Chapter-1 Introductionoverview of THE INDIAN MOBIKE INDUSTRYThe Indian two-wheeler industry is dominated by three players, Bajaj, Hero Honda and TVS Suzuki, who account for 80 percent of the total two-wheeler market. The other players including Kinetic Engineering, LML and others account for the remaining 20 percent of the market. The industry can be divided into three broad segments: Scooters, motorcycles and mopeds. In the scooters segment Bajaj is the market leader, Hero Honda is the market leader in the motorcycles segment and in the segment of mopeds, TVS controls the major chunk of the market. Most Indian players in the two-wheeler industry had been into some kind of strategic alliance, technical collaboration or joint venture with foreign players, mainly Japanese firms. Hero-Honda, is a joint venture between the Munjal-promoted Hero Group and Honda Motor Co. of Japan; TVS-Suzuki was an alliance with TVS and Suzuki Motors (till September 2001); Bajaj-Kawasaki a joint venture between Bajaj Motors and Kawasaki; and Yamaha-Escorts, a joint venture between Escorts and Yamaha Motor Corp. (till June 2001). Indian automobile market, be it the two-wheeler segment, the three-wheeler segment or the car segment, is yet to come to a stage where all the models are developed indigenously. For years now, Indian companies have been dependent on their foreign joint venture partners or collaborators to provide them with the technical know-how. This trend too is in for a change. Leading the pack in this arena is Bajaj, which has been Successful at designing models in-house. Bajaj's Safire and Spirit have been able to bag the scooter of the year award for 2003 and 2004 respectively. In fact, its Spirit was adjudged the "Indigenous product design of the year" for the year 2000. The recently launched Pulsar from the Bajaj stable is yet another home-grown product, albeit in tandem with Japanese design house, Tokyo R&D. Bajaj has been laying increased emphasis on its R&D so as to be able to launch new products to tap the markets at all possible price points. Other companies too are adapting the strategy of designing and developing products indigenously. TVS's Victor is yet another development in this direction and this indigenously built model has been a success in the markets. Overview of Auto Mobile Industry in IndiaA two-wheeler is used as a personal/family vehicle or a goods carrier in the developing countries, whereas it is confined to sports/racing (heavy motorcycles) or short distance shopping (mopeds) in developed countries. The world two-wheeler market is dominated by Japan. Japanese manufacturers account for around 65% of the total two-wheeler production in the world. However, production within Japan has been declining due to lower domestic demand and shift in manufacturing base outside the country. Japan is also the world's largest exporter of two-wheelers in the world controlling around 75% of the world trade. Its major markets are China, USA and Europe. In terms of player positions, Honda Motors Corporation, Yamaha Motors and Suzuki Motors Corporation share the top three slots in the world two-wheeler market. The table below shows the production and sales figures of motorcycles and scooters in Japan during the past decade More than 50% of the production in Japan is exported out of the country. This scenario contrasts directly with the Indian scenario. In India, only about 2% of the production in FY99 was exported The Asian continent is the largest user of two-wheelers in the world. This is due to poor road infrastructure and low per capita income, restrictive policy on car industry.The technology for two-wheelers is not as well developed as for car industry. This is due to oligopoly between top five players in the segment, compared to thirty manufacturers in the car industry.

BAJAJ AUTOMOBILESThe Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance.The groups flagship company, Bajaj Auto, is ranked as the worlds 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.Founded in 1926, at the height of India's movement for independence from the British, the group has an illustrious history. The integrity, dedication, resourcefulness and determination to succeed which are characteristic of the group today, are often traced back to its birth during those days of relentless devotion to a common cause. Jamnalal Bajaj, founder of the group, was a close confidant and disciple of Mahatma Gandhi. In fact, Gandhiji had adopted him as his son. This close relationship and his deep involvement in the independence movement did not leave Jamnalal Bajaj with much time to spend on his newly launched business venture.His son, Kamalnayan Bajaj, then 27, took over the reins of business in 1942. He too was close to Gandhiji and it was only after Independence in 1947, that he was able to give his full attention to the business. Kamalnayan Bajaj not only consolidated the group, but also diversified into various manufacturing activities.The present Chairman and Managing Director 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 from one to and the brand has found a global market. He is one of Indias most distinguished business leaders and internationally respected for his business acumen and entrepreneurial spirit.

BAJAJBrandisthevisualexpressionofourthoughtsandactions.Itconveystoeveryoneourintentiontoconstantlyinspireconfidence.Ourcustomers are the primary audience for our brand.Indeed, our Brand Identityis shaped as much by their belief in Bajaj as it is by our own vision.Everything we do is always reinforce the distinctiveness and the power ofour brand. Wedo thisby living our brand essence and by continuouslyseekingtoenhanceourcustomersexperience.Ourbrandessenceencapsulates our mission at Bajaj.It is the singular representation of ourterms of endearment with our customers.It provides the basis on which wegrowprofitablyinthemarket.Blendingtogetherandtheimplicitexpectations of our customers.By challenging the given. By exploring theunknown and thereby stretching ourselves towards future.

COMPANY PROFILE

Bajaj Auto has a technical tie-up with Kawasaki Heavy Industries of Japan to produce arange of the latest, state-of-art two-wheelers in India. Since the tie-up in 1986, Bajaj Autohas launched KB100, KB RTZ, KB125, 4S, 4S Champion, Boxer, Caliber, Caliber115,Wind125 and India's first real cruiser bike, theKawasaki Bajaj Eliminator. A Fortune 500companywithaturnoverofUSD10billion(Rs.45,840crore),KawasakiHeavyIndustries has crafted new technologies for over a hundred years. These technologieshave redefined space systems, aircrafts, jet engines, ships, locomotive, energy plants,construction machinery, automation systems, apart from a range of high quality, highreliabilitytwo-wheelers.Kawasakihasgiventheworlditslegendaryseriesof600-1200ccNinjaand1600Vulcanbikes.StraightfromKawasakidesignboards,theKawasakiBajajEliminatorredefinesthepleasureof"biking"inlooksaswellas possible.

OUR BRANDS AND VALUES

Brandvalues:Learning,Innovation,Perfection,SpeedandTransparency.Bajajconstantly inspiresconfidence through excitementengineering.Learning:Learning is how we ensureproactivity.It is a value that embracesknowledge as the platform for building well informed,reasoned, and decisive actions.

INNOVATIONInnovation is how we create the future.It is a value that provokes us to reach beyond the obvious in pursuit of that which exceedsthe ordinary.

PERFECTION

Perfection is how we set new standards.It is a value that exhibits our determination to excel by endeavouring to establish newbenchmarks all the time.

SPEED

Speed is how we convey clear conviction.It is a value that keeps us sharply responsive, mirroring our commitment towards ourgoals and processes.

TRANSPARENCY

Transparency is how we characterise ourselves.It is a value that makesus worthy of credibility through integrity, of trust throughsensitivity and of loyalty through interdependence.

POLITICAL ANALYSISTraditional GOVERNMENT OF INDIA has considered the automobile industry as a luxury segment. But realizing the growing importance of two-wheelers with the increasing necessity of personal transportation for the middle class in eighties, priority was given to the sector by favorable foreign policy. This brought about technology revolution to the two-wheelers as Japanese majors entered in technical and financial participation with Indian majors.GOI has a moderate intervention in the operations of two and three-wheeler industry. Excise duty structure, emission control, safety of rider, etc are all policy decisions. The excise duty on two-wheelers, which previously ranged between 10 to 30%, according to the engine capacity was rationalized in 1991-92 budget to only two-categories viz 15% upto 75cc and 25% above 75cc. This mainly affected manufacturers of 100cc category in the early nineties. Since then the excise duty structure for two-wheelers has been left unchanged till 1999. In the 1999-2000 budget, as a result of rationalization of duty structure the excise duty up to 75cc vehicles was increased to 16% while for those above 75cc decreased to 24%. As a result, scooter prices were reduced by Rs200-400 per vehicle. The components used for manufacturing two-wheelers are charged an excise duty of 15%. The industry has been asking GOI to reduce this excise duty to 10%. Two and three-wheelers sector was the first to be de-controlled from the clutches of government regulations. This has resulted in the entry of world majors and subsequent in technology and equity participation with Indian players. This has lead to technology revolution for the two-wheelers in 1980's.The regulation of safety of the rider is controlled by state government notifications, these vary in different states. For example helmets are compulsory for two-wheeler riders in New Delhi and some other states. The same is optional in Maharashtra and Karnataka. The price of the two-wheelers varies across the country due to variation in registration charges, state taxes and octrai levied by states. The GOI controls availability and price of petrol, the fuel for two-wheelers. But with the dismantling of Administered Price Mechanism (APM), The availability of unleaded petrol across the country will be a crucial factor, as catalytic converters work satisfactorily only under unleaded petrol. SOCIAL ANALYSISThe main social factor that associated with automobile industry is the environmental concerns and HEALTH HAZARDS, (including the welfare of workes etc, )in form of various diseases due to auto pollution. . Some of the issues of pollution related to automobile are discussed below.ECONOMICAL ANALYSISAutomobile industry is the indicator of the technological health of the country. It also reflects economical status of a country. India planners need to consider that the auto industry one segment that is capable of very rapid growth unlike traditional areas like agriculture, minerals, chemicals, energy, textiles, gems etc. While all sectors need to be encouraged, the auto sector is not only capable of very rapid growth but also of good exports and huge employment.In the past, auto industry suffered from the stigma of being considered elitist and was subjected to crippling restrictions and taxation that still hold it back. There is 40% MODVAT on the components and 35% customers duty on imported kits. After production there 245 to 32% excise duty plus 12% local sales tax some other local taxe. So every time you buy a car, bike or truck, you give one to government in taxes. The impact on employment is also little understand.Every direct or indirect salaries job also generates huge territory employment to the providers of food, clothing, shelter, health, education entertainment, recreation, construction etc. accounts of 10% of Indias auto industry, the cumulative impact is huge. Indian two-wheeler manufacturers have everything going for them in this battle. They have a large, mature market, which offers them tremendous volumes. All of them have built up huge capacities which offer scale economies. They have technology support from some of the leading names in the world such as Honda, Yamaha, Suzuki and Kawasaki.If India cut the total taxes on auto by half, there would be a huge immediate boost in sales and production. If this sacrifice by the governments can generate may times greater value in jobs and economic activity, this time of crisis is the ideal time to use autos as a vehicle to kick start the entire economy.SWOT ANALYSIS OF BAJAJ AUTOMOBILESSTRENGTHS Bajaj Automobiles draws it's strength from 29 years of experience in handling the ever changing automobile scenario strong customer relationships ability to provide the cutting edge technology at best-value-for-money an excellent service & support infrastructure.WEAKNESSES The company needs to evolve a comprehensive plan & strategy to make inroads into a part of middle class & upper middle class. Lack of R & D centers also makes it difficult to launch new products over here.OPPORTUNITIES The present rate of growth of the Automobile Industry & a large potential available in these areas provides excellent opportunity for the company to widen its market. With the fast growing economy the pricing strategy needs to be tackled with care as it can decide upon long term decisions of the company. Globalization is yet another opportunity, if followed effectively & promptly.

THREATS It is natural that threats from the existing as well as new entrants will affect the present turnover & Market share. The nearest competitors having the identical product range are the greatest threat to the company.

PRODUCT PROFILE

Two-wheelers (Domestic)

The domestic two-wheeler market is dominated by motorcycles. Itsgrowth in 2006-07 needs to be viewed in two clearly distinct phases. Forthefirst three quarters of the year, the two-wheelers witnessed veryhealthy growth, and it was a part of the continuing growth story of theprevious few years. In thelast three months of theyear, however, overallmarket growth slackened considerablylargely due to steadily risinginterest rates and constraints on credit growth due to actions taken bythe Reserve Bank of India, banks andfinancial institutions tocontrol non-food credit. However, this credit squeeze is, at worst, a short term phenomenon. The fact is that over the last four years, India has achieved a compoundannual GDP growth rate well in excess of 8 per cent - something that is expected to continue over the future. Over the last decade, household incomes have increased significantly in urban as well rural India and, with it, consumer spends - especially on non-food items and durables.Two-wheelerpenetration still remains very low byany standard. Therefore, the longerterm story for two-wheeler is an extremely good one, where the countryis bound to see healthy double-digit market expansion in the years tocome. In 2006- 07, the industrys overall sales of two wheelers grew by 12 per cent from 7.57 million to 8.47 million units. Motorcycles sales grewby 14 per cent from 6.2 million to 7.1 million. The share of motorcycles inthe two-wheelers segment for the industry as a whole increased from 82per cent in 2005-06 to 84 per cent in 2006-07.

Motorcycles

Bajaj Autos sale of motorcycles by volume grew by 24.4 per cent in 2006-07 which was significantly greater than that of the industry.Consequently, the Company has continued to increase its market sharein motorcycles, which stands at 33.5 per cent in 2006-07, compared to30.8 per cent in 2005-06. As in the previous year, this Management Discussion and Analysis analyses the performance of Bajaj within different broad segments of the motorcycle industry.

The High Performance Segment:

This includes motorcycles in theengine class of 150 cc and above. Bajaj Auto competes here with thePulsar range and Avenger DTS-i2.

The 125 cc Segment:

Bajaj Auto competes in this category withDiscover DTS-i 125 and therecently launched Discover DTS-i 135.3.

The 100 cc Segment:

Here, Bajaj Auto competes with the Discover110, Platina and the CT-100.

DISTRIBUTION NETWORK

Bajaj Auto is restructuring its marketing and distribution network toaddress the different requirements of the urban and rural markets.The company has recently launched its high-end bike dealership Probiking and is now in the process of categorising its existing 479dealership network into urban and rural dealerships.Rajiv Bajaj, MD, Bajaj Auto said, Besides Probiking, which is our channel for high-end bikes, we will split the rest of the two-wheelerdealer network into rural and urban.This is being done to cater to the different needs of the rural and urbancustomer in terms of product, infrastructure, working capital, financingand servicing.As competition hots up in the Indianmotorcycle industry. Bajaj Auto Ltdand TVS Motor Company are chalking out aggressive marketing plans torace ahead in this sector. In a bid to regain its leadership position, BajajAuto is planning to expand its distribution network to reach out to awider target audience. Likewise, TVS Motor Company is all set to extendthe number of its dealership and service centres in the near future.Clearly, Bajaj Auto and TVS Motor are shifting gears.On Bajaj Autos distribution strategy, says Bajaj Auto vice president(business & product development) RL Ravichandran: We plan toexpand our dealership network and service centres to improve ourpenetration into smaller towns across the country.In fact, we plan toincrease the number of dealerships and service centresby 20 to 25 per cent. With this move, we will be able to cover towns with a population of two to three lakh. Incidentally, the company is all set to unveil its entry-level motorcycle called BYK this month. Priced at Rs 30,000, BYK is positioned as a stylish bike targeted at the entry level audience. Ogilvy & Mather Indiawill be designing the communication strategy for the new bike from theBajaj stable. As part of its offline promotion strategy, the companyrecently hosted the Bajaj Boxer Indian Telly Awards 2002 on StarPlus topromote its Bajaj Boxer range.

POSITIONING STRATEGIES

Ever since losing its leadership position, BAL was trying out newstrategies including use of new technology and new marketingcommunication campaigns. For instance, in the early 2000s it startedfocusing more on the motorcycle market with new product launches,complemented bynew communication campaigns to inject vibrancyintothe Bajaj brand.The ad spots launched in late 2001 showed 'slice of life' situations of"new age" India. Analysts felt that by 2004, BAL's image had undergoneconsiderable change in the mind of the target audience. BAL reinforcedthis through another campaigncalled 'Inspiring Confidence' that year.In addition to bringing change in its products and creating brands thatinspired confidence, BAL wanted its products to be 'distinctly ahead' inthe wake of growing competition in the intensely competitive automobilemarket.BAL's new corporate strategy announced in mid 2007, 'Disinctly Ahead',was aimed at embedding these changes inthe collective consciousness ofthe company. It was aimed at offering consumers products that wereunique and at the forefront compared to its competitors.The 'Distinctly Ahead' strategy focused on three corevalues -innovation,speed, and perfection. Commenting on its new strategy, Rajiv Bajaj,Managing Director, BAL, said, "We believe it is not good enough to bebetter, it is important to be distinct.That is a filter that we apply to everything we do. be it product development, manufacturing processes or communication development. Our flagship brand Pulsar is the strongest evidence of this philosophy. It is only a differentiated offering that customers see value in and aspire for."

The company launched a 'Distinctly Ahead' communication campaign,created by ad agency Lowe, to signify its new aggressive and fast pacedimage.The ad showed a 220 Pulsar DTS-Fi morphing into several 220 Pulsarsas they raced with each other. The ad featured the pay-off line, "AlagAndaaz, Alag hai Khoj, Rakhe Aage, Hamari Soch"and a background theme music that was a much peppier version of the original 'HamaraBajaj' theme music. Through this, the company sought to communicatethat BAL lays down its own standards and principles and believes incompeting with itself. Bajaj Auto's new brand strategy in motorcycles paid off well with thecompany on course to recording its best year ever in terms ofprofitability and market share.Its market share, which was barely 17 per cent a year ago, has increased since to 35 per cent today. We have more than doubled our market share in a year and would be at our highest level by the end of this quarter Mr Rajiv Bajaj,Managing Director, told Business Line. The confidence stems from the fact that there are still three months to gofor the recently launched Pulsar 135 to consolidate itself in the marketand start clocking volumes. Bajaj Auto has targeted a monthly output of100,000 Pulsars by end-March 2010 and believes thenew 135cc will playa key role in achieving this goal. At present, the Pulsar 150, 180 and 220versions together account for around 60,000 units eachmonth.

CORE COMPETENCIES

Bajaj Auto is one of the oldest and the second largest two wheelermanufacutrer in India. In addition to coping with fierce competitionfrom other players in the two wheeler segment, it also has to protect itsmarket share from the impending onslaught of low price small cars suchas Tata Nano. Holding on to its postion in such a challenging marketenvironment requires innovative strategies and deep understanding ofconsumers needs.Bajaj Auto, sitting on surplus funds of over Rs 7,000 crore, wasinundated with offers to diversify from telecommunications and powergeneration to software but stuck to core business of automobiles. MrBajaj said that any company, which wants to survive, must have qualityand service orientation. The automotive sector was in its death throeswith some of the major American automotive manufacturers on theverge of bankruptcy, he said.There are several reasons why Bajaj should concentrate on its coresegment, i.e. greater than 125cc segment. With the introduction of DTS-iand DTS-Fi technology, Bajaj Auto Limited has led the way inpioneeringtechnology along with style.The Profitability Pyramid in Exhibit 4 shows that the margin is very lowin the sub-125cc segment but volumes are high. BAL wants to shift usersfrom 100, 115cc segment to 125cc and higher. Thus Bajaj not only wants to play on the margins but also wants to increase the market share of125cc bikes. With its recent launch of XCD 125cc, it has brought incompetition for its own 100cc model, Platina by delivering a bike that isbetter in allrespects (including fuel efficiency).

BAJAJ PRODUCTS

1. Bajaj Discover

PERFORMANCE150CC DTS-I ENGINE THAT PACKS A PUNCHA beast fuelled with power unimagined, the Bajaj Discover 150 is a Stallion that provides unparalleled performance. The breakthrough 150cc DTS-I engine ensures efficient combustion, and in conjunction with a 5-speed gear box, provides exceptionally smooth power, yet delivering class-leading fuel efficiency.

COMFORTCOMFORT IN EVERY RIDELong drives become a lot more fun with the Bajaj Discover 150. While the gas-charged Nitrox Suspension delivers an optimum level of comfort, the bikes electric start provides you with a hassle free starting for quick stop-start traffic conditions.

SAFETYREDEFINING STEADINESSTake control of the road with a 100/90 x 17" extra wide rear tyre that provides excellent grip, even in wet and slippery conditions. With a 240mm front disc brake that provides safe and superior braking, the Bajaj Discover 150 is totally yours to command.

STYLINGA MAN'S BIKEThe Bajaj Discover 150 has got the looks that can make heads turn. The alloy wheels add to its new generation, chic look and stand out from any average commuter motorcycle. The attractive and powerful graphics on the front are a true representation of the power the bike holds within.

2.Bajaj Pulsar

PERFORMANCE

This 4 stroke, 180 cc, Digital Twin Spark ignition (DTS-i) engine has been designed to generate that extra surge of power. At 17Ps, the Pulsar 180 gives the rider a feeling of what its like to be aheadalways! The revolutionary electronics on the Pulsar 180 like TRICS III and intelligent CDI improve ignition timing thus ensuring smoother power delivery and better throttle response. All this while not compromising on the efficiency and mileage.

COMFORT

The Pulsar 180 sports telescopic front forks, nitrox rear shock absorbers with 5 step adjustable ride settings, thus providing the bike with greater riding comfort and handling stability on all terrains. With split seats, the riding stance on the Pulsar 180 is comfortable for both rider and pillion.

SAFETY

To ensure safety, the Pulsar 180 comes with a large, ventilated 240 mm front disc brake, a broader 120/80x17" rear tyre, front and rear tubeless tyres that ensure you will never be stranded no matter how empty the highway or crowded the city.

STYLING

Behold the beast with the looks to die for. Its stylish and powerful wolf eyed headlamp with twin pilot lamps, adds a unique character to the Pulsar 180 and lets it mark its own territory on the road. The naked street fighter look is further enhanced by the aerodynamic fairing on the large, muscular 15 litre fuel tank. This mean machine comes with clip-on handlebar, complete with pass switch, electric start and engine kill switch.3. Bajaj Avenger

PERFORMANCE

The Avenger has a powerful 220 CC DTSi engine capable of cranking high torque to ensure a good, smooth highway ride. The DTS-i technology employs twin spark plug instead of a single spark plug, which give the Avenger that additional power and torque while also keeping it efficient for the long cruise.

COMFORTThe Avenger has the typical low-slung cruiser seating making it easy to handle and sit on. The dual density foam seats, back rest for pillion and low saddle height make the Avenger truly enjoyable and comfortable for a long ride on the highway.

SAFETY

The Avenger has a broad rear tyre for better grip, disc brake on the front for improved braking and a stable build that will not waver when out on the open roads.

STYLING

The personality of the Avenger suits the people who ride it It classic cruiser looks, Low Slung styling, classic fuel tank with fuel gauge build it give the Avenger a distinct identity ad road presence. Swing your leg over the saddle and Feel Like God.

4. Bajaj Plantina 100

PERFORMANCECOMPLETE VALUE FOR MONEYA class apart, the Bajaj Platina boasts of a legendary 4 stroke 100cc engine that has established a benchmark in mileage. Its ride control switch helps the rider maintain an economical speed to gain maximum mileage. When you ride the Platina, you know you have made a wise choice.

COMFORTCONVENIENCE AND COMFORTThe Bajaj Platina is all about comfort with an extra long seat that makes it a perfect family bike. In addition, its SNS suspension ensures better ability to soak up bumps and potholes. When you ride the Platina, you can ride on and on.

SAFETYENSURING SAFETYSafety comes first on the Bajaj Platina. Its large 1275mm wheelbase and drum brakes ensure the stability of the bike and safety of the rider.

STYLINGSTYLISH LOOKSDazzling chrome graphics, silver alloy wheels, sleek rear panels with fluid grab rail design, graphite tint engine and transmission with black silencer and chrome heat shield add to the beauty of the motorcycle. Not to forget, its stylish alloy wheels make you stand out from the crowd.

5. Kawasaki Ninja 650

Signature Mono SuspensionTrademark single-shock rear suspension joins the frame and swingarm, creating a line that flows smoothly from steering head to rear axle.

Under-engine mufflerMuffler located under the engine lowers the Ninja 650's centre of gravity and contributes to the bike's highly focused appearance. Its steeper angle complements the bike's aggressive, lightweight image. Quick-revving 649 cm3 liquid-cooled,4-stroke Parallel Twin EngineThe 2012 engine offers more low-mid range torque for more fun and greater usability in everyday riding situations, while maintaining the smooth, high-revving character of its predecessor.

Rider-friendly Ergonomics The riding position was specially designed to inspire rider confidence. An ideal relationship between the handlebars, seat and footpegs results in a comfortable and natural position suitable for a wide range of riders.

Damped HandlebarsRubber damped handlebars ensure that uneven road conditions do not result in tired arms. Stay on the bike as long as you want.Slightly wider handlebar (10 mm each side) offers larger riders a little more room.

DRL with Hazard LightsDay running lights ensure visibility. Hazard lights enable added visibility when required. The sculpted shape of the multi-reflector headlamps bulb hoods is an example of the attention given to detail on this model

Triple Petal Disc BrakeTriple petal disc brakes look great and deliver plenty of stopping power. New front brake pads for non-ABS models offer increased braking force.

Easier-to-read instrument panel designNew instrumentation features an analogue-style tachometer and multi-purpose LCD. Convenient new features keep riders fully informed of operating conditions.

HONDAStrengths

1. Diversified product portfolio.Honda unlike many other automotive companies does not focus only on selling vehicles. It is the largest producer of the engines and motorcycles as well. Therefore, the company is not as susceptible as its competitors are to market cycles or technology disruptions.2. Huge investments in R&D.Hondas investments in R&D reach as much as 5% of revenue. The company relies on these investments to achieve competitive advantage through various technologies, such as improved vehicle painting process, new hydrogen and hybrid engines or new welding technologies. In 2012, the company owned 42,000 patents and had pending applications for 29,000 more patents.3. Strong brand image.Honda has a reputation for producing the best quality engines around the world. The companys brand was the 21st most valuable brand in the world valued at $17 billion and was only behind Toyota, Mercedes-Benz and BMW, according to Interbrand.4. Motorcycle market share in Asia.In 2012, Honda sold 80.5% of its motorcycles in Asia, the market that has greatest growth potential. Having the largest motorcycle market share, Honda is well positioned to compete with other companies for the sales and profits.Weaknesses

1. Product recalls.Over 2011 and 2012, Honda recalled more than 1,000,000 vehicles to fix various faulty parts and manufacturing defects. Car recalls severely damages firms brand reputation and future sales.2. Weak position in Europe automotive market.Honda holds a very weak position in the Europes automotive market and has maintained only 1.1% market share in 2012. Although, Europes market share is declining at the moment and many companies experience losses, the market is huge and firms can benefit from the economies of scale.3. Decreasing sales.In 2012, Hondas revenue hit the lowest point in 4 years to 7.948 trillion. Honda sales were down by 11.2% in North America, which represents more than 40% of total Honda revenues. Revenue from Asia and Europe also declined by 21.3%, 15.5% respectively, signaling poor firms performance globally.Opportunities

1. Increasing fuel prices.Hondas strong emphasis on engineering fuel-efficient vehicles (Honda Insight and Honda Civic) with flexible fuel, hybrid and hydrogen engines will pay off due to increasing fuel prices.2. Positive outlook for global motorcycle industry.Motorcycle industry grew by 4.2% from 2011 to 2012 and is expected to grow by at least 6% to 2016. Honda is the worlds leading producer and seller of the motorcycles having more than 29% of the market share. Growing demand for the motorcycles is a great opportunity for the company to expand its global market share and grow sales.3. Growing global demand for environment friendly vehicles.The declining levels of fossil fuel sources and the rising CO2 emissions became a major concern for many people and many governments. Therefore, ecologically friendly cars, powered by hybrid, hydrogen or flexible fuel engines became very popular. The market for such cars was $33 billion in 2010. Hondas focus on hybrid and hydrogen fueled engines is a great opportunity to capture the market share for this new demand.4. Growth through acquisitions.Honda could greatly benefit from strategic partnerships or acquisitions of smaller competitors. The company would add new brands to its portfolio, achieve greater economies of scale and would benefit from synergies between different firms.Threats

1. Intense competition.Honda faces more intense competition than ever. New small entrants are disrupting the market with their capabilities in producing electric vehicles or alternative fuel engines. Big companies are restructuring themselves to become more efficient. As a result, firms like Honda are suffering from competition from both big and small players.2. Decreasing fuel prices.Some analysts forecast that future fuel prices will drop due to extraction of shale gas. This would negatively influence Honda because the company is focusing on hydrogen fuel, hybrid and flexible fuel engine cars, which are not so attractive to consumers when fuel prices are low.3. Rising raw material prices.Metals are the main raw materials used in vehicle and motorcycle manufacturing and the rising price of the raw metals raises overall production costs for Honda.4. Natural disasters.Honda has manufacturing facilities in Japan, Thailand, China and Malaysia. These countries, including others, are often subject to natural disasters that disrupt manufacturing in the facilities and decrease Hondas production volumes.5. Strong yen.Honda earns most of its profits outside Japan and appreciating yen poses a great threat to Hondas profits.Cutting-edge technology and the spirit of Honda

Our fundamental design philosophy seeks to maximise space and comfort for people, while minimising the space required for mechanical components. With this aim in mind, Honda's R&D activities include product-specific development and fundamental research.Let's talk about few of the advanced technologies that we have:

Combi Break System

Generally, it is not easy to control a2-wheeler while braking during emergencies and bad road conditions. This system not only allows easy & simultaneous operation of the front & rear brake but also provides optimal braking performance. Once the left side brake lever is pressed, the system distributes the appropriate braking power between the front and rear wheels, which assures complete safety for the rider.

HondaMaticTransmission

The compact, efficient & oil pressure controlled Hondamatic Transmission is the world's first fully automatic transmission system, which delivers a dynamic combination of torque & excellent accelerator response for a constant and superior driving experience. The transmission is being used in Honda's all terrain vehicles. Honda is working hard to introduce this Hondamatic in two-wheelers.

Fuel Injection System

Honda's fuel injection technology is designed to realise ideal combustion, which results in delivering maximum power output, greatly improved fuel efficiency and yet be environment-friendly.

Idle-Stop-System

Honda has created an advanced Idle Stop System (see image below) that reduces fuel consumption while totally blocking out toxic exhaust gas and unwanted noise. It enables the engine to stop automatically for3seconds after the vehicle stops moving. And when the throttle is opened, the vehicle engine restarts and takes off smoothly.

Products of Honda1. CB Unicorn

CB Unicornis powered with Honda4-stroke,150cc engine and incorporates many cutting-edge technologies developed by Hondas global R&D team. It sets new benchmark in the uppper majority motorcycle segment in India with its swift acceleration, superior mileage, international styling, riding comfort and convenience.

CB Unicorn is engineered and styled for the taste of the younger generation. With the4-stroke,150cc engine delivering a whooping13.3bhp, CB Unicorn is the fastest motorcycle in India racing from0 to 60kms* per hour in a mere5seconds. It has a distinctive sporty and macho design with a racy front face, masculine fuel tank with knee grip and a sleek rear cowl.

CB Unicorn offers perfect balance of pickup and mileage, delivering60kmpl through its famed4-stroke Honda engine, cutting edge technologies like Multi-Mapping CDI, Tumble Flow Combustion Chamber, Roller Rocker arm, and a Classy Aerodynamic Body.

This engineering masterpiece with international design appeal, guarantees to quench your thirst for motorcycle frenzy with all its stunning features.

2. CB Stunner

Start down Style Boulevard. Get to the New Graphics (down Headturn Avenue).

Take a turn for the Newly Designed Under Cowl (watch out for Immediate Attention it has a looming presence).

Keep a lookout for the Sharp Rear (its the most happening place in the city nowadays, all the hot chicks are there).

Go down Performance Avenue. For a mind-blowing drive, take the Hondas125cc Engine with11bhp5Speed Transmission (renowned the world over).

Keep going straight down with the Wider Tubeless Tyres (A landmark is the The Black Alloy Wheels impossible to miss)

Stop at the Disc Brakes.

Take a roundabout from The Sporty Half Chain Case (leaves your head spinning really) and take the Handle Bar Weights (its a stable ride despite the challenging roads).

Get to the newly constructed Tachometer (its a superb vantage point, you can see close to everything from here).

3. CB Shine

Powered by Hondas revolutionary optimax & Ergotec technologies, the CB Shine is a companion that understands & fulfills the riders need to do more in life by delivering superior performance that is nothing short of a dream come true.

CB Shine is powered by a newly developed125cc Optimax engine, which maintains Optimum input for maximum output and incorporates cutting edge technologies to deliver best balance of mileage and pickup. Due to its cutting edge Honda technologies, the125cc Optimax engine delivers class leading10.3BHP which enables Shine to deliver the best balance of pickup and mileage.

CB Shines Ergo Tec Design with lightweight advanced diamond frame and double suspension offers superior absorption of shocks & vibrations thus providing excellent ride comfort & stability. Riding position based on human engineering ensures, less fatigue and firm & wide seating space with comfortable seating posture for pillion rider.

CB Shine also comes equipped with host of innovative features like puncture resistant Tuff-up tube and Primary Kick/Self start for easier city riding etc.

4. CB Twister

Honda CB Twister ranges from INR 45K-51K (ex-showroom, Delhi (approx., may vary)). Definitely,its a complete value for bike. Honda is asking a genuine price for their sporty bike. CB Twister has catchy looks and performs best in its class. Moreover you will be pleased with its high fuel efficiency and superb ride quality. If you compare it with its rivals then its more stylish and feature rich bike which also gives you exclusivity which is quite rare in its segment.

5. CB Trigger

Honda Motors along with Scooter India Ltd has launched the newHonda CB Triggerin the Indian bikes market. It is a unique kind of a bike that will be seen on the Indian roads, but it has some resemblance to the Honda Dazzler. The styling of the Honda CB Trigger has some cues from the CB1000R, which will surely thrill Indian roads andmotorcyclemarket. Honda CB Trigger will be a 150CC motorbike, it will be seen going head to head with the 150CCHonda Unicornthat has made a good mark in the 150CC segment.

CHAPTER -2 RESEARCH METHODOLGY

Information is the life blood of managerial decision-making the purpose of the methodology section is to describe the procedure by which the relevant information is gathered. In research methodology, we study the various steps that are generally adopted by researcher in studying his research problem along with the logic behind them.HERE, RESEARCH METHODOLOGY USED IS EXLORATORY RESERCH 1. Data Collection/Source of Information:a) Primary: By questionnaire that contains open ended, close ended and dichotous questions. b) Secondary: Magazines and Web sites relating to different Bike Companys.2. Sample Design:a) Sampling Method: Non-Probability and Judgment Sampling b) Survey Population: College students and people of West Delhic) Sample Size: 100 persons were included in the research including both who are using bikes and who are not using bikes. 3. Statistical Tools: The following are the statistical tools used in the study:a) Percentageb) Rankingc) Scaling

CHAPTER-3DATA ANALYSIS AND INTERPRETATION1.Which of the following companys bike do you have?(a) Bajaj (b) Honda (c) Other

2. From where did you purchase your bike?(a) Showroom (b) Secondhand Dealer (c) Other

3. How do you get to know about the company of the bike?(a) Friends/Family (b) Advertisements (c) Hoarding/Banners (d) Other

4. How many bikes have you used of the same company till now? (a) One (b) More than one

5. What promotional scheme attracted you the most towards the company ? (a) Advertisement (b) Promotional Campaign (c) Hoarding/Banners (d) Sms (e) Other

6. Why did you choose this company over the other? (a) Price (b) Services (c) Network (d) Other

7. Does the company fulfil your expectation as was committed during promotion? (a) Yes (b) No (c) Cant Say

8. Were you convinced to buy the bike by the promotion totally? (a) Yes (b) No (c) Cant Say

9. How would you rate the competitiveness of this company with other company in terms of promotion?(a) Excellent (b) Good (c) Average (d) Poor (e) Very poor

10. How would you rate the competitiveness of this company with other company in term of service?(a) Excellent (b) Good (c) Average (d) Poor (e) Very poor

11. Are you satisfied with the after sale service of the company as committed during the promotion?

(a) Yes (b) No (c) Cant Say

12. Does the brand fulfil your status needs and give value for money? (a) Yes (b) No (c) Cant Say

13. Would you like to purchase this brand again? (a) Yes (b) No (c) Cant Say

14. Would you like to recommend this bike company to your friends and family? (a) Yes (b) No (c) Cant Say

CHAPETR -4CONCLUSIONS

RESULTS OF THE STUDY1) Regarding the preference for the Bike company, people are more inclined towards the Bajaj bikes and Honda bikes are also a strong competitor. Other brands of bikes are less preferred.

2)Regarding the purchase of the bikes people prefer buying from showrooms so that they can avail the benefits of the best service and more information regarding the bike and less from second hand dealers and few people buys from other sources. 3)43% of the customers came to know about the bike company from their family and friends, 35% of the customers came to know about the bike company from different types of promotional strategies, 15% came to know from banners/hoardings in the city and 7% came to know from different sources. Most of the people were convinced from their family and friends.

4)Generally people have used only one bike from the same company and very few have used more than one bike of the same company.

5) The most attracted promotional scheme of the people is advertisement from different sources , some are attracted towards the promotional campaigns and few number of people preferred banners, sms and other promotional schemes. The customers are mainly get influenced from the advertisements.

6) The most of people prefer price and mileage of the bike that the company offers while purchasing and some compare pick up and other facilities over the bike comapny.

7) The brand fulfilled the expectation as was committed during promotion as said by the 70% of the customers and 10% have some problems regarding the commitment and 20% of the customers were confused regarding their view point.

8) 50% of the people were convinced to buy the bike by the promotion totally and on the other hand 30% of the people still need more information regarding the bike before its purchase and 20% of the people were affected by the promotion but not totally.

9) Most of the people thought that the competitiveness of this company with other company in terms of promotion was good and thought it was excellent but few people thought that it was not satisfactory. In conclusion company is having great promotional strategies but it can improve to earn more customers and profit.

10) Most of the people thought that the competitiveness of this company with other company in term of service was good and only few thought it was excellent and a lot people thought it was not satisfactory , so company should concentrate more on the after sale service so that the customers should get more satisfied.

11) 65% of the people were satisfied with the after sale service of the company as committed during the promotion, 20% of the people have not used the after sale services so they cannot comment and 15% of the people were not satisfied with the after sale services of the company.

12) The brand fulfilled the status needs and give value for money to almost 80% of the customers and 15% did not comment anything and 5% were not satisfied.

13) About 45% of the customer would like to purchase the brand they are using again and 35% are not sure to purchase this companys bike again and 20% of the people would like to try some other company of bikes.

14) More than 50% of the customers would like to recommend this brand to their friends and family, few are not interested about talking about this and some people were not interested at all in sharing their viewpoint regarding their bike to their friends and family.

LIMITATIONS OF THE STUDY

Although I have tried my best in collecting the relevant information there are always present some limitations under which researcher has to work. Here following are some limitations under which I had work as shown below:

1. Sample Design: The sample size analyzed was limited which may not be fully representative of the universe. A large sample size could not be taken due to time and cost constraints.

2. Time Constraint: I had a limited time for conducting this analysis report. So some shortfalls may be present..

3. Biasness on the part of Respondents: Although all the attempts were made to make it an objective study, biasness on the part of respondents might have resulted in subjectiveness.

4. Reluctance of Respondents: Some customers are not willing to give any information due to many reasons like lack of time or they do not want to disclose their opinion or thinking.

SUGGESTIONS1. Honda should improve on its promotional strategies so that people can get more convince to buy their companys bike over the other.2. Bajaj and Honda should promote their brand and should bring new services for the customers frequently so that they can enjoy the benefits that the company provides and can get more attracted towards the purchase of the bike .3. Most of the people agreed that the brand fulfils their status needs but everyone should agree that and for this more attracted services in the bike should be provided to the customer.4. The promotional strategies of the brand should be very strong so that the brand can fulfill all the expectations of the customers.