may be noted that stratification does not means
absence of randomness. Here the researcher has used a simple random sampling
method.
Period of study
The period of the study for this is two months i.e.15-May to 14-July.
Data Collection :The data will be collected from the respondents using questionnaire by personal
interview.
44
The questionnaire includes the entire relevant question so as to provoke and elicit
the data from the respondents in a brief manner.
There are some open ended questions which are incorporated in the questionnaire.
The reason behind this is to get the subjective data which if otherwise put in the
form of a close ended form would not elicit the answer in a proper form.
SIMPLE PERCENTAGE METHOD:Percentage refers to a special kind of ratio. Percentages are used in making
comparison between two or more series of data. Percentages are used to describe
relationships. Percentage can also be used to compare the relative terms, the
distribution of two (or) more series of data.
% of respondents = No. of respondents Total respondents 100
ARITHMETIC MEAN:Arithmetic mean, average, or mean is the sum of all items divided by the number of
items. The weighted value mean is most frequently used in marketing research analysis.
CHI- SQURE ANALYSIS:Chi-square test is a non- parametric test. It is used most frequently by marketing
45
CORRELATION ANALYSIS:Correlation analysis is the statistical technique that is used to describe not only the
degree to which are variable is related to another, but also the direction the
influence. The coefficient of correlation measures the mutual relationship between
two variables. A simple correlation between two variables only and it is usually
represented.
The simple correlation indicted whether the change in one variable influences
the change in the other variable. Not that the changes may likely to occur in both
directions namely:1. The increase in one variable is accompanied by the proportionate increase in
the other variable.
2. The increase in one variable causes the proportionate decrease in the other variable.
In the first cast the variable are said to be positively correlated, while in the second
case, the variable are said to be negatively correlated.
BAR DIGAMS:Bar diagram consist of bars running either horizontally or vertically with an
individual bar for each observation. The individual bars have separate observations
and magnitudes. They serve the purpose of showing the rate of change in continuous
data. More than two series of data may be depicted by the use of bar diagrams.
The positive and negative quantities also are demonstrated with bar diagram.
PIE DIAGRAMS:The pie diagram is presented in a circle dividing the chart in different
components according to the need of the distinctive data. The slices of the circle are
also noted with the name and their percentage share in the total circle of 360 degree.
46
2 Dichotomous questions :It has only two answers in form yes or n, true or false, use or do not use. So
the respondent is offered two or more choice
47
CHAPTER 7
DATA ANALYSIS &
INTERPRETEATION
48
DATA ANAL
ALYSIS & INTERPRETA
ATION
Q1) Which companys two-wheeler
tw
bikes do you have?
Com
mpany
Users
HER
RO
25
BAJA
JAJ
25
HON
NDA
25
TVS
S
25
Tabl
ble no. 7.01 Owners of different bikes
No. of Respondents
Respond
ndent's Ownership of Different Bikes
30
20
10
0
HERO
BAJAJ
HONDA
TVS
Name
Na
of two-wheere companies
Graph no.1
o.1 Respondent's Ownership of Different Bikes
49
Hero
ro
TVS
Honda
Bajaj
18-25
11
25-40
13
40-55
Above 55
Total
25
25
25
25
25-40
40-55
Above 55
2
8
3
13
11
3
Hero
TVS
Honda
Bajaj
Gra
raph No. 2 Age-Wise Users of Bikes
Interpretation:
Hero
No.
B
Bajaj
No.
TVS
No.
Hond
nda
No.
Splendour+ 7
C 100
CT
10
Flame
Activ
tiva
CD Deluxe
D
Discover
Star city
Drea
eam
Yuga
ga
Passion
pu
pulsar
Apache
Shine
ine
CBZ
X
XCD
Jive
Unico
icorn 3
Other
O
Other
Other
Othe
her
Pro
Table no.
no 7.03 Respondents using different models
Respond
ndents using different models of Hero Bikes
Splendou
dour+
CD Deluxe
Passion Pro
12%
CBZ
Other
28%
8%
20%
32%
INTERPRETATION
N: For Hero Bikes most of
o the customers have CD Deluxe, while the
he ratio of the
customers using Passion
on pro, Splendour +, CBZ and other bikes are ccomparatively
low. The reason behind CD
C Deluxe being famous is its good mileage
Res
espondents using different models of Bajaj Bikes
XCD
12%
Other
4%
CT 100
40%
pulsar
24%
Discover
20%
INTERPRETATION
N: In Bajaj the customers are
a giving more preference to CT100, Pulsarr aand Discover
models, because the mode
odels have good pickup and good mileage.
52
No. Of Respondents
Respond
ndents using different models of TVS Bikes
10
5
0
INTERPRETATION
N:In TVS Bikes the custom
mers are giving more preference to the other models
m
rather
than Flame, Star city Jive
ve and Apache.
No. of Respondents
Responde
dents using different models of Honda Bikes
10
Different
D
Models of Honda Bikes
Interpretation: - In Honda
H
Bikes the customers are giving more prefference to the
Activa and Shine models
ls rather than Dream Yuga, Unicorn and Others
53
Respondents
Belo
low 2 lac.
10
20000
000-400000
49
40000
000-600000
31
Above
ove 600000
10
Ta
able no. 7.04 - Income level of respondents
No. Of People
Income Group
50
40
30
20
10
0
Income Of people
INTERPRETATION
N: The maximum numberss of
o customers that are using these bikes fall in the
he income
group of 200000-400000 & 400000-600000. While this ratio is minimum
um in case of
customers whose income level fall below 200000 because they cant affo
fford such bikes
and the preference levell for
f such bikes lowers from 600000 & above ass th
they prefer
four wheelers.
54
Respondents
0-2ye
year
34
2-5 year
ye
29
5-7 year
ye
26
Abovee 7 year
11
Table
le No. 7.05 Customers using bikes since..
Custo
ustomers Using Bikes Since...
0-2y
2year
2-5 year
5-7 year
Above 7 year
11%
34%
26
26%
29%
Grap
aph No. 8 Customers using bikes since
INTERPRETATION
N: It is observed that mostly
y the customers are having new bikes. This is bbecause the
customers are attracted towards
t
new bikes with add on features & doo not prefer
using one bike for moree than
th two years.
55
Hero
Bajaj
Honda
TVS
Score
Office purpose
20
Personal
12
29
22
Joy purpose
11
Other
18
Total
25
25
25
25
100
purpose
Educational
Purpose
He
Hero
Baj
Bajaj
Ho
Honda
TVS
56
INTERPRETATION:The customers are using their bikes mostly for official, educational and
personal purpose.
People preferring bikes for office purpose are seen highest in TVS, i.e. 8. People
preferring bikes for personal purpose are seen highest in Bajaj, i.e. 12. People
preferring bikes for joy purpose are seen highest in Hero, i.e. 5. People preferring
bikes for educational purpose are seen highest in TVS, i.e. 8. People preferring bikes
for other purpose are seen highest in Honda i.e. 6.
57
Hero
Bajaj
Honda
TVS
Score
Newspaper
24
Television
10
12
37
Internet
16
15
Other
Total
25
25
25
25
100
15
10
5
0
Her
Hero
Baja
Bajaj
Hon
Honda
TVS
Graph No.. 10
1 How did customer get to know about bikes?
es?
INTERPRETATION
N: - It is observed that the awareness of Hero,, T
TVS & Honda
bikes mostly comes from
om Television and Newspaper, while for Bajaj; tthe awareness
comes from internet and
d television.
t
58
RESPONDENTS
Yes
65
No
19
Cant say
16
Influenc
enced by Advertisement or not?
Yes
No
Cant say
16%
19%
65%
INTERPRETATION
N: Out of the samplee size of 100 customers, 65 customers agree wi
with the fact
that advertisements play
y a very significant role in influencing their bbehavior to
choose the bike. On thee other
o
hand 19 customers do not agree to thiss ffact. While
remaining 16 customerss aare not sure about it.
59
Q8) Are you satisfied with the performance of the bike that you are currently
having?
ANSWERS
RESPONDENTS
Yes
59
No
34
Cant say
07
Yes
59%
INTERPRETATION:Out of the sample size of 100 customers, 59 customers say that they are
satisfied with the performance of their bikes. On the other hand 34 customers are
not satisfied with the performance of the bikes that they are having, while the
remaining 7 customers are unable to say anything.
60
Hero
Bajaj
Honda
TV
TVS
Yes
1
19
16
21
15
No
Cant say
25
20
Hero
15
Bajaj
Honda
10
TVS
5
0
Yes
No
Cant
say
INTERPRETATION
N:It is observed that
hat most of the customers are having full knowleedge of the
bike before purchasing.
61
Hero
o
Bajaj
TVS
Honda
Price
Mileage
15
Resale Value
12
Status symbol
Quality
2
5
T
Table
No. 7.11 Influencing Factors of Bikes
Hero Bikes Influencing Factor
15
10
Status
Quality
Mileage
Price
Resale
Grap
aph No. 14 Hero Bikes Influencing Factor
INTERPRETATION
N: - In Hero bikes the mileage of the bike aand the resale
value that it adds influencces the decision criteria of most of the customers
rs.
62
mileage
60%
Graph
ph No. 15 Bajaj Bikes Influencing Factor
INTERPRETATION
N: In Bajaj bikes customers
rs gets more influenced by the quality and mile
ileage of the
bike and also they thinkk that
th it adds value to their prestige.
8
5
3
Price
Mileage
Quality
Resale
Value
Status
Symbol
Graph
Gr
No. 16 TVS Bikes influencing factor
INTERPRETATION
N: - In TVS bike the economic price off the bikes
influences the buying beh
havior of the customers.
63
mileage
Quality
Resale
Value
Status
Symbol
Influencing Factors
Interpretation: In Honda Bikes, the factors that influence the consumer buying behavior are Quality,
Resale Value and Status Symbol.
64
Q11) How will you rate your bikes performance with respect to following
attributes?
Give the points as follows:-
Worst
Worse
Bad
-2
-1
-3
Neutral Good
Better
Best
ATTRIBUTES
AVERAGE
POINTS
FOR HERO
AVERAGE
POINTS
FOR BAJAJ
AVERAGE
POINTS
FOR TVS
AVERAGE
POINTS FOR
HONDA
Mileage
Price
-2
Pick-up
Maintenance
-2
-1
Brand Image
-1
65
POINTS GIVE
EN BY CUSTOMERS FOR ATTRIBUTES
OF BIKES
8
7
6
5
4
3
2
1
0
-1
-2
AVERAGE ASSOCIST
ISTION
FACTOR FOR HOND
DA
AVERAGE ASSOCIST
ISTION
FACTOR FOR TVS
AVERAGE ASSOCIST
ISTION
FACTOR FOR BAJAJ
AJ
AVERAGE ASSOCIST
ISTION
FACTOR FOR HERO
INTERPRETATION
N: It is observed that in rating
r
of different features of different bikes
es people give
maximum rating to the look
lo shape, Brand Image and Pickup of the HOND
NDA & HERO
bikes. At the second lev
evel they give their maximum rating to the mile
ileage of Bajaj
Bikes. Most of the custom
omers are dissatisfied with their TVS bikes.
66
Yes
No
Cant say
Heero
Bajaj
TVS
10
13
14
12
Honda
10
13
5
3
Table No. 7.13 Bike Changing decision
Honda
20
TVS
Bajaj
10
Hero
0
Yes
No
Cant
say
INTERPRETATION
N: - It is observed that the customers of Hero, B
Bajaj & Honda
bikes are not ready to chaange their bikes even if a new bike comes in with
ith good
features. While majority of
o the customers of TVS are ready to change theeir bikes if
new bike provides some good
g
features to them.
67
CHAPTER 8
OBSERVATIONS FROM
THE STUDY
68
OBSERVATIONS:1. The maximum numbers of customers that are using these bikes fall in the income
group of 200000-400000 & 400000-600000. While this ratio is minimum in case
of customers whose income level fall below 200000 because they cant afford
such bikes and the preference level for such bikes lowers from 600000 & above as
they prefer four wheelers.
2. Out of the sample size of 100 customers, 59 customers say that they are satisfied
with the performance of their bikes. On the other hand 34 customers are not
satisfied with the performance of the bikes that they are having. While the
remaining 7 customers are unable to say anything.
3. In Hero bikes the mileage of the bike and the resale value that it adds influences
the decision criteria of most of the customers. In Bajaj bikes customers gets more
influenced by the quality and mileage of the bike and also they think that it adds
value to their prestige. In TVS bike the economic price of the bikes influences the
buying behavior of the customers. In Honda Bikes, the factors that influence the
consumer buying behavior are Quality, Resale Value and Status Symbol.
5. It is observed that the customers of Hero, Bajaj & Honda bikes are not ready to
change their bikes even if a new bike comes in with good features. While majority
of the customers of TVS are ready to change their bikes if new bike provides
some good features to them
69
CHAPTER 9
CONCLUSIONS
70
CONCLUSIONS
1. Most of the Apache, Pulsar & Shine are purchased by young generation 18
to 25 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.
3. Service & Spare parts of Honda Bikes are available throughout India in local
markets also.
5. Majority of the respondent had bought their motorcycle more than 2 years.
71
CHAPTER 10
SUGGESTIONS
72
SUGGESTIONS
1.
Honda should introduce some more models having more engine power.
2.
Honda should think about fuel efficiency in case of upper segment bikes.
3.
4.
Maintenance cost and the availability of the spare parts should also be
given due importance.
5.
6.
73
CHAPTER 11
REFERENCES
74
REFERENCES
Bibliography
Kotler, Philip (1999) Marketing Management Millennium Edition, Prentice
Hall, New York.
Kothari, C (2005) Research Methodology New age publisher, New Delhi.
Magazines
Business Today and India Today
Webliography:
1. www.heromotocorp.com
2. www.world.honda.com
3. www.bajajauto.com
4. www.extrememachines.com
5. www.tvsmotors.in
6. www.honda2wheelersindia.com
7. www.business-standard.com
75
QUESTIONNAIRE
A comparative study on customer satisfaction towards
performance of Hero, Bajaj, Honda & TVS Bikes
I.
2. Gender:
3. Age Group
F
: (A)18 to 25
(B)25 to 40
(C) 40 to 55
4. Occupation
(D) Above 55
: Businessman
Govt. Employee
Private Employee
Retired
Farmer
Student
2,00,000-4,00,000
4, 00,000-6, 00,000
II.
Above 6, 00,000
BAJAJ
HONDA
TVS
CD Deluxe
Passion Pro
BAJAJ: -
Discover
Pulsar
CT 100
HONDA: - Activa
TVS: -
Flame
Dream Yuga
Apache
CBZ
XCD
Shine
Star city
Other
Other
Unicorn
Jive
Other
Other
2 year 5 year
5 year 7 year
76
Above 7 year
Television
Internet
Friends / family
other
personal
Enjoyment
Education
Other
6. Which source did you use to purchase a these two wheelers bike?
Cash
Bank loan
Friend / Relative
Instalments
7. How will you rate your bikes performance with respect to following attributes:Give the points as follows:Worst
Worse
-3
-2
Bad
Neutral Good
-1
Better
Best
POINTS
ATTRIBUTES
A Mileage
B Price
C Pick-up
D Maintenance
E Look / shape
F Brand image
8. Give the proper rank from 1 to 4 for the below given different two-wheeler companies of
bikes for choice preference as per your views?
(A)HERO_____
(C) HONDA_____
(D) TVS_____
9. If new bike with good features come in, then would you like to change your bikes?
Yes
No
cant say
77
10. From the following factors given below, tick the foremost important factor which
influenced your decision while purchasing a bike?
Price
mileage
Quality
Resale value
Status
No
Cant say
BAJAJ
HONDA
TVS
13. For the following criteria answer these question based upon your experience about these
two wheeler bikes. Tick the most appropriate answer as per your views in the block.
Strongly
Agree
A
78
Agree
Natural
Disagree
Strongly
Disagree