a study on two wheeler bike in

A study on two wheeler bike in the Rural Area

INDUSTRY PROFILE:-

1.1 Introduction of Automobile industry:-

The automotive industry design, develop, manufacturer, market and sales

the worlds motor vehicles. In 2008-09 more the 70 million motor vehicle

including cars and commercial vehicles were produced world wide.

In the 2008-09 the automobile industry produced over the 70 million

vehicle, and employed over the 9 million people and represented over 5% of

world total manufacturing employment. In 2008-09, the global vehicle

registrations reach nearly 901 million vehicle.

The largest market of Europe is the 35%

North America 32.6%

Asia is the 23.8%

South Africa 4.6%

The middle east and Africa 3.6%

The fastest growing market for automobiles are china, India, Russia, and

brazil. In 2008 with rapidly rising oil prices, industries such as the

automotive industries are experiencing a combination of pricing pressures

fro row material cost and change in consumer buying habit. The industry is

also facing to increase external competition from the public transport sector

as the consumer re-evaluate their private vehicle usage.

1The S.P.B. college of Business Administration


In the automobile industry there are a many players as the Hero Honda

motor limited, Bajaj auto limited, TVS motor company limited. The other

players of the two wheeler industry as the kinetic motor company limited,

kinetic engineering limited, LML, Yamaha motors India limited, Majestic

Auto limited, Royal Enfield, and Hero Honda motorcycle and scooter

private limited.

There are a various models of the different companies as the following

Hero Honda:-

CD 100

Hero Honda Sleek

Splendor

Hero Honda Street

CBZ

Passion

Ambition

CD Down

Splendor plus

Passion plus

Karizma

CBZ star(*)

Ambition 135

Super splendor

CD Deluxe

Glamour

Achiever

TVS:-



TVS Centra

TVS Fiero

TVS S Apache

TVS Victor

TVS star

TVS scooty pep

Bajaj:-

Bajaj avenger

Bajaj CT 100

Bajaj platina

Bajaj Discover dtsi

Bajaj pulsar dtsi

Bajaj wave

Bajaj wind 125

Yamaha:-

Yamaha G5

Yamaha cruxs

Yamaha gladiator

Kinetic:-

Kinetic Aquila

Kinetic boss

Kinetic challenger

Kinetic comet

Kinetic GF

1.3 Automobile industry in India



The Indian automobile Industry consist of five segment: commercial

vehicles, multi utility vehicles, and passenger cars, two-wheeler, three

wheeler, tractors.

The automobile industry in India the tenth largest in the world with the

annual production of the approximately 2 million unit expected to become

one of the major global automotive industries in coming year. A number of

the domestic companies produce to the automobile industry in india and

growing presence of multi national investment to has increase in over all

growth.

De-licensing in 1991 has put the Indian automobile industry on a new

growth track, attracting foreign auto gains to setup the production facilities

in the country to take advantage of various benefit it's offers. this took that

Indian automobile production from the 5.3 million unit in the 2001-02 to

10.8 million unit in 2007-08. the other reason is to be attracting global auto

manufacture to Indian are the country's large class population, growing

earning power, strong technology capability and availability of trained

manpower at competitive price.

1.4 TWO-WHEELER INDUSTRIES



India is the second largest two-wheeler manufacture in the world and

largest manufacture in the in the world. Indian two-wheeler segment include

in a range of vehicle such as the scoter-geared and unguarded, moped and

motorcycle. In india there are a 3 scooter manufactures, and 3 moped

manufacture, Hero Honda, TVS, Bajaj Auto, Suzuki, Yamaha, etc are

leading manufacturer. They have also dominated the global area after

piaggo. production of the automobile industry during the financial year

2008-2009 is 17.22 million

Production of the two-wheeler automobile industry

Year Production (in units) of two

wheelers ( in million)

2004-2005 6.52

2005-2006 7.60

2006-2007 10.78

2007-2008 13.58

2008-2009 17.22

Sales of the two-wheeler bike in the Indian market



Year Total sales (in units) of two

wheelers (in million)

2004-2005 6.20

2005-2006 7.05

2006-2007 11.42

2007-2008 7.86

2008-2009 12.16

Export of the two-wheeler bike in the Indian market

Year Total exports (in units) of two

wheelers (in lakhs)

2004-2005 3,66,407

2005-2006 5,13,256

2006-2007 9,25,464

2007-2008 11,20,103

2008-2009 13,18,308

1.2 HISTORY OF HERO HONDA



Hero Honda is worlds third largest two wheeler maker. India has the

largest no of the two wheeler in the world with 41.6 million vehicles. India

has a mix 30% of the automobiles and 70% of the two wheeler in the

country. India was the second largest two wheeler manufacture in the world

starting in the 1950 birth of the (Automobile product of India)API that

manufactured the scooter.

What started out as a Joint Venture between Hero Group, the world's

largest bicycle manufacturers and the Honda Motor Company of Japan, has

today become the World's single largest two wheeler Company. Coming into

existence on January 19, 1984, Hero Honda Motors Limited gave India

nothing less than a revolution on two-wheels, made even more famous by

the 'Fill it - Shut it - Forget it ' campaign.

In the words of Mr. Brijmohan Lall Munjal, the Chairman and

Managing Director, "We will continue to make every effort required for the

development of the motorcycle industry, through new product development,

technological innovation, investment in equipment and facilities and through

and through efficient management."

2.1 COMPANY PROFILE



Type:- Public company

Founded:- January 19, 1989

Headquarter:- Hariyana, India

Key people:- Brijmohan lall Monjal (Chairman & managing director)

Industry:- Automobile industry

Product:- Motorcycle, Scooter



Hero Honda motorcycle limited is an Indian manufacture of the

motorcycle and scooters. Hero Honda is a joint venture began 1984 between

the Hero group of India from Japan. It has world biggest manufacturer of

two-wheeled motorized vehicle since 2001. when it is produced 1.3 million

motorbikes in a single year.

India has largest number of the two-wheeler in the world with 41.6

million vehicles. India has a mix 30% of the automobiles and 70% two-

wheeler in the country. India has a second largest two-wheeler manufacturer

in the world starting 1950s with birth automobile product of India (API) that

manufacture scooters.

In the 1980s, the Indian government regulation changed and permitted

foreign companies to enter the Indian market through minority join venture

as the: Hero Honda, TVS, Suzuki, Bajaj kawasaki, and kinetic Honda etc.

The entry of the foreign companies charged the Indian market dynamic from

the supply and demand side. With a large selection of two-wheelers on the

Indian market, consumer started to be gain influence over the products they

bought and raised higher consumer expectation. The industry produce more

models, styling option, price and different fuel efficiencies. The foreign

companies have to new technology helped make the product more reliable

and with their better quality. Indian companies had to changed keep up with

their global.

During the 80's Hero Honda became the first companies in India to prove

that it was possible to drive a vehicle without polluting roads. The company

introduced to new generation of the motorcycle that set the industry



benchmark for fuel thrift and low emission. Hero Honda sold the million

bike purely on the commitment of increase the mileage. Hero Honda has

consistently grown at double digit since inception; and today every second

motorcycle sold in the country as the Hero Honda. Every 30 second,

someone in India buys Hero Honda's top selling motorcycle splendor.

Hero Honda value relationship with the customers. It's unique CRM

(customer relationship management) initiative – Hero Honda passport

program, one of the largest program of this kind of the world. The program

has not only helped Hero Honda understand to it's customer and deliver

value as different price points.

Vision:-

The vision was driven by the Hero Honda commitment to customer

quality, and excellence and while doing so maintain, the highest

standard of ethics and societal responsibilities.

Mission:-

Hero Honda mission is to strive for synergy between technology,

system and human resources to produce products and service that

meet quality, perfomance and price aspiration of it's of it's customer.

At the same time maintain the highest standard of ethics and

responsibilities.

Objective & goal:-

" To provide the excellent transportation to the common man at easily

affordable price and provide total satisfaction in all it's spheres

activity.



" The objective of the Hero Honda company is to focus on the

customer, providing reliable, and affordable mobility for the stake

holders, like supplier, employees, society and environment at large.

1.3 Milestone:-

1983

Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan,

signed.

Shareholders Agreements signed.

1984

Company incorporated.

Technical collaboration signed.

1985

First motorcycle (Model CD 100) produced.

200 motorcycles per day production.

1986

Quality circles launched.

1987

Engine plant started.

1989 New motorcycle model - "Sleek" introduced.

1991

New motorcycle model - "CD 100 SS" introduced.

5,00,000 motorcycle produced.

Mobile Service Workshop launched.

1992



A school named Raman Kant Vidya Mandir inaugurated in memory

of the first Managing Director of Hero Honda Motors Limited.

1993

Sponsored Hero Group - Five Nations Cricket Tournament

1994

New motorcycle model – "Splendor" introduced.

1,000,000 motorcycle introduced.

1997

New motorcycle model - "Street" introduced.

Foundation stone of Raman Munjal Vikas Kendra foundation stone

laid by Chief Minister of Haryana.

1998

2,00,000 motorcycle produced.

1999

New motorcycle model – "CBZ" introduced.

Sponsored '7th World Cup Cricket tournament' at England.

2000

4,00,000th motorcycle produced.

"Hero Honda passport programme" – CRM programme launched.

Appointed Sourav Ganguly, & Hrithik Roshan are brand ambassadors.

Sponsored '20th Cinema Express Award'

2001

New motorcycle model – "Passion" introduced.

5,00,000th motorcycle produced.

2002

New motorcycle model – "Down" introduced.

New motorcycle model – "Ambition" introduced.



Appointed Virender sehwag, Mohmad kaif, Yuvraj singh, Harbhajan

singh, and Zaheer khan as the brand ambassadors.

Mr. Pawan Munjal, Managing Director of Hero Honda Motors Ltd.

2003

Become the first Indian company to crossed the cumulative 7 million

sales mark.

New motorcycle model – " CD Down" introduced.

New motorcycle model – " Splendor plus" introduced.

New motorcycle model – "Passion plus" introduced.

New motorcycle model – "Karizma" introduced.

2004

Crossed sales in over the 2 million unit in a single year, a global

record.

Splendor – World's largest selling motorcycle crossed the 5 million

mark.

New motorcycle mode – "CBZ*" introduced.

New motorcycle mode – "Ambition 135" introduced.

Joint technical agreement with Honda renewed.

Total sales crossed a 10 million motorcycle.

2005

Hero Honda is the world largest No 1 two-wheeler company for the 4

year in row.

New motorcycle model – "Super splendor" introduced.

New motorcycle model – "CD Deluxe" introduced.

New motorcycle model – "Glamour" introduced.

New motorcycle model – "Achiever" introduced.

First scooter model from Hero Honda –"Pleasure" introduced.



2006


year in row.

2008


year in row.

New motorcycle model – "splendor NXG" introduced.

2009

New motorcycle model – "Hunk" launched.

New motorcycle model – "Karizma - ZMR" launched.

1.4 AWARDS:-

1991

Economic Times – Harvard business school awards for corporate

performance for Hero Honda motor limited.

1992

Honorary membership – Indian institution of industrial engineering.

1994

Businessman of the year by business India.

1995

National awards for outstanding contribution to the development of

Indian small scale industry.

1999

National productivity awards for the best productivity awards in the

category of automobile and tractor presented by the vice president of

India.

2001



Winner of the reviews 200 Asia's leading companies awards(9th rank

amongst the top 10 Indian companies)

2002

Winner of the reviews 200 Asia's leading companies awards(4th rank


Entrepreneur of the year award by business standard.

Business leadership awards Madras Management Association.

2003

Winner of the reviews 200 Asia's leading companies awards(3rd rank


2004

Corporate excellent award 2004 by Indian institute of material

management.

2005

Awaaz consumer award 2005 – India's most preferred two-wheeler

brand by the CNBC in the automobile category.

Bike maker of the year award by overdrive magazine.

2006

The NDTV profit car India & Bike India award in 2006 in the

following category.

Bike of the year – Achiever.

Bike of the year – Achiever (up to 150cc category.)

Bike of the year Glamour (up to 125cc category)

No 1 automobile industry by TNS corporate social responsibility

awards.

2007

Bike of the year award CBZ X -treme by overdrive magazine.



The NDTV profit car India & Bike India award in 2006 in the

following category.

Over all bike of the year CBZ X- treme.

Bike of the year CBZ X- treme up to (150cc category)

2008

NDTV profit business leadership awards year 2008.

Top gear design awards 2008 – Hunk bike of the year award.

NDTV profit car India & bike India awards – Bike manufacturer of

the year.

2009

NDTV profit business leadership awards year 2009 – two-wheeler

category.

Two-wheeler manufacturer of the year – By NDTV profit car & bike

award 2009.

2010

Company of the year awarded by economic times awards for

corporate excellence 2008-09.

CNBC TV 18 overdrive Awards 2010 "Hall of fame" to splendor.



3.1 CUSTOMER BUYING BEHAVIOR

The main aim of the marketing is to meet and satisfy target customer

need and wants buyer behavior refers to the peoples of organization conduct

activity and together with impact of various influence on them towards



making decision on purchase of product and service in a market. The field of

the customer behavior studies how individuals, group and organization

select, buy, use and dispose of goods, service, ideas or experience to

satisfied their needs and desire understanding consumer behavior and

knowing customer are never simple. The wealth of products and service

produced in a company make our economy strong. The behavior of human

being during the purchase is being termed as ''Buyer behavior". Customer

one says one thing but do another. They may not be in touch with their

deeper motivations. They are responding to influence that chain their mind

at the last minute. A buyer makes take a decision whether save or spend the

money.

"Buyer behavior is all psychological, social and physical behaviors of

potential customer as they become aware of evaluate, purchase, consumer

and tell others about product & service."

3.2 CONSUMER BUYING DECISION PROCESS:-

There are a following five stage in consumer buying process.

3.2.1 Problem Identification:-

The buying process start with when buyer recognizes a problem or need. The

need can be internal or external stimuli. Marketers need to identify the

circumstance that trigger a particular need. By gathering information from

number of the customers, marketers can identify the most frequent stimuli

that spark and interest in a product category. They can then develop

marketing strategies that trigger consumer interest.



3.2.2 Information search:-

The consumer tries to collect the information regarding various products and

service. through gathering the information, the consumer learn about

completing brand and their features. Information may be collected from

magazine, newspaper, retailer, friends, family, members, telephone

dictionary, business association, etc. marketers should find out the sources

of information and their relative degree of important to consumers.

Personal sources:- Family, friends, neighbor, etc.

Commercial sources:- Advertising, sales person, dealers, packaging.

Public sources:- mass media, consumer, rating organizations.

3.2.3 Evaluation of alternative:-

There is a no single process used by all consumers by one consumer in all

situations. There is several first, the consumer processes, some basic concept

are:

First the consumer is trying to satisfy needs.

Second, the consumer is looking for certain benefit for product solutions.

The marketer must know which criteria the consumer will use in the

purchase decision.

3.2.4 Choice of purchasing decision:-

From among the purchase of alternatives the consumer make solution. it

may be to buy or not. If the decision is to buy . the other additional decision

are :

Which type of bike he must buy?

From whom to buy a bike?

How the payment to be made? And so on



The marketers up to this stage has tried every means to influence the

purchase behavior, but the choice is properly consumers. In the evaluation

stage the consumer forms preference among the brand in the choice set. The

consumer may also form an intension to but the most preferred brand.

3.2.5 Post Purchase Behavior:-

After purchase the product, the consumer will experience the same level of

product. The marketer's job not end when the is buying must monitor post-

purchase satisfaction, post- purchase action, post purchase use and disposal.

(1) Post purchase action:-

The customer, satisfaction or dissatisfaction with the product influence

subsequent behavior. if the customer satisfied, he or she will exhibit a higher

probability of purchasing the product again. Dissatisfaction of consumer

may abandon and return the product.

(2) Post-purchase use or disposal:-

The marketer should also monitor new buyers use dispose of the product. If

the consumer store the product in a close, the product is probably not very

satisfying. If the consumer throws the product away, the marketers needs to

know how they dispose of it; especially it can be hurt the environment.

3.3 characteristic of buyer behaviors:-

The chief characteristics of the buyer behavior are as follow:-

It consist of mental and physical activities which consumer undertake

to get goods and services and obtain satisfaction from them.



It includes both observable activities such as the walking through the

market to examine merchandise and making a purchase and mental

activities such as forming attitudes, perceiving advertising material,

and learning to prefer particular brands.

Consumer behavior are very complex and dynamic to constantly

changing. And therefore, management need to adjust with the change

otherwise market may be lot.

The individuals specific behavior in the market place is affected by

internal factor, such as need, motives, perception, attitudes, as well as

by external of environmental influence such as the family, social

groups, culture, economics and business influences.



4.1 SWOT ANALYSIS:-



Strength:-

Ability to understand customer's need and wants.

Recognized and established brand name.

Effective advertising capability.

Weakness:-

R&D is not close to the Hero manufacturing plant.

Hero is vulnerable in the joint venture.

Honda motor company has to much power.

Opportunity:-

Global expansion in to the Caribbean and central America.

Expansion of the target market

Becomes India's leader in the scooter market.

Threats:-

Honda motorcycle and scooter India can take away market share and

cause joint venture.

Bajaj motors is a strong competitor.



5.1 Introduction:-



"Marketing research means the systematic gathering, recording,

analyzing of the data about problem relating to the marketing of goods and

service"

Marketing research has proved an essential tools to make all the needs of

marketing management. Marketing research therefore is the scientific

process of gathering and analyzing of marketing information to meet the

need of marketing management. But the gathering of observation is must be

systematic. The systematic conduct of research requires:-

Orderliness, in which the measurements are accurate.

Impartiality in analysis and interpretation.

All the research can be categorized in to basic and applied.

1. BASIC RESEARCH:- Basic research is that intended to expand the body

of knowledge for the use of other.

2. APPLIED RESEARCH:- Applied research is one, which is carried out to

find the solution for a particular problem or for guiding a specific decision.

It is usually private in nature.

5.2 Objective of study:-

To study automobile industry.

To study the marketing practices of followed by rural area.

To study the buyer behavior of rural consumer regarding two-

wheelers.



To identify the place of purchase and measure the satisfaction level of

rural buyer.

5.3 Benefits of the study:-

It will help to the company for evaluating the various products and

services of Hero Honda bike.

The company would be able to design various schemes and service of

the Hero Honda bike.

The company would be able to understand the consumer need's and

preference.

5.4 Process of the Marketing Research:-

The marketing research is done in the systematic process. I have pursued

the below process of the marketing study at Hero Honda.



5.4.1 Problem Identification:-

The first and the most important step of marketing research is properly

defining the problem. In order to identify the research problem two

categories of problem should be carefully noticed.


Research Design

Data Collection

Data Analysis & Interpretation

Research Report

Problem Identification


Here the researcher's problem are:-

The awareness of two wheeler bike is very less.

The price of the various products of two wheeler bike are high.

A number of the customers are not satisfied with services, new

scheme and offers.

5.4.2 RESEARCH DESIGN:-

Research design indicates the method and procedure of conducting

research study. Research design can be done in the following three types:-

1. Exploratory Research:-

Exploratory research focus on the discovery of new ideas and is

generally based on the secondary data.

2. Descriptive Research:-

Descriptive research is undertaken when the researcher want to know the

characteristics of certain groups.

3. Causal or Experimental research:-

An experimental research is undertaken to identify causes and effect

relationship between two variables.

The research design is: Descriptive research design

5.4.3 Data Collection and Sampling:-



(A) Sources of data collection:-

Basically there are a two types of data i.e. secondary and primary

(I) Primary data collection:-

Primary data collection contains the following four types method:-

(1) Observation method:-

It contains causal observation, systematic observation, direct

observation, and contrived observation.

(2) Experimental Method.

(3) Panel Method.

(II) Secondary data collection:-

It can be collected from internal and external sources.

1. Internal sources:-

Various internal sources like employee, books, sales activity, stock

availability, product cost, etc.

2. External sources:-

Libraries, trade publication, literatures, etc are some important

sources of external data. The researcher has used primary data for the

core purpose the project and primary data has been gathered by survey

method. The researcher has also used secondary data.

(B) Data collection tools:-



To conduct a survey, the researcher has selected a structured

questionnaire as an instruction for gathering valuable information from

the customers. Questionnaire, which is used for the survey, is consisting

of questions and checklist questions to check the customer feedback.

(C) Sampling plan:-

The researcher has design a sampling plan that is consist of five

decisions.

(I) Sampling unit:-

Who is to be surveyed?

The researcher has selected youngsters, businessman, and housewives in

the rural area.

(II) Sampling type:-

There are a two types of the sampling i.e. probability sampling and

Non -. Probability sampling

(i) Probability sampling:-

Probability sampling means each unit of the universe has equal

chance of getting selected. The most frequently used Probability

sampling method are as below:

(A) Simple Random Sampling.

(B) Stratified Random Sampling.

(C) Multi-stage Random Sampling.

(D) Cluster Sampling.

(E) Multi – phase Sampling.

(F) Replicated Sampling.



(II) Non – Probability sampling:-

Non – probability sampling contains following methods:-

(A) Judgment sampling.

(B) Convenience sampling.

(C) Panel sampling.

(D) Quota sampling.

For this purpose the researcher has used non probability convenience

sampling.

(III) Sample size:

Sample size means limited number of the respondent cover under the

research study from a population and the researcher has taken a survey 100

respondent to know the buying behavior of the customer.

(Iv) Sampling area:-

The researcher's area for survey was:

Kosad

Chaprabhata

(V) Sampling unit:-

Here the researcher has randomly selected the respondent of the rural

area of kosad and chaprabhata.



Qu-1 Age group wise classification

Age Number of respondent Percentage

18-25

25-35

35-50

Above 50

Total



Qu-02 Occupation wise classification

Occupation No of respondent Percentage

Student 22 22%

Self business 32 32%

Businessman 12 12%

Service 34 34%

Total 100 100%

2232

12

34

100

0

20

40

60

80

100

RE

SP

ON

DE

NT

ST UDE NT SE LF BUSINE SS BUSINE SSNE SMAN SE RVICE T OT AL

OCCUPATION

OCCUPATION WISE DISTRIBUTION

RESPONDENT

Interpretation



The graph indicate to the 34% respondent are the service people, and

32% are the self business, and 22% are the student, and 12% are the

businessman who have to purchase the bike.

Qu-03 Education wise classification

Education No of respondent Percentage

S.S.C 5 2.5%

H.S.C 35 17.5%

Graduate 20 10%

Post-Graduate 40 20%

Total 100 100%

RESPONDENT

535

20

40

100

Interpretation

The above table 40 respondent are post graduate and



Qu-04 Do you have a own bike?

Answer No of respondent Percentage

Yes 88 88%

No 12 12%

Total 100 100%

88

12

0

20

40

60

80

100

RE

SP

ON

DE

NT

YES NO

ANSWERE

DO YOU HAVE BIKE

RESPONDENT

Interpretation

In the above table there is a 88% respondent have to a bike and 12%

respondent have to not the own bike.



Qu-05


a study on two wheeler bike in

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