A SUMMER INTERNSHIP PROJECT ON “A Study on Customer Preference and Satisfaction towards Bajaj Bikes” Submitted to S.R. LUTHRA INSTITUTE OF MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In Gujarat Technological University UNDER THE GUIDANCE OF Faculty Guide: Company Guide: Ms. Esha Pandya Mr. Shoban Mulla Asst. Professor Branch Manager (Shivam Bajaj) Submitted by 1
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A
SUMMER INTERNSHIP PROJECTON
“A Study on Customer Preference and Satisfaction towards Bajaj Bikes”
Submitted to
S.R. LUTHRA INSTITUTE OF MANAGEMENT IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
In
Gujarat Technological UniversityUNDER THE GUIDANCE OF
Faculty Guide: Company Guide:
Ms. Esha Pandya Mr. Shoban Mulla
Asst. Professor Branch Manager
(Shivam Bajaj)
Submitted byMr. Ajay B. Savaliya [Batch No. 2014-16, Enrollment No.147500592100]
MBA SEMESTER III
S.R. LUTHRA INSTITUTE OF MANAGEMENT – 750MBA PROGRAMME
Affiliated to Gujarat Technological University
Ahmedabad
August, 2015
1
Company Certificate
This is to certify that Mr. Ajay B. Savaliya from S.R. LUTHRA INSTITUTE OF
MANAGEMENT, have carried out the research on the subject titled “A study on
Customer Preference and Satisfaction towards Bajaj Bikes” at Shivam Bajaj
under the supervision of Mr. Shoban Mulla, from June 2015 to August, 2015. I
also certify that, the above mentioned student has carried the research work
satisfactorily.
Place: - Surat
Date: - ____________
________________
Mr. Shoban Mulla
(Branch Manager)
2
Student’s Declaration
I, Mr. Ajay B. Savaliya, hereby declare that the report for Summer Internship
Project entitled “A study on Customer preference and Satisfaction towards Bajaj
Bikes” is a result of my own work and my indebtedness to other work
publications, references, if any, have been duly acknowledged.
Place: Surat
Date: _____________
__________________
(Ajay B. Savaliya)
3
Institute’s Certificate
Certified that this Summer Internship Project Report Titled “A study on Customer
Preference and Satisfaction towards Bajaj Bikes” is the bonafide work of Mr. Ajay
B. Savaliya (Enrollment No. 147500592100), who has carried out the research
under my supervision. I also certify further, that to the best of my knowledge the
work reported herein does not form part of any other project report or dissertation
on the basis of which a degree or award was conferred on an earlier occasion on
this or any other candidate.
Place: Surat
Date: ________________
___________________
(Esha Pandya)
Asst. Professor
___________________
(J. M. Kapadia)
Director
4
Preface
In today’s intensely competitive environment, companies today are constantly
looking for ways to attract customers by having a better understanding of
changing customer preferences. So, I do this particular research to know about
customer preference and satisfaction towards Bajaj bikes in Surat city those who
use Bajaj bikes.
I have tried my level best to do the proper justification with my work in this
project. I do this research to know which is/are the influencing factors for
purchasing Bajaj bikes.
The time period for conducting the report is starting from 8 th June, 2015 to 18th
July, 2015. I have taken primary and secondary data whereas primary data
throughout questionnaire to study the report.
I have applied Pearson Chi-square test for estimating the customer preference
and satisfaction towards Bajaj bikes.
5
Acknowledgement
I am very thankful to Gujarat Technological University because they contain
training as an essential part of M.B.A. course & make it compulsorily to each &
every student.
I would like to express my sincere thanks and gratitude to our beloved principal
Dr. Jimmy Kapadia (Director) and Ms. Esha Pandya (Assistant Professor) for
giving innovative ideas, constant help, and encouragement too this project work
& give me better support in the industrial training without whom it would be very
difficult for me to completing this report.
I am highly indebted to Mr. Shoban Mulla (Branch Manager, Shivam Bajaj, Surat)
for their guidance and constant supervision as well as for providing necessary
information regarding the project & also for their support in completing the report.
I would like to express my gratitude towards my parents & member of Shivam
Bajaj for their kind co-operation and encouragement which help me in completion
of this report.
I would like to express my special gratitude and thanks to industry persons for
giving me such attention and time. My thanks and appreciations also go to my
colleague in developing the project and people who have willingly helped me out
with their abilities.
6
Executive Summary
I have selected topic for my project is “A study in Customer Preference and
Satisfaction towards Bajaj bikes”. I have completed my training at Shivam Bajaj,
Surat. In two-wheeler automobile industry Hero MotoCorp have a highest market
share. The global two-wheeler manufacturing industry grew by 3.3% in 2013.
India is the second largest manufacturer and producer of two-wheelers in the
world. Major players of two-wheeler industry are Hero, Honda, Suzuki, Bajaj,
TVS, Yamaha, and Royal Enfield etc.
The objective of my research is which is/are the most attractive attributes for
purchasing Bajaj bikes; and study the level of satisfaction the same. I have taken
200 samples for the survey. Type of design is descriptive research design; data
collection throughout questionnaire; and sampling method for the study is a non-
probability convenience sampling.
For the tools of data analysis I have used SPSS which analyze data to Pearson
Chi-square for finding there is association between two variables; also prepare a
frequency table for the same. I have used Microsoft Excel for prepare a
frequency charts.
Majority of the customer prefer Bajaj bike on the basis of price, mileage,
maintenance cost, and engine capacity attributes. More than 50% of the
respondents are satisfied with the price and engine capacity. More no. of
respondents has dissatisfied with the resale value and after sales services of
Bajaj. As per survey Hero is a 1st rank and Bajaj is a 3rd rank. There is no
association between customer income and mileage attribute of bike; and
customer occupation and brand image. There is association between customer
age and look & style of Bajaj bikes.
7
TABLE OF CONTENTS
o Company’s Certificate
o Student’s’ Declaration
o Institute’s Certificate
o Preface
o Acknowledgement
o Executive Summary
Sr. No.
Particulars Page No.
1. Introduction 12. Industry Profile 5
a. Global
b. National
c. State
d. PESTEL
e. Current trends
f. Major Players
g. Major Offerings
5
8
12
13
16
18
19
3. Company Profile 20a. Company Profile
b. Organogram
c. Divisions/ Departments
d. SWOT
e. Market Position
22
32
33
34
35
4. Review of Literature 365. Research Methodology 43
a. Problem Statement 4
8
b. Research Objective
c. Research Design
i. Type of Design
ii. Types of Data
iii. Instruments for Data Collections
iv. Sample Population
v. Sample Area
vi. Sample Size
vii. Sampling Method
viii. Tools for Analysis
ix. Limitations of the Study
3
4
4
4
5
4
5
4
5
4
5
4
5
4
5
4
5
4
5
4
5
4
5
6. Data Analysis and Interpretation 467. Finding and Conclusion 83
a. Findings
b. Conclusion
83
85
8. Bibliography 869. Annexure 87
9
LIST OF TABLES
Sr. No. ParticularsTable No.
Page No.
1 February sales and growth of two-wheeler 2.1 10
2 Age 6.1 46
3 Occupation 6.2 47
4 Education 6.3 48
5 Monthly income 6.4 49
6 Know about Bajaj bikes 6.5 50
7 Models of Bajaj 6.6 51
8 Most attractive attributes of Bajaj 6.7 53
9 Comparing between other bikes 6.8 55
10 Customer satisfaction towards price 6.9 56
11 Customer satisfaction towards mileage 6.10 57
12 Customer satisfaction towards look & style 6.11 58
10
13 Customer satisfaction towards pickup 6.12 59
14 Customer satisfaction towards engine capacity 6.13 60
15 Customer satisfaction towards colors 6.14 61
16 Customer satisfaction towards maintenance cost 6.15 62
17 Customer satisfaction towards brand image 6.16 63
18 Customer satisfaction towards resale value 6.17 64
19 Customer satisfaction towards comfortable ride 6.18 65
20 Customer satisfaction towards after sales services 6.19 66
21 Rank 6.20 67
22 Problem facing by user of Bajaj 6.21 69
23 Recommended Bajaj bikes to friends or others 6.22 70
24 Monthly income * Mileage Attribute Cross tabulation 6.23 71
25 Chi-Square Test between Mileage attribute and
Monthly income6.24 72
26 Satisfaction towards Price * Monthly income Cross
tabulation6.25 73
27 Chi-Square Test between customer satisfaction
towards price and Monthly income6.26 74
28 Satisfaction towards Comfortable ride * Occupation
Cross tabulation6.27 75
29 Chi-Square between Satisfaction towards
Comfortable ride and Occupation6.28 76
30 Satisfaction towards Look & style * Age(in Years)
Cross tabulation6.29 77
31 Chi-Square between Satisfaction towards Look &
style and Age(in Years)6.30 78
32 Satisfaction towards Brand image * Occupation 6.31 79
11
Cross tabulation
33 Chi-Square between Satisfaction towards Brand
image and Occupation6.32 80
34 Education * Maintenance cost Attribute Cross
tabulation6.33 81
35 Chi-Square between Education and Maintenance
cost Attribute6.34 82
LIST OF FIGURES
Sr. No. ParticularsFigure
No.Page No.
1 February Sales 2.1 10
2 Current trends 2.2 16
3 Segment wise two-wheeler Market share 2.3 17
4 Age 6.1 46
5 Occupation 6.2 47
6 Education 6.3 48
7 Monthly income 6.4 49
8 Know about Bajaj bikes 6.5 50
9 Model of Bajaj bikes 6.6 52
10 Most attractive attributes of Bajaj 6.7 54
11 Comparing between other bikes 6.8 55
12 Customer satisfaction towards price 6.9 56
13 Customer satisfaction towards mileage 6.10 57
12
14 Customer satisfaction towards look & style 6.11 58
15 Customer satisfaction towards pickup 6.12 59
16 Customer satisfaction towards engine capacity 6.13 60
17 Customer satisfaction towards colors 6.14 61
18 Customer satisfaction towards maintenance cost 6.15 62
19 Customer satisfaction towards brand image 6.16 63
20 Customer satisfaction towards resale value 6.17 64
21 Customer satisfaction towards comfortable ride 6.18 65
22 Customer satisfaction towards after sales services 6.19 66
23 Rank 6.20 67
24 Problem facing by user of Bajaj 6.21 69
25 Recommended Bajaj bikes to friends or others 6.22 70
13
INTRODUCTION
14
Introduction of Customer Preference and Satisfaction
Who is Customer?
A customer (sometimes known as a client, buyer, or purchaser) is the recipient of
a good, service, product, or idea, obtained from a seller, vendor, or supplier for a
monetary or other consideration. Customers are generally categorized into two
types:
An intermediate customer or trade customer who is a dealer that
purchases goods for re-sale.
An ultimate customer who does not in turn re-sell the things bought but
either passes them to the consumer or actually is the consumer.
A customer may or may not also be a consumer, but the two notions are distinct,
even though the terms are commonly confused. A customer purchases goods; a
consumer uses them. An ultimate customer may be a consumer as well, but just
as equally may have purchased items for someone else to consume. An
intermediate consumer is not a consumer at all.
What is Preference?
15
Preference refers to certain characteristics any consumer wants to have in a
good or service to make it preferable to him. This could be the level of happiness,
degree of satisfaction, utility from the product, etc…
Preferences are the main factors that influence consumer demand. Economists
study preferences to perceive the demand for each commodity and the future
implications it may cause.
What is Customer Preference?
Customer preference is used primarily to mean to select an option that has the
greatest anticipated value among a number of options by the consumer in order
to satisfy his/her needs or desires. Preferences indicate choices among neutral
or more valued options available. The preference of the consumer is the result of
their behavior they show during searching, purchasing and disposing the
products.
Consumer preferences are defined as the subjective (individual) tastes, as
measures by utility, of various bundles of goods. They permit the consumer to
rank these bundles of goods according to the level of utility they give the
consumer. Note that preferences are independent of income and pieces. Ability
to purchase goods does not determine a consumer’s likes or dislikes. One can
have a preference for Porsches over Fords but only have the financial means to
drive a Ford.
Tailor marketing strategies to customer preferences
16
To make communications relevant, marketers need information about each
customer's preferences and interests. But where do you get this information?
How do you coax customers to give it to you? A well thought-out preference
center can make all the difference across all channels.
First, limit the information requested. Look at your overall marketing strategy and
use that as your guide to decide what data to request. Ask only for the
information you need and you will use to execute your communications strategy.
Don't collect all the information at once. Allow your customers to share only the
data they are comfortable sharing. As you build trust, they'll usually be willing to
share more.
Finally, don't give up. Send periodic follow-ups to customers who haven't
completed their entire profile, and remind them of the advantages of doing so.
Once you have the data, make sure you use it. Customers like it when you talk
about what's important to them, so tailor your offers based on their information. It
helps to ask your customers the day of the week and time of day they prefer to
receive your messages.
Gathering information through preference centers is the first step in building a
meaningful dialogue with your customers. By combining preference information
with data you already have, you can create campaigns that are so relevant that
your customers will consider your marketing communications a value-added,
differentiating service.
What is satisfaction?
It is the customer’s perceived performance from a product in relation to the
expectations.
Customer satisfaction, a business term, is a measure of how products and
services supplied by a company meet customer expectation. It is seen as a key
17
performance indicator within business and is part of the four perspectives of a
Balanced Scorecard.
In a competitive marketplace where businesses compete for customers,
customer satisfaction is seen as a key differentiator and increasingly has become
a key element of business strategy.
The customer is satisfied if the performance matches the expectations; delighted
if the performance exceeds expectations. Marketing aims for total customer
satisfaction by matching product performance with expectations. Fulfillment of
one’s wishes, expectations, or needs, or the pleasure derived from this.
What is Customer Satisfaction?
Customer satisfaction measures how well the expectations of a customer
concerning a product or service provided by your company have been met.
Customer satisfaction is an abstract concept and involves such factors as the
quality of the product, the quality of the service provided, the atmosphere of the
location where the product or service is purchased, and the price of the product
or service. Businesses often use customer satisfaction surveys to gauge
customer satisfaction. Typical areas addressed in the surveys include:
Quality of product
Value of product relative to price-a function of quality and price.
Time issues, such as product availability, availability of sales assistance,
time waiting at checkout, and delivery time.
Atmosphere of store, such as cleanliness, and enjoyable shopping
environment.
Convenience, such as location, parking, hours of operation.
18
Every human being is a consumer of different produces. If there is no consumer,
there is no business. Therefore, consumer satisfaction is very important to every
business person. The consumer satisfaction after purchase depends on product
performance in relation to his/her expectations.
Consumer satisfaction or dissatisfaction is the feeling derived by the consumer
when he compares the product's actual performance with the performance that
he expects out of it. Consumers make their expectations from the service quality,
service, delivery, communications, past experiences and references. These all
are to be judged correctly by the management so that their perceptions match
with consumer expectations. If any of these factors are wrongly interpreted then
the expected level of consumer satisfaction cannot be reached.
19
INDUSTRY PROFILE
a. Global level
The world’s largest market for two wheelers is china followed by India. These
countries are also hosts to world class plants along with the obviously powerful
and influential Japanese manufacturers and brand names such as Honda,
Suzuki, and Yamaha and so on. It is also seen that the advent of national brands
like Bajaj and TVS, which are also likely to go global, setting up marketing and
manufacturing arrangements in the other populous markets of Asia. The global
market for two wheelers has shown tremendous growth over the past decade.
The geographic spread of this growth has been very uneven. Asia has accounted
for the vast majority of growth. China and India alone account for over half the
20
world’s two wheeler sales. Other large markets in the region are Japan,
Indonesia, Vietnam and Taiwan. Latin America is another important region and
sales there have more than doubled over the past ten years especially in Brazil.
The major players in the world two-wheeler market could at one time be
categorized simply into two groups: the three global Japanese giants (Honda,
Suzuki and Yamaha) and other players are Hero, Bajaj, TVS, and Royal Enfield.
However, as the industry globalizes further, a further category is emerging,
namely other Asian (mostly Indian and Chinese player) and European players
who are seeking to expand their own identities worldwide.
The global two-wheeler manufacturing industry grew by 3.3% in 2013 to reach a
value of $61.5bn representing a compound annual growth rate of 5.8% for the
period spanning 2009-2013.Europe and North America experienced an overall
decline in industry value in 2013. The decline in North America was driven by the
Mexican industry, which saw a decline in production volume of over 20% in 2013.
Two-wheelers are one of the most affordable forms of motorized transport and,
for most of the world's population; they are the most common type of motor
vehicle. About 200 million two-wheelers, including mopeds, motor scooters,
motorized bicycles, and other powered two and three-wheelers, are in use
worldwide, or about 33 motorcycles per 1000 people. In comparison, there are
around 590 million cars in the world, or about 91 per 1000 people. Most two-
wheelers, 58%, are in the developing countries of Asian - Southern and Eastern
Asia, and the Asia Pacific countries, excluding Japan - while 33% of cars, 195
million, are concentrated in the United States and Japan. There are
approximately 1.5 million active motorcyclists in the UK, representing around 3%
of the UK adult population. Around 3 million people hold a full two-wheeler
licence. Ownership rates indicate there are approximately 22 motorcycles per
1,000 people.
Total demand for two-wheeler in Europe during calendar year 2012 declined
approximately 10% from the previous year to approximately 779 thousand units.
21
Weak consumer sentiment due to growing economic instability adversely
affected demand. Total industry demand for two-wheelers in Japan in financial
year 2013 was approximately 440 thousand units, mostly unchanged from the
previous financial year 2012. Although the number of licensed riders declined in
line with the continued decline in the population of young people in Japan, unit
sales growth was driven by higher demand for scooters and small motorcycles.
Total demand for two-wheelers in Asia during calendar year 2012 declined
approximately 3% from the previous year to approximately 41,500 thousand
units. Looking at market conditions by country, demand in India increased
approximately 5% from the previous year, to approximately 13,850 thousand
units while demand in China decreased approximately 10% from the previous
year, to approximately 12,630 thousand units.
In Indonesia, saw demand decline approximately 12% from the previous year, to
approximately 7,060 thousand units and Vietnam saw demand decline
approximately 7% from the previous year, to approximately 3,100 thousand units.
Demand in Thailand rose approximately 8% from the previous year, to
approximately 2,160 thousand units. Harley-Davidson is the leader in the global
to-wheeler industry, and saw two-wheeler retail sales increase 20% in the first
quarter of 2012 year-on-year, with US growth reaching closer to 26%. The
company is increasing its full-year shipment guidance, expecting to ship between
245,000 to 250,000 two-wheelers in 2012 to dealers and distributors throughout
the world.
In two-wheeler industry Honda's consolidated unit sales of two-wheelers in
financial year 2013 totalled 9,510 thousand units, an increase of 9.9% from the
previous fiscal year, mainly due to higher sales in India, Thailand and certain
other countries, despite lower sales in Brazil and Vietnam. Other important
players currently operating in the global two-wheeler market include BMW,
Honda Motorcycle & Scooter India, Yamaha, Triumph, Kawasaki, Bajaj Auto.
22
b. National level
India is a 4th largest economy in the world, 4th largest commercial vehicle market,
India emerged as Asia’s 4th largest exporter of automobiles, behind Japan, South
Korea and Thailand. India is the second largest manufacturer and producer of
two-wheelers in the world. It stands next only to Japan and China in terms of the
number of two-wheelers produced and domestic sales respectively. This
distinction was achieved due to variety of reasons like restrictive policy followed
by the Government of India towards the passenger car industry, rising demand
for personal transport, inefficiency in the public transportation system.
23
Indian two-wheeler industry has got spectacular growth in the last few years.
Indian two-wheeler industry had a small beginning in the early 50's. The
Automobile Products of India (API) started manufacturing scooters in the country.
Bikes are a major segment of Indian two wheeler industry, the other two being
scooters and mopeds. Indian companies are among the largest two-wheeler
manufacturers in the world.
Indians prefer the two wheelers because of their small manageable size, low
maintenance, and pricing and easy loan repayments. Indian streets are full of
people of all age groups riding a two wheeler. The Indian two-wheeler industry
made a small beginning in the early 50s when Automobile Products of India (API)
started manufacturing scooters in the country. The two-wheeler industry in India
has been in existence since 1955. It consists of three segments viz., scooters,
motorcycles, and mopeds. Until 1958, API and Enfield were the sole producers.
In 1948, Bajaj Auto began trading in imported Vespa scooters and three-
wheelers. In the initial stages, API dominated the scooter segment; Bajaj Auto
later overtook it. Although various government and private enterprises entered
the fray for scooters, the only new player that has lasted till today is LML. Under
the regulated regime, foreign companies were not allowed to operate in India.
Notwithstanding the strong revival witnessed early in FY15, volume growth in the
Indian two-wheeler industry has reported deceleration over the last few months
dragged by declining volumes of motorcycles segment. The growth story for the
Indian automobile industry in 2014 rode on the two-wheeler segment and not on
passenger cars or commercial vehicles, as high interest rates and a stuttering
manufacturing industry kept a check on demand.
The two-wheeler segment is the only one that has clocked positive growth at
12.9 percent YoY (year-on-year) to reach sales of nearly 13.5 million units by
October. This can be attributed to the low cost of two wheelers in India.
ICRA said that various structural positives associated with the domestic two
wheeler industry include favorable demographic profile; moderate two wheeler
24
penetration levels (in relation to several other emerging markets), under
developed public transport system, growing urbanization, strong replacement
demand and moderate share of financed purchases remain intact.
ICRA said the motorcycle volumes faltered after a positive first half of 2014-15
and OEMs lined up new models to woo customers. Accounting for over 65 per
cent of two-wheeler industry volumes, performance of motorcycles has a
significant bearing on the overall volumes of the industry.
Consequently, with sluggish volumes in the segment, the overall industry volume
growth was also dragged down during the last four months despite continued
strong performance of scooters. Though the segment grew by 11.6 percent year
over year (YoY) during H1 FY15, growth faltered during FY15 with motorcycle
volumes posting a decline of 5.4 percent YoY and 6 per cent YoY in January
2015. Although fuel prices have started coming down significantly, the enquiry
levels at showrooms have come down and conversions are not taking place at
all. The sales of diesel vehicles are also tapering off because of the narrowing
price gap vis-a-vis petrol. Two-wheeler sector grew 12.9 percent.
The demand environment for the two wheeler industry remained subdued in the
current fiscal. CARE Research believes tough economic scenario owing to high
inflation, depleting growth in all economic activities, coupled with challenges like
firm interest rates and spiralling fuel prices have moderated the growth in near
term. Income levels in urban areas have been affected by the slowdown in the
industrial activities, while rural income is impacted due to below normal
monsoons in most regions that have significantly affected agriculture output.
CARE Research observed in spite of some sort of momentary spurt owing to
festive demand during third quarter of FY13, the two wheeler sales growth
remained around 4 per cent during the April-February period of FY13.
Table 2.1
February Sales and Growth of two wheelers
25
Two wheelers Feb’15 Feb’14 Value %GrowthBajaj Auto 216,077 273,323 -57,246 -20.94%
Hero MotoCorp 484,769 504,181 -19,412 -3.85%
HMSI 361,493 328,468 33,025 10.05%
TVS Motors co 164,508 147,580 16,928 11.47%
Royal Enfield 29,491 19,840 9,651 48.64%
Suzuki Motorcycle India 30,467 27,007 3,460 12.81%
Mahindra Two wheelers 8,289 17,848 -9,559 -53.56%
Fig. 2.1
India’s largest motorcycle manufacturer, Hero MotoCorp has communicated that
its monthly sales for February 2015 stands at 484,769 units as against 504,181
units sold in February 2014. The company has registered a fall of 3.85 percent
for this month.
February 2015 marked the highest domestic market share of 29 percent for
Honda Motorcycle & Scooter India (HMSI). The company sold a total of 361,493
units during the month, marking a growth of 10.05 percent. HMSI’s February
2014 sales stood at 328,468 units.
26
A continued dip in the motorcycle sales saw Pune-based Bajaj Auto sell 216,077
units (including exports) during February 2015. The company, which marked a
decline in its monthly motorcycle sales of 20.94 percent, had sold 273,323 units
in February 14.
c. State level
In Gujarat state, sales of two-wheeler between April and September went down
by 15% to 3.40 lakh units from 4 lakh units in the same period of the previous
year 2011-12. In 2012–13, sales of two-wheelers were down, Since September
2012, the sales gradually started coming down and hence de-growth in 2012–13
was marginal. While in 2013 –14, sales of two-wheeler were increased. In the
previous year, Gujarat used to buy around 65000 to 70000 two-wheelers every
month. Now, the averaged has come down around 50000 to 55000 units per
27
month. There are multiple factors that have brought down sales of two-wheelers
in the Gujarat state. Bajaj Automobiles has sold around 11000 bikes per month
between April and September in 2014. Compared to the previous year 2013, the
figures are down from over 13000 units per month.
At present, automobile industry is selling bikes and scooters within the segment
of 75cc to over 500cc of the total sales; over 60% falls in the segment of 100cc to
125cc.This segment provides good mileage and falls in the value segment. Now
a day the interest rates for buying two-wheelers have increased which is affecting
one’s plan of buying a bike on loan. There are many customers who already own
a bike but want to buy a new bike by selling the existing one. Those customers
have put their plans on hold. They are not getting good resale value and getting
finance for the new bike has become expensive.
Bajaj auto has witness’s good responses from rural markets of Gujarat. In
Gujarat state 2014, total sales, about 45% of two-wheelers were sold on finance.
d. PESTEL Analysis1. Political factor
Political factors are the level to what the government interferers in the economy.
Specifically, political factors area such as tax liabilities, labour law, environmental
law, trade restrictions, tariffs, and political stability. Political factors include goods
and services which the government wants to provide or be provided government
plays an important role in the economy as well as in taxes to be charged to the
company. These factors are also play an important role in the employment law,
28
competition regulations as the company cannot make specific prices as they
have to follow the competition regulations. In the next few years, China is saying
that they are going to be investing billions of dollars I to hybrid technology. Bajaj
is a two-wheeler automobile company who is well known for sport bikes.
Traditionally, Government of India has considered the automobile industry as a
luxury segment. But realizing the growing importance of two-wheelers with the
increasing necessity of personal transportation for the middle class in eighties,
priority was given to the sector by favorable foreign policy. This brought about
technology revolution to the two-wheelers as Japanese majors entered in
technical and financial participation with Indian majors. Government of India has
a moderate intervention in the operations of two-wheeler industry. Excise duty
structure, emission control, safety of rider, etc. are all policy decisions.
2. Economic factor
Economic factors are those which are influenced by economic growth, interest
rate, exchange rate and inflation rate.
Abundant and low cost labour coupled with local availability of raw material like
steel, aluminium, and natural rubber has placed India amongst the low cost
producing centers of two-wheelers. Consequently, CARE research anticipants’
buoyant growth in two-wheelers exports as well, abundance of labour and raw
material gives India an upper hand in the export. Since many auto finance
company laid easy instalment rules with less interest rate it makes more segment
people to go for it.
3. Social factor
Social aspects of two-wheelers industry are popularity, subculture, and safety.
Lifestyle and preferences of people that impact their choice of types of two-
wheeler bike. In numerous cultures, motorcycles are the primary means of
motorized transport. India is the second largest motorcycle markets in the world
29
next to china. Socially many motorcycle organization raise money for charities
through organized ride and events. Many people ride motorcycles for various
reasons, those reasons are increasingly practical, with riders opting for a
powered two-wheeler as a cost –efficient alternative to infrequent and expensive
public transport system, or as a means of avoiding or reducing the effects of
urban congestion. Motorcycle gives a great advantage to the specified
designation where other buses cannot enter. Since there is a rule in some of the
main states and cities in India to wear helmet while ride two-wheelers to make
them safe from accidents makes two-wheelers riders to have a safety journey.
4. Technological factor
A technical aspect in two-wheeler industry includes construction, fuel economy,
electric motorcycle, dynamics and accessories.
Two-wheeler construction is engineering, manufacturing, and assembly of
components and system for two-wheelers which result in performance, cost and
aesthetics desired by the designers. Construction of two-wheeler includes steel,
aluminium frame, telescope forks and disc brakes. Motorcycle is the best fuel
economy mode of transport, now a days two-wheelers is desire to give more than
80km mileage per liter with low maintenance cost. Invention of electric
motorcycle gives an added advantage since the two-wheeler users can avoid
using petrol. Different types of two-wheelers have different dynamics and these
plays a vital role in their performance. Since sufficient bike accessories are
available in many place two-wheeler riders has a privilege to change the broken
parts very easily.
5. Environmental factor
Physical conditions effecting ability to use two-wheeler of different types. This will
also include state infrastructure such as roads for driving vehicles. Physical
infrastructure such as roads and bridges affect the use of two-wheeler industry. If
there is good availability of roads or roads are smooth then it will affect the use of
two-wheelers. Physical conditions like environmental situation affect the use of
30
two-wheelers. If the environment is pleasant then it will lead to more use of
vehicles.
Technological solutions helps in integrating the supply chain, hence reduce
losses and increase profitability. With the entry of global companies into the
Indian market, advanced technologies, both in product and productions process
have developed.
6. Legal factor
Legal provision relating to environmental population by two-wheeler automobile.
Legal provisions relating to safety, measures. In India the Rules and Regulations
related to driving license, registration of two-wheelers, control of traffic,
construction & maintenance of vehicles etc. are governed by the Motor Vehicles
Act 1988 and the Central Motor Vehicles rules 1989. The Ministry of Shipping,
Road Transport & Highways acts as a nodal agency for formulation and
implementation of various provisions of the Motor Vehicle Act and Central Motor
Vehicles Rules.
e. Current Trend
The two wheeler market in India is clearly dominated by top 3 players like Hero
MotoCorp, Honda Motorcycles and Scooters India (HMSI), Bajaj Auto around
86% of the market share. The rest 14% is shared by Yamaha, Suzuki, Royal
Enfield, TVS Motors etc.
Fig. 2.2
31
Hero MotoCrop retains the top spot with 54% market share. Standing next to it is
Bajaj Auto is 18%, Honda is 14%. The other players who are trailing are Suzuki,
Royal Enfield, Yamaha and TVS Motors are covered in rest of 14% market
share.
Segment Wise Two Wheeler Market ShareFig. 2.3
32
There are three segments: Motorcycles, Scooters, and Mopeds. The motorcycle
segment continues to dominate two wheeler markets with a strong hold of 74% in
overall sales volume. On the other hand, scooters segment emerging as a
significant market due to the preferred choice of young adults mainly by females,
currently it holds around 22% of overall two wheeler sales volume. Mopeds
would continue to remain small market and holds a share of around 4%.
f. Major Key Players
33
Major Key players in the Two-wheeler industry are following them.
Hero MotoCorp Ltd
Honda Motor Company Ltd
Suzuki Motor Corporation Ltd
Bajaj Auto Ltd
TVS Motor Company Ltd
Yamaha Motor Company Ltd
Royal Enfield Company Ltd
Mahindra Two-wheelers Ltd
Harley-Davidson Company Ltd
Piaggio
g. Major Offering
34
There are many categories of motorbikes; they offering two-wheeler industry.
1. Sports bikes
A sport bike is a motorcycle optimized to achieve responsive, athletic levels of
acceleration, braking, and cornering, often but not always involving the presence
of a particularly high-performance engine. Riding position is inclined forward,
hands on low or clip-on handlebars. The most popular motorbike class, sports
bikes have fast and powerful engines, sharp styling and handling, and
aerodynamic fairings. Sport bikes emphasize speed, acceleration, braking, and
cornering on paved roads. I.e. Honda CBR 100RR, Yamaha YZF R1, and
Kawasaki Ninja 250R, Pulsar RS200 etc.
2. Sport touring bikes
Sport touring bikes is a type of motorcycle that combines the performance of
sports bike with the long distance capabilities and comfort of a touring
motorcycle. I.e. BMW R100RS, BMW K120GT, Kawasaki ZX-6R etc.
3. Cruiser bikes
A cruiser is a motorcycle in the style of American machines from the 1930s to the
early 1960s, including those made by Harley Davidson, Excelsior and
Henderson. The riding position usually places the feet forward and the hands up,
with the spine erect or leaning back slightly. Typical cruiser engines emphasize
easy ride ability and shifting, with plenty of low-end torque but not necessarily
large amounts of horsepower, traditionally V-twins but inline engines have
become more common. Cruisers with greater performance than usual, including
more horsepower, stronger brakes and better suspension, are often called power
cruisers. I.e. Bajaj Avenger, Royal Enfield Thunderbird, Harley Davidson Super
From the above table clear that 37% of the respondents are satisfied and 43% of
the respondents are average satisfied with the comfortable ride of Bajaj bike.
While 5.5% of the respondents are dissatisfied, 11.5% of the respondents are
highly satisfied and 3% of the respondents are highly dissatisfied.
19) Frequency of customer satisfaction towards after sales services
Table 6.19
After sales services No. of respondent
Percentage (%)
Satisfied 5 2.5
Average 45 22.5
Dissatisfied 135 67.5
Highly dissatisfied 15 7.5
86
Total 200 100
Fig. 6.19
Satisfied2.5%
Average22.5%
Dissatisfied67.5%
Highly dissatisfied7.5%
Interpretation
From the above table clear that 67.5% of the respondents are dissatisfied and
7.5% of the respondents are highly dissatisfied with the after sales services of
Bajaj bike. While 22.5% of the respondents are said average and only 2.5% of
the respondents are satisfied.
20) Frequency of Rank
Table 6.20
Rank Bajaj Hero Honda Yamaha
Suzuki TVS
1 32 140 28 0 0 0
2 51 43 105 0 0 0
3 117 17 67 0 0 0
87
4 0 0 0 187 7 7
5 0 0 0 13 167 19
6 0 0 0 0 26 174
Total 200 200 200 200 200 200
Fig. 6.20
Bajaj Hero Honda Yamaha Suzuki TVS0
20
40
60
80
100
120
140
160
180
200
Rank 1Rank 2Rank 3Rank 4Rank 5Rank 6
Interpretation
Out of 200 respondents 32 respondents have given 1st rank, 51 respondents
have given 2nd rank, and 117 respondents have given 3rd rank to Bajaj. While
none of the respondents have given 4th, 5th, and 6th rank to Bajaj.
88
Out of 200 respondents 140 respondents have given 1st rank, 43 respondents
have given 2nd rank, and 17 respondents have given 3rd rank to Hero. While none
of the respondents have given 4th, 5th, and 6th rank to Hero.
Out of 200 respondents 28 respondents have given 1st rank, 105 respondents
have given 2nd rank, and 67 respondents have given 3rd rank to Honda. While
none of the respondents have given 4th, 5th, and 6th rank to Honda.
Out of 200 respondents 187 respondents have given 4 th rank and 13 respondents
have given 5th rank to Yamaha. While none of the respondents have given 1st,
2nd, 3rd and 6th rank to Yamaha.
Out of 200 respondents 7 respondents have given 4 th rank, 167 respondents
have given 5th rank and, 26 respondents have given 6th rank to Suzuki. While
none of the respondents have given 1st, 2nd and, 3rd rank to Suzuki.
Out of 200 respondents 7 respondents have given 4 th rank, 19 respondents have
given 5th rank and, 174 respondents have given 6th rank to TVS. While none of
the respondents have given 1st, 2nd and, 3rd rank to TVS.
21) Frequency of what problem you face while using the vehicle?
Table 6.21
Criteria No. of respondent
Percentage (%)
89
Starting trouble 35 17.5
Mileage problem 14 7
Pickup 24 12
Battery problem 127 63.5
Total 200 100
Fig. 6.21
17.5%
7%
12%63.5%
Starting troubleMileage problemPickupBattery problem
Interpretation
From the above table clear that 63.5% of the respondents are facing battery
problem while using the Bajaj bike. While 17.5% of the respondents are facing
starting trouble, 12% of the respondents are facing pickup problem and, 7% of
the respondents are facing mileage problem while using the Bajaj bike.
22) Frequency of would you recommended Bajaj bikes to your friends or others?
Table 6.22
90
Criteria No. of respondent
Percentage (%)
Yes 170 85
No 30 15
Total 200 100
Fig. 6.22
Yes85%
No15%
Interpretation
From the above table clear that 85% of the respondents have recommended
Bajaj bikes to his friends or others while, 15% of the respondents have not
recommended Bajaj bikes to his friends or others.
Chi-square test
23) Chi-square between customer monthly income and mileage attribute of Bajaj bike
91
H0: There is no association between customer monthly income and mileage
attribute of Bajaj bikes.
H1: There is association between customer monthly income and mileage
attribute of Bajaj bikes.
Table 6.23
Monthly income * Mileage Attribute Cross tabulation
Count
Mileage Attribute
TotalNo Yes
Monthly income Less than 15000 10 65 75
15001-30000 2 86 88
30001-50000 2 35 37
Total 14 186 200
92
Interpretation
The value of Pearson Chi-square is 7.786 and associated significant p-value is
0.02 which is less than the significance level (0.05) so, researcher reject null
hypothesis. Thus, it is inferred that there is association between customer
monthly income and mileage attribute of Bajaj bikes.
93
Table 6.24
Chi-Square Tests
Value df
Asymp. Sig.
(2-sided)
Pearson Chi-Square 7.786a 2 .020
Likelihood Ratio 7.902 2 .019
Linear-by-Linear
Association4.160 1 .041
N of Valid Cases 200
24) Chi-square between customer satisfaction towards price and customer monthly incomeH0: There is no association between customer satisfaction towards price and
customer monthly income.
H1: There is association between customer satisfaction towards price and
customer monthly income.
Table 6.25
Satisfaction towards Price * Monthly income Cross tabulation
Count
Monthly income
Total
Less than
15000
15001-
30000
30001-
50000
Satisfaction
towards
Price
Highly satisfied 1 3 0 4
Satisfied 44 44 26 114
Average 21 32 5 58
Dissatisfied 9 7 4 20
Highly dissatisfied 0 2 2 4
Total 75 88 37 200
Table 6.26
94
Chi-Square Tests
Value df
Asymp. Sig.
(2-sided)
Pearson Chi-Square 12.818a 8 .118
Likelihood Ratio 14.840 8 .062
Linear-by-Linear
Association.020 1 .887
N of Valid Cases 200
InterpretationThe value of Pearson Chi-square is 12.818 and associated significant p-value is
0.118 which is greater than the significance level (0.05) so, researcher fail to
reject null hypothesis. Thus, it is inferred that there is no association between
Customer satisfaction towards price and customer monthly income.
25) Chi-square between customer satisfaction towards comfortable ride and customer occupation
95
H0: There is no association between customer satisfaction towards comfortable
ride and customer occupation.
H1: There is association between customer satisfaction towards comfortable ride
and customer occupation.
Table 6.27
Satisfaction towards Comfortable ride * Occupation Cross tabulation
Count
Occupation
TotalBusinessman Salaried Retired Student Professional
Satisfaction
towards
Comfortable
ride
Highly
satisfied6 9 0 8 0 23
Satisfied 24 31 0 19 0 74
Average 31 20 1 33 1 86
Dissatisfied 6 5 0 0 0 11
Highly
dissatisfied1 4 0 1 0 6
Total 68 69 1 61 1 200
96
Table 6.28Chi-Square Tests
Value df
Asymp. Sig.
(2-sided)
Pearson Chi-Square 17.960a 16 .326
Likelihood Ratio 21.860 16 .148
Linear-by-Linear
Association.413 1 .521
N of Valid Cases 200
InterpretationThe value of Pearson Chi-square is 17.960 and associated significant p-value is
0.326 which is greater than the significance level (0.05) so, researcher fail to
reject null hypothesis. Thus, it is inferred that there is no association between
customer satisfaction towards comfortable ride and customer occupation.
97
26) Chi-square between customer satisfaction towards Look & style and customer ageH0: There is no association between customer satisfaction towards look & style
and customer age.
H1: There is association between customer satisfaction towards look & style and
customer age.
Table 6.29
Satisfaction towards Look & style * Age(in Years) Cross tabulation
Count
Age(in Years)
Total18-30 31-45 46-60
Satisfaction towards
Look & style
Highly satisfied 9 2 0 11
Satisfied 45 28 1 74
Average 42 47 4 93
Dissatisfied 7 8 1 16
Highly
dissatisfied0 5 1 6
Total 103 90 7 200
98
Table 6.30
Chi-Square Tests
Value Df
Asymp. Sig.
(2-sided)
Pearson Chi-Square 17.344a 8 .027
Likelihood Ratio 19.424 8 .013
Linear-by-Linear
Association14.845 1 .000
N of Valid Cases 200
InterpretationThe value of Pearson Chi-square is 17.344 and associated significant p-value is
0.027 which is less than the significance level (0.05) so, researcher reject null
hypothesis. Thus, it is inferred that there is association between customer
satisfaction towards look & style and customer age.
99
27)Chi-square between customer satisfaction towards brand image and customer occupationH0: There is no association between customer satisfaction towards brand image
and customer occupation.
H1: There is association between customer satisfaction towards brand image
and customer occupation.
Table 6.31
Satisfaction towards Brand image * Occupation Cross tabulation
Count
Occupation
TotalBusinessman Salaried Retired Student Professional
Satisfaction
towards
Brand image
Highly
satisfied6 2 0 3 0 11
Satisfied 18 29 1 30 1 79
Average 36 30 0 24 0 90
Dissatisfied 4 7 0 2 0 13
Highly
dissatisfied4 1 0 2 0 7
Total 68 69 1 61 1 200
100
Table 6.32
Chi-Square Tests
Value dfAsymp. Sig.
(2-sided)
Pearson Chi-Square 15.583a 16 .482Likelihood Ratio 16.511 16 .418Linear-by-Linear Association
2.874 1 .090
N of Valid Cases 200
Interpretation
The value of Pearson Chi-square is 15.583 and associated significant p-value is
0.482 which is greater than the significance level (0.05) so, researcher fail to
reject null hypothesis. Thus, it is inferred that there is no association between
customer satisfaction towards brand image and customer occupation.
101
28)Chi-square between customer education and maintenance cost attribute of Bajaj bike
H0: There is no association between customer education and maintenance cost
attribute of Bajaj bike.
H1: There is association between customer education and maintenance cost
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ANNEXURE
111
Questionnaire
I, Ajay Savaliya, am currently pursuing MBA from S. R. Luthra Institute of
Management affiliated to Gujarat Technological University, Surat. As a part of my
curriculum I am conducting a survey on “A study on Customer Preference and Satisfaction towards Bajaj Bikes”. I request you to kindly spare few minutes of
your very demanding schedule to fill up this questionnaire. I assure you that the
views given by you will be kept strictly confidential and will be used for academic
purpose only.
1) How did you come to know about Bajaj bike?
[ ] Friends [ ] Relatives
[ ] Media [ ] Others______________
2) Which model did you buy?
[ ] CT 100 [ ] Pulsar 135LS
[ ] Platina 100 [ ] Pulsar 150
[ ] Discover 100 [ ] Pulsar 150AS
[ ] Discover 100M [ ] Pulsar 180
[ ] Discover 125M [ ] Pulsar 200NS
[ ] Discover 150S [ ] Pulsar AS200
[ ] Discover 150F [ ] Pulsar 220F
[ ] Avenger 220 [ ] Pulsar RS200
112
3) Which is/are the most attractive attribute for purchasing Bajaj bike as per
your preference? (Multiple tick allowed)
[ ] Price [ ] Colors
[ ] Mileage [ ] Maintenance cost
[ ] Stylish look [ ] Brand image
[ ] Pickup [ ] Comfortable ride
[ ] Engine capacity [ ] Others_______________
4) What mileage is your bike giving?
[ ] 60Km/Ltr and above
[ ] 50-60Km/Ltr
[ ] 40-50Km/Ltr
[ ] Below 40Km/Ltr
5) While comparing with other bike, the model of the Bajaj bike is?[ ] Good[ ] Need to improve[ ] Can’t say
6) What is your satisfaction level for the following attribute?(1=Highly satisfied, 2=Satisfied, 3=Average, 4=Dissatisfied, 5=Highly dissatisfied)
Attribute 1 2 3 4 5
Price
Mileage
Look & Style
Pickup
Engine capacity
Colors
113
Maintenance cost
Brand image
Resale value
Comfortable ride
After sales services
7) Rank the company as per your preference.(Rank 1 higher to Rank 6 lower)