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Case on “ Bajaj Pulsar Bike”

Market Planning

(Final submission)

Term – I

(Course Instructor – Professor Neelu S. Bhullar)

NMP XX Group-XIII

Abhya Nand Singh, 20NMP-03Rajeev Kumar, 20 NMP-66

B. Venkata Rao, 20 NMP-16

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Manoj Kumar Gupta, 20 NMP-30Kundan Kumar, 20 NMP-28

NATIONAL MANAGEMENT PROGRAMME (NMPXX)EXECUTIVE PGPM

MANAGEMENT DEVELOPMENT INSTITUTEGURGAON-122001

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TABLE OF CONTENTSExecutive Summary1.0 Bajaj Auto Profile2.0 About Pulsar Bike3.0 Market Environment4.0 Swot Analysis For Pulsar5.0 Consumers Of Bajaj Pulsar

5.1 Consumer Behaviour5.2 Interview Of Recent Buyers Of Bajaj Pulsar5.3 Suggestions/ Recommendations For Ensuring Customer

Satisfaction6.0 Competitor Analysis

6.1 Overview Of Competitors6.1.1Hero Honda Motors Limited6.1.2Tvs Motor Ltd6.1.3 Honda Motorcycles & Scooters India Pvt. Ltd6.1.4 Kinetic India Ltd6.1.5 Yamah Motor India Ltd

6.2 Strengths & Weaknesses Of Competitors7.0 Market Segmentation

7.1 Broad Segmentation In Two Wheeler Industry7.2 Sub Segmentation of Motorcycle Segment

7.2.1 Profile Of Various Segments And Price Range7.3 Market Targeting By Bajaj Auto & Its Competitors7.4 Market Positioning Of Bajaj Pulsar

8.0 ConclusionsReferencesAnnexure-1

Bajaj Pulsar Bike“I told you to bring our Pulsar” wife provoked for second time while driving

back to home last month. Way back a month, I made a visit to my native place HAL Amethi, just after finishing the Mid Term-I exams at MDI Gurgaon. (This experience is narrated by Manoj kumar Gupta, an executive of HAL, currently a

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participant of National Management programme at MDI, Gurgaon) Since I was outside for a long period of almost over one month, I had to face a big shopping list and fulfill the promises made on phones. My home is located 15 kms. away from Amethi city. It was 28th of May 07, my wife chalked out plan and we were ready to make a Amethi city trip this evening. It seemed that she was ready with the list and even bigger dream. At evening just before departing from home, she enquired of vehicle we were to go with. I promptly replied “of course with car”. I could see the question mark on her face. The options were, bike (Pulsar) or car (Wagon R). Can’t we go with bike? Wife asked; “No we have to shop many things”, I summed up with.

Our short distance journey started with car. It took 20 minutes to reach the city. It was the highly rush hour and we needed to park the car. I had to struggle to park the car that evening, and could hardly find the place for parking. As soon as we started walking towards the shops after locking the car, the first sentence, my wife spoke was “So difficult to park, I told you to bring the pulsar”. After an hour of shopping and gol-gappa programme, we had only an additional bag packed with some dresses and few cosmetics. For the remaining part of shopping, we had to move to jewelers market 3 kilometers from this place. We went back to car and reversed anyway to pick the road ahead. While driving along the crowded road we were far slower in speed all along the road. Meanwhile one motorcyclist suddenly came in front of car and I could hardly save him to collide with the gap of centimeters. Immediately wife reacted “Puzzling traffic, I told you to bring pulsar”. By next half an hour we could finish our shopping and immediately caught the way to home. But still something was waiting to happen and a handsome jam appeared mid way because of trucks. We had to wait for at least five minutes until the jam cleared, But this time I became the first to say spontaneously “Yes, we could have chosen pulsar for trip”, wife was really glad to hear it. And we spent some time talking in the same context. Here, wife had a chance to justify her, the way she wanted. “See, with bike we needn’t to wait for such jams and could have enjoyed a free style trip also” wife said. After the jam cleared we were cruising on the road directed towards our home.

In rest of the journey there was a big argument going on, within my mind. The context was, who among us was right i.e. which was suitable means for that drive, whether car or bike? Also I was flooded with questions like; Is the bike best for short trips? are the bikes increasingly penetrating suburban and rural markets? Are the premium bikes, first choice of young people? Do the new generations ladies like to ride premium bikes with their husbands for outing? What are the driving factors for liking of bikes in rural & suburban areas?

Perhaps above are the facts, which may help us concluding the fast growing trend of two wheeler market. The Bajaj Auto limited has a 72% of market share in India for 180CC bikes segments.

EXECUTIVE SUMMARY

 The expected rise in household income, easy availability of consumer finance, growing replacement demand, frequent introduction of newer trendy models by players and the increasing aggressiveness of key players will fuel two-wheeler

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growth in the long term. Overall demand will be driven by accelerated growth in motorcycle sales.The expected surge in rural demand will play a key role in steering motorcycle demand. Domestic motorcycle sales are expected to grow at a CAGR of 11.5 per cent, surpassing 10 million units by 2010.11. This massive climb will drive overall two-wheeler sales growth by 11.4 per cent to 13 million units by 2010-11.

TWO WHEELER SALES TREND

Competition in the motorcycle industry is mainly confined to three major players, i.e. Bajaj Auto, Hero Honda and TVS motors who among them are having 94% of the total market share. These three players are likely to continue dominating the market for some time to come.Consumer profile and the Segmentation of the motor cycle has been studied and the same is divided into three major segment, i.e. Economy, Executive and the premium segment. The economy segment consumer looks for value for money, Executive segment looks for product features as well as fuel economy, whereas premium segment consumer looks for performance. Technology and R&D will be the key feature in driving the consumer up the value chain. Profitability of the premium segment is the highest, whereas the economy and the executive segment will provide the volumes.Bajaj Auto has maintained its leadership position in the economy segment and it is catching up with market leader Hero Honda in the executive segment. However, the real edge for Bajaj Auto comes in the premium segment. The company will have to keep investing in R&D and keep up with new product innovations to maintain its leadership in this segment. The company can really expand its probiking niche segment by continuing to provide superior value proposition to the consumer.

1.0 BAJAJ AUTO PROFILE:

The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel

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and finance. The group’s flagship company, Bajaj Auto, is ranked as the world’s fourth largest two- and three- wheeler manufacturer and the Bajaj brand is well-known in over a dozen countries in Europe, Latin America, the US and Asia.

It was founded in 1926 by Jamnalal Bajaj. His son, Kamalnayan Bajaj took over the business in 1942. He not only consolidated the group, but also diversified into various manufacturing activities.

The present CMD of the group, Rahul Bajaj, took charge of the business in 1965. Under his leadership, the turnover of the Bajaj Auto, the flagship company has gone up from Rs.72 million to Rs.46.16 billion (USD 936 million), its product portfolio has expanded and the brand has found a global market.

For our marketing planning project, we have selected Bajaj Pulsar ( product of M/s Bajaj Auto Ltd.)

2.0 ABOUT PULSAR BIKE

Before the introduction of the Pulsar, the Indian motorcycle market trend was towards fuel efficient, small capacity motorcycles (that formed the 80-125 cc class). Bigger motorcycles with higher capacity virtually did not exist (except for Enfield Bullet). The launch and success of Hero Honda CBZ in 1999 showed that there was latent demand for performance bikes. Bajaj took the cue from there on and launched the Pulsar twins (150cc & 180cc) in India on November 24, 2001. The Pulsars excited segments of Indian youth, mainly due to muscular shape, stylish design and powerful engine (in Indian context) at reasonable fuel efficiency and affordable cost. The Pulsars are believed to be greatly successful in redefining the market trend. Since the introduction and success of Pulsar, the Indian youth began expecting high power and other features from affordable motorcycles.

Company TVS Hero Honda Bajaj Honda Kinetic Specs. Apache Fiero Fx CBZ

EXTREMEAchiever Pulser

150Pulser 180

Avenger Uni Corn GF 170

Type 4 Stroke, air cooled

4 Stroke, Air Cooled

Air Cooled, 4 Stroke,

4 Stroke, Air Cooled,

4 Stroke, Air Cooled

4 Stroke, Air Cooled

4-Stroke, DTS-I

4 Stroke, Air Cooled

4 Stroke, 4 Valve engine

Displacement 147.5cc 147.5 cc 149.2 c.c. 149.1cc 143.9cc 178.61cc 180 cc 149.1 cc 165.12 cc

Maximum Power

9.95kw / (13.5 bhp) @8500 rpm

Maximum Power 12 bhp (8.95 kW) @ 7000 rpm

10.6 KW (14.4 Ps) @ 8500 rpm

10 KW (13.4 Bhp)

12 BHP @ 8500rpm

15 BHP @ 8000rpm

16.5 bhp/12.15 Kw @8000 rpm

13.3 bhp @ 8000 rpm (9.9 KW)

14.8bhp@8000rpm

No of gears 5 Speed 4 Speed 5 Speed 5 Speed 5 Speed 5 Speed 5 Spped 5 Speed 5 Speed

As of 2006, the Bajaj Pulsars arguably form the most popular motorbike product in the newly emerging 150+ cc class of Indian two wheeler market. Bajaj Pulsar directly competes with several other Indian motorbikes in this class, such as, CBZ from Hero Honda, Apache and Fiero Fx from TVS, Unicorn from Honda and a few models from Yamaha and Suzuki. To retain Pulsar's

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position of leadership in its class, Bajaj Auto has been regularly making alterations to it to make the motorbike look afresh at all times.

Due to the shape of the fuel tank, many Sri Lankan youngsters refer the Bajaj Pulsar as "The Nut Crusher". Unfortunately, even in the upcoming model, the Pulsar DTS-Fi 220cc, the manufacturers have failed to change the way the fuel tank is constructed, leaving the problem un-rectified. Newly released 200cc pulsar has colored plastic coverings of oil cooler to change the shape of the tank. Bajaj Pulsar DTS-Fi has got the “Bike of the Year 2007” by CNBC-TV18 Autocar and Auto Awards. Camparison of different models in premium segment bikes

3.0 MARKET ENVIRONMENT:

Idia is the second largest manufacturer and producer of two-wheelers in the world. It stands next only to Japan and China in terms of the number of two-wheelers produced and domestic sales respectively. The Indian two-wheeler industry made a small beginning in the early 50s when M/s Automobile Products of India (API) started manufacturing scooters in the country. Until 1958, M/s API and M/s Enfield were the sole producers of two wheeler.

In 1948, Bajaj Auto began trading in imported Vespa scooters and three-wheelers, and in 1960, it set up a shop to manufacture them in technical collaboration with M/s M/s Piaggio of Italy. Under the regulated regime, foreign companies were not allowed to operate in India. It was a complete sellers’ market with the waiting period for getting a scooter from Bajaj Auto being as high as 12 years.

The motorcycles segment was no different, with only three manufacturers viz M/s Enfield, M/s Ideal Jawa and M/s Escorts. The two-wheeler market was opened to foreign competition in the mid-80s. The industry witnessed a steady growth of 14% leading to a peak volume of 1.9mn vehicles in 1990. With the availability fuel efficient low power bikes, demand swelled.

There has been a steady growth in the demand for motorcycles in India. Earlier, it was seen more in rural areas for its ease in maneuverability and wider wheel base leading to greater stability. Later, it became popular among all sections of the society, particularly the urban youth who liked the speed and style it imparted (to their personality).

The motorcycles overtook scooters’ market in 1998-99 and have not looked back. It is noteworthy to look at the sales of FY2006-07 is 7.78 mn as compared to 6.87mn of previous FY year.

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Motor cycles' Market share In India

46, 46%23, 23%

16, 16%6, 6% 5, 5% 4, 4%

Hero Honda

Bajaj Auto

TVS Motors

YamahaMotorLML

Others

Two Wheeler's market in India

66, 66%

22, 22%11, 11% 1, 1%

Motorcycles

Scooters

Mopeds

Others

4.0 SWOT ANALYSIS FOR PULSAR

STRENGTHS:

Bajaj Brand Image since 1950 . Network of 498 dealers and over 1,500 authorised service centers

across the country. Around 1,400 rural outlets have been created in towns with population of 25,000 and below. Overseas distribution network covers 50 countries world wide to cater export market.

Indigeniously developed bike in premium segment . Digital technology for ignition ( DTS-i) to improve performance of the

bike. Sturdy and most suitable for Indian roads. Stylish muscular Body shape attracted Indian Youth. Introduced Digital display for the first time in premium segment. Highest fuel economy in it’s class. Different variants are available. Undisputed market leader in premium segment . “Value for money and Value for customer”.

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Pulsar is being customised as per constantly changing customer needs.

Strategically located manufacturing facilities to reach nook & corner of India.

Overseas distribution net work world wide

WEAKNESSES:

Unable to tap 100 & 125cc market segment customers due to little higher price.

Many customers calling this as "The Nut Crusher" bike due to its fuel tank shape.

Body shape has been the same in other variants also.

OPPORTUNITIES:

In 50 countries world wide, where M/s Bajaj Auto perceives a good market potential. It’s in a position to invest in manufacturing activities apart from marketing, distribution and after sales & services through a well-established global network.

Exports contributes only 11% in it’s volume, hence there is a scope for improvement.

High potential to tap rural market in India.Bajaj Auto has already defined specialist dealerships for rural markets, called 'Rural Dealerships'.

Opportunity to tap higher-end customer (Probikers), who are knowledgeable, appreciative of contemporary technology, they are trendsetters and very choosy about what they ride. Bajaj Auto is in the process of setting up a chain of retail stores across the country exclusively for high-end, performance bikes.

THREATS:

Highly stiff competition in it’s class in the recent past by many leading players of two wheeler manufacturers.

Threat from low cost ( A-segment) and secondhand cars.

5.0 CONSUMERS OF BAJAJ PULSAR

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Motorcycles have been witnessing an upward sales trend due to changing consumer preference fuelled by new launches. Rising income levels of Indian middle class consumer were moved from scooters to motorcycles. Currently approximately 80 % of the market demand of two wheelers consists of motorcycles.

(Source: WAY2WEALTH, Industry update for 2 two wheelers dated 13-04-05 for Financial year 2004-05)

Also initially there was demand for low power motorcycles in the engine capacity of 100 cc. But now, more and more demand for higher power engines (Premier segment) is being created. The below tables indicates the percentage of motorcycles in total two wheelers segment.

Also initially the market for motorcycle had a rural bias. But the trend has changed towards a more balanced rural and urban segment. Further, export is also an area of growth of motorbikes increasing steadily year on year. With the booming exports, Bajaj Auto Limited (BAL) is partly insulated from the slowdown in domestic markets as exports form 16% of total sales. Bajaj Auto Ltd. has to keep their thrust on export market and exploit the opportunity more aggressively than its peers.(Source: 2 wheeler sector update dated 11-04-2007, Indsec Securities and Finance Ltd.)

Market Segmentation

Segment Share(%)

North 26

East 12

West 32

South 30

Demand : Past & Future

Year mn no.

1990-91 0.47

1991-92 0.43

1992-93 0.38

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1993-94 0.46

1994-95 0.65

1995-96 0.86

1996-97 1.03

1997-98 1.18

1998-99 1.44

1999-00 1.79

2000-01 2.18

2001-02 2.95

2002-03 3.84

2003-04 4.6

2004-05 5.3

2005-06 6

2006-07 6.8

2007-08 7.55

2008-09 8.4

2009-10 9.2

2014-15 14.15

(Source: Market forecast for automobiles two/ three wheeler industry available at http://www.indiastat.com)

5.1 CONSUMER BEHAVIOURThe salient features of consumer behaviour with respect to the product Bajaj Pulsar bike are given below:

Income Factor: The occupation types and the income pattern of the consumers play a very vital role in the buying behaviour of motor bike or any other two wheeler. It can be seen that the choice of the product largely depends upon the kind of budget a consumer is able to allocate. This certainly depends on the individual requirements too. Due to growth of economy, the per capita income in India is increasing significantly which has resulted in increase in disposable income. The rise in disposable income coupled with easy availability of finance

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Market Growth Rates

1990-91 - 1996-97 13.9%

1996-97 - 2001-02 23.4%

2001-02 - 2006-07 18.2%

2004-05 - 2009-10 11.7%

2009-10 - 2014-15 9.0%

Leading Players

Company Share (%)

Hero Honda 46

Bajaj Auto 23

TVS Motors 16

Yamaha Motor 6

LML 5

by various banks at reasonable interest rates is the major driving force which has greatly influenced the consumers for owning bikes of their choices.

Personal Factor: Consumer’s opinion about a product is influenced by his own experiences, his choices and his beliefs he has developed. Any consumer personally develops his choices due to his age, his stage in the life cycle, his psychological needs, his status in the society, his lifestyle, his personality, his self-concepts etc. His beliefs are influenced by the circumstances he faces in his life. The young generation male population has aspirations for more stylish and powerful bikes having latest technology and the features rather than the old and staid looking scooter of yesteryears or even bikes of smaller capacity and power. The educational level of the consumer effects his decision to go for newer designs which are more in tune with the modern times. Social Factor: Consumer’s buying pattern is also influenced by his immediate associates such as his family members, his friends, his co-workers his neighbors and his acquaintances. They all have influence on his buying behavior. Any consumer while buying a particular product is also mainly influenced by his immediate family. Now-a-days, people are becoming more outwardly oriented. Also people are becoming more consumption oriented. Further, there is shift from joint family to nuclear family which has resulted in more aspirations for the individuals. Effect of the peer group is also becoming more pronounced in shaping the consumer behavior.

Psychological factors: Psychological factors play a very important role in the buying decisions of a consumer. Many needs, arising out of the psychological states of mind which the consumer undergoes while making a decision to buy, play important role. These needs are vital in influencing the motive of buying.

5.2 INTERVIEW OF RECENT BUYERS OF BAJAJ PULSAR

As a part of this project work, twelve recent buyers of Bajaj pulsar motor bike were interviewed through ‘questionnaire’ method and interaction with them by the group members. A copy of questionnaire is enclosed at Annexure-1. Questionnaire included questions regarding age profile, income levels, occupation types, factors affecting buying behaviour, feedback of the customers on performance of the bike. A brief analysis of interview is presented below:

Age Group

0

10

20

30

40

50

60

18-25 26-35 36-45 45+

Years

%

Profession

0

10

20

30

40

50

60

70

Student Business Employed Unemployed

%

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Out of twelve respondents, ten belonged to less than 35 years age group, where as only two were over the age of 35. Among the respondents below 35 years of age, 40% were below 25 years while the remaining 60% were in the age bracket of 25-35 years. As regards the profession of the respondents, four were students, two business people and six were salaried people. This shows a bias toward young college going people and those people who are in the early stages of the careers.

Annual Income

0.010.0

20.030.0

40.050.0

60.070.0

Upto 1Lac

1 to 3 lacs 3 to 5 lacs above 5lacs

Income

%

Primary Use

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

Work Place Market/ outing Passion/Adventure

Purpose

%

Annual house hold income of most of the respondents fell into one lac to 3 lacs category. Three respondents had an annual house hold income of less than one lacs where as two respondents also had annual income of more than five lacs. Most of the respondents used the bike for commuting to their work places. This also indicates that the respondents were in the early stage of their work careers or college going students. One respondent each suggested that their prime usage was for market outing or passion/ adventure.

Average Monthly run (kms.)

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Upto 700 700 to1000

1000 to1500

1500 to2000

Above2000

%

Parameters influenced buying decision

0.00

1.00

2.00

3.00

4.00

5.00

6.00

Rat

ing

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Most of the respondents, i.e. approximately 75% had a monthly running of their bikes of less than 1000 km. However, some respondents also had high running of more than 2000 kms. As regards the parameters which affected their decision to buy the bike, all parameters like were pricing, ruggedness, mileage, driving comfort, style/ look & brand image more or less equally important. However, style/ look scored the highest among the influencing parameters. Ruggedness and driving comfort were the other more important parameters.

Advertising Media

0

1

2

3

4

5

TV/ Radio New spaper/Magazine

Hoardings Critic report

Communication Channel

0

1

2

3

4

5

6

Rat

ing

Of the various channels communication channels which affected the decisions of the consumer to buy the product, majority of the respondents indicated advice from friends, relatives or their own experience. Only three respondents indicated brand image and advertising. Of the three alternative channels of advertising, i.e. TV/radio, newspaper/magazine and hoardings, respondents were equally divided.

Respondents considered various other brands available in the market before buying Bajaj pulsar. Among these Suzuki Fiero and hero Honda CBZ were considered by five each of the correspondents. Two of the respondents considered TVS apache before buying the Bajaj Pulsar.

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Alternate Choice

0

1

2

3

4

5

6

TVSApache

SuzukiFiero

HeroHondaCBZ

HeroHonda

Achiever

HondaUnicorn

KineticGF-170

Overall Performance

012345678

After Sales Service

0

12

3

45

6

78

9

Very

satis

fied

Nei

ther

satis

fied

nor

diss

atis

fied

Very

diss

atis

fied

Most of the respondents were satisfied but not very satisfied. This is also reflected in their ratings of very good and good but not excellent. Of the parameters on which respondents were most satisfied was style. So customer expectations are very high. It is clear form data that no one very unsatisfied with performance.

5.3 SUGGESTIONS/ RECOMMENDATIONS FOR ENSURING CUSTOMER SATISFACTION

During survey, the respondents suggested the following scope for improvement. Some of the suggestions relate to the design of the product, whereas some are related with service centres.

Suggested improvements at manufacturing stage:

Improvement in quality of body paint (UV radiation protection) to prevent early fading of colour

Introduction of tubeless tyres in all variants/ models in order to enhance grip on the road and avoidance of immediate deflation on puncture

Price reduction Apex features (digital panels, LED tail lamp, oiled cooled

engine) in all variants Better look of body Additional new features like digital panels should be cost free

Suggested improvements at Service centre: Crowd management at service centers like effective utilization/

capacity enhancement at service facilities and improvement in amenities.

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Performance feedback

3.403.603.804.00

4.204.404.60

Comptetive p

rice

Rugged

ness

Brand i

mage

Mileag

e

Style/

look

Ratin

g

Establishment of telephonic assistance for technical and maintenance information.

Creation of database of customers to facilitate reminding next service dates.

The most important finding from the interview of the customers is that M/s Bajaj Auto Ltd. has to thrust upon the improvement in After sales service facilities to achieve higher level of customer satisfaction

6.0 COMPETITOR ANALYSIS

Competitors of a product are not only the direct competitors competing in that particular segment, but all direct, indirect and potential solutions which satisfy the same need of the consumer are considered as competitors. In fact this concept is to be taken further to include all products or services which are competing for the consumer’s budget. Hence the competitors of “Bajaj pulsar” Motorcycles have been identified on different levels of product form, product category, generic need level and the consumer budget level. Competitors in the product form level are those brands which are directly competing with “BAJAJ PULSAR” in the premium motorcycles segment, i.e. Hero Honda Achiever, Hero Honda CBZ, Honda Unicorn, TVS Apache, Yamaha Gladiator and LML Graptor.

In the product category of two wheelers are all those players which are in the products like scooters, mopeds, scooterettes, motoscooterettes and motorcycles of all segments, i.e. entry level, premium and sports bikes.

The third level of competitors are those who are satisfying the generic need of transportation and includes various forms of public transport like buses or suburban rail system, auto/taxis, second hand cars and segment A cars.

The fourth levels of competitors are those who are vying for the consumer’s budget. These have been illustrated in the diagram shown below.

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LEVELS OF COMPETITION FOR BAJAJ PULSAR

6.1 Overview of Competitors:

India is the second largest market for two wheelers in the world and the motorcycles command 82% of the total no. of two wheelers sold in India.

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Scooters

PULSARCBZ, Achiever,Unicorn,ApacheFiero

PRODUCT FORM PREMIUM SEGMENTMOTORCYCLESS

Bicycle

Entry level bikes

Sports Bikes

Mopeds

MotoscooterettesPRODUCT CATEGORY: TWO WHEELERS

Scooterettes

Auto/Taxi

Small Car

Second hand car

Public transport(Buses/Metro/Suburban)GENERIC NEED: TRANSPORTATION

Vacation/Holiday package

White goods CONSUMER BUDGET

Investment

Laptop/PCs

Competition in two wheeler space has been heating up with new launches happening consistently across segments. An overview of competitors with their relative strengths, weaknesses, size, profitability, growth and strategies etc. is presented here.

6.1.1 Hero Honda Motors Limited:

Hero Honda is currently the world’s largest motorcycle manufacturer thanks to its fuel efficient, high quality products made in collaboration with Honda motorcycles, Japan.The range of Hero Honda motorcycles include the Hero Honda Dawn, Hero Honda Splendor, Hero Honda Passion, Hero Honda Glamour, Hero Honda CBZ and Hero Honda Karizma.

When Hero Cycles and Honda Motor Company of Japan inked their joint venture in India in April 1984, few could have imagined that the two would go on to create history. In a little over two decades, the world's largest manufacturer of bicycles and the global leader in motorcycles have created the world's single largest motorcycle company. 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 today is a Hero Honda. The current sales and financial highlights of the company are given in the table below.

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SORCE: http://www.herohonda.com/investors_pdf/financials_at_glance.pdf

Hero Honda has built two world-class manufacturing facilities at Dharuhera and Gurgaon in Haryana that now churn out over 3 million bikes per year. During the year substantive expansion have taken place in both the plants raising the capacity to manufacture close to four million bikes per year. Third Greenfield project at Haridwar is under progress which will initially augment the capacity by 0.5 millions bikes by mid 2007 and eventually increase the capacity to 1.5 million bikes per year by 2010.

Hero Honda has got a very strong dealer network and customer relationship program. Hero Honda has set up over 2400 customer touch points, comprising a mix of dealers, service centres and stockists across rural and urban India. Hero Honda has built and cultivated a strong network and relationship with internal and external stakeholders, including Investors, Dealers, Vendors and Employees.

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These relationships have helped the company hold on to the mantle of World No.1 for years in succession.

The main strength of Hero Honda is synergy. The two partners, leaders in their respective domains, have been able to consistently draw on each other's strengths. The Hero Group's deep domain knowledge of the Indian market and its supplier network has meshed with Honda's mastery over four-stroke engine technology to create modern and fuel-efficient machines at affordable prices for India’s 250-300 million strong middle class.

Progressively through the 1980s, the 1990s and now in the 2000s, Hero 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 Hero Honda build products that are ahead of their time.

In the 1980s, for example, Hero 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 Hero Honda sold millions of bikes purely on the commitment of increased mileage.

Hero Honda was also one of India’s first automotive companies to get close to the customer. Over the years, feedback has flowed back and forth seamlessly through a unique CRM program - the Hero Honda Passport Program which now has over 2.5 million members on its roster. The program has not only helped Hero Honda understand its customers and deliver value at different price points, but has also created a loyal community of brand ambassadors. HHML introduced cutting edge fuel injection technology in its GLAMOUR Model and it is the first company to do so. The company further wants to introduce this technology in other models also progressively.

Company is committed to maintain its leading position in the ever growing Indian market. As Brijmohan Lal Munjal, the Chairman, Hero 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”.

6.1.2 TVS Motor Ltd:TVS group was formed as a transport company in 1911 as a leading producer of automotive components. It entered two wheeler industry in the 1980s. TVS Motor was originally incorporated in 1982 as Indian Motorcycles Pvt. Ltd to produce motorcycles in collaboration with Suzuki, Japan, the company later went public under the banner Ind-Suzuki Motorcycles Limited, which was later renamed TVS-Suzuki Limited. The perfect blend between the best design engineers and the latest technology made TVS-Suzuki one of the leading (Third largest) two-wheeler manufacturers in the country and has reached tenth position among the world listing. TVS Apache has already become the number 2

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brand in the premium segment of the motorcycle market and is expected to gain a sizeable share in the segment during the current financial year.

It has two state of the art manufacturing plants with total capacity 2 mn vehicles, out of which motorcycles capacity is 1.3 mn vehicles. All India reach through excellent sales and service network. It’s dealer and customer network is widely spreaded in India which includes over 500 dealers and 2500 customer touch points. Globally, TVS Motor Company is the first two-wheeler manufacturer to be honoured with the hallmark of Japanese Quality - The Deming Prize for Total Quality Management.

TVS Motor Company recorded a growth of 26% per cent in turnover to Rs. 939.62 Crores, growth of 32% in units of motorcycles sold to 233,506 units for the first quarter ended June 2006. Profit Before Tax (PBT) was at Rs. 30.14 crores and Profit After Tax (PAT) stood at Rs. 21.26 crores.

Source: http://www.tvsmotor.in/pdf/analystmeet2005.pdf

6.1.3 Honda Motorcycles & Scooters India pvt. Ltd.:Established in 1999, the Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) is a wholly owned subsidiary of Honda Motor Company Ltd., Japan and is located at Manesar, Haryana. Honda's dream for India is to not only manufacture 2-wheelers of global quality, but also meet and exceed the expectations of Indian customers with outstanding after sales support.

The initial installed capacity of Honda plant was 100,000 scooters per year, which has reached 6,00,000 scooters by the year by 2007 and motorcycle capacity shall be 4,00,000 per annum. The total investment outlay for the initial capacity was Rs. 215 crores and now the accumulated investment is 800 crores.

Honda launched Unicorn, its first motorcycle in the Indian market in 2004. Powered by a newly developed Honda 4-stroke, 150cc engine and incorporating cutting-edge technologies developed by Honda's global R&D team. Unicorn is an engineering masterpiece with international design appeal.

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Honda has tried to replicate its unique dealership and customer servicing centres in India in the same line as done across the globe. Wherever you travel across the globe, Honda dealerships stand out with their unique identity. The design of the dealership in India has also been done with the same purpose in mind. Every Honda dealership is known as a H.E.A.D. - Honda Exclusive Authorized Dealer. Each H.E.A.D. exclusively handles Honda 2-wheelers and promotes business activities based on policies that focus on customer satisfaction. They are the representatives of HMSI in their respective markets and provide 4S facilities under one roof as per Honda's worldwide standards. These include sales, service, spare parts and safety in riding.

6.1.4 Kinetic India Ltd.:

The Kinetic Group of companies is a leading player in the automotive industry in India. Kinetic Group, founded in 1974, has sold over 6 million vehicles in India. It has a history of innovation and pioneering and has introduced several new concepts that have revolutionized the two wheeler industry. Kinetic brought the concept of personalized transport to India with the launch of the moped Luna in 1974. In 1984, it brought to the Indian customers the first-ever gearless scooter which has come to symbolize comfort, convenience and universal appeal. It has also brought to India new technologies such as four valve engines, electric start on scooters and motorcycles, v- twin engines, USD forks etc. It is the only company to offer top-end world class bikes Comet and Aquila to Indian bike enthusiasts.

The group has an international technical collaboration with Hyosung Motors of Korea. It has three state of the art manufacturing facilities at Koregaon Bhima, Ahmednagar and Pithampur; and a nationwide network of nearly 450 dealers and over 1,000 service centers. The company exports vehicles to developed countries like USA, Canada, Latin America, Europe, Africa, Middle East and South Asia and has won several excellence awards for exports on state and national level.

The company is preparing to launch some very exciting Italian designs over the next two years. The GF 170 Laser bike is another product of the Kinetic-Hyosung collaboration and is positioned in the premium segment of the two-wheeler market. The GF 170 Laser sports a hip, sporty look thanks to its unique design elements that include twin headlamp, half-fairing, curvaceous rear-view mirrors, and a chunky masculine fuel tank.

6.1.5 Yamah Motor India Ltd.:

Yamaha Motor India Sales Pvt Ltd is a wholly owned subsidiary of Yamaha Motor Co, Ltd, Japan. Its product range includes Gladiator, G5 in the standard segment and Crux and Libero in the basic segment.

Having operated in India as technology provider for almost two decades, YMI was incorporated in August 2001 as 100'% subsidiary of YMC, Japan after severing its ties with Escorts. Since then Yamaha India has launched several models, however, their success rate in the market has been poor. At one time Yamaha was a leading player in the two stroke bikes, but after phasing out of two stroke

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technology due to stringent pollution norms, it has not been very successful in adapting to four stroke technology. As a result company market share has declined to 4%. However, the company is gearing for regaining its market share and has targeted to sell 1 million units per year by 2010.

After the subdued response to the Fazer, Yamaha Motor India has made another foray into the executive bike segment with the Gladiator. 6.2 Strengths & Weaknesses of Competitors:

COMPETITOR STRENGTHS WEAKNESSESHero Honda Market leader

Best dealer & service network

Good resale value Fuel efficiency Large number of

variants at each price point

Good quality

Not so successful in premium segment

TVS Motors Indigenous design Third largest market

share Comparatively good

dealer and service network

Less fuel efficient Poor resale value Less no. of variants

Yamaha Motor India

Robustness Durable spare parts

Poor fuel efficiency Poor dealer & service

network Poor availability of

spare parts No major technology

innovation Poor resale value Poor aesthetics

Honda (HMSIL) Sporty look Good design

Dealership network not fully developed

Poor availability of spare parts

Only two variants

Kinetic Motor Good dealer network Brand image

Relatively new entrant in motor cycles

Comparitive features of different models:

CompetinLML

GraptorLML Graptor

Bajaj Avenger

Bajaj Avenger

Bajaj PulsarBajaj Pulsar 180 (DTS-i)

Hero Honda Achiever

Hero Honda Achiever

Hero Honda CBZ(Disc Brake)

Hero Honda

Honda Unicorn 150 cc

Honda Unicorn (Electric Start)

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g Bikes Particulars

CBZ(Disc Brake)

MouthShut Product Rating:

Product Recommendation: 75% 83% 83% 93% 84% 94%

 Fuel Consumption (kms/litre):

Comfort:

Reliability:

Handling and Control:

Looks:

Price (Rs)* 50,900 63,000 58,875 NA 54,100 54,000Engine

Engine Displacement (cc)

150.8 178.6 178.6 149.1 156.6 149.1

Maximum Speed (kmph) NA 109 127 101 100 NAEngine Type 4-stroke 4-stroke 4-stroke 4 4-stroke 4-strokeStart Type Kick Electric Electric Kick/Electric Kick ElectricFuel Capacity (litres) 17 14 18 12.5 12.5 13Maximum Power (bhp) 13.45 16.5 16 13.4 12.6 12V DCMileage (kmpl) NA 45 78 NA 45 NANo. of Cylinders 1 1 1 NA 1 1Other Features

No. of Gears /Variator 5 5 5 5 5 5Electrics (AC/DC) 12V DC 12V DC 12V DC NA 12V DC 12V DCOverall Length (mm) 1980 2185 2000 2040 2090 2090Height (mm) 1150 1060 1065 800 1115 1095Wheelbase (mm) 1280 1475 1320 1290 1330 1340Ground Clearance (mm) 170 162 155 160 150 168Kerb Weight (kg) 136 155 139 134 130 139

Competi Kinetic GF170 Laser

LML BeamerLML Beamer (Electric

TVS ApacheTVS Apache

TVS Fiero FXTVS Fiero FX Disc

Yamaha Gladiator

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ng Bikes: Particulars

Kinetic Motors GF-170 Laser Start) Yamaha Gladiator

MouthShut Product Rating: Product Recommendation: 85% 100% 88% 69% 94%

 Fuel Consumption (kms/litre):Comfort:Reliability:Handling and Control:Looks:

Price (Rs)* 49,100 54,000 NA 52,900 NAEngine

Engine Displacement (cc)

166 151 147.5 147.5 123.7

Maximum Speed (kmph) 115 NA NA NA NAEngine Type 4-stroke 4-stroke 4 stroke 4-stroke 4Start Type Electric Electric Kick Kick Kick/ElectricFuel Capacity (litres) 13.7 NA 16 NA 13Maximum Power (bhp) 14.6 13.45 13.5 12 NAMileage (kmpl) 50 NA NA NA 67No. of Cylinders 1 1 1 1 1Other Features

No. of Gears /Variator 4 5 5 4 5Electrics (AC/DC) 12V DC 12V DC NA 12V DC NAOverall Length (mm) 1968 1980 NA 2020 2065Height (mm) 1073 1150 NA 1067 1100Wheelbase (mm) 1292 1280 NA 1270 1300Ground Clearance (mm) 195 170 1260 155 160Kerb Weight (kg) 134 136 136 126 123

Source: Mouthshut.com

7.0 MARKET SEGMENTATION

Segmentation of any consumer market is carried out in order to target, adjust and fine tune the marketing program profitably by recognizing the differences in

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consumer preferences. The major segmentation variables used are: geographic, demographic, psychographic and behavioural. Impact of these factors and their relevance with respect to two wheeler industry in general and motorcycles in particular are outline briefly here.Geographic Factors:Main geographic factor in segmentation of two wheeler or motorcycle markets are rural versus urban markets. Preference of urban markets is mainly for executive and premium segments. Rise in income level of rural areas and the rising preference for motorcycles as a means of transport due to its sturdiness and high mileage is going to accelerate the motor cycle demand in rural areas. As high mileage along with satisfactory looks is important for rural consumers, demand will be mainly for the economy/entry segment and lower executive segment. Demand growth in rural areas will be more than urban areas in future, as shown in the graph below.

Demand projection in urban and rural areas for motorcycles

Another basis for segmentation can be domestic versus exports market and further segmentation of domestic market into four regions.

Market Segmentation

Segment Share(%)

North 26

East 12

West 32

South 30

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Region wise market share of motorcycles; source: indiastat.com

Although, exports in two wheelers are growing significantly (36% in 2005-06) mainly due rising demand for Indian motorcycles from Sri Lanka, Colombia, Iran and Philippines, its percentage to total sales is small at 6.8%.

Two-wheeler demand forecast (Urban, rural, domestic and Exports up to 2010-11)

Demographic Factors:Major demographic factors which affect the consumer preferences with regard to motorcycles or any two wheelers are age, stage in life cycle, gender, education level and income levels. Increasing proportion of the Indian population in the age group of 18-24 years is leading to the preference of consumers to mainly motorcycles and to some extent ungeared light scooters. Increase in education level of women is leading to demand for light ungeared scooters. Motorcycles are mainly used by young population who is unmarried or are married but at early stage of their life cycle with no or very young children. Profession wise, they are mainly students or young professionals.

Psychographic Factors:Psychographic factors consist of life style, values and personality traits. According to SRIC-BI VALSTM classifications, consumers of motorcycles can be thought to either belong to achievers or experiencers, more likely the later type. Experiencers are young, enthusiastic, impulsive people who seek variety, and excitement. They spend a comparatively high proportion of income on fashion, entertainment and socializing. Achievers are successful goal oriented people who focus on career and family and buy premium products and demonstrate success to their peers. Both these groups have enough resources. Consumers of motorcycle are outdoor loving, adventurous sports oriented people who exhibit trendy life style.

Behavioral Factors:Page 27 of 38

Behavioral factors consist of mainly benefits sought by consumers, user status and loyalty status. Consumers of motorcycles may be seeking one or more of following benefits : fuel economy, style, sturdiness and riding comfort. First time users are mainly going for motorcycles or ungeared scooters. Many second time users are upgrading from existing geared scooters to motorcycles or going for higher capacity premium segment. Motorcycle consumer may not exhibit brand loyalty in case of going for up gradation and may opt for best value in the segment.

7.1 BROAD SEGMENTATION IN TWO WHEELER INDUSTRY:Two wheeler industry is broadly segmented into following categories:

Mopeds geared scooters gearless scooters motorcycles

However, sales wise motorcycle segment has grown to almost 82% of the total two wheeler market. This has happened because of shifting preference of young Indians for stylish and powerful motor cycles instead of traditional scooters, rise in income levels, increase in rural demand due to rising income levels in rural areas. The turn around came in 1998, when motor cycles overtook scooters and it has not looked back since then. This is illustrated from the following graph.

Motorcycle sales overtake Scooters in 1998Changing sales patterns with respect to different two wheeler segments is also illustrated from following graphs.

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Source: TVS analyst meet 2005 (official TVS web site)

7.2 SUB SEGMENTATION OF MOTORCYCLE SEGMENT:

The motorcycle segment can be further subdivided into economy, executive and premium segments.

Comparison of economy, executive and premium motorcycles

Each segment has been further subdivided like Economy standard and economy deluxe, lower executive and upper executive, premium (mileage sensitive) and premium customer segments. can be further subdivided into economy, executive and premium segments.

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Motorycles: Segment-wise share for Industry (source: CRIS-INFAC)

7.2.1 PROFILE OF VARIOUS SEGMENTS AND PRICE RANGE:

Market Segment: Products, Characteristics and Price Range

Segment Price Range Major characteristics of the

consumer

Economy 30,000-35,000

1. Looking for good utility vehicle at low cost2. Caters largely to low-income urban customers (largely small shop owners and traders, junior officers, salesmen and supervisor level officers), and low-income buyers from rural areas, who are highly dependent on monsoons and the overall economic performance

Executive 36,000-45,000

1. The lower band of this segment is more conscious of economy, durability and style.2. The upper band is more feature and style-conscious

Premium 46,000-55,000

Highly status/style/feature/power conscious; nouveau riche. Preferred by rising income urban youth, BPO and software sector executives

Upper Premium

55,000 and

Identified by either Engine Power and/or ultra premium features. This segment

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above will not settle for less than the best.

Of late the the demarcation has been diminishing between various segments like economy and executive segments and competitors are launching products at various price points trying to fill the existing gaps. Also customer preferences are moving towards more pricey, powerful and stylish motorcycles.

Changing customer preferences within motorcycle segment

Further, there has been a trend to consider the segmentation in terms of engine capacity and the motorcycle market is divided in three segments: (i) entry or the price category, (ii) value or the executive category, and (iii) premium or the performance category. With rapid growth of the motorcycle market, the consumer segments have been changing and newer niches have come into play. From late 2004-05, Bajaj Auto has been considering a new segmentation which, is as follows:1. The 150cc+ segment, where Bajaj Auto's Pulsar twins and the Bajaj Avenger compete in this segment.2. The 125cc segment, where Bajaj Auto competes with its Discover DTS-i.3. The upto 110cc segment in which Bajaj Auto has its CT 100, Discover 110cc and more recently, the Platina.

Market share as per this segmentation is as follows.

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Segment wise Market share according to Engine capacitysource: Bajaj Auto web site

7.3 MARKET TARGETTING BY BAJAJ AUTO & ITS COMPETITORS:

In motorcycle segment, the top three major players, i.e Hero Honda, Bajaj Auto and TVS motor are following a differentiated marketing approach and targeting all the three segments by various offerings. However, they have dominance in different segments.Entry or economy segment is very price sensitive. However, the profitability is the lowest as the competition is very intense. In this segment Bajaj Auto has the maximum market share.

Market share in Economy segment, FY 07 (4 months); source: Bajaj web site

Executive or the value segment is mainly driven by product features and technology. Hero Honda is the leading player in this segment but, Bajaj Auto has been giving stiff competition in this segment and increased its market share to 21% in 2006-07.

FY 05 FY 07 (4 months)

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Market share in Executive segment; source: Bajaj web site

In the premium segment, Bajaj Auto has the market leader position. The main drivers in this segment are technology and performance. This segment has the highest profitability and relatively low competition. This segment constitutes 10 per cent of the market. The driving force in the segment has been the Pulsar 150 DTS-i. After the introduction of a feature-upgraded model in October 2004, sales grew by 37 per cent during the year. In the higher end of this segment, Bajaj Auto is present with Pulsar 180 DTS-i and the Avenger DTS-i, which was launched during the year 2004. Initially, the Pulsar 180 was not differentiated from the Pulsar 150 in terms of looks. This was carried out in 2005-06, and resulted in a 64 per cent surge in sales of the Pulsar 180. Bajaj Auto continues its leadership position in this segment. During the year 2005-06, Bajaj Auto opened a new Probiking showroom in Pune exclusively for the high-end bikes - Pulsar 180 DTS-i and Avenger DTS-i. In February 2007, Bajaj Auto has launched its new Pulsar 200 model in this segment.

FY 05 FY 07 (4 months)

Market share in Premium segment; source: Bajaj web site

7.4 MARKET POSITIONING OF BAJAJ PULSAR:

Bajaj Pulsar is positioned as a performance bike in the upper premium segment. Major value propositions for the positioning and differentiation of the brand in this segment was technology, design, styling and performance, which includes mileage, power and other things like reliability and comfort. Bajaj is rolling all of these into a product for its consumers. It's the combination of all of these five factors, which makes for a unique product and that's why we it is a great success.

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“Bajaj pulsar” has virtually redefined biking in this country. Pulsar, launched in 2001 is the market leader in the 150 cc + performance bike segment. More than that, this brand changed the fortune of Bajaj Auto Ltd. Before the launch of Pulsar, Indian bike market was divided broadly into Economy,Executive and Premium Bikes. In 1999 Hero Honda created a new segment of 150 cc performance segment with its CBZ. But Pulsar came and gave a new life into the Performance segment. Although not a pioneer, Pulsar made the performance segment one of the fastest growing segment in the two wheeler market.

Apart from the performance, a major part of the success in creating the brand was the classic advertising campaign "Definitely Male ". The creative people found the new product from Bajaj distinctly different. It was Bajaj's first bike without Kawasaki label. The new bike was an R&D and design marvel. Pulsar was designed by the renowned design house Tokyo R&D. The creative team knew that the communication of this brand should also be different. They stuck upon the Big Idea of India's He-Bike. Although lot of bikes take the persona of Macho bikes it was more oriented towards being "sexy". The Big Idea was to position the bike as World's first bike endowed with a Gender. This led to the classic campaign of all times " Definitely Male". The campaign together with the design and performance catapulted the brand into stratospheric sales level.

Bajaj targeted the 18-24 with Pulsar but later found that the brand appealed to a much older audience. This helped Bajaj to change its target audience to 21-35 years. Bajaj did not rest with the laurels. It knew that Pulsar is the golden key to control the entire bike market. Hence Pulsar got undivided attention from the company. In 2003 another milestone event happened in the product lifecycle of the brand. Bajaj launched its new technology DTSI. DTSi stands for Digital Twin Spark Ignition which delivered more power and efficiency. The increased performance of the brand took Pulsar to greater heights. 2004 and 2005 saw some cosmetic changes in the brand which excited the customers and thus cementing Pulsar's position in the market.

Pulsar comes in two variants : 180 cc and 150 cc. Where 180 cc excited the performance bikers, 150 cc was for the mileage conscious ones. The 150cc variant took lot of customers away from the executive segment to the performance segment.In order to cater to different segments, Bajaj has carved out its traditional dealership network into four distinct channels. For the first time in the industry, Bajaj Auto started its new chain of showrooms for performance biking under a new brand, Bajaj Probiking. It’s targeted at offering the high-end customer a different pre- and post-sales experience. In future all the bigger and more powerful bikes will be launched from the Probiking showrooms. Though dedicated showrooms for high-end products are a global phenomenon in the automobile industry, this is the first time it’s being tried out in India. Bajaj Auto, has tried to create a niche by concentrating on the biking community and creating Probiking showrooms.

Bajaj Auto has further extended the portfolio with the launch of the new 200 cc ‘Pulsar’ DTS-i recently. The latest offering has set new benchmarks in technology, performance, and styling to address the needs of a growing segment of pro-bikers. The new Pulsar has many firsts to its credit like an Oil

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cooler, both front and rear tubeless tyres, new digital console, use of split seats for styling and comfort and electric start as the sole means of engine cranking, dispensing with the kick lever. Pulsar 200 is being launched with a new campaign revolving round the concept of Free Biking.

Launch of Pulsar 200 DTS-i would further reinforce its position in this segment. The bike joins the 150 cc and the 180cc Pulsar DTS-i to extend the Pulsar DTS-i range across a range of price and performance points.

8.0 CONCLUSIONS: Demand is continuously increasing for two wheelers bikes due burgeoning

economy. Frequent introduction of newer trendy models by players and the

increasing aggressiveness of key players will fuel two-wheeler growth in the long term.

Rural demand will play a key role in steering motorcycle demand Easily availability of finance/loans and increasing disposable income of

Indian middle class is a thrust to two wheeler industry. Major players Hero Honda, Bajaj Auto and TVS motors controlling about

95% market share. Technology and R&D will be the key feature in driving the consumer up the

value chain. Vendor’s consolidation is taking place in the industry to maintain quality

and competitive price. Dealer’s segmentation is taking place to serve effectively all targeted

market segments.

References: 1. Industry update on 2 wheelers dated 13 April’ 2005 from

http://way2wealth.com2. Related information from Indiastat.com and indsecurities.com 3. Official web site of Bajaj Auto Ltd.4. Official web site of TVS Motors5. Official web site of Hero Honda6. Official web site of Kinetic motors7. CRIS INFC two wheeler annual report

Annexure-1FORMAT OF QUESTIONNAIRE GIVEN TO RESPONDENTS

Dear Sir / Madam,

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We are the students of Post Graduate Diploma in Business Management (PGDBM) Program at Management Development Institute, Gurgaon (Session 2007-08). We are carrying out a survey on Motor bike industry in India.

In above regard, you are kindly requested to spare some time to attend to this questionnaire for your opinion. This study is solely for the academic purpose and forms part of the aforesaid PGDBM Program.

QUESTIONNAIRE1. What is your age group

a) 18 – 25 yearsb) 26 – 35 yearsc) 36 – 45 yearsd) Above 45 years

2. What is your profession?a) Student b) Businessc) Employedd) Unemployede) Any other (please specify) ____________________________________

3. What is your annual house hold income a) Below Rs. 1 Lakhb) Between Rs. 1 Lakhs – Rs. 3 Lakhsc) Between Rs. 3 Lakhs – Rs. 5 Lakhsd) More than Rs. 5 Lakhs

4. Prime use of motor bike for you is:a) Reaching your work place b) Going to market/ outingc) Passion / adventures d) Any other (please specify) ____________________________________

5. What is the average monthly running of your motor bike:a) Less than 700 km b) 700 km – 1000 kmc) 1000 km – 1500 kmd) 1500 km – 2000 kme) Above 2000 km

6. Please rank the following factors in order of preference* for your decision in buying BAJAJ PULSAR (*Order of preference should be given on a scale of 1-6; 1 = no preference, 2 = very little preference, 3 = little preference, 4 = moderate preference, 5 = high preference, and 6 = very high preference. For example, you give very high preference to ‘price’, please write ‘6’ against option (a) price.):

a) Competitive Price ______b) Ruggedness ______c) brand image ______d) Mileage ______e) Style/look ______f) Driving comfort level ______g) any other (Please specify) _____________

7. What influenced your decision to buy Bajaj Pulsar ?

a) Own experience b) Advice from family

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c) Advertisingd) Advice from friends/ relativese) Any other source (please specify) ____________________________

8. Which advertising media has maximum influence on you:

a) Television / Radiob) Newspaper/ magazines c) Hoardings on public placesd) Article by critic or industry reportse) Any other source (please specify) ____________________________

9. Which other models/ make of motor bike did you consider before purchasing Bajaj Pulsar?

a) TVS Apacheb) Suzuki Fieroc) Hero Honda CBZd) Hero Honda Achievere) Honda Unicornf) Kinetic GF-170g) Any other source (please specify) ____________________________

10. How do you rate the performance of Bajaj Pulsar on overall basis ?

a) Excellentb) Very Goodc) Goodd) Satisfactorye) Unsatisfactory

11. How do you rate* the following factors of Bajaj Pulsar’s performance? (*Please rate on a scale of 1-5; 1 = unsatisfactory, 2 = satisfactory, 3 = good, 4 = very good, and 5 = excellent. For example, you give ranking as ‘Excellent’ to ‘price’, please write ‘5’ against option (a) price.):a) Competitive Price ______b) Ruggedness ______c) brand image ______d) Mileage ______e) Style/look ______f) any other (Please specify) _____________

12. How satisfied you are with after sales service provided by the company/ dealer?

a) Very satisfied b) Somewhat satisfied

c) Neither satisfied nor dissatisfied d) Somewhat dissatisfiede) Very dissatisfied

13. If you are not fully satisfied with ‘Bajaj Pulsar, please give reasons for dissatisfaction in brief:

a) ____________________________________________________________

b) ____________________________________________________________

c) ____________________________________________________________

14. Any suggestion(s) to Baja Auto Ltd. for improving your satisfaction level:

___________________________________________________________________Page 37 of 38

___________________________________________________________________

T H A N K Y O U

Name of the Respondent : ___________________Contact No.: ___________________

Rajeev Kumar (Mobile: 9873549095) / A. N. Singh (Mobile: 9871795212) e-mail : nmp20rajiv_k@mdi.ac.in / nmp20abhya_s@mdi.ac.in

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