ME PROJECT
A PROJECT REPORT ON
INTRODUCTION
The main object of every organization is to earn more profit, to
achieve this object the organization should increase its sales by
getting more customer and the only way to get more customer is that
the organization should provide expected satisfaction to the
customers.Here the word customer satisfaction means the utility
which customer expect from the product and when a customer get
expected utilities it is called as customer satisfaction.
MRF manufactures the largest range of tyres in India and enjoys
the highest brand preference for superior quality, company
manufactures the largest range of tyres in India and is the market
leader with the largest market share it tyre industry.
Since 1984 MRF tyres has consistently been chosen as oem fitment
by almost every major car manufacturer in India apart from tyres
MRF also manufacturer conveyor belts, pretreads and advanced
polyurethane paints.
Here every customer of MRF is getting satisfaction and it may
analyzed by the following information
MRF own No. 1 award for customer satisfaction by J.D Power Asia
pacific for 2001&2002
It is also created good brand name in other countries also, and
it is the first Indian company to export tyres to the US, the very
birthplace of tyre technology. It is the first company in India to
manufacture and market Nylon tyres passenger tyres
commercially.
MRF is providing huge number of products to the customer as per
the requirement and need.
They provide more warranties to the customers and it will shows
that the company has confident on its product.
So as per the above information it found that the customer
satisfaction towards MRF tyres is good
STATEMENT OF THE PROBLEMS:
Profit earning has become one of the important objectives of
each and every company.
It is very easy to attract new customers but retaining old
customer is too difficulty only the satisfied customer will remain
loyal to the firm brands.
A person enters a showroom when he wants to purchase tyres, but
before purchasing tyres he consults so many persons about tyre.
Like about price, quality, service etc, and then he make decision
to purchase.
If he finds any problem with tyres, he may change his positive
attitude into negative attitude towards tyres given by the
showroom.
Considering, all above points, I have decided To study the
Customers Satisfaction towards MRF Tyres in Bagalkot.
OBJECTIVES OF THE STUDY:
A customer is not dependent on us we are dependent on customer ,
this statement is basis thing for every firm or service sector.
Objectives are:
1. To know the customer satisfaction towards MRF tyres in
Bagalkot city.
2. To know the attributes which creates customer satisfaction
among MRF tyre users in Bagalkot .
3. To know the satisfaction level of the customer with the MRF
tyres.
4. To know valuable suggestion form the customer.
SCOPE & LIMITATIONS
SCOPE:
The study is purely based on the survey conducted in Bagalkot
city and has focused on customers. The study covers the information
about the mind set which may varies from situation & where the
respondents may not be able to give required and accurate
information.
LIMITATIONS:
1.Due to respondents busy schedules, the interests shown by
respondents to answer the questionnaire may be less. This may have
resulted in collecting inaccurate information.
2.Due to time and cost constraint the sample size selected is
100.
3.The selected sample size is small as compared to the total
number of customers. Hence the obtained result may not be accurate
as it may not represent the whole population.
4.The project is open for further improvement of the work.
CHAPTER II
Literature Review
Customer satisfaction
In a competitive marketplace where businesses compete for
customers, customer satisfaction is seen as a key differentiator
and increasingly has become a key element of business strategy.
Measuring customer satisfactionOrganizations are increasingly
interested in retaining existing customers while targeting
non-customers; measuring customer satisfaction provides an
indication of how successful the organization is at providing
products and/or services to the marketplace.
Customer satisfaction is an ambiguous and abstract concept and
the actual manifestation of the state of satisfaction will vary
from person to person and product/service to product/service. The
state of satisfaction depends on a number of both psychological and
physical variables which correlate with satisfaction behaviors such
as return and recommend rate. The level of satisfaction can also
vary depending on other options the customer may have and other
products against which the customer can compare the organization's
products.
Because satisfaction is basically a psychological state, care
should be taken in the effort of quantitative measurement, although
a large quantity of research in this area has recently been
developed. Work done by Berry (Bart Allen) and Brodeur between 1990
and 1998 defined ten 'Quality Values' which influence satisfaction
behavior, further expanded by Berry in 2002 and known as the ten
domains of satisfaction. These ten domains of satisfaction include:
Quality, Value, Timeliness, Efficiency, Ease of Access,
Environment, Inter-departmental Teamwork, Front line Service
Behaviors, Commitment to the Customer and Innovation. These factors
are emphasized for continuous improvement and organizational change
measurement and are most often utilized to develop the architecture
for satisfaction measurement as an integrated model. Work done by
Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988
provides the basis for the measurement of customer satisfaction
with a service by using the gap between the customer's expectation
of performance and their perceived experience of performance. This
provides the measurer with a satisfaction "gap" which is objective
and quantitative in nature. Work done by Cronin and Taylor propose
the "confirmation/disconfirmation" theory of combining the "gap"
described by Parasuraman, Zeithaml and Berry as two different
measures (perception and expectation of performance) into a single
measurement of performance according to expectation. According to
Garbrand, customer satisfaction equals perception of performance
divided by expectation of performance.
The usual measures of customer satisfaction involve a survey
with a set of statements using a Likert Technique or scale. The
customer is asked to evaluate each statement and in term of their
perception and expectation of performance of the organization being
measured.
Improving Customer SatisfactionPublished standards exist to help
organizations develop their current levels of customer
satisfaction. The International Customer Service Institute (TICSI)
has released The International Customer Service Standard (TICSS).
TICSS enables organizations to focus their attention on delivering
excellence in the management of customer service, whilst at the
same time providing recognition of success through a 3rd Party
registration scheme. TICSS focuses an organizations attention on
delivering increased customer satisfaction by helping the
organization through a Service Quality Model.
TICSS Service Quality Model uses the 5 P's - Policy, Processes,
and People, Premises, Product/Services, as well as performance
measurement. The implementation of a customer service standard
should lead to higher levels of customer satisfaction, which in
turn influences customer retention and customer loyalty.
INDUSTRY PROFILE
INTRODUCTION OF MRF COMPANY
1946 - A year to remember India was on the threshold of
independence. A young entrepreneur, K.M. Mammen Mappillai, opened a
small manufacturing unit where balloons, latex cast squeaking toys
and industrial gloves were manufactured little did he realize then
that the company he started would grow to become the no.1 tyre
manufacturer in India.MRF established its first office in 1949 at
Chennai, Tamil Nadu, and India. The company began as a manufacturer
of toy balloons and other rubber products and then later on moved
to manufacture tyres in 1961.Today MRF is into a league of its own
with:MRF manufactures the largest range of tyres in India and
enjoys the highest brand preference for superior quality, company
manufactures the largest range of tyres in India and is the market
leader with the largest market share it tyre industry.
Since 1984 MRF tyres has consistently been chosen as oem fitment
by almost every major car manufacturer in India AUTOMOBILE
INDUSTRY
IN INDIA
(SPECIAL FOCUS ON
BAJAJ PULSAR BIKES)
SUBMITTED TO :
Prof. Ms.Simran sethi(Faculty of Managerial economics )BY GROUP
1NIHAREIKA SINHA
PADMADEVI
SAURABH PANDEY
GAURANG SAHLOT
ISHA VASHISTSIRAJ SIDDIQUIINDEX
1. ACKNOWLEDGMENT.32. INTRODUCTION.4
3. COMPANY PROFILE(BAJAJ AUTO LTD)..14
4. OBJECTIVE OF STUDY...18
5. IMPORTANCE OF STUDY.18
6. METHODOLOGY.197. MARKET SHARE AND GROWTH RATES.20
8. MARKET STRUCTURE.22
9. PRIMARY DATA ANALYSIS.23
10. SALES FORECASTING47
11. CORRELATION5512. HERFINDAHL INDEX.5613. PRICEANALYSIS
.58
14. CONCLUSION5915. APPENDIX.7216.
REFERENCES..73AcknowledgementWe are extremely grateful to Ms.
Simran Sethi for providing us the honor of carrying out the
project, which helped us to put our learnings into experience.
Without her guidance we would not have been able to proceed with
our project in the right direction.
We would like to express our sincere regards to the staff of
LBSIM, New Delhi, whose help and guidance enables us to know what
exactly consumers preference towards television is all about. We
would also like to thank our family friends and relatives who have
helped us and supported us in all possible ways.A Project report
needs co-operation, guidance and experience of many more other than
the persons whose name appears on the cover, we would like to thank
each and everyone who have helped us in our endeavor.
INTRODUCTIONThe Indian automotive industry consists of five
segments: commercial vehicles; multi-utility vehicles &
passenger cars; two-wheelers; three-wheelers; and tractors. With
5,822,963 units sold in the domestic market and 453,591 units
exported during the first nine months of FY2005 (9MFY2005), the
industry (excluding tractors) marked a growth of 17% over the
corresponding previous. The two-wheeler sales have witnessed a
spectacular growth trend since the mid nineties.Two-wheelers:
Market Size & GrowthIn terms of volume, 4,613,436 units of
two-wheelers were sold in the country in 9MFY2005 with 256,765
units exported. The total two-wheeler sales of the Indian industry
accounted for around 77.5% of the total vehicles sold in the period
mentionedFigure 1:Segmental Growth of the Indian Two Wheeler
Industry (FY1995-2004)
After facing its worst recession during the early 1990s, the
industry bounced back with a 25% increase in volume sales in
FY1995. However, the momentum could not be sustained and sales
growth dipped to 20% in FY1996 and further down to 12% in FY1997.
The economic slowdown in FY1998 took a heavy toll of two-wheeler
sales, with the year-on-year sales (volume) growth rate declining
to 3% that year. However, sales picked up thereafter mainly on the
strength of an increase in the disposable income of middle-income
salaried people (following the implementation of the Fifth Pay
Commission's recommendations), higher access to relatively
inexpensive financing, and increasing availability of fuel
efficient two-wheeler models. Nevertheless, this phenomenon proved
short-lived and the two-wheeler sales declined marginally in
FY2001. This was followed by a revival in sales growth for the
industry in FY2002. Although, the overall two-wheeler sales
increased in FY2002, the scooter and moped segments faced
de-growth. FY2003 also witnessed a healthy growth in overall
two-wheeler sales led by higher growth in motorcycles even as the
sales of scooters and mopeds continued to decline. Healthy growth
in two-wheeler sales during FY2004 was led by growth in motorcycles
even as the scooters segment posted healthy growth while the mopeds
continued to decline. Figure 1 presents the variations across
various product sub-segments of the two-wheeler industry between
FY1995 and FY2004.Demand DriversThe demand for two-wheelers has
been influenced by a number of factors over the past five years.
The key demand drivers for the growth of the two-wheeler industry
are as follows:
Inadequate public transportation system, especially in the
semi-urban and rural areas;
Increased availability of cheap consumer financing in the past
3-4 years;
Increasing availability of fuel-efficient and low-maintenance
models;
Increasing urbanisation, which creates a need for personal
transportation;
Changes in the demographic profile;
Difference between two-wheeler and passenger car prices, which
makes two-wheelers the entrylevel vehicle;
Steady increase in per capita income over the past five years;
and
Increasing number of models with different features to satisfy
diverse consumer needs.
MARKET CHARACTERISTICS
Demand
Segmental Classification and Characteristics
The three main product segments in the two-wheeler category are
scooters, motorcycles and mopeds. However, in response to evolving
demographics and various other factors, other subsegments emerged,
viz. scooterettes, gearless scooters, and 4-stroke scooters. While
the first two emerged as a response to demographic changes, the
introduction of 4-stroke scooters has followed the imposition of
stringent pollution control norms in the early 2000. Besides, these
prominent sub-segments, product groups within these sub-segments
have gained importance in the recent years. Examples include 125cc
motorcycles, 100-125 cc gearless scooters, etc. The characteristics
of each of the three broad segments are discussed in Table 1.Table
1
Two-Wheelers: Comparative Characteristics
ScooterMotorcycleMoped
Price*(Rs. as in January 2005) > 22,000> 30,000>
12,000
Stroke2-stroke, 4-strokeMainly 4-stroke 2-stroke
Engine Capacity (cc) 90-150100, 125, > 12550, 60
IgnitionKick/ElectronicKick/ElectronicKick/Electronic
Engine Power (bhp) 6.5-97-8 and above 2-3
Weight (kg) 90-100> 10060-70
Fuel Efficiency (kms per litre) 50-7550-80+70-80
Load Carrying HighHighestLow
*Ex-showroom MumbaiCompiled by INGRES
Segmental Market ShareThe Indian two-wheeler industry has
undergone a significant change over the past 10 years with the
preference changing from scooters and mopeds to motorcycles. The
scooters segment was the largest till FY1998, accounting for around
42% of the two-wheeler sales (motorcycles and mopeds accounted for
37% and 21 % of the market respectively, that year). However, the
motorcycles segment that had witnessed high growth (since FY1994)
became larger than the scooter segment in terms of market share for
the first time in FY1999. Between FY1996 and 9MFY2005, the
motorcycles segment more than doubled its share of the two-wheeler
industry to 79% even as the market shares of scooters and mopeds
stood lower at 16% and 5%, respectively.
Figure 2 Trends in Segmental Share in Industry Sales
(FY1996-9MFY2005)
While scooter sales declined sharply by 28% in FY2001,
motorcycle sales reported a healthy growth of 20%, indicating a
clear shift in consumer preference. This shift, which continues,
has been prompted by two major factors: change in the country's
demographic profile, and technological advancements.
Over the past 10-15 years the demographic profile of the typical
two-wheeler customer has changed. The customer is likely to be
salaried and in the first job. With a younger audience, the
attributes that are sought of a two-wheeler have also changed.
Following the opening up of the economy and the increasing exposure
levels of this new target audience, power and styling are now as
important as comfort and utility.
The marketing pitch of scooters has typically emphasised
reliability, price, comfort and utility across various
applications. Motorcycles, on the other hand, have been
traditionally positioned as vehicles of power and style, which are
rugged and more durable. These features have now been complemented
by the availability of new designs and technological innovations.
Moreover, higher mileage offered by the executive and entry-level
models has also attracted interest of two-wheeler customer. Given
this market positioning of scooters and motorcycles, it is not
surprising that the new set of customers has preferred motorcycles
to scooters. With better ground clearance, larger wheels and better
suspension offered by motorcycles, they are well positioned to
capture the rising demand in rural areas where these
characteristics matter most.
Scooters are perceived to be family vehicles, which offer more
functional value such as broader seat, bigger storage space and
easier ride. However, with the second-hand car market developing, a
preference for used cars to new two-wheelers among vehicle buyers
cannot be ruled out. Nevertheless, the past few years have
witnessed a shift in preference towards gearless scooters (that are
popular among women) within the scooters segment. Motorcycles,
offer higher fuel efficiency, greater acceleration and more
environment-friendliness. Given the declining difference in prices
of scooters and motorcycles in the past few years, the preference
has shifted towards motorcycles. Besides a change in demographic
profile, technology and reduction in the price difference between
motorcycles and scooters, another factor that has weighed in favour
of motorcycles is the high re-sale value they offer. Thus, the
customer is willing to pay an up-front premium while purchasing a
motorcycle in exchange for lower maintenance and a relatively
higher resale value.
SupplyManufacturers
As the following graph indicates, the Indian two-wheeler
industry is highly concentrated, with three players-Hero Honda
Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS Motor
Company Ltd (TVS) - accounting for over 80% of the industry sales
as in 9MFY2005. The other key players in the two-wheeler industry
are Kinetic Motor Company Ltd (KMCL), Kinetic Engineering Ltd
(KEL), LML Ltd (LML), Yamaha Motors India Ltd (Yamaha), Majestic
Auto Ltd (Majestic Auto), Royal Enfield Ltd (REL) and Honda
Motorcycle & Scooter India (P) Ltd (HMSI).
Figure 3 Shares of Two-Wheeler Manufacturers in Industry Sales
(FY2000-9MFY2005)
Although the three players have dominated the market for a
relative long period of time, their individual market shares have
undergone a major change. Bajaj Auto was the undisputed market
leader till FY2000, accounting for 32% of the two-wheeler industry
volumes in the country that year. Bajaj Auto dominance arose from
its complete hold over the scooter market. However, as the demand
started shifting towards motorcycles, the company witnessed a
gradual erosion of its market share. HHML, which had concentrated
on the motorcycle segment, was the main beneficiary, and almost
doubled its market share from 20% in FY2000 to 40% in 9MFY2005 to
emerge as the market leader. TVS, on the other hand, witnessed an
overall decline in market share from 22% in FY2000 to 18% in
9MFY2005. The share of TVS in industry sales fluctuated on a year
on year basis till FY2003 as it changed its product mix but has
declined since then.
Technology
Hitherto, technology transfer to the Indian two-wheeler industry
took place mainly through: licensing and technical collaboration
(as in the case of Bajaj Auto and LML); and joint ventures
(HHML).Table 2
Technological tie-ups of Select Players
Nature of Alliance CompanyProduct
Bajaj AutoTechnological tie-upKawasaki Heavy Industries Ltd,
Japan Motorcycles
Technological tie-upTokya R&D Co Ltd, Japan Two-wheelers
Technological tie-upKubota Corp, Japan Diesel Engines
HHMLJoint Venture Honda Motor Co, Japan Motorcycles
KELTechnological tie-upHyosung Motors & Machinery Inc
Motorcycles
KELTie up for manufacturingand distribution Italjet, Italy
Scooters
LMLTechnological tie-upDaelim Motor Co Ltd Motorcycles
Hero Motors Technological tie-upAprilia of Italy Scooters
.BAJAJ Auto limitedBajaj Auto is a major Indian automobile
manufacturer. It is India's largest and the world's 4th largest
two- and three-wheeler maker. It is based in Pune, Maharashtra,
with plants in Akurdi and Chakan (Pune),Waluj (near Aurangabad) and
Pantnagar in Uttaranchal. Bajaj Auto makes and exports
motorscooters, motorcycles and the auto rickshaw.
The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto
at 1946.
Over the last decade, the company has successfully changed its
image from a scooter manufacturer to a two wheeler manufacturer.
Its product range encompasses scooterettes, scooters and
motorcycles. Its real growth in numbers has come in the last four
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.
Bajaj Auto came into existence on November 29, 1945 as M/s
Bachraj Trading Corporation Private Limited. It started off by
selling imported two- and three-wheelers in India. In 1959, it
obtained license from the Government of India to manufacture two-
and three-wheelers and it went public in 1960. In 1970, it rolled
out its 100,000th vehicle. In 1977, it managed to produce and sell
100,000 vehicles in a single financial year. In 1985, it started
producing at Waluj in Aurangabad. In 1986, it managed to produce
and sell 500,000 vehicles in a single financial year. In 1995, it
rolled out its ten millionth vehicle and produced and sold 1
million vehicles in a year.BAJAJ PULSAR
Bajaj Pulsar is a motorcycle brand owned by Bajaj Auto in India.
The two wheeler was developed by the product engineering division
of Bajaj Auto in association with motorcycle designer Glynn Kerr
Tokyo R&D. Currently there are four variants available -with
engine capacities of 150cc, 180 and two variants with capacities of
220 cc. More than a million units of Pulsar were sold by November
2005. A Pulsar 200 variant was discontinued in July 2009. With
monthly sales of more than 48,000 units in June 2009, Pulsar is the
leader in the 150 cc segment in India with a market share of
43%.
Before the introduction of the Pulsar, the Indian motorcycle
market trend was towards fuel efficient, small capacity motorcycles
(that formed the 80-125 cc class). Bigger motorcycles with higher
capacity virtually did not exist (except for Enfield Bullet). The
launch and success of Hero Honda CBZ in 1999 showed that there was
demand for performance bikes. Bajaj took the cue from there on and
launched the Pulsar twins in India on November 24, 2001. Since the
introduction and success of Bajaj Pulsar, the Indian youth began
expecting high power and other features from affordable
motorcycles.
DTSi
DTSi stands for Digital Twin Spark Ignition, a Bajaj Auto
trademark. Bajaj Auto holds an Indian patent for the DTSi
technology. The Alfa Romeo Twin-Spark engines, the BMW F650 Funduro
which was sold in India from 1995 to 1997 also had a twin-spark
plug technology, and the Rotax motorcycle engines,more recently
Honda's iDSI Vehicle engines use a similar arrangement of two
spark-plugs. However very few small capacity engines did eventually
implement such a scheme in their production prototypes.
Key players in the Bike segment :
BAJAJ AUTO HERO HONDA
TVS
YAMAHA
ROYAL ENFIELD Objective of StudyThe objective of this research
is to determine the customer as well as retailers preferences
regarding different brands of motorcycles which result in their
market share. It involves the study of consumers buying behaviour
and attitudes towards a variety of attributes and factors, which
help them in decision-making.
The brand we chose to focus on was BAJAJ AUTO Ltd.s PULSAR brand
of bikes. We studied the company profile, its market structure, the
brand awareness, growth rates and popularity among consumers so as
to forecast the future sales and understand the growth trends.
We designed a questionnaire to survey various dealers and
consumers to understand the demand and supply situation of the bike
market. Secondary data from the internet has also been used for
effective analysis. Importance of StudyThe importance of this study
is to practically understand the relevance of the concepts of
managerial economics in the business organisations and here in the
realm of the motorcycles industry. The present market scenario was
analyzed and future demands forecasted using the simple regression
techniques. Also, a comprehensive study of the major factors
involved in this market was conducted so as to see how different
and similar a market structure is from the theories.Methodology
Primary data collection:
For primary data collection we designed a questionnaire to
survey various dealers and consumers. The objective of survey was
to understand the consumer preferences among various brands of
motorcycles available in the market and the factors affecting
consumer buying process.
The sample size for the survey was around 40-50.
Secondary data collection:
Internet was the major source for secondary data. Apart from
understanding the bike industry in general and Bajaj in specific,
our major task was to analyse the consumer demand for Bajajs
PULSARs brand and project the future sales for the company. We have
used the trend projection and exponential forecasting technique to
predict the sales.
Market share and Growth ratesTwo- wheeler sales in the country
have sky rocketed in the recent years, and the annual sales of
motorcycles in India expected to cross the 10 million mark by 2010.
The low penetration of two-wheelers in the country 31 two-wheelers
per 1000 citizens (2004) leaves immense scope for the growth of the
market. Overall the industry sales of two-wheelers have grown by
15% from 6.57 million in 2004/2005 to 7.57 million in 2005/2006.
The buoyant Indian economy with a growth rate of around 8% per
annum is further expected to fuel the growth of two wheelers in the
country.The share of motorcycles have increased over the years,
while that of other two-wheelers like geared scooters, scooterettes
and mopeds have shown a negative growth or remained stagnant. The
two-wheelers have penetrated 7% of rural house hold and 24% of
urban markets, thus it leaves an immense scope for the market to
grow.Bajaj Auto one of the leading producers of automobiles in the
country has been able to sell close to 2.3 million vehicles in
2005/2006, the sales of the company grew by almost 31%. The company
registered a 32% growth in the sales of motorcycles much above the
industry average of 19%. Bajaj Auto has emerged as a market leader
in the entry level or price segment motorcycle with the Bajaj CT
100 accounting for nearly 40% of the market share. It also commands
a 62% market share in the premium segment of motorcycles with
products like the Bajaj Pulsar DTSI. TVS Motors which has lots of
firsts to its credit in the two-wheeler sector in the country was
able to sell 1.34 million units during the same period thus
registering an overall growth of 15% from the previous year. In the
motorcycle segment the company's growth in sales was in sync with
the industry average.
f this figures have daunted you the best is yet to come, the
country leader in two-wheelers hero honda have crossed the three
million mark during the year 2005/2006 which is a good few lakhs
more than its nearest competitor Bajaj Auto. The company accounted
for nearly 40% of then two-wheeler market. In the motorcycle
segment the company has been able to attain a market share of about
50%. The segment in which hero honda has emerged as a clear winner
is the Deluxe segment, which is the largest segment in the
motorcycles category, with its flagship family of motorcycles
splendor selling over 1.2 million units which is just a shade less
than all the two wheelers sold by TVS during the same year.
The motorcycle category is expected to see a further growth and
according to industry experts it will drive all other category of
two-wheelers to the periphery.
The table below shows the over all trend of Industry Sales over
a 5 year period. The figures are provided by the Society of
automobile Manufactures Association (SIAM).Two-wheeler domestic
sales trend
Motorcycles
2001-02 2002-03 2003-04 2004-05 2005-06
28871943647493417044549647535815417
MARKET STRUCTURE
Market Structure
This industry is a high volume, medium growth sector
characterized by excess/ idle capacities owing to in efficient
operations. Imports have not been influencing prospects, as high
government regulations limit this .
Characteristics
BIKES : primarily a commodity market - price sensitive
Effective distribution chain - through a simple network of
dealers and franchises. Regulation - Emission norms as well as
import regulations are in existence. Market - Urban areas are the
largest market for Pulsar, followed by small towns and then rural
centres.The market of motorcycles shows a monopolistic structure
due to the following factors:
Different and many players in the market
Differentiated products.
Prices charged are different.
The competition is a non price competition i.e on the basis of
advertising and delivering differentiated products.
PRIMARY DATA ANALYSIS1. Age group classification of customers
preferring Bajaj Pulsar
18-2424%
24-3038%
30-3619%
ABOVE 3619%
As is clear the maximum buyers are of the age group 24-30 ,
hence it can be interpreted as being popular in college going
youth.2. Bikes owned (categorisation)- pulsarbajaj Splendor
Apache Unicorn
cd-dawn enfield
bullet(old)hunk enticer ct100 CBZPulsar DTS i hero honda3.ANUAL
HOUSEHOLD INCOME
10 LAKH15%Which shows that a majority group belonging to the
pulsar kind of bikes is more from the income group category 3-5
& 5-10 lakh group.Moreover none of the customer was from < 1
lakh category which is also an important finding from the marketing
point of view.Summary report (graphical representation of collected
data)4.purpose of the
bike(office/traveling/household/adventure/other)1 -
LOWEST30%210%315%45%5 - HIGHEST40%People may select more than one
checkbox, so percentages may add up to more than
100%.TravelingLOWESTHIGHESTHouseholdLOWESTHIGHEST1 -
LOWEST5%220%335%440%5 - HIGHEST0%People may select more than one
checkbox, so percentages may add up to more than
100%.AdventureLOWESTHIGHEST1 - LOWEST15%2945%315%4630%5 -
HIGHEST315%People may select more than one checkbox, so percentages
may add up to more than 100%.OTHERLOWESTHIGHEST1 -
LOWEST33%20%333%40%5 - HIGHEST33%People may select more than one
checkbox, so percentages may add up to more than 100%.PLEASE
SPECIFY THE OTHER FACTOR College, small town movement, status
,shopping5.Buying
decisionMileage/looks/brand/service/priceLOWESTHIGHEST1 -
LOWEST0%20%330%425%5 - HIGHEST45%People may select more than one
checkbox, so percentages may add up to more than
100%.looksLOWESTHIGHEST1 - LOWEST0%20%325%435%5 - HIGHEST40%People
may select more than one checkbox, so percentages may add up to
more than 100%.BrandLOWESTHIGHEST1 - LOWEST0%20%320%445%5 -
HIGHEST35%People may select more than one checkbox, so percentages
may add up to more than 100%.ServiceLOWESTHIGHEST1 -
LOWEST0%215%355%425%5 - HIGHEST5%People may select more than one
checkbox, so percentages may add up to more than
100%.PriceLOWESTHIGHEST1 - LOWEST0%20%340%430%5 - HIGHEST30%People
may select more than one checkbox, so percentages may add up to
more than 100%.6.Purchasing
decisionFriends/family/dealer/adventure/otherLOWESTHIGHEST1 -
LOWEST0%25%355%40%5 - HIGHEST40%People may select more than one
checkbox, so percentages may add up to more than
100%.FamilyLOWESTHIGHEST1 - LOWEST15%215%325%420%5 -
HIGHEST25%People may select more than one checkbox, so percentages
may add up to more than 100%.DealerLOWESTHIGHEST1 -
LOWEST25%240%330%45%5 - HIGHEST0%People may select more than one
checkbox, so percentages may add up to more than
100%.AdvertisementLOWESTHIGHEST1 - LOWEST0%210%350%415%5 -
HIGHEST25%People may select more than one checkbox, so percentages
may add up to more than 100%.OTHER FACTORSLOWESTHIGHEST1 -
LOWEST75%20%30%425%5 - HIGHEST0%People may select more than one
checkbox, so percentages may add up to more than 100%.PLEASE
SPECIFY THE OTHER FACTOR College, work requirements7.Chosen
mediaTelevision/hoarding/print media/internet/otherLOWESTHIGHEST1 -
LOWEST0%20%30%415%5 - HIGHEST85%People may select more than one
checkbox, so percentages may add up to more than
100%.HoardingsLOWESTHIGHEST1 - LOWEST5%215%320%445%5 -
HIGHEST15%People may select more than one checkbox, so percentages
may add up to more than 100%.Print mediaLOWESTHIGHEST1 -
LOWEST0%25%310%460%5 - HIGHEST25%People may select more than one
checkbox, so percentages may add up to more than
100%.InternetLOWESTHIGHEST1 - LOWEST30%220%320%420%5 -
HIGHEST10%People may select more than one checkbox, so percentages
may add up to more than 100%.OTHERSLOWESTHIGHEST1 -
LOWEST50%225%325%40%5 - HIGHEST0%People may select more than one
checkbox, so percentages may add up to more than 100%.IF OTHERS
PLEASE SPECIFYRadio,pamphlets8.Brand power Easy
recallBajaj/herohonda/Yamaha/Honda/tvsLOWESTHIGHEST1 -
LOWEST0%20%310%425%5 - HIGHEST65%People may select more than one
checkbox, so percentages may add up to more than 100%.Hero
hondaLOWESTHIGHEST1 - LOWEST0%20%30%460%5 - HIGHEST40%People may
select more than one checkbox, so percentages may add up to more
than 100%.YamahaLOWESTHIGHEST1 - LOWEST0%235%330%435%5 -
HIGHEST0%People may select more than one checkbox, so percentages
may add up to more than 100%.HondaLOWESTHIGHEST1 -
LOWEST5%25%345%435%5 - HIGHEST10%People may select more than one
checkbox, so percentages may add up to more than
100%.TVSLOWESTHIGHEST1 - LOWEST15%250%325%410%5 - HIGHEST0%People
may select more than one checkbox, so percentages may add up to
more than 100%.8.Bike on preferencePulsar/apache/f-z
150/hunk/otherLOWESTHIGHEST1 - LOWEST0%20%310%445%5 -
HIGHEST45%People may select more than one checkbox, so percentages
may add up to more than 100%.ApacheLOWESTHIGHEST1 -
LOWEST0%25%330%465%5 - HIGHEST0%People may select more than one
checkbox, so percentages may add up to more than
100%.f-zLOWESTHIGHEST1 - LOWEST5%20%35%430%5 - HIGHEST60%People may
select more than one checkbox, so percentages may add up to more
than 100%.HunkLOWESTHIGHEST1 - LOWEST0%210%340%450%5 -
HIGHEST0%People may select more than one checkbox, so percentages
may add up to more than 100%.ANY OTHERLOWESTHIGHEST1 -
LOWEST0%20%30%450%5 - HIGHEST50%People may select more than one
checkbox, so percentages may add up to more than 100%.IF
OTHER,PLEASE SPECIFYSplendor,karizma9.Perception parameters about
pulsarStyle/power/performance/value/brandLOWESTHIGHEST1 -
LOWEST0%20%325%420%5 - HIGHEST55%People may select more than one
checkbox, so percentages may add up to more than
100%.PowerLOWESTHIGHEST1 - LOWEST0%25%320%445%5 - HIGHEST30%People
may select more than one checkbox, so percentages may add up to
more than 100%.PerformanceLOWESTHIGHEST1 - LOWEST0%20%345%435%5 -
HIGHEST20%People may select more than one checkbox, so percentages
may add up to more than 100%.ValueLOWESTHIGHEST1 -
LOWEST0%25%335%455%5 - HIGHEST5%People may select more than one
checkbox, so percentages may add up to more than
100%.BrandLOWESTHIGHEST1 - LOWEST0%20%310%480%5 - HIGHEST10%People
may select more than one checkbox, so percentages may add up to
more than 100%.Some direct inferences.Factors influencing the
buying behaviorBrand recall Sales Forecasting1. Trend projection
method: This classical method of business forecasting is
essentially concerned with the study of movements of variables
through time. It is used under the assumption that the factors
responsible for past trends in the variable to be projected will
continue to play their part in the future in the same manner and to
the same extent in magnitude and direction. There are three
techniques of trend projection: Graphical method Least square
method Box-Jenkins method Sales forecast of Pulsar for the year
2008 using Least Square method (which is same as simple linear
regression method): YEARSALES(S)in
CroresTT2ST20008651186520011011.55242023.120021374.94394124.8220031512.434166049.7220041647.865258239.320051799.663610797.6TOTAL8211.38219132099.54
1.Trend Projection Method: The straight line trend equation used
for projecting future sales is: S = a + bT Where, S = annual sales
T = time in years a, b are constants The constants a and b are
estimated by solving the following two equations: S = na + bT ST =
aT + bT2Here, n = 6 S = 8211.38 crores ST = 32099.54 crores T = 21
T2 = 91 On solving the above two equations we get, a = 696.63 and b
= 191.98 RMSE Calculation:On the basis of the calculated values of
a and b, the predicted sales value for the years 2006, 2007 and
2008 will be: Sp2006 = 696.63 + (191.98*7) = 2040.49 crore Sp2007 =
696.63 + (191.98*8) = 2232.47 crore Sp2008 = 696.63 + (191.98*9) =
2424.45 crore And, the actual sales values for the above three
years are: Sa2006 = 2072.00 crore Sa2007 = 2487.00 crore Sa2008 =
3497.00 crore RMSE = {(3497.00 2424.45)2 + (2487.00 2232.47) 2+
(2072.00 2040.49)2}1/2 (3) 1/2 = 636.69 Sales for 2009 and 2010 can
also be forecasted: S2009 = 696.63 + (191.98*10) = 2616.43 crore
S2010 = 696.63 + (191.98*11) = 2808.41 crore3. Exponential
smoothing: It is a popular technique for short-run forecasting. It
uses a weighted average of past data as the basis for a forecast.
It gives higher weight to most recent data and least weight to
observations of distant past. The weights for past data are chosen
in accordance with their degree of influence on the future. The
formula for exponential smoothing is- ST+1 = AyT + (1-a) St Where,
St+1 = exponentially smoothed forecastYt = actual sales of previous
year St = forecasted sales of last year Now, we apply this method
on the available sales data of AWL considering a six period average
as the initial forecast for the year 2006:S2006 =
(865.00+1011.55+1374.94+1512.43+1647.86+1799.60)/6 = 1368.56 We
take the smoothing constant, a = 0.4 Therefore, S2007 = (0.4*2072)
+ (0.6*1368.56) = 1649.93 S2008 = (0.4*2487) + (0.6*1509.25) =
1984.75 RMSE Calculation:RMSE = {(2072.00 1368.56)2+ (2487.00
1649.93)2 + (3497 1984.75)2 }1/2 (3 )1/2 = 1077.406 Sales for the
year 2009 can also be predicted as: S2009 = (0.4*3497.00) +
(0.6*1984.75) = 2589.65 cr Calculation of Correlation: Correlation
Coefficient = 3359.71/(6-1)*(364.848*1.871)=0.984 This shows that
there is a high degree of correlation between the time period and
sales i.e more the time period, more are the sales. This means that
sales are highly dependent on the time period positively.
Calculation of Herfindahl IndexMarket shares of various brands in
premium segment i.e. 150-220 c.c.Pulsar : 41%Hero Honda: 27%TVS:
25%Royal Enfield: 5%Yamaha: 2%Herfindahl Index:
(41^2)+(27^2)+(25^2)+(5^2)+(2^2)=3064Since the value of H
(Herfindahl index) is high, we can say that the concentration ratio
is also high in the segment of premium bikes. PRICE REGRESSION
PRICE ANALYSISThe maximum number of bikes lie in the range between
40-50 thousands which is also a usp of pulsar as it is almost near
to the given range and provides a better value for
money.CONCLUSIONThe bike was launched in the year 2000, and for it
to capture the largest share of market and beat existing and
flourishing brands like Hero Honda is a great achievement.Also the
root mean square error value in the least square method is less
than that in the exponential forecasting method. Thus, the sales
predicted by least square method will be a better estimate of the
future sales than that predicted by exponential forecasting method.
The maximum buyers are of the age group 24-30 , hence it can be
interpreted as being popular in college going youth .A majority
group belonging to the pulsar kind of bikes is more from the income
group category 3-5 & 5-10 lakh group The maximum number of
bikes lie in the range between 40-50 thousands which is also a usp
of pulsar as it is almost near to the given range and provides a
better value for money.The youth were more inclined towards the
adventure part of bikes ,looks, consult friends, use television and
internet and prefer style and value the most whereas for the elders
go for household and office, mileage, family, print, value and
brand before making a bike purchase. Annual incomes have a direct
correlation with increasing demands of consumer also. Pulsar
overall enjoys a favorable demand among all the categories and
consist of maximum alluring qualities amongst the tested ones.
APPENDIXQuestionnaire for Bike Customers(The findings of this
survey will be used only for academic purposes by the students of
Lal Bahadur Shastri Institute of Management,New delhi)Top of
FormQ1.Name of the customer Q2.Age : 18-24 24-30 30-36 ABOVE 36
Q3.WHICH BIKE DO YOU OWN PRESENTLY ? Q4.ANUAL HOUSEHOLD INCOME 10
LAKH Q5.WHAT IS THE PURPOSE OF YOUR BIKE?(RATE ON 5 POINT SCALE-5
BEING THE HIGHEST AND 1 BEING THE LOWEST )a)OFFICE
12345LOWESTHIGHESTb)TRAVELLING 12345LOWESTHIGHESTc)HOUSEHOLD
12345LOWESTHIGHESTd)ADVENTURE 12345LOWESTHIGHESTe)OTHER
12345LOWESTHIGHESTPLEASE SPECIFY THE OTHER FACTOR Q6.RATE THE KEY
FACTORS WHICH AFFECTED YOUR BUYING DECISION?(5 BEING THE HIGHEST
AND 1 BEING THE LOWEST )a)MILEAGE 12345LOWESTHIGHESTb)LOOKS
12345LOWESTHIGHESTc)BRAND 12345LOWESTHIGHESTd)SERVICE
12345LOWESTHIGHESTe)PRICE 12345LOWESTHIGHESTQ7.WHICH OF THE
FOLLOWING INFLUENCES YOUR PURCHASE DECISION?(RATE ON 5 POINT
SCALE-5 BEING THE HIGHEST AND 1 BEING THE LOWEST )a)FRIENDS
12345LOWESTHIGHESTb)FAMILY 12345LOWESTHIGHESTc)DEALER
12345LOWESTHIGHESTd)ADVERTISEMENT 12345LOWESTHIGHESTe)OTHER FACTORS
12345LOWESTHIGHESTPLEASE SPECIFY THE OTHER FACTOR Q8.WHICH OF THE
FOLLOWING MEDIA ARE YOU MOST LIKELY TO NOTICE AN ADVERTISEMENT
?(RATE ON 5 POINT SCALE-5 BEING THE HIGHEST AND 1 BEING THE LOWEST
)a)TELEVISION 12345LOWESTHIGHESTb)HOARDINGS
12345LOWESTHIGHESTc)PRINT MEDIA 12345LOWESTHIGHESTd)INTERNET
12345LOWESTHIGHESTe)OTHERS 12345LOWESTHIGHESTIF OTHERS PLEASE
SPECIFY Q9.WHICH BRAND NAME DO YOU FIND EASY TO RECALL?(RATE ON 5
POINT SCALE-5 BEING THE HIGHEST AND 1 BEING THE LOWEST )a)BAJAJ
12345LOWESTHIGHESTb)HERO HONDA 12345LOWESTHIGHESTc)YAMAHA
12345LOWESTHIGHESTd)HONDA 12345LOWESTHIGHESTe)TVS
12345LOWESTHIGHESTQ10.RATE THE BIKES ON THE BASIS OF YOUR
PREFERENCE?(RATE ON 5 POINT SCALE-5 BEING THE HIGHEST AND 1 BEING
THE LOWEST )a)PULSAR 12345LOWESTHIGHESTb)APACHE
12345LOWESTHIGHESTc)F-Z 150 12345LOWESTHIGHESTd)HUNK
12345LOWESTHIGHESTe)ANY OTHER 12345LOWESTHIGHESTIF OTHER,PLEASE
SPECIFY Q11.RATE YOUR PERCEPTION ABOUT PULSAR ON THE FOLLOWING
FACTORS-(RATE ON 5 POINT SCALE-5 BEING THE HIGHEST AND 1 BEING THE
LOWEST )a)STYLE 12345LOWESTHIGHESTb)POWER
12345LOWESTHIGHESTc)PERFORMANCE 12345LOWESTHIGHESTd)VALUE
12345LOWESTHIGHESTe)BRAND 12345LOWESTHIGHEST HTMLCONTROL
Forms.HTML:Hidden.1 REFERENCES1. EBSCO HOST(database)2.
PROWESS(database)3. INDIA STATS(database)4. Peterson, Lewis and
Jain: Managerial Economics5. www.bajajauto.com6.
http://auto.indiamart.com/motorcycles/bajaj-pulsar7.
http://www.fadaweb.com/two_wheeler_industry.htm8.
auto.indiamart.com/motorcycles9.
www.iloveindia.com/bikes/index.html10.
www.infibeam.com/bikes/make/herohonda.html11.
bikes.whereincity.com12. www.bikesalesindia.com13.
www.infibeam.com/bikes/make/bajaj.html14.
www.autoblogs.in/.../bajaj-pulsar-300-cc-india-bajaj-bikes.html15.
www.autoindiaforum.com/bajaj-to-launch-6-new-bikes-in-2009.html16.
FOR VEIWING THE COLLECTEDPRIMARY DATA VISIT
http://spreadsheets.google.com/ccc?key=0Au4_eI1zvZ0YdF8yT2VCRHFKWmJZQm4zQkdlQ0d3enc&hl=enPAGE
41_1313958220.unknown_1313958252.unknown_1313958268.unknown_1313958276.unknown_1313958280.unknown_1313958282.unknown_1313958283.unknown_1313958281.unknown_1313958278.unknown_1313958279.unknown_1313958277.unknown_1313958272.unknown_1313958274.unknown_1313958275.unknown_1313958273.unknown_1313958270.unknown_1313958271.unknown_1313958269.unknown_1313958260.unknown_1313958264.unknown_1313958266.unknown_1313958267.unknown_1313958265.unknown_1313958262.unknown_1313958263.unknown_1313958261.unknown_1313958256.unknown_1313958258.unknown_1313958259.unknown_1313958257.unknown_1313958254.unknown_1313958255.unknown_1313958253.unknown_1313958236.unknown_1313958244.unknown_1313958248.unknown_1313958250.unknown_1313958251.unknown_1313958249.unknown_1313958246.unknown_1313958247.unknown_1313958245.unknown_1313958240.unknown_1313958242.unknown_1313958243.unknown_1313958241.unknown_1313958238.unknown_1313958239.unknown_1313958237.unknown_1313958228.unknown_1313958232.unknown_1313958234.unknown_1313958235.unknown_1313958233.unknown_1313958230.unknown_1313958231.unknown_1313958229.unknown_1313958224.unknown_1313958226.unknown_1313958227.unknown_1313958225.unknown_1313958222.unknown_1313958223.unknown_1313958221.unknown_1313958188.unknown_1313958204.unknown_1313958212.unknown_1313958216.unknown_1313958218.unknown_1313958219.unknown_1313958217.unknown_1313958214.unknown_1313958215.unknown_1313958213.unknown_1313958208.unknown_1313958210.unknown_1313958211.unknown_1313958209.unknown_1313958206.unknown_1313958207.unknown_1313958205.unknown_1313958196.unknown_1313958200.unknown_1313958202.unknown_1313958203.unknown_1313958201.unknown_1313958198.unknown_1313958199.unknown_1313958197.unknown_1313958192.unknown_1313958194.unknown_1313958195.unknown_1313958193.unknown_1313958190.unknown_1313958191.unknown_1313958189.unknown_1313958156.unknown_1313958172.unknown_1313958180.unknown_1313958184.unknown_1313958186.unknown_1313958187.unknown_1313958185.unknown_1313958182.unknown_1313958183.unknown_1313958181.unknown_1313958176.unknown_1313958178.unknown_1313958179.unknown_1313958177.unknown_1313958174.unknown_1313958175.unknown_1313958173.unknown_1313958164.unknown_1313958168.unknown_1313958170.unknown_1313958171.unknown_1313958169.unknown_1313958166.unknown_1313958167.unknown_1313958165.unknown_1313958160.unknown_1313958162.unknown_1313958163.unknown_1313958161.unknown_1313958158.unknown_1313958159.unknown_1313958157.unknown_1313958140.unknown_1313958148.unknown_1313958152.unknown_1313958154.unknown_1313958155.unknown_1313958153.unknown_1313958150.unknown_1313958151.unknown_1313958149.unknown_1313958144.unknown_1313958146.unknown_1313958147.unknown_1313958145.unknown_1313958142.unknown_1313958143.unknown_1313958141.unknown_1313958124.unknown_1313958132.unknown_1313958136.unknown_1313958138.unknown_1313958139.unknown_1313958137.unknown_1313958134.unknown_1313958135.unknown_1313958133.unknown_1313958128.unknown_1313958130.unknown_1313958131.unknown_1313958129.unknown_1313958126.unknown_1313958127.unknown_1313958125.unknown_1313958116.unknown_1313958120.unknown_1313958122.unknown_1313958123.unknown_1313958121.unknown_1313958118.unknown_1313958119.unknown_1313958117.unknown_1313958108.unknown_1313958112.unknown_1313958114.unknown_1313958115.unknown_1313958113.unknown_1313958110.unknown_1313958111.unknown_1313958109.unknown_1313958104.unknown_1313958106.unknown_1313958107.unknown_1313958105.unknown_1313958100.unknown_1313958102.unknown_1313958103.unknown_1313958101.unknown_1313958096.unknown_1313958098.unknown_1313958099.unknown_1313958097.unknown_1313958094.unknown_1313958095.unknown_1313958093.unknown_1313958092.unknown