A

Research proposal on

“A COPPARATINE STUDY ON CONSUMER ATTITUDE TOWARDS PERFORMANCE TWO WHEELERS BIKES”

FORHERO, BAJAJ & TVS

In the partial fulfillment for award of the degree of

MASTER OF BUSINESS ADMINISTRATION

IN

MARKETING

Submitted By:

Harshad trada (127380592055)

Nikhil detroja (127384592014)

Of

NOBLE GROUP OF INSTITUTIONS – JUNAGADH

Guided By:

(Chandani Pathak)

Submitted to:

GUJATRAT TECHNOLOGICAL UNIVERSITY

AHMEDABAD

CONTENTS

Introduction Literature review

Statement of the Problem

Problem statement& Rationale of the Study

Objectives of study

Significance of the study

Research Methodology

I. Research Design

II. Sampling Plan

III. Data Collection

IV. Data Analysis

Chapter wise Schemes

Limitations of the study

Appendix- Questionnaire

Conclusion

TWO WHEELERS INDUSTRY IN INDIA

The main purpose of the study was to know the consumer attitude toward attitude of two wheelers bikes in the

minds of customer. As there are many manufacturing company manufacture two-wheeler bike research is

required to measure present buying behavior at the purchase of hero Honda bike. So the research problem is to

identify what are the criteria that prospective customer takes into consideration before buying the motorcycle.

The two wheeler industry in India is one of the largest in the world and one of the fastest growing globally. India manufacture over 18 million vehicles including four wheeled vehicle) every year. It is the world's second largest manufacturer of motorcycles, there are eight key players in the Indian market that produced 13.8 million units in the year 2010-11.At present the dominant products of the automobile industry are two wheelers with a market share of over 75%. The industry has attained a turnover of more than USD 35 billion & provides direct and indirect employment to over 13 million people.

The two-wheeler industry in India has grown rapidly in the country since the announcement of the process of

liberalization in 1991 by the then finance minister Dr.Manmohan Singh, now Prime Minister of India.

Currently, India is the second largest producer of two-wheelers in the world. It stands next only to China and Japan in terms of the number of two wheelers produced and the sales of two-wheelers respectively. There are many two-wheeler manufacturers in India. The major players in the 2-wheeler industry are Hero ,Bajaj Auto Ltd (Bajaj Auto), TVS Motor Company Ltd (TVS) and Honda Motorcycle & Scooter India, Private Limited (HMSI) accounting for over 93% of the sale in the domestic two wheeler market. It is noteworthy that motorbikes segment’s share is just below 80% of the total 2W market in India which is dominated by Hero Honda with a market share of 59%. Scooter segment’s market share is about 18% which is led by Honda Motorcycle & Scooter India, Private Limited (HMSI) with a market share of 43%.Three- fourth of the total exports in the two wheeler automobile industry are made in the motorcycle segment. Exports are made mainly to South East Asian and SAARC nations.

The level of technology change in the Motor vehicle Industry has been high but, the rate of change in technology has been medium. Investment in the technology by the producers has been high. However, further investment in new technologies will help the players to be more competitive. Currently, India’s increasing per capita disposable income which is expected to rise by 106% by 2015 and growth in exports is playing a major role in the rise and competitiveness of the industry.

The Indian two wheeler industry has come a long way since its humble beginning in 1948 when Bajaj Auto

started importing and selling Vespa scooters in India. Since then, the customer preferences have changed in favor of motorcycles and gearless scooters that score higher on technology, fuel economy and aesthetic appeal, at the expense of metal bodied geared scooters and mopeds. These changes in customer preference have had an impact on the fortunes of the lead manufacturers. The erstwhile leaders have either perished or have significantly lost market share, whereas new leaders have emerged. The two wheeler industry consists of three segments viz., scooters, motorcycles and mopeds. With an expanding market and entry of new players over the last few years, the Indian two wheeler industry is now approaching a stage of maturity. Previously, there were only a handful of two wheeler models available in the country.

The level of technology change in the motor vehicle industry has been high but, the rate of change in technology has been medium. Consumers are very important for the survival of the motor vehicle manufacturing industry. This research paper gives insight of the two wheeler consumer preference in Ahmednagar (Maharashtra) including the different brands, competition and the trends in the domestic sales. The paper also shows the oligopolistic nature of the Indian two wheeler industry and the propensity of the major players to increase their share. It is extremely important to analyze the state of competition to check whether a few firms may increase their dominance and also the implications of after sales services provided by the two wheeler firms to the consumers.

At present the dominant products of the automobile industry are Two Wheelers with a market share of over 75% and passenger cars with a market share of about 16%. Commercial vehicles and three wheelers share about 9% of the market between them. The industry has attained a turnover of more than USD 35 billion and provides direct and indirect employment to over 13 million people.

The Indian two-wheeler industry has come a long way since its humble beginning in 1948 when Bajaj Auto started importing and selling Vespa Scooters in India. Since then, the customer preferences have changed in favor of motorcycles and gearless scooters that score higher on technology, fuel economy and aesthetic appeal, at the expense of metal-bodied geared scooters and mopeds. These changes in customer preferences have had an impact on the fortunes of the Players. The erstwhile leaders have either perished or have significantly lost market share, whereas new leaders have emerged. With an expanding market and entry of new players over the last few years, the Indian two wheeler industry is now approaching a stage of maturity. Previously, there were only a handful of two-wheeler models available in the country.

Consumers are very important for the survival of the Motor Vehicle manufacturing industry. In 2008-09, customer sentiment dropped, which burned on the augmentation in demand of cars. The key to success in the industry is to improve labor productivity, labor flexibility, and capital efficiency. Having quality manpower, infrastructure improvements, and raw material availability also play a major role. Access to latest and most efficient technology and techniques will bring competitive advantage to the major players. Utilizing manufacturing plants to optimum level and understanding implications from the government policies are the essentials in the Automotive Industry of India.

This report “A compara t ive s tudy on consumer attitude towards performance towards two wheelers bikes” gives insight of the industry encompassing its evolution in India, demand drivers, influence of supply side factors, commentary on industry players and competition and the trends in domestic sales and exports. The report also shows the oligopolistic nature of the Indian two wheeler industry and the propensity of the major players to increase their share. In this paper we assess the degree of imperfection in the two-

wheeler industry by using Hirschman- Herfindahl Index (HHI). In a rapidly growing two wheeler industry, especially in developing economies like India, it is extremely important to analyze the state of competition to check whether a few firms may increase their dominance and also the implications of after sale services provided by the two wheeler firms to consumers. An important point also remains to look that why even after being the world’s largest two wheeler industry.

INTOD U CTION OF THE S TUDY

Here in this study, by this research we are trying to analyze about the number of two wheelers and how many people are using two wheeler. What motivates and influence them to buy two wheeler which is the most preferable choice in two wheelers in case of motor cycles and scooters and the most recent two wheelers choice in the market. What are their consumer attitude toward performance of two wheelers bikes which influenced them and the reason to buy?

I talks about Indian two-wheeler industry, reference to Hero Motors, TVs and Bajaj two wheelers. It is not only the market leader in the two wheeler segment in India but also is the number one two wheeler company in the world by volumes. The company’s name is synonymous with fuel-efficient bikes and longevity. The he ro company has a presence in all bike segments viz. economy (CD Deluxe, passion pro) executive (Super Splendor, Splendor+) and premium (Karizma, CBZ), Bajaj company has a (discover, platina, ct 100, xcd, and pulsar) and TVs company has a flame, apache, star city, victor and spot which are the most successful t w o w h e e l e r s b i k e s i n performance of all the two wheeler bikes company.

This project is done on the basis of questionnaire and data collected to know the consumer attitude toward performance of two wheelers bikes. During my project work I gathered some interesting knowledge which I have used in my final project work.

INTRODUCTION OF TWO WHEELERS COMPANY

HERO MOTO.CORP.-

“Hero” is the brand name used by the Munjal brothers for their flagship company, Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda Motors Limited at Dharuhera, India. Munjal family and Honda group both owned 26% stake in the Company.

During the 1980s, the company introduced motorcycles that were popular in India for their fuel economy and low cost. A popular advertising campaign based on the slogan 'Fill it – Shut it – Forget it' that emphasized the motorcycle's fuel efficiency helped the company grow at a double-digit pace since inception. In 2001, the company became the largest two-wheeler manufacturing company in India and globally. It maintains global industry leadership till date. The technology in the bikes of Hero Moto.Corp (earlier Hero Honda) for almost 26 years (1984–2010) has come from the Japanese counterpart Honda.

Hero Honda Motorcycles Limited is an Indian manufacturer of motorcycles and scooters. Hero Honda is a joint venture that began in 1984 between the Hero group of India and Honda from Japan. It has been the world's biggest manufacturer of 2- wheeled motorized vehicles since 2001, when it produced 1.3 million motorbikes in a single year. Hero Honda's Splendor is the world's largest selling motorcycle. Its 2 plants are in Dharuhera and Gurgaon, both in Haryana, India. It specializes in dual use motorcycles that are low powered but very fuel efficient.

The company has sold over 47 million 2-wheelers since its inception in 1984 till March 2013. It sold 6.07 million 2-wheelers in 2012, out of which 5.5 million were motorcycles. Hero Moto.Corp sells more two wheelers than the second, third and fourth placed two-wheeler companies put together.  Its most popular bike Hero Honda Splendor sells more than one million units per year.

In 2013, Hero MotoCorp registered best ever calendar year performance of more than 6.1 million unit sales. By selling 6.25 million units in the month of October, it became the first-ever manufacturer to cross landmark 6 lakh unit sales in a month. In the last quarter of the year or say in the festive season, the company sold more than 1.6 million units, while in non festive time in April–May 2013; it managed to sell out quite good numbers of units- 1.1 million.

Termination of Honda joint venture:-

In December 2010, the board of directors of the Hero Honda Group had decided to terminate the joint venture between Hero Group of India and Honda of Japan in a phased manner. The Hero Group would buy out the 26% stake of the Honda in JV Hero Honda.[14]

Under the joint venture Hero Group could not export to international markets (except Sri Lanka and Nepal) and the termination would mean that Hero Group can now export. Since the beginning, the Hero Group relied on their Japanese partner Honda for the technology in their bikes. So there are concerns that the Hero Group might not be able to sustain the performance of the joint venture alone.

The Japanese auto major will exit the joint venture through a series of off market transactions by giving the Munjal family—that held a 26% stake in the company—an additional 26%. Honda, which also has an independent fully owned two-wheeler subsidiary—Honda Motorcycle and Scooter India (HMSI)—will exit Hero Honda at a discount and get over $1 billion for its stake. The discount will be between 30% and 50% to the current value of Honda's stake as per the price of the stock after the market closed on Wednesday.

The rising differences between the two partners gradually emerged as an irritant. Differences had been brewing for a few years before the split over a variety of issues, ranging from Honda's reluctance to fully and freely share technology with Hero (despite a 10-year technology tie-up that expires in 2014) as well as Indian partner's uneasiness over high royalty payouts to the Japanese company. Another major irritant for Honda was the refusal of Hero Honda (mainly managed by the Munjal family) to merge the company's spare parts business with Honda's new fully owned subsidiary Honda Motorcycle and Scooter India (HMSI).

As per the arrangement, it will be a two-leg deal. In the first part, the Munjal family, led by Brijmohan Lal Munjal group, will form an overseas-incorporated special purpose vehicle (SPV) to buy out Honda's entire stake, which will be backed by bridge loans. This SPV would eventually be thrown open for private equity participation and those in the fray include Warburg Pincus, Kohlberg Kravis Roberts (KKR), TPG, Bain Capital, and Carlyle Group.

Honda will continue to provide technology to Hero Honda motorbikes until 2014 for existing as well as future models.

Formation of Hero Moto Corporation:-

The name of the company was changed from Hero Honda Motors Limited to Hero MotoCorp Limited on July 29, 2011. The new brand identity and logo of Hero MotoCorp were developed by the British firm Olins. The logo was revealed on 9 August 2011 in London, to coincide with the third test match between England and India.

Hero MotoCorp can now export to Latin America, Africa and West Asia. Hero is free to use any vendor for its components instead of just Honda-approved vendors.

2. BAJAJ AUTO LIMITED:-

Bajaj Auto Limited is an Indian two-wheeler and three-wheeler manufacturing company. Bajaj Auto manufactures and sells motorcycles, scooters and auto rickshaws. Bajaj Auto is a part of the Bajaj Group. It was founded by Jamnalal Bajaj in Rajasthan in the 1930s. It is based in Pune, Mumbai, with plants in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttarakhand. The oldest plant at Akurdi (Pune) now houses the R&D centre 'ahead’. Bajaj Auto is the world's third-largest manufacturer of motorcycles and the second-largest in India. It is world’s largest three-wheeler manufacturer.

On 31 March 2013, its market capitalization was INR 520 billion (US$ 9.57 billion), making it India's 23rd largest publicly traded company by market value. The Forbes Global 2000 list for the year 2012 ranked Bajaj Auto at 1,416.

Bajaj Auto came into existence on 29 November 1945 as M/s Bachraj Trading Corporation Private Limited. It started off by selling imported two- and three-wheelers in India. In 1959, it obtained a license from the Government of India to manufacture two-wheelers and three-wheelers. The company had started way back in 1945. Initially it used to import the two wheelers from outside, but from 1959 it started manufacturing of two wheelers in the country. By the year 1970 Bajaj Auto had rolled out their 100,000th vehicle. Bajaj scooters and motor cycles have become an integral part of the Indian milieu and over the years and it became a public limited company in 1960. In 1970, it rolled out its 100,000th vehicle.  In 1977, it sold 100,000 vehicles in a financial year. In 1985, it started producing at Waluj near Aurangabad. In 1986, it sold 500,000 vehicles in a financial year. In 1995, it rolled out its ten millionth vehicles and produced and sold one million vehicles in a year. With the launch of motorcycles in 1986, the company has changed its image from a scooter manufacturer to a two-wheeler manufacturer.

According to the authors of Globality: Competing with Everyone from Everywhere for Everything, Bajaj has operations in 50 countries by creating a line of bikes targeted to the preferences of entry-level buyers. Bajaj Auto limited is one of the largest two wheeler manufacturing company in India apart from producing two wheelers they also manufacture three wheelers. They have come to represent the aspirations of modern India. Bajaj Auto also has a Technical tie up with Kawasaki heavy industries of Japan to produce the latest Motorcycles in India which are of world class quality The Bajaj Kawasaki eliminator has emerged straight out of the drawing board of Kawasaki heavy industries. The core Brand values of Bajaj Auto limited includes Learning, Innovation, Perfection, Speed and Transparency.

Bajaj Auto has three manufacturing units in the country at Akurdi, Waluj and Chakan in Maharashtra, western India, which produced 23, 14,787 vehicles in 2005- 06. The sales are backed by a network of after

sales service and maintenance work shops all over the country. Bajaj Auto has products which cater to every segment of the Indian two wheeler market Bajaj CT 100 Dlx offers a great value for money at the entry level. Similarly Bajaj Discover 125 offers the consumer a great performance without making a big hole in the pocket.

Motorcycles in production are those XCD, Platina, Discover, Pulsar and Avenger. Bajaj also distributes motorcycles in India for other manufacturers, such as the Kawasaki Ninja 250R, the Ninja 650R and new for 2012, the KTM Duke 200.In the FY 2012-13, it sold approx. 3.76 million motorcycles which accounted for 31% of the market share in India. Of these, approx. 2.46 million motorcycles (66%) were sold in India and remaining 34% were exported.

TVS M O T OR COMP A NY:-

Early years:-

Sundaram Clayton, then the flagship company, was founded in 1962 in collaboration with Clayton Dewandre Holdings, United Kingdom. It manufactured brakes, exhausts, compressors and various other automotive parts. The company set up a plant at Hosur in 1978 to manufacture mopeds as part of a new division. A technical collaboration with the Japanese auto giant resulted in the joint-venture Ind Suzuki Limited in 1982 between Sundaram Clayton Ltd and Suzuki Motor Corporation. Commercial production of motorcycles began in 1984.

TVS has been at the forefront in bringing a revolution in the way personal commutation was happening, way back in the 1980s. Beginning with launching a simple, easy-to-use moped for the middle class in India in the 1980s to launching 7 new bikes in a single day (first time in the history of the automotive industry in the world), TVS has often taken the unbeaten path to innovation.

Suzuki relationship:-

TVS and Suzuki shared a 19 year long relationship that was aimed at technology transfer to enable design and manufacture of two-wheelers specifically for the Indian market. Rechristened TVS-Suzuki, the company brought out several models such as the Suzuki Samurai, Suzuki Shogun and Suzuki Fiero. Differences in opinion on how to run the joint venture eventually led to the partners going their separate ways in 2001 with the company being renamed TVS Motor, relinquishing rights to use the Suzuki name. There was also a 30 month moratorium period during which Suzuki promised not to enter the Indian market with competing two-wheelers. The company also got over a period of labor unrest that required Chairman Venu Srinivasan to take tough measures to resurrect a company that was in a state of turmoil. He would go on to invest in new technology, nurture in-house design, and implement Toyota-style quality programs.

Recent:-

Over the years TVS Motor has grown to be the largest in the group, both in terms of size and turnover, with four state of the art manufacturing plants in Hosur, Mysore and Nalagarh in India and Karawang in Indonesia. TVS Motor is credited with many innovations in the Indian automobile industry, notable among them being the introduction of India's first two-seater moped, the TVS 50cc. The company became the leader in its category of sub 100 cc mopeds, having sold 7 million units. It also introduced the TVS Scooty, which is India's second

largest brand in the scooter segment. The TVS Jive launched in November 2009 became India's first clutch-free motorbike aimed at a stress-free rider experience while the unisex scooter TVS Wegois targeted at urban couples, featuring body-balance technology for easier handling. On 1 June 2012, TVS Motors reported a dip of 5% in its total sales for May 2012. In July 2012, TVS Motors and BMW Motored were reported to be in talks for technology sharing. 0n 8 April 2013, BMW Motored and TVS Motor Company signed a cooperation agreement with the aim to develop and produce motorcycles in the segment below 500cc.

In July 2013, TVS Motor announced plans to construct a motorcycle assembly plant in Uganda and to introduce two new models suited to the East African environment. The new plant is expected to become operational in 2014.

The company now develops all types of two-wheelers through its own in house R&D facility and manufactures in three locations in India, Hosur in Tamlnadu, Mysore in Karnataka and Baddi in Himachal Pradesh. It has recently started a new manufacturing plant in Indonesia to cater to the South East Asian market. The Chairman and Managing Director of the Company is Mr. Venu Srinivasan who is the grandson of TV Sundaram Iyengar With steady growth, expansion and diversification, TVS commands a strong presence in manufacturing of two-wheelers, auto components and computer peripherals. We also have vibrant businesses in the distribution of heavy commercial vehicles passenger cars, finance and insurance.

TVS Motor Company Limited, the flagship company of the USD 2.2 billion TVS Group, is the third largest two-wheeler manufacturer in India and among the top ten in the world, with an annual turnover of over USD 650 million. The year 1980 is one to be remembered for the Indian two-wheeler industry, with the roll out of TVS 50, India's first two-seater moped that ushered in an era of affordable personal transportation. For the Indian Automobile sector, it was a breakthrough to be etched in history. TVS Motor Company is the first two-wheeler manufacturer in the world to be honored with the hallmark of Japanese Quality – The Deming Prize for Total Quality Management.

LITERATURE REVIEW

In the review of literature I found that many researchers have contributed to this study about 'Consumer attitude toward performance of two wheeler bikes. Yet, these remain some area on the part of consumer attitude that needs to be taken notice of in my report.

According to Anuj Kumar Kanojia, 2011 in his article explored the impact of consumer attitude on sales of two wheeler in urban areas of India. However, the study also showed that urban and rural regions have different attitude when it comes to selecting the two wheelers bike model.

According to Economic of times Ketan Thakkar, ET Bureau:-

How critical India is to Hero Motor Co's fortunes became evident at the close of the last financial year. The

Japanese company had forecast that it would sell 15.52 million motorcycles and all terrain vehicles (TVs) by

March. It ended up falling marginally short (15.494 million) but that it was even able to get so close to the target

was because its Indian unit grew at a cracking 30% pace. The numbers pretty much tell the story of what...

ICRA EQUITY RESEARCH SERVICE: - HERO MOTOCORP LIMITED Results Update January 20, 2012, Hero Moto. Corp. Limited (HMCL), formerly Hero Honda Motors Limited, is the world’s largest two-wheeler (2W) company in terms of sales volumes, a position that it has been holding for the last nine consecutive years. HMCL was promoted as a joint venture (JV) between the Hero Group of the Munjal family and Honda Motor Company (HMC, Japan), with each holding around 26% equity stake in the company. However, in December 2010, the management of HMCL signed a new licensing agreement with HMC. The Hero Group and HMC agreed to restructure their respective equity positions in HMCL, as part of which, the Hero Group bought out the entire 26% of HMC’s stake in HMCL. HMCL has three manufacturing facilities located at Gurgaon (Haryana), Dharuhera (Haryana) and Haridwar (Uttarakhand) with an aggregate capacity to produce 6..15 million vehicles per annum as of March 31,2011.

Asian Journal of Technology & Management Research / Vol. 01 – Issue: 02 (Jul - Dec 2011) according to him: - Hero Honda has a remarkable share in the market of the two wheeler industry of India. It has recorded more than 41 percent share in the segment during the period. Where Bajaj the local manufacturer of two wheelers has recorded second position sales percentage 26.70 but it is a significant growth during the period. Third place has grabbed by the TVS motors in the segment which has a share of 18.14 percent.

SIAM, Imams Analysis: - Indian two wheeler market, competition is intense with around 10 players

competing for the share in the industry. These players include global giants like Honda, Suzuki and Yamaha as

well as Indian players like Bajaj and TVS. The market leader in the domestic two wheeler industry is Hero

Honda Motors, with a 42 per cent market share. It is the largest two wheeler manufacturer in the world and is

closely followed by Bajaj Auto, which has a 27 per cent market share. TVS Motor is the third largest two

wheeler manufacturer in the country; it has also established a manufacturing facility in Indonesia. Honda Motors

is present in India as Honda Motorcycles and Scooters India Limited (HMSIL), a 100 per cent subsidiary, in

addition to joint venture, Hero Honda. Another international player, its Suzuki, has recently entered the Indian

market through its direct subsidiary. The industry is characterized by frequent product launches, with over 20

models launched in 2006-07.

In the year 1984, Mr. Brijmohan Lal Munjal:-

The Chairman and Managing Director of Hero Honda Motors (HHM), headed an alliance between the Munjal

family and Honda Motor Company Ltd. (HMC). HHM Mission Statement is: “We, at Hero Honda, are

continuously striving for synergy between technology, systems, and human resources to provide products and

services that meet the quality, performance, and price aspirations of our customers.

According to study of Mr. MUKESH KUMAR, SRM SCHOOL OF MANAGEMENT:-

“Hero Honda Motors Ltd., the manufacturer of India Largest selling 100 CC Motorcycles was incorporated on

Jan. 19, 1984. Hero Honda is a successful blend of two unique cultures & world market leaders i.e. Honda

Motor Company of Japan & Hero Group of India. The partnership between Honda’s & Manual’s to manufacture

100 CC Motor bike has been one of the most successful Indian joint Venture ever. HHML has brought to India a

revolution on Two Wheeler by famous advertising campaign “Fill it-Shut It-Forget it “. Today 2 plants of

HHML are located on Delhi-Jaipur highway”.

According to Company, Media Reports, ICRA Hero Honda:-

Hero Honda been adding 500-600 customer touch points every year and has doubled the count from 2,000 in

March 2006 to 4,200 (includes around 800 dealers) in March 2010. To strengthen its presence in the rural

markets, HHML had launched a dedicated rural vertical in 2007 - 08, which took several new marketing

Initiatives including launch of a national-level programmed to direct sales efforts in territories with a population

of 5,000 and above.

Management Punditz: Indian Two Wheeler Industries - 2011-2012:-

Hero Moto Corp is now world’s largest manufacturer of two-wheelers. The company has benefited from the

demand shift to motorcycles, as it focuses solely on this product segment (although has a product called Pleasure

in Scooter segment). With fuel efficiency and riding comfort as the main selling points, HMC has been able to

address a wide market and post robust sales growth even after its separation from the Japanese major Honda.

Honda Motorcycle and Scooter India, Private Limited (HMSI) is the wholly owned Indian subsidiary of Honda

Motor Company, Limited, Japan. Founded in 1999, it was the fourth Honda automotive venture in India, after

Hero Honda, Kinetic Honda Motor Ltd and Honda Siel Cars India. The entry of Honda into the Indian market as

HMSI began with the launch of the Honda Activa, a 100 cc scooter. A slightly modified trendier version of the

Activa was soon launched, as the Honda Dio. Honda Eterno was launched thereafter to add to the portfolio of

HMSI's scooters. The Honda Unicorn was the first motorcycle released by HMSI. The Honda Shine has since

been released.

According to Sriram on LinkedIn.... Shoppers' Stop Ltd:-

In 2000 from the initial investor India Book House Ltd. Sriram stepped...He curated the Kala Ghoda Literature

Festival from 2005 to 2010.Past: AVP (Research& Consulting) at Trans Graph Consulting Pvt. Ltd.,

Senior Analyst at.

(Received 12 September 2009; accepted 23 Janaury2010). Abstract. The purpose of the...Key words: Customer

Evaluation, Brand Image, Quality ... techniques are suggested in the literature to.....Hero Honda Motors Ltd

(HHML), Bajaj. Auto Ltd (Bajaj Auto) and TVS Motor..... Loyalty and positive word-of-mouth.

Nov 25, 2009 ... 13HeroCycles Limited Hero Honda Motors Limited hero Cold..... This has helped Hero Cycles

develop immense brand loyalty and customer satisfaction. ....Hero Cycles was ranked 3rd amongst top Indian

Companies Review2000.... 38 CHAPTER 339 Literature review Ball and Brown (1968) were the first...

May 6, 2008 ... Customer loyalty has been universally recognized as a valuable asset.... Nearly30 years

after loyalty first appeared in the academic literature ... Indica Xeta, Bajaj Pulsar, Hero Honda, CD 100 and gold

coins..... Article: NETTINGLOYALTY Article from: Grocer Article date: October 07, 2000 is…

Nov 30, 2008 ... Customer Value Exchange Loyalty (If Exchange not Applicable)....Songs, Review, Story, MP3,

Download, Trailer, Wallpaper, Picture.... NII invites application for Ph.D. Programmed for the Academic Year

2009-2010.... Bajaj Auto Ltd, India's second-biggest motorcycle and Hero Honda was in the first in the market.

Hero Honda contributes 50% motorcycles to the market. In it Honda holds 46% ... per cent lower than in the

West, have grown at 25% a year between 2000to 2005. ... Environmental issues, web usage, lead management

and customer loyalty.

According to Davis :-

To maximize the customer-brand relationship on review of the literature we see that family decision-making

process has been. These trust levels are not only associated with brand equity and band loyalty but also Hero

Honda being the key player. Bajaj by far is the number one...

We are very excited to launch Audire - the IIM ABC Consulting Review:-

Joint effort of the.....off in other ways: the share of Hero Honda in ... dramatic shift in fortune from March

2000 when it..... Customer base of both the standards by lying out..... Entrepreneurship literature, it is clear that a

key.

Customer's impression regarding such products will enhance the tendency to shift ... because there salting brand

loyalty lowers customers' sensitivity to price. ... Uses of a differentiation strategy are Hero Honda, HLL, in their

1999 Harvard Business Review article "Creating New Market Space".

ST A T E M ENT OF T H E PRO B L E M

In today’s intensely competitive environment, companies today are constantly looking for ways to attract customers by having a better understanding of changing customer attitude towards performance of two wheelers bikes. The ever changing market characteristics have huge impact on corporate decisions. The global environment also poses several complexities to marketer in understanding the market and consumer attitude.

“A COPPARATINE STUDY ON CONSUMER ATTITUDE TOWARDS PERFORMANCE TWO WHEELERS BIKES”

R A TIONALE O F THE STUDY

The Indian two wheeler industry is destined to grow rapidly and therefore, there is always the propensity of the key manufacturers aspiring to increase their share. The two wheeler industry in India is one of the largest in the world and also one of the fastest growing globally. With an expanding market and entry of new players over the last few years, the Industry is now approaching the stage of maturity. Every year a large variety of two wheelers are introduced into the market. In today's competitive environment, many National and Multinational two wheeler industries have gained remarkably by taking notice of consumer preferences, innovative marketing strategies and sales promotion. In two wheeler marketing, relationship with consumer is very important and their cannot be good relationship unless we understand customer preferences well.

In this regard a questionnaire war prepared so as to assess the consumer needs. The ever increasing number of two wheeler models will compel the industry to take notice of consumer buying behavior. This will enable industry to fulfill the customer's desire by giving him exactly what he wants in terms of brand popularity, price range, fuel efficiency, after sales service, model and color of the vehicle.

In the present study I have made an effort to understand the fine aspects of consumer buying preference toward two wheelers bikes. I strongly believe if two wheeler industries understand and cater to the demands of consumer it will develop into a beneficial preposition for both the two wheeler industry as well as the consumers.

NEED OF THE S TUDY

Since it is said “A problem well defined is half solved”. The problem is specified clearly with which aspect it should be carried out.

The title of this project clearly states that the purpose of the study is to know the consumer preference towards performance of different two wheelers bike, the problem is to identify the impact of current marketing strategy on the consumers & the brand positioning of the product. Therefore a research is conducted to give and exposure to this case. The study is an attempt to know what is the exact expectation of customer attitude towards performance of different two wheelers bike in India.

SCOPE OF STUDY

My project was based on the A COMPARATIVE STUDY OF CONSUMER ATTITUDE TOWARD PERFORMANCE OF HERO HONDA, BAJAJ ,TVS BIKES and data was taken in the City Junagadh only.

LIMITATIONS OF STUDY

According to the time limit of our project we can cover only the some area.

During survey some respondents may not give answer in a proper manner.

The views of the people are subjected to bias therefore it may not be reflecting true picture.

Due to the limitation of span of time and limited resource survey was conducted for a period of 8 weeks.

Taking the market conditions into consideration the survey which includes a sample of 90 was respective

one.

BENEFIT OF RESEARCH FOR COMPANY

It will be useful to company to know the consumer attitude towards performance of the two wheelers

bike of different Company.

It is useful to the company in identifying its’ major competitors.

It is also useful to the company in making effective strategies, which can be useful to fight against the

competitors.

It is also useful to the company to know whether there is any need to make changes in the current

policies and practices of the company or not.

OBJECTIVES OF STUDY

The main objectives of the present study are:-

To know consumer attitude towards performance about different two wheelers bike?

To analyze the two wheelers bikes performance?

To identify the factor which influence consumer decision?

To identify possible area of improvement in bike.

To identify the competitive position of various brands of two wheelers in customer mind.

To find our customer’s opinion regarding various aspect of the bike.

To give appropriate suggestion to the company regarding the performance of the bike.

RESEARCH METHODOLOGY

Introduction

Research methodology is a way to systematically solve the research problem, as to how research is

done scientifically. It consist of the different that generally adopted by researcher to study his research

problem along with logic behind them. It is necessary for the researcher to develop certain tests.

Marketing research specifies the information required to address these issues; designs the method for

collection information manages and implements the data collection process; analysis the results and

communication the findings and their implication.

Research definition:

“Research is careful inquiry or examination to discover new information and relationship and to expand

and to verify exiting knowledge,”

Research always starts with questions or a problem. Its purpose is to find answer to questions through the

application of the scientific method. It is a systematic and intensive study directed towards a more

complete knowledge of the subject studies.

The following are the methods adopted for the projects:

1. The Research Design is made as per the requirements of the project.

2. For the secondary data collection, the information in the record of the company proved to be sufficient.

3. For the primary data collection, the researcher has preferred the survey method to the other

methods.

4. In the survey method, the researcher chose to undertaken field work. This is because there is

perception that in the geographical area in which he was to conduct the survey, better and quicker data

was possible to be collected only through direct field work.

5. In the field work, instead of choosing any interviews or recorded observation, the researcher

chose to incorporate all the questions in from of a questionnaire.

RESEARCH DESIGN

“Research design is the plan, structure and strategy of investigation conceived so as to obtain answer to

research question and to control variance.”

- BY KERLINGER

The researcher after choosing the subject, company and the area to conduct his research, decided to establish the theme or the important factor upon which the entire project is to base.

At the outset, the objectives of the project were identified. Thereupon, the conclusive research was undertaken upon consideration, the researcher chose the statistical design as it suited the project’s requirements. This method was warranted as he had decided to embark upon a survey and the analysis and interpretation of the findings of the surveys can only be done properly only if he chose the statistical design.

RESEARCH PROBLEM:-

To know the consumer buying behavior & awareness about the hero bike and in the minds of consumer in

Junagadh city. because always consumer say something and does something. There are many companies

manufacturing motorcycles into the market, at the same time as there are many companies manufacturing

motorcycles, idea about thinking of customer on whether, what, how, and for whom to purchase the

motorcycle.

Therefore, research is required to measure present consumer buying behavior at the purchase of hero bike.

so the researcher problem is to identify what are the criteria that prospective customer takes into

consideration before buying the motorcycles.

At the outset may be noted that there are several ways of studying and tackling a problem. There is no

signal perfect design. The research design can be classified in to true broad categories:

Exploratory

Descriptive

Casual

Exploratory research is focus on the discovery of ideas. Exploratory research is carried out to define problems

and developed hypothesis to test later. An exploratory study is generally based on the secondary data that are reading

available. It does not have to change his focus of direction, depending on the availability of new ideas and

relationship among variables.

Descriptive studies are undertaken in many circumstances. Descriptive studies can be complex, determining a

high degree of scientific skill on the part of the researcher.

Casual research helps in determined cause and effect relationship. Between two or more variables.

The present study seeks to find out the consumers preference towards performance of two wheelers bike.

The study also aims at findings out the drawbacks of the marketing set up of two-wheeler bike. So, this

makes the study a descriptive one.

SOURCE OF DATA

The sources of data collection methods are as follows:-

a) Primary data :-

The primary data is that which details we collect first time from the market and also used first time in the

research. We also say that the information is first time in the research decision. To collect the primary data

questionnaire is prepared structure non-disguise questionnaire is prepared.

Primary data:- Questionnaire

b) Secondary data :-

Secondary data are those data which are already collected by someone for some purpose and are available

for the present study; secondary data are already collected by the company’s records and other library’s

books. When the secondary data are sufficient, the researcher has to be satisfied with the primary sources

of data. Secondary data can be used as bases for comparison with primary data have been collected by

questionnaire.

Secondary data: Magazines, Newspapers, Websites, Books, E-Journals.

Primary data i.e. collected for the first time. It is fresh and originally collected by the survey. I will used only primary data in calculating the study and collect the data.

DATA COLLECTION METHOD

Sampling plan

Sampling is a process of obtaining. The information about the entire population by examine a part of it .The

effectiveness of the research depends on the sample size selected for the survey purpose.

(A)Sampling Unit:-

It means “Who is to be surveyed”. Here target population is decided and it is who are interested to purchase

“Bike” and sampling frame is developed so that everyone in the target population has known chance of being

sampled. So the survey is conducted particularly in JUNAGADH City.

These were 90 respondents.

(B)Sample size:-

For the purpose of proper survey, there is need of perfect research instruments to find out sample size for more

accurate result about buying preference of bike.

(C) Sampling Method:-

A Stratified random sample is one where the population is divided in to mutually exhaustive strata or sub-

group and then a simple random is selected within each of strata on age groups, occupation etc. It may be

noted that stratification does not means absence of randomness. I use a simple random sampling method.

Period of study

The period of the study for this is two months i.e.15-decto 10 Feb.

DATA COLLECTION INSTRUMENT

RESEARCH INSTRUMENT:-

Researcher instruments is the tool by which the researcher can do research on specific problems or objective.

The most popular researcher instrument for collection data is “Questionnaire” for a particular investigation. It is

simple for a moiled set of questions presented to respondents for their answers. Due to this flexibility, it is most

common instrument used to collect the primary data. During the pre- testing of questionnaire, I seen the reaction

of respondents and suggestions required to make change in research instrument.

Data Collection :-

The data will be collected from the respondents using questionnaire by personal interview.

Data Analysis :-

The data analysis will be divided in 2 parts.

First part: will include descriptive statistics and

Second part: will include inferential statistics.

THE QUESTIONNAIRE DESIGN:

The questionnaire has been prepared on the following lines:

The questionnaire includes the entire relevant question so as to provoke and elicit the data from the respondents in a brief manner.

There are some open ended questions which are incorporated in the questionnaire. The reason behind this is to get the subjective data which if otherwise put in the form of a close ended form would

not elicit the answer in a proper form. The questions were able to fully cover the themes concerned.

Analysis of Data through statistical Tools

1. Simple percentage method

2. Correlation Analysis

3. CHI- Square Test

4. Pie diagram

5. Bar diagram

SIMPLE PERCENTAGE METHOD:-

Percentage refers to a special kind of ratio. Percentages are used in making comparison between two or more series of data. Percentages are used to describe relationships. Percentage can also be used to compare the relative terms, the distribution of two (or) more series of data.% of respondents = No. of respondents ÷ Total respondents × 100

ARITHMETIC MEAN:-

Arithmetic mean, average, or mean is the sum of all items divided by the number of items. The weighted value mean is most frequently used in marketing research analysis.

CHI- SQURE ANALYSIS:-

Chi- square test is a non- parametric test. It is used most frequently by marketing researcher to test hypothesis. This is employed for testing hypothesis when distribution of population is not known and when nominal data is to be analyzed.

CORRELATION ANALYSIS:-

Correlation analysis is the statistical technique that is used to describe not only the degree to which are variable is related to another, but also the direction the influence. The coefficient of correlation measures the mutual relationship between two variables. A simple correlation between two variables only and it is usually represented.

The simple correlation indicted whether the change in one variable influences the change in the other variable. Not that the changes may likely to occur in both directions namely:-

1. The increase in one variable is accompanied by the proportionate increase in the other variable.

2. The increase in one variable causes the proportionate decrease in the other variable. In the first cast the variable are said to be positively correlated, while in the second case, the variable are said to be negatively correlated.

BAR DIGAMS:-

Bar diagram consist of bars running either horizontally or vertically with an individual bar for each observation. The individual bars have separate observations and magnitudes. They serve the purpose of showing the rate of change in continuous data. More than two series of data may be depicted by the use of bar diagrams. The positive and negative quantities also are demonstrated with bar diagram.

PIE DIAGRAMS:-

The pie diagram is presented in a circle dividing the chart in different components according to the need of the distinctive data. The slices of the circle are also noted with the name and their percentage share in the total circle of 360 degree.

The questionnaire contains three types of questions.

1 Open-ended question :-

It is helpful in knowing what is uppermost in the mind of the respondents. It gives complete freedom to the

respondent.

2 Dichotomous questions :-

It has only two answers in form ‘yes’ or ‘n’, ‘true’ or ‘false’, ‘use’ or ‘do not use’. So the respondent is offered

two or more choice.

3 Multiple-choice question :-

In this, the respondent is offered two or more choice.

QUESTIONNAIRE

“A comparative study on consumer attitude towards performance of two wheelers bike”

For

( Hero, Honda & Bajaj )

I. Personal data:-

1. Name:________________________________________________________________

2. Gender: M_______ F_______

3. Age Group : (A)18 to 25_____ (B)25 to 40_____

(C) 40 to 55_____ (D) Above 55_____

4. Occupation : (A) Businessman_____ (B) Govt Employee_____ (C) Private Employee _____

(D)Student _____ (E) Retired_____ (F) Farmer_____

5. Annual income : (A)Below 2,00,000_____ (B)2,00,000-4,00,000_____

(C) 4, 00,000-6, 00,000_____ (D) Above 6, 00,000_____

II. Consumer attitude & performance:-

1. Which company’s two wheelers bike do you have?

(A)HERO_____ (B) BAJAJ_____ (C) HONDA_____

2. Which models of two wheelers bike do you have?

HERO: - (A) Splendor +____(B) CD Deluxe_____ (C) Passion Pro_____ (D) CBZ _____ (E) Other_____

BAJAJ: - (A) CT 100_____ (B) Discover_____ (C) Pulsar _____ (D) XCD _____ (E) Other_____

HONDA: - (A) Activa_____ (B) Dream Yugo ____ (C) Shine_____ (D) Unicorn_____ (E) Other_____

3. What is the frequency of your purchase of two wheeler bike?

(A) 0 year – 2 year _____ (B) 2 year – 5 year _____

(C) 5 year – 7 year _____ (D) Above 7 year _____

4. How do you come to know about these two wheeler bike?

(A) Newspaper _____ (B) Television_____ (C) Internet_____

(D) Friends / family_____ (E) Hoardings _____ (F) Road show_____

(F) Other_____

5. For what purpose do you use these two wheelers bike?

(A) Office work_____ (B) personal _____ (C) Enjoyment_____

(D) Race_____ (E) Education_____ (F) Other_____

6. What is a source of finance to purchase a these two wheelers bike?

(A) Cash_____ (B) Bank loan_____

(C)Friend / Relative _____ (D) Installment_____

7. For the following criteria answer these question based upon your preference about these two wheeler bikes.

StronglyAgree

Agree Natural Disagree Strongly

Disagree

A Advertisement influence to choosing a these two wheeler.

B Knowledge about bike before buying.

C The dealers are customer friendly.

D Dealer service is helpful at time to purchase a bike.

E Satisfied with the dealer service after purchase a these two wheeler.

8. Give the rank for following factors of bike based upon your preference with respect of different company’s bike. (1 for more & 7 for less)

    HERO BAJAJ HONDA

A Mileage      

B Price      

C Pick-up      

D Maintenance      

E Look / shape      

F Brand image      

G Road grip      

9. According to you give the rank order different companies two wheeler bike?

(A)HERO_____ (B) BAJAJ _____ (C) HONDA_____

Thank you