PROJECT REPORT
ON
COMPARATIVE STUDY OF HERO HONDA VS BAJAJ
SUBMITTED TO :IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE
AWARD THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION (H.N.B. GARHWAL UNIVERSITY)
SUBMITTED TO: SUBMITTED BY:
MR.HIMANSHU SIR ABHISHEK KUMAR SINGH
FACULTY–MANAGEMENT STUDIES BBA – VTH SEM.
ALPINE INSTITUTE MANAGEMENT & TECNOLOGY, DEHRADUN
BONAFIDE CERTIFICATE
This is to certify that MR. MOHD. UMER is a bonafied student of ALPINE INSTITUTE OF MANAGEMENT & TECHNOLOGY, registered for BBA PROGRAMME for the session 2007-2010. He has under taken winter training at “COMPARATIVE STUDY ON HERO HONDA VS BAJAJ” practical training is a part of BBA program.
DECLARATION
I, Mohd. Umer student of ALPINE INSTITUTE OF MANAGEMENT& TECHNOLOGY,
DEHRADUN Batch 2007-10, hereby declares that this winter training project report
work entitled “COMPARATIVE STUDY ON HERO HONDA VS BAJAJ ” is the out come of
my own research and prepared by me and the same has not been submitted to any
other university or institute for the award of any degree or diploma.
Place: Dehradun [MOHD. UMER]
CONTENTSACKNOWLEDGEMENT
1. Introduction
2. Changing Trend
3. Automobiles as part of life
4. Indian Perspective
5. Objectives of the study
6. Research Methodology
7. Significance and scope of the study
8. Limitations
9. Bajaj Auto Limited – Profile
10. Hero Group – Company Profile
11. Mission
12. Product Gallery
13. Changing Living Standard of People in India
14. Findings – Graphical Representations
15. Conclusion
16. Recommendations
Bibliography
ACKNOWLEDGEMENT
I would be failing in my duty if I do not thank all those
persons who have helped me in successful completion of
this Project Report. Grateful appreciation is offered to all
of them on my behalf. In particular, I acknowledge the
help and encouragement received from my Project
Guide, MR. HIMANSHU SIR who in spite of her busy
schedule dedicated me with him invaluable suggestions
from time to time and helped me in successful
completion of work and for providing me the wonderful
and stimulating environment to work in.
I am sincerely indebted to the Showroom incharge of
Hero Honda and Bajaj Auto Ltd. and also to all my
faculty members. I express my deep gratitude to them
for their kind and unending guidance, right with the
basic information regarding the preparation of project
report.
MOHD. UMER
INTRODUCTION
India has the largest number of two wheelers in the world
with 41.6 million vehicles. India has a mix of 30 percent
automobiles and 70 percent two wheelers in the country.
India was the second largest two wheeler manufacturer in
the world starting in the 1950’s with the birth of Automobile
Products of India (API) that manufactured scooters. API
manufactured the Lambrettas but, another company, Bajaj
Auto Ltd. surpassed API and remained through the turn of
the century from its association with Piaggio of Italy
(manufacturer of Vespa). The license raj that existed
between the1940s to1980s in India, did not allow foreign
companies to enter the market and imports were tightly
controlled. This regulatory maze, before the economic
liberalization, made business easier for local players to have
a seller’s market. Customers in India were forced to wait 12
years to buy a scooter from Bajaj . The CEO of Bajaj
commented that he did not need a marketing department,
only a dispatch department. By the year 1990, Bajaj had a
waiting list that was twenty-six times its annual output for
scooters. The motorcycle segment had the same long wait
times with three manufacturers; Royal Enfield, Ideal Jawa,
and Escorts. Royal Enfield made a 350cc Bullet with the only
fourstroke engine at that time and took the higher end of
the market but, there was little competition for their
customers. Ideal Jawa and Escorts took the middle and lower
end of the market respectively. In the mid-1980s, the Indian
government regulations changed and permitted foreign
companies to enter the Indian market through minority joint
ventures. The two-wheeler market changed with four Indo-
Japanese joint ventures: Hero Honda, TVS Suzuki, Bajaj
Kawasaki and Kinetic Honda. The entry of these foreign
companies changed the Indian market dynamics from the
supply side to the demand side. With a larger selection of
two wheelers on the Indian market, consumers started to
gain influence over the products they bought and raised
higher customer expectations. The industry produced more
models, styling options, prices, and different fuel
efficiencies. The foreign companies new technologies helped
make the products more reliable and with better quality.
Indian companies had to change to keep up with their global
counterparts.
CHANGING TREND
As the Indian economy developing day by day purchasing
power is also increasing day by day .This has been created a
great change in the market and in consumer behaviour also
.If talk about the market of Automobiles
Industry ,purchasing power and development in economy
has brought a revolution in the market . Due to liberalization
competition is also increasing day by day. There are lots of
MNC’s or foreign giants and domestic brands are now
present in the Aotomobile market of India. This has been
bought a great competition in the market. Because now
consumers have lots of option in brands of motorbikes, like
Hero Honda, TVS, Bajaj, Suzuki, Kawasaki etc
So on the basis of above we can say that today it is very
much necessary for the companies that they have to
maintain their quality and quantity in the market and must
have do careful analysis of the changing behavior of the
consumer .If we talk about the motorbikes market Hero
Honda is the biggest brand of motorbikes among other
brands available in the market. If we see some years back
then we find that Hero Honda was dominated in the
motorbikes market, we can say Hero Honda was having the
monopoly in the motorbikes market, But now Hero Honda is
aware ,what is the liking and disliking of consumer of
motorbikes, this is the main motive of my study because
now situations of motorbikes market is totally change.
Today companies are focusing on customers delight as they
know that to retain their customers, only satisfaction is not
enough and they know that they have to give bit extra over
others.
AUTOMOBILES AS PART OF LIFE
Motorcycle travel is becoming more popular in India. A major
advantage of traveling by motorcycle is that you can travel
at your own pace, stopping when you want and where you
want. You can travel to small villages and stop for a picnic in
the middle of nowhere.
A good rule is to never drive at night unless it is essential.
Better to stop a few hours early then to risk the dangers of
night driving in India.
Automobiles have become an indispensable part of our lives,
an extension of the human body that provides us faster,
cheaper and more convenient mobility every passing day.
Behind this betterment go the efforts of those in the
industry, in the form of improvement through technological
research.
What actually lie behind this betterment of the automobiles
are the opinions, requirements, likes and dislikes of those
who use these vehicles.
These wheeled machines affect our lives in ways more than
one. Numerous surveys and research are conducted
throughout the world every now and then to reveal one or
the other aspect of automobiles, be it about the pollution
caused due to vehicle population in cities, or rising motor
accidents and causes, vehicular technology, alternative
medicine and so on.
INDIAN PERSPECTIVE
The feeling of freedom and being one with the Nature comes
only from riding a two wheeler. Indians prefer the two
wheelers because of their small manageable size, low
maintenance, pricing and easy loan repayments. Indian
streets are full of people of all age groups riding a two
wheeler. Motorized two wheelers are seen as a symbol of
status by the populace. Thus, in India, we would see swanky
four wheels jostling with our ever reliable and sturdy steed:
the two wheeler.
OBJECTIVE OF THE STUDY
1. To know the market share of Bajaj & Hero Honda.
2. To know the perception of customers regarding bikes.
3. To determine the customers satisfaction regarding
bikes.
4. To determine the factors influencing the choice of
customers regarding bikes.
5. To study the customers brand preference.
6. To study the features and other facilities provided by
both
brands.
7. To study the sales promotion activities of both brand
to
increase the sales of two wheeler.
SIGNIFICANCE AND SCOPE OF THE STUDY
Today when consumers are more educated and more capable to
purchase the luxuries for themselves ,and. competition is very
high in the market, then if any company wants to stand in the
market it is mandatory to analyse the market and consumers
time to time. Other wise It is not easy for the companies to cope
up with the challenges of the market . In my study I tried to
analyse the preference of consumers which reflect the
consumers behaviour, because consumer's behaviour is not
static and continuously changes time to time, along with this I
tried to analyse the market trend also. My study is confined to
the Dehra Dun city only if this study have been carried out in
large scale then further descriptive studies of this topic would
definitely help to the companies in making their marketing
strategies and policies
LIMITATIONS
My market research also suffered from several limitations
during the survey. Following were the limitations which
limited my study :
The survey was only confined to Dehradun city only.
Unwillingness on the part of the respondents due to which
it became a tough job to get the questionnaires filled.
Biased information by the dealers as they did not
disclosed the actual facts.
Few respondents were not confident while responding to
some of the questions; specifically in concern with the
services as some of the respondents said they don’t know
about the services provided by the company but still they
are using it.
Time limit was one of the major limiting factors of the
study; the survey was very much time consuming as it
was person-to person interview.
While doing the survey many consumers and dealers
were not cooperative. They were not ready to devote
some time for filling the questionnaire.
RESEARCH METHODOLOGY
RESEARCH PROJECT DEFINED
A study of Motorbikes used by the consumer in Dehradun
and to find out the Consumer’s Preference for Motorbikes in
Dehradun city with special reference to Bajaj and Hero
Honda.
RESEARCH
Research in common parlance refers to a search for
knowledge. One can also define research as a scientific
investigation. The advanced Learner’s dictionary of current
English lays down the meaning of research as “a careful
investigation or inquiry specially though search for new facts
in any branch of knowledge.” Some people consider
research as a movement, movements from unknown to the
known. Research is thus an original contribution to the
existing stock of knowledge making for its advancement.
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the
research problem. It may be understood as a science of
studying how research is done scientifically. The most
desirable approach with regards to the selection of the
research methodology depends on the nature of particular
problem, time and resources available along with the desire
level of accuracy. Much depends upon the skill and aptitude
of the researcher. This project has been undertaken as a
research work and the findings are compiled in the form of
Research Report.
PROBLEM IDENTIFICATION
The research is being conducted to find out the consumer’s
preference and satisfaction level towards different
Motorbikes available in Dehradun city. It is also intended to
find out the factors being considered important by the
customers at the time of purchasing a new motorbikes and it
is also done to find out the consumer’s preference among
the motorbikes available in Dehradun city.
RESEARCH DESIGN
The research design specifies the method for data collection
and data analysis. The research design that I selected for
my research work was descriptive. Descriptive research
includes surveys and fact-finding enquiries of different kinds.
SAMPLE DESIGN
The researcher must decide the way of selecting a sample
or what is popularly known as sample design. In other words
sample design is a definite plan determined before any data
or actually collected for obtaining a sample from a given
population. Sample design is determined before data are
collected. There are many sample designs from which a
researcher can choose. Researcher must select/prepare a
sample design that should be reliable and appropriate for his
research study.
Sampling Plan
To conduct a research, it is important to design proper
sampling plan which includes the following decisions:
Sampling Unit
This takes into account target population that will be
sampled in other words, who are the people to be
surveyed ?
In undertaken research work sampling units are the
respondents belonging to different socio-economic
backgrounds of Dehradun.
Sample area
At which level, one collects the information that is known as
a sample area. There were two type of areas which were
considered, namely
o Consumers of different brands of motorbikes
o Different dealers of motorbikes in Dehradun city.
Sampling Method
I did my sampling by using the convenience sampling
method.
Sample size
This takes into account the number of respondents selected
from the universe those who should be surveyed i.e.,
number of persons who were involved under the collection
are called sample size.
For Consumers :
Area Number of Consumers
Dehradun 90
For Dealers :Area Number of Dealers
Dehradun 10
BAJAJ AUTO LIMITED
Bajaj Auto limited is one of the largest two wheeler
manufacturing company in India apart from producing two
wheelers they also manufacture three wheelers. The
company had started way back in 1945. Initially it used to
import the two wheelers from outside, but from 1959 it
started manufacturing of two wheelers in the country. By
the year 1970 Bajaj Auto had rolled out their 100,000th
vehicle. Bajaj scooters and motor cycles have become an
integral part of the Indian milieu and over the years have
come to represent the aspirations of modern India. Bajaj
Auto also has a technical tie up with Kawasaki heavy
industries of Japan to produce the latest motorcycles in India
which are of world class quality. The Bajaj Kawasaki
eliminator has emerged straight out of the drawing board of
Kawasaki heavy industries. The core brand values of Bajaj
Auto limited includes Learning, Innovation, Perfection, Speed
and Transparency. Bajaj Auto has three manufacturing units
in the country at Akurdi, Waluj and Chakan in Maharashtra,
western India, which produced 2,314,787 vehicles in 2005-
06. The sales are backed by a network of after sales service
and maintenance work shops all over the country. Bajaj Auto
has products which cater to every segment of the Indian two
wheeler market Bajaj CT 100 Dlx offers a great value for
money at the entry level. Similarly Bajaj Discover 125 offers
the consumer a great performance without making a big
hole in the pocket.
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
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 across
several countries in Latin America, Africa, Middle East, South
and South East 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 reigns 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 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. He is
India's one of the most distinguished business leaders and
internationally respected for his business acumen and
entrepreneurial spirit.
New Image
The company, over the last decade has successfully
changed its image from a scooter manufacturer to a two
wheeler manufacturer, product range ranging from
Scooterettes to Scooters to Motorcycle. Its real growth in
numbers has come in the last 4 years after successful
introduction of a few models in the motorcycle segment. The
company is headed by Rahul Bajaj who is worth more than
US$1.5 billion.
India has the largest number of two wheelers in the world
with 41.6 million vehicles. India has a mix of 30 percent
automobiles and 70 percent two wheelers in the country.
India was the second largest two wheeler manufacturer in
the world starting in the 1950’s with the birth of Automobile
Products of India (API) that manufactured scooters. API
manufactured the Lambrettas but, another company, Bajaj
Auto Ltd. surpassed API and remained through the turn of
the century from its association with Piaggio of Italy
(manufacturer of Vespa).
The license raj that existed between the1940s to1980s in
India, did not allow foreign companies to enter the market
and imports were tightly controlled. This regulatory maze,
before the economic liberalization, made business easier for
local players to have a seller’s market. Customers in India
were forced to wait 12 years to buy a scooter from Bajaj.
The CEO of Bajaj commented that he did not need a
marketing department, only a dispatch department. By the
year 1990, Bajaj had a waiting list that was twenty-six times
its annual output for scooters. The motorcycle segment had
the same long wait times with three manufacturers; Royal
Enfield, Ideal Jawa, and Escorts. Royal Enfield made a 350cc
Bullet with the only fourstroke engine at that time and took
the higher end of the market but, there was little
competition for their customers. Ideal Jawa and Escorts took
the middle and lower end of the market respectively. In the
mid-1980s, the Indian government regulations changed and
permitted foreign companies to enter the Indian market
through minority joint ventures. The two-wheeler market
changed with four Indo-Japanese joint ventures: Hero Honda,
TVS Suzuki, Bajaj Kawasaki and Kinetic Honda. The entry of
these foreign companies changed the Indian market
dynamics from the supply side to the demand side. With a
larger selection of twowheelers on the Indian market,
consumers started to gain influence over the products they
bought and raised higher customer expectations. The
industry produced more models, styling options, prices, and
different fuel efficiencies. The foreign companies new
technologies helped make the products more reliable and
with better quality. Indian companies had to change to keep
up with their global counterparts.
Bajaj Pulsar 150cc DTS-i
Pulsar has been major hit in the market; it comes in four
variants: Pulsar 150 DTSi, Pulsar 180 DTSi, Pulsar 200 DTSi
& Pulsar 220 DTSi. Bajaj Pulsar DTSi comes with a throttle
actuated ignitioncontrol system that works in conjunction
with a chip-controlled digital capacitor discharge ignition
(CDI) system for accurate ignition timing under all
conditions. The dual spark design accelerates and evens out
flame propagation, which results in more efficient
combustion and hence leads to better performance. Pulsar's
150cc engine delivers a power output of 13.5bhp at 8000
rpm. It has wonderful pickup with 0-60kmph in 5.66
seconds. It develops a maximum torque of 12.28 Nm @
6500 rpm. It looks great with its mean muscular
aerodynamic shape. Apart from the smashing look, Pulsar
has lighter yet stronger alloy wheels, which when coupled
with the longest wheelbase (1330mm) enhance the stability
of the bike.
VEHICLE SUMMARY Name: Pulsar 150 (2008) Type:
Commuter Top Speed: 113kph OTHER SPECIFICATIONS
Weight: 137.00 kg Ground Clearance: 155.00 mm Fuel Tank:
8.00 ltrs Wheelbase: 1330.00 mm Electrical System: NA
Headlamp: NA Horn: NA 17″ Alloy Single Wheel Type: wheels
Air 2.75 X 18 Wheel Size: Tubeless: 13.90nm@6500rpm 5
Speed 0 NA NA of 1 Colors: Black, Silver, Blue & Red Rear
100/90 X 18 mm
ENGINE SPECIFICATIONS Displacement: 149.01cc 4
Stroke, Engine: Maximum Power: Maximum Torque: Gears:
Clutch: Bore: Stroke: No. Cylinders: Cylinder Cylinder,
Cooled, 2 Plug 13.50ps@8500rpm
NA Configuration: Engine Block NA Material: Chassis
Type: NA Cooling Type: Air Cooling Carburetor: NA
ACTIVE AND PASSIVE SAFETY Suspension(Front):
Telescopic Triple rate Suspension(Rear): springs Brakes:
240mm Disc Brakes(Rear): 130mm Drum Stand Alarm:
DIMENSIONS
COMFORT AND CONVENIENCE Fuel Guage: Digital Self Start:
Tacho Meter: Analogue Trip Meter: None Alloys: Warranty:
NA Speedometer: Digital Passenger Footrest: Passenger
Backrest: Step-up Seat:
BAJAJ MOTORCYCLES
MODEL CAPACITY
Bajaj Avenger 180 CC
Bajaj CT 100 99.27 CC
Bajaj Discover
Bajaj Discover
Bajaj Discover DTSi
111.63 CC
124.52 CC
Bajaj Kawasaki Caliber 111.6 CC
Bajaj Kawasaki Boxer 111.6 CC
Bajaj KB 125 123 CC
Bajaj 4S Champion 99.35 CC
Bajaj Platina 99.27 CC
Bajaj Pulsar DTSi
Pulsar 180 DTS-i UG
Pulsar 150 DTS-i UG
180 CC
150 CC
Bajaj Wind 125 124.6 CC
New Image
The company, over the last decade has successfully
changed its image from a scooter manufacturer to a two
wheeler manufacturer, product range ranging from
Scooterettes to Scooters to Motorcycle. Its real growth in
numbers has come in the last 4 years after successful
introduction of a few models in the motorcycle segment. The
company is headed by Rahul Bajaj who is worth more than
US$1.5 billion.
COMPANY PROFILE – HERO GROUP
“Hero”, is the brand name used by the Munjal brothers in
the year 1956 with the flagship company Hero Cycles. The
two-wheeler manufacturing business of bicycle components
had originally started in the 1940’s and turned into the
world’s largest bicycle manufacturer today. Hero, is a name
synonymous with two-wheelers in India today. The Munjals
roll their own steel, make free wheel bicycle critical
components and have diversified into different ventures like
product design. The Hero Group philosophy is: “To provide
excellent transportation to the common man at easily
affordable prices and to provide total satisfaction in all its
spheres of activity”. The Hero group vision is to build long
lasting relationships with everyone (customers, workers,
dealers and vendors). The Hero Group has a passion for
setting higher standards and “Engineering Satisfaction” is
the prime motivation, way of life and work culture of the
Group. In the year 1984, Mr. Brijmohan Lal Munjal, the
Chairman and Managing Director of Hero Honda Motors
(HHM), headed an alliance between the Munjal family and
Honda Motor Company Ltd. (HMC). HHM Mission Statement
is: “We, at Hero Honda, are continuously striving for synergy
between technology, systems, and human resources to
provide products and services that meet the quality,
performance, and price aspirations of our customers. While
doing so, we maintain the highest standards of ethics and
societal responsibilities, constantly innovate products and
processes, and develop teams that keep the momentum
going to take the company to excellence in the new
millennium”. This alliance became one of the most
successful joint ventures in India, until the year 1999 when
HMC had announced a 100% subsidiary, Honda Motorcycle
& Scooter India (HMSI). This announcement caused the HHM
stock price to decrease by 30 percent that same day. Munjal
had to come up with some new strategic decisions as, HMSI
and other foreign new entry companies were causing
increased intensity of rivalry for HHM. == Growth == The
business growth of Hero Honda has been phenomenal
throughout its early days. The Munjal family started a
modest business of bicycle components. Hero Group
expanded big that by 2002 they had sold 86 million bicycles
producing 16000 bicycles a day. Today Hero Honda has an
assembly line of 9 different models of motorcycles available.
It holds the record for most popular bike in the world by
sales.
Its Splendor model. Hero Honda Motors Limited was
established in joint venture with Honda Motors of Japan in
1984, to manufacture motorcycles. It is currently the largest
producer of Two Wheelers in the world. It sold 3 million bikes
in the year 2005-2006. Recently it has also entered in
scooter manufacturing, with its model PLEASURE mainly
aimed at girls. The Hero Group has done business differently
right from the start and that is what has helped them to
achieve break-through in the competitive two-wheeler
market. The Group's low key, but focused, style of
management has earned the company plaudits amidst
investors, employees, vendors and dealers, as also
worldwide recognition. The growth of the Group through the
years has been influenced by a number of factors:
The Hero Group through the Hero Cycles Division was the
first to introduce the concept of just-in-time inventory. The
Group boasts of superb operational efficiencies. Every
assembly line worker operates two machines simultaneously
to save time and improve productivity. The fact that most of
the machines are either developed or fabricated inhouse,
has resulted in low inventory levels. In Hero Cycles Limited,
the just-in-time inventory principle has been working since
the beginning of production in the unit and is functional
even till date.. This is the Japanese style of production and in
India; Hero is probably the only company to have mastered
the art of the just-in-time
HERO HONDA MOTORCYCLESMODEL CAPACITYHero Honda Achiever 149.1 CC
Hero Honda CBZ 156 CC
Hero Honda CD Dawn 97.2 CC
Hero Honda CD Deluxe 97.2 CC
Hero Honda CD 100 97.2 CC
Hero Honda CD 100 SS 97.2 CC
Hero Honda Glamour
Glamour Glamour - FI
124.7 CC124.8 CC
Hero Honda Karizma 223 CC
Hero Honda Passion Plus 97.2 CC
Hero Honda Sleek 97.2 CC
Hero Honda Splendor
Splendor + Super Splendor
97.2 CC124.7 CC
MISSION
Hero Honda’s mission is to strive for synergy between
technology, systems and human resources, to produce
products and services that meet the quality, performance
and price aspirations of its customers. At the same time
maintain the highest standards of ethics and social
responsibilities This mission is what drives Hero Honda to
new heights in excellence and helps the organization forge a
unique and mutually beneficial relationship with all its stake
holders
KEY HIGHLIGHTS
Hero Honda enjoys a significant brand premium. Its
aggressive pricing strategy to take on the competition has
helped it in volume growth. Variant launches in each of
Splendor and Passion has helped in stemming the loss in
market share in the face of the competition. Hero Honda
now plans to launch two new models in the 100cc segment
in FY05 on a new platform. The company has started logging
good volume growth after the launch of Passion Plus and
Splendor Plus as well as the CD-Dawn, which has also
rejuvenated its product range. Volumes should improve
further, due to the base effect and improved rural sentiment
on the back of higher farm incomes. Aggressive cost
controls and significant economies of scale are expected to
aid Hero Honda in retaining margins. Hero Honda will
continue to be an attractive dividend yield play as the
company continues to generate significant free cash flows
as its capital requirements are limited.
PRODUCT GALLERY
AMBITION 135 CC
This bike has a contemporary style with a tubular single
cradle, diamond type which adds extra beauty to it. Over
and above the bike has good acceleration and power with a
maximum power of 11 BHP / 11.15 PS @ 8000 rpm and a
maximum speed of 100 KMPH. It has also been added with
adequate fuel efficiency of 55 KMPL. The Trapezoidal 35 / 35
W headlight gives the ‘woah’ look.
CBZ
Transient Power Fuel Control (TPFC) System Hydraulic
Dampers Gear Box: Equipped with five gears and a 156cc
engine that generates 12.5 bhp powers. Touch the top
speed of 100kmph. Multi Lever Locking Seat Adjustable
Rear-Shock Absorbers & Dynamic Vibration
SPLENDOR+
The Splendor+ has been upgraded in both its looks and
performance. New, clear, bright multi-reflector head light
with 12V 35/35W multi-reflector with halogen lamp, multi-
reflector tail light and stylish graphics. This motorcycle
meets the pollution control standards of this decade. That's
the Splendor+-the new face of trust.
PASSION PLUS
9 New two-tone body colours PLUS Body colour rear
view mirrors PLUS
Aluminum die cast rear grip PLUS Heat protector on the
muffler PLUS New dials on the instrument panel PLUS
Headlight with halogen lamp PLUS Multi-reflector winkers. All
this and much more to make the biker and his bike stay
married forever.
CD DAWN (Value Nayae Zamane Ki!)
CD Dawn, the true-value 4 stroke, 100cc motorcycle. A
motorcycle that encompasses the legendary Hero Honda
values of fuel-efficiency, economy and rock-solid
dependability. Tough Track Suspension Doubly Strong
Tubular Frame Other features - like the legendary mileage,
KARIZMA the first-of-its-kind 2-year warranty in the
category, Superior technology plus advanced features plus
captivating looks equals KARIZMA. The future of the Indian
motorcycle market should be seen through KARIZMA. It is
certain to change the way in which the Indian customer
looks at a premium bike. With a maximum power of 17 PS @
7000 rpm, KARIZMA is targeted at customers seeking to
enjoy the 'thrill of power on wheels of style'. A product of
combined R&D efforts of Hero Honda-Honda, the motorcycle
guarantees exceptional performance with unmatchable style
and utmost comfort.
HEROHONDA BIKE MODELS
Model: Achiver ES Model: Start Model: CBZ Xtreme Kick
Model: CD Dawn Start Model: Glamour Electric Model:
Glamour FI ES Start Model: Glamour FI Kick Start Model: CD
Deluxe Achiver Kick Model: CBZ Xtreme ES
Model: Start
Glamour Kick Model: Hunk ES
Model: Hunk Kick Start
Model: New Karizma
Model: Passion Plus
Model: Pleasure
Model: Splendor NXG Model: Splendor NXG Model: Splendor
Plus (Alloy) Model: Super Splendor (Spoke) Model: Ambition
Model: CBZ
Model: CBZ* Kick Start
Model: Start
CBZ* Electric Model: CD 100 SS
Model: Dawn
Model: Karizma
Model: Passion
Model: Splendor
Model: Street Dlx
Model: KS
Super Splendor
Growth
The business growth of Hero Honda has been phenomenal
throughout its early days. The Munjal family started a
modest business of bicycle components. Hero Group
expanded so big that by 2002 they had sold 86 million
bicycles producing 16000 bicycles a day. Today Hero Honda
has an assembly line of 9 different models of motorcycles
available. It holds the record for most popular bike in the
world by sales for Its Splendor model. Hero Honda Motors
Limited was established in joint venture with Honda Motors
of Japan in 1984, to manufacture motorcycles. It is currently
the largest producer of Two Wheelers in the world. It sold 3
million bikes in the year 2005-2006. Recently it has also
entered in scooter manufacturing, with its model PLEASURE
mainly aimed at girls. The Hero Group has done business
differently right from the start and that is what has helped
them to achieve break-through in the competitive two-
wheeler market. The Group's low key, but focused, style of
management has earned the company plaudits amidst
investors, employees, vendors and dealers, as also
worldwide recognition. The growth of the Group through the
years has been influenced by a number of factors:
Just-in-Time
The Hero Group through the Hero Cycles Division was the
first to introduce the concept of just-in-time inventory. The
Group boasts of superb operational efficiencies. Every
assembly line worker operates two machines simultaneously
to save time and improve productivity.
Ancillarisation
An integral part of the Group strategy of doing business
differently was providing support to ancillary units. There
are over 300 ancillary units today, whose production is
dedicated to Hero's requirements and also a large number of
other vendors, which include some of the better known
companies in the automotive segment. Employee Policy:.
Dealer Network
The relationship of Hero Group with their dealers is unique in
its closeness. The dealers are considered a part of the Hero
family. A nationwide dealer network comprising of over
5,000 outlets, and have a formidable distribution system in
place. Sales agents from Hero travels to all the corners of
the country, visiting dealers and send back daily postcards
with information on the stock position that day, turnover,
fresh purchases, anticipated demand and also competitor
action in the region. The manufacturing units have a
separate department to handle dealer complaints and
problems and the first response is always given in 24 hours.
Financial Planning
The Hero Group benefits from the Group Chairman's
financial acumen and his grasp on technology,
manufacturing and marketing. Group Company, Hero Cycles
Limited has one of the highest labor productivity rates in the
world. In Hero Honda Motors Limited, the focus is on
financial and raw material management and a low employee
turnover.
Quality
Quality at Hero is attained not just by modern plants and
equipment and through latest technology, but by enforcing a
strict discipline. At the Group factories, attaining quality
standards is an everyday practice - a strictly pursued
discipline. It comes from an amalgamation of the latest
technology with deep-rooted experience derived from nearly
four decades of hard labor. It is an attitude that masters the
challenge of growth and change - change in consumers'
perceptions about products and new aspirations arising from
a new generation of buyers.
Diversification
Throughout the years of enormous growth, the Group
Chairman, Mr. Lall has actively looked at diversification. A
considerable level of backward integration in its
manufacturing activities has been ample in the Group's
growth and led to the establishment of the Hero Cycles.
CHANGING LIVING STANDARD OF PEOPLE IN
INDIA
The standard of living in India is constantly improving.
However the gap between the poor and rich is ever more
visible. The single most common indicator which is used to
quantify standard of living is the per capita purchasing
power parity (PPP) adjusted gross domestic product (GDP).
In 2003, the per capita PPP adjusted GDP for India was US$
3100. These figures can be compared to $33,000 for the
USA, $4,900 for China and approximately $26,000 for most
western European nations.
With one of the fastest growing economies in the world,
clocked at an average growth rate of 7% between 2000-
2003, India is fast on way to become a large and globally
important consumer economy. However there is no
indication how the growth rate will narrow the gap between
one of world's richest men, Indian billionaire Lakshmi Mittal,
and the poor woman working so hard in the photo. For
example 70% of the Indian population don't have toilets at
home and usually go to the footpath, farm or any outdoor
place for ablutions. In 2006, 22 percent of Indians lived
under the poverty line, down from 50 percent in 1995. With
consistently high economic growth over the next decade,
however, India is aiming to eradicate poverty by 2020.
The Indian middle class, touted to be anywhere between
100 and 300 million depending on the data used, is fast
becoming used to the Western consumer lifestyle. Though
large disparities exist, the standard of living of the average
Indian is slowly but definitely rising and, if current trends
continue, will grow to be approximately one third that of the
developed world (in PPP dollars) by the middle of the 21st
century.
In the field of technology, India has entered the industry
earning a good reputation, as well as a positive stereotype.
The standard of living refers to the quality and quantity of
goods and services available generally measured by
standards such as income inequality, poverty rate, real (i.e.
to people and the way these services and goods are
distributed within a population. It is inflation adjusted)
income per person. Other measures such as access and
quality of health care, educational standards and social
rights are often used too. Examples are access to certain
goods (such as number of refrigerators per 1000 people), or
measures of health such as life expectancy . It is the ease by
which people living in a country are able to satisfy their
needs.
The idea of a 'standard' may be contrasted with the quality
of life, which takes into dual account not only the material
standard of living, but also other more subjective factors
that contribute to human life, such as leisure, safety,
cultural resources, social life, mental health, environmental
quality issues etc. More complex means of measuring well-
being must be employed to make such judgements, and
these are very often political, thus controversial. Even
among two nations or societies that have similar material
standards of living, quality of life factors may in fact make
one of these places more attractive to a given individual or
group.
There are many factors being considered before measuring
standard of living. Some factors are gross domestic product,
the per capita income, population, infrastructural opment,
stability (political and social), and many other indicators.
DATA ANALYSIS
Q1) Which bike do you have?Hero Honda 52 Bajaj 35Any other 13
Hero Honda Bajaj Any other0
10
20
30
40
50
60 52
35
13
Q2) Which Model do you Have?Hero Honda Bajaj
Splendor21 CT 100 7
Passion 13 Discover 12
Karizma 7 Pulsar 11
Any other 6 Any other 8
Splendor Passion Karizma Any other0
5
10
15
20
2521
13
76
7
1211
8
Hero Honda Bajaj
Q3) In which family Income level do you Fall?100000-200000 22200000-300000 45300000-400000 23above 400000 10
100000-200000 200000-300000 300000-400000 above 4000000
5
10
15
20
25
30
35
40
45
22
45
23
10
4) For how long do you own a bike?0-1 year 341-2 year 292-3 year 26above 3 year 11
0-1 year 1-2 year 2-3 year above 3 year0
5
10
15
20
25
30
3534
2926
11
Q5) For what purpose do you use your Motor Bike?
Hero Honda Bajaj
Office Purpose 9 4Personal purpose 13 15Joy Purpose 19 16Other 6 3
Office Purpose Personal purpose Joy Purpose Other0
2
4
6
8
10
12
14
16
18
20
9
13
19
6
4
1516
3
Hero Honda Bajaj
Q6) How do you come to know about this Motor Bike?
Hero Honda BajajNewspaper 4 2Television 23 16Magazine 2 1Friends & Relative 18 19
Newspaper Television Magazine Friends & Relative0
5
10
15
20
25
4
23
2
18
2
16
1
19
Hero Honda Bajaj
Q7) Does Advertisement Influence your decision in choosing a Motor Bike?Yes 87%No 5%Can’t say 8%
Yes No Cant say0%
10%
20%
30%
40%
50%
60%
70%
80%
90%87%
5%8%
Q8) Do you have full knowledge about Bikes before buying?
Hero Honda BajajYes 25 23No 22 15
Hero Honda Bajaj0
5
10
15
20
25
252322
15
Yes No
Q9) Which Factor below Influence your decision?
Hero Honda BajajPrice 72% 78%Mileage 78% 64%Quality 65% 48%Resale Value 40% 28%Status symbol l10% 7%
Price Mileage Quality Resale Value Status symbol0%
10%
20%
30%
40%
50%
60%
70%
80% 72%78%
65%
40%
0%
78%
64%
48%
28%
7%
Hero Honda Bajaj
Q10) How would you rate the following factors of Bikes with respect to different company?
Hero Honda BajajMileage 74% 72%Price 68% 65%Pick up 70% 80%Maintenance 58% 62%Look & Shape 85% 80%Brand Image 53% 55%
Mile
agePric
e
Pick up
Maintenance
Look &
Shape
Brand Im
age0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
74%68% 70%
58%
85%
53%
72%65%
80%
62%
80%
55%
Hero Honda Bajaj
Q11) If new Bike with good features comes in, then would you like to change your bike?
Hero Honda BajajYes 19 21No 17 14Can’t say 11 3
Yes No Can’t say0
5
10
15
20
25
1917
11
21
14
3
Hero Honda Bajaj
CONCLUSION
Due to economic development purchasing power of peoples
increasing day by day. Therefore market of consumer
durable or white goods expanding day by day. By the policy
of liberalization lots of MNC’s are now present in the market
this has been create a competition in the market we can say
rivalry like situation is aroused between the companies. I
found maximum number of Hero Honda consumers, this
shows the monopoly of Hero Honda in old days but now
situation is changed. Although Bajaj & TVS are giving more
features as compare to Hero Honda but also there is image
of Hero Honda is much more in the mind of the consumers.
Definitely Bajaj is the second one in this segment and doing
a much more in comparison to other bikes. In my research
report I came to know that the price and the mileage are the
biggest factors in the purchase decision of the consumers.
And the schemes that are provided by the company also
affect the purchase decision but not more in comparison to
brand image.
Automobile industry has a large potential in all the segments
like four wheelers and even in two wheelers in Indian
market. For my study I have taken two highly competitive
automobile in India that is Hero Honda and Bajaj Auto. Both
of them have captured the Indian market with its own
unique features, such as looks, efficiency, mileage, technical
specification etc. Both the products have approximately
same pricing strategy. They make different in their features
& performance on road. But all said and done, in the 150cc
segment on the marketing front Pulsar 150 DTSi kicked off
Hero Honda Hunk, but in core biking (by which I mean
quality, handling and reliability) Hunk kicked off Pulsar and
there is no debate to this. Still better I would say, ask an
owner who who owns a Hunk for 2 years or so, he is still a
happy man to have spent very little on maintenance and the
Pulsar 150cc DTSi owner would have changed clutch plates,
shock absorbers and is already looking for an upgrade of
Pulsar (if he is a diehard Pulsar fan) or some other better
model. The spares of Bajaj maybe cheaper than Honda but
even Auto Car India acknowledged that Bajaj as a whole
suffers from quality problems. In the last I want to conclude
stating that there is a passion towards cars in India. But
there is still higher passion towards bike among youngsters.
Both the companies need to work more towards technical
efficiency which suits Indian roads.
1. Most of the Pulsar, CBZ & Karizma are purchased by
young generation of 18 to 30 age group because they
prefer stylish looks and rest of the models of Hero
Honda are purchased more by daily users who needs
more average of bikes than looks.
2. Hero Honda 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.
5. Majority of the respondent had bought their motorcycle
more than 3 years.
RECOMMENDATIONS
1. Bajaj should introduce some more models having more
engine power.
2. Hero Honda 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.
5. They also introduce some good finance/discount
schemes for students.
6. The price should be economic.
BIBLIOGRAPHY
Annual Report – Hero Honda
Annual Report – Bajaj Auto Ltd.
www.bajajauto.com
www.herogroup.com
QUESTIONNAIRE
NAME: - …………………..…………………………………CONTACT NO …………………………………………….
AGE:- 15-20 25.30 20-25 Above 30
OCCUPATION:- Businessman Student
Employee Other
======================================================
Q1) Which bike do you have?
Hero Honda
Bajaj
Any Other
Q2) Which Model do you Have?
Hero Honda Splender Passion Karizma Any other
Bajaj CT 100 Discover Pulsar Any
other
Q3) In which family Income level do you Fall?
100000-200000
200000-300000
300000-400000
above 400000
Q4) For how long do you own a bike?
0-1 year
1-2 year
2-3 year
above 3 year
Q5) For what purpose do you use your Motor Bike?
Office Purpose
Personal purpose
Joy Purpose
Other
Q6) How do you come to know about this Motor Bike?
Newspaper
Television
Magazine
Friends & Relative
Q7) Does Advertisement Influence your decision in choosing a Motor Bike?
Yes No Cant say
Q8) Do you have full knowledge about Bikes before buying?
Hero Honda Yes No
Bajaj Yes No
Q9) Which Factor below Influence your decision?
Hero Honda Price Mileage Quality
Resale Value Status symbol
Bajaj Company Name Price
Mileage
Quality Resale Value Status symbol
Q10) How would you rate the following factors of Bikes with respect to different company?
Hero Honda Mileage Price Pick up
Maintenance Look & Shape Brand Image
Bajaj Company Name Mileage Price Pick up Maintenance Look & Shape Brand Image
Q11) If new Bike with good features comes in, then would you like to change your bike?
Hero Honda Bajaj
Q12) Any Suggestions for Company
………………………………………………………………………………………
………………………………………………………………………………………
……………………………………………………………………………………
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