Acknowledgement 12

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SUMMER TRAINING PROJECT REPORT

ON

A STUDY OF CONSUMER BUYING BEHAVIOUR

OF BIKES WITH SPECIFIED REFERENCE TO

HONDA

Submitted in partial fulfillment of the requirementfor the award of the degree of

Master of BusinessAdministration

UNDER THE GUIDANCE OF

Mr.

Faculty Guide

SUBMITTED BY

MBA III Sem.


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INTEGRAL UNIVERSITYLUCKNOW


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A STUDY OF CONSUMER BUYING BEHAVIOUR OF BIKES

WITH SPECIFIED REFERENCE TO HONDA

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Certificate by Organization

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Name of the Candidate 1 Roll No.00000


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ACKNOWLEDGEMENT

This work bears the inputs of many persons whose valuable assistance and insight

suggestions have made this Report worthy.

With sincere thoughts and a deep sense of gratitude firstly I would like to take the

opportunity to express my sincere thanks to my faculty guide Mr. . (Faculty

Guide) whom able guidance helped me to give present shape of the Report.

At last I would like to express my adoration and regards to my parents and all family

members for their patience, courageous and consistent motivation and affection for me to

surpass the hurdles during this time

Name ..

Roll. No.

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EXECUTIVE SUMMARY

As an integral part of my academic studies of Master Of Business

Administration , I have done a survey on the topic of .. among different

categories of people .

My project is based on the customer`s preferences towards two wheelers .I have done

a survey with the help of questionnaire prepared by me in the following report .I have

tried to find out what are the customer preferences in two wheelers.

I have tried to find out the future prospect of HMSI in Lucknow.

I have tried my best to collect useful information , analyze and present an unbiased

and impeccable report.

This project is a study of market potential of Honda. The rational behind this particular

study is to find out the present market scenario of various brands & to find out the

corporate need and perception. It was a pleasurable experience to conduct a research on

behalf of Honda pertaining to the study of the Automobile Sector.

To carry out this research a sample study was pursued where the target was made to the

people of Lucknow. Various statistical and analytical tools and techniques are applied to

ascertain and depict the present scenario.

Conclusion and there by recommendation has been arrived at by proper and justified

interpretation of the result derived from the above said analytical tools and techniques.

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TABLE OF CONTENT

Objectives of Study

Brief Profile of the company

Brief history of the company

Vision /Mission of the Company

Organization Chart

Details of Product/services

Corporate Strategy

Future Planning

Conceptual Description (Consumer Buying Behaviour)

Definition of Buyer Behaviour

Consumer Buying Decision Process

Characteristics of Buyer Behaviour

Research Methodology

Data Analysis and Interpretation

Findings

Limitations of Study

Conclusion

Recommendations

References

Annexure

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Questionnaire

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Objective ofthe

Study

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OBJECTIVES OF THE STUDY

To know the brand preference/company preference of the consumers.

To know who is the decision maker in the family for purchasing bike.

To know the mode of payment to purchase bike.

To know the factors which influence the consumers to purchase bike.

To know the schemes which are liked most by the consumers.

To know the features which are liked most by the consumers.

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Brief Profile ofthe Company

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INTRODUCTION OF INDUSTERY

Throughout the centuries man has striven to expand his capabilities through the use of

machine. His ever inventive mind has constantly devised ways to use tool to increase his

abilities to explore the world around him. To go faster, deeper, higher and further than

before. Coupled with his need to find new thrills, new adventures and new modes of

transportation, the invention refinement of the motorcycle seems an inevitable out come.

It would seem that Michelangelo conceived of the bicycle as early 14 th century. And his

drawing shows a remarkable resemblance to he modern day bike. It had wheels of similar

size and even pedals and chain. Albeit without any apparent means of steering.

Through never built, it was a remarkably clever design, and early bicycle makers would

have done well to study his concepts, there have, in fact been 4 machines built based on

his drawing, attesting to the viability of his design.

It wasnt until 1869 that the first serious attempts were made to produce motor driven

bicycles. These very first were powered by steam, and driven by leather belts or as in the

case of the roper steam velocipede of 1869 by a system of levers attached to a crank on

the driven wheel.

In 1885 the Daimler, Europe this is consider by many as the first true motorcycle or

motor bicycle, as it was the first to employ an internal combustion engine and was

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-designed from the ground up to be motor powered. Designed by gottlibe Daimler it was

powered by an Otto cycle engine producing about horse powers. Note this design again

employed wooden wheels and Daimler

dropped the twist grip controls from his 1877 design in favor of leavers on the frame.

In 1894 Hildebrand and Wolfmuller, France Worlds first production motorcycle. It came

with a 1428 cc water cooled four-stroke motor producing 2.5 bhp. And speed of 25 mph.

In 1898 orient-Aster, USA the American made production motorcycle was this entry

built by the Metz Company, in Waltham, mass, it used an aster engine that was a French

copy of the Metz Company, in Waltham, mass.

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Brief History

The history of the Honda brand is nothing more than the history of our challenges and

achievements in creating values, invariably ahead of our time. It is also the history of the

dreams of each of our associates that have come true and have been shared by people

around the world.

Background of Honda

The history of Honda Motorcycle Corporation Limited (HMCL) dates back to 1946,

when Soichiro Honda, a mechanical engineer, established the Honda Technical Research

Institute in Hamamatsu, Japan. The idea was to develop and later produce small two-

cycle motorbike engines. Hondas first product, an A-type 50cc bicycle engine, was

produced in 1947.

In 1948, HMCL was incorporated with a capital of one million yen. Soon, the company

started to design and produce lightweight motorcycles. Hondas first motor cycle, D-type

two stroke 98cc, was produced in 1949. In the early fifties, the headquarters of the

company was shifted from Hamamatsu to Tokyo and the company got listed on the

Tokyo Stock Exchange.

In 1959, the American Honda Motor Company Inc. was established in Los Angeles. The

American venture started modestly with a staff of six and sales figure barely touching

200 motorcycles. In 1963, American Honda launched the You meet the nicest people on

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-a Honda advertising campaign, which revolutionized the US motorcycle industry. A few

years later, Honda established motorcycle assembly plants in Germany and Belgium.

During the 1960s, HMCL expanded its product line by introducing light trucks, compact

cars, out board motors, power generators and several new models of motorcycles and

motor scooters. New production units were started in Thailand, UK, Malaysia and

cumulative motorcycle production reached 10 million units by 1968. During the 1970s,

HMCL entered the Philippines, Indonesia and Brazil.

In 1972, HMCL introduced the higher-priced and more powerful car Honda Accord. By

the mid 1980s, Honda had emerged as the third largest Japanese automaker behind

Toyota and Nissan.

History of Honda in India

Kinetic Honda

Kinetic, founded by H.K. Firodia in 1972 was primarily in the Moped Market. Its Luna

became a huge success with the middle class sector in India.

In 1985 Honda and Kinetic tied up to form Kinetic Honda Motors Ltd. The companys

primary business was to manufacture scooters. The KH-100, the first gearless, self start

and auto choke scooter in India was a huge success.

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Honda

The other joint venture agreement between HMCL and the Hero Group resulted in

formation of Hero Honda Motors Limited (HHML) in 1984. HMCL held a 23 per cent

equity stake in the joint venture. The Indian motorcycle market was very sluggish at that

time. Many Indian consumers were of the opinion that scooters were much safer than

motorcycles.

In 1985, HHML launched the Hero Honda CD-100 motorcycles, the first four-stroke bike

in India. Its unique features such as a four-stroke engine, fuel efficiency (approximately

80 km/l) and low emission made the model a runaway success with Indian customers.

2.3 Government Policies

Under the regulated regime (1940-1990), foreign companies were not allowed to operate

in India and imports were strictly controlled. It was a sellers market with the waiting

period for getting a Bajaj scooter being as long as 12 years. The motorcycle segment was

no different, with only three manufacturers Enfield, Ideal Jawa and Escorts. The

motorcycle segment was initially dominated by the Enfield 350cc motorcycle and Escorts

175cc motorcycle.

The scenario began to change in the mid-1980s when the Indian Government started

permitting foreign companies to enter the market through minority joint ventures. The

then market leaders Escorts and Enfield were caught unawares by the onslaught of

100cc bikes from four Indo-Japanese joint ventures Hero Honda, TVS Suzuki, Bajaj

Kawasaki and Kinetic Honda. With the availability of fuel efficient low power bikes,

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-demand swelled, resulting in Hero Honda then the only producer of four stroke bikes

(100cc category) gaining the top slot.

What are Hondas options

In 1991, after the economic liberalization Honda did not have any obligation to operate in

India through partners. Honda was the proven leader in two wheeler industry. Through

joint ventures Hondas brand name was firmly established in India. It did not needed

much brand building in India. Besides it had gained sufficient experience and

understanding of the Indian market by now.

At this point, Honda had three options:

Continue with the existing partners This no longer being a regulatory

requirement was not the best option at this point. Honda had enough expertise,

experience and brand image to go independently in India.

Buy Stakes of the Partner One option was for Honda to buy the stakes in their

partner. Honda did this with their partner Sriram. Honda tried to buy stakes in Kinetic

Honda but it did not work out.

Sell Stakes and Start on its own Honda could sell its stakes in the existing JVs

and enter the market on its own.

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COMPANY PROFILE

Cycles and Honda Motor Company ofJapan linked their joint venture in India in April

1984, few could have imagined that the two would go on to create history and become

the subject of a case study at business schools, internationally.

But that's the Honda saga. In a little over two decades, the world's largest manufacturer

of bicycles and the global leader in motorcycles have created not only the world's single

largest motorcycle company but also the most endearing and successful joint venture

for Honda Motor Company worldwide. The company has sold over 15 million

motorcycles and has consistently grown at double digits since its inception and today,

every second motorcycle sold in the country is a Honda.

In two decades, Honda has built two world-class manufacturing facilities at Dharuhera

and Gurgaon in Haryana that now churn out over 3 million bikes per year. In this period,

Honda has set up over2400 customer touch points, comprising a mix of dealers, service

centres and stockists across rural and urban India. Today, Honda is an amalgam of

winning networks and relationships with internal and external stakeholders, including

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-Investors, Dealers, Vendors and Employees. These relationships have helped the

company hold on to the mantle of World No.1 for years in succession.

Honda has relied on 3 R's-- Reach, Research and Reliability as its basic building

blocks. Using feedback from the market, a fully-equipped R&D center has consistently

created best practices in designing, testing and harmonization, besides placing strong

emphasis on road safety and ride quality. This emphasis has helped Honda build

products that are ahead of their time.

In the 1980s, for example, Honda became the first company in India to prove that it was

possible to drive a vehicle without polluting the roads. The company introduced new

generation motorcycles that set industry benchmarks for fuel thrift and low emission. A

legendary 'Fill it - Shut it - Forget it' CAMPAIGN captured the imagination of

commuters across India, and Honda sold millions of bikes purely on the commitment of

increased mileage.

Honda was also one of India 's first automotive companies to get close to the customer.

As Brijmohan Lall Munjal, the Chairman, Honda Motors succinctly puts it, "We

pioneered India's motorcycle industry, and it's our responsibility now to take the

industry to the next level. We'll do all it takes to reach there.''

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-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 wheeler in the country.

India was the second largest two wheeler manufacturer in the world starting in the1950s

with the birth of Automobile products of India (API) that manufactured scooters. API

manufactured the lambrettas but, another company, Baja Auto Ltd. Surpassed API and

remained through the turn of the century from its association with piaggio of Italy

(manufactured of vespa)

The license raj that existed between the 1940s and 1980s in India. Did not allow foreign

companies to enter the market and imports were tightly controlled. 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.

In the mid-1980s, the Indian government regulation 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: Honda, TVS Suzuki, Bajaj

Kawasaki and Kinetic Honda. The entry of these foreign companies changed the Indian

market dynamics from the supply demand side. With a larger selection of two-wheelers

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

and raised higher customer expectations. The industry produced more models, styling

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-options, price, 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.

Honda sold millions of bikes purely on the commitment of increased mileage. Honda

has consistently grown at double digits since inception; and today, every second

motorcycle sold in the country is a Honda. Every 30 seconds, someone in India buys

Honda's top -selling motorcycle - Splendor. This festive season, the company sold half a

million two wheelers in a single month-a feat unparalleled in global automotive history.

Honda values its relationship with customers. Its unique CRM initiative - Honda

Passport Program, one of the largest programs of this kind in the world, has over 3

million members on its roster. The program has not only helped Honda understand its

customers and deliver value at different price points, but has also created a loyal

community of brand ambassadors.

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VISION

"We, at the Honda Group 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 the customers. While doing so, we

maintain the highest standards of ethics and societal responsibilities, constantly

innovate products and processes, and develop teams that keeps the momentum going

to take the group to excellence in everything we do."

MISSION

Its our mission to strive for synergy between technology, systems and human

resources, to produce products and services."

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PRODUCTS AND SERVICES

Pleasure - Scooter with 102 cc air-cooled four-stroke engine.

Karizma - Motorbike with 223 cc four-stroke air-cooled engine.

Super Splendor - Motorcycle with 125 cc four-stroke air cooled engine

Splendor + - Motorbike with 97 cc four stroke air cooled engine.

Glamour - Motorbike with 125 cc (9 bhp) "quantum core" engine

Passion + - Motorbike with 97 cc four stroke air-cooled engine.

CD Deluxe - Motorbike with 97 cc four-stroke air cooled engine.

CD 100 SS - Motorbike with 97 cc four-stroke air-cooled engine.

CD Dawn - Motorcycle with 97 cc four-stroke air-cooled engine.

Achiever - Motorcycle with 149 cc four-stroke air-cooled engine.

CBZ Xtreme Motorcycle with 150 cc four-stroke air-cooled engine.

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CORPORATE STRATEGY

Automobile Industry

Superior fuel economy

Optimum safety

Driving Pleasure

World Wide

Motorcycle Industry

Build product close to customer

28 plant, 21 countries, R&D 6 Countries

Plant Business

First business of Honda

Expanded

11 Plant, 9 Countries, Sold 156 countries, used by 5.5m people

ASIMA

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FUTURE PLANNING

ASIMO

ASIMO is a symbol of Honda's advanced technology, and a member of Honda's fourth

line of mobility creations, after motorcycles, automobiles and general power products.

ASIMO is an achievement in the evolution of 'Human Walk' technology. This

technology, called I-Walk*, enables ASIMO to move back and forth, vary its pace, step

right and left and walk along an '8' shape path. ASIMO can also move in more complex

ways, such as waving its hands while walking.This humanoid robot has put Honda at the

front of cutting edge technology that promises to improve the quality of our lives.

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Key Highlights

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. 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

Honda in retaining margins.

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

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Key Policies of Honda

Environment Policy:

Integrate environmental attributes and cleaner production in all business processes

and practices with specific consideration to substitution of hazardous chemicals,

where viable and strengthen the greening of supply chain.

Continue product innovations to improve environmental compatibility.

Comply with all applicable environmental legislation and also controlling our

environmental discharges through the principles of "alara" (as low as reasonably

achievable).

Institutionalise resource conservation, in particular, in the areas of oil, water,

electrical energy, paints and chemicals

Quality Policy:

Innovation in products processes and services.

Continuous improvement in total quality management systems.

Teamwork and responsibility

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Safety Policy:

Integrating safety and health matters in all activities.

Ensuring compliance with all applicable legislative requirements.

Empowering employees to ensure safety in their respective work places.

Promoting safety and health awareness amongst employees, suppliers and

contractors.

Continuous improvements in safety performance through precautions besides

participation and training of employees.

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AWARDS

2011 "Indian Motorcycle of the Year 2011 (IMOTY)

Jury:BS Motoring , Bike India , BBC Top Gear ,

Overdrive , AutoBild India ."

Bike of the Year CNBC TV18 Overdrive

Awards 2011

Bike of the Year - Bloomberg/UTV Autocar

Award 2011

Viewers Choice Award: Bike of the Year -

Bloomberg / UTV Autocar Awards 2011.

CB Twister

"The Most Awarded

Motorcycle of the Year

- 2011"

Bike of the Year - BS Motoring Award 2011.

Bike of the Year upto 110CC Bike India.

Motorcycle upto 110CC - NDTV Car & Bike

Awards 2011.

Premium 100CC Motorcycle - Zigwheels Awards.

Entry Level Motorcycle of the Year - Auto Bild

Golden Steering Awards

CB Unicorn Dazzler

Motorcycle upto 160CC NDTV Car & Bike

Awards 2011.

Sporty Motorcycle upto 180CC Zigwheels

Awards .

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Premium Motorcycle of the Year - Auto Bild

Golden Steering Awards

VFR 1200F Superbike of the Year ? TopGear

Automotive Technology of the Year - Zigwheels

Awards ( for Dual Clutch Transmission)

Brand Honda

" - Most Reliable Brand

- Advanced Technology Brand

By Auto India Best Brand Survey Awards 2011"

Motorsport Honoured for 'Promoting 2Wheeler racing in India'

2010 Brand " - Most Reliable Brand

- Advance Technology

- Quality

By Apollo Auto India Best Brand Awards 2010"

Trusted Brand Award (Gold) for Two-wheeler:

Readers' Digest

CB1000RImport Two - Wheeler of the Year NDTV Profit

Car & Bike Awards 2010

CB1000R Import Bike of the Year - AutoCar Awards 2010

CBR1000RR FirebladePerformance Bike of the Year - CNBC

TV 18 Overdrive Awards 2010

2009 CBF Stunner Bike of the Year - NDTV Profit Award 2009

Aviator Scooter of the Year - NDTV Profit Award 2009

Activa Scooter of the Year - ET ZigWheels Awards 2009

2008 Aviator Scooter of the Year - Zigwheels.com

CBF Stunner Motorcycle of the Year (125 CC) - Zigwheels.com

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Activa

Scooter Customers Satisfaction No.1 - CNBC

TV18 - Auto Car "Auto Awards 2008

Brand -Well Made Bike 2008

-Advanced Technology 2008

-Overall 2008

-Eco-Friendliness 2008

-Resale Value 2008

By Apollo Tyres - Auto India "Best Brand Survey

Awards 2008"

2007 EternoBest automobile brand of India 2007

(Planman Media)

Activa

Best automobile brand of India 2007

(Planman Media)

2006 ShineTNS Voice of The customer

Award 2006 (TNS)

2005 UnicornMotorcycle of theYear 2005 (B.S.Motoring&

Autocar)

Unicorn

TNS Voice of the Customer Award

(TNS)

Eterno

Scooter of the

Year 2005 (B.S.Motoring &

Overdrive)

2004 EternoBest Scooter of the Year (B S. Motoring &

ICICI Bank, Overdrive Magazine)

2003 DioScooter of the

Year 2003 (BBC)

2002 Activa Scooter of the Year by Overdrive Magazine

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2001 Activa Scooter of the Year 2001 (BS Motoring)

ConsumerBuying

Behavior

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CONSUMER BUYING BEHVIOUR

The main aim of marketing is meet and satisfy target customers need and wants buyer

behavior refers to the peoples or organization conduct activities and together with the

impact of various influence on them towards making decision on purchase of product and

service in a market. The field of consumer behavior studies how individuals, groups and

organization select, buy, use and dispse of goods, service, ideas, or experience to satisfy

their needs and desires understanding consumer behavior and knowing customer are

never simple. The wealth of products and service produced in a country make our

economy strong. The behavior of human being during the purchase is being termed as

Buyer Behavior. Customer says one thing but do another. They may not be in touch

with their deeper motivations. They are responding to influences that change their mind

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

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Definition of Buyer Behavior:-

Buyer behavior is all psychological, Social and physical behaviors of potential

customers as they become aware of evaluate, purchase, consume and tell others about

product & service.

Consumer Buying Decision Process

There are following five stages in consumer buying decision process.

1. Problem identification:-

The buying process starts when the buyer recognizes a problem or need. The need can be

triggered by internal or external stimuli. Marketers need to identify the circumstances that

trigger a particular need. By gathering information from a number of consumers,

Marketers can identify the most frequent stimuli that spark an interest in a product

category. They can then develop marketing strategies that trigger consumer interest.

2.Information Search:-

The consumer tries to collect information regarding various products/service. Through

gathering information, the consumer learns about completing brands and their features.

Information may be collected form magazines, catalogues, retailers, friends, family

members, business association, commercial, chamber of commerce, telephone directory,

tradefair etc. Marketers should find out the source of information and their relative degree

of importance to the consumes.

Personal Sources: Family, friends, neighbor, as quittances.

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Commercial Source: Advertising, sales persons, dealers, packaging & display.

Public sources: Mass media, consumer, rating organizations.

Experimental sources: Handling. Examine, using the product.

3.Evaluation of alternative:-

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

situations. There is several First, the consumer processes, some basic concepts are:

First, the consumer is trying to satisfy need.

Second, the consumer is looking for certain benefits from the product solutions.

The marketer must know which criteria the consumer will use in the purchase decision.

4.Choice of purchasing decision:-

From among the purchase of alternatives the consumer makes the solution. It may be to

buy or not to buy. If the decision is to buy. The other additional decisions are:

Which types of bike he must buy?

From whom to buy a bike?

How the payment to be made? And so on.

The marketer up to this stage has tried every means to influence the purchase behavior,

but the choice is properly consumers. In the evaluation stage the consumer forms

preferences among the brands in the choice set. The consumer may also form an intention

to but the most preferred brand.

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5.Post Purchase Behavior:-

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

Marketers job not end when the product is buying must monitor post-purchase

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

Post Purchase Satisfaction:-

The buyers satisfaction is a function of closeness between the buyers expectation

and the products perceiver performance. The larger the gap between expectation and

performance, the greater the consumer dissatisfaction.

Post purchase Action:-

The Consumers satisfaction or dissatisfaction with the product influence subsequent

behavior. If the consumer satisfied, he or she will exhibit a higher probability of

purchasing the product again. Dissatisfaction consumer may abandon and return the

product.

Post-Purchase Use or Disposal:-

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

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

the consumer throws the product away, the marketer needs to know how they dispose

of it; especially it can be hurt the environment.

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Characteristic of Buyer Behaviors

The chief characteristics of the buyers behaviors are as follow:-

(1) It consists of mental and physical activities which consumers undertake to get goods

and services and obtain satisfaction from them.

(2) It includes both observable activities such as walking through the market to examine

merchandise and making a purchase and mental activities-such as forming attitudes,

perceiving advertising material, and learning to prefer particular brands.

(3) Consumer behaviors are very complex and dynamic to constantly changing. And

therefore, management need to adjust with the change otherwise market may be lot.

(4) The individuals specific behaviors in the market place is affected by internal factor,

such as need , motives, perception, and attitudes, as well as by external of enviourmenatal

influences such as the family social groups, culture, economics and business influences.

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SOME IMPORTANT TERMINOLOGIES

Market

The term market may be considered as a convenient meeting place where buyers and

sellers gather together for the exchange of goods and services. Market means a group of

people having unmet wants, purchasing power to make their demand effective and the

will to spend their income to fulfill those wants. Today a market is equated with the total

demand.

The American marketing association defines a market, as the aggregate demand of

potential buyers for a product or service. Under keen competition, a marketer wants to

create or capture and retain the market i.e. customer demand through an appropriate

marketing mix offered to a target market. The market offering i.e. supply must meet

customer demand, which are unmet needs and desires.

Marketing

Marketing is a comprehensive term and it includes all resources and set of activities

necessary to direct and facilitate the flow of goods and services form the producer to the

consumer through the process of distribution. Businessmen regards marketing as a

management function to plan promote and deliver products to the clients or customers.

Human efforts, finance and management constitute the primary resources in marketing.

We have twin activities, which are most significant in marketing:

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-1. Matching the product with demand i.e. customer needs and desires or the target

market.

2. The transfer of ownership and possession at every stage in the flow of goods from the

primary producer to the ultimate consumer. The American marketing association defines

marketing as the process of planning andexecuting the conception, pricing, promotion

and distribution of ideas, goods and services to create exchanges that satisfy individual

and organizational objectives.

Marketing Management

Marketing managementrepresents an important functional area of business management

efforts for the flow of goods and services from the producer to the consumers. It looks

after the marketing system of the enterprise. It has to plan and develop the product on the

basis of known customer demand. Marketing management may be defined as, a process

of management of marketing programs for accomplishing organizational goals and

objectives. Marketing management has to build up appropriate marketing plan or

marketing mix to fulfill the set goals of the business. It has to formulate sound marketing

policies and programs. It looks after their implementation and control. It has to

implement marketing strategies, programs and campaigns. It must evaluate the

effectiveness of each part of marketing mix and introduce necessary modifications to

remove discrepancies in the actual execution of plans, policies, strategies, procedures and

programs.

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Marketing Mix

Marketing mix is the set of marketing tools the firm uses to pursue its marketing

objectives in the target market.

There are four elements or variables that make a marketing mix, they are:

1. Decisions on Product or service.

2. Decisions on Promotion.

3. Decisions on Price.

4. Decisions on Distribution.

The four ingredients are closely interrelated. Under the systems approach the decision in

on area affects action in the other. Marketing mix decisions constitute a large part of

marketing management.

According to Philip Kotler the term marketing mix is, the set of controllable variables

that the firm can use to influence the buyers response. In then simplest manner, the basic

marketing mix is the blending of four inputs or sub mixes, which form the core of the

marketing system.

Product mixdecision refers to decisions on product variety, quality, design, features,

brand image, packaging, sizes, services, warranties and returns.

Price mixdecision refers to decisions on the product list price, discounts, allowances, and

payment period and credit terms available.

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Place mixdecision refers to decisions on the channels, coverage, assortments, locations

,inventory and transport of the market offering.

Promotion mixdecisions refer to decisions on the products advertising, sales promotion,

sales force, public relations and direct marketing. Together they form the four Ps of

marketing.

Marketing Planning

A marketing planlies down in writing the marketing objectives, programs and policies to

be adopted to achieve the set marketing objectives. Even before an integrated marketing

plan is prepared the company shall prepare functional plan for each component of

marketing mix. To have a sound marketing plan, every operation is to be examined and

the problems are to be identified. The overall marketing plan should be linked to the

distribution channel of the company to have effective marketing operations.

The marketing planning covers the preparation of functional plans, integration of this

plan and the preparation of master marketing plan to serve the objective of the

organization. Marketing planning is bound to get a better hold of environmental factor.

Marketing Research

Marketing researchis the systematic gathering, recording and analyzing of the data about

problems connected to the marketing of goods and services i.e. problems relating to

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-product ,price, promotion and distribution of the 4ps of the marketing mix. Marketing

research is concerned with all those factors, which have a direct impact upon the

marketing of products and services. Marketing research has grown along with the

expanded role of marketing as the focus for the business decision-making.

Consumer

A person who purchase or has the capacity to purchase the goods of service often for sale

by the marketing firm in order to satisfy personal need and desires.

Perception

Perception is the sensing of stimuli external to the individual organism the act or process

of comprehending the world in which the individual exists. Perception has been defined

by social psychologists as the Complex process by which people select organize and

interpret sensory stimulation in to a meaningful and coherent

Picture of the work.

Attitude

Social psychologist defined attitude as an emotionalized predisposition to respond

positively or negatively to an object. Predisposition can be thought of as categories of

meaning stored in the memory of a person and are based on previous experience.

Predisposing the person to have in specific manner towards a certain objects in the

environment.

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Brand

A brand is a name, term, symbol, design or a combination of them which is intended to

identify the goods or services of one seller or group of sellers and to differentiate them

from those of competitors.

PROBLEM DEFINATION

To know the consumer buying behavior when they go to purchase bike of honda in

Lucknow city because always consumer say something and does something. There are

many companies manufacturing motorcycles into the market, 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 two

wheeler bike of honda. So the researcher problem is to identify what are the criteria that

prospective customer takes into consideration before buying the motorcycles of honda.

SCOPE OF STUDY

The project report will help the business organizations in auto mobile sector to

understand the consumer behavior regarding purchasing of honda bikes.

The project report is very useful to get success and formulate the proper stategy in

competitive market.

Company can find the consumer preferable towards various features of bikes.

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Company can find out and understand the factors which influence the consumers.

Also find out the expected demand of a particular bikes.

This research is helpful to know the satisfaction level of consumers.

This research work can be utilized to serve academic purpose.

ResearchMethodology

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RESEARCH METHDOLOGY

Introduction:

Marketing research is the function which links the consumer, customer and public to the

marketers through information used to identify and define marketing, opportunities and

problems, generates refine marketing action; monitor marketing performance; and

improve understanding of marketing as a process.

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.

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

obtain answer to research question and to control variance.

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Sources 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.

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 companys records and other librarys 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.

Statistical techniques

1. Bar Diagrams

2. Pie-Chart

Statistical tools

1. Statistical software like Microsoft Excel, Ms Word.

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RESERCH METHODOLOGY

RESEARCH DESIGN : Descriptive

SAMPLING : Convenience Sampling

SAMPLE SIZE : 100 respondents

SAMPLE AREA : Lucknow

DATA COLLECTION : Primary data and

METHOD Secondary data

DATA COLLECTION : StructuredQuestionnaire

INSTRUMENT

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Data Analysisand

Interpretation

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DATA ANALYSIS AND INTERPRETATION

1. AGE WISE CLASSIFICTION

Age (in year) No. of respondents Percentage (%)

18-20 30 30

21-25 37 37

26-30 15 15

31-35 06 06

36-40 07 0741& above 05 05

Total 100 100

Age wise Classification

30, 30%

37, 37%

15, 15%

6, 6%

7, 7% 5, 5%

18-20

21-25

26-30

31-35

36-40

41& above

(Sources: Questionnaire-personal Detail)

INTERPRETATION;-

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Above Graph shows are 30% of respondent in age group of 18-20, 37%of

respondent in age group of 21-25, 15% of respondent in age group of 26-30,6% of

respondent in age group of 31-35, 7% and 5% respondent are come in 36-40 and

41&above.

2. OCCUPATION WISE CLASSIFICATION

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Occupation No. of respondents Percentage (%)

Servicemen 47 47

Student 30 30

Business 12 12

Profession 08 08

Others 03 03

Total 100 100


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Occupation Wise Classification

0

20

40

60

80

100

Servic

emen

Student

Bus

ines

s

Profe

ssio

n

O

thers

Occupation

No.ofRespondent

No. of res pondents

Percentage (%)

INTERPRETATION;-

Above Chart Shows that 47 respondent are Servicemen out of 100 and 30 are the

students. 12 respondents are businessman, 8 respondents are professionals and rest 3

respondents are others.

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3. INCOME WISE CLASSIFICATION

Income Wise Classification

54, 54%

25, 25%

11, 11%

7, 7% 3, 3%

5000

5000-10,000

10,000-15,000

15,000-20,000

20,000 Above

INTERPRETATION;-

:-

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Income Level No. of respondents Percentage (%)


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-Above graph shows that 54% of respondents are income in


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Ques.- Which company bike do you have at present. ?

Ans.- (a) Honda 44%

(b) Bajaj 33%

(c) TVS 6%

(d) Honda 3%

(e) Yamaha 3%

(f) LML 4%

(g) any other 7%

INTERPRETATION;-

Among all respondents Honda has maximum market

share ,44% respondents have Honda bike and 33% respondents have bajaj bikes, 6%

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44

33

63

34 7

HONDA

BAJAJ

TVS

HONDA

YAMAHA

LML

ANY OTHER


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-respondents have TVS bike, 3% respondents have HONDA bike, 3% respondents

have YAMAHA, 4% respondents have LML and 7% respondents have others bikes.

Ques.-Who is the decision maker for purchasing bike in your family?

Ans.- (a) Father 32% (b) Mother 5%

(c) Self 45% (d) Other 18%

INTERPRETATION;-

Above Graph shows that 45 % respondents take decision by own self for purchasing bike.

And 32 % respondents are take decision by father for purchasing bike, 5% respondents

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-are take decision by mother for purchasing bike and 18% respondents are take decision

by others for purchasing bike.

Ques.-3 How you purchase bike ?

Ans.- (a) By cash 65% (b) By loan 35%

INTERPRETATION;-

Above Graph shows that 65 people purchase Bike by cash and

45 people purchase Bike from loan.

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Ques.- Which one of the following factor is most important for purchasing Honda

bike?

(a) Brand reputation 32% (b) Price 23%

(c) Mileage 20% (d) Less maintenance 12%

(e) Easy riding 4% (F) Color 9%

INTERPRETATION;-

Brand name 32% and price 23% are the major factors while

purchasing the honda bike. But 20% mileage and 12% less maintenance are the

minor factor while purchasing the Honda bike. And the 4% easy riding and 9% color

less valuable factor while purchasing the Honda bike.

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Ques.- Which one of the following attributes is most important at the Honda show

rooms.?

(a) Availability of bikes 33% (b) After sales Service 25%

(c) Services 32% (d) Infrastructure 10%

INTERPRETATION;-

Consumers are more focused on availability of bikes 33%

and services 32% at the show room.

And less focused on After sales services with 25% & Infrastructure with 10% only.

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Ques.- which one of the following Honda scheme attract you most ?

Ans.- (a) special offer 26% (b) exchange offer 6%

(c) special gift 22% (d) cash discount 46%

INTERPRETATION;-

Cash discount 46% and special offers 26% are more influence to the consumers while

they purchasing bike. While 6% exchange offer and special gift 22% are less attractive in

comparison to above one.

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Ques- Which one of the following feature of Honda bike attract you most?

(a) self start 42% (b) disk break 23%

(c)digital speed meter 15% (d) alloy wheel 12%

(e) tubeless tyre 8%

INTERPRETATION;-

Self start 42% and disk break 23% features are liked most by the consumers.

Digital speed meter 15% and alloy wheel 12% are features which liked less by the

consumers.

Last but the least Tubeless tyre with 8% attract very less.

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SWOT ANALYSISSWOT ANALYSIS

Strengths

Ability to understand customers needs and wants

Recognized and established brand name

Effective advertising capability

Weaknesses

R&D is not close to the manufacturing plant

is vulnerable in the joint venture because

Honda Motor Company has so much power

OpportunitiesOpportunities

Global expansion into the Caribbean and Central AmericaGlobal expansion into the Caribbean and Central America

Expansion of target market (include women)Expansion of target market (include women)

Become Indias leader in the scooter marketBecome Indias leader in the scooter market

ThreatsThreats

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LIMITATIONS OF STUDY

When the buyers are busy we cant get accurate data from them.

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.

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Findings

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FINDINGS

Among all respondents Honda has maximum market share 42% and bajaj has

the 33% market share.

The study shows that maximum consumers prefer to purchase Honda bikes by

cash.

Brand name and price are more attracting factors for consumers to purchase

Honda bikes.

Consumers are more focused on availability of bikes and services at the show

room of Honda.

Cash discount and special offers given by Honda company are influence more to

the consumers.

Self start and disk break features are liked most by the consumers of Honda.

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Conclusion

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CONCLUSIONS

The research concludes that there are many factors which influence customers before

purchasing a Honda bike.

The brand and price is kept in mind before purchasing it.

The low price of bike compels a consumer to purchase a bike.

Customer looks for almost all the feature in which self start and disk break are

preferred the most with mileage.

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Recommendati

on

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RECOMMENDATIONS

Honda should introduce a low price moped

For the promotion, company show make road-show that will

Increase the sales. The company should give more concentrate on the

advertisement.

All two wheelar Company should implement a new strategy to reduce the

competition and lead into the bike market.

As people expect more mileage per kilometer, company should increase the

mileage of their bikes.

Honda should make a sports bike like to Kawasaki Suzuki Hyabusa bikes which

can run with maximum speeds.

Company should focus on quick availability of bikes.

Company should try to more focus on decision maker behavior.

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References

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References

Marketing research, G.C.Beri, Third Edition, Tata McGraw Hill Publishing Company

Limited, New Delhi, 2000

Marketing management, Philip Kotler, Twelth (Millennium) edition, Prentice-Hall of

India Private Limited, New Delhi, 2003

WEB ADDRESS:

www.Google.com

www.ask.com

www.yahoo.com

www. honda.com

www.bajaj.com

www.tvs.com

www.yamaha.com

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http://www.herohonda.com/http://www.bajaj.com/http://www.tvs.com/http://www.herohonda.com/http://www.bajaj.com/http://www.tvs.com/


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Annexure

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QUESTIONNAIRE

CUSTOMER PERSONAL INFORMATION:-

A. Name: - ___________________________________________

B. Address:-___________________________________________

___________________________________________

___________________________________________

C. phone no:-__________________________________________

D. Age (in year):-

18 to 20 [ ] 21 to 25 [ ]

26 to 30 [ ] 31 to 35 [ ]

36 to 40 [ ] 41 & above [ ]

E. Occupation:-

Services [ ] Businessman [ ]

Students [ ] Professional [ ]

Others [ ]

F. monthly income:-

5000 [ ] 5000-10,000 [ ]

10,000-15,000 [ ] 15,000-20,000 [ ]

20,000 Above [ ]

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GENERAL INFORMATION:-

1 Do you have own bike?

(a) Yes [ ]. (b) No [ ]

If yes than,

2 Which company bike do you have at present?

Company ____________________

3 Who is decision maker for purchasing bike in your family?

(A) Father [ ] (B) Mother [ ]

(B) Self [ ] (D) other [ ]

4 How you purchase Honda bike?

(A) By cash [ ] (B) By Loan [ ]

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5 Which one of the following factor is most important for purchasing Honda bike?

(a) Brand reputation (b) Price

(c) Mileage (d) Less maintenance

(e) Easy riding (F) Color

6. Which one of the following attribute is most important at Honda show room?

(a) Availability of bikes (b) After sales Service

(c) Services (d) Infrastructure

7. Which one of the following Honda schemes that attract you most?

(a) special offer (b) exchange offer

(c) special gift (d) cash discount

8. Which one of the following feature of Honda bike attract you most?

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(a) self start (b) disk break

(c)digital speed meter (d) alloy wheel

(e) tubeless tyre

Documents

Acknowledgement 12