PROJECT REPORT

ON

COMPARATIVE STUDY OF HERO HONDA VS BAJAJ

SUBMITTED TO :IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE

AWARD THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION (H.N.B. GARHWAL UNIVERSITY)

SUBMITTED TO: SUBMITTED BY:

MR.HIMANSHU SIR ABHISHEK KUMAR SINGH

FACULTY–MANAGEMENT STUDIES BBA – VTH SEM.

ALPINE INSTITUTE MANAGEMENT & TECNOLOGY, DEHRADUN

BONAFIDE CERTIFICATE

This is to certify that MR. MOHD. UMER is a bonafied student of ALPINE INSTITUTE OF MANAGEMENT & TECHNOLOGY, registered for BBA PROGRAMME for the session 2007-2010. He has under taken winter training at “COMPARATIVE STUDY ON HERO HONDA VS BAJAJ” practical training is a part of BBA program.

DECLARATION

I, Mohd. Umer student of ALPINE INSTITUTE OF MANAGEMENT& TECHNOLOGY,

DEHRADUN Batch 2007-10, hereby declares that this winter training project report

work entitled “COMPARATIVE STUDY ON HERO HONDA VS BAJAJ ” is the out come of

my own research and prepared by me and the same has not been submitted to any

other university or institute for the award of any degree or diploma.

Place: Dehradun [MOHD. UMER]

CONTENTSACKNOWLEDGEMENT

1. Introduction

2. Changing Trend

3. Automobiles as part of life

4. Indian Perspective

5. Objectives of the study

6. Research Methodology

7. Significance and scope of the study

8. Limitations

9. Bajaj Auto Limited – Profile

10. Hero Group – Company Profile

11. Mission

12. Product Gallery

13. Changing Living Standard of People in India

14. Findings – Graphical Representations

15. Conclusion

16. Recommendations

Bibliography

ACKNOWLEDGEMENT

I would be failing in my duty if I do not thank all those

persons who have helped me in successful completion of

this Project Report. Grateful appreciation is offered to all

of them on my behalf. In particular, I acknowledge the

help and encouragement received from my Project

Guide, MR. HIMANSHU SIR who in spite of her busy

schedule dedicated me with him invaluable suggestions

from time to time and helped me in successful

completion of work and for providing me the wonderful

and stimulating environment to work in.

I am sincerely indebted to the Showroom incharge of

Hero Honda and Bajaj Auto Ltd. and also to all my

faculty members. I express my deep gratitude to them

for their kind and unending guidance, right with the

basic information regarding the preparation of project

report.

MOHD. UMER

INTRODUCTION

India has the largest number of two wheelers in the world

with 41.6 million vehicles. India has a mix of 30 percent

automobiles and 70 percent two wheelers in the country.

India was the second largest two wheeler manufacturer in

the world starting in the 1950’s with the birth of Automobile

Products of India (API) that manufactured scooters. API

manufactured the Lambrettas but, another company, Bajaj

Auto Ltd. surpassed API and remained through the turn of

the century from its association with Piaggio of Italy

(manufacturer of Vespa). The license raj that existed

between the1940s to1980s in India, did not allow foreign

companies to enter the market and imports were tightly

controlled. This regulatory maze, before the economic

liberalization, made business easier for local players to have

a seller’s market. Customers in India were forced to wait 12

years to buy a scooter from Bajaj . The CEO of Bajaj

commented that he did not need a marketing department,

only a dispatch department. By the year 1990, Bajaj had a

waiting list that was twenty-six times its annual output for

scooters. The motorcycle segment had the same long wait

times with three manufacturers; Royal Enfield, Ideal Jawa,

and Escorts. Royal Enfield made a 350cc Bullet with the only

fourstroke engine at that time and took the higher end of

the market but, there was little competition for their

customers. Ideal Jawa and Escorts took the middle and lower

end of the market respectively. In the mid-1980s, the Indian

government regulations changed and permitted foreign

companies to enter the Indian market through minority joint

ventures. The two-wheeler market changed with four Indo-

Japanese joint ventures: Hero Honda, TVS Suzuki, Bajaj

Kawasaki and Kinetic Honda. The entry of these foreign

companies changed the Indian market dynamics from the

supply side to the demand side. With a larger selection of

two wheelers on the Indian market, consumers started to

gain influence over the products they bought and raised

higher customer expectations. The industry produced more

models, styling options, prices, and different fuel

efficiencies. The foreign companies new technologies helped

make the products more reliable and with better quality.

Indian companies had to change to keep up with their global

counterparts.

CHANGING TREND

As the Indian economy developing day by day purchasing

power is also increasing day by day .This has been created a

great change in the market and in consumer behaviour also

.If talk about the market of Automobiles

Industry ,purchasing power and development in economy

has brought a revolution in the market . Due to liberalization

competition is also increasing day by day. There are lots of

MNC’s or foreign giants and domestic brands are now

present in the Aotomobile market of India. This has been

bought a great competition in the market. Because now

consumers have lots of option in brands of motorbikes, like

Hero Honda, TVS, Bajaj, Suzuki, Kawasaki etc

So on the basis of above we can say that today it is very

much necessary for the companies that they have to

maintain their quality and quantity in the market and must

have do careful analysis of the changing behavior of the

consumer .If we talk about the motorbikes market Hero

Honda is the biggest brand of motorbikes among other

brands available in the market. If we see some years back

then we find that Hero Honda was dominated in the

motorbikes market, we can say Hero Honda was having the

monopoly in the motorbikes market, But now Hero Honda is

aware ,what is the liking and disliking of consumer of

motorbikes, this is the main motive of my study because

now situations of motorbikes market is totally change.

Today companies are focusing on customers delight as they

know that to retain their customers, only satisfaction is not

enough and they know that they have to give bit extra over

others.

AUTOMOBILES AS PART OF LIFE

Motorcycle travel is becoming more popular in India. A major

advantage of traveling by motorcycle is that you can travel

at your own pace, stopping when you want and where you

want. You can travel to small villages and stop for a picnic in

the middle of nowhere.

A good rule is to never drive at night unless it is essential.

Better to stop a few hours early then to risk the dangers of

night driving in India.

Automobiles have become an indispensable part of our lives,

an extension of the human body that provides us faster,

cheaper and more convenient mobility every passing day.

Behind this betterment go the efforts of those in the

industry, in the form of improvement through technological

research.

What actually lie behind this betterment of the automobiles

are the opinions, requirements, likes and dislikes of those

who use these vehicles.

These wheeled machines affect our lives in ways more than

one. Numerous surveys and research are conducted

throughout the world every now and then to reveal one or

the other aspect of automobiles, be it about the pollution

caused due to vehicle population in cities, or rising motor

accidents and causes, vehicular technology, alternative

medicine and so on.

INDIAN PERSPECTIVE

The feeling of freedom and being one with the Nature comes

only from riding a two wheeler. Indians prefer the two

wheelers because of their small manageable size, low

maintenance, pricing and easy loan repayments. Indian

streets are full of people of all age groups riding a two

wheeler. Motorized two wheelers are seen as a symbol of

status by the populace. Thus, in India, we would see swanky

four wheels jostling with our ever reliable and sturdy steed:

the two wheeler.

OBJECTIVE OF THE STUDY

1. To know the market share of Bajaj & Hero Honda.

2. To know the perception of customers regarding bikes.

3. To determine the customers satisfaction regarding

bikes.

4. To determine the factors influencing the choice of

customers regarding bikes.

5. To study the customers brand preference.

6. To study the features and other facilities provided by

both

brands.

7. To study the sales promotion activities   of both brand

to

increase the sales of two wheeler.

SIGNIFICANCE AND SCOPE OF THE STUDY

Today when consumers are more educated and more capable to

purchase the luxuries for themselves ,and. competition is very

high in the market, then if any company wants to stand in the

market it is mandatory to analyse the market and consumers

time to time. Other wise It is not easy for the companies to cope

up with the challenges of the market . In my study I tried to

analyse the preference of consumers which reflect the

consumers behaviour, because consumer's behaviour is not

static and continuously changes time to time, along with this I

tried to analyse the market trend also. My study is confined to

the Dehra Dun city only if this study have been carried out in

large scale then further descriptive studies of this topic would

definitely help to the companies in making their marketing

strategies and policies

LIMITATIONS

My market research also suffered from several limitations

during the survey. Following were the limitations which

limited my study :

The survey was only confined to Dehradun city only.

Unwillingness on the part of the respondents due to which

it became a tough job to get the questionnaires filled.

Biased information by the dealers as they did not

disclosed the actual facts.

Few respondents were not confident while responding to

some of the questions; specifically in concern with the

services as some of the respondents said they don’t know

about the services provided by the company but still they

are using it.

Time limit was one of the major limiting factors of the

study; the survey was very much time consuming as it

was person-to person interview.

While doing the survey many consumers and dealers

were not cooperative. They were not ready to devote

some time for filling the questionnaire.

RESEARCH METHODOLOGY

RESEARCH PROJECT DEFINED

A study of Motorbikes used by the consumer in Dehradun

and to find out the Consumer’s Preference for Motorbikes in

Dehradun city with special reference to Bajaj and Hero

Honda.

RESEARCH

Research in common parlance refers to a search for

knowledge. One can also define research as a scientific

investigation. The advanced Learner’s dictionary of current

English lays down the meaning of research as “a careful

investigation or inquiry specially though search for new facts

in any branch of knowledge.” Some people consider

research as a movement, movements from unknown to the

known. Research is thus an original contribution to the

existing stock of knowledge making for its advancement.

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the

research problem. It may be understood as a science of

studying how research is done scientifically. The most

desirable approach with regards to the selection of the

research methodology depends on the nature of particular

problem, time and resources available along with the desire

level of accuracy. Much depends upon the skill and aptitude

of the researcher. This project has been undertaken as a

research work and the findings are compiled in the form of

Research Report.

PROBLEM IDENTIFICATION

The research is being conducted to find out the consumer’s

preference and satisfaction level towards different

Motorbikes available in Dehradun city. It is also intended to

find out the factors being considered important by the

customers at the time of purchasing a new motorbikes and it

is also done to find out the consumer’s preference among

the motorbikes available in Dehradun city.

RESEARCH DESIGN

The research design specifies the method for data collection

and data analysis. The research design that I selected for

my research work was descriptive. Descriptive research

includes surveys and fact-finding enquiries of different kinds.

SAMPLE DESIGN

The researcher must decide the way of selecting a sample

or what is popularly known as sample design. In other words

sample design is a definite plan determined before any data

or actually collected for obtaining a sample from a given

population. Sample design is determined before data are

collected. There are many sample designs from which a

researcher can choose. Researcher must select/prepare a

sample design that should be reliable and appropriate for his

research study.

Sampling Plan

To conduct a research, it is important to design proper

sampling plan which includes the following decisions:

Sampling Unit

This takes into account target population that will be

sampled in other words, who are the people to be

surveyed ?

In undertaken research work sampling units are the

respondents belonging to different socio-economic

backgrounds of Dehradun.

Sample area

At which level, one collects the information that is known as

a sample area. There were two type of areas which were

considered, namely

o Consumers of different brands of motorbikes

o Different dealers of motorbikes in Dehradun city.

Sampling Method

I did my sampling by using the convenience sampling

method.

Sample size

This takes into account the number of respondents selected

from the universe those who should be surveyed i.e.,

number of persons who were involved under the collection

are called sample size.

For Consumers :

Area Number of Consumers

Dehradun 90

For Dealers :Area Number of Dealers

Dehradun 10

BAJAJ AUTO LIMITED

Bajaj Auto limited is one of the largest two wheeler

manufacturing company in India apart from producing two

wheelers they also manufacture 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 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 2,314,787 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.

The Bajaj Group is amongst the top 10 business houses in

India. Its footprint stretches over a wide range of industries,

spanning automobiles (two-wheelers and three-wheelers),

home appliances, lighting, iron and steel, insurance, travel

and finance. The group's flagship company, Bajaj Auto, is

ranked as the world's fourth largest two- and three- wheeler

manufacturer and the Bajaj brand is well-known across

several countries in Latin America, Africa, Middle East, South

and South East Asia. Founded in 1926, at the height of

India's movement for independence from the British, the

group has an illustrious history. The integrity, dedication,

resourcefulness and determination to succeed which are

characteristic of the group today, are often traced back to

its birth during those days of relentless devotion to a

common cause. Jamnalal Bajaj, founder of the group, was a

close confidant and disciple of Mahatma Gandhi. In fact,

Gandhiji had adopted him as his son. This close relationship

and his deep involvement in the independence movement

did not leave Jamnalal Bajaj with much time to spend on his

newly launched business venture.

His son, Kamalnayan Bajaj, then 27, took over the reigns of

business in 1942. He too was close to Gandhiji and it was

only after Independence in 1947, that he was able to give

his full attention to the business. Kamalnayan Bajaj not only

consolidated the group, but also diversified into various

manufacturing activities. The present Chairman of the

group, Rahul Bajaj, took charge of the business in 1965.

Under his leadership, the turnover of the Bajaj Auto the

flagship company has gone up from Rs.72 million to

Rs.46.16 billion (USD 936 million), its product portfolio has

expanded and the brand has found a global market. He is

India's one of the most distinguished business leaders and

internationally respected for his business acumen and

entrepreneurial spirit.

New Image

The company, over the last decade has successfully

changed its image from a scooter manufacturer to a two

wheeler manufacturer, product range ranging from

Scooterettes to Scooters to Motorcycle. Its real growth in

numbers has come in the last 4 years after successful

introduction of a few models in the motorcycle segment. The

company is headed by Rahul Bajaj who is worth more than

US$1.5 billion.

India has the largest number of two wheelers in the world

with 41.6 million vehicles. India has a mix of 30 percent

automobiles and 70 percent two wheelers in the country.

India was the second largest two wheeler manufacturer in

the world starting in the 1950’s with the birth of Automobile

Products of India (API) that manufactured scooters. API

manufactured the Lambrettas but, another company, Bajaj

Auto Ltd. surpassed API and remained through the turn of

the century from its association with Piaggio of Italy

(manufacturer of Vespa).

The license raj that existed between the1940s to1980s in

India, did not allow foreign companies to enter the market

and imports were tightly controlled. This regulatory maze,

before the economic liberalization, made business easier for

local players to have a seller’s market. Customers in India

were forced to wait 12 years to buy a scooter from Bajaj.

The CEO of Bajaj commented that he did not need a

marketing department, only a dispatch department. By the

year 1990, Bajaj had a waiting list that was twenty-six times

its annual output for scooters. The motorcycle segment had

the same long wait times with three manufacturers; Royal

Enfield, Ideal Jawa, and Escorts. Royal Enfield made a 350cc

Bullet with the only fourstroke engine at that time and took

the higher end of the market but, there was little

competition for their customers. Ideal Jawa and Escorts took

the middle and lower end of the market respectively. In the

mid-1980s, the Indian government regulations changed and

permitted foreign companies to enter the Indian market

through minority joint ventures. The two-wheeler market

changed with four Indo-Japanese joint ventures: Hero Honda,

TVS Suzuki, Bajaj Kawasaki and Kinetic Honda. The entry of

these foreign companies changed the Indian market

dynamics from the supply side to the demand side. With a

larger selection of twowheelers on the Indian market,

consumers started to gain influence over the products they

bought and raised higher customer expectations. The

industry produced more models, styling options, prices, and

different fuel efficiencies. The foreign companies new

technologies helped make the products more reliable and

with better quality. Indian companies had to change to keep

up with their global counterparts.

Bajaj Pulsar 150cc DTS-i

Pulsar has been major hit in the market; it comes in four

variants: Pulsar 150 DTSi, Pulsar 180 DTSi, Pulsar 200 DTSi

& Pulsar 220 DTSi. Bajaj Pulsar DTSi comes with a throttle

actuated ignitioncontrol system that works in conjunction

with a chip-controlled digital capacitor discharge ignition

(CDI) system for accurate ignition timing under all

conditions. The dual spark design accelerates and evens out

flame propagation, which results in more efficient

combustion and hence leads to better performance. Pulsar's

150cc engine delivers a power output of 13.5bhp at 8000

rpm. It has wonderful pickup with 0-60kmph in 5.66

seconds. It develops a maximum torque of 12.28 Nm @

6500 rpm. It looks great with its mean muscular

aerodynamic shape. Apart from the smashing look, Pulsar

has lighter yet stronger alloy wheels, which when coupled

with the longest wheelbase (1330mm) enhance the stability

of the bike.

VEHICLE SUMMARY Name: Pulsar 150 (2008) Type:

Commuter Top Speed: 113kph OTHER SPECIFICATIONS

Weight: 137.00 kg Ground Clearance: 155.00 mm Fuel Tank:

8.00 ltrs Wheelbase: 1330.00 mm Electrical System: NA

Headlamp: NA Horn: NA 17″ Alloy Single Wheel Type: wheels

Air 2.75 X 18 Wheel Size: Tubeless: 13.90nm@6500rpm 5

Speed 0 NA NA of 1 Colors: Black, Silver, Blue & Red Rear

100/90 X 18 mm

ENGINE SPECIFICATIONS Displacement: 149.01cc 4

Stroke, Engine: Maximum Power: Maximum Torque: Gears:

Clutch: Bore: Stroke: No. Cylinders: Cylinder Cylinder,

Cooled, 2 Plug 13.50ps@8500rpm

NA Configuration: Engine Block NA Material: Chassis

Type: NA Cooling Type: Air Cooling Carburetor: NA

ACTIVE AND PASSIVE SAFETY Suspension(Front):

Telescopic Triple rate Suspension(Rear): springs Brakes:

240mm Disc Brakes(Rear): 130mm Drum Stand Alarm:

DIMENSIONS

COMFORT AND CONVENIENCE Fuel Guage: Digital Self Start:

Tacho Meter: Analogue Trip Meter: None Alloys: Warranty:

NA Speedometer: Digital Passenger Footrest: Passenger

Backrest: Step-up Seat:

BAJAJ MOTORCYCLES

MODEL CAPACITY

Bajaj Avenger 180 CC

Bajaj CT 100 99.27 CC

Bajaj Discover

Bajaj Discover

Bajaj Discover DTSi

111.63 CC

124.52 CC

Bajaj Kawasaki Caliber 111.6 CC

Bajaj Kawasaki Boxer 111.6 CC

Bajaj KB 125 123 CC

Bajaj 4S Champion 99.35 CC

Bajaj Platina 99.27 CC

Bajaj Pulsar DTSi

Pulsar 180 DTS-i UG

Pulsar 150 DTS-i UG

180 CC

150 CC

Bajaj Wind 125 124.6 CC

New Image

The company, over the last decade has successfully

changed its image from a scooter manufacturer to a two

wheeler manufacturer, product range ranging from

Scooterettes to Scooters to Motorcycle. Its real growth in

numbers has come in the last 4 years after successful

introduction of a few models in the motorcycle segment. The

company is headed by Rahul Bajaj who is worth more than

US$1.5 billion.

COMPANY PROFILE – HERO GROUP

“Hero”, is the brand name used by the Munjal brothers in

the year 1956 with the flagship company Hero Cycles. The

two-wheeler manufacturing business of bicycle components

had originally started in the 1940’s and turned into the

world’s largest bicycle manufacturer today. Hero, is a name

synonymous with two-wheelers in India today. The Munjals

roll their own steel, make free wheel bicycle critical

components and have diversified into different ventures like

product design. The Hero Group philosophy is: “To provide

excellent transportation to the common man at easily

affordable prices and to provide total satisfaction in all its

spheres of activity”. The Hero group vision is to build long

lasting relationships with everyone (customers, workers,

dealers and vendors). The Hero Group has a passion for

setting higher standards and “Engineering Satisfaction” is

the prime motivation, way of life and work culture of the

Group. 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. While

doing so, we maintain the highest standards of ethics and

societal responsibilities, constantly innovate products and

processes, and develop teams that keep the momentum

going to take the company to excellence in the new

millennium”. This alliance became one of the most

successful joint ventures in India, until the year 1999 when

HMC had announced a 100% subsidiary, Honda Motorcycle

& Scooter India (HMSI). This announcement caused the HHM

stock price to decrease by 30 percent that same day. Munjal

had to come up with some new strategic decisions as, HMSI

and other foreign new entry companies were causing

increased intensity of rivalry for HHM. == Growth == The

business growth of Hero Honda has been phenomenal

throughout its early days. The Munjal family started a

modest business of bicycle components. Hero Group

expanded big that by 2002 they had sold 86 million bicycles

producing 16000 bicycles a day. Today Hero Honda has an

assembly line of 9 different models of motorcycles available.

It holds the record for most popular bike in the world by

sales.

Its Splendor model. Hero Honda Motors Limited was

established in joint venture with Honda Motors of Japan in

1984, to manufacture motorcycles. It is currently the largest

producer of Two Wheelers in the world. It sold 3 million bikes

in the year 2005-2006. Recently it has also entered in

scooter manufacturing, with its model PLEASURE mainly

aimed at girls. The Hero Group has done business differently

right from the start and that is what has helped them to

achieve break-through in the competitive two-wheeler

market. The Group's low key, but focused, style of

management has earned the company plaudits amidst

investors, employees, vendors and dealers, as also

worldwide recognition. The growth of the Group through the

years has been influenced by a number of factors:

The Hero Group through the Hero Cycles Division was the

first to introduce the concept of just-in-time inventory. The

Group boasts of superb operational efficiencies. Every

assembly line worker operates two machines simultaneously

to save time and improve productivity. The fact that most of

the machines are either developed or fabricated inhouse,

has resulted in low inventory levels. In Hero Cycles Limited,

the just-in-time inventory principle has been working since

the beginning of production in the unit and is functional

even till date.. This is the Japanese style of production and in

India; Hero is probably the only company to have mastered

the art of the just-in-time

HERO HONDA MOTORCYCLESMODEL CAPACITYHero Honda Achiever 149.1 CC

Hero Honda CBZ 156 CC

Hero Honda CD Dawn 97.2 CC

Hero Honda CD Deluxe 97.2 CC

Hero Honda CD 100 97.2 CC

Hero Honda CD 100 SS 97.2 CC

Hero Honda Glamour

Glamour Glamour - FI

124.7 CC124.8 CC

Hero Honda Karizma 223 CC

Hero Honda Passion Plus 97.2 CC

Hero Honda Sleek 97.2 CC

Hero Honda Splendor

Splendor + Super Splendor

97.2 CC124.7 CC

MISSION

Hero Honda’s mission is to strive for synergy between

technology, systems and human resources, to produce

products and services that meet the quality, performance

and price aspirations of its customers. At the same time

maintain the highest standards of ethics and social

responsibilities This mission is what drives Hero Honda to

new heights in excellence and helps the organization forge a

unique and mutually beneficial relationship with all its stake

holders

KEY HIGHLIGHTS

Hero Honda enjoys a significant brand premium. Its

aggressive pricing strategy to take on the competition has

helped it in volume growth. Variant launches in each of

Splendor and Passion has helped in stemming the loss in

market share in the face of the competition. Hero Honda

now plans to launch two new models in the 100cc segment

in FY05 on a new platform. The company has started logging

good volume growth after the launch of Passion Plus and

Splendor Plus as well as the CD-Dawn, which has also

rejuvenated its product range. Volumes should improve

further, due to the base effect and improved rural sentiment

on the back of higher farm incomes. Aggressive cost

controls and significant economies of scale are expected to

aid Hero Honda in retaining margins. Hero Honda will

continue to be an attractive dividend yield play as the

company continues to generate significant free cash flows

as its capital requirements are limited.

PRODUCT GALLERY

AMBITION 135 CC

This bike has a contemporary style with a tubular single

cradle, diamond type which adds extra beauty to it. Over

and above the bike has good acceleration and power with a

maximum power of 11 BHP / 11.15 PS @ 8000 rpm and a

maximum speed of 100 KMPH. It has also been added with

adequate fuel efficiency of 55 KMPL. The Trapezoidal 35 / 35

W headlight gives the ‘woah’ look.

CBZ

Transient Power Fuel Control (TPFC) System Hydraulic

Dampers Gear Box: Equipped with five gears and a 156cc

engine that generates 12.5 bhp powers. Touch the top

speed of 100kmph. Multi Lever Locking Seat Adjustable

Rear-Shock Absorbers & Dynamic Vibration

SPLENDOR+

The Splendor+ has been upgraded in both its looks and

performance. New, clear, bright multi-reflector head light

with 12V 35/35W multi-reflector with halogen lamp, multi-

reflector tail light and stylish graphics. This motorcycle

meets the pollution control standards of this decade. That's

the Splendor+-the new face of trust.

PASSION PLUS

9 New two-tone body colours PLUS Body colour rear

view mirrors PLUS

Aluminum die cast rear grip PLUS Heat protector on the

muffler PLUS New dials on the instrument panel PLUS

Headlight with halogen lamp PLUS Multi-reflector winkers. All

this and much more to make the biker and his bike stay

married forever.

CD DAWN (Value Nayae Zamane Ki!)

CD Dawn, the true-value 4 stroke, 100cc motorcycle. A

motorcycle that encompasses the legendary Hero Honda

values of fuel-efficiency, economy and rock-solid

dependability. Tough Track Suspension Doubly Strong

Tubular Frame Other features - like the legendary mileage,

KARIZMA the first-of-its-kind 2-year warranty in the

category, Superior technology plus advanced features plus

captivating looks equals KARIZMA. The future of the Indian

motorcycle market should be seen through KARIZMA. It is

certain to change the way in which the Indian customer

looks at a premium bike. With a maximum power of 17 PS @

7000 rpm, KARIZMA is targeted at customers seeking to

enjoy the 'thrill of power on wheels of style'. A product of

combined R&D efforts of Hero Honda-Honda, the motorcycle

guarantees exceptional performance with unmatchable style

and utmost comfort.

HEROHONDA BIKE MODELS

Model: Achiver ES Model: Start Model: CBZ Xtreme Kick

Model: CD Dawn Start Model: Glamour Electric Model:

Glamour FI ES Start Model: Glamour FI Kick Start Model: CD

Deluxe Achiver Kick Model: CBZ Xtreme ES

Model: Start

Glamour Kick Model: Hunk ES

Model: Hunk Kick Start

Model: New Karizma

Model: Passion Plus

Model: Pleasure

Model: Splendor NXG Model: Splendor NXG Model: Splendor

Plus (Alloy) Model: Super Splendor (Spoke) Model: Ambition

Model: CBZ

Model: CBZ* Kick Start

Model: Start

CBZ* Electric Model: CD 100 SS

Model: Dawn

Model: Karizma

Model: Passion

Model: Splendor

Model: Street Dlx

Model: KS

Super Splendor

Growth

The business growth of Hero Honda has been phenomenal

throughout its early days. The Munjal family started a

modest business of bicycle components. Hero Group

expanded so big that by 2002 they had sold 86 million

bicycles producing 16000 bicycles a day. Today Hero Honda

has an assembly line of 9 different models of motorcycles

available. It holds the record for most popular bike in the

world by sales for Its Splendor model. Hero Honda Motors

Limited was established in joint venture with Honda Motors

of Japan in 1984, to manufacture motorcycles. It is currently

the largest producer of Two Wheelers in the world. It sold 3

million bikes in the year 2005-2006. Recently it has also

entered in scooter manufacturing, with its model PLEASURE

mainly aimed at girls. The Hero Group has done business

differently right from the start and that is what has helped

them to achieve break-through in the competitive two-

wheeler market. The Group's low key, but focused, style of

management has earned the company plaudits amidst

investors, employees, vendors and dealers, as also

worldwide recognition. The growth of the Group through the

years has been influenced by a number of factors:

Just-in-Time

The Hero Group through the Hero Cycles Division was the

first to introduce the concept of just-in-time inventory. The

Group boasts of superb operational efficiencies. Every

assembly line worker operates two machines simultaneously

to save time and improve productivity.

Ancillarisation

An integral part of the Group strategy of doing business

differently was providing support to ancillary units. There

are over 300 ancillary units today, whose production is

dedicated to Hero's requirements and also a large number of

other vendors, which include some of the better known

companies in the automotive segment. Employee Policy:.

Dealer Network

The relationship of Hero Group with their dealers is unique in

its closeness. The dealers are considered a part of the Hero

family. A nationwide dealer network comprising of over

5,000 outlets, and have a formidable distribution system in

place. Sales agents from Hero travels to all the corners of

the country, visiting dealers and send back daily postcards

with information on the stock position that day, turnover,

fresh purchases, anticipated demand and also competitor

action in the region. The manufacturing units have a

separate department to handle dealer complaints and

problems and the first response is always given in 24 hours.

Financial Planning

The Hero Group benefits from the Group Chairman's

financial acumen and his grasp on technology,

manufacturing and marketing. Group Company, Hero Cycles

Limited has one of the highest labor productivity rates in the

world. In Hero Honda Motors Limited, the focus is on

financial and raw material management and a low employee

turnover.

Quality

Quality at Hero is attained not just by modern plants and

equipment and through latest technology, but by enforcing a

strict discipline. At the Group factories, attaining quality

standards is an everyday practice - a strictly pursued

discipline. It comes from an amalgamation of the latest

technology with deep-rooted experience derived from nearly

four decades of hard labor. It is an attitude that masters the

challenge of growth and change - change in consumers'

perceptions about products and new aspirations arising from

a new generation of buyers.

Diversification

Throughout the years of enormous growth, the Group

Chairman, Mr. Lall has actively looked at diversification. A

considerable level of backward integration in its

manufacturing activities has been ample in the Group's

growth and led to the establishment of the Hero Cycles.

CHANGING LIVING STANDARD OF PEOPLE IN

INDIA

The standard of living in India is constantly improving.

However the gap between the poor and rich is ever more

visible. The single most common indicator which is used to

quantify standard of living is the per capita purchasing

power parity (PPP) adjusted gross domestic product (GDP).

In 2003, the per capita PPP adjusted GDP for India was US$

3100. These figures can be compared to $33,000 for the

USA, $4,900 for China and approximately $26,000 for most

western European nations.

With one of the fastest growing economies in the world,

clocked at an average growth rate of 7% between 2000-

2003, India is fast on way to become a large and globally

important consumer economy. However there is no

indication how the growth rate will narrow the gap between

one of world's richest men, Indian billionaire Lakshmi Mittal,

and the poor woman working so hard in the photo. For

example 70% of the Indian population don't have toilets at

home and usually go to the footpath, farm or any outdoor

place for ablutions. In 2006, 22 percent of Indians lived

under the poverty line, down from 50 percent in 1995. With

consistently high economic growth over the next decade,

however, India is aiming to eradicate poverty by 2020.

The Indian middle class, touted to be anywhere between

100 and 300 million depending on the data used, is fast

becoming used to the Western consumer lifestyle. Though

large disparities exist, the standard of living of the average

Indian is slowly but definitely rising and, if current trends

continue, will grow to be approximately one third that of the

developed world (in PPP dollars) by the middle of the 21st

century.

In the field of technology, India has entered the industry

earning a good reputation, as well as a positive stereotype.

The standard of living refers to the quality and quantity of

goods and services available generally measured by

standards such as income inequality, poverty rate, real (i.e.

to people and the way these services and goods are

distributed within a population. It is inflation adjusted)

income per person. Other measures such as access and

quality of health care, educational standards and social

rights are often used too. Examples are access to certain

goods (such as number of refrigerators per 1000 people), or

measures of health such as life expectancy . It is the ease by

which people living in a country are able to satisfy their

needs.

The idea of a 'standard' may be contrasted with the quality

of life, which takes into dual account not only the material

standard of living, but also other more subjective factors

that contribute to human life, such as leisure, safety,

cultural resources, social life, mental health, environmental

quality issues etc. More complex means of measuring well-

being must be employed to make such judgements, and

these are very often political, thus controversial. Even

among two nations or societies that have similar material

standards of living, quality of life factors may in fact make

one of these places more attractive to a given individual or

group.

There are many factors being considered before measuring

standard of living. Some factors are gross domestic product,

the per capita income, population, infrastructural opment,

stability (political and social), and many other indicators.

DATA ANALYSIS

Q1) Which bike do you have?Hero Honda 52 Bajaj 35Any other 13

Hero Honda Bajaj Any other0

10

20

30

40

50

60 52

35

13

Q2) Which Model do you Have?Hero Honda Bajaj

Splendor21 CT 100 7

Passion 13 Discover 12

Karizma 7 Pulsar 11

Any other 6 Any other 8

Splendor Passion Karizma Any other0

5

10

15

20

2521

13

76

7

1211

8

Hero Honda Bajaj

Q3) In which family Income level do you Fall?100000-200000 22200000-300000 45300000-400000 23above 400000 10

100000-200000 200000-300000 300000-400000 above 4000000

5

10

15

20

25

30

35

40

45

22

45

23

10

4) For how long do you own a bike?0-1 year 341-2 year 292-3 year 26above 3 year 11

0-1 year 1-2 year 2-3 year above 3 year0

5

10

15

20

25

30

3534

2926

11

Q5) For what purpose do you use your Motor Bike?

Hero Honda Bajaj

Office Purpose 9 4Personal purpose 13 15Joy Purpose 19 16Other 6 3

Office Purpose Personal purpose Joy Purpose Other0

2

4

6

8

10

12

14

16

18

20

9

13

19

6

4

1516

3

Hero Honda Bajaj

Q6) How do you come to know about this Motor Bike?

Hero Honda BajajNewspaper 4 2Television 23 16Magazine 2 1Friends & Relative 18 19

Newspaper Television Magazine Friends & Relative0

5

10

15

20

25

4

23

2

18

2

16

1

19

Hero Honda Bajaj

Q7) Does Advertisement Influence your decision in choosing a Motor Bike?Yes 87%No 5%Can’t say 8%

Yes No Cant say0%

10%

20%

30%

40%

50%

60%

70%

80%

90%87%

5%8%

Q8) Do you have full knowledge about Bikes before buying?

Hero Honda BajajYes 25 23No 22 15

Hero Honda Bajaj0

5

10

15

20

25

252322

15

Yes No

Q9) Which Factor below Influence your decision?

Hero Honda BajajPrice 72% 78%Mileage 78% 64%Quality 65% 48%Resale Value 40% 28%Status symbol l10% 7%

Price Mileage Quality Resale Value Status symbol0%

10%

20%

30%

40%

50%

60%

70%

80% 72%78%

65%

40%

0%

78%

64%

48%

28%

7%

Hero Honda Bajaj

Q10) How would you rate the following factors of Bikes with respect to different company?

Hero Honda BajajMileage 74% 72%Price 68% 65%Pick up 70% 80%Maintenance 58% 62%Look & Shape 85% 80%Brand Image 53% 55%

Mile

agePric

e

Pick up

Maintenance

Look &

Shape

Brand Im

age0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

74%68% 70%

58%

85%

53%

72%65%

80%

62%

80%

55%

Hero Honda Bajaj

Q11) If new Bike with good features comes in, then would you like to change your bike?

Hero Honda BajajYes 19 21No 17 14Can’t say 11 3

Yes No Can’t say0

5

10

15

20

25

1917

11

21

14

3

Hero Honda Bajaj

CONCLUSION

Due to economic development purchasing power of peoples

increasing day by day. Therefore market of consumer

durable or white goods expanding day by day. By the policy

of liberalization lots of MNC’s are now present in the market

this has been create a competition in the market we can say

rivalry like situation is aroused between the companies. I

found maximum number of Hero Honda consumers, this

shows the monopoly of Hero Honda in old days but now

situation is changed. Although Bajaj & TVS are giving more

features as compare to Hero Honda but also there is image

of Hero Honda is much more in the mind of the consumers.

Definitely Bajaj is the second one in this segment and doing

a much more in comparison to other bikes. In my research

report I came to know that the price and the mileage are the

biggest factors in the purchase decision of the consumers.

And the schemes that are provided by the company also

affect the purchase decision but not more in comparison to

brand image.

Automobile industry has a large potential in all the segments

like four wheelers and even in two wheelers in Indian

market. For my study I have taken two highly competitive

automobile in India that is Hero Honda and Bajaj Auto. Both

of them have captured the Indian market with its own

unique features, such as looks, efficiency, mileage, technical

specification etc. Both the products have approximately

same pricing strategy. They make different in their features

& performance on road. But all said and done, in the 150cc

segment on the marketing front Pulsar 150 DTSi kicked off

Hero Honda Hunk, but in core biking (by which I mean

quality, handling and reliability) Hunk kicked off Pulsar and

there is no debate to this. Still better I would say, ask an

owner who who owns a Hunk for 2 years or so, he is still a

happy man to have spent very little on maintenance and the

Pulsar 150cc DTSi owner would have changed clutch plates,

shock absorbers and is already looking for an upgrade of

Pulsar (if he is a diehard Pulsar fan) or some other better

model. The spares of Bajaj maybe cheaper than Honda but

even Auto Car India acknowledged that Bajaj as a whole

suffers from quality problems. In the last I want to conclude

stating that there is a passion towards cars in India. But

there is still higher passion towards bike among youngsters.

Both the companies need to work more towards technical

efficiency which suits Indian roads.

1. Most of the Pulsar, CBZ & Karizma are purchased by

young generation of 18 to 30 age group because they

prefer stylish looks and rest of the models of Hero

Honda are purchased more by daily users who needs

more average of bikes than looks.

2. Hero Honda is considered to be most fuel-efficient bike

on Indian roads.

3. Service & Spare parts are available throughout India in

local markets also.

4. While buying a motorcycle, economy is the main

consideration in form of maintenance cost, fuel

efficiency.

5. Majority of the respondent had bought their motorcycle

more than 3 years.

RECOMMENDATIONS

1. Bajaj should introduce some more models having more

engine power.

2. Hero Honda should think about fuel efficiency in case of

upper segment bikes.

3. More service centers should be opened.

4. Maintenance cost and the availability of the spare parts

should also be given due importance.

5. They also introduce some good finance/discount

schemes for students.

6. The price should be economic.

BIBLIOGRAPHY

Annual Report – Hero Honda

Annual Report – Bajaj Auto Ltd.

www.bajajauto.com

www.herogroup.com

QUESTIONNAIRE

NAME: - …………………..…………………………………CONTACT NO …………………………………………….

AGE:- 15-20 25.30 20-25 Above 30

OCCUPATION:- Businessman Student

Employee Other

======================================================

Q1) Which bike do you have?

Hero Honda

Bajaj

Any Other

Q2) Which Model do you Have?

Hero Honda Splender Passion Karizma Any other

Bajaj CT 100 Discover Pulsar Any

other

Q3) In which family Income level do you Fall?

100000-200000

200000-300000

300000-400000

above 400000

Q4) For how long do you own a bike?

0-1 year

1-2 year

2-3 year

above 3 year

Q5) For what purpose do you use your Motor Bike?

Office Purpose

Personal purpose

Joy Purpose

Other

Q6) How do you come to know about this Motor Bike?

Newspaper

Television

Magazine

Friends & Relative

Q7) Does Advertisement Influence your decision in choosing a Motor Bike?

Yes No Cant say

Q8) Do you have full knowledge about Bikes before buying?

Hero Honda Yes No

Bajaj Yes No

Q9) Which Factor below Influence your decision?

Hero Honda Price Mileage Quality

Resale Value Status symbol

Bajaj Company Name Price

Mileage

Quality Resale Value Status symbol

Q10) How would you rate the following factors of Bikes with respect to different company?

Hero Honda Mileage Price Pick up

Maintenance Look & Shape Brand Image

Bajaj Company Name Mileage Price Pick up Maintenance Look & Shape Brand Image

Q11) If new Bike with good features comes in, then would you like to change your bike?

Hero Honda Bajaj

Q12) Any Suggestions for Company

………………………………………………………………………………………

………………………………………………………………………………………

……………………………………………………………………………………