A Project Report ON

Study and scope of online channel for selling two wheelers.

AS PARTIAL FULFILLMENT OF PGDM PROGRAM, II year

SUBMITTED BY(Saurabh kainth)PGDM DM13C41

IAEER'S Pune Institute Of Business Management

(Approved by AICTE, Ministry of HRD, Govt. Of India)

PUNE

Batch- (PGDM) 2013-2015

DECLARATION

I, Saurabh Kainth hereby declare that this project report is the record of authentic work carried out by me during the period from 15th May 2014 TO 15th July 2014 and has not been submitted earlier to any university or institute for the award of any degree/diploma etc.

Name of the Student:Date:

CERTIFICATION

This is to certify that Mr Saurabh Kainth has completed SIP under my guidance.Date of submission:

Signature(Internal Guide)ACKNOWLEDGEMENT

I take this opportunity to express my deep sense of gratitude to, of our college for their good wishes, support and encouragement for the completion of my project. I am sincerely thankful to Mr. Sunil Singh (V.P H.R) for his help and support throughout the project. I extend my thanks to Mr.Nitin Hemnani (corporate guide) for his help. I extend my sincere thanks and my deep sense of gratitude to Ms.Sonal parmar (internal guide & mentor) for his kind assistance. I would also like to thank all the staff of the organization for helping me directly and indirectly to conclude this work, last but not the least, my heartfelt gratitude to my parents, relatives and my friends for their constant encouragement, support, help and valuable advice to make this project a success.

TABLE OF CONTENTS

Sr. No.TopicsPage Nos.

1.Background/Introductiona) Basic introduction of the projectb) Industry profilec) Company Profile7-11

12-1617-20

2.Research Methodologya) Objectives & scopeb) Methods& Tools adopted c) Data analysis & Interpretationd) Limitations21-23 24

25-6061

3.Findings & Observations.62-63

4.Suggestions/ Recommendations.64-65

5.Conclusion.66-67

6.Bibliography.68-69

Introduction

Introduction

Channels of DistributionA channel of distribution or trade channel is defined as the path or route along which goods move from producers or manufacturers to ultimate consumers or industrial users. In other words, it is a distribution network through which producer puts his products in the market and passes it to the actual users. This channel consists of :- producers, consumers or users and the various middlemen like wholesalers, selling agents and retailers(dealers) who intervene between the producers and consumers. Therefore, the channel serves to bridge the gap between the point of production and the point of consumption thereby creating time, place and possession utilities.A channel of distribution consists of three types of flows:- Downward flow of goods from producers to consumers

Upward flow of cash payments for goods from consumers to producers

Flow of marketing information in both downward and upward direction i.e. Flow of information on new products, new uses of existing products,etc from producers to consumers. And flow of information in the form of feedback on the wants, suggestions, complaints etc from consumers/users to producers.An entrepreneur has a number of alternative channels available to him for distributing his products. These channels vary in the number and types of middlemen involved. Some channels are short and directly link producers with customers. Whereas other channels are long and indirectly link the two through one or more middlemen.

These channels of distribution are broadly divided into four types:- Producer-Customer:- This is the simplest and shortest channel in which no middlemen is involved and producers directly sell their products to the consumers. It is fast and economical channel of distribution. Under it, the producer or entrepreneur performs all the marketing activities himself and has full control over distribution. A producer may sell directly to consumers through door-to-door salesmen, direct mail or through his own retail stores. Big firms adopt this channel to cut distribution costs and to sell industrial products of high value. Small producers and producers of perishable commodities also sell directly to local consumers.

Producer-Retailer-Customer:- This channel of distribution involves only one middlemen called 'retailer'. Under it, the producer sells his product to big retailers (or retailers who buy goods in large quantities) who in turn sell to the ultimate consumers.This channel relieves the manufacturer from burden of selling the goods himself and at the same time gives him control over the process of distribution. This is often suited for distribution of consumer durables and products of high value.

Producer-Wholesaler-Retailer-Customer:- This is the most common and traditional channel of distribution. Under it, two middlemen i.e. wholesalers and retailers are involved. Here, the producer sells his product to wholesalers, who in turn sell it to retailers. And retailers finally sell the product to the ultimate consumers. This channel is suitable for the producers having limited finance, narrow product line and who needed expert services and promotional support of wholesalers. This is mostly used for the products with widely scattered market.

Producer-Agent-Wholesaler-Retailer-Customer:- This is the longest channel of distribution in which three middlemen are involved. This is used when the producer wants to be fully relieved of the problem of distribution and thus hands over his entire output to the selling agents. The agents distribute the product among a few wholesalers. Each wholesaler distribute the product among a number of retailers who finally sell it to the ultimate consumers. This channel is suitable for wider distribution of various industrial products.An entrepreneur has to choose a suitable channel of distribution for his product such that the channel chosen is flexible,effective and consistent with the declared marketing policies and programmes of the firm. While selecting a distribution channel, the entrepreneur should compare the costs,sales volume and profits expected from alternative channels of distribution and take into account the following factors:- Product Consideration:- The type and the nature of products manufactured is one of the important elements in choosing the distribution channel. The major product related factors are:- Products of low unit value and of common use are generally sold through middlemen. Whereas,expensive consumer goods and industrial products are sold directly by the producer himself. Perishable products; products subjected to frequent changes in fashion or style as well as heavy and bulky products follow relatively shorter routes and are generally distributed directly to minimise costs. Industrial products requiring demonstration, installation and aftersale service are often sold directly to the consumers. While the consumer products of technical nature are generally sold through retailers. An entrepreneur producing a wide range of products may find it economical to set up his own retail outlets and sell directly to the consumers. On the other hand, firms producing a narrow range of products may their products distribute through wholesalers and retailers. A new product needs greater promotional efforts in the initial stages and hence few middlemen may be required.

Market Consideration:- Another important factor influencing the choice of distribution channel is the nature of the target market. Some of the important features in this respect are:- If the market for the product is meant for industrial users, the channel of distribution will not need any middlemen because they buy the product in large quantities. short one and may as they buy in a large quantity. While in the case of the goods meant for domestic consumers, middlemen may have to be involved. If the number of prospective customers is small or the market for the product is geographically located in a limited area, direct selling is more suitable. While in case of a large number of potential customers, use of middlemen becomes necessary. If the customers place order for the product in big lots, direct selling is preferred. But,if the product is sold in small quantities, middlemen are used to distribute such products.

Other Considerations:- There are several other factors that an entrepreneur must take into account while choosing a distribution channel. Some of these are as follows:- A new business firm may need to involve one or more middlemen in order to promote its product, while a well established firm with a good market standing may sell its product directly to the consumers. A small firm which cannot invest in setting up its own distribution network has to depend on middlemen for selling its product. On the other hand, a large firm can establish its own retail outlets. The distribution costs of each channel is also an important factor because it affects the price of the final product. Generally,a less expensive channel is preferred. But sometimes, a channel which is more convenient to the customers is preferred even if it is more expensive. If the demand for the product is high,more number of channels may be used to profitably distribute the product to maximum number of customers. But, if the demand is low only a few channels would be sufficient. The nature and the type of the middlemen required by the firm and its availability also affects the choice of the distribution channel. A company prefers a middlemen who can maximise the volume of sales of their product and also offers other services like storage, promotion as well as aftersale services. When the desired type of middlemen are not available, the manufacturer will have to establish his own distribution network.All these factors or considerations affecting the choice of a distribution channel are inter-related and interdependent. Hence, an entrepreneur must choose the most efficient and cost effective channel of distribution by taking into account all these factors as a whole in the light of the prevailing economic conditions. Such a decision is very important for a business to sustain long term profitability.

Online channel of distribution:Online channel is the new type of channel of distribution of goods or services directly to the customers, without involving any other traditional channel partners, with the use of internet. It is the direct form of distribution of goods and services where the roles of intermediaries are not required and where buyers directly meets the sellers over internet.it does not requires any physical medium for doing any business transaction. online distribution of goods and services is often called as online retailing or E- retailing.

Definition of online channel of distributionThe sale of goods and services through the Internet. Electronic retailing, or e-tailing, can include business-to-business and business-to-consumer sales. E-tailing revenue can come from the sale of products and services, through subscriptions to website content, or through advertising.It is a play on the words "retail" and "e-commerce."Online channels requires businesses to tailor traditional business models to the rapidly changing face of the Internet and its users. Online or e-retailing are not restricted solely to the Internet, and some brick-and-mortar businesses also operate websites to reach consumers. Online retailing is normally referred to as e-tailing.

Industry profileThe Automotive industry in India is one of the largest in the world and one of the fastest growing globally. India manufactures over 18 million vehicles (including 2 wheeled and 4wheeled) and exports more than 2.3 million every year1. It is the world's second largest manufacturer of motorcycles; there are eight key players in the Indian markets that produced 13.8 million units in 2010-11.At present the dominant products of the automobile industry are 2 Wheelers with a market share of over 75% and passenger cars with a market share of about 16%. Commercial vehicles and three wheelers share about 9% of the market between them. The industry has attained a turnover of more than USD 35 billion and provides direct and indirect employment to over 13 million people.

The auto industry produced a total 1.81 million vehicles, including passenger vehicles, commercial vehicles, three wheelers and two wheelers in February 2014 as against 1.73 million in February 2013, registering a growth of 4.41 per cent over the same month last year. The increase continues to be on account of growth in two wheelers production. Moreover, the overall domestic sales during AprilFebruary 2014 grew marginally by 2.68 per cent over the same period last year.The passenger vehicles production in India is expected to reach 10 million units by 202021. The industry is estimated to grow at a compound annual growth rate (CAGR) of 13 per cent during 20122021. In addition, the industry is projected to touch US$ 30 billion by 202021, according to data from Automotive Component Manufacturers Association (ACMA).The cumulative foreign direct investment (FDI) inflows into the Indian automobile industry during the period April 2000 to January 2014 was recorded at US$ 9,344 million, an increase of 4 per cent to the total FDI inflows in terms of US$, according to data published by Department of Industrial Policy and Promotion (DIPP), Government of India.The overall automobile exports grew by 6.39 per cent during AprilFebruary 2014. Passenger vehicles, three wheelers and two wheelers registered growth at 6.44 per cent, 16.40 per cent and 5.41 per cent respectively, compared to the same period last year.

The Indian two-wheeler industry has come a long way since its humble beginning in 1948when Bajaj Auto started importing and selling Vespa Scooters in India. Since then, the customer preferences have changed in favor of motorcycles and gearless scooters that score higher on technology, fuel economy and aesthetic appeal, at the expense of metal-bodied geared scooters and mopeds. These changes in customer preferences have had an impact on the fortunes of the players. The erstwhile leaders have either perished or have significantly lost market share, whereas new leaders have emerged.

With an expanding market and entry of new players over the last few years, the Indian 2wheeler industry is now approaching a stage of maturity. Previously, there were only a handful of two-wheeler models available in the country. Currently, India is the second largest producer of two-wheelers in the world. It stands next only to China and Japan in terms of the number of two wheelers produced and the sales of two-wheelers respectively. There are many 2-wheeler manufacturers in India. The major players in the 2-wheeler industry are Hero Honda, Bajaj Auto Ltd (Bajaj Auto), TVS Motor Company Ltd (TVS) and Honda Motorcycle & Scooter India, Private Limited (HMSI) accounting for over 93% of the sale in the domestic two wheeler market. It is noteworthy that motorbikes segments share is justbelow 80% of the total 2W market in India which is dominated by Hero Honda with a market share of 59%. Scooter segments market share is about 18% which is led by Honda Motorcycle & Scooter India, Private Limited (HMSI) with a market share of 43%.Threefourthof the total exports in the two wheeler automobile industry are made in the motorcycle segment. Exports are made mainly to South East Asian and SAARC nations.

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

EVOLUTION OF THE INDIAN TWO WHEELER INDUSTRYThe 2wheeler industry (Henceforth 2WI) consist of three segments viz scooters, motorcycles, and mopeds. The 2WI in India began operations within the framework of the national industrial policy as espoused by the Industrial Policy Resolution of 1956. This resolution divided the entire industrial sector into three groups, of which one contained industries whose development was the exclusive responsibility of the State, another included those industries in which both the State and the private sector could participate and the lastset of industries that could be developed exclusively under private initiative within the guidelines and objectives laid out by the Five Year Plans (CMIE, 1990). Private investment was channelized and regulated through the extensive use of licensing giving the State comprehensive control over the direction and pattern of investment. Entry of firms, capacity expansion, choice of product and capacity mix and technology, were all effectively controlledby the State in a bid to prevent the concentration of economic power. However due to lapses in the system, fresh policies were brought in at the end of the sixties. These consisted of MRTP of 1969 and FERA of 1973, which were aimed at regulating monopoly and foreign investment respectively. Firms that came under the purview of these Acts were allowed toinvest only in a select set of industries.

In recent years, the Indian two-wheeler (2W) industry has shown a strong volume growthover the last two-years, having grown by 25% in 2009-10 and 27% in 2010-11 to reach 13.3 million units. This strong double-digit growth has been driven by multiple factors. One reason, of course, is statistical as this period of high double-digit growth has showed up after a rather sedate previous two years, when the 2W industry volumes had shrunk by 5% in2007-08 and had grown by a mere 5% in 2008-09. In addition to the contribution of pent-up demand, the 2W industry growth over the last two years has been supported strongly by various underlying factors including Indias rising per capita GDP, increasing rural demand, growing urbanization, swelling replacement demand, increasing proportion of cash sales andthe less measurable metric of improved consumer sentiment.

Information & Credit Rating Agency of India Ltd. (ICRA) expects the 2W industry to report a volume CAGR of 10-12% over the next five years to reach a size of ~21-23 million units by 2015-16 as it views the fundamental growth drivers - comprising of expected steady GDP growth, moderate two wheeler penetration levels, favorable demographic profile, under developed public transport system and utility quotient of a 2W - to be intact. Additionally, the entry of new players in the industry, multitude of new model/variant launches, growing distribution reach, cheaper ownership costs on a relative basis areexpected to be some of the other prime movers for industry growth over the medium term. In ICRAs view, while the trend in rising commodity prices, hardening interest rates and increasing fuel costs may lead to some moderation in industry growth over the short term, the growth over the medium to long term is expected to remain in double digits.

Growth of Indian 2wheeler industry

Automobile Clusters in India

Zonal spread of automobile manufacturing companies

Ashok Leyland GMBharat ForgeBajaj Auto M&MTata MotorsFiatEicherNissanTata MotorsSimpson & Co.Hindustan MotorsInternational Auto ForgingsAshok Leyland ToyotaEnfieldFord HyundaiBoschTVS Motor VolvoRenaultM&M

Ashok LeylandPiaggioTata MotorsForce MotorsSwaraj MazdaBajaj AutoMaruti SuzukiAmtek AutoHero Group

Company profilePiaggio vehicles pvt ltd was founded by RinaldoPiaggio in 1884.Piaggio initially produced locomotives and railway carriages. During World War I the company focused on producing aircraft During World War II the company produced bomber aircraft, but Piaggio emerged from the conflict with itsPontederaplant completely demolished by Allied bombing. Italy's crippled economy and the disastrous state of the roads did not assist in the redevelopment of the automobile markets.Enrico Piaggio, the son of Piaggio's founder RinaldoPiaggio, decided to leave the aeronautical field in order to address Italy's urgent need for a modern and affordable mode of transportation. The idea was to design an inexpensive vehicle for the masses.Aeronautical engineerCorradinoD'Ascanio, responsible for the design and construction of the first modern helicopter byAgusta, was asked by Enrico Piaggio to create a simple, robust and affordable vehicle. The vehicle had to be easy to drive for both men and women, be able to carry a passenger, and not get its driver's clothes dirty. In 1946 Piaggio launched theVespascooter (Italian for "wasp") and within ten years over a million units had been produced. The Italian language gained a new word, "vespare", meaning to go somewhere on a Vespa.

Piaggio& C is today one of the leading manufacturers of 2wheelers and small commercial vehicles in the world. With its registered office in Pontedera (pisa) Piaggio is the market leader in Europe and has expanded its operation in 24 countries, including a major presence in Asian market.

The product range includes scooters, mopeds, and motorcycles starting from 50 to 1,200cc under the PiaggioVespa, Gilera, Aprilia, Moto Guzzi, Derbi and scarabeo brands.The 3 and 4-wheeled light transportation vehicles are marked under the Ape, Porter and Ouargo brands.

Piaggio Vehicles Private Limited (PVPL), the pioneer of 3-wheeler goods transportation in India, is today the no. 1 in its class. By setting global standards in vehicle performance and customer service, it has revolutionized the 3 wheeler cargo segment in India. Today the company offers a range of passenger and cargo vehicles for many customized applications.

PVPL is a 100% subsidiary of Piaggio& C. s.p.a. of Italy, the inventor of 3-wheelers. PVPL commenced its Indian operations in the year 1999 with the launch of the brand ap which was an instant success and has grown from strength to strength over the years.Piaggio vehicles are engineered for higher fuel efficiency, rugged performance and outstanding load carrying capability. Living up to Piaggios core philosophy, all its vehicles conform to the most stringent emission norms.

IN INDIA

In 2wheelers

Piaggio first licensed the production of Vespa scooters in India toBajaj Autoin the 1960s. In 1971, Piaggio's license was not renewed as a part of Indira Gandhi's privatization programs. After the collaboration ended, Bajaj continued to produce scooters based on the Vespa design, namely theChetak.Another Vespa partner in India was that ofLML Motors. Beginning as a joint-venture with Piaggio in 1983, LML, in addition to being a large parts supplier for Piaggio, produced theP-Series scooters for the Indian market. In 1999, after protracted dispute with Piaggio, LML bought back Piaggio's stake in the company and the partnership ceased. LML continues to produce (and also exports) the P-Series variant known as theStellain the U.S. market and by other names in different markets.In the 2012 Auto Expo held in New Delhi, the iconic Vespa re-entered the Indian Market. Piaggio unveiled its range of scooters at the Expo. This became the first such venture of Piaggio in India without a local partner.

In 3-4 wheelers ligth commercial vehiclesPiaggio entered India in 1998 through a joint venture with Greaves Limited to manufacture three-wheeler. Piaggio had a majority stake of 51 per cent in this joint venture. Three years later in August 2001, Piaggio went on to acquire the 49 percent holding of Greaves Limited and the company, Piaggio Vehicles Private Limited (PVPL), became a 100 per cent subsidiary of PiaggioSpA. Since then the company has achieved phenomenal growth in its revenues - an average growth of more than 40 percent has been realized, year on year. The Indian operations, ably spearheaded by Ravi Chopra, Chairman and Managing Director, have today become a key focus area and a significant destination for the Group's overall business. The company has its state-of-the-art plant at Baramati (Maharashtra), with a fully automated conveyor line production facility, computerized paint shops and advanced R & D facilities. Way back in 1999, the company had started its production activities with only 40 vehicles per day. Today it has grown to a scale where it manufactures 500 vehicles in a day. The company has successfully utilized Pune as a strategic hub for its marketing and 12 sales network, which has grown to over 240 dealer locations providing 420 outlets for sales and service across the country. The company employs around 1,200 people in India. It has seven regional offices and fourteen branch offices all over the country. This is perhaps one of the largest and best-organized distribution networks for three wheeler in India. In the last few years, PVPL has emerged as the second largest three-wheeler manufacturer in India. With an overall market share of 33 per cent, the company today has maintained its leadership in the three-wheeler cargo segment with a share of 39 percent. It also has a significant 30 percent share in the passenger segment. PVPL has also begun to export its ape' vehicles from India to many countries including Argentina, Peru, Sudan, Sri Lanka, Mexico, South Africa, Cuba and Bangladesh. Till recently PVPL's focus was on catering to the increasing domestic market needs in India, however it now has aggressive plans for a major thrust on the export front in the coming years. The company expects 10-15 per cent contribution to its turnover from exports in the future years.

Evoluion of

The inspiration for the design of the Vespa dates back to Pre-World War IICushmanscooters made inNebraska, USA. These olive green scooters were in Italy in large numbers, ordered originally by Washington as field transport for theParatroopsandMarines. The US military had used them to get aroundNazidefense tactics ofdestroying roads and bridgesin theDolomites and the Austrian border areas.Launch of Piaggio filed a patent for the Vespa scooter design in April 1946. The application documents referred to a "model of a practical nature" for a "motorcycle with rationally placed parts and elements with a frame combining with mudguards and engine-cowling covering all working parts", of which "the whole constitutes a rational, comfortable motorcycle offering protection from mud and dust without jeopardizing requirements of appearance and elegance". The patent was approved the following December.The first 13 examples appeared in spring 1946, and reveal their aeronautical background. In the first examples, one can recognize the typical aircraft technology. Attention to aerodynamics is evident in all the design, in particular on the tail. It was also one of the first vehicles to use monocoque construction (where the body is an integral part of the chassis).The company was aiming to manufacture the new Vespa in large numbers, and their longstanding industrial experience led to an efficientFord-stylevolume production line. The scooter was presented to the press at Rome Golf Club, where journalists were apparently mystified by the strange, pastel coloured, toy-like object on display. But the road tests were encouraging, and even with no rear suspension the machine was more manoeuvrable and comfortable to ride than a traditional motorcycle.Following its public debut at the 1946 Milan Fair, the first fifty sold slowlythen with the introduction of payment by installments, sales took off.Sales & Development of The biggest sales promo ever was Hollywood. In 1952,Audrey Hepburnside-saddledGregory Peck's Vespa in the feature filmRoman Holidayfor a ride through Rome, resulting in over 100,000 sales. In 1956,John Waynedismounted his horse in favor of the two-wheeler to originally get between takes on sets.[7]as well asMarlon Brando,Dean Martin, and the entertainerAbbe Lanehad become Vespa owners. WilliamfilmedBen Hurin Rome in 1959, allowingCharlton Hestonto abandon horse and chariot between takes to take a spin on the Vespa.Vespa clubs popped up throughout Europe, and by 1952, worldwide Vespa Club membership had surpassed 50,000. By the mid-1950s, Vespas were being manufactured under licence in Germany, the United Kingdom, France, Belgium and Spain; in the 1960s, production was started in India, Brazil and Indonesia. By 1956, one million had been sold, then two million by 1960. By the 1960s, the Vespaoriginally conceived as a utility vehiclehad come to symbolize freedom and imagination, and resulted in further sales boosts: four million by 1970, and ten million by the late 1980s.In recent years vespa has emerged not only as a market leader but also as a youth icon for scooters, with its continious touch with hollywood and bollywood movies vespa has been always maintained itself in headlines, which results in a strong brand value even at the time of recession when piaggio C faced severe falls in sales even the company has come to the stage of bankcroupcy. Piaggio started its earning aftre recession again from vespa, it launches various models of vespa which turned in a huge success for the company.

Research Methodology

Research Methodology

Meaning of Research: Research is the investigation of a particular topic using a variety of reliable, scholarly resources. The three major goals of research are establishing facts, analyzing information, and reaching new conclusions. The three main acts of doing research are searching for, reviewing, and evaluating information.

Definition of Research:

The Advanced Learners Dictionary of Current English lays down the meaning of research as- a careful investigation or inquiry specially through search for new facts in any branch of knowledge. The study requires both, Primary and Secondary data for research.Research

Secondary researchPrimary research

Primary Data:

Data that has been collected from first-hand-experience is known as primary data. Primary data has not been published yet and is more reliable, authentic and objective. Primary data has not been changed or altered by human beings; therefore its validity is greater than secondary data.

Types of primary data used: Questionnaire Personal Interview Indirect Observation

Secondary Data: Data collected from a source that has already been published in any form is called as secondary data. The review of literature in any research is based on secondary data, mostly from books, journals and periodicals.Types of Secondary data used: Journal Newspaper Internet Web Portals

Data Analysis Tool: Bar Chart Pie ChartData Analysis Technique: Quantitative Descriptive Questionnaire Sample size 120 (Customers & Clients) Sampling

Objectives

Main objective: To study and analyse scope of online channel for selling two wheelers.

Secondary Objective: To determine the demographic /psychographic profile of online buyers To understand customer buying behaviour. To analyse the product category that respondents buy online. To understand the factors affecting online buying behaviour. To analyse customer preference for online purchase of two wheelers.

Scope of project: Increase market reach. Engaged with merchandise business through online channel. Suitability of more efficient distribution channel e.g online

Data analysis & Interpretation

1. No. of respondents.

GenderNo. of respondentsPercentage

Male8772.5%

Female3327.5%

Total120100%

Interpretation:-Total number of respondent are 120, in which 87 are male and 33 are female.

2. Age group of respondents.

Age group (Years)No. of respondentsPercentage

00

Total120100%

Interpretation:-Majority of respondents lies in group of 21-30 year i.e 54% of total respondents and 44% of respondent lies in age group of 31-40. Only 2% lies in age group 41-50 age group. Hence from this data we can easily identify that maximum number of respondents lies in age group of 21-40 and as our product is more appropriate for this age group.

3. Income level of respondents.

Income level (in Lakhs)No. of respondentsPercentage

Below 1.254.17

1.2 -2.53327.5

2.5 4.05949.17

4.0 6.01915.83

6.0 & above43.33

Total120100

Interpretation:- Majority of respondent falls in 2.5-4.0 Lakhs income level i.e approx. 50% of total number of respondent only 3.33% respondent are having income above 6 lakhs.

4. Qualification of respondents.

Educational levelNo. of respondentsPercentage

School00

Under Graduate3730.83

Post Graduate8369.17

Ph.D00

Total120100

Interpretation:-As most of our respondent belongs to corporate so majority of them were having post graduate degree.

5. Occupation of respondents.

OccupationNo. of respondentsPercentage

Student1613.33

Salaried6554.17

Business Man2722.5

Doctors/ Lawyers1210

Others00

Total120100

Interpretation:-54% of our respondent were employed and around 14% of respondents were student.

6. Do you or someone in your household have 2 wheeler?

ResponseNo. of respondentsPercentage

Yes120100 %

No00

Total120100 %

Interpretation:- All of our respondent having two wheeler in their household.

7. Are you the decision maker in your family.

ResponseNo. of respondentsPercentage

Yes8570.83

No3529.17

Total120100

Interpretation:-71% of our respondent were decision maker in their family. As majority of our respondent were employed, hence they are decision maker.

8. Have you ever experienced online shopping?

ResponseNo. of respondentsPercentage

Yes10385.83

No1714.17

Total120100

Interpretation:-Approx. 86% respondents have experience online shopping. As online shopping becomes common trend now days. Rest of respondents have not personally experience online shopping but someone from their household does online shopping.

9. Which of the following products category you buy online?CategoryNo. of respondentsPercentage

Books & Music C./D.V.D4811.62

Clothing6415.50

Fashion accessories348.23

Consumer durables6615.98

Consumer goods286.78

Utility payments6716.22

Automotive30.73

Travel/Hotel booking7818.89

Others256.05

Total413100

Interpretation:-Most of our respondents have experiences online shopping in Travel, hotel booking, Utility payments, consumer durables etc. Only 0.78% i.e 3/120 respondents purchased two wheeler online.

Interpretation:-41.16% of our respondent have experienced online shopping in service sector. In which 46% respondents fall in travel & hotel booking. 39% falls in utility payments. Rest of all falls in others categorye.g foods, second hand automobiles and goods.

Interpretation:- 51.84% of our respondent have experienced online shopping by purchasing goods. Out of which 27% falls in consumer durables, 26% falls in clothing , 20% falls in books & music, cds. Only 0.78% falls in automotive.

10. How frequently do you shop online in a month?

OptionNo. of respondentsPercentage

Once4235

2 3 times2520.83

3 5 times119.17

More than 54235

Total120100

Interpretation:-35% of respondents have experience only shopping at least once in a month. And again 35% of respondents have experience it more than 5 times in a month. Rest all have experience 2 -5 times in a month.

11. Which mode of payment do you prefer most?ParameterNo. of respondentsPercentage

Online payment5646.67

Cash on delivery4235

Using EMI option2016.67

Others21.66

Total120100

Interpretation:-Around 47% of respondent have preferred online payment and 35% preferred cash on delivery.

12. Why do you consider online shopping? (Rate the following)ParametersResponse

Very importantModerately importantNeither important nor unimportantSlightly importantLeast importantTotal

Home Delivery

9811407120

Discounts Schemes523219125120

Compare price between products463020240120

Variety of products3636142014120

Save time592129110120

Easy Return policy542422020120

Total120120120120120

Interpretation:- As people now days are busy with their day 2 day activity so majority of our respondents preferred home delivery as most important factor for doing online shopping so they dont need to spend time for shopping.

Interpretation:- After home deliver most of the respondents prefer online shopping for discount schemes offered.43% respondents said discount schemes is very important, 27% said discount schemes is moderately important. So overall discount factor is important for online shopping in respondents.

Interpretation:-38% respondents shop online because they will compare price while he buying online between sites. Only 17% respondent responds the compare price is neither important nor unimportant.

Interpretation:- variety of product is as much important factor like others. In home respondents see variety of products through online websites and place order for the same.34% respondents responds variety of products as very important factor and moderately important factor.

Interpretation:-Save time 49% respondents respond very important factor as it save lot of time. But 24% respondents responds neither important nor unimportant factor.

Interpretation:- Apart from home deliver and discount schemes manly our respondents preferred online shopping for reasons like: compare price, easy return police. Respondents said easy return policy is very important while shopping online.

13. What is your approximate monthly expenditure on online shopping?

OptionNo. of respondentsPercentage

Less than Rs. 10003025%

Rs. 1000 Rs. 5000 3932.5%

Rs. 5000 Rs.150003428.33%

More than Rs. 150001714.17

Total120100%

Interpretation:-Majority of respondents spend money Rs.1000-5000 in a month i.e 32.5%. 25% respondent less than 1000 and 14% respondents are more than Rs5000 spends on an average in a month.

14. Please rate the following Parameters based on your experience of online shopping?ParametersSatisfiedNeutralDis-satisfiedNot respond

Safety68457

Timely delivery62499

Variety69492

Customer service365529

Easy accessibility545754

Overall595821

Interpretation:-57% respondents satisfied with online buying safety issue. Earlier people worried about safety issue when they buy online. But now scenario is changed respondents. Only 6% respondents dissatisfied with safety issues.

Interpretation:- Most of respondents responds timely delivery of their respective product is satisfied.

Interpretation:-57% respondents satisfied as their respective variety of product. Rather a 41% respondent does not bother much as variety of product.

Interpretation:-30% respondents satisfied with customer service as per their respective products. 46% respondents responds neutral. 24% respondents dissatisfied with their respective customer service while buying online.

Interpretation:-45% respondents satisfied with easy accessibility factor of their respective product while majority of respondents responds natural. 3% of respondents not respond with any of factor.

Interpretation:-Majority of respondents i.e 49% satisfied with their online buying experience. 48% respondents responds neutral. 2 % respondents are dissatisfied. 1% respondents. 1% respondents not respond any of factor.

15. Name Top 3 E-retailer you prefer?

NameRespondentPercentage

Flipkart7420.85%

Amazon3610.14%

E-bay4512.68%

Shop clues143.94%

Jabong185.07%

Snapdeal5014.08%

Myntra205.63%

Irctc4111.55%

Yebhi185.07%

Others3910.99%

Total355100%

Interpretation:-It was found that while shop online 21% respondents buying from flip kart website. 14% respondents buy from Snapdeal. 13% respondents buy from e-bay. Flip-kart, Snapdeal, E-bay more or less these three deals with same product category. IRCTC and Others have 11% respondents respond. Others include payment gateway websites, official websites and foods.

16. Would you consider buying a two wheeler online?

ParameterRespondentPercentage

Yes76%

May be3227%

No8167%

Interpretation:-Only 6% respondents responds they will consider buying two wheeler online.27% respondents responds maybe they will be or they will not be consider buying a two wheeler online.Majority of respondents responds they will not be consider buying a two wheeler i.e 67%.

17. If no, Why?Rate 1 to 5 ( 1 is good)

Parameter Most Important Moderately ImportantNeither Important nor Unimportant Slightly ImportantLeast ImportantNot Respond

Unavailability of test ride through online822170010

Online buying safety issues33262602510

Concerned about service44302016010

Product quality28491716010

Documentation issues4243241010

Interpretation:-It was find that 68% respondents usually not consider buying two wheeler online is because unavailability of test ride through online buying. 18% respondents said its moderately important.

Interpretation:-Safety issues always be a problem while buying product through online. 27% respondents said why they will not buying two wheeler online because of safety issue.

Interpretation:-Majority of respondents concerned about service who will provide the service when they buying two wheeler online. So 37% respondents said it is most important factor.25% said it is moderately important factor.

Interpretation:- It was find that majority of respondents i.e 41% respondents said it was moderately important.23% respondents said product quality is most important factor.

Interpretation:-Documentation issues is factor for any automobile dealer or user.So in case of online respondents said it is most important factor. 35% respondents said it is most important factor. 36%respondents said it is moderately important.

18. Would you consider buying two wheeler online, if a company provides you following benefits?ParametersYesMay beNoNot Respond

Attractive discounts2477712

Freebies13603512

Free extended warranty30631512

Additional payment option13315323

Road side assistance68301012

All of above17801211

Interpretation:-It was find that majority of respondents i.e 71% responds that if they will get attractive discount they will consider buying two wheeler online. 22% respondents responds yes they will consider buying two wheeler online, if they will get attractive discount.

Interpretation:- It was find that respondents didnt bother much about freebies. Only 12% respondents said yes they will consider buying two wheeler online. While 55% respondents responds may be and 32% respondents respond as no, they will not consider buying two wheeler online. 1% respondents didnt respond any of following option.

Interpretation:-58% respondents responds if they get free extended warranty they will consider buying two wheeler online. 27% said yes and 14 % respondents respond no they will not consider buying two wheeler online.

Interpretation:- 26% said they will consider if they will get additional payment option like cash credit basis, after documentation clear, etc. 44% respondents respond chose a option as may be.

Interpretation:- 57% respondents respond yes if they will get road side assistance while buying online two wheeler. 25 % said may be and 10% respondents doesnt respond any option.

Interpretation:-14% respondents said yes they will consider buying two wheeler online. 66%respondents respond may be and 10% respondents doesnt responds any option.

19. Would you prefer to buy two wheeler online, if company provides you following services?ParametersYesMaybeNoNot Respond

Authorized Service Centers5944314

Test ride at home6538314

High degree of customization60361014

All of above30361044

Interpretation:-49% respondents respond if company provide authorized service centre they will prefer buying two wheeler online. 37% respondents respond may be as option 12% doesnt responds any option.

Interpretation:- 54% respondents said if they will get test ride at their door step they will prefer buying two wheeler online. 32 % said it may or may not be buy two wheeler.

Interpretation:- 50% respondents said if they get customization option while buying online they will prefer buying two wheeler online. 30% respondents doesnt require any customization so they choice may be as a option.

Interpretation:-Overall only 33% respondents said yes they will prefer online buying two wheeler. 40% respondents said may be. 11% respondents said no they will not prefer buying two wheeler online and 16% respondents didnt choose any option.

15. What customization option would you like to have?ParametersYesMaybeNoNot Respond

Engine power (cc)5737188

Color803028

Brake type6723219

Tyre type4944198

Special graphics931548

Interpretation:- In customization option while buying two wheeler online 45% respondents choose engine cc as a preference option.

Interpretation:- 63% respondents respond colour as preferable customize option.

Interpretation:-It was find that if respondents will get brake type option like Front disk rear drum Both disk Both drum54% respondents respond they will prefer buying two wheeler online. 18% respondents choose option as may be and 17% respondents respond they will not prefer buying two wheeler online.

Interpretation:-It was find that if respondents will get tyre type like Tube tyre Tube less tyre39% respondents said yes they will prefer buying two wheeler online if they get tyre type option while buying online.

Interpretation:-74% respondents said yes if they will get special graphics option they will prefer two wheeler online

Limitations

Framing questionnaire Lack of interest of respondents The issues considered confidential by the authorities were not revealed because of which access to several data and information was not gained, which would be useful for the betterment of the project. Time constraint was one of the major limitation. As the summer internship period was only one month, the project did not match with the promotional schemes and offers of the stores under study. Sample size was small as it consists of 120 respondents.

Finding & Observation

Finding & Observation

Very few respondents were interested to buy a 2 wheeler online. There is a very vast scope to sell 2wheelers online as there are only 2 players in this segment of 2 wheeler markets, and Vespa can use its brand name very effectively. Most of the respondents were working and falls under age group of 20 -30 years and they are frequent online buyers. Majority of respondents were buying clothing, Fmcd, and doing utility payments through online. Most of the respondents are not the decision makers of their family.

Suggestions&Recommendations

Suggestions & Recommendations

Company needs more publicity about its new way of selling 2 wheelers online as we have found most of our respondents have done online shopping either for travel ticket/hotel booking, in purchasing household products, books, clothing etc. Only 0.7% of respondents have really experienced the purchase of automobiles. Company need to create advertisement on websites like olx.com as they are already in the business of selling 2 wheelers online though they deals in used automobiles but still people will come to about Piaggio new method of selling 2 wheeler online. As we have seen most of the respondents were not interested in purchasing 2 wheeler online but still around 20 respondents have agreed that they will consider buying the 2 wheeler online. If company will provide facilities like customization, extended warranties, customer support, and other value added services the those customers who are in dilemma whether to purchase a 2 wheeler online or not can be converted into a hot customer. If company could make it easier to resolve RTO clearance issues quickly and easier payment options then many customers can easily purchase a 2 wheeler online as we found many of our respondents were not preferring online purchase of a 2 wheeler just because of documentation and payment related issues. Company must need to ensure that a customer should get test drive even at the doors of the customers as it will make them realise that they are getting maximum delight after spending such a big amount.

Conclusion

Conclusion

After meeting 120 respondents and many retailers we found that Piaggio has a very good image in 2 wheeler segment and there is an immense opportunity to sell 2 wheelers online as it is a very new concept and only 2 or 3 players are there in this segment and hence Piaggio can use its popularity or its brand name which it has earned by its product like Piaggio ape, Apprilla etc.As the cost of Vespa is a bit high as compared to other scooters brand so Piaggio need to reduce its cost and it can be easily done by eliminating channel partners and the best way of doing it is to sell 2 wheelers online.While conducting research we have found many respondents were excited to know that Piaggio is going to sell its 2 wheeler online, so we conclude that with huge promotion on internet the company can enter into e- business of selling a 2 wheeler.

Bibliography

Bibliography

www.ibef.org www.pvpl.com www.vespa.in Book published on Piaggio Vespa.

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