66573113 hero honda comparative study of hero honda motors with bajaj automobiles (2)

8/10/2019 66573113 Hero Honda Comparative Study of Hero Honda Motors With Bajaj Automobiles (2)

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PDCS MINOR PROJECT

COMPARATIVE STUDY OF HERO HONDAMOTORS WITH BAJAJ AUTOMOBILES

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF

BACHELOR OF BUSINESS ADMINISTRATION (BBA)

SUBMITTED TO SUBMITTED BY

MRS. ANNU BHARDWAJ > MAHENDER SINGH MEENA

ROLL NO- 097!"07#

SESSION$ "0#-"0%

JAGANNATH INTERNATIONAL

MANAGEMENT OF SCHOOL
http://www.herohonda.com/


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ACKNOWLEDGEMENT

The present work is an effort to throw some light on &C'*+*,/ S,12 '3 H/+'

H'41* M','+5 6, B*8*8 A,'':/5;. The work would not have been possible to

come to the present shape without the able guidance, supervision and help to me by

number of people.

With deep sense of gratitude I acknowledged the encouragement and guidance

received by MR5. A44 *+16*8

I am also thankful to all my faculty of my college for extending his full sopport to me

during the making of the project. I convey my heartful affection to all those people

who helped and supported me during the course, for completion of my Project

eport.

MAHENDER SINGH MEENA BBA III-B (MORNING)

09!"#0!!$

!


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TABLE OF CONTENTS

. AC


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9. SWOT ANALYSIS

i. 1W$T &'&*(1I1 $) 2&3&3 &/T$%$2I*+1

ii. P+T &'&*(1I1 $) &/T$%$2I*+ I'-/1T(

iii. +#$'$%I#&* &'&*(1I1

iv.)I'-I'1

0. CONCLUSION

. BIBLIOGRAPHY

". APPENDICES

"


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EXECUTIVE SUMMARY

In view of the increasing competition due to globali7ation and the expansion of the

economy .&ll industries need to constantly add more attributes and features which

consumer wants in two wheelers of their company .In context company had to adopt

more innovative and consumer friendly attributes so that there product should be more

popular among the customers.

Today in this present world the +$ $'-& 8 2&3&3 &/T$%$2I*+1 in two

wheeler segment of India and are leading as the world number one two wheeler

company from the past three consecutive years.

The research assingned to was to study the parameter ore the features that effect most

of the customer satisfaction in the ero onda motors limited 8 2&3&3

&utomobiles .There are many features which effect the two wheeler company but

important among all of them are the following 9:

;


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OBJECTIVE OF STUDY

The objective of my research project is

To study the company profiles of +$$'-& %$T$1 8 2&3&3

&/T$%$2I*+1 in regard to their history, market shares and product i.e. 2ikes.

To make a comparative analysis of the bikes of +$ $'-& 8 2&3&3.

?


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OVERVIEW OF AUTO MOBILE INDUSTRY

IN INDIA

& two:wheeler is used as a personal@family vehicle or a goods carrier in the

developing countries, whereas it is confined to sports@racing ;heavy motorcycles= or

short distance shopping ;mopeds= in developed countries.

The world two:wheeler market is dominated by 3apan. 3apanese manufacturers

account for around ?>A of the total two:wheeler production in the world. owever,

production within 3apan has been declining due to lower domestic demand and shift

in manufacturing base outside the country. 3apan is also the worldBs largest exporter of

two:wheelers in the world controlling around C>A of the world trade. Its major

markets are #hina, /1& and +urope. In terms of player positions, onda %otors

#orporation, (amaha %otors and 1u7uki %otors #orporation share the top three slots

in the world two:wheeler market. The table below shows the production and sales

figures of motorcycles and scooters in 3apan during the past decade %ore than >DA of

the production in 3apan is exported out of the country. This scenario contrasts directly

with the Indian scenario. In India, only about !A of the production in )(EE was

exported

The &sian continent is the largest user of two:wheelers in the world. This is due to

poor road infrastructure and low per capita income, restrictive policy on car industry.

The technology for two:wheelers is not as well developed as for car industry. This is

due to oligopoly between top five players in the segment, compared to thirty

manufacturers in the car industry

C


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INTRODUCTION TO THE INDIAN MOBIKE

INDUSTRY

The Indian two:wheeler industry is dominated by three players, 2ajaj, ero onda

and T01 1u7uki, who account for 4D percent of the total two:wheeler market. The

other players including Finetic +ngineering, *%* and others account for the

remaining !D percent of the market. The industry can be divided into three broad

segments9 1cooters, motorcycles and mopeds. In the scooters segment 2ajaj is the

market leader, ero onda is the market leader in the motorcycles segment and in the

segment of mopeds, T01 controls the major chunk of the market.

%ost Indian players in the two:wheeler industry had been into some kind of strategic

alliance, technical collaboration or joint venture with foreign players, mainly 3apanese

firms. ero:onda, is a joint venture between the %unjal:promoted ero roup and

onda %otor #o. of 3apanG T01:1u7uki was an alliance with T01 and 1u7uki %otors

;till 1eptember !DD


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1pirit was adjudged the HIndigenous product design of the yearH for the year !DDD.

The recently launched Pulsar from the 2ajaj stable is yet another home:grown

product, albeit in tandem with 3apanese design house, Tokyo 8-. 2ajaj has been

laying increased emphasis on its 8- so as to be able to launch new products to tap

the markets at all possible price points. $ther companies too are adapting the strategy

of designing and developing products indigenously. T01Bs 0ictor is yet another

development in this direction and this indigenously built model has been a success in

the markets.

E


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JOURNEY SO FAR

Indian companies had relied heavily on their foreign counterparts for technical

support, design of the model etc., while they provided the distribution and branding in

the Indian market. 'ow that the Indian market for motorcycles is fairly developed and

consumers are well aware. The inadeuacy of the public transportation system, the

upwardly mobile middle class, which has the disposable income and the intent to own

a two:wheeler and the sheer si7e of the Indian market is proving to be an attractive

factor to many multinational companies. IndiaBs two:wheeler industry is the second

largest market in the world after #hina. onda %otors, whose tie:up with ero:

onda is going to expire soon, has already entered the fray with onda:&ctiva.

$thers are also ueuing up.

(amaha #orporation, which was operating in India through a joint venture with

+scorts roup, had decided to call it uits in mid:!DD< by buying off +scortsB >D

percent share in the joint venture. (amaha now plans to tap the Indian market on its

own with models such as J:, JK, (2J, (-, and +. Its name has

become fairly established while the joint venture had been in operation for two

decades. $n its own now, (amaha has started implementing its ambitious plans for the

Indian market and has embarked on a challenge !< project, a time:bound initiative

that is aimed at reorienting and revitali7ing the entire Indian operations in order to

achieve a competitive edge. (amaha has set for itself the target of capturing !D : ?> cc

machines.

"00! ero #old olling -ivision established and is one of the most modern steel

cold rolling plants.

"00?ero onda receives 'ational Productivity #ouncilBs &ward.

ero onda receives the +conomic Times : arvard 2usiness 1chool

&ssociation &ward against !DD contenders.


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HERO GROUP ACHIEVEMENTS

ero roup ranks amongst the Top Indian 2usiness ouses comprising of .

& survey b

y leading business newspaper : +conomic Times : declared ero onda as Hthe most

trusted automobile brand in India.H

ero onda was ranked number "rth in India by eview !DD? : an annual survey of

&siaBs leading companies conducted by )ar +astern +conomic eview.

ero roup %anagement style has been acclaimed internationally by leading

institutions likes I'1+&- ;)rance=.

World 2ank has acclaimed ero #ycles as a role model in vendor development based

on a worldwide study.

The *ondon 2usiness 1chool, /F, has done a study on the roup as model of

entrepreneurship.

2oston #onsulting roup has ranked ero roup as one of the top ten 2usiness

ouses on +conomic value, in India.


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&2' &mro has rated the ero onda stock as one of the most valuable and one of the

most under:rated.

+ngineering +xports Promotion #ouncil has awarded ero #ycles with the 2est

+xporter &ward for the last !4 years in succession.

12#:%erril *ynch has estimated ero roup would be among the top value

creators in !DD>:D?.

ero #ycles *imited is a uinness 2ook ecord holder since


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INTRODUCTION TO HERO HONDA PRODUCTS

ero onda is the largest player in the motorcycle segment. Its )ocus is on

manufacturing mobikes which are contemporary in design and style and as well as

eco friendly to environment. ero onda %otors ltd was the first company to

concentrate manufacturing fuel:efficient bikes instead of powerful bikes. The

company has a comprehensive range of bikes in its stable

. #-:, the company has also become the largest volume seller among all onda

#ompanies and ventures in the world.

The company has now shifted its focus towards launch of new products. %*

launched a


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PRODUCT PROFILE OF HERO HONDA

HERO HONDA SPLENDOR

The most successful model of ero onda %otors ltd which has caught the fancy of

Indian customers. Its sale accounts for "D A of the product profile. The reason for its

success is the unbeatable mileage. & combination of style and economy makes the

1plendor is a bike worth investing in. The latest from the ero onda factory offers

both performance and looks. It has good looks, excellent handling characteristics and

a smooth drive over any type of terrain, thanks to the changes in the suspension at

front and near as well as the new frame design. &ll these features contribute to the

1plendor being one of the best selling four stroke:two:wheelers in India.

!D


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!!


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HERO HONDA CB

The ero onda #2K ;pronounced #ee2eeKee= is the latest offering from ero

onda for the Indian market. With a ?cc engine, the company claims that the bike

has a top speed of .? seconds. Though the bike has the largest

displacement engine, its top speed doesnt match up to many of its competitors. In all

other respects, it is a bit too early to decide whether the #2K will sell in the same

numbers as the 1plendor. Though the initial market response has been good, only time

will be the final arbiter. It was the first attempt by the company to target youth who

would love to drive a bikes whch have sleek looks and donQt mind shelling out few

extra bucks for it . Initially it was accepted by the customers very well but due to high

maintenance costs its not a hot seller for the company.

!6


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CD 00

*aunched in %ay , it is the legendary H )ill it shut it )orget itH motorcycle. It was

IndiaBs first


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ero onda passion was launched in !DDD in order to create excitemnent in the

market. IT was an attempt by %* to modify the splendor in looks. The base

engine was same as of splendor. It was promoted my tagline S2$' I' 1T/-I$

Sthus highlighting the sleek looks of passion. It was a hit among the young crowd and

was very well received in urban markets of India.

!?


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MARKETING STRATEGIES OF HERO HONDA

MOTORS

2y everyone. The farmer in Punjab. The fisherman in Ferala. The trader in %umbai.

&nd the worker in 2engal. Imagine having a place in their hearts. Imagine echoing

their heartbeats. Imagine being part of the great Indian fabric.

Thats the great Indian dream. $f every company and it is what ero onda is trying

to accomplish through its advertisement and marketing initiatives for the entire range

of ero onda motorcycles and the latest campaign broadcasted onn all premier

channels S desh ki dhadkan S is a step in that direction. 1ays 'avro7e -. -hondy,

#+$, Percept &dvertising, which made the ?D:second television commercial, HWe

wanted to say that ero onda was more than a bike. It was a friend, something that

has been part of your life, something that has shared your best moments.H

1o whoBs the target +verybody. The models in the advertisement range from children

to old people. The message +verybody needs a ero onda. In the shape of a

#-


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global market. e is one of Indias most distinguished business leaders and

internationally respected for his business acumen and entrepreneurial spirit.

!E


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MILESTONES

6D


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BAJAJ PRODUCTS

6!


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66


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6"


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RESEARCH METHODOLOGY

METHODOLOGY

T2/5 '3 R/5/*+

+xploratory research9 In well:established fields of study, hypotheses usually are

drawn from the ideas developed in previous research studies or are derived from

theory. Sypotheses are tentative answers to uestions that serve as guides for most of

the research.R

DESIGN OF E=PLORATORY STUDY

S,12 '3 S/'41*+2 D*,*$The uickest and the most economical way from

researchers is to find possible hypothesis is to take the advantage of the work done

earlier and thus utili7e their efforts.

I4-1/, I4,/+/65$ We used in:depth interviews because it attempts to

influence respondents to talk freely about their subject of interest. 'o formal

uestionnaire was used in depth interviews. The interview was conducted with an

outline S co:relation between employee commitment and organi7ational

performanceR in mind.

6>


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B*5 /,'15 '3 '::/,4 P+*+2 D*,*$

. Q/5,'44*+/ M/,'1$The uestionnaire used by us for the purpose of data

collection were of structured type; 'on:disguised as well as -isguised=.

". C'4,*, M/,'1$In order to derive information from the intended organi7ation,

it was elementary for us to search for a link, which could enable us to conduct a

research in that organi7ation. The personal contact of one of the group members in

the aforesaid organi7ation helped us in getting an appointment soon.

6?


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INDUSTRY ANALYSIS

6C


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64


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"D


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5!9:VPlease select your main purpose of using a bike

;&= 2usiness ;2= Personal

;#= *eisure ;-= 1tatus

"!


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569: would you like to change your bike from any other companys bike

in the same 1egment

(A) (es

(B) 'o

"6


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5"9:Vwould you like to change the segment of your bike

;&= (es

;2= 'o

""


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5>9:V&re you satisfied with the services Provided to you by the company

if (es or 'o Why

">


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eason for dissatisfaction

"?


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549:V-o you get spare:parts of your bike easily from the market

;&= (es

;2= 'o

"4


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5E9:VWhat are your main preferences while buying our products

;&= 2rand

;2= Price

;#= )eatures

;-= 1ervice

;+= -ealers advice

;)= Promotion schemes

"E


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SWOT ANALYSIS

SWOT OF HERO HONDA

ero onda motors ltd is highest selling mobike company in India and is the largest

two wheeler manufacturer in the world. &s the case is every company has it strengths

and weaknesses and ero onda Is no +xception9 :

STRENGTHS

%arket *eader in terms of sales and turnover

1uccessful Technical Tie up with onda and a very healthy relationship with them

& wide network of dealers across the nation

& wide network of authori7ed service stations at different parts of the country

& wide veriety of product portfolio

0ery strong brand image of making fuel efficient and reliable bikes

igh product and brand recall among the customers infect hero onda is the first

choice among the majority customers.

>6


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WEA"


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OPPORTUNITIES

. Its a growing market thus company has high growth potential in future

". Premium segment is still not fully exploited with right product %* can do

wonders

#. 'eighboring countries markets are not exploited fully

!. 'eed to tap &frican and +uropean market.

THREATS


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SWOT ANALYSIS OF BAJAJ AUTOMOBILES

STRENGTHS$

2ajaj &utomobiles draws itBs strength from !E years of experience in handling the

ever changing automobile scenario

strong customer relationships

ability to provide the cutting edge technology at best:value:for:money

an excellent service 8 support infrastructure.

WEA?


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OPPORTUNITIES$

The present rate of growth of the &utomobile Industry 8 a large potential

available in these areas provides excellent opportunity for the company to widen

its market.

With the fast growing economy the pricing strategy needs to be tackled with care

as it can decide upon long term decisions of the company.

lobali7ation is yet another opportunity, if followed effectively 8 promptly.

THREATS$

It is natural that threats from the existing as well as new entrants will affect the

present turnover 8 %arket share. The nearest competitors having the identical

product range are the greatest threat to the company.

>C


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PERT ANALYSIS OF AUTOMOBILE INDUSTRY

POLITICAL ANALYSIS

Traditional $0+'%+'T $) I'-I& has considered the automobile industry as a

luxury segment. 2ut reali7ing the growing importance of two:wheelers with the

increasing necessity of personal transportation for the middle class in eighties, priority

was given to the sector by favorable foreign policy. This brought about technology

revolution to the two:wheelers as 3apanese majors entered in technical and financial

participation with Indian majors.

$I has a moderate intervention in the operations of two and three:wheeler industry.

+xcise duty structure, emission control, safety of rider, etc are all policy decisions.

The excise duty on two:wheelers, which previously ranged between cc. This mainly affected

manufacturers of


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Two and three:wheelers sector was the first to be de:controlled from the clutches of

government regulations. This has resulted in the entry of world majors and subseuent

in technology and euity participation with Indian players. This has lead to

technology revolution for the two:wheelers in


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ECONOMICAL ANALYSIS

&utomobile industry is the indicator of the technological health of the country. It also

reflects economical status of a country.

India planners need to consider that the auto industrys one segment that is capable of

very rapid growth unlike traditional areas like agriculture, minerals, chemicals,

energy, textiles, gems etc. While all sectors need to be encouraged, the auto sector is

not only capable of very rapid growth but also of good exports and huge employment.

In the past, auto industry suffered from the stigma of being considered elitist and was

subjected to crippling restrictions and taxation that still hold it back. There is "DA

%$-0&T on the components and 6>A customers duty on imported kits. &fter

production there !"> to 6!A excise duty plus

taxe. 1o every time you buy a car, bike or truck, you give one to government in taxes.

The impact on employment is also little understand.

+very direct or indirect salaries job also generates huge territory employment to the

providers of food, clothing, shelter, health, education entertainment, recreation,

construction etc. accounts of


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If India cut the total taxes on auto by half, there would be a huge immediate boost in

sales and production. If this sacrifice by the governments can generate may times

greater value in jobs and economic activity, this time of crisis is the ideal time to use

autos as a vehicle to kick start the entire economy.

SOCIAL ANALYSIS

The main social factor that associated with automobile industry is the environmental

concerns and +&*T &K&-1, ;including the welfare of workes etc, =in form of

various diseases due to auto pollution. . 1ome of the issues of pollution related to

automobile are discussed below.

?


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FINDINGS

The company offers a good outlook in a long:term perspective. It is expected to

emerge as the top corporate in creating value for shareholders by !DD6:D" if it

manages to sustain the volume growth rate in the near future. %* has been

included in the 21+ 1ensex from 3an !DD! replacing %8%, which is a reflection of

its stranglehold on the domestic automobile market. %* is set to follow a phased

distribution and product strategy .The company being buoyed by the success of its M

$% Project M that has paid off by clocking sales of < mln bikes last fiscalG has initiated

a new programme M 3oy of *eadership M for fiscal !DDA of the rural base with a distinct product positioning. The company is

aggressively cutting costs and are indigenising most of its manufacturing activities .

In the future there will be continued pressure on profitability and sustaining the

market share will be a daunting task.

Towards this end the company has to be consistent in launching successful new

products at regular intervals. It also remains to be seen if it can prevent an erosion in

market share to new competitors such as 2ajaj and T01 1u7uki.

?!


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While the parent has set up a , and with the launch of new products the outgo in terms of

promotional and collaborator expenses will also rise thereby initially affecting the

profit margins. The company pays a royalty of s!DD per motorcycle for product

range upto 1plendor and also for the incremental technology introduced. )or other

models the incremental royalty payments range from 6 A to > A and are valid for a

specific period.

?6


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CONCLUSION


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BIBLIOGRAPHY


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APPENDICES

QUESTIONNAIRE

'&%+9:V::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::

&--++119:

V::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::

:::::::::::::::::::::::::::::::::::::::::

&+9:V::::::::::::::::::::

$##/P&TI$'9:V::::::::::::::::::::::::::::::::::::::::::::::::::::::::::

5


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569:VWould you like to change your bike from any other companys bike in the same

1egment

(C) (es

(D) 'o

5"9:VWould you like to change the segment of your bike

;&= (es

;2= 'o

5>9:V&re you satisfied with the performance of your bike, if (es or 'o Why

5?9:V&re you satisfied with the services Provided to you by the company, if (es or

'o Why

5C9:VWhich facilities would you need

;&= *ow Price

;2= 1ervice 1tation

;#= Incentives

;-= $thers

?C


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549:V-o you get spare:parts of your bike easily from the market

;&= (es

;2= 'o

5E9:VWhat are your main preferences while buying our products

;&= 2rand

;2= Price

;#= )eatures

;-= 1ervice

;+= -ealers advice

;)= Promotion schemes

5

66573113 hero honda comparative study of hero honda motors with bajaj automobiles (2)

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