EXECUTIVE
A Dissertation Project Report
On
CONSUMER BUYING BEHAVIOUR OF SUZUKI TWO WHEELER Submitted in
partial fulfillment for the award of degree of MASTER OF BUSINESS
AD MINISTRATION(MBA)Under the Guidance of Submitted By Mr. Dr.
Zahid Raza Khan Md Tabrez Waris Khan Asst. Professor 2nd year (4th
sem )
1300122049
Department of Business Management
Faculty of Management & Research
INTEGRAL UNIVERSITY
DASAULI, KURSI ROAD ,LUCKNOW
Faculty of Management & Research
Integral University
Dasauli,Kursi Road Lucknow-26
CERTIFICATE
This is to certify Md Tabrez Waris Khan, a student of MBA 2nd
year has completed the dissertation project report on under my
guidance and supervision.
The dissertation work of the student is found to be satisfactory
for submission for the award of degree of Master of Business
Administration. I wish him all the best for his future
endeavors.
Mr. Dr. Zahid Raza Khan ( Asst. Professor) Faculty of Management
and Research
Integral University , Lucknow
ACKNOWLEDGEMENT
The Dissertation project of such magnitude cannot be
accomplished without the assistance and co-operation of several
people. Exchange of idea generates a new object to work in a better
way. So, whenever a person is helped and co-operation by others.
His heart is bound to pay gratitude and is not merely formalities
but an expression of deep sense of gratitude and cumulative
appreciation.I would like to express my special thanks to Mr.
Dr.Zahid Raza, Assistant Professor, Department of Business
Management, Integral University ,for his sterling efforts, amicable
assistance, and inspiration in all phases of the project work
toward the path of completion.
My acknowledgement will be incomplete if I do not mention my
parents So lastly I express my abysmal adoration & heartfelt
devotion to my beloved parents for their countless blessings,
unmatchable love, affection & incessant inspiration that has
given me strength to fight all odds & shaped my life, career
till today. Md Tabrez Waris Khan 2nd year (4th sem )
1300122049
Preface
In todays competitive world the practical study forms an
important part in each and every professional course. The MBA is a
course in which the theoretical knowledge is backed by the
practical study. That study is in the form of project. The Grand
Project is one of the important parts of the curriculum. And each
and every student has to work for the project.
The Grand project enables the students to know more about the
application of theoretical knowledge. The current situation of the
market is made known to the students when they undertake the
project. The project gives better insides into the application part
of the theory. The companies in an industry and their operations
can be better known by the students when they analyze the data.
This project is on the survey on satisfaction level of customer
using Suzuki Access 125, Services of Suzuki dealer. We have
analyzed the industry very deeply and carefully project.
Sr.
No.CONTENTPage No.
1EXECUTIVE SUMMARY8
2ABOUT THE AUTOMOBILE INDUSTRY10
BITRH OF AUTOMOBILE IN THE WORLD11
INDIAN TWO WHEELER HISTORY15
3ABOUT THE SUZUKI MOTORCYCLES 26
SUZUKI MOTORCYCLES GLOBAL HISTORY27
SUZUKI MOTORCYCLES INDIA HISTORY32
COMPANY PROFILE34
MISSION OF SUZUKI35
4PRODUCT OF SUZUKI MOTORCYCLES42
5SHIVALIK SUZUKI (AUTHO, DEALEAR)53
6MAJOR COMPETITORS56
7CUSTOMER SATISFACTION62
8OBJECTIVE OF THE STUDY69
9SCOPE OF THE STUDY70
10RESEARCH METHODOLOGY71
11DATA ANALYSIS & INTERPRETATION77
12FINDINGS97
13CUSTOMER REVIEW98
14SWOT ANALYSIS99
15LIMITATION100
16RECOMMEDATIONS101
17CONCLUSION103
18BIBLOGRAPHY104
20APPENDIX (QUESTIONNAIRE)105
INDEX
EXECUTIVE SUMMARYSatisfaction is a persons feeling of pleasure
or disappointment resulting from a comparing perceived performance
in relation to his or her expectation. If the performance falls
short of expectation, the consumer is dissatisfied. If the
performance matches the expectations, he consumer is satisfied. If
the performance exceeds expectation, the customer is highly
satisfied or delighted.The study widely concentrates on the level
of satisfaction amongst customers for which I did Exploratory
Research to check the satisfaction level amongst the customers of
Suzuki Access 125. This research was conducted in the Ahmedabad
city. This research was done during the months of April and May.
Hence the data displayed has been collected during the before
mentioned period.
To meet the research objectives, following activities have been
performed.
An extensive search of relevant literature from news articles,
internet, books. This step guided the development of the methods
and instruments for collecting data.
Designing the questionnaire.
Survey has been carried away by, one-on-one interviews. The
Survey
included open-ended questions, dichotomous questions, and
multiple- choice question. To know the image of product in the mind
of consumer.
To compare the level of satisfaction before purchasing and after
purchasing the Scooter.
To find out where people want to see the promotion schemes
To find out suitable location preferred by consumer
To know the most popular media for advertisement
To check the loyalty of the consumer towards the Suzuki
brand
To know the most motivating factor for purchasing the bike
To know the preferable price from the customer
During this research it was found that Suzukis launched Access
125 has increased its market share by attracting new customers and
helped to retain its old customers.
SMPIL, a company that is known for combining technology, quality
and performance in their two wheeler, had taken an initiative to
introduce some of their performance driven two wheeler in India
this year. Suzuki has reported a growth of 47.66% in sales in the
month of December 09 at 14806 units compared to 9986 units same
month last year. This increase of sales is attributed to the
tremendous response from the new product GS150R and ACCESS 125.
Suzuki would have to constantly innovate and come up with new
products to maintain its dominance in the segment.
BIRTH OF AUTOMOBILES IN THE WORLD
The History of the automobile actually began about 4,000 years
ago when the first wheel was used for transportation in India.
Several Italians recorded designs for wind-driven vehicles. The
first was Guido da Vigevano in 1335. It was a windmill-type drive
to gears and thus to wheels. Vaturio designed a similar vehicle
that was also never built. Later Leonardo da Vinci designed
clockwork-driven tricycle with tiller steering and a differential
mechanism between the rear wheels.
In the early 15th century, the Portuguese arrived in China and
the interaction of two cultures led to a variety of new
technologies, including the creation of a wheel that turned under
its own power. By the 1600s, small steam-powered engine models were
developed, but it was another century before a full-sized
engine-powered vehicle was created.
A Catholic priest named Father Ferdinan Verbiest is credited to
have built a steam-powered vehicle for the Chinese Emperor Chien
Lung in about 1678. There is no information about the vehicle, only
the event. Since James Watt didnt invent the steam engine until
1705, we can guess that this was possibly a model vehicle powered
by a mechanism like Heros steam engine-a-spinning wheel with jets
on the periphery.
Although by the mid-15th century the idea of a self-propelled
vehicle had been put into practice with the development of
experimental vehicles powered by means of springs, clockworks, and
the wind,
Nicolas-Joseph Cugnot of France is considered to have built the
first true automobile in 1769. Designed by Cugnot and constructed
by M.Brezin, it is also the first vehicle to move under its own
power for which there is a record. Cugnots three-wheeled
steam-powered vehicle carried four persons and was meant to move
artillery pieces. It had a top speed of a little more than 3.2 km/h
(2 mph) and had to stop every 20 minutes to build up a fresh
steam.
Evans was the first American who obtained a patent for a
self-propelled carriage. He, in fact, attempted to create a
two-in-one combination of a steam wagon and a flat-bottomed boat,
which didnt receive any attention in those days. During the 1830s,
the steam vehicle had made great advances. But stiff competition
from railway companies and crude legislations in Britain forced the
poor steam vehicle gradually out of use on roads.
Carl Benz and Gottlieb Daimler, both Germans, share the credit
of changing the transport habits of the world, for their efforts
laid the foundation of the great motor industry, as we know it
today. First, Carl Benz invented the petrol engine in 1885 and a
year later Daimler made a car driven by motor of his own design and
the rest is history.Daimlers engine proved to be a great success
mainly because of its less weight that could deliver 1000rpm and
needed only very small and light vehicles to carry them.
France too had joined the motoring scenario by 1890 when two
Frenchmen Panhard and Levassor began producing vehicles powered by
Daimler engine, and Daimler himself, possessed by the automobile
spirit, went on adding new features to his engine. He built the
first V-Twin engine with a glowing platinum tube to explode the
cylinder gas-the very earliest form of sparking plug.
Charles Duryea built a motor carriage in America with petrol
engine in 1892, followed by Elwood Haynes in 1894, thus paving the
way for motorcars in that country.
For many years after the introduction of automobiles, three
kinds of power sources were in common use: steam engines, gasoline
or petrol engines, and electric motors. In 1900, over 2,300
automobiles were registered in New York, Boston, Massachusetts, and
Chicago. Of these, 1,170 were steam cars, 800 were electric cars,
and only 400 were gasoline cars.
In ten years from the invention of the petrol engine, the
motorcar had evolved itself into amazing designs and shapes. By
1898, there were 50 automobile-manufacturing companies in the
United States, a number that rose to 241 by 1908. In that year,
Henry Ford revolutionized the manufacture of automobiles with his
assembly-line style of production and brought out the Model T, a
car that was inexpensive, versatile, and easy to maintain.
Herbert Austin and William Morris, two different carmakers,
introduced mass production methods of assembly in the UK, thus
paving the way for a revolution in the automobile industry. Austin
Seven was the worlds first practical four-seater baby car which
brought the pleasures of motoring to many thousands of people who
could not buy a larger, more expensive car. Even the bull-nose
Morris with front mounted engine became the well-loved model and
one of the most popular cars in the 1920s.
Automobile manufacturers in the 1930s and 1940s refined and
improved on the principles of Ford and other pioneers. Cars were
generally large, and many were still extremely expensive and
luxurious; many of the most collectible cars date from this time.
The increased affluence of the United States after World War II led
to the development of large, petrol-consuming vehicles, while most
companies in Europe made smaller, more fuel-efficient cars.
INDIAN TWO WHEELER HISTORY
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. 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. Until 1958, API and
Enfield were the sole producers.
In 1948, Bajaj Auto began trading in imported Vespa scooters and
three-wheelers. Finally, in 1960, it set up a shop to manufacture
them in technical collaboration with Piaggio of Italy. The
agreement expired in 1971. 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. It was a complete seller market with the
waiting period for getting a scooter from Bajaj Auto being as high
as 12 years. The motorcycles segment was no different, with only
three manufacturers viz Enfield, Ideal Jawa and Escorts. While
Enfield bullet was a four-stroke bike, Jawa and the Rajdoot were
two-stroke bikes. Enfield 350cc bikes and Escorts 175cc bike
initially dominated the motorcycle segment. The two-wheeler market
was opened to foreign competition in the mid-80s. And then market
leaders - Escorts and Enfield - were caught unaware by the
onslaught of the 100cc bikes of the four Indo-Japanese joint
ventures. With the availability of fuel-efficient low power bikes,
demand swelled, resulting in Hero Honda - then the only producer of
four stroke bikes (100cc category), gaining a top slot.
The first Japanese motorcycles were introduced in the early
eighties. TVS Suzuki and Hero Honda brought in the first two-stroke
and four-stroke engine motorcycles respectively. These two players
initially started with assembly of CKD kits, and later on
progressed to indigenous manufacturing. In the 90s the major growth
for motorcycle segment was brought in by Japanese motorcycles,
which grew at a rate of nearly 25% CAGR in the last five years. The
industry had a smooth ride in the 50s, 60s and 70s when the
Government prohibited new entries and strictly controlled capacity
expansion. The industry saw a sudden growth in the 80s. It was in
the year 1954 that the Indian government ordered for total number
of 800 motorcycles to man the Pakistani borders. In came the
Bullets which were initially launched in England as a 350cc bike
and it was upgraded to 500cc a year or so later. These bikes have
remained unaltered, barring some cosmetic changes which have
undergone over the years. Thus one can say without much of a doubt
that the 1955 Bullet was one of the initial hits of the Indian
two-wheeler industry and till today it continues to be a darling of
the motorcycle enthusiasts.
Enfield Bullet had a close competition with another sturdy bike
named Rajdoot; as the bike was strong enough to handle the rough
Indian roads. The company had roped in Indian Heman Dharmendra for
the promotion of the bike. With more than 1.6 million vehicles on
the road the Rajdoot motorcycle was one of the initial hits of the
earlier years of two-wheeler history in the country.
When heavy motorcycles were the order of the day, a relatively
lighter bike had caught on the imagination of the Indian two
wheeler user. Ind- Suzuki bike launched by the then TVS Suzuki
group was an instant hit; however the bike could not sustain it's
initial success due to the high import content in the vehicle and
less of localization.
In scooters Bajaj Chetak has been hugely responsible for adding
momentum to the transport system of the country, till today it
remains one of the most successful brands to have come out of the
Bajaj stable. The scooter is named after the horse of legendary
Rana Pratap Singh. These sets of two wheels have become a part of
the Indian milieu and are often considered a representative of the
Indian middle class aspiration. Very few two-wheelers have been
able to emulate the success, which Bajaj Chetak has achieved over
the years.
Similarly LML Motors enjoyed a reasonable success with the
launch of LML Select which came with new age technology and
improved performance.
The industry witnessed a steady growth of 14% leading to a peak
volume of 1.9mn vehicles in 1990. The entry of Kinetic Honda in
mid-eighties withIn 1990, the entire automobile industry saw a
drastic fall in demand. This resulted in a decline of 15% in 1991
and 8% in 1992, resulting in a production loss of 0.4mn vehicles.
Barring Hero Honda, all the major producers suffered from recession
in FY93 and FY94. Hero Honda showed a marginal decline in 1992. The
reasons for recession in the sector were the incessant rise in fuel
prices, high input costs and reduced purchasing power due to
significant rise in general price level and credit crunch in
consumer financing. Factors like increased production in 1992, due
to new entrants coupled with the recession in the industry resulted
in company either reporting losses or a fall in profits.
India is one of the very few countries manufacturing
three-wheelers in the world. It is the world's largest manufacturer
and seller of three-wheelers. Bajaj Auto commands a monopoly in the
domestic market with a market share of above 80%, the rest is
shared by Bajaj Tempo, Greaves Ltd and Scooters India. a
variometric scooter helped in providing ease of use to the scooter
owners. SEGMENTATION OF TWO WHEELER:A Two Wheeler Sector
Sub-Segmenting in the three Segments
.
Motorcycle
Scooter
Mopeds
Trend in 2W Volumes by Category:
Trend in 2W Sales Volumes, Domestic and Exports:
Domestic Market Share for 2009-10
Passenger Vehicles15.86
Commercial Vehicles4.32
Three Wheelers3.58
Two Wheelers76.23
GROWTH PROSPECTS AND KEY DRIVERS OF INDIAN TWO WHEELER
INDUSTRY:The growth witnessed by the Indian two wheeler industry
indicates the growing demand for low cost personal transportation
solutions amongst the 300 million Indian middle class consumers.
Despite this spectacular growth rate, the two-wheeler penetration
(number of two wheelers per 1000 inhabitants) in India remains
lower than other Asian countries. This fact provides an opportunity
for continued growth in the market. India has the lowest
Penetration of two wheelers as compared to countries like Taiwan,
Thailand, Malaysia, Vietnam, Indonesia and China. In the present
scenario, growth in the two wheelers Industry will be driven by
several factorsRise in Indias Young Working Population:With the
rising levels of per capita income of people, the Indian two
wheeler market offers a huge potential for Growth. This growth is
relevant in the light of the fact that 70 per cent of Indias
population is below the age of 35 Years and 150 million people will
be added to the working Population in the next five years. The
number of women in the urban work force is also increasing; this
will lead to the Growth of gearless scooters.
\
Rise of Indias Rural Economy and Growth in Middle Income
Households:The growth prospects of the Indian rural economy offer a
significant opportunity for the motorcycle industry in India. The
penetration of motorcycles amongst rural households with income
levels greater than US$ 2,200 per annum has already increased to
over 50 per cent. The current target Segment for two wheelers,
i.e., households belonging to the Income category of US$
2,20012,000 is expected to grow at a CAGR of 10 per cent.
Greater Affordability of Vehicles:The growth in two-wheeler
sales in India has been driven by an increase in affordability of
these vehicles. An analysis of the price trends indicates that
prices have more or less stagnated in the past. This has been part
of the marketing strategy adopted by the manufacturers to gain
volume, as well as conscious efforts adopted to bring down costs.
The operating expenses of leading manufacturers have declined by
around 15 per cent in the last five years. With greater avenues of
financing, the customers capacity to own a
two wheeler has improved.Rapid Product Introduction and Shorter
Product Life Cycle:The last five years have witnessed a sharp
increase in new product launches in the two-wheeler industry. It is
estimated that close to 50 new products have been launched by
manufacturers during this period, filling up all price points and
targeted at various consumer segments.
Inadequate Public Transport Systems in most Urban Areas:The
economic boom witnessed in the country and the increased migration
to urban areas have increased the traffic congestion in Indian
cities and worsened the existing infrastructure bottlenecks.
Inadequate urban planning has meant that transport systems have not
kept pace with the economic boom and the growing urban population.
This has increased the dependence on personal modes of transport
and the two wheelers market has benefited from this infrastructure
gap.
FACTORS AFFECTING THE MARKET:Post 1991, the Indian two-wheeler
industry comprising of motorcycles, scooters and scooterettes
opened up tremendously. The Indian motorcycle industry has expanded
at a 24% CAGR over the last five years, It Captured almost 80% of
the market primarily at the cost of the scooter and Moped segment.
The scooter segment though has witnessed a revival with the launch
of scooterettes aimed at young women and adolescents.
The two-wheeler market can be segmented into three categories on
the basis of price Entry segment (