TABLE OF CONTENTS

S.NO. CONTENTS PAGE

NO.

1. CHAPTER:1 – INTRODUCTION 7-11

2. CHAPTER:2 – OBJECTIVES &

MEHODOLOGY

12-13

3. CHAPTER:3 – CONCEPTUAL

DISCUSSION

14-16

4. CHAPTER:4 – DATA ANALYSIS 17-22

5. CHAPTER:5 – FINDINGS &

RECOMMENDATIONS

23-25

6. BIBLIOGRAPHY 26-27

7. Annexure 28-29

CHAPTER: 1

INTRODUCTION

Overview

Majority of Indians, especially the youngsters prefer motorbikes rather than cars. Capturing a

large share in the two-wheeler industry, bikes and scooters cover a major segment. Bikes are

considered to be the favorite among the youth generation, as they help in easy commutation.

India, is the second largest producer of two- wheelers in the world. In the last few years, the

Indian two-wheeler industry has seen spectacular growth. The country stands next to China and

Japan in terms of production and sales respectively.

The trend of owning two-wheelers is due to a variety of facts peculiar to India. One of the chief

factors is poor public transport in many parts of India. Additionally, two-wheelers offer a great

deal of convenience and mobility for the Indian family. Motorcycle companies like the Yamaha,

Honda, and Kawasaki, set up shop in India in collaboration with various Indian two-wheeler

companies. Bikes manufactured by Hero Honda, the only company manufacturing four-stroke

bikes at that time, gained massive popularity. Many companies such as Kinetic, TVS and Hero

also started manufacturing mopeds that proved immensely popular with people who wanted a

simple riding machine.

The latest trend in the two-wheeler market is the introduction of electrically operated vehicles

from a range of manufacturers such as Indus and Hero. These can be recharged from convenient

household electrical points. The only disadvantage is speed, which is restricted to around 25

miles per hour. Currently, the motorcycle market is witnessing a demand for higher volume

engines. Previously, the 100cc bikes were very popular owning to the high fuel efficiency

offered. However, the market is maturing fast. Sensing this movement, Bajaj has introduced the

Bajaj Pulsar, with 150, 180 and 200 cc engines with Dual Twin Spark Ignition (DTSi)

technology.

The motorcycle market share is about 81.5% of the total two wheeler market in India. Three-

fourths of the total exports in the two wheeler automobile industry are made in the motorcycle

segment. Exports are made mainly to South East Asian and SAARC nations. Two-wheeler

vehicle segment is expected to show slow growth of 10 percent CAGR (Compound Annual

Groth Rate) over the period of 2012-2016, as per the report.The two-wheeler market in India is

the biggest contributor to the automobile industry with a size of Rs.100,000 million.

Hero MotoCorp Ltd.

Hero Motocorp Ltd formerly Hero Honda, is an Indian motorcycle and scooter manufacturer

based in New Delhi, India. The company is the largest two wheeler manufacturer in the

world. In India, it has a market share of about 46% share in 2-wheeler category. On 31 March

2013, the market capitalisation of the company was INR 308 billion (USD 5.66 billion).

Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of

Japan. In 2010, when Honda decided to move out of the joint venture, Hero Group bought the

shares held by Honda. Subsequently, in August 2011 the company was renamed Hero

MotoCorp with a new corporate identity.

In June 2012, Hero Motocorp approved a proposal to merge the investment arm of its parent

Hero Investment Pvt. Ltd. into the automaker. The decision comes after 18 months of its split

from Honda Motors.

Type Public company

Industry Automotive

Headquarters New Delhi,India

Key people Dr. Brijmohan Lall Munjal (Chairman)

Pawan Munjal (MD & CEO)

Parent Hero Group

“Hero” is the brand name used by the Munjal brothers for their flagship company, Hero Cycles

Ltd. A joint venture between the Hero Group and Honda Motor Company was established in

1984 as the Hero Honda Motors Limited at Dharuhera, India. Munjal family and Honda group

both owned 26% stake in the Company.

During the 1980s, the company introduced motorcycles that were popular in India for their fuel

economy and low cost. A popular advertising campaign based on the slogan 'Fill it – Shut it –

Forget it' that emphasised the motorcycle's fuel efficiency helped the company grow at a

double-digit pace since inception. In 2001, the company became the largest two-wheeler

manufacturing company in India and globally. It maintains global industry leadership till date.

Formation of Hero MotoCorp

The name of the company was changed from Hero Honda Motors Limited to Hero MotoCorp

Limited on July 29, 2011.The new brand identity and logo of Hero MotoCorp were developed

by the British firm Wolff Olins.The logo was revealed on 9 August 2011 in London, to coincide

with the third test match between England and India.

Hero MotoCorp can now export to Latin America, Africa and West Asia.Hero is free to use any

vendor for its components instead of just Honda-approved vendors.

On 21 April 2014, Hero MotoCorp announced their plan on a $40 million(over Rs 240 crore)

joint venture with Bangladesh's Notiol Niloy Group in the next five years.

Mission

Hero MotoCorp’s mission is to become a global enterprise fulfilling its customer's needs and

aspirations for mobility, setting benchmarks in technology, styling and quality so that it

converts its customers into its brand advocates.

SWOT Analysis

Strength

1. Huge brand equity and one of the biggest players in the two wheelers

Indian market

2. Excellent R&D and wide variety of products in every segment.

3. Excellent distribution, over 3000 dealerships and service centers

4. Good advertising and excellent rebranding from Hero Honda to Hero Moto

Corp

Weakness

1. Absence in the premium bike segment

2.High imports for its spare parts i.e. over 30% imports

3. Most of the products have similar features and low on design and

innovation

Opportunity

1.Two-wheeler segment is one of the most growing industries

2.Export of bikes is limited i.e. untapped international markets

Threats

1. Strong competition from Indian as well as international brands

2. Dependence on government policies and rising fuel prices

3. Better public transport will affect two-wheeler sales

COMPETITORS

1. Yamaha

India Yamaha Motor Private Limited (IYM) is an Indian subsidiary of Yamaha Motor

Company, formed in 2008 as a joint venture with Mitsui. It produces a range of motorcycles for

domestic consumption and export including the FZ16, FZ-S, Fazer and R15.

2. TVS

TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the

top ten in the world.

3. Bajaj Auto

Bajaj Auto Limited is an Indian two-wheeler and three-wheeler manufacturing company. Bajaj

Auto is a part of the Bajaj Group.

Bajaj Auto

Bajaj Auto Limited is an Indian two-wheeler and three-wheeler manufacturing company.Bajaj

Auto manufactures and sells motorcycles, scooters and auto rickshaws.It was founded

by Jamnalal Bajaj in Rajasthan in the 1930s. It is based in Pune, Mumbai, with plants

inchakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttarakhand.The oldest plant at

Akurdi (Pune) now houses the R&D centre 'Ahead'. Bajaj Auto is a part of the Bajaj Group.

Bajaj Auto is the world's third-largest manufacturer of motorcycles and the second-largest in

India. It is the world’s largest three-wheeler manufacturer.On 31 March 2013, its market

capitalization was INR 520 billion(US$9.57 billion) making it India's 23rd largest publicly

traded company by market value.

Type Public company

Industry Automotive

Headquarters Pune,India

Key people Rahul Bajaj (Chairman)

Rajiv Bajaj (MD)

Parent Bajaj Group

History

Bajaj Auto came into existence on 29 November 1945 as M/s Bachraj Trading Corporation

Private Limited. It started off by selling imported two- and three-wheelers in India. In 1959, it

obtained a licence from the Government of India to manufacture two-wheelers and three-

wheelers and it became a public limited company in 1960. In 1970, it rolled out its 100,000th

vehicle. In 1986, it sold 500,000 vehicles in a financial year. In 1995, it rolled out its ten

millionth vehicle and produced and sold one million vehicles in a year.With the launch of

motorcycles in 1986, the company has changed its image from a scooter manufacturer to a two-

wheeler manufacturer.

According to the authors of Globality: Competing with Everyone from Everywhere for

Everything, Bajaj has operations in 50 countries by creating a line of bikes targeted to the

preferences of entry-level buyers.

SWOT Analysis

Strength

1. Excellent brand presence and marketing in India 2. Extensive research and development focus and highly

experienced player in the motorcycle segment 3. Widespread distribution network across India

4. Wide product range in terms of price, quality and categories 5. Featured in the Forbes Global brands list

Weakness

1.Not a global brand despite high volume production 2.Lack of performance bikes like major international brands

and sports bikes & cruisers.

Opportunity

1. Cheaper variants for tapping more in the rural segment

2. Premium sports bikes for urban areas 3. Constant growth in the two-wheeler segment

Threats

1.Cheaper imports from countries like China 2. Entry of international brands 3.Other motorcycle players have a strong brand presence

COMPETITORS

1. Yamaha

India Yamaha Motor Private Limited (IYM) is an Indian subsidiary of Yamaha Motor

Company, formed in 2008 as a joint venture with Mitsui. It produces a range of motorcycles for

domestic consumption and export including the FZ16, FZ-S, Fazer and R15.

2. TVS

TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the

top ten in the world.

CHAPTER: 2

OBJECTIVES AND METHODOLOGY

Significance and objectives

1. To analyze the consumer preference.

2. To know which manufacturer is providing better services .

3. To analyze the customers satisfaction.

4. To determine the factors influencing the choice of customers regarding bikes.

The primary objective of project is to gain through theoretical experience, a

sound appreciation and understanding of the theoretical principles learnt during

BBA. Project is oriented towards developing the skills, knowledge .This project is

basically meant to understand the practical aspects of concepts learned during all

the semesters.

Scope of the study:-

Advantages to be gained during Project

are:-

It gives the information regarding the preferences and choice of the

different brands.

Understanding problems of the company and identifying how they deal for solution.

Methodology

A) Primary data

Primary data are those data which were collected afresh and for first time and thus

happen to be original in character.

Face to face (Interview)

Observation

B) Secondary Data

When an investigator uses the data that has been already collected by others is

called secondary data . The secondary data could be collected from the journals,

reports & various publications. The advantage of the secondary data can be

economical, both in terms of money and time spent. In this project Secondary

data was collected through:

Websites

News papers

CHAPTER: 3

CONCEPTUAL DISCUSSION

A comparative analysis compares two or more things: “two texts, two theories, two historical

figures, two scientific processes, and so on” (Walk, 1998). A comparative analysis “may be

about two similar things that have crucial differences (two pesticides with different effects on

the environment) or two similar things that have crucial differences, yet turn out to have

surprising commonalities (two politicians with vastly different world views who voice

unexpectedly similar perspectives on sexual harassment).” Here are some guidelines on

constructing a comparative analysis paper.

Making an Argument

A comparative analysis requires you to make an argument. Some describing or defining of

the two elements will be necessary, but the heart of the paper comes with your argument

about how they compare. Do not get stuck in only describing each element, push yourself

into the work of making an argument about how the two compare (which involves drawing

conclusions, analyzing, and synthesizing). Be sure you are drawing from the higher-order

thinking skills in the Bloom’s Taxonomy, below (Bloom, 1956).

Constructing and Structuring the Paper

“To write a good compare-and-contrast paper, you must take your raw data—the similarities

and

differences you've observed—and make them cohere into a meaningful argument”

(Walk,1998).

There are a few approaches to take:

Comparative Approaches

Basic Comparative Approach: weigh A and B equally

Lens Approach: weigh A less heavily than B, use A as a lens through which to view B

“Lens comparisons are useful for illuminating, critiquing, or challenging the stability of a

thing that, before the analysis, seemed perfectly understood. Often, lens comparisons [often]

take time into account: earlier texts, events, or historical figures may illuminate later ones,

and vice versa” (Walk, 1998).

Organizing the Paper

“There are two basic ways to organize the body of your paper.

In text-by-text, you discuss all of A, then all of B.

In point-by-point, you alternate points about A with comparable points about B.

If you think that B extends A, you'll probably use a text-by-text scheme; if you see A and B

engaged in debate, a point-by-point scheme will draw attention to the conflict. Be aware,

however, that the point-by- point scheme can come off as a ping-pong game. You can avoid

this effect by grouping more than one point together, thereby cutting down on the number of

times you alternate from A to B. But no matter which organizational scheme you choose, you

need not give equal time to similarities and differences. In fact, your paper will be more

interesting if you get to the heart of your argument as quickly as possible” (Walk, 1998).

Linking A and B

“In a compare-and-contrast, the thesis depends on how the two things you've chosen to

compare actually relate to one another. Do they extend, corroborate, complicate, contradict,

correct, or debate one another” (Walk, 1998)? The introduction of your essay should include

a clear thesis statement that places that comparative argument right up front. “All

argumentative papers require you to link each point in the argument back to the thesis.

Without such links, your reader will be unable to see how new sections logically and

systematically advance your argument. In a compare-and contrast, you also need to make

links between A and B in the body of your essay if you want your paper to hold together. To

make these links, use transitional expressions of comparison and contrast (similarly,

moreover, likewise, on the contrary, conversely, on the other hand)” (Walk, 1998). “You can

use signal phrases like “another similarity” or “another difference.” If you are discussing both

similarities and differences, you can use a signal phrase like “on the other hand” to show your

move from comparison to contrast” (OWL at Purdue, 2011).Using a Frame of Reference

A frame of reference is “the context within which you place the two things you plan to

compare and contrast; it is the umbrella under which you have grouped them. The frame of

reference may consist of an idea, theme, question, problem, or theory…The best frames of

reference are constructed from specific sources rather than your own thoughts or

observations…Most assignments tell you exactly what the frame of reference should be, and

most courses supply sources for constructing it. If you encounter an assignment that fails to

provide a frame of reference, you must come up with one on your own. A paper without such

a context would have no angle on the material, no focus or frame for the writer to propose a

meaningful argument” (Walk, 1998).

'Customer satisfaction is a term frequently used in marketing. It is a measure of how

products and services supplied by a company meet or surpass customer expectation.

Customer satisfaction is defined as "the number of customers, or percentage of total customers,

whose reported experience with a firm, its products, or its services (ratings) exceeds specified

satisfaction goals." In a survey of nearly 200 senior marketing managers,

71 percent responded that they found a customer satisfaction metric very useful in managing

and monitoring their businesses.

It is seen as a key performance indicator within business and is often part of a Balanced

Scorecard. In a competitive marketplace where businesses compete for customers, customer

satisfaction is seen as a key differentiator and increasingly has become a key element of

business strategy.

"Within organizations, customer satisfaction ratings can have powerful effects. They focus

employees on the importance of fulfilling customers' expectations. Furthermore, when these

ratings dip, they warn of problems that can affect sales and profitability.... These metrics

quantify an important dynamic. When a brand has loyal customers, it gains positive word-of-

mouth marketing, which is both free and highly effective."

Therefore, it is essential for businesses to effectively manage customer satisfaction. To be

able do this, firms need reliable and representative measures of satisfaction.

"In researching satisfaction, firms generally ask customers whether their product or service

has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction.

When customers have high expectations and the reality falls short, they will be disappointed

and will likely rate their experience as less than satisfying. For this reason, a luxury resort, for

example, might receive a lower satisfaction rating than a budget motel—even though its

facilities and service would be deemed superior in 'absolute' terms."

The importance of customer satisfaction diminishes when a firm has increased bargaining

power. For example, cell phone plan providers, such as AT&T and Verizon, participate in an

industry that is an oligopoly, where only a few suppliers of a certain product or service exist. As

such, many cell phone plan contracts have a lot of print with provisions that they would never

get away if there were, say, 100 cell phone plan providers, because customer satisfaction

would be far too low, and customers would easily have the option of leaving for a better contract

offer.

CHAPTER: 4

DATA ANALYSIS

Q1. Which bike do you have?

Hero 47

Bajaj 38

Any other 15

Q2. In which family Income level do you Fall?

100000-200000 22

200000-300000 45

300000-400000 23

above 400000 10

0

10

20

30

40

50

1

Income level

No

of

Per

son

s

100000-200000

200000-300000

300000-400000

above 400000

Any other

Bajaj

Hero

Q3. For how long do you own a bike?

0-1 year 34

1-2 year 29

2-3 year 26

above 3 year 11

Q4. For what purpose do you use your Motor Bike?

Hero Bajaj

Office Purpose 9 4

Personal purpose 13 15

Joy Purpose 19 16

Other 6 3

0

10

20

30

40

No of

Persons

1

No of years

0-1 year

1-2 year

2-3 year

above 3 year

0

5

10

15

20

Office

Purpose

Personal

purpose

Joy

Purpose

Other

Purpose

No of Persons

Hero

Bajaj

Q5. Which Model do you Have?

Hero

Bajaj

Splendor 21 Platina 100 7

Hunk 13 Discover 12

Karizma ZMR 7 Pulsar 11

Any other 6 Any other 8

Hero -

Bajaj-

0

5

10

15

20

25

Model Name

No of Persons

Hero

Splendor

Hunk

Karizma ZMR

Any other

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

Hero Bajaj

Newspaper 4 2

Television 23 16

Magazine 2 1

Friends & Relative 18 19

0

2

4

6

8

10

12

14

Model Name

No of Persons

Bajaj

Platina 100

Discover

Pulsar

Any other

Q7. Does Advertisement Influence your decision in choosing a

Motor Bike?

Yes 87%

No 5%

Cant say 8%

0

5

10

15

20

25

Hero Bajaj

Name of Company

Newspaper

Television

Magzine

Friends & Relative

No of Persons

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

Hero Bajaj

Yes 25 23

No 22 15

Yes

No

Cant say

Q9. Which Factor below Influence your decision?

Hero Bajaj

Price 72% 78%

Mileage 78% 64%

Quality 65% 48%

0

5

10

15

20

25

30

Hero Bajaj

Company Name

No of persons

Yes

No

Resale Value 40% 28%

Status symbol 10% 7%

Q10. If new Bike with good features comes in, then would you like to

change your bike?

Hero Bajaj

Yes 19 21

No 17 14

0%

20%

40%

60%

80%

100%

Hero Bajaj

Company Name

No of Persons

Price

Mileage

Quality

Resale Value

Status symbol

Cant say 11 3

0

5

10

15

20

25

Yes No Cant say

Views

No of Persons

Hero

Bajaj

Chapter: 5

Findings And

Recommendations

FINDINGS

1. Most of the Pulsar & Karizma ZMR are purchased by young generation 18 to 30 because

they prefer stylish looks and rest of the models of Hero are purchased more by daily users who needs more average of bikes than looks.

2. Hero is considered to be most fuel-efficient bike on Indian roads.

3. Service & Spare parts are available throughout India in local markets also.

4. While buying a motorcycle, economy is the main consideration in form of maintenance cost, fuel efficiency.

RECOMMENDATIONS

1. Bajaj should introduce some more models having more engine

power.

2. Hero should think about fuel efficiency in case of upper segment

bikes.

3. More service centers should be opened.

4. Maintenance cost and the availability of the spare parts should also

be given due importance.

BIBLIOGRAPHY

http://www.heromotocorp.com/en-in/about-us/about-us.html

http://www.bajajauto.com/bajaj_whybajaj.asp

http://www.slideshare.net/sushant_04/hero-motocorp-ltd-ppt

http://www.mbaskool.com/brandguide/automobiles/1131-bajaj-auto-limited.html

http://www.mbaskool.com/brandguide/automobiles/1196-hero-moto-corp.html

http://www.slideshare.net/lostandy/bajaj-auto-limited

Annexure QUESTIONNAIRE

NAME ………………………………………………

CONTACT NO ……………………………………….

AGE…………………………

OCCUPATION:- Businessman Employee

Student Other

Q1) Which Bike do you have?

Hero Bajaj Any Other

Q2) In which Family Income do you Fall?

100000-200000 200000-300000

300000-400000 Above 400000

Q3) For how long do you own a Bike?

0-1 year 1-2 year

2-3 year above 3 years

Q4) For what purpose do you use your Bike?

Office Purpose Personal Purpose

Joy Purpose Other

Q5) Which Model do you have?

Hero : - Splendor Hunk

Karizma ZMR Other

Bajaj: - Platina 100 Discover

Pulsar Other

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

Newspaper Television

Magazines Friends/Relatives

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

Yes No Can’t say

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

Yes No Can’t say

Q9) Which factors influence your decision?

Price Mileage Quality

Resale Value Status Symbol

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

Yes No Can’t say

Any Suggestions for Company

…………………………………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

Date: (Signature)