Page 1 A MAJOR RESEARCH PROJECT ON A COMPARATIVE STUDY ON BUYING BEHAVIOUR OF COSTOMERS BETWEEN HERO HONDA AND TVS MOTORS A PARTIAL ANALYSIS OF INDORE Submitted to DAVV (Indore) In partial fulfillment of The degree of MASTER OF BUSINESS ADMINISTRATION (2009-11) Guided by Submitted by AMIT VIJAY PATIL VARUN CHANDWANI Asst.Prof. ABHINAV TRIVEDI university –DAVV, Roll no.-09150404
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A
MAJOR RESEARCH PROJECTON
A COMPARATIVE STUDY ON BUYING BEHAVIOUR OF COSTOMERS BETWEEN HERO HONDA
AND TVS MOTORS A PARTIAL ANALYSIS OF INDORE
Submitted to DAVV (Indore)In partial fulfillment of
The degree of
MASTER OF BUSINESS ADMINISTRATION (2009-11)
Guided by Submitted by AMIT VIJAY PATIL VARUN CHANDWANI Asst.Prof. ABHINAV TRIVEDI university –DAVV, Roll no.-09150404
Vindhya Institute of technology & science
Devi AhilyaVishwa Vidyalaya, Indore (M.P.)
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Vindhya Institute of technology & science Devi AhilyaVishwa Vidyalaya, Indore (M.P.)
Certificate
This is to certify that Mr/ VARUN CHANDWANI of MBA 4th Sem in the
academic year (2009-2011) of Vindhya Institute of technology & science DAVV, Indore has completed the project report entitled “…A COMPARATIVE
STUDY ON BUYING BEHAVIOUR OF COSTOMERS BETWEEN HERO HONDA AND TVS MOTORS A PARTIAL ANALYSIS OF INDORE.” towards the
partial fulfillment of degree of Master of Business Administration (Full Time) Under my guidance. He/She has carried out this project with full dedication &
sincerity and this report is a satisfactory account of his/her work
Date: Guide Name
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Vindhya Institute of technology & science__
Devi AhilyaVishwa Vidyalaya, Indore (M.P.)
Declaration
I VARUN CHANDWANI hereby declare that the Major Research Project entitled “…A COMPARATIVE STUDY ON
BUYING BEHAVIOUR OF COSTOMERS BETWEEN HERO HONDA AND TVS MOTORS A PARTIAL ANALYSIS OF INDORE” submitted by me
to Vindhya Institute of ___________ & __________, Indore towards the partial fulfillment of the Degree of Master of Business Administration (full time)
represents my own work except for the guidance and / or suggestion received which has been suitably acknowledged.
Date: (VARUN CHANDWANI)
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Acknowledgment
The feeling of acknowledgement some thing and expressing it in words are two things apart. It
is weakness, but we honestly admit that when we truly wish to express our warm gratitude and
indebtedness towards somebody, we are always at loss of word.
The project could not have been completed without support extended to me by “GUIDE
NAME”. He/She had faith in me and urged me to do things innovatively, which helped me to
successfully complete my project.
I also like to express my gratitude towards “HELPING PERSON/MANAGER OF THEFIRM / COMPANY (A COMPARATIVE STUDY ON
BUYING BEHAVIOUR OF COSTOMERS BETWEEN HERO HONDA AND TVS MOTORS A PARTIAL ANALYSIS )”
to undertake my research from “COMPANY / FIRM”
I would also like to thank “Abhinav Trivedi / Helping”, whose invaluable support was
necessary for me to achieve my objective and finally a word of gratitude to my parents & all my
friends who were always there with their support and encouragement.
(VARUN CHANDWANI)
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INDEX
CHAPTER CONTENTS PAGE NO.
CHAPTER 1
CHAPTER 2
CHAPTER 3
CHAPTER 4
CHAPTER 5
• Title Page.
• Certificate from .
• Acknowledgement.
• Declaration
• Table of Content.
Abstract / Executive Summary
INRODUCTION Conceptual Framework Rationale of Study
Objective of Study
Literature Review.
Methodology The Design.(Hypothesis ) The Sampling. Data Collection Methods.
The Tools
Result Findings and Discussion Summary of Result
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CHAPTER 6
CHAPTER 7
CHAPTER 8
CHAPTER 9
CHAPTER 10
CHAPTER 11
CHAPTER 12
Conclusion and Suggestion Conclusion Suggestion
Future Implications of the Study
Limitation
BIBLIOGRAPHY
WEBLIOGRAPHYREFERENCES
Appendices. (Questionnaire, Sample, Statistical tables, and any other additional relevant material)
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6- EXECUTIVE SUMMARY:-
• The Automobile sector is one of the fastest growing manufacturing sectors in India.
• In the 90s the industry witnessed an average growth rate of above 20 percent.
• Indian Automobile Industry is characterized by a very high percentage (75 per cent) of
two wheeler production, ranking second only to Taiwan.
• The world leaders in the sector are evincing keen interest in establishing manufacturing
facilities for manufacturing and assembling components.
• A politically stable and vibrant State, is centrally located with the support of seaports,
international airports, assured and reliable power supply, abundant water, broad base of
auto component manufacturers, highly trained, skilled and disciplined manpower and is
therefore, the preferred location for Automobile industries.
• The interest of the state has been duly noted by Global Auto Majors, who have indicated
their interest to consider Andhra Pradesh for establishing manufacturing facility.
• The Government is also formulating an Auto Policy, which would give a proper direction
to the growth of the sector.
• There are more than 20 auto –component manufacturing companies in the State,
manufacturing components such as grey-iron castings, precision aluminum castings, leaf
springs, oils and lubricants, diesel fuel injection equipment, electronics and auto
electronics and auto electrical, front axles, gears, forging, machined components, pressed
metal components, pistons, cylinder liners, nozzles, delivery valves, starter motors,
alternators, electronic regulators, high pressure die castings, clutch covers, fuel
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7 - INTRODUCTION :-
INTRODUCTION OF TVS
The TVS Group is one of India's largest industrial conglomerates. TV Sundram Iyengar and Sons
Limited, established in 1911, is the parent and holding company of the TVS Group.
TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the
top ten in the world, with annual turnover of more than USD 1 billion in 2008-2009, and is the
flagship company of the USD 4 billion TVS Group. With a workforce of over 5000, the
company has 4 plants - located at Hosur and Mysore in South India, in Himachal Pradesh, North
India and one at Indonesia. The company has a production capacity of 300 thousand units a year.
TVS and Sons also distribute Heavy Duty Commercial Vehicles, Jeeps and Cars. It represents
premier automotive companies like Ashok Leyland, Mahindra and Mahindra Ltd., Fiat and
Honda. It also distributes automotive spare parts for several leading manufacturers.
TVS & Sons has grown into a leading logistics solution provider and has set up state-of-the-art
warehouses all over the country. It has also diversified into distributing Garage equipment that
ranges from paint booths to engine analyzers and industrial equipment products.
GROUP COMPANIES
With steady growth, expansion and diversification, today TVS commands a strong presence in
various fields-two-wheelers, automotive components, automotive spares, computer peripherals
and finance.
Lakshmi Auto Components Limited - Large OE supplier of two wheeler gears and camshafts.
LUCAS INDIAN Service Limited (www.lucasindia.com) - Company looks after the distribution
of auto electrical components all over India.
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AXLES INDIA LIMITED - A joint venture with Eaton Limited, U.K. Manufactures axle
housings and
COMPANY AT PRESENT & IN FUTURE
Successfully launched the Victor and Fiero-F 2 models after parting ways with Suzuki.
Two wheeler markets show sign of revival after a lackluster first half.
The company is suffering a decline in volumes due to poor response of its two strokes
Max motorcycles.
Recently launched the TVS Centra and 125 cc TVS Victor GLX and four stroke Max in
the pipeline, which would be launched later this year.
Plans major foray into three-wheeler and quadricycles market through fresh
investments of Rs 500 crore.
Actively looking to set up manufacturing unit in Indonesia or Vietnam.
Strong focus on R&D and product development. drive heads for heavy and light
commercial vehicle
APACHE THE SAVIOR
TVS launched Apache RTR 160 cc model in September 2008, with its ultra modern
technology for Indian bikes has proved to be a big success. The success of TVS Apache
is especially significant because it was developed with indigenous technology.
Two stroke Max Range – On the way out
The company is currently looking forward to phase out its two stroke Max range, which
is perceived to be less fuel efficient with a new four stroke range. The changeover is
expected to take place by the end of June 2009.
Two new launches could out TVS on a high growth Trajectory
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TVS Centra a new 100 cc model has recently been launched and the company has set
ambitions targets of achieving monthly sales in the range of 15000-20000 bikes per
month.
Also, a new upgraded 125 cc TVS Victor has been launched which will improve the
trajectory of the company.
Three wheeler project- entering a new market
TVS Motor has set the stage for entry into the three-wheeler markets with the setting up
of a new plant at Nanjangud, near Mysore in Karnataka. We understand that the
company would be targeting the sub-one ton passenger and goods carriers segment of
the market.
With an investment of about Rs 50 crore in phase-1, it will cater to both passenger and
cargo segments. The total investments for the three wheeler and four-wheeler
quardricycle project are expected to be in the range of Rs 500 crore in the next two-
three years. It plans to go with petrol version of three wheelers and expects higher
demand to come from B class towns. The company expects higher margin and low
competition in three-wheeler business as compared to its two-wheeler business. Three
wheeler sales have grown at a CAGR of 7% over the last 9 years to 2.26 lakh units FY
03, and are expected to grow at the same rate for the next five years. TVS is expected to
roll out its first three-wheeler by the end of FY05 to garner a 30% market share with
around 100,000 unit sales by the end of FY08.
TVS MOTOR COMPANY
TVS Motor Company Limited, part of the TVS Group, is one of India's leading two-
wheeler manufacturers. With a turnover of over Rs.2700 crores, the Company
manufactures a wide range of motorcycles, scooters, mopeds and scooterettes. Little
wonder, it boasts of more than 7 million happy customers.
The chapter called two wheelers in India begins…..
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The year was 1980. And it is a year to remember for the Indian two-wheeler industry.
For it was this year that saw India's first two-seater moped, TVS 50, rolling out on the
Indian roads. For some it was freedom to move. For some, shorter distances to span.
For the Indian Automobile sector, a breakthrough to be etched in history.
With the joint venture with Suzuki Motor Corporation in 1983, TVS-Suzuki became the
first Indian company to introduce 100 cc Indo-Japanese motorcycles in September
1984. Through an amicable agreement the two companies parted ways in September
2001.
Unmatched Performance
Today TVS Motor Company has the largest market share in the moped category with a
whopping 65.3% and is also the undisputed leader in the scooterette segment with
34.3% share. It also holds 18.3% market share in motorcycles. Graph
Wide Network
With a strong sales and service network of 500 Authorized Dealerships, 1018
Authorized Service Centres and over 864 Certified Service Points, TVS is growing
from strength to strength.
World Class Facilities
The company manufactures its motorcycles, scooterettes and mopeds at its state-of-the-
art factories in Mysore and Hosur.
Product Range
TVS offers a wide range of two-wheelers
- Motorcycles - TVS Centra / TVS Victor / TVS Fiero F2/ TVS Max 100/ TVS Max
100 R
- Scooterettes - TVS Scooty Pep/ TVS Scooty 2S
- Mopeds - TVS XL Super/ TVS XL Super HD
VISION
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TVS Motor - Driven by the customer
TVS Motor will be responsive to customer requirements consonant with its core
competence and profitability. TVS Motor will provide total customer satisfaction by
giving the customer the right product, at the right price, at the right time.
TVS Motor - The Industry Leader
TVS Motor will be one among the top two two-wheeler manufacturers in India and one
among the top five two-wheeler manufacturers in Asia.
TVS Motor - Global overview
TVS Motor will have profitable operations overseas especially in Asian markets,
capitalizing on the expertise developed in the areas of manufacturing, technology and
marketing. The thrust will be to achieve a significant share for international business in
the total turnover.
TVS Motor - At the cutting edge
TVS Motor will hone and sustain its cutting edge of technology by constant
benchmarking against international leaders.
TVS Motor - Committed to Total Quality
TVS Motor is committed to achieving a self-reviewing organization in perpetuity by
adopting TQM as a way of life. TVS Motor believes in the importance of the process.
People and projects will be evaluated both by their end results and the process adopted.
TVS Motor - The Human Factor
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TVS Motor believes that people make an organization and that its well-being is
dependent on the commitment and growth of its people. There will be a sustained effort
through systematic training and planning career growth to develop employees' talents
and enhance job satisfaction. TVS Motor will create an enabling ambience where the
maximum self-actualization of every employee is achieved. TVS Motor will support
and encourage the process of self-renewal in all its employees and nurture their sense of
self worth.
TVS Motor - Responsible Corporate Citizen
TVS Motor firmly believes in the integration of Safety, Health and Environmental
aspects with all business activities and ensures protection of employees and
environment including development of surrounding communities. TVS Motor strives
for long-term relationships of mutual trust and inter- dependence with its customers,
employees, dealers and suppliers.
MILESTONES
Launched Centra in January 2004, a TECHNOLOGY Uncompromising Quality,
TECHNOLOGY
TVS Motor Company's R&D division has an imposing pool of talent and one of the
most contemporary labs, capable of developing innovative designs.
Committed to achieving total customer satisfaction through Total Quality Control
(TQC), the Company continuously strives to give the customer, the best value for
money.
ECO-FRIENDLY
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TVS is committed to protecting the environment. The company's manufacturing
facilities at Mysore & Hosur have state-of-the-art facilities & air pollution control
measures. Even the suppliers are encouraged to ensure that their products meet eco-
friendly norms.
ALWAYS FIRST
- Launched TVS 50, India's first 2-seater, 50cc moped in Aug 1980.
- First Indian Company to introduce 100cc Indo-Japanese motorcycles in Sept 1984.
Launched India's first indigenous Scooterette, TVS Scooty in June 1994.
- Introduced India's first catalytic converter enabled motorcycle, the 110cc Shogun in
Dec 1996.
- Launched India's first 5-speed motorcycle, the Shaolin in Oct 1997.
- Launched India's first high performance moped - the XL Super, with a 70 cc engine in
Nov 1997.
- Launched Victor in August 2001, a world-class 4-stroke 110 cc motorcycle.
World-class 4-stroke 100 cc motorcycle with VT-i Engines for best-in-class mileage.
AWARDS Deming Award
TVS Motor is the third Indian company to win the Deming Prize. Only two other TVS
companies have managed this before.
It's been a long time since the Union of Japanese Scientists and Engineers instituted the
Deming Prize. But very, very few organizations outside Japan have had the honor of
receiving it. In fact, the TVS Motor Company is the world's first motorcycle
company to be awarded the prize.
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As for the TVS Group, it's a third. Sundaram -Clayton Ltd. (Brakes Division) and
Sundaram Brake Linings Ltd. have already won it. The Deming Prize is the ultimate
confirmation of our commitment to quality control. A confirmation known to every
TVS rider across the country.
PRODUCT PROFILE
TVS APACHE (RTR)
The recently launched TVS Apache RTR FI 160 has added an another stunner on the roads.
Stylish alloys, unique grab rails, classy silencer, larger & sharp lined fuel tank, all these
elements combine perfectly to give TVS Apache RTR 160 a sporty eye-catching looks.
The Apache RTR 160 has been upgraded with electronic fuel injection (EFI) and becomes
Apache RTR 160 Fi. The EFI technology has enabled TVS to boost peak power of this
bike. TVS has priced the new model at Rs. 65000.
TVS SCOOTY PEP – First Love
A sleek duo-tone body. Body colored coordinated mirrors. A smiley headlamp. Winky
indicators. Looks even better with you on it.
POWER
75cc 4stroke engine to pep up your ride. A bigger, more comfortable seat for two and
strong hydraulic shock absorbers for a smoother ride.
TECHNOLOGY
A unique power/economy mode for extra mileage. An auto reserve fuel tap. No more
turning knob from main to reserve. Auto chokes for instant starts. Every time.
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SAFETY
Puncture Resistant Tvs that come with a special sealant inside, minimizing chances of a
flat. A side stand alarm that beeps if you forget to take off the stand. Multi focal reflector
headlamp and side reflectors for enhanced visibility. Now all you need is an equally funky
helmet and you” re all set to pep.
INTRODUCTION OF THE PROJECT
Someone has rightly said that practical knowledge is far better than classroom teaching.
During this project I fully realized this and I came to know about how a consumer chooses
among a varied range of products available to him.
The subject of my study is market survey of customer buying behavior in bikes taking TVS
for comparison, which has slowly but steadily evolved, from a beginner to a corporate giant
earning laurels and kudos throughout.
The report contains first of all brief introduction about the company. Finally there comes
data presentation and analysis in the end of my report. I also put forward some of my
suggestion hoping that they help TVS Motor Company move a step forward to being the
very best.
SCOPE OF THE STUDY
The scope of the study is to study the customer buying behavior of the respondents in New
Delhi and attain the awareness level of the customers. The scope is that the services of the
dealer, advertising media as well as celebrity has made an effect on the customer or not and
how much.
This study also allows knowing the future prospects of the company and where it is at
present in the market
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TVS MOTOR REVENUES GROW AT 23.2% IN Q2 EXPORTS UP
52%
Bangalore, October 30, 2008: TVS Motor Company today reported a 23.2 % increase in
revenues, registering Rs. 1034 crores for the quarter ended September 2008 of the financial
year 2008-09, when compared to Rs. 839 crores in the corresponding quarter of the
previous year. Despite the challenging environment caused by increasing input material
costs, general inflationary trends and lack of availability of retail finance, the company has
posted Profit before Tax of Rs. 13.9 crores and Profit after Tax of Rs. 10.4 crores when
compared to Rs. 16.9 crores and Rs. 11.9 crores in the corresponding period of the previous
year. The last year's September Quarter had the benefit of Rs. 10.2 crore (net) on account of
exceptional items. Profit before exceptional items for the quarter is higher at Rs. 13.9 crore
in comparison with Rs. 6.7 crores of the corresponding quarter of last year.
The company has recorded growth in sales despite adverse retail financing. Motorcycles
witnessed higher sales at 1.81 lakh during the quarter compared to 1.44 lakh units over the
previous period. Scooters clocked sales of 0.77 lakh in comparison to 0.76 lakh units
during the corresponding quarter of the previous year.
During the quarter, the company crossed yet another milestone when it reached two million
units of TVS Scooty in July 2008. Indian Tennis star, Sania Mirza became the new Brand
Ambassador for the Scooty brand. The company chose to associate with Sania as brand
ambassador since she emanates the brand qualities of independence, progress and
accomplishment.
During the quarter, the company further broadened the horizons of its TVS Scooty brand
with the launch of Balancing Wheels
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SUB DIVISION OF SHARES
In order to improve the shareholder value and to facilitate greater liquidity in its equity
shares, TVS Motor Company recently subdivided the face value of its shares to Re. 1/-
each. Earlier the face value of the shares was Rs. 10/-
MERGER OF LAKSHMI AUTO COMPONENTS WITH TVS MOTOR
COMPANY
The Shareholders of TVS Motor Company and Lakshmi Auto Components (LAC) have on
19th January 2004 approved the merger of Engine Division of LAC with TVS Motor
Company and transfer of Rubber and Plastics division of LAC to Sundaram Auto
Components Limited, a wholly owned subsidiary of TVS Motor Company. The company
expects to obtain the approval of High Court of Tamil Nadu and complete other statutory
formalities in the next few months. This merger is expected to improve the overall
profitability of TV
INTRODUCTION & HISTORY OF HERO HONDA
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, Tvs 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,
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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 Tvs. The
CEO of Tvs commented that he did not need a marketing department, only a dispatch
department. By the year 1990, Tvs 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 four-
stroke 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, Tvs 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.
BOARD OF DIRECTORS
No. Name of the DirectorsDesignation
Mr. Brijmohan Lall Munjal Chairman & Whole-time Director
Mr. Pawan Munjal Managing Director
Mr. Toshiaki Nakagawa Jt. Managing Director
Mr. Takao Eguchi Whole-time Director
Mr. Satyanand Munjal Non-executive Director
Mr. Om Prakash Munjal Non-executive Directo
Mr. Tatsuhiro OyamaNon-executive Director
Mr. Masahiro TakedagawaNon-executive Director
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Mr. Narinder Nath Vohra Non-executive & Independent Director
Mr. Pradeep Dinodia Non-executive & Independent Director
Gen.(Retd.) Ved Prakash Malik Non-executive & Independent Director
Mr. Analjit Singh Non-executive & Independent Director
Dr. Pritam Singh Non-executive & Independent Director
Ms. Shobhana Bhartia Non-executive & Independent Director
Dr. Vijay Laxman Kelkar Non-executive & Independent Director
HERO HONDA MOTORCYCLE LTD.
Type Public company BSE:HEROHONDA MFounded January 19, 1984 in Gurgaon, Haryana, IndiaHeadquarters
Haryana, India
Key people
Om Prakash Munjal, FounderMr. Brijmohan Lall Munjal, Chairman
from table value on 10% significant & 6 DFchi-square value 10.645
conclusion :- calculated value is greater than table value so, null hypothesis is rejected, meansBrand preference across all income categories is not equal
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Hero honda
tvs
Any other
ANALYSIS AND INTERPRETATION:-
Q1) Which bike do you have?
Hero Honda 47Tvs 38Any other 15
Analysis : Hero Honda market share is more than 45 % and so we can say that hreo Honda dominate the whole market
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0
2
4
6
8
10
12
14
1
Model Name
N o
of
P er s o n s
Tvs
apache
Star cityr
Tvs scootyr
Any other
Q2) Which Model do you Have?
Hero Honda TvsSplender 21 apache 7Passion 13 Star city 12Karizma 7 Tvs scooty 11
Any other 6 Any other 8
0
5
10
15
20
25
1
Model Name
No
of
Per
son
s Hero Honda
Splender
Passion
Karizma
Any other
Analysis : In hero honda Customer prefer splender and tvs customer prefer apache.
Analsis in hero Honda people more think about the milage and look and shape and in tvs people more concern about pick up
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0
5
10
15
20
25
Yes No Cant say
Views
Hero Honda
Tvs
N o
of
P er s o n s
Q11) If new Bike with good features comes in, then would you like to change your bike?
Hero Honda Tvs
Yes 19 21No 17 14Cant say 11 3
Analysis -In hero Honda and tvs both many people think about to change our brand if new feature are come
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9-RESULT:-
To know about the customer preference and decision process with regard to 150cc bike.
To know the Basic consumer buying behaviour and the reasons because of which they
switch from one company to another.
To know about the company’s details (profile, Products)
This study would help in revealing the type and specific qualities of the bikes offered by
the company to their consumers.
To study the satisfaction level of consumers who uses bikes.
To study the factors influencing consumers to buy 150cc bikes.
To study effect of advertisement on the purchasing decision of the consumers
Most of the Flame, Apache, Pulsar, CBZ & Karizma are purchased by young generation
18 to 30 years because they prefer stylish looks and rest of the models of Hero Honda,
TVS and Bajaj are purchased more by daily users who needs more average of bikes than
looks.
. Hero Honda is considered to be most fuel-efficient bike on Indian roads.
Service & Spare parts are available throughout India in local markets also.
While buying a motorcycle, economy is the main consideration in form of maintenance
cost, fuel efficiency.
Majority of the respondent had bought their motorcycle more than 3 years
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It has been seen that In Hero Honda bikes the mileage of the bike and the value that it
adds to the status symbol of the customers influences the decision criteria of most of the
customers. In While in case of TVS bike the economic price of the bikes influences the
buying behavior of the customers.
It is observed that in rating of different features of different bikes people give maximum rating
to the look and shape of the bike. At the second level they givetheir rating to the pick up. At the
third level they rate mileage. And at the fourth level they give points to maintenance. At last they
rate price and brand image.
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Findings :-
• During this research project I came in to contact with many customers who are
having bikes. It has been found that in Hero Honda mostly the customers are
having splendor while the ratio of the customers using Passion, Karizma and
other bikes are comparatively low. In the customers are giving more preference
to Discover and Pulsar models and in case of TVS Bikes the customers are
givig more preference to the other models rather than Flame,Starcityand
Apache. The maximum numbers of customers that are using these bikes fall in
the income group of 200000-300000.
• It has been observed that the customers are using their bikes mostly for official
and personal purpose. It is observed that the awareness of Hero Honda bikes
mostly comes TVS the awareness comes from newspapers and televisions. Out
of the sample size of 90 customers, 65 customers agree with the fact that
advertisements play a very significant role in influencing their behavior to
choose the bike. On the other hand 15 customers do not agree to this fact.
While remaining 10 customers are not sure about it.
• When the customers are asked that are they satisfied with the performance of
their bikes then most of them agrees to the fact. Out of the sample size of 90
customers, 55 customers says that they are satisfied with the performance of
their bikes. On the other hand 28 customers are not satisfied with the
performance of the bikes that they are having. having full knowledge of the
bike before purchasing
• It has been seen that In Hero Honda bikes the mileage of the bike and the value
that it adds to the status symbol of the customers influences the decision
criteria of most of the customers. In While in case of TVS bike the economic
price of the bikes influences the buying behavior of the customers.
• It is observed that in rating of different features of different bikes people give
maximum rating to the look and shape of the bike. At the second level they
givetheir rating to the pick up. At the third level they rate mileage. And at the
fourth level they give points to maintenance. At last they rate price and brand
image.
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.SUMMARY:-
Ever since man evolved into social animal he felt the need for “Transportation”. As he formed
a civilization he felt the need for “Better Transportation”. Today on the threshold of exploring
the universe he feels the need of “Best Transportation”.
Truly the modern world relies on transportation which can be airways, roadways, railways and
on water. Bicycle was the most important part of road transportation in early days and as the
scenario changed bicycle was transformed into a fast, stylish and trendy mode of transport
known as Motorcycle nowadays known as Motorbike.
Each human being that is living in this social world knows the importance of bikes because it
serves the purpose in any kind of situation and in any part of this world.
The topic of the project is Customer Buying Behavior taking TVS for comparison. TVS
motor company is one of the leading bike manufacturers in India. The analysis of the project was
based on customer’s point of view. For the study, both primary data and secondary data were
required. The primary data was collected
based on a survey research, using a structured questionnaire with both open ended and closed-
ended questions.
The sampling procedure used was random sampling for the 1st objective i.e. to understand
consumer needs on motorbikes. For the 2nd objective i.e. to understand the awareness levels of
TVS I went to the prospects and met the respondents to fill the questionnaire. The mode of
survey was of personal interview, where the respondents filled up the questionnaires. The
secondary data was collected from business newspapers, magazines,
Company brochures, journals and the Internet. The major conclusion from this study was that
TVS has to improve itself to gain the 1st position in the market as it is doing well to maintain its
3rd position in the market.
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In terms of competition TVS has neck-to-neck competition with Hero Honda and Bajaj. TVS has
a lot of work to do if it has to take lead and remain the leading manufacturer in India.
10- CONCLUSION AND SUGGESTION:-
The Indian two wheeler industry today offers more than 70 models to a buyer. And
manufacturers are launching new models every day…… More than 20 models were launched in
the last year.
Top this up with a variety of promises ranging from free gifts and financial schemes to the
attractive looking models and jingles in the advertisement.
In this whirlwind of speed and confusion maze, choosing the right pair of wheels can be a trying
experience for the common man.
In such a situation, the buyer has to first narrow down his search to a given category of two
wheeler. A lady doctor may decide to look only at gearless scooters while a collegian with a rich
father may only look at premium bikes.
CONCLUSION:-
Most of the Pulsar, CBZ & Karizma are purchased by young
generation 18 to 30 because they prefer stylish looks and rest of the
models of Hero Honda are purchased more by daily users who
needs more average of bikes than looks.
Hero Honda is considered to be most fuel-efficient bike on Indian
roads.
Service & Spare parts are available throughout India in local
markets also.
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While buying a motorcycle, economy is the main consideration in
form of maintenance cost, fuel efficiency.
The facts and figures shown in the analysis is correct and the survey has been done in a
good faith and responsibility
As HERO HONDA, BAJAJ and YAMAHA have taken the 1st, 2nd and 3rd position. Thus
TVS motor co. has to make some more efforts to increase the awareness among the
people in the context of bikes.
The respondents have been asked about the most effective slogan in different brands of
bikes in which again HONDA and BAJAJ have taken the lead. TVS motor co. has
emphasized only on VICTOR and not on other bikes, thus people only know about
VICTOR and not other bikes. Print media and different types of media should be used to
make people know about the slogan.
The respondents in the factors, which they consider while purchasing a bike, have done
the ranking. MILEAGE is the first factor following with POWER and STYLE and also
with an adaptable PRICE. The company has to make efforts for making a product that
should have all these three factors with considerable price.
The most influencing factor in purchasing decision of the bike is FAMILY and after that
FRIENDS which is not at all linked with
the company investment. The company generally invests in Dealer promotion and Media,
which is not appropriate as analyzed in this question. Awareness level through Media and dealer
should be increased.
When asked about the experience at the TVS dealership most of the respondents had a
good and average experience with a small number having bad experience. The small
number of bad experience can be avoided by giving warm welcome and good behavior
by the staff.
The respondents who have not visited the TVS dealership are either not interested in TVS
bikes or they are not satisfied with TVS products. In this matter the dealer should
increase the road shows as well as arrange regular customers meeting which will create
interests in other prospects.
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Most of the respondents had knowledge about the TVS bikes, which is a good sign for
the TVS motor company.
In TVS motor company VICTOR is the most popular bike and very interestingly without
any media interaction FIERO F2 has taken the 2nd spot with CENTRA on the 3rd spot
which has taken a lead with only one place from MAX-R .It is recommended that FIERO
F2 should be given equal sales promotion than CENTRA because of its popularity has
come through people network and not through channel media.
The respondents have liked the service facility and the staff but the important factor is the
lack of space. The dealership in Bhilai has to improve the staff as well as the after sales
services and the customer relations.
Celebrity endorsement does not affect most of the respondents whereas only 34% of the
respondents have an affect over the purchasing decision of bike. Company should give
more importance to the product so as to give the best in quality to the customer.
In context to popularity TVS ranks 3rd according to this sample size and thus the
company should introduce new products as well as reposition its product according to the
demand in the market.
In the case of no price consideration TVS ranks 4 th and according to survey analysis the
respondent wants to purchase his dream bike which TVS Company has to make in
comparison with HERO HONDA, BAJAJ and ENFIELD BULLET.
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SUGGESTION:-
Tvs should introduce some more models having more engine power.
Hero Honda should think about fuel efficiency in case of upper segment bikes.
More service centers should be opened.
Maintenance cost and the availability of the spare parts should also be given due
importance.
They also introduce some good finance/discount schemes for students.
The price should be economic.
In the analysis the respondents have shown that they consider TVS motor company after
HERO HONDA and BAJAJ and this is a major concern for the company. TVS motor
company has to make some arrangements to increase the awareness level among the
prospects through media.
The company should also emphasize on other bikes excluding TVS VICTOR and TVS
CENTRA because some of the bikes in TVS like Apache RTR are more popular than
these bikes in the surveyed area.
In Bhilai the respondents who have visited the dealership are not satisfied with the
service facilities which can be improved by regular visit of the service managers as well
as providing regular training to the staff as well as the owner.
The dealership in Bhilai also lacks in space, which is a major concern because the first
impression on the mind of the customer is about the window display, which can be
improved with the help of the professionals.
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11 - FUTURE IMPLICATIONS OF THE STUDY :-
The global financial crisis, the consequent serious liquidity issues and higher financing costs are
likely to impact the growth prospects of the two-wheeler industry. Retail finance has become
even more difficult. The tight liquidity will affect the ability of dealers to stock two-wheelers.
The drop in the commodity prices, however, is a welcome break.
The company will continue the vigorous implementation of its improved value-engineering
program to reduce costs. The company continues to maintain the highest quality standards of all
its products.
SCOPE OF THE STUDY
The scope of the study is to study the customer buying behavior of the respondents in New Delhi
and attain the awareness level of the customers. The scope is that the services of the dealer,
advertising media as well as celebrity has made an effect on the customer or not and how much.
This study also allows knowing the future prospects of the company and where it is at present in
the market.
Although the avalanche of motorcycles offered Indian consumers a wide variety of models to
choose from, it also resulted in increased pressure on the companies to concentrate on cost-cuts,
technology enhancements and up-gradations and styling. Their margins came under pressure as
marketing costs escalated.
The companies were forced to reduce prices and offer discounts to survive the competition.
Moreover, analysts were skeptical about the segment's ability to maintain the growth rate in the
years to come. One of the major assumptions underlying the motorcycles rush was that if the
market was considerably large and was growing at a constant pace, there was room for a
profitable existence for all brands.
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In 2001, there were over 30 motorcycle brands in the market. However, with the top five brands
accounting for more than 60% of the market, only 40% of the market was available for all other
new brands put together. Despite the launch of more vehicles, the survival prospects of many of
the individual brands were deemed to be rather bleak.
Further, the growth in the motorcycle segment was dependant on continuing favorable market
conditions. Analysts claimed that to sustain this growth rate, the segment would have to
completely cannibalize the market for scooters and a considerable part of the market for scooters
and mopeds.
Considering the fast growing scooter segment, with high demand from female customers,
followed by the moderately growing moped segment and the restructuring in the scooter segment
with major national and foreign players reinforcing their presence, it was unlikely that the entire
growth in the two-wheeler sector would be due to motorcycles.
Analysts also commented that as the two-wheeler industry had grown steadily for eight years,
stages in the product life cycle would apply to the field sooner, rather than later and the decline
stage would invariably come some day. There was little differentiation between the brands being
launched apart from styling as most companies had introduced their four-stroke vehicles.
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12 - LIMITATION OF THE STUDY: –
• This report incorporates sincere efforts to submit the best possible dossier on the topic
assigned because no study can be perfect. There are bound to be limitations that I faced
and within which I had to work.
• The data used in most part of the report is secondary data, it has inherent discrepancy.
• As TVS is still not a household brand name, some of the respondents were not
completely aware of its products and track record
• Research work was carried out in one Distt of indore only the finding may not be applicable to the other parts of the country because of social and cultural differences.
• The sample was collected using connivance-sampling techniques. As such result may not give an exact representation of the population.
• Shortage of time is also reason for incomprehensiveness.
• The views of the people are biased therefore it doesn’t reflect true picture.
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13- BIBLOGRAPHY :–
BOOKS:
Name of the book :- Marketing researchAuthor : - Dr. C.B.Mamoria
Name of the book :- Marketing researchAuthor : - Mr. Kothari.
MAGAZINES, JOURNALS AND NEWSPAPERS:
Journals published by Hero Honda, Annual Report Journals published by TVs Anural Report