PROJECT REPORT ON COMPARATIVE STUDY OF HERO HONDA VS BAJAJ SUBMITTED TO : IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION (H.N.B. GARHWAL UNIVERSITY) SUBMITTED TO: SUBMITTED BY: MR.HIMANSHU SIR ABHISHEK KUMAR SINGH FACULTY–MANAGEMENT STUDIES BBA – VTH SEM.
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PROJECT REPORT
ON
COMPARATIVE STUDY OF HERO HONDA VS BAJAJ
SUBMITTED TO :IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE
AWARD THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION (H.N.B. GARHWAL UNIVERSITY)
SUBMITTED TO: SUBMITTED BY:
MR.HIMANSHU SIR ABHISHEK KUMAR SINGH
FACULTY–MANAGEMENT STUDIES BBA – VTH SEM.
ALPINE INSTITUTE MANAGEMENT & TECNOLOGY, DEHRADUN
BONAFIDE CERTIFICATE
This is to certify that MR. MOHD. UMER is a bonafied student of ALPINE INSTITUTE OF MANAGEMENT & TECHNOLOGY, registered for BBA PROGRAMME for the session 2007-2010. He has under taken winter training at “COMPARATIVE STUDY ON HERO HONDA VS BAJAJ” practical training is a part of BBA program.
DECLARATION
I, Mohd. Umer student of ALPINE INSTITUTE OF MANAGEMENT& TECHNOLOGY,
DEHRADUN Batch 2007-10, hereby declares that this winter training project report
work entitled “COMPARATIVE STUDY ON HERO HONDA VS BAJAJ ” is the out come of
my own research and prepared by me and the same has not been submitted to any
other university or institute for the award of any degree or diploma.
Place: Dehradun [MOHD. UMER]
CONTENTSACKNOWLEDGEMENT
1. Introduction
2. Changing Trend
3. Automobiles as part of life
4. Indian Perspective
5. Objectives of the study
6. Research Methodology
7. Significance and scope of the study
8. Limitations
9. Bajaj Auto Limited – Profile
10. Hero Group – Company Profile
11. Mission
12. Product Gallery
13. Changing Living Standard of People in India
14. Findings – Graphical Representations
15. Conclusion
16. Recommendations
Bibliography
ACKNOWLEDGEMENT
I would be failing in my duty if I do not thank all those
persons who have helped me in successful completion of
this Project Report. Grateful appreciation is offered to all
of them on my behalf. In particular, I acknowledge the
help and encouragement received from my Project
Guide, MR. HIMANSHU SIR who in spite of her busy
schedule dedicated me with him invaluable suggestions
from time to time and helped me in successful
completion of work and for providing me the wonderful
and stimulating environment to work in.
I am sincerely indebted to the Showroom incharge of
Hero Honda and Bajaj Auto Ltd. and also to all my
faculty members. I express my deep gratitude to them
for their kind and unending guidance, right with the
basic information regarding the preparation of project
report.
MOHD. UMER
INTRODUCTION
India has the largest number of two wheelers in the world
with 41.6 million vehicles. India has a mix of 30 percent
automobiles and 70 percent two wheelers in the country.
India was the second largest two wheeler manufacturer in
the world starting in the 1950’s with the birth of Automobile
Products of India (API) that manufactured scooters. API
manufactured the Lambrettas but, another company, Bajaj
Auto Ltd. surpassed API and remained through the turn of
the century from its association with Piaggio of Italy
(manufacturer of Vespa). The license raj that existed
between the1940s to1980s in India, did not allow foreign
companies to enter the market and imports were tightly
controlled. This regulatory maze, before the economic
liberalization, made business easier for local players to have
a seller’s market. Customers in India were forced to wait 12
years to buy a scooter from Bajaj . The CEO of Bajaj
commented that he did not need a marketing department,
only a dispatch department. By the year 1990, Bajaj had a
waiting list that was twenty-six times its annual output for
scooters. The motorcycle segment had the same long wait
times with three manufacturers; Royal Enfield, Ideal Jawa,
and Escorts. Royal Enfield made a 350cc Bullet with the only
fourstroke engine at that time and took the higher end of
the market but, there was little competition for their
customers. Ideal Jawa and Escorts took the middle and lower
end of the market respectively. In the mid-1980s, the Indian
government regulations changed and permitted foreign
companies to enter the Indian market through minority joint
ventures. The two-wheeler market changed with four Indo-
Japanese joint ventures: Hero Honda, TVS Suzuki, Bajaj
Kawasaki and Kinetic Honda. The entry of these foreign
companies changed the Indian market dynamics from the
supply side to the demand side. With a larger selection of
two wheelers on the Indian market, consumers started to
gain influence over the products they bought and raised
higher customer expectations. The industry produced more
models, styling options, prices, and different fuel
efficiencies. The foreign companies new technologies helped
make the products more reliable and with better quality.
Indian companies had to change to keep up with their global
counterparts.
CHANGING TREND
As the Indian economy developing day by day purchasing
power is also increasing day by day .This has been created a
great change in the market and in consumer behaviour also
.If talk about the market of Automobiles
Industry ,purchasing power and development in economy
has brought a revolution in the market . Due to liberalization
competition is also increasing day by day. There are lots of
MNC’s or foreign giants and domestic brands are now
present in the Aotomobile market of India. This has been
bought a great competition in the market. Because now
consumers have lots of option in brands of motorbikes, like
Hero Honda, TVS, Bajaj, Suzuki, Kawasaki etc
So on the basis of above we can say that today it is very
much necessary for the companies that they have to
maintain their quality and quantity in the market and must
have do careful analysis of the changing behavior of the
consumer .If we talk about the motorbikes market Hero
Honda is the biggest brand of motorbikes among other
brands available in the market. If we see some years back
then we find that Hero Honda was dominated in the
motorbikes market, we can say Hero Honda was having the
monopoly in the motorbikes market, But now Hero Honda is
aware ,what is the liking and disliking of consumer of
motorbikes, this is the main motive of my study because
now situations of motorbikes market is totally change.
Today companies are focusing on customers delight as they
know that to retain their customers, only satisfaction is not
enough and they know that they have to give bit extra over
others.
AUTOMOBILES AS PART OF LIFE
Motorcycle travel is becoming more popular in India. A major
advantage of traveling by motorcycle is that you can travel
at your own pace, stopping when you want and where you
want. You can travel to small villages and stop for a picnic in
the middle of nowhere.
A good rule is to never drive at night unless it is essential.
Better to stop a few hours early then to risk the dangers of
night driving in India.
Automobiles have become an indispensable part of our lives,
an extension of the human body that provides us faster,
cheaper and more convenient mobility every passing day.
Behind this betterment go the efforts of those in the
industry, in the form of improvement through technological
research.
What actually lie behind this betterment of the automobiles
are the opinions, requirements, likes and dislikes of those
who use these vehicles.
These wheeled machines affect our lives in ways more than
one. Numerous surveys and research are conducted
throughout the world every now and then to reveal one or
the other aspect of automobiles, be it about the pollution
caused due to vehicle population in cities, or rising motor
accidents and causes, vehicular technology, alternative
medicine and so on.
INDIAN PERSPECTIVE
The feeling of freedom and being one with the Nature comes
only from riding a two wheeler. Indians prefer the two
wheelers because of their small manageable size, low
maintenance, pricing and easy loan repayments. Indian
streets are full of people of all age groups riding a two
wheeler. Motorized two wheelers are seen as a symbol of
status by the populace. Thus, in India, we would see swanky
four wheels jostling with our ever reliable and sturdy steed:
the two wheeler.
OBJECTIVE OF THE STUDY
1. To know the market share of Bajaj & Hero Honda.
2. To know the perception of customers regarding bikes.
3. To determine the customers satisfaction regarding
bikes.
4. To determine the factors influencing the choice of
customers regarding bikes.
5. To study the customers brand preference.
6. To study the features and other facilities provided by
both
brands.
7. To study the sales promotion activities of both brand
to
increase the sales of two wheeler.
SIGNIFICANCE AND SCOPE OF THE STUDY
Today when consumers are more educated and more capable to
purchase the luxuries for themselves ,and. competition is very
high in the market, then if any company wants to stand in the
market it is mandatory to analyse the market and consumers
time to time. Other wise It is not easy for the companies to cope
up with the challenges of the market . In my study I tried to
analyse the preference of consumers which reflect the
consumers behaviour, because consumer's behaviour is not
static and continuously changes time to time, along with this I
tried to analyse the market trend also. My study is confined to
the Dehra Dun city only if this study have been carried out in
large scale then further descriptive studies of this topic would
definitely help to the companies in making their marketing
strategies and policies
LIMITATIONS
My market research also suffered from several limitations
during the survey. Following were the limitations which
limited my study :
The survey was only confined to Dehradun city only.
Unwillingness on the part of the respondents due to which
it became a tough job to get the questionnaires filled.
Biased information by the dealers as they did not
disclosed the actual facts.
Few respondents were not confident while responding to
some of the questions; specifically in concern with the
services as some of the respondents said they don’t know
about the services provided by the company but still they
are using it.
Time limit was one of the major limiting factors of the
study; the survey was very much time consuming as it
was person-to person interview.
While doing the survey many consumers and dealers
were not cooperative. They were not ready to devote
some time for filling the questionnaire.
RESEARCH METHODOLOGY
RESEARCH PROJECT DEFINED
A study of Motorbikes used by the consumer in Dehradun
and to find out the Consumer’s Preference for Motorbikes in
Dehradun city with special reference to Bajaj and Hero
Honda.
RESEARCH
Research in common parlance refers to a search for
knowledge. One can also define research as a scientific
investigation. The advanced Learner’s dictionary of current
English lays down the meaning of research as “a careful
investigation or inquiry specially though search for new facts
in any branch of knowledge.” Some people consider
research as a movement, movements from unknown to the
known. Research is thus an original contribution to the
existing stock of knowledge making for its advancement.
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the
research problem. It may be understood as a science of
studying how research is done scientifically. The most
desirable approach with regards to the selection of the
research methodology depends on the nature of particular
problem, time and resources available along with the desire
level of accuracy. Much depends upon the skill and aptitude
of the researcher. This project has been undertaken as a
research work and the findings are compiled in the form of
Research Report.
PROBLEM IDENTIFICATION
The research is being conducted to find out the consumer’s
preference and satisfaction level towards different
Motorbikes available in Dehradun city. It is also intended to
find out the factors being considered important by the
customers at the time of purchasing a new motorbikes and it
is also done to find out the consumer’s preference among
the motorbikes available in Dehradun city.
RESEARCH DESIGN
The research design specifies the method for data collection
and data analysis. The research design that I selected for
my research work was descriptive. Descriptive research
includes surveys and fact-finding enquiries of different kinds.
SAMPLE DESIGN
The researcher must decide the way of selecting a sample
or what is popularly known as sample design. In other words
sample design is a definite plan determined before any data
or actually collected for obtaining a sample from a given
population. Sample design is determined before data are
collected. There are many sample designs from which a
researcher can choose. Researcher must select/prepare a
sample design that should be reliable and appropriate for his
research study.
Sampling Plan
To conduct a research, it is important to design proper
sampling plan which includes the following decisions:
Sampling Unit
This takes into account target population that will be
sampled in other words, who are the people to be
surveyed ?
In undertaken research work sampling units are the
respondents belonging to different socio-economic
backgrounds of Dehradun.
Sample area
At which level, one collects the information that is known as
a sample area. There were two type of areas which were
considered, namely
o Consumers of different brands of motorbikes
o Different dealers of motorbikes in Dehradun city.
Sampling Method
I did my sampling by using the convenience sampling
method.
Sample size
This takes into account the number of respondents selected
from the universe those who should be surveyed i.e.,
number of persons who were involved under the collection
are called sample size.
For Consumers :
Area Number of Consumers
Dehradun 90
For Dealers :Area Number of Dealers
Dehradun 10
BAJAJ AUTO LIMITED
Bajaj Auto limited is one of the largest two wheeler
manufacturing company in India apart from producing two
wheelers they also manufacture three wheelers. The
company had started way back in 1945. Initially it used to
import the two wheelers from outside, but from 1959 it
started manufacturing of two wheelers in the country. By
the year 1970 Bajaj Auto had rolled out their 100,000th
vehicle. Bajaj scooters and motor cycles have become an
integral part of the Indian milieu and over the years have
come to represent the aspirations of modern India. Bajaj
Auto also has a technical tie up with Kawasaki heavy
industries of Japan to produce the latest motorcycles in India
which are of world class quality. The Bajaj Kawasaki
eliminator has emerged straight out of the drawing board of
Kawasaki heavy industries. The core brand values of Bajaj
Auto limited includes Learning, Innovation, Perfection, Speed
and Transparency. Bajaj Auto has three manufacturing units
in the country at Akurdi, Waluj and Chakan in Maharashtra,
western India, which produced 2,314,787 vehicles in 2005-
06. The sales are backed by a network of after sales service
and maintenance work shops all over the country. Bajaj Auto
has products which cater to every segment of the Indian two
wheeler market Bajaj CT 100 Dlx offers a great value for
money at the entry level. Similarly Bajaj Discover 125 offers
the consumer a great performance without making a big
hole in the pocket.
The Bajaj Group is amongst the top 10 business houses in
India. Its footprint stretches over a wide range of industries,
spanning automobiles (two-wheelers and three-wheelers),
home appliances, lighting, iron and steel, insurance, travel
and finance. The group's flagship company, Bajaj Auto, is
ranked as the world's fourth largest two- and three- wheeler
manufacturer and the Bajaj brand is well-known across
several countries in Latin America, Africa, Middle East, South
and South East Asia. Founded in 1926, at the height of
India's movement for independence from the British, the
group has an illustrious history. The integrity, dedication,
resourcefulness and determination to succeed which are
characteristic of the group today, are often traced back to
its birth during those days of relentless devotion to a
common cause. Jamnalal Bajaj, founder of the group, was a
close confidant and disciple of Mahatma Gandhi. In fact,
Gandhiji had adopted him as his son. This close relationship
and his deep involvement in the independence movement
did not leave Jamnalal Bajaj with much time to spend on his
newly launched business venture.
His son, Kamalnayan Bajaj, then 27, took over the reigns of
business in 1942. He too was close to Gandhiji and it was
only after Independence in 1947, that he was able to give
his full attention to the business. Kamalnayan Bajaj not only
consolidated the group, but also diversified into various
manufacturing activities. The present Chairman of the
group, Rahul Bajaj, took charge of the business in 1965.
Under his leadership, the turnover of the Bajaj Auto the
flagship company has gone up from Rs.72 million to
Rs.46.16 billion (USD 936 million), its product portfolio has
expanded and the brand has found a global market. He is
India's one of the most distinguished business leaders and
internationally respected for his business acumen and
entrepreneurial spirit.
New Image
The company, over the last decade has successfully
changed its image from a scooter manufacturer to a two
wheeler manufacturer, product range ranging from
Scooterettes to Scooters to Motorcycle. Its real growth in
numbers has come in the last 4 years after successful
introduction of a few models in the motorcycle segment. The
company is headed by Rahul Bajaj who is worth more than
US$1.5 billion.
India has the largest number of two wheelers in the world
with 41.6 million vehicles. India has a mix of 30 percent
automobiles and 70 percent two wheelers in the country.
India was the second largest two wheeler manufacturer in
the world starting in the 1950’s with the birth of Automobile
Products of India (API) that manufactured scooters. API
manufactured the Lambrettas but, another company, Bajaj
Auto Ltd. surpassed API and remained through the turn of
the century from its association with Piaggio of Italy
(manufacturer of Vespa).
The license raj that existed between the1940s to1980s in
India, did not allow foreign companies to enter the market
and imports were tightly controlled. This regulatory maze,
before the economic liberalization, made business easier for
local players to have a seller’s market. Customers in India
were forced to wait 12 years to buy a scooter from Bajaj.
The CEO of Bajaj commented that he did not need a
marketing department, only a dispatch department. By the
year 1990, Bajaj had a waiting list that was twenty-six times
its annual output for scooters. The motorcycle segment had
the same long wait times with three manufacturers; Royal
Enfield, Ideal Jawa, and Escorts. Royal Enfield made a 350cc
Bullet with the only fourstroke engine at that time and took
the higher end of the market but, there was little
competition for their customers. Ideal Jawa and Escorts took
the middle and lower end of the market respectively. In the
mid-1980s, the Indian government regulations changed and
permitted foreign companies to enter the Indian market
through minority joint ventures. The two-wheeler market
changed with four Indo-Japanese joint ventures: Hero Honda,
TVS Suzuki, Bajaj Kawasaki and Kinetic Honda. The entry of
these foreign companies changed the Indian market
dynamics from the supply side to the demand side. With a
larger selection of twowheelers on the Indian market,
consumers started to gain influence over the products they
bought and raised higher customer expectations. The
industry produced more models, styling options, prices, and
different fuel efficiencies. The foreign companies new
technologies helped make the products more reliable and
with better quality. Indian companies had to change to keep
up with their global counterparts.
Bajaj Pulsar 150cc DTS-i
Pulsar has been major hit in the market; it comes in four