DISSERTATION PROJECT REPORT

ON
COMPARATIVE STUDY OF CUSTOMERS PERCEPTION
FOR HONDA & YAMAHA BIKES

Submitted in partial fulfillment for the award of

Masters of Business Administration

Submitted By
Singh Shatrudra
MBA (II Year)
Roll No- 140251109
Batch 2014-16

Under the Supervision of

Prof. Anoop Pant

SHARDA UNIVERSITY
SCHOOL OF BUSINESS STUDIES

1
 DECLARATION

I hereby declare that the dissertation report entitled “Comparative Study of

Customers Perception for Honda & Yamaha Bikes” submitted by me for the
partial fulfillment of the MBA to Sharda University, Greater Noida is my own
original work and has not been submitted earlier either to Sharda University or
to any other Institution for the fulfillment of the requirement for any course of
study. I also declare that no chapter of this manuscript in whole or in part is
lifted and incorporated in this report from any earlier / other work done by me
or others.

Singh Shatrudra
MBA (II Year)
Roll No- 140251109
Batch 2014-16

Place :

Date :

2
 ACKNOWLEDGEMENT

I would like to gratefully acknowledge the contribution of all the people who took
active part and provided valuable support to me during the course of my dissertation
report.

I would like to offer my sincere thanks to Prof. Anoop Pant, Faculty Guide for his
valuable guidance and support at all time.

I am grateful to all those people who provided me the best information throughout my
dissertation report completed at time.

Singh Shatrudra
MBA (II Year)
Roll No- 140251109
Batch 2014-16

3
 PREFACE

Research is necessary part for fulfillment of MBA course. The emphasis in the RESEARCH
is providing the study and an insight into Indian Telecommunication business scenario The
RESEARCH is designed to provide participation of MBA program as on the Job experience.
This gave me a chance to try and apply the academic knowledge and gain insight into
corporate culture. This helps in developing decision making abilities and emphasizes on
active participation by the students. I worked on the topic “to study of consumer perception
of about two wheeler HONDA & YAMAHA bikes. I gained valuable experience &
knowledge during the survey. The RESEARCH consists of my findings given in tabulation
of collected data, their analysis and conclusion were drawn and finally suggestions were
putted forward.

4
 TABLE OF CONTENTS

Chapter Contents Page No.

Chapter No. Chapter.-1. INTRODUCTION 06
a) OBJECTIVE
b) THEORETICAL FRAMEWORK
c) COMPANY PROFILE
d) Corporate profile
Chapter-2 LITERATURE REVIEW 25

Chapter-3 RESEARCH METHODOLOGY 27

 Research problem and objective
 Research process
 Research design

Chapter-4 DATA COLLECTION AND 30

INTERPRETATION
 GRAPHICAL DATA ANALYSIS
AND INTERPRETATION

Chapter-5 FINDING OF THE RESEARCH 49

LIMITATION 50
51
RECOMMENDATION
52
CONCLUSION

BIBLIOGRAPHY 53
Annexure-1 54
QUESTIONNAIRE

5
 CHAPTER-1
INTRODUCTION

Research means detailed study of a problem. Here, the details of the marketing problem
are collected and studied, conclusions are drawn and suggestions are made to solve the
problem quickly, correctly and systematically. In MR, specific marketing problem is
studied in depth by collecting and analyzing all relevant information and solution are
suggested to solve the problem which may be related to consumers, product, market
competition, sales promotion and so on.
MR is special branch of marketing management. It is comparatively of recent in origin.
MR acts as an investigative arm of a marketing manager. It suggests solution on marketing
problem for the consideration and selection by a marketing manager. MR also acts as an
important tool to study buyer behaviors, changes in consumer life-style and consumption
patterns, brand loyalty and forecast market changes.

In brief, MR facilitates accurate marketing decisions for consumer satisfaction on the one
hand and sales promotion on the other hand. It is rightly treated as the soul of modern
marketing management. MR suggests possible solution on marketing problem to
marketing manager for his consideration and final selection. It is rightly said that the
beginning and end of marketing management is marketing research. It is primarily used to
provide information needed to guide marketing decision, market mix. It acts as a support
system to marketing management.

INCREASING NEED OF MARKETING RESEARCH

1) For decision making. MR is needed as a tool for reasonably accurate decision making
in the present highly competitive market system.
2) Growth and complexity of markets: - Markets are no more local in character. They
are now national and even global in character. The marketing activity is becoming
increasingly complex and broader in scope as more firms operate in domestic and global
markets. Manufactures find it difficult to establish close contact with all markets and
consumers directly. Similarly, they have no control on the marketing system once the
goods are sold out to middlemen. This situation creates new problem before the

6
manufacturers which can be faced effectively through MR as it acts as a feed-back
mechanism to ascertain first hand information, reaction, etc. of consumers and middleman.
Marketing activities can be adjusted accordingly.
3)Wide gap between producers and consumers: - marketing research is needed as there
is a wide gap between producers and consumers in the present marketing system. Due to
mass scale production and distribution, direct contact between producers and consumers.
Producers do not get dependable information as regards needs, expectation and reactions
of consumers; they are unable to adjust their products, packaging, prices, etc. as per the
needs of consumers. The problem created due to information gap can be solved only
through MR as it possible to establish contact with consumers and collect first hand
information about their needs, expectation, likes, dislikes, preferences and special features
of their behavior. Thus, MR is needed for removing the wide communication gap between
producers and consumers.

4)Changes in the composition of population and pattern of consumption: - In India,

many changes are taking place in the composition of population. There is a shift of
population from rural to urban areas. There have been considerable changes in the
consumption and expenditure patterns of consumers in India. The incomes of the people,
in general, are rising. This brings corresponding increase in their purchasing capacity and
buying needs and habits. The demand for consumer durables is fast increasing. The market
are now flooded with consumer durables like TV sets and so on. Manufacturers are
expected to know such qualitative and quantitative changes in the consumer preferences
and their consumption pattern. For achieving this objective, MR activities are necessary
and useful. In brief, MR is needed for the study of changes in the pattern of consumption
and corresponding adjustment in the marketing planning, policies strategies.

5)Growing importance of consumers in marketing:-Consumers occupy key position in

modern marketing system. They are now well informed about market trends, goods
available, consumer rights and protection available to them through consumer protection
acts, the growth of consumerism has created new challenges before manufacturers and
traders. Even growing customer expectations create situation when manufacturers have to
understand such expectations and adjust the production policies accordingly. Indifference
towards consumer expectations may lead to loss of business. In the present marketing

7
system, consumers cannot be taken for granted. Marketing research particularly consumer
research gives valuable data relating to consumers. It is possible to use such data fruitfully
while framing marketing policies. Thus, marketing decisions can be made pro consumer
through marketing research activities.

6)Shift of competition from price to non-price factors: - Cut-throat competition is

unavoidable in the present marketing field. Such competition may be due to various
factors such as price, quality, and packaging, advertising and sales promotion techniques.
Entry of new competitors creates new problems in the marketing of goods and services. In
addition, market competition is no more restricted to price factor alone. There are other
non-price factors such as packaging, branding, after-sales and advertising which create
severe market competition. Every producer has to find out the extent of such non-price
competition and the manner in which he can face it with confidence. MR is needed as it
offers guidance in this regards. A manufacturer can face market competition even by using
certain non-price factors. The shifting of competition from price to non-price factors has
made marketing of consumer goods more complicated and challenging. This challenge can
be faced with confidence by using certain measures through marketing research.

8
 OBJECTIVES OF THE STUDY

The research was carried out to find factors which influence customer satisfaction level to
maximum level. The study projects that customer satisfaction level change with change in
various factors like during sales evaluation, during delivery of the vehicle and after sales
evaluation. This research is an attempt to provide feedback to Motorcycle manufacturer
Honda & Yamaha Motors India Ltd. so that they can bring about changes in various
departments of their organization which will help them in becoming Number 1 motorcycle
brand in India.
For instance during research factors such as technology, maintenance, looks, style, brand
image, behavior of dealers, timely delivery of documents and bike and proper information
about the product were considered.

This research would give necessary details to Honda & Yamaha motors so that it could
know the various factors that affect customer satisfaction level and then initiate
appropriate changes to make it Number 1 motorcycle brand in India.

9
 THEORETICAL FRAMEWORK

This Research is done through students & individual consumer survey under the title “To
study of consumer perception of about two wheeler HONDA & YAMAHA Bikes”.

For preparing this Research we went to many students & individual consumer of Greater
Noida. We collected information of customers consuming various services provided by
different two wheeler provider.

We check the response of customer about the services which are used by them on using the
questioner. After all we create a daily survey report and listed the total students & individual

Consumer located in greater Noida which are surveyed. And then analyses the data which
was collected from market and then come to the conclusion on the basis of that analyses data
and information. After all it becomes possible to make a meaningful and useful Research
report.

We have used information from internet. How to made questionnaire? This is done by
reading the various books i.e. Research Methodology-R.C. Kothari, Market Research-
Mehrotra etc. we discussed with my guide MR. Ravi Karan Sir and then I started work On
this topic.

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 CPOMPANY ROFILE

Honda Motor Co., Ltd., operates under the basic principles of "Respect for the Individual"
and "The Three Joys"-commonly expressed as The Joy of Buying, the Joy of Selling and The
Joy of Creating. Respect for the Individual" reflects our desire to respect the unique character
and ability of each individual person, trusting each other as equal partners in order to do our
best in every situation. Based on this foundation of Respect for the Individual, "The Three
Joys" expresses our belief and desire that each person working in, or coming into contact
with our company, directly or through our products, should share a sense of joy through that
experience.

In line with these basic principles, since its establishment in 1948, Honda Motor Co., Ltd.,
has remained on the leading edge by creating new value by providing products of the highest
quality at a reasonable price, for worldwide customer satisfaction. In addition, the Company
has conducted its activities with a commitment to protecting the environment and enhancing
safety in a mobile society. The Company has grown to become the world's largest
motorcycle manufacturer and one of the leading automakers. With a global network of 454*
subsidiaries and affiliates accounted for under the equity method, Honda develops,
manufactures and markets a wide variety of products ranging from small general-purpose
engines and scooters to specialty sports cars, to earn the Company an outstanding reputation
from customers worldwide.

Mission Statement
Maintaining a global viewpoint, we are dedicated to supplying products of the highest
quality at a reasonable price for worldwide customer satisfaction.

11
 SWOT ANALYSIS

Strength

 Reliable brand name

 Affordable price
 Honda have a big share of market in scooters segment
 Honda is the first company who introduced the technology of central shock absorption
in India
 Honda having high tech engines
 HMSI is the subsidiary company of Honda Motors Ltd. Which is the largest company
in the proposed sector
Weakness

 Less number of service center

 Market share very less as compare to there competitor
 Spares parts are not easily available
 Low product range
 Maintenance cost is very high

Opportunity

 Increase in product range

 Untapped market above 180 cc in motorcycles.
 More maturity and movement towards higher-end motorcycles
 Honda can be use brand image of Hero Honda

Threats

 There is high competition in the market

 Threat of cheap imported motorcycles and components from China

12
PRODUCT RANGE:

SCOOTERS:

 DIO

 ACTIVA

 AVIATOR

MOTORCYCLES:

 CB TWISTER

 SHINE

 CBF STUNNER

 UNICORN

 CBF STUNNER PGM FI

 CB1000R

 CBR1000RR

13
 COMPANY PROFILE

About Yamaha motors India sales Pvt. Ltd.

Yamaha made its initial foray into India in 1985. Subsequently, it entered into a 50:50
joint venture with the Escorts Group in 1996. However, in August 2001, Yamaha acquired
its remaining stake as well, bringing the Indian operations under its complete control as a
100% subsidiary of Yamaha Motor Co., Ltd, Japan.

India Yamaha Motor operates from its state-of-the-art-manufacturing units at Faridabad in

Haryana and Surajpur in Uttar Pradesh and produces motorcycles both for domestic and
export markets. With a strong workforce of 2000 employees, India Yamaha Motor is
highly customer-driven and has a countrywide network of over 400 dealers.

aJapanese motorized vehicle-producing company (whose HQ is at 2500 Shingai, Iwata,

Shizuoka), is part of the Yamaha Corporation. After expanding Yamaha Corporation into
the world's biggest piano maker, then Yamaha CEOGenichi Kawakami took Yamaha into
the field of motorized vehicles on July 1, 1955. The company's intensive research into
metal alloys for use in acoustic pianos had given Yamaha wide knowledge of the making
of lightweight, yet sturdy and reliable metal constructions. This knowledge was easily
applied to the making of metal frames and motor parts for motorcycles. Yamaha Motor is
the world's second largest producer of motorcycles (after Honda). It also produces many
other motorized vehicles such as all-terrain vehicles, boats, snowmobiles, outboard
motors, and personal watercraft.

The Yamaha corporate logo is comprised of three tuning forks placed on top of each
other in a triangular pattern.

In 2000, Toyota and Yamaha Corporation made a capital alliance where Toyota paid
Yamaha Corporation 10.5 billion yen for a 5 per cent share in Yamaha Motor
Company while Yamaha and Yamaha Motor each bought 500,000 shares of Toyota stock
in return.

14
RACING HERITAGE

Yamaha has a long racing heritage where it has had its machines and team win many
different competitions in many different areas, for example both road and off road
racing, also Yamaha has had great success with riders such as Bob Hannah,
HeikkiMikkola, Kenny Roberts, Chad Reed, Jeremy McGrath, Stefan Merriman,
Wayne Rainey, and the latest, Valentino Rossi. Yamaha is known to those who are
older in age as the designer of the modern motocross bike, as they were the first to build
a production mono-shock motocross bike (1975 for 250 and 400, 1976 for 125) and one
of the first to have a water-cooled motocross production bike (1981, but 1977 in works
bikes).

Since 1962 ,Yamaha produced production road racing grand prix motorcycles that any
licensed road racer could purchase. In 1970, Non-factory "privateer" teams dominated
the 250cc World Championship with Great Britain’s Rodney Gould winning the title on
a Yamaha TD2.

15
 SWOT ANALYSIS

Strengths:

 Yamaha Motor products extend from land to sea and even into the skies, with
manufacturing and business operations that include everything from motorcycles,
PSA electro-hybrid bikes, marine and power products to automotive engines.

 Continuously does product improvement in accordance with demanding customers.

 The distribution network of Yamaha Motors is very wide and spread across the
country.

 Probably the best in terms of R&D facility.

 Has great brand name and commands lot of respect among bikers community.

Weakness:

 Narrow product line in terms of motorcycles.

 Yamaha’s strategy for Indian market was on right alleyway, but somewhere down the
lane, they are still relying on conventional model which no longer in use.

 Yamaha despite the promise has failed to deliver and is still an underdog in the race to
top.

 A series of unsuccessful and flop bikes have eroded the legacy of RX100 and RD350.

Opportunities:

 The motorcycle market has been growing at a phenomenal rate and there has been a
shift in the consumer preferences from 2 stroke bikes. Yamaha motors have
recognized this and are bringing out new models of 4 stroke bikes quite regularly to
cater the needs of the customers.

16
  Consumers have become technology conscious and Yamaha Motors have best R&D
facilities. So they can tap new costumers with innovative technology in motorcycle
design and manufacturing.

 There lies lot of potential in 150cc and above segment and Yamaha has not made
enough inroads in this segment.

Threats:

 Continuous divisions of customer segment have made conventional bikes which was
the strength of Yamaha motors.

 Constant demand for price reduction from customers.

 Bajaj Auto and TVS have taken large part of the market share from Yamaha.

 Growing competition in the industry, both in the terms of new models and price
undercutting, too is a matter of concern as both the sales realization and operation
margins may come under pressure.

17
 CORPORATE INTRODUCTION
MARKET CHARACTERISTICS
DEMAN SEGMENTAL CLASSIFICATION AND CHARACTERISTICS

The three main product segments in the two-wheeler category are scooters, motorcycles
and mopeds. However, in response to evolving demographics and various other factors,
other sub segments emerged, viz. scooters, gearless scooters, and 4-stroke scooters.
While the first two emerged as a response to demographic changes, the introduction of
4-stroke scooters has followed the imposition of stringent pollution control norms in the
early 2000. Besides, these prominent sub-segments, product groups within these sub-
segments have gained importance in the recent years. Examples include 125cc
motorcycles, 100-125 cc gearless scooters, etc. The characteristics of each of the three
broad segments are discussed in Table 1.

Two-Wheelers: Comparative Characteristics

Scooter Motorcycle Moped

Price*(Rs. as in
> 22,000 > 30,000 > 12,000
January 2008)

2-stroke, 4- Mainly 4-
Stroke 2-stroke
stroke stroke

Engine Capacity
90-150 100, 125, > 125 50, 60
(cc)

Ignition Kick/Electronic Kick/Electronic Kick/Electronic

Engine Power
6.5-9 7-8 and above 2-3
(bhp)

Weight (kg) 90-100 > 100 60-70

Fuel Efficiency
50-75 50-80+ 70-80
(km per litre)

Load Carrying High Highest Low

18
Segmental Market Share

The Indian two-wheeler industry has undergone a significant change over the past 10
years with the preference changing from scooters and mopeds to motorcycles. The
scooters segment was the largest till FY1998, accounting for around 42% of the two-
wheeler sales (motorcycles and mopeds accounted for 37% and 21 % of the market
respectively, that year). However, the motorcycles segment that had witnessed high
growth (since FY1994) became larger than the scooter segment in terms of market
share for the first time in FY1999. Between FY1996 and 9MFY2007, the motorcycles
segment more than doubled its share of the two-wheeler industry to 79% even as the
market shares of scooters and mopeds stood lower at 16% and 5%, respectively.
Over the past 10-15 years the demographic profile of the typical two-wheeler customer
has changed. The customer is likely to be salaried and in the first job. With a younger
audience, the attributes that are sought of a two-wheeler have also changed. Following
the opening up of the economy and the increasing exposure levels of this new target
audience, power and styling are now as important as comfort and utility.
The marketing pitch of scooters has typically emphasized reliability, price, comfort and
utility across various applications. Motorcycles, on the other hand, have been
traditionally positioned as vehicles of power and style, which are rugged and more
durable. These features have now been complemented by the availability of new
designs and technological innovations. Moreover, higher mileage offered by the
executive and entry-level models has also attracted interest of two-wheeler customer.
Given this market positioning of scooters and motorcycles, it is not surprising that the
new set of customers has preferred motorcycles to scooters. With better ground
clearance, larger wheels and better suspension offered by motorcycles, they are well
positioned to capture the rising demand in rural areas where these characteristics matter
most.

Scooters are perceived to be family vehicles, which offer more functional value such as
broader seat, bigger storage space and easier ride. However, with the second-hand car
market developing, a preference for used cars to new two-wheelers among vehicle
buyers cannot be ruled out. Nevertheless, the past few years have witnessed a shift in
preference towards gearless scooters (that are popular among women) within the
scooters segment. Motorcycles offer higher fuel efficiency, greater acceleration and

19
more environment-friendliness. Given the declining difference in prices of scooters and
motorcycles in the past few years, the preference has shifted towards motorcycles.
Besides a change in demographic profile, technology and reduction in the price
difference between motorcycles and scooters, another factor that has weighed in favour
of motorcycles is the high re-sale value they offer. Thus, the customer is willing to pay
an up-front premium while purchasing a motorcycle in exchange for lower maintenance
and a relatively higher resale value.

Supply Manufacturers

As the following graph indicates, the Indian two-wheeler industry is highly

concentrated, with three players-Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd
(Bajaj Auto) and TVS Motor Company Ltd (TVS) - accounting for over 80% of the
industry sales as in FY2007. The other key players in the two-wheeler industry are
Kinetic Motor Company Ltd (KMCL), Kinetic Engineering Ltd (KEL), LML Ltd
(LML), Yamaha Motors India Ltd (Yamaha), Majestic Auto Ltd (Majestic Auto), Royal
Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P) Ltd (HMSI).

Although the three players have dominated the market for a relative long period of time,
their individual market shares have undergone a major change. Bajaj Auto was the
undisputed market leader till FY2000, accounting for 32% of the two-wheeler industry
volumes in the country that year. Bajaj Auto dominance arose from its complete hold
over the scooter market. However, as the demand started shifting towards motorcycles,
the company witnessed a gradual erosion of its market share. HHML, which had
concentrated on the motorcycle segment, was the main beneficiary, and almost doubled
its market share from 20% in FY2000 to 50% in FY2007 to emerge as the market
leader. TVS, on the other hand, witnessed an overall decline in market share from 22%
in FY2000 to 17% FY2007. The share of TVS in industry sales fluctuated on a year on
year basis till FY2003 as it changed its product mix but has declined since then.

Technology

Hitherto, technology transfer to the Indian two-wheeler industry took place mainly
through: licensing and technical collaboration (as in the case of Bajaj Auto and LML);
and joint ventures (HHML).

20
A third form - that is, the 100% owned subsidiary route - found favor in the early
2000s. A case in point is HMSI, a 100% subsidiary of Honda, Japan. Table 2 details the
alliances of some major two-wheeler manufacturers in India.

Besides the below mentioned technology alliances, Suzuki Motor Corporation has also
followed the strategy of joint ventures (SMC reportedly acquired equity stake in Integra
Overseas Limited for manufacturing and marketing Suzuki motorcycles in India).

Technological tie-ups of Select Players

Nature of Alliance Company Product

Bajaj Technological tie- Kawasaki Heavy Motorcycles

Auto up Industries Ltd, Japan

Technological tie- Tokya R&D Co Ltd, Two-

up Japan wheelers

Technological tie- Kubota Corp, Japan Diesel

up Engines

HHML Joint Venture Honda Motor Co, Japan Motorcycles

KEL Technological tie- Hyosung Motors & Motorcycles

up Machinery Inc

KEL Tie up for Italjet, Italy Scooters

manufacturing
and distribution

LML Technological tie- Daelim Motor Co Ltd Motorcycles

up

Hero Technological tie- Aprilia of Italy Scooters

Motors up

With the two-wheeler market, especially the motorcycle market, becoming extremely
competitive and the life cycle of products getting shorter, the ability to offer new

21
models to meet fast changing customer preferences has become imperative. In this
context, the ability to deliver newer products calls for sound technological backing and
this has become one of the critical differentiating factors among companies in the
domestic market. Thus, the players have increased their focus on research and
development with some having indigenously developed new models as well as
improved technologies to cater to the domestic market. Further, with exports being one
of the thrust areas for some Indian two-wheeler companies, the Indian original
equipment manufacturers (OEMs) have realized the need to upgrade their technical
capabilities. These relate to three main areas: fuel economy, environmental compliance,
and performance. In India, because of the cost-sensitive nature of the market, fuel
efficiency had been an interest area for manufacturers.

It is not only that the OEMs are increasing their focus on in-house R&D; they also
provide support to the vendors to upgrade the technology and also assist those striking
technological alliances.

TRENDS IN THE TWO-WHEELER INDUSTRY

Companies raising capacity to meet the growing demand

All the major two-wheeler manufacturers, viz. Bajaj Auto, HHML,YMIL, TYS, HMSI
and others, have increased their manufacturing capacities in the recent past. Most of the
players have either expanded capacity, or converted their existing capacities for
scooters and mopeds into those for manufacturing motorcycles. The move has been
prompted by the rapid growth reported by the motorcycles segment since FY1995.
Niche markets also witnessing intense competition:

A significant trend witnessed over the past five years is the inclination of consumers
towards products with superior features and styling. Better awareness about
international models has raised expectations of consumers on some key attributes,
especially quality, styling, and performance. High competitive intensity has prompted
players to launch vehicles with improved attributes at a price less than the competitive
models.
In an effort to satisfy the distinct needs of consumers, producers are identifying
emerging consumer preferences and developing new models. For instance, in the
motorcycles segment, motorcycles with engine capacity over 150cc, is a segment that

22
has witnessed significant new product launches and hence, become more competitive.
The indigenously launched Pulsar 150 had met with success on its launch and
thereafter, a host of models have been launched in this segment by various players.
While Bajaj Auto launched the Pulsars (180 cc, 200cc and 220cc) with digital twin
spark technology (DTSFi) that offers a powerful engine and fuel efficiency of 125 cc
models. Moreover, in the recent past, the motorcycle segment has witnessed launch of
vehicles with higher engine capacity (higher than 150cc) and power (higher than
15bhp). These include models such as Bajaj Auto Eliminator and Royal Enfield's
Thunderbird followed by HHML's Karisma and Yamaha R15 and other sports bikes.
The products in this segment cater for style conscious consumers. Quite a few players
are developing models combining features such as higher engine capacity", optimum
mix of power and performance, and superior styling. However, the extent of shift to
these products would depend on the positioning of such products in terms of price.

In the scooters segment, the market for plastic-bodied variomatic scooters continues to
witness growth in the scenario of overall decline in scooter volumes. Higher volumes
and growth are especially true for certain scooter models, such as Honda Activa, that
brought in new technology (besides variomatic transmission) to further differentiate
themselves. Thus, the need to differentiate and create a niche has led to companies
strengthening their research and development (R&D) capabilities and reducing the
development time for new models.

INCREASING FOCUS ON EXPORTS:

For the first nine months of FY2007, two-wheeler exports increased by 37% over the
corresponding previous, led mainly by motorcycles even as exports of other two-
wheelers were healthy. While motorcycle exports increased by 40%, scooter and moped
exports increased by 29% and 27% respectively. Motorcycle exports by Bajaj Auto,
HHML and TVS have reported a robust growth in FY2007 and are expected to increase
further in the medium term.

Although the Indian two-wheeler manufacturers have forayed on their own in their
target export markets, there have been instances of tie-ups with the technology partners.
Bajaj Auto's tie-up with Kawasaki to jointly market Bajaj products in Philippines is a
case in point. Under the tie-up, M/s Kawasaki Motors Philippines Corporation has been

23
appointed as exclusive distributors to market select Bajaj two-wheelers that include
Byk, Caliber 115 and Wind 125. These vehicles are being sent to Philippines in the
completely built unit (CBU) form. Other strategy of expanding international presence
considered by few players is that of setting up assembly lines in select South East Asian
countries either on their own or in partnership with local players. Besides, plans of
select overseas technology partners to source from their Indian partners and plans of
global majors to develop their Indian manufacturing unit as a sourcing hub may also
lead to increase in two-wheeler exports from India.

24
 CHAPTER-2
LITERATURE REVIEW
Literature Review of Honda
Honda Motor Company, Ltd., was the brainchild of one of the true visionaries of the world,
Soichiro Honda - the central character in the early history of Honda motorcycles. Honda
repaired cars and motorcycles for a living while pursuing the hobby of auto racing. In the
1930s, he started manufacturing piston rings, a business that ended shortly after the war did.
A year later, in 1946, Honda started selling motorized bicycles to war-ravaged Japan
desperately in need of cheap transportation.
The moped business took off, and Honda started building his own engines. In 1949, Takeo
Fujisawa, a master of organization and finance, joined the operation. Profits were invested in
the company. In the early 1950s, Honda was able to borrow one million U.S. dollars from
friendly banks to buy American and Swiss machine tooling. As a result, the factory was able
to economically build clean, reliable motorcycles with advanced features.
By 1959, Honda was the largest motorcycle manufacturer in the world. That year, the
company established an American subsidiary and started exporting bikes to the U.S. By the
end of 1961, Honda had more than 400 U.S. dealers selling models developed specifically for
the American market.
The first bike in the CB series of sporty roadsters was the 125cc Honda Benly Super Sport,
one of the first bikes exported to the U.S. The Benly was followed by the 1961 Honda CB72
Hawk, a 250cc overhead cam twin, and its big brother, the 305cc Honda Super Hawk.
The sport, the first Honda CB160, appeared in July 1964. It was soon followed by the
Scrambler, with high pipes, and a touring model with wider fenders and only one carburetor.
The CB160 range was restyled and souped up in 1969 as the Honda CB175.

25
 Literature review of Yamaha
1887 Torakusu Yamaha builds his first reed organ
Nippon Gakki Co., Ltd. (current Yamaha Corporation) is established with capital of
1897
100,000 yen
1900 Begins production of upright pianos
1949 Lists its shares on Tokyo Stock Exchange
Establishes Yamaha Music School and holds pilot classes
1954
Produces its first HiFi player (audio product)
1955 Establishes Yamaha Motor Co., Ltd. (Splits off the motorcycle division)
Begins production of sports equipment
1958
Establishes first overseas subsidiary in Mexico
1959 Begins production of electronic organ
Establishes Yamaha International Corporation (current Yamaha Corporation of
1960
America)
1962 Begins recreation business
1964 Begins production of lifestyle-related products
1965 Begins production of wind instruments
Yamaha Music Foundation is established
1966
Expands into Europe with the founding of Yamaha Europa GmbH, in West Germany
1968 Issues shares at market price for the first time in Japan
1971 Begins production of semiconductors
1987 Changes company name to Yamaha Corporation to mark the 100th years in business
Establishes Yamaha Music & Electronics (China) Co., Ltd.
2002 Establishes Yamaha Music Holding Europe GmbH (current Yamaha Music Europe
GmbH)
2005 Acquires Steinberg Media Technologies GmbH
2007 Establishes music entertainment business holding company
Acquires L. BösendorferKlavierfabrik GmbH
2008
Acquires NEXO S.A.
Renews Yamaha Ginza Building, a complex including shopping area, concert hall,
music studio etc.
2010
Transfers shares of the lifestyle-related products subsidiary
Completes integration of Japanese piano factories to Kakegawa
Completes integration of Japanese wind instrument factories to Toyooka
2012
125th years in business (October 12th)

26
 CHAPTER 3
RESEARCH METHODOLOGY

RESEARCH PROBLEM AND OBJECTIVE:

Research in common parlance refers to search for knowledge. Research is an academic

activity and as such it is used in a technical sense. According to Clifford Woody, research
comprises defining and redefining problems, formulating hypothesis or suggesting
solutions, collecting, organizing and evaluating data, making deductions and research
conclusions to determine whether they fit the formulating hypothesis.
Objective for the study

 Primary objective:
 To compare and analysis of Yamaha bikes with respect to other brands prevailing in
the market i.e., Hero Honda, Honda, Bajaj, TVS and Suzuki.
 To interpret the satisfaction level of customers using Honda & Yamaha’s bikes and to
find out the areas in which it needs to improve to develop a better perception in the
mind of its customers.

Secondary objective:

 To go in detail, the research includes the study of comparative satisfaction level of

customers using different bike brands; the various areas where competitors supersede
and the areas where the competitors lack.
 To find out the relative market capitalization of Yamaha in the two wheeler industry
and to suggest some concrete and absolute measures to give a rise to its share in the
two wheeler segment.

Research Process

 Extensive Literature Survey: Before starting the research in-depth study of the topic
was done to form a clear picture of what and how research is to be done.
 Formulating the Research Problem: The next step was to find out the problem of
the case. Then the problem was understood thoroughly and rephrasing the same into

27
 meaningful terms from analytical point of view. This step is of greatest importance in
the entire research.
 Design of Questionnaire: A questionnaire was developed for the survey. The
questionnaire is of structured type. Most of the questions were based on 5 point
bipolar Liker Scale.
 Determining the Sample Size: Next step is to determine the number of to be targeted
from various ages, monthly salary, and gender. So a total of 200 people were
surveyed.
 Collecting the data: The data was collected from various class of people based on
age, sex, income, location.
 Analysis of Data: The data collected from various people was segregated into various
categories in order to analyze it. Analysis was done based on more than 22 different
parameters.
 Generalization and Interpretation: Data was tested and upheld several times, and
then generalizations were drawn from the analysis.
 Preparation for the report: Lastly report about the research is made.
Research Design:
A Questionnaire is used to do the research
 Exploratory Research design
 Focus Group
 Primary data analysis
Collection of Data:
 Qualitative Data
 Survey
 questionnaires
Sampling:
 Non-Probability Sampling
 Judgmental Sampling
 Simple Random

28
 Sample Size 100
Target Population 18-25 years
25-30 years
30 and above
Area Covered Delhi/ New Delhi, Noida & Greater Noida
& Semi-urban And Rural Areas of
Sampling Judgmental Simple Random
Type of Questionnaire Structured 5 point bipolar Liker Scale
Type of Questions Close ended Questions

Sample Design:

Sampling may be defined as the selection of the some part of an aggregate or totality on
the basis of which a judgment or interference about the aggregate or totality is made. It is
the process of obtaining information about entire population by examining only a part of it
in which generalizations or influences are drawn based on the sample about the parameter
of population from which samples are taken.

Sample Size: A total of 100 people have been questioned for the purpose of filling up the
questionnaire.

29
 CHAPTER 4
DATA COLLECTION AND INTERPRETATION
The research required collection of first hand primary data from the respondents .the
respondents necessarily were to be bike users . They were exposed to a questionnaire
containing different parameters for the evaluation of their satisfaction level . the broad
parameters were :

 During sales evaluation .

 During vehicle delivery .

 After sales evaluation .

It was expected that the respondents were honest while answering the questions with
proper consideration of the brand image of the bike they were currently using .the
questionnaire contained likert scaling to rate various parameters .

The respondents were so selected that they were representative of various segments of
bike users .the respondents were questioned on :

 Petrol pumps

 Service stations

 Educational institutes

 Vehicle showrooms

 Malls

 Residential areas , and

 Factories

The results and responses were recorded on a SPSS data viewer (Statistical Package for Social
Sciences)parameters were defined on a SPSS variable viewer . the next step was to run the SPSS and
acquire specific results pertaining to the research done .

30
 GRAPHICAL DATA INTERPRETATION

1. Which types of customer Attitude towards motor bike?

Male 99.5

Female 0.5

Customer Attitude towards Motor Bike

Female, 0.5

Male, 99.5

Male Female

Interpretations: Shown in the above graph shows that 99.5% male has been
preferably to motor bike and rest of female prefer than.

31
2. Which people attitude towards motor bike?

Married 15%

Unmarried 85%

People attitude towards motor bike

Married, 15%

Unmarried, 85%

Married Unmarried

Interpretation:

85% unmarried people attitude towards motor bike whenever rest of 15% married
people attitude towards motor bike.

32
 3. Age group of consumers towards motor bike:

Age Group 18-25 25-35 35-45 About 45

Percentage 65% 20% 10% 5%

Age group of customers towards motor bike

70% 65%

60%
50%
40%
Percentage
30%
20%
20%
10%
10% 5%

0%
18-25 25-35 35-45 About 45
Age Group

Interpretation:

65% age group of 18-25 preferred a motor bike, 20% of age group 25-35, 10% of age
group of 35-45 and the rest of age group above 45 years old.

33
 4. Professionally/Occupationally consumer attitude towards motor
bike:

Student 45%

Service 40%

Business 5%

Self Employed 5%

Others 5%

Professionally/Occup. attitude towards motor bike

Self Employed, 5% Others, 5%

Business, 5%
Student, 45%

Service, 40%

Student Service Business Self Employed Others

Interpretation:

Occupationally and professional the motor bike has been used i.e. 45% preferred by
student, in the service level it is used 40% and the rest of used in business, self
employed and for other purposes used.

34
 5. Incomewise customer attitude towards motor bike:

10000-15000 35%

15000-20000 40%

20000-50000 15%

50000-100000 5%

Above one lac 5%

Incomewise customer attitude towards motor bike

Above one lac
5%
50000-100000
5%

20000-50000 10000-15000
15% 35%

15000-20000
40%

10000-15000 15000-20000 20000-50000 50000-100000 Above one lac

Interpretation:

In the base of economically, it is used in the base of income i.e. 35% of income group
10,000-15,000, 40% of 15,000 - 20,0000, 15% of income group of 20,000-50,000 and
rest of used in the rarely above income of 50,000.

35
6. Which company bike and models liked by all?

Hero Honda 40%

Bajaj 45%

Yamaha 10%

TVS 3%

Honda 2%

Bike & Model like by all

Yamaha Honda
10% 2%
TVS
3%
Hero Honda
40%

Bajaj
45%

Hero Honda Bajaj Yamaha TVS Honda

Interpretation:

40% motor bike company and its models liked by people of Hero Honda, second
position of Bajaj and third position of Yamaha and rest of TVS and other companies.

36
 7. Are customer satisfaction towards bike?

Yes 99.50%

No 0.50%

Consumer satisfaction towards bike products

No, 0.50%

Yes, 99.50%

Yes No

Interpretation:

Approximately 100% customer satisfaction level of motor bike products and a rarely
can say that no comments about it.

37
 8. Bikes are generally adopted by:

Speed 40%

Power/BHP 5%

Mileage 30%

Design 5%

Brand 5%

Pick up 2%

Color 5%

Comfort 8%

Bikes are generally adopt by

Pick up, 2% Comfort, 8%
Color, 5%
Speed, 40%

Brand, 5%

Design, 5%

Power/BHP,
Mileage, 30% 5%

Speed Power/BHP Mileage Design Brand Pick up Color Comfort

Interpretation:

65% age group of 18-25 preferred a motor bike, 20% of age group 25-35, 10% of age
group of 35-45 and the rest of age group above 45 years old.

38
9. People know about the bike?

TV 35%

Newspaper 15%

Friend 12%

Product Show 10%

Family 8%

Test Ride 2%

Internet 10%

Hoarding 8%

People know about the bike through:

Hoarding, 8%
TV, 35%
Internet, 10%

Test Ride, 2%

Family, 8%

Product Show , 10%

Friend, 12% New spaper, 15%

TV News paper Friend Product Show Fam ily Tes t Ride Internet Hoarding

Interpretation:

The aware and know about motor bike products about 35% by TV channels, 15%
newspapers / magazines, 12% by friends, 10% by product show, 10% through
internet, 8% by family and others through test riding and hoardings.

39
10. Why do you drive bike / two wheelers?

Passion 30%

Self Satisfaction 8%

Cruising / Long
Drive 30%

Show Off 2%

Commuting 20%

Power 10%

Why drive bike / two wheelers?

Pow er
10%

Passion
Commuting 30%
20%

Show Off
2% Self Satisfaction
8%
Cruising / Long
Drive
30%
Passion Self Satisfaction Cruising / Long Drive Show Off Commuting Pow er

Interpretation:

The most important things to likewise any brand of motor bike through company,
brand, passion and fashion, satisfaction and comfortability i.e. in the base of passion
30%, long drive 30%, commuting 20% and power 10% and the rest of others.

40
 11. Whom did you purchase a bike?

Family 40%

Yourself 30%

Son 20%

Girl Friend 10%

Whom did you purchase a bike?

Girl Friend
10%

Son Family
20% 40%

Yourself
30%

Family Yourself Son Girl Friend

Interpretation:

The common factor which is the bike has been purchased somehow the main aim to
factorize the commit for family, self, son or daughter and others.

Firstly, 40% of bike has been purchase having in the mind of family commit, self
30%, 20% for son and 10% for others.

41
 12. Why did you purchase a bike?

Brand Value 80%

Design 5%

Publicity 14%

Scheme 0%

Gift 1%

Why did you purchase a bike?

Brand Value, 80%

80%
70%
60%
50%
Percentage 40%
30%
20% Publicity, 14%
10% Design, 5%
Sheme, 0% Gift, 1%
0%
Brand Value Design Publicity Sheme Gift
Purchase Group

Interpretation:

The bike has purchased according to brand value, design, publicity and others base.
The common factor, in the present firstly brand value is the main factor i.e. 80%
people has been purchased any motor bike and 14% has been purchased having the
main factor of publicity.

42
13. Which type brakes liked by customersfavourite bike?

Disc Brake 85%

Drum Brake 15%

Customer attitude towards Brakes favourite bike?

Drum Brake, 15%

Disc Brake, 85%

Disc Brake Drum Brake

Interpretation:

The main factor is used for customer favourably through disc brake and drum brake.
It is 80% used disc brake and rest of used drum brake.

43
14. Which types of wheels are attracted to customers?

Spoke Wheel 20%

Alloy Wheel 80%

Customer attitude towards types of wheel

attracted?

Spoke Wheel, 20%

Alloy Wheel, 80%

Spoke Wheel Alloy Wheel

Interpretation:

The main attraction through spoke wheels and alloy wheels, i.e. is 80% customers
preferred to alloy wheels and rest of preferred to spoke wheels.

44
 15. How was your experience?

Good 20%

Excellent 75%

Satisfactory 5%

Not Good 0%

Customer attitude towards experience?

Not Good
0%

Satisfactry
5% Good
20%

Excellent
75%

Interpretation:

In the most preferred through experience i.e. the good, and excellence and
satisfactory based. In the survey it has been found that 75% excellence and 20% has
been telling about with good theme.

45
16. Customers attitude towards servicing of motor bike:

Showroom 95%

Road Mechanic 5%

Customer attitude towards

servicing of motor bike

Road Mechanic,
5%

Showroom, 95%

Showroom Road Mechanic

Interpretation:

The main important thing that the motor bike servicing factor where it will be better
do for that. 95% customers attitude towards servicing of motor bike in showroom and
rest of road mechanic.

46
17. Did the customers attitude towards get the full value of money with the
product?

Yes 100%

No 0%

Customer attitude towards

full value of money with the product

Yes, 100% No, 0%

Yes No

Interpretation:

100% customers attitude has been found towards full value money has taken over all
the products.

47
18. Customer attitude towards the feeling about dealer services represents
the current brands.

Extremely Well 45%

Very Well 50%

Average Not Very

Well 5%

Not Well at All 0%

Customer attitude towards the feel the dealer

services represent the current brand

50%
40%
30%
Percentage 20%
10%
0% S1
Extremely Well

Very Well

Average Not

Not Well at All

Very Well

Feeling

Interpretation:

Yes, 50% customers has been highlight about brands and can have very well
whenever 45% extremely well and rest of average.

48
 CHAPTER-5

FINDINGS OF RESEARCH

 It is found that the average age of a Yamaha customer comes out to be 26-30
years compared to others brands average customers age which is 21-25 years.

 It is found that when explanation of product features comes into view; only
Yamaha customers rank them average; others says it’s good.

 Honda is most favored brands when timely delivery of bike comes into picture.

 Yamaha customers says that they have to run after their dealers for the
documentation of the delivery done while others say they are satisfied.

 Yamaha is best when sales follow up after delivery is concerned.

 The most important point that comes up after analysis is that almost every
brand of customer wants a change but Yamaha customers are generally loyal to
their brand.

49
 LIMITATIONS OF THE STUDY

1. Research is limited to only two wheeler motorcycle industry.

2. Research is restricted to Noida only.
3. Since it is limited only to two wheeler motorcycle industry so the entire
customer satisfaction level while and after purchasing a product cannot be
projected on this research.
4. Sometimes it is very difficult to get the necessary information as filling the
Questionnaire required time.
5. Research could have been wider in scope if along with customer satisfaction
level consumer behavior pattern is also studied

50
 RECOMMENDATIONS

The following recommendations are:

 The two wheeler companies should focus on gearless scooters. The market share of
gearless scooters is increasing at a healthy rate. Bajaj is virtually absent in this range
that caters to the needs of women and families. Presently Honda, Hero Honda and
TVS are big players in this segment.

 Entry into four wheeler segment

Bajaj has entered into a joint venture with Renault-Nissan in the development of a
small car priced at $3000. This is a significant move because it directly competes with
Tata NANO. Bajaj has also displayed its small car prototype in the recently held auto
expo. It promises double the mileage as compared to any car in the economy segment
and is also considering the option of introducing Diesel and LPG variants. The four
wheeler segment will also be able to hedge any risk that might arise because of the
two wheeler industry and would profit from retaining consumers switching from two
wheelers.

 Scaling Up Service Centers

Companies need to scale up its service centers both in numbers and in capacity.
Keeping in line with its growth target for the next 5 years, the service centers should
not only cater to two wheelers but should also be upgraded to cater to the needs of
four wheelers that companies plans to launch.

 Focus on Easy Credit Lending

 Investment in Research and Development

 Focus on Exports and Global Market

51
 CONCLUSION

From the research following facts about Indian two wheeler industry has been inferred:

 Age group –

21-30 years

 Profession –

Mostly salaried

 Customers are generally satisfied with attitude of dealers at the time of sales.

 Every brand of bikes have a poor response in terms of sales follow up.

 Hero Honda is the most famous brand.

 Favored bikes in today’s date are –

 Pulsar

 Apache

 Spender

 Discover

 Customers stress on quality as complimentary to looks.

 Mileage is what everybody wants.

 In fact, the dealership of Delhi / New Delhi is found good having with customers
attitude and behaviour to Dealership evaluation other than found of Noida th

52
 BIBLIOGRAPHY
BOOKS
 Gujrati D.N. ,“BASIC ECONOMETRICS”

 Malhotra N.K. ,“MARKETING RESEARCH”

 Kotler , Armstrong ,”PRINCIPLES OF MARKETING”

MAGAZINES / NEWSPAPERS
 Business World

 Business Today

 The Financial Express

 The Auto Industries – India & Abroad

 The Times of India

WEBSITES
 www.indianauto.com

 www.yamaha-motors-india.com

 www.bikes.com

53
 ANNEXTURE-1
QUESTIONNAIR
1. Which types of customer Attitude towards motor bike?

A – male b- female

2-Do you own a two wheeler?

Yes No

If yes, then specify________________

3-Which of the three companies’ ads you have viewed the most?
HERO HONDA

HMSI

YAMAHA

4-Among these ads which ad has influenced you the most?

HERO HONDA

HMSI

YAHAMA

5- Which people attitude towards motor bike?

a- marriage b- unmarried

6-Name any two bike ads that you can recall the best.
a.________________________________________________

b.________________________________________________

54
 7-Where do you come across these ads quite often ?
TV

Newspaper/Magazines

Billboards

Internet

8-Where do you gather the reliable information for purchasing a two wheeler quite
often?
Friends

Internet

Automotive magazines

Company dealers

9-What are the factors which motivate you most while purchasing a two wheeler?
Discount rate

EMI

Resale value

Allowances

Others

10-Which price range do you prefer most?

30-40 40-50 50-60 60-70 70-80

11-Rate the following factors in a bike on the scale 1-7, based on your preference?
(Where 1 is least preferred and 7 most preferred.)tick mark.

Sn. Factor 1 2 3 4 5 6 7
55
 1. Price
2. Fuel efficiency
3. Performance
4. Safety and comfort
5. Design and style
6. Brand value
7. After sales service and support

12-Do you verify or crosscheck the information provided in the commercials of two
wheelers ?
Yes No

13. Did the customers attitude towards get the full value of money with the
product

Yes No

PERSONAL INFORMATION

Name

Gender

Age

Occupation

Income

Marital status

Qualification

Contact number

56